19RS HB 230

House Bill 230

Actions

Last Action	02/06/19: to State Government (H)
Title	AN ACT relating to the Kentucky Retirement Systems board of trustees.
Bill Documents	Introduced
Fiscal Impact Statements	Corrections Impact Local Mandate
Bill Request Number	1076
Sponsor	J. Graviss
Summary of Original Version	Amend KRS 61.645 to require the Kentucky Retirement Systems (KRS) to follow the state Model Procurement Code when contracting for investment management services; provide that, in addition to removal upon a conviction of a felony or violation of the Executive Branch Ethics Code, a KRS board member shall also be removed for a violation of fiduciary duties or conflict of interest; provide that a KRS board member shall not be considered as acting in good faith if he or she fails to disclose a conflict of interest; grant the Attorney General concurrent jurisdiction to investigate and prosecute violations of the ethical and fiduciary duties of trustees and investment managers for the Kentucky Retirement Systems; specify investment fee and commission reporting to include underlying fund of funds fees; require investment managers failing to disclose investment holdings, fees, and commissions to forfeit any fees or commission paid by KRS; subject investment contracts made by the Kentucky Retirement System to full public disclosure; amend KRS 61.650 to require investment managers to formally adopt the CFA Institute's codes of conduct; require that failure to adhere to the CFA Institute's codes of conduct shall result in the forfeiture of any fees or commissions paid by the Kentucky Retirement Systems; make conforming amendments; amend KRS 61.655 to repeal, reenact, and amend conflict-of-interest provisions to prohibit a trustee and employees of the Kentucky Retirement Systems from having a contractual agreement with or interest in any entities providing services to the systems and from receiving, directly or indirectly, any interest, fees, or profit from entities that provide services to the Kentucky Retirement Systems; require trustees and employees of the Kentucky Retirement Systems to file annual conflict-of-interest statements with the Kentucky Retirement Systems beginning on August 1, 2019; amend KRS 61.990 to provide that a knowing violation of the ethical and fiduciary duties of trustees and investment managers for the Kentucky Retirement Systems is a Class D felony.
Index Headings of Original Version	Crimes and Punishments - Kentucky Retirement Systems, violation of fidudiary or ethical duties, Class D felony Public Ethics - Kentucky Retirement Systems, violation of fiduciary or ethical duties Public Officers and Employees - Kentucky Retirement Systems, violation of fiduciary or ethical duties Retirement and Pensions - Kentucky Retirement Systems, investment contracts subject to Model Procurement Code Retirement and Pensions - Kentucky Retirement Systems, public disclosure of investment contracts Retirement and Pensions - Kentucky Retirement Systems, violation of fiduciary or ethical duties, Class D felony Ethics - Kentucky Retirement Systems, violation of fiduciary or ethical duties Corrections Impact - Kentucky Retirement Systems, public disclosure of investment contracts Local Mandate - Kentucky Retirement Systems, public disclosure of investment contracts Corrections Impact - Kentucky Retirement Systems, violation of fiduciary or ethical duties, Class D felony