Title 101 | Chapter 006 | Regulation 020
101 KAR 6:020.Kentucky Employees Charitable Campaign.
Section 1.
Definitions.(1)
"Charitable federation" means a legally constituted grouping, made up of or supporting at least ten (10) health and human welfare organizations, all of which:(a)
Qualify as exempt voluntary charitable organizations pursuant to 26 U.S.C. 501(c)(3); and(b)
Have a substantial Kentucky presence.(2)
"Child Victims' Trust Fund" means the fund established by KRS 41.400 and administered in accordance with KRS 15.935 by the State Child Abuse and Neglect Prevention Board established by KRS 15.905.(3)
"Designated nonprofit agency" means an organization with proof of tax-exempt status pursuant to 26 U.S.C. 501(c)(3) written in on a pledge card by a state employee as a choice to receive contributions.(4)
"State employee" means a person, including an elected public official, who is employed by a department, board, agency, or branch of state government, except one (1) relating to a state college or university.(5)
"Substantial Kentucky presence" means a facility, staffed by professionals or volunteers, available to provide its services and open at least fifteen (15) hours a week and with a regional or statewide presence that meets the requirements of Section 2(2) of this administrative regulation.Section 2.
Requirements for the Kentucky Employees Charitable Campaign.(1)
General Purpose. The purpose of the Kentucky Employees Charitable Campaign shall be to:(a)
Provide an opportunity for employees to contribute to eligible Kentucky organizations through the state's payroll deduction process;(b)
Ensure accountability for participants in regard to the funds raised;(c)
Encourage the involvement of state employees as responsible citizens;(d)
Give recognition to state employee volunteers; and(e)
Minimize workplace disruption and administrative costs to Kentucky taxpayers by allowing only one (1) statewide payroll deduction charitable solicitation per year.(2)
An organization shall be considered to have a substantial Kentucky presence if the requirements established in this subsection are met.(a)
Services shall be available to state employees in the local community.(b)
Services shall directly benefit human beings whether children, youth, adults, the aged, the ill and infirm, or the mentally or physically disabled.(c)
Services shall consist of:1.
Care, research, education, or prevention in the fields of human health or social adjustment and rehabilitation;2.
Relief for victims of natural disasters and other emergencies; or3.
Assistance to those who are impoverished and in need of food, shelter, clothing, and basic human welfare services.(3)
The secretary shall approve a charitable organization for participation in the campaign if the charitable organization demonstrates:(a)
Proof of tax exempt status pursuant to 26 U.S.C. 501(c)(3);(b)
Proof of current registration and compliance with the reporting requirements of the Secretary of State and the Office of the Attorney General;(c)
Proof of financial responsibility, including:1.
Adoption of a detailed annual budget;2.
Use of generally accepted accounting principles and procedures;3.
The board of directors' approval for deviations from the approved budget; and4.
An annual financial audit;(d)
Proof of direction by an active volunteer board of directors, which shall meet regularly and whose members shall serve without compensation;(e)
A written nondiscrimination policy;(f)
Public disclosure of fundraising administrative costs with a statement demonstrating that, if fund and administrative expenses are in excess of twenty-five (25) percent of total support and revenue, actual expenses for those purposes are reasonable under all the circumstances in its case; and(g)
Publication of an annual report available to the general public, which includes a full description of the organization's Kentucky activities including fundraising activities.(4)
Nothing in subsections (2) or (3) of this section shall prevent the Child Victims' Trust Fund from being eligible to participate in the Kentucky Employees Charitable Campaign as a charitable organization.(5)
A charitable federation may apply on behalf of all their member organizations if both the federation and all federation members meet the criteria established in subsection (3) of this section.(6)
Authority of the Secretary of Personnel.(a)
The Secretary of Personnel shall have the full authority over the procedures and policies relating to the operation of the Kentucky Employees Charitable Campaign.(b)
The secretary shall designate a group of state employees to compose the Kentucky Employees Charitable Campaign Committee to make recommendations on related matters.(c)
The committee shall be composed of a cross-section of state employees, involving the large cabinets and small agencies.(d)
The chair of the committee shall be appointed by the secretary.(7)
Functions of the committee. The committee shall make recommendations on:(a)
The designation of a campaign administrator who shall:1.
Serve for a minimum period of two (2) years; and2.
