Kentucky
General Assembly

02/09/23	introduced in House to Committee on Committees (H)
02/14/23	to Natural Resources & Energy (H)
02/23/23	reported favorably, 1st reading, to Calendar with Committee Substitute (1)
02/24/23	2nd reading, to Rules
02/28/23	floor amendment (1) filed to Committee Substitute
03/01/23	posted for passage in the Regular Orders of the Day for Thursday, March 02, 2023
03/02/23	3rd reading, passed 77-17 with Committee Substitute (1) and Floor Amendment (1)
03/03/23	received in Senate to Committee on Committees (S)
03/07/23	to State & Local Government (S)
03/08/23	reported favorably, 1st reading, to Calendar floor amendment (1) filed
03/09/23	2nd reading, to Rules
03/10/23	posted for passage in the Regular Orders of the Day for Monday, March 13, 2023
03/13/23	3rd reading floor amendment (1) withdrawn passed 32 -5 received in House enrolled, signed by Speaker of the House enrolled, signed by President of the Senate delivered to Governor
03/24/23	signed by Governor (Acts Ch. 94)

Amendment	House Committee Substitute 1
Fiscal Impact Statement	Actuarial Analysis to House Committee Substitute 1
Summary	Retain original provisions; amend KRS 21.450, 61.650, 78.790, and 161.430 to expand scope of persons owing a fiduciary duty to the respective state-administered retirement systems and prohibit any contract or agreement from voiding such fiduciary duties; amend KRS 21.450, 61.650, and 78.790 to require third-party fiduciaries to acknowledge their fiduciary duties in writing; amend KRS 21.540, 61.650, 78.790, and 161.430 to require the boards of the state-administered retirement systems to adopt their own proxy guidelines, prevent the boards from following the recommendations of a proxy voting service or proxy adviser unless the proxy adviser acknowledges its fiduciary duties in writing, and require the boards to either vote their own shares or have the proxy voting service or proxy adviser voting the system's shares commit to follow the board's proxy guidelines; amend KRS 21.540, 61.645, 78.782, and 161.250 to require the quarterly reporting of proxy votes to the boards of the state-administered retirement systems; make technical changes.
Index Headings	State Agencies - State-administered retirement systems, proxy voting requirements Actuarial Analysis - State-administered retirement systems, fiduciary duties Technical Corrections - HB 236/HCS 1 Fiduciaries - Retirement and Pensions, duties to the state-administered retirement systems Retirement and Pensions - State-administered retirement systems, fiduciary duties Retirement and Pensions - State-administered retirement systems, proxy voting requirements State Agencies - State-administered retirement systems, fiduciary duties

Amendment	House Floor Amendment 1
Sponsor	S. Sharp
Summary	Retain original provisions, except amend KRS 21.450, 61.650, 78.790, and 161.430 to add to the definition of "nonpecuniary interest" and define "investment manager" and, where applicable, "investment consultant" to make consistent with federal law, make the duties and responsibilities of proxy advisers consistent with federal law, and require proxy advisers to agree by written contract that they will vote proxies solely in the interest of the members and beneficiaries and follow board-adopted proxy voting guidelines; amend KRS 21.540 to permit a sole investment manager which acknowledges in writing its fiduciary duty to the system to provide proxy voting guidelines for adoption by and vote the shares for the board of the Judicial Form Retirement System; make technical amendments.
Index Headings	Fiduciaries - State-administered retirement systems, fiduciary duties of investment managers, definitions Retirement and Pensions - Judicial Form Retirement System, sole investment manager, option to allow proxy voting Retirement and Pensions - State-administered retirement systems, fiduciary duties of investment managers, definitions Retirement and Pensions - State-administered retirement systems, proxy advisers, duties State Agencies - State-administered retirement systems, investment managers, fiduciary duties

Amendment	Senate Floor Amendment 1
Sponsor	R. Mills
Summary	Retain original provisions; amend KRS 61.650 and 78.790 to limit the extent to which fiduciary duties to the Kentucky Retirement Systems or County Employees Retirement System apply to only when the relevant party is exercising discretion or control over the plan assets.
Index Headings	Fiduciaries - Kentucky Retirement Systems, duties, limited based on discretion or control Fiduciaries - County Employees Retirement System, duties, limited based on discretion or control State Agencies - KPPA, fiduciary duties, limited based on discretion or control Retirement and Pensions - Kentucky Retirement Systems, fiduciary duties, limited based on discretion or control Retirement and Pensions - County Employees Retirement System, fiduciary duties, limited based on discretion and control