Be charged to manage and administer the charitable fund campaign for the Commonwealth, subject to the direction and control of the Secretary of Personnel. The campaign administrator shall have statewide workplace campaign experience and have the necessary staff and volunteer support to administer the Kentucky Employees Charitable Campaign;(b)
The establishment of the minimum amount, based on cost effectiveness, that an employee may authorize to be deducted for each approved charitable federation;(c)
The format of the brochure, pledge card, or other promotional materials for the annual campaign;(d)
The dates and duration of the campaign;(e)
The annual campaign budget submitted by the campaign administrator; and(f)
The costs of the campaign, which shall be:1.
Detailed in the budget; and2.
Borne by each recipient organization proportionally.(8)
Charitable federations to apply for statewide campaign.(a)
A federation desiring inclusion shall apply by February 15 of each year.(b)
A federation that has previously participated in the campaign shall update its application with a letter and a copy of the most recent year's audit.(c)
A charitable organization that has previously participated in the campaign shall be eligible if it fulfills all conditions of eligibility.(9)
The campaign administrator. The campaign administrator shall:(a)
Provide staffing to manage and administer the annual campaign, which includes preparing drafts of campaign materials for consideration by the Secretary of Personnel;(b)
Serve as the central accounting point for both campaign cash and for payroll deductions received from the Personnel Cabinet including:1.
The preparation and submission of an annual campaign budget. Costs of the campaign shall be divided among recipient organizations; and2.
A separate account maintained for managing the income and expenses of the campaign;(c)
Distribute campaign funds received from the Personnel Cabinet to participating organizations in accordance with agreed upon time periods. This shall include distribution of funds to designated nonprofit agencies;(d)
Provide an end-of-campaign report to the Secretary of Personnel and to participating organizations; and(e)
Annually furnish a financial statement prepared by a certified public accountant.HISTORY: (48 Ky.R. 2878; eff. 9-27-2022.)
GERINA D. WHETHERS, Secretary
APPROVED BY AGENCY: April 11, 2022
FILED WITH LRC: April 15, 2022 at 9:25 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on June 21, 2022 at 10:00 a.m. at 501 High Street, 3rd floor, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until 11:59 p.m. on June 30, 2022. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Rosemary Holbrook, Assistant General Counsel, Office of Legal Services, 501 High Street, 3rd floor, Frankfort, Kentucky 40601, phone (502) 564-7430, fax (502) 564-0224, email RosemaryG.Holbrook@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Rosemary Holbrook
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation sets forth the procedures and requirements governing the Kentucky Employees Charitable Campaign.
(b) The necessity of this administrative regulation:
This administrative regulation is necessary to set forth the procedures and requirements governing the Kentucky Employees Charitable Campaign.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
Pursuant to 18A.030(2), the Personnel Cabinet Secretary is required to promulgate comprehensive regulations consistent with the provisions for KRS Chapter 18A. KRS 18A.110 provides that the secretary shall promulgate comprehensive administrative regulations for the classified and unclassified service. 2022 Ky. Acts ch. 75, sec. 21 requires the Personnel Cabinet to promulgate administrative regulations for inclusion of the Child Victims’ Trust Fund as an eligible charitable organization.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation provides the opportunity for employees to contribute to eligible Kentucky organizations through the state's payroll deduction process, while minimizing workplace disruption and administrative costs to Kentucky taxpayers by allowing only one (1) statewide payroll deduction charitable solicitation per year.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This is a new administrative regulation.
(b) The necessity of the amendment to this administrative regulation:
This is a new administrative regulation.
(c) How the amendment conforms to the content of the authorizing statutes:
This is a new administrative regulation.
(d) How the amendment will assist in the effective administration of the statutes:
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
All state agencies and employees who participate in the Kentucky Employees Charitable Campaign are affected by this regulation, as are charitable organizations that participate or seek to participate.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
No additional action is required.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
There are no additional costs anticipated to any entity identified above.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
No additional benefits will accrue.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
This regulation is not anticipated to generate any new or additional costs.
(b) On a continuing basis:
This regulation is not anticipated to generate any new or additional costs.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
This regulation is not anticipated to generate any new or additional costs.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
This regulation is not anticipated to generate any new or additional fees or funding.
(8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees:
This regulation is not anticipated to generate any new or additional fees.
(9) TIERING: Is tiering applied?
No. This regulation treats all impacted entities the same.
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
(1) What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
All state agencies that participate the Kentucky Employees Charitable Campaign are impacted.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 18A.030(2), 18A.110, and 2022 Ky. Acts ch. 75, sec. 21.
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
No revenue will be generated.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
No revenue will be generated.
(c) How much will it cost to administer this program for the first year?
There are no estimated additional costs to administer the amendments to this regulation.
(d) How much will it cost to administer this program for subsequent years?
There are no estimated additional costs to administer the amendments to this regulation.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Expenditures (+/-):
Other Explanation:
101 KAR 6:020.Kentucky Employees Charitable Campaign.
Section 1.
Definitions.(1)
"Charitable federation" means a legally constituted grouping, made up of or supporting at least ten (10) health and human welfare organizations, all of which:(a)
Qualify as exempt voluntary charitable organizations pursuant to 26 U.S.C. 501(c)(3); and(b)
Have a substantial Kentucky presence.(2)
"Child Victims' Trust Fund" means the fund established by KRS 41.400 and administered in accordance with KRS 15.935 by the State Child Abuse and Neglect Prevention Board established by KRS 15.905.(3)
"Designated nonprofit agency" means an organization with proof of tax-exempt status pursuant to 26 U.S.C. 501(c)(3) written in on a pledge card by a state employee as a choice to receive contributions.(4)
"State employee" means a person, including an elected public official, who is employed by a department, board, agency, or branch of state government, except one (1) relating to a state college or university.(5)
"Substantial Kentucky presence" means a facility, staffed by professionals or volunteers, available to provide its services and open at least fifteen (15) hours a week and with a regional or statewide presence that meets the requirements of Section 2(2) of this administrative regulation.Section 2.
Requirements for the Kentucky Employees Charitable Campaign.(1)
General Purpose. The purpose of the Kentucky Employees Charitable Campaign shall be to:(a)
Provide an opportunity for employees to contribute to eligible Kentucky organizations through the state's payroll deduction process;(b)
Ensure accountability for participants in regard to the funds raised;(c)
Encourage the involvement of state employees as responsible citizens;(d)
Give recognition to state employee volunteers; and(e)
Minimize workplace disruption and administrative costs to Kentucky taxpayers by allowing only one (1) statewide payroll deduction charitable solicitation per year.(2)
An organization shall be considered to have a substantial Kentucky presence if the requirements established in this subsection are met.(a)
Services shall be available to state employees in the local community.(b)
Services shall directly benefit human beings whether children, youth, adults, the aged, the ill and infirm, or the mentally or physically disabled.(c)
Services shall consist of:1.
Care, research, education, or prevention in the fields of human health or social adjustment and rehabilitation;2.
Relief for victims of natural disasters and other emergencies; or3.
Assistance to those who are impoverished and in need of food, shelter, clothing, and basic human welfare services.(3)
The secretary shall approve a charitable organization for participation in the campaign if the charitable organization demonstrates:(a)
Proof of tax exempt status pursuant to 26 U.S.C. 501(c)(3);(b)
Proof of current registration and compliance with the reporting requirements of the Secretary of State and the Office of the Attorney General;(c)
Proof of financial responsibility, including:1.
Adoption of a detailed annual budget;2.
Use of generally accepted accounting principles and procedures;3.
The board of directors' approval for deviations from the approved budget; and4.
An annual financial audit;(d)
Proof of direction by an active volunteer board of directors, which shall meet regularly and whose members shall serve without compensation;(e)
A written nondiscrimination policy;(f)
Public disclosure of fundraising administrative costs with a statement demonstrating that, if fund and administrative expenses are in excess of twenty-five (25) percent of total support and revenue, actual expenses for those purposes are reasonable under all the circumstances in its case; and(g)
Publication of an annual report available to the general public, which includes a full description of the organization's Kentucky activities including fundraising activities.(4)
Nothing in subsections (2) or (3) of this section shall prevent the Child Victims' Trust Fund from being eligible to participate in the Kentucky Employees Charitable Campaign as a charitable organization.(5)
A charitable federation may apply on behalf of all their member organizations if both the federation and all federation members meet the criteria established in subsection (3) of this section.(6)
Authority of the Secretary of Personnel.(a)
The Secretary of Personnel shall have the full authority over the procedures and policies relating to the operation of the Kentucky Employees Charitable Campaign.(b)
The secretary shall designate a group of state employees to compose the Kentucky Employees Charitable Campaign Committee to make recommendations on related matters.(c)
The committee shall be composed of a cross-section of state employees, involving the large cabinets and small agencies.(d)
The chair of the committee shall be appointed by the secretary.(7)
Functions of the committee. The committee shall make recommendations on:(a)
The designation of a campaign administrator who shall:1.
Serve for a minimum period of two (2) years; and2.
Be charged to manage and administer the charitable fund campaign for the Commonwealth, subject to the direction and control of the Secretary of Personnel. The campaign administrator shall have statewide workplace campaign experience and have the necessary staff and volunteer support to administer the Kentucky Employees Charitable Campaign;(b)
The establishment of the minimum amount, based on cost effectiveness, that an employee may authorize to be deducted for each approved charitable federation;(c)
The format of the brochure, pledge card, or other promotional materials for the annual campaign;(d)
The dates and duration of the campaign;(e)
The annual campaign budget submitted by the campaign administrator; and(f)
The costs of the campaign, which shall be:1.
Detailed in the budget; and2.
Borne by each recipient organization proportionally.(8)
Charitable federations to apply for statewide campaign.(a)
A federation desiring inclusion shall apply by February 15 of each year.(b)
A federation that has previously participated in the campaign shall update its application with a letter and a copy of the most recent year's audit.(c)
A charitable organization that has previously participated in the campaign shall be eligible if it fulfills all conditions of eligibility.(9)
The campaign administrator. The campaign administrator shall:(a)
Provide staffing to manage and administer the annual campaign, which includes preparing drafts of campaign materials for consideration by the Secretary of Personnel;(b)
Serve as the central accounting point for both campaign cash and for payroll deductions received from the Personnel Cabinet including:1.
The preparation and submission of an annual campaign budget. Costs of the campaign shall be divided among recipient organizations; and2.
A separate account maintained for managing the income and expenses of the campaign;(c)
Distribute campaign funds received from the Personnel Cabinet to participating organizations in accordance with agreed upon time periods. This shall include distribution of funds to designated nonprofit agencies;(d)
Provide an end-of-campaign report to the Secretary of Personnel and to participating organizations; and(e)
Annually furnish a financial statement prepared by a certified public accountant.HISTORY: (48 Ky.R. 2878; eff. 9-27-2022.)
GERINA D. WHETHERS, Secretary
APPROVED BY AGENCY: April 11, 2022
FILED WITH LRC: April 15, 2022 at 9:25 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on June 21, 2022 at 10:00 a.m. at 501 High Street, 3rd floor, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until 11:59 p.m. on June 30, 2022. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Rosemary Holbrook, Assistant General Counsel, Office of Legal Services, 501 High Street, 3rd floor, Frankfort, Kentucky 40601, phone (502) 564-7430, fax (502) 564-0224, email RosemaryG.Holbrook@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Rosemary Holbrook
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation sets forth the procedures and requirements governing the Kentucky Employees Charitable Campaign.
(b) The necessity of this administrative regulation:
This administrative regulation is necessary to set forth the procedures and requirements governing the Kentucky Employees Charitable Campaign.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
Pursuant to 18A.030(2), the Personnel Cabinet Secretary is required to promulgate comprehensive regulations consistent with the provisions for KRS Chapter 18A. KRS 18A.110 provides that the secretary shall promulgate comprehensive administrative regulations for the classified and unclassified service. 2022 Ky. Acts ch. 75, sec. 21 requires the Personnel Cabinet to promulgate administrative regulations for inclusion of the Child Victims’ Trust Fund as an eligible charitable organization.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation provides the opportunity for employees to contribute to eligible Kentucky organizations through the state's payroll deduction process, while minimizing workplace disruption and administrative costs to Kentucky taxpayers by allowing only one (1) statewide payroll deduction charitable solicitation per year.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This is a new administrative regulation.
(b) The necessity of the amendment to this administrative regulation:
This is a new administrative regulation.
(c) How the amendment conforms to the content of the authorizing statutes:
This is a new administrative regulation.
(d) How the amendment will assist in the effective administration of the statutes:
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
All state agencies and employees who participate in the Kentucky Employees Charitable Campaign are affected by this regulation, as are charitable organizations that participate or seek to participate.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
No additional action is required.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
There are no additional costs anticipated to any entity identified above.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
No additional benefits will accrue.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
This regulation is not anticipated to generate any new or additional costs.
(b) On a continuing basis:
This regulation is not anticipated to generate any new or additional costs.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
This regulation is not anticipated to generate any new or additional costs.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
This regulation is not anticipated to generate any new or additional fees or funding.
(8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees:
This regulation is not anticipated to generate any new or additional fees.
(9) TIERING: Is tiering applied?
No. This regulation treats all impacted entities the same.
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
(1) What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
All state agencies that participate the Kentucky Employees Charitable Campaign are impacted.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 18A.030(2), 18A.110, and 2022 Ky. Acts ch. 75, sec. 21.
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
No revenue will be generated.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
No revenue will be generated.
(c) How much will it cost to administer this program for the first year?
There are no estimated additional costs to administer the amendments to this regulation.
(d) How much will it cost to administer this program for subsequent years?
There are no estimated additional costs to administer the amendments to this regulation.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Expenditures (+/-):
Other Explanation: