KRS ch. 18A | Kentucky Revised Statutes, Chapter 18A — State Personnel

Title III — Executive Branch

Includes enactments through the 2026 Regular Session.

The KRS database was last updated on 2026-08-30.

Title III Executive Branch

Chapter 18A State Personnel

18A.005 Definitions for chapter.

As used in this chapter, unless the context indicates otherwise:

(1) "Appointing authority" means the agency head or any person whom he or she has authorized by law to designate to act on behalf of the agency with respect to employee appointments, position establishments, payroll documents, register requests, waiver requests, requests for certification, or other position actions. Such designation shall be in writing and signed by both the agency head and his or her designee. Prior to the exercise of appointing authority, such designation shall be filed with the secretary;

(2) "Base salary or wages" means the compensation to which an employee is entitled under the salary schedules adopted pursuant to the provisions of KRS 18A.030 and 18A.110. Base salary or wages shall be adjusted as provided under the provisions of KRS 18A.355 and 48.130;

(3) "Board" means the Personnel Board created by KRS 18A.045;

(4) "Career employee" means a state employee with sixteen (16) or more years of permanent full-time state service, or the part-time employment equivalent of at least sixteen (16) years of full-time state service. The service may have been in the classified service under this chapter, the unclassified service in the executive branch of state government, or a combination thereof. At least five (5) years of the combined service shall have been in the classified service under this chapter;

(5) "Certification" means the referral of the name of one (1) or more qualified prospective employees by the secretary on request of an appointing officer for consideration in filling a position in the classified service;

(6) "Class" means a group of positions sufficiently similar as to duties performed, scope of discretion and responsibility, minimum requirements of training, experience, or skill, and such other characteristics that the same title, the same tests of fitness, and the same schedule of compensation have been or may be applied to each position in the group;

(7) "Classified employee" means an employee appointed to a position in the classified service under this chapter whose appointment and employment are subject to the classified service provisions of this chapter and the administrative regulations promulgated under this chapter;

(8) "Classified position" means a position in the executive branch of state government that is not exempt from the classified service under KRS Chapter 16, KRS 18A.115, KRS Chapter 151B, or any other provision of law;

(9) "Classified service" includes all the employment subject to the terms of this chapter except for those positions expressly cited in KRS 18A.115; a "classified position" is a position in the classified service;

(10) "Secretary" means the secretary of the Personnel Cabinet as provided for in KRS 18A.015;

(11) "Demotion" means a change in the rank of an employee from a position in one (1) class to a position in another class having a lower minimum salary range and less discretion or responsibility;

(12) "Cabinet" means the Personnel Cabinet provided for in KRS 18A.015, unless the context indicates otherwise;

(13) "Eligible" refers to a person who has made a passing score on any examination required under KRS 18A.010 to 18A.200 or who has qualified to be placed on a register;

(14) "Employee" means a person regularly appointed to a position in the state service for which he or she is compensated on a full-time, part-time, or interim basis;

(15) "Federally funded time-limited employee" means an employee in the unclassified service, appointed to a position that is funded one hundred percent (100%) by a federal grant or grants. An employee appointed to a federally funded time-limited position shall be required to meet the minimum requirements for the classification in which he or she is hired and, subject to the provisions of KRS 18A.113, shall serve at the pleasure of the appointing authority during a period of time that shall not exceed the life of the federal grant that funds the position. A federally funded time-limited employee who has been aggrieved by notice of disciplinary action or termination, other than an action based on expiration of the federal grant funding, may petition the appointing authority of the agency for the opportunity to be heard by the appointing authority or his or her designee prior to the effective date of the disciplinary action or termination. The decision of the appointing authority shall be final except as provided by KRS 18A.095(14) and 18A.140. A federally funded time-limited employee shall not have the right of appeal to the Personnel Board except as provided by KRS 18A.095(14) and 18A.140;

(16) "Federally funded position" means a full-time or a part-time position in which the unclassified employee is eligible for benefits at the same level as a classified employee in a permanent position;

(17) "Full-time employee" means an employee in a full-time position;

(18) "Full-time position" means a position, other than an interim position, requiring an employee to work at least thirty-seven and one-half (37.5) hours in a work week, except for the following:

(a) Positions in the state parks, where the work assigned is dependent upon fluctuations in tourism, may be assigned work hours from twenty-five (25) hours per week during the off seasons and remain in full-time positions; and

(b) Positions in health care facilities, which regularly involve three (3) consecutive days of twelve (12) hour shifts to cover weekends, shall be considered full-time;

(19) "Initial probation" means the period of service following initial appointment to any position under KRS 18A.010 to 18A.200 which requires special observation and evaluation of an employee's work and which must be passed successfully before status may be conferred as provided in KRS 18A.110 and by the provisions of this chapter. If the appointee is granted leave in excess of twenty (20) consecutive work days during this period, his or her initial probation shall be extended for the same length of time as the granted leave to cover such absence;

(20) "Interim employee" means an unclassified employee without status who has been appointed to an interim position that shall be less than nine (9) months duration;

(21) "Interim position" means a position established to address a one-time or recurring need of less than nine (9) months duration and exempt from the classified service under KRS 18A.115;

(22) "Part-time employee" means an employee in a part-time position;

(23) "Part-time position" means a position, other than an interim position, requiring an employee to work less than one hundred (100) hours per month;

(24) "Position" means an office or employment in an agency (whether part-time, full- time, or interim, occupied, or vacant) involving duties requiring the services of one

(1) person;

(25) "Promotion" means a change of rank of an employee from a position in one (1) class to a position in another class having a higher minimum salary or carrying a greater scope of discretion or responsibility;

(26) "Promotional probation" means the period of service, consistent with the length of the initial probationary period, following the promotion of an employee with status which must be successfully completed in order for the employee to retain the position to which he or she has been promoted. If the employee is granted leave in excess of twenty (20) consecutive work days during this period, his or her promotional probation shall be extended for the same length of time as the granted leave to cover such absence;

(27) "Qualifying" means the selection method type which results when the knowledge, skills, and abilities necessary for a job classification cannot be accurately measured by written examination;

(28) "Reallocation" means the correction of the classification of an existing position by placement of the position into the classification that is appropriate for the duties the employee has been and shall continue to perform;

(29) "Reclassification" shall mean the change in the classification of an employee when a material and permanent change in the duties or responsibilities of that employee has been assigned in writing by the appointing authority;

(30) "Reemployment" shall mean the rehiring of an employee with status who has been laid off;

(31) "Reemployment register" means the separate list of names of persons who have been separated from state service by reason of layoff. Reemployment registers shall be used as provided by the provisions of KRS 18A.110, 18A.130, and 18A.135;

(32) "Register" means any official list of eligibles for a particular class and, except as provided in this chapter, placed in rank order according to the examination scores maintained for use in making original appointments or promotions to positions in the classified service;

(33) "Reinstatement" means the privilege of restoration of an employee who has resigned in good standing at the option of the appointing authority, or who has been ordered reinstated by the board or a court to a position in his former class, or to a position of like status and pay;

(34) "Reversion" means either the returning of a status employee to his or her last position held in the classified service, if vacant, or the returning of a status employee to a vacant position in the same or similar job classification as his or her last position held in the classified service. Reversion occurs after a career employee is terminated other than for cause from the unclassified service or after a status employee fails to successfully complete promotional probation. Reversion after unsuccessful completion of promotional probation, or in the case of a career employee after termination from the unclassified service, may only be appealed to the Personnel Board under KRS 18A.095(11);

(35) "Seniority" means the total number of months of state service;

(36) "Status" means the acquisition of tenure with all rights and privileges granted by the provisions of this chapter after satisfactory completion of the initial probationary period by an employee in the classified service; and

(37) "Transfer" means a movement of any employee from one (1) position to another of the same grade having the same salary ranges, the same level of responsibility within the classified service, and the same salary received immediately prior to transfer.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 35, sec. 1, effective June 29, 2023. -- Amended 2010 Ky. Acts ch. 153, sec. 1, effective April 13, 2010. -- Amended 2009 Ky. Acts ch. 75, sec. 14, effective June 25, 2009. -- Amended 2004 Ky. Acts ch. 127, sec. 1, effective July 13, 2004. -- Amended 2002 Ky. Acts ch. 122, sec. 1, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 91, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 154, sec. 10, effective July 15, 1998; and ch. 540, sec. 1, effective July 15, 1998. -- Amended 1990 Ky. Acts ch. 309, sec. 3, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 129, sec. 1, effective July 15, 1988; and ch. 203, sec. 1, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 494, sec. 7, effective July 15, 1986. -- Repealed, reenacted, and amended as KRS 18A.005, 1982 Ky. Acts ch. 448, sec. 1, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 132, sec. 1, effective July 15, 1980; and ch. 355, sec. 4, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 269, sec. 1, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 86, sec. 1, effective March 19, 1976. -- Amended 1974 Ky. Acts ch. 162, sec. 1. -- Created 1960 Ky. Acts ch. 63, sec. 2. Formerly codified as KRS 18.110. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. IV, 4 at 2165.

Legislative Research Commission Note (6/29/2023). Under the authority of KRS 7.136(1), the Reviser of Statutes has updated the reference in subsection (34) of this section to KRS 18A.095(11) to reflect the renumbering of subsections in 2023 Ky. Acts ch. 35, sec. 5.

Legislative Research Commission Note (7/13/2004). 2004 Ky. Acts ch. 127, sec. 5, provides that "Employment in a federally funded position, as defined in subsection (16) of Section 1 of this Act [KRS 18A.005], shall not exceed the original grant period or any renewal thereof. A copy of the relevant section or sections of the federal grant which relate to the establishment of a time frame for the position shall become part of the employee's personnel file and shall be reported and justified to the State Personnel Board."

18A.010 General purpose of KRS 18A.005 to 18A.200 -- Total number of employees limited.

(1) The general purpose of KRS 18A.005 to 18A.200 is to establish for the state a system of personnel administration based on merit principles and scientific methods governing the recruitment, examination, appointment, promotion, transfer, lay-off, removal, discipline, and welfare of its classified employees and other incidents of state employment. All appointments and promotions to positions in the state classified service shall be made solely on the basis of merit and fitness, to be ascertained by competitive examination, except as hereinafter specified. The General Assembly finds that this chapter is necessary in order to improve the morale and motivation of state employees and to gain the maximum utilization of human resources in order to provide better service to the citizens of this Commonwealth.

(2) The total number of permanent full-time personnel employed in agencies of the executive branch shall not exceed thirty-three thousand (33,000).

(3) The provisions of subsection (2) of this section do not apply to teachers, career guidance coaches and counselors, or school administrators employed in state- operated area technology centers, or employees of the General Assembly, the Legislative Research Commission, the Kentucky Higher Education Assistance Authority, the Kentucky Higher Education Student Loan Corporation, or the Court of Justice.

(4) As used in this section, "career guidance coach" has the same meaning as in KRS 158.810.

Effective: April 19, 2012

History: Amended 2012 Ky. Acts ch. 150, sec. 8, effective April 19, 2012. -- Amended 1996 Ky. Acts ch. 350, sec. 4, effective July 15, 1996. -- Repealed, reenacted, and amended as KRS 18A.010, 1982 Ky. Acts ch. 448, sec. 2, effective July 15, 1982 and created in part ch. 381, sec. 8, effective July 15, 1982. -- Created in part 1960 Ky. Acts ch. 63, sec. 1. Formerly codified as KRS 18.120. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, G, 1, (2) at 2085.

Legislative Research Commission Note (4/19/2012). 2012 Ky. Acts ch. 150, sec. 10, provides that the Act, which included an amendment to this statute, shall be known as the "Career Pathways Act of 2012."

18A.015 Creation of Personnel Cabinet -- Provision for administrative costs.

(1) There shall be created by KRS 18A.005 to 18A.200 a Personnel Cabinet headed by a secretary who shall be appointed by the Governor.

(2) Appropriations shall be made from the general expenditure fund to the cabinet to meet the estimated pro rata share of the cost of administering the provisions of this chapter for departments, commissions, boards, or agencies which receive their sole support from the general expenditure fund.

(3) The secretary shall maintain accurate records reflecting the cost of administering the provisions of this chapter. At the close of each quarter year period he shall summarize the cost and shall bill each department, commission, board, or agency which receives support from sources other than the general expenditure fund, except the Department of Fish and Wildlife Resources, for a pro rata share of the administrative cost based on the relationship between the quarterly average number of employees in the service of such department, commission, board, or agency and the quarterly average number of employees in the service of all the departments, commissions, boards, and agencies for the appropriate calendar quarter.

(4) All departments, commissions, boards, or agencies which receive support from other than the general expenditure fund, except the Department of Fish and Wildlife Resources, shall include in their budgets sufficient amounts to meet their pro rata shares of the cost of administering KRS 18A.005 to 18A.200 and shall remit such shares quarterly to the department in the manner provided by law.

(5) The cabinet is authorized and directed to accept on behalf of the state any grant or contribution, federal or otherwise, made to assist in meeting the cost of carrying out the purposes of KRS 18A.005 to 18A.200.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 11, effective July 15, 1998. -- Repealed, reenacted, and amended as KRS 18A.015, 1982 Ky. Acts ch. 448, sec. 3, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 132, sec. 3, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 154, sec. 3, effective June 17, 1978; and ch. 269, sec. 3, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 86, sec. 4, effective March 29, 1976. -- Amended 1974 Ky. Acts ch. 308, sec. 9. -- Amended 1972 Ky. Acts ch. 13, sec. 3. -- Created 1960 Ky. Acts ch. 63, sec. 5. Formerly codified as KRS 18.160.

18A.020 Records of Personnel Cabinet subject to open records law -- Employee access to personnel files.

(1) The records of the cabinet shall be public records and shall be open to public inspection, as provided in KRS 61.870 to 61.884.

(2) (a) A personnel file shall be maintained by the cabinet and the appointing authority for each employee. The file maintained by the cabinet shall be the official personnel file for the employee. Upon transfer, the personnel file maintained by the appointing authority from which the employee transfers shall be forwarded to the new appointing authority;

(b) Each file shall include, but not be limited to, for each employee, his name, address, title of positions held, classification, rates of compensation, all changes in status including evaluations, promotions, demotions, lay-offs, transfers, disciplinary actions, commendations, awards, and preliminary and other supporting documentation for each action. Each file shall contain the complete record and supporting documentation for each personnel action;

(c) Whenever an employee is reprimanded for misconduct, other infraction, or failure to perform his duties in a proper or adequate manner, the supervising employee taking such action shall document such action in detail, and shall provide the employee with a copy of such documentation. The supervising employee shall inform the employee that he has the right to prepare a written response to the action taken after he has reviewed the written documentation prepared by the supervising employee. Such response shall be attached to the documentation prepared by the supervising employee. The supervising employee shall place a copy of the documentation and response provided for herein in the employee's personnel file and shall transmit a copy to the cabinet to be placed in the official personnel file of the employee. The supervising employee shall notify the employee that copies of the documentation and the response provided for herein have been placed in his personnel files.

(3) Upon written request, an employee shall have the right to examine his personnel

file. An employee may comment in writing on any item in his file. Such comments shall be made a part of his file and shall be attached to the specific record or document to which they pertain.

(4) Upon written request a state employee, an applicant for employment, and an eligible on a register shall have the right to inspect and to copy any record and preliminary documentation and other supporting documentation that relates to him, except that an applicant, an eligible, or a state employee shall not have the right to inspect or to copy any examination materials.

(5) No public agency, as defined by KRS 61.870, and no officer or employee shall deny, abridge, or impede the exercise of the rights granted in any manner by this section and by KRS 61.878.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 12, effective July 15, 1998. -- Amended 1986 Ky. Acts ch. 494, sec. 8, effective July 15, 1986. -- Repealed, reenacted, and amended as KRS 18.290, 1982 Ky. Acts ch. 448, sec. 4, effective July 15, 1982. -- Created 1960 Ky. Acts ch. 63, sec. 14. Formerly codified as KRS 18.290.

18A.025 Appointment of secretary of Personnel Cabinet -- Responsibilities -- Organization and duties of cabinet.

(1) The Governor shall appoint the secretary of personnel as provided in KRS 18A.015, who shall be considered an employee of the state. The secretary shall be a graduate of an accredited college or university and have at least five (5) years' experience in personnel administration or in related fields, have known sympathies with the merit principle in government, and shall be dedicated to the preservation of this principle. Additional education may be substituted for the required experience and additional experience may be substituted for the required education.

(2) The secretary of the Personnel Cabinet or the secretary's designee shall be responsible for the coordination of the state's affirmative action plan established by KRS 18A.138.

(3) There is established within the Personnel Cabinet the following offices, departments, and divisions, each of which shall be headed by either a commissioner, executive director, or division director appointed by the secretary, subject to the prior approval of the Governor pursuant to KRS 12.040 or 12.050, depending on the level of the appointment, except that the Kentucky Employees Deferred Compensation Authority shall be headed by an executive director who shall be appointed by the authority's board of directors:

(a) Office of the Secretary, which shall be responsible for communication with state employees about personnel and other relevant issues and for the administration and coordination of the following:

Office of Employee Relations, composed of the following programs:

a. Workers' Compensation Program pursuant to KRS 18A.375;

b. Sick leave Sharing Program, pursuant to KRS 18A.197;

c. Annual Leave Sharing Program, pursuant to KRS 18A.203;

d. Health and Safety Program;

e. Employee Assistance Program;

f. Employee Incentive Programs, pursuant to KRS 18A.202;

g. Employee Mediation Program; and

h. Living Organ Donor Leave Program, pursuant to KRS 18A.194;

Office of Administrative Services, which shall be responsible for the Personnel Cabinet's administrative functions, composed of the following programs:

a. Division of Technology Services;

b. Division of Human Resources; and

c. Division of Financial Services;

Office of Legal Services, which shall provide legal services to the Personnel Cabinet and to executive branch agencies and their representatives upon request;
Office of Diversity, Equality, and Training, which shall coordinate and implement diversity initiatives for state agencies, the affirmative action plan established by KRS 18A.138, the state Equal Employment Opportunity Program, and the Minority Management Trainee Program;
Governmental Services Center, which shall be responsible for employee and managerial training and organizational development;
Kentucky Public Employees Deferred Compensation Authority, which shall maintain a deferred compensation plan for state employees; and
Office of Public Affairs, which shall assist in all aspects of developing and executing the strategic direction of the cabinet;

(b) Department of Human Resources Administration, which shall be composed of the:

Division of Employee Management, which shall be responsible for payroll, records, classification, and compensation. The division shall also be responsible for implementing layoff plans mandated by KRS 18A.113 and shall monitor and assist state agencies in complying with the provisions of the federal Fair Labor Standards Act. The division shall:

a. Maintain the central personnel files mandated by KRS 18A.020 and process personnel documents and position actions;

b. Operate and maintain a uniform payroll system and certify payrolls as required by KRS 18A.125;

c. Maintain plans of classification and compensation for state service and review and evaluate the plans; and

d. Coordinate and implement the employee performance evaluation systems throughout state government; and

Division of Career Opportunities, which shall be responsible for employment counseling, applicant processing, employment register, and staffing analysis functions. The division shall:

a. Operate a centralized applicant and employee counseling program;

b. Operate, coordinate, and construct the examination program for state employment;

c. Prepare registers of candidate employment; and

d. Coordinate outreach programs, such as recruitment and the Administrative Intern Program; and

Health Insurance Program, pursuant to KRS 18A.225;
Flexible Benefit Plan, pursuant to KRS 18A.227;
Division of Insurance Administration, which shall be responsible for enrollment and service functions;
Division of Financial and Data Services, which shall be responsible for fiscal and data analysis functions; and
Life Insurance Program pursuant to KRS 18A.205 to 18A.220.

(4) The cabinet shall include principal assistants appointed by the secretary, pursuant to KRS 12.050 or 18A.115(1)(g) and (h), as necessary for the development and implementation of policy. The secretary may employ, pursuant to the provisions of this chapter, personnel necessary to execute the functions and duties of the department.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 35, sec. 9, effective June 29, 2023. -- Amended 2020 Ky. Acts ch. 107, sec. 2, effective July 15, 2020. -- Amended 2017 Ky. Acts ch. 111, sec. 2, effective June 29, 2017. -- Amended 2012 Ky. Acts ch. 10, sec. 2, effective July 12, 2012. -- Amended 2005 Ky. Acts ch. 97, sec. 2, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 122, sec. 2, effective July 15, 2002. -- Amended 2001 Ky. Acts ch. 70, sec. 2, effective March 15, 2001. -- Amended 2000 Ky. Acts ch. 97, sec. 2, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 82, sec. 2, effective July 15, 1998; and ch. 154, sec. 13, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 116, sec. 1, effective July 15, 1994. -- Amended 1986 Ky. Acts ch. 98, sec. 1, effective July 15, 1986; and ch. 494, sec. 9, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 346, sec. 3, effective July 13, 1984; and ch. 404, sec. 8, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 393, sec. 13; and repealed, reenacted, and amended as KRS 18A.025, ch. 448, sec. 5, effective July 15, 1982. -- Amended 1972 Ky. Acts ch. 13, sec. 4. -- Amended 1966 Ky. Acts ch. 255, sec. 22. -- Created 1960 Ky. Acts ch. 63, sec. 7. Formerly codified as KRS 18.180.

Legislative Research Commission Note (6/20/2005). The Reviser of Statutes has renumbered the subparagraphs of subsection (3)(a) of this statute and deleted the word "which" under the authority of KRS 7.136(1)(a) and (h).

Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts ch. 97, sec. 2, amends this section to insert a reference to "KRS 18A.115(g) and (h)" in subsection (4). Because only subsection (1) of KRS 18A.115 contains paragraphs (g) and (h), and those paragraphs relate to principal assistants exempted from classified service, the reference has been changed in codification to "KRS 18A.115(1)(g) and (h)" under KRS 7.136(1)(e) and (h).

18A.030 Duties of secretary.

(1) The secretary shall be the executive and administrative head of the cabinet and shall supervise and control all examinations and work of the cabinet. He or she shall advise the board on matters pertaining to the classified service of this state. Within the limitations of the budget, the secretary shall appoint and supervise the staff needed in the cabinet to carry out the purposes of KRS 18A.005 to 18A.200 except employees of the board who shall be appointed as provided in KRS 18A.090.

(2) Subject to the provisions of this chapter and KRS Chapter 13A, the secretary shall, with the aid of his or her staff:

(a) Attend all meetings of the board;

(b) As provided by this chapter, promulgate comprehensive administrative regulations consistent with the provisions of KRS Chapters 13A and 18A, and with federal standards for the administration of a personnel system in the agencies of the state government receiving federal grants;

(c) Establish general procedures for personnel recruitment, for certification, and for improving the efficiency of employed personnel;

(d) Appoint the examiners and technicians necessary for the conduct of the personnel program, whether on a permanent or temporary basis;

(e) Prepare and maintain a record of all employees, showing for each employee his or her name, address, title of position held, rate of compensation, changes in status, compensation, or title, transfer, and to make the data and the class specifications for all positions available to the press and public;

(f) Prepare, in accordance with the provisions of KRS 18A.005 to 18A.200 and the administrative regulations adopted thereunder, examinations, eligible lists, and ratings of candidates for appointment;

(g) Make certification for appointment or promotion within the classified service, in accordance with the provisions of KRS 18A.005 to 18A.200;

(h) Make investigations concerning all matters touching the enforcement and effect of the provisions of KRS 18A.005 to 18A.200 and administrative regulations prescribed thereunder;

(i) Prepare, in cooperation with appointing authorities and others, programs for employee training, safety, morale, work motivation, health, counseling, and welfare, and exercise leadership in the development of effective personnel administration within the several departments of the Commonwealth, and make available the facilities of the department to this end;

(j) Provide personnel services to unclassified employees in agreement with the agencies involved not otherwise provided for in KRS 18A.005 to 18A.200;

(k) Present, in accordance with the provisions of KRS Chapter 48, budget requests for the support of the personnel system created by KRS 18A.005 to 18A.200, excluding the board, which shall present its own budget estimates;

(l) Make a report and submit the same to the board, the Legislative Research Commission, and the Governor not later than October first of each year;

(m) Propose selection method changes for any classification to the Personnel Board with documentation justifying the need for the selection method change. The Personnel Board shall, at its next regularly scheduled monthly meeting, review and comment on any proposed selection method change. A classification shall not have its selection method changed without review and comment by the Personnel Board;

(n) Perform a classification and compensation study at least once every five (5) years; and

(o) Discharge the other duties imposed upon him or her by KRS 18A.005 to 18A.200.

(3) The secretary on behalf of the cabinet may join or subscribe to any association or service having as its purpose the interchange of information relating to the improvement of the public service and especially improvement of personnel administration.

(4) The secretary shall keep records relative to employee turnover and report to the board, the Governor, and the Legislative Research Commission quarterly. The report shall reflect employee turnover rates by cabinet, department, bureau, division, and section. If any cabinet, department, bureau, division, or section has a turnover rate of fifteen percent (15%) or more in any twelve (12) month period, the secretary shall conduct an investigation into the reasons for the turnover and report the findings to the board, the Governor, and the Legislative Research Commission.

(5) The secretary shall provide to each new state employee and to each existing state employee, classified or otherwise, on an annual basis an informational pamphlet about human immunodeficiency virus infection and acquired immunodeficiency syndrome. The pamphlet shall be approved by the Cabinet for Health and Family Services and shall contain information about the nature and extent of these diseases, methods of transmission, preventive measures, and referral services.

(6) The secretary shall establish and maintain a list of all filled positions exempted from classified service under KRS 18A.115(1)(e), (g), (h), (i), (k), (t), (w), (aa), and (ab). The list shall include the following information for each filled position:

(a) The name of the agency where the position is assigned;

(b) The statutory authority for the unclassified status of the position;

(d) The pay grade of the position;

(e) The annual salary of the employee in the position; and

(f) The work county of the employee in the position.

(7) Beginning September 1, 2010, and every six (6) months thereafter, the secretary shall provide the Governor and the Legislative Research Commission with a copy of the list described in subsection (6) of this section, and shall indicate on the list any position that has been added to the list since the last submission.

(8) The secretary shall perform organizational analysis and review.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 35, sec. 2, effective June 29, 2023. -- Amended 2017 Ky. Acts ch. 53, sec. 2, effective June 29, 2017. -- Amended 2010 Ky. Acts ch. 153, sec. 2, effective April 13, 2010. -- Amended 2005 Ky. Acts ch. 99, sec. 95, effective June 20, 2005. -- Amended 1998 Ky. Acts ch. 154, sec. 14, effective July 15, 1998; and ch. 426, sec. 77, effective July 15, 1998. -- Amended 1990 Ky. Acts ch. 443, sec. 31, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 494, sec. 10, effective July 15, 1986. -- Repealed, reenacted, and amended as KRS 18A.030, 1982 Ky. Acts ch. 448, sec. 6, effective July 15, 1982; and amended ch. 450, sec. 53, effective July 1, 1983. -- Amended 1974 Ky. Acts ch. 162, sec. 4. -- Amended 1972 Ky. Acts ch. 13, sec. 5. -- Created 1960 Ky. Acts ch. 63, sec. 8. Formerly codified as KRS 18.190.

18A.032 Applicants to and eligibles for the classified service -- Examination -- Placement on and removal from registers -- Certification for employment.

(1) Except as provided by the provisions of this chapter, the secretary may refuse to examine an applicant; or, after examination, may disqualify an applicant, remove his or her name from a register, refuse to certify any eligible on a register, or may consult with the appointing authority in taking steps to remove the person already appointed if:

(a) It is found that he or she does not meet any one (1) of the preliminary requirements established for the examination for the class of position;

(b) He or she is unable to perform the duties of the class;

(d) He or she has used or attempted to use political pressure or bribery to secure an advantage in the examination;

(e) He or she has directly or indirectly obtained information regarding the examination to which, as an applicant, he or she was not entitled;

(f) He or she has failed to submit his or her application correctly or within the prescribed time limits;

(g) He or she has taken part in the compilation, administration, or correction of the examination for which he or she is an applicant;

(h) He or she has previously been dismissed from a position in the state service for cause or has resigned while charges for dismissal for cause of which he or she had knowledge were pending;

(i) He or she has been convicted of a felony within the preceding five (5) years and his or her civil rights have not been restored or he or she has not been pardoned by the Governor;

(j) He or she has been convicted of a job related misdemeanor, except that convictions for violations of traffic regulations shall not constitute grounds for disqualification; or

(k) He or she has otherwise willfully violated the provisions of this chapter.

(2) An eligible may be removed from a register:

(a) If the eligible cannot be located by postal authorities at the last address provided by the eligible;

(b) If the eligible responds in writing that he or she no longer desires consideration for position in that class;

(d) If it is shown that the eligible is not qualified or is unsuitable for appointment to the class for which the register is established;

(e) If the eligible fails to reply within a period of ten (10) calendar days of the receipt of the written request of the appointing authority for an interview, or fails to appear for an interview which he or she has scheduled with the appointing authority without good cause;

(f) If the eligible accepts an appointment and fails to present himself or herself for duty at the time and place agreed to without giving reasons for the delay satisfactory to the appointing authority;

(g) If the eligible states in writing that he or she is not available for appointment or does not wish to be considered for appointment; or

(h) If the eligible demonstrates erratic, unsafe, or threatening behavior.

(3) When an eligible notifies the cabinet in writing that he or she is unavailable for employment or employment consideration, the cabinet may remove the name of that eligible from the appropriate register without further notification to the person.

(4) When the cabinet is notified in writing by an appointing authority that an eligible has accepted a bona fide offer of probationary appointment to any position, effective on a specified date, his or her name may be removed from the register for all classes for which the maximum salary is the same or less than that of the class to which he or she has been appointed.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 35, sec. 3, effective June 29, 2023. -- Amended 1998 Ky. Acts ch. 154, sec. 15, effective July 15, 1998. -- Amended 1988 Ky. Acts ch. 190, sec. 1, effective April 4, 1988. -- Created 1986 Ky. Acts ch. 494, sec. 1, effective July 15, 1986.

18A.035 Delegation of secretary's powers -- Assistance in testing -- Membership on Kentucky Employees Retirement System board.

(1) The secretary may from time to time designate in writing an employee of the cabinet to act for him in case of his absence or inability from any cause to discharge the powers and duties of his position. In this case, the powers and duties of the secretary shall devolve upon his designee.

(2) The secretary may request appropriate persons, including officers and employees in the state service, to assist in the preparation and rating of tests. Department heads shall cooperate to the fullest extent possible in making the services of their employees available for such work.

(3) (a) The secretary may enter into written agreements with an appointing authority which would provide for the delegation of his authority and power to the appointing authority. The secretary is prohibited from delegating any powers or authority pertaining to disciplinary actions, lay-offs, or registers.

(b) All written agreements delegating the secretary's power and authority as provided in paragraph (a) of this subsection shall be specific in nature and renewed annually.

(4) The secretary shall serve ex officio as a member of the board of trustees of the Kentucky Employees Retirement System.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 16, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 180, sec. 1, effective July 15, 1994. -- Repealed and reenacted as KRS 18A.035, 1982 Ky. Acts ch. 448, sec. 7, effective July 15, 1982. -- Created 1960 Ky. Acts ch. 63, secs. 8 and 17. Formerly codified as KRS 18.200.

18A.037 New system of job classification and compensation.

(1) The commissioner shall develop and propose a new system of classification and compensation to be transmitted to the Legislative Research Commission by November 15, 1997. The system proposed by the commissioner shall be developed using a nationally-recognized system for evaluating job requirements. The proposed system shall determine the requirements of each job classification by using factors such as, but not limited to, knowledge, skill, effort, responsibility, accountability, problem solving, discretion, challenge, and working conditions, to ensure pay equity as required by KRS Chapters 337 and 344.

(2) The commissioner shall include, as a part of the proposal, estimated funding requirements for the implementation of the system.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 487, sec. 1, effective July 15, 1998. -- Created 1996 Ky. Acts ch. 296, sec. 1, effective July 15, 1996.

18A.040 Compliance with federal standards.

The board and the secretary shall see that rules, regulations and practices meeting federal merit system standards shall, where such standards apply as a prerequisite for federal grants-in-aid, be in effect continuously, notwithstanding any other provision of KRS 18A.005 to 18A.200.

Effective: April 13, 2010

History: Amended 2010 Ky. Acts ch. 153, sec. 3, effective April 13, 2010. -- Repealed, reenacted, and amended as KRS 18A.040, 1982 Ky. Acts ch. 448, sec. 8, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 308, sec. 22. -- Created 1960 Ky. Acts ch. 63, sec. 22. Formerly codified as KRS 18.340.

18A.043 Administrative regulations to implement Federal Drug-Free Workplace Act.

The secretary of the Personnel Cabinet shall promulgate administrative regulations in accordance with KRS Chapter 13A, to implement the provisions of the Federal Drug- Free Workplace Act of 1988, Subtitle D of Public Law 100-690, so that the Commonwealth of Kentucky can certify that it has met the requirements designed to promote a drug-free workplace for all state employees.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 17, effective July 15, 1998. -- Created 1990 Ky. Acts ch. 483, sec. 7, effective July 13, 1990.

18A.045 Creation of Personnel Board -- Membership -- Prohibited Acts.

(1) There is hereby created a Personnel Board in which shall be vested the constitutional powers and responsibilities of officers of the Commonwealth. The board shall consist of seven (7) members, five (5) of whom shall be appointed by the Governor as provided in KRS 18A.050. Two (2) members of the board shall be elected by classified employees as provided in KRS 18A.0551.

(2) Personnel Board members shall not accept gifts as provided in KRS 11A.045(1), benefit under any contract or agreement as provided in KRS 11A.040(4), or fail to disclose to other members of the board any direct or indirect conflict of interest as described in KRS 11A.005(2)(c).

(3) Any person retaliating in any manner and any person ordering retaliation against a classified employee or a member of his family because he has participated in an election to the board, either by being a candidate or voting for a candidate, shall be subject to the provisions of KRS 18A.990.

Effective: April 13, 2010

History: Amended 2010 Ky. Acts ch. 153, sec. 4, effective April 13, 2010. -- Created 1982 Ky. Acts ch. 448, sec. 9, effective July 15, 1982.

18A.050 Personnel Board -- Grandfather clause -- Composition -- Terms -- Automatic termination.

(1) Any person serving on the board on July 15, 1982, shall serve until the expiration of his current term of office. Subsequent appointments shall be for a term of four (4) years from the date of expiration of the term for which his predecessor was appointed as provided in subsections (2) and (3) of this section, except that a person appointed to fill a vacancy prior to the expiration of such term shall be appointed in the same manner as provided in KRS 18A.045 and for the remainder of such term.

(2) Upon the expiration of the terms of office of the two (2) board members whose terms expire January 1, 1984, the Governor shall appoint two (2) members from a list of four (4) names submitted by the Legislative Research Commission. Thereafter, upon the expiration of these terms, such terms shall be filled in the same manner as provided in this subsection.

(3) Upon the expiration of the terms of office, of the members whose terms expire December 31, 1982, January 1, 1985, and January 1, 1986, the Governor shall appoint citizens at large who are not associated with state government in any manner. Thereafter upon the expiration of these terms, such terms shall be filled in the same manner as provided in this subsection.

(4) These five (5) appointments to the board shall be subject to confirmation by the Senate. If the Senate is not in session, these five (5) appointments shall be subject to review by the Interim Joint Committee on State Government which shall hold a public hearing and shall transmit its recommendations to the Senate.

(5) The initial election of classified employees to the board shall be held as provided in KRS 18A.0551. The two (2) classified employees initially elected to the board shall serve until July 1, 1986. Subsequent elections shall be for a term of four (4) years from the date of expiration of the term for which his predecessor was elected. If a vacancy occurs prior to the expiration of such term, the board shall fill the vacancy as provided in KRS 18A.060.

(6) If an elected board member accepts an unclassified position with state government, his membership on the board shall be terminated immediately and the vacancy shall be filled as provided in KRS 18A.060.

(7) If an elected board member accepts a classified position in a cabinet employing another board member or if, through no fault of his own, he is placed in that cabinet, his membership on the board shall not be terminated for the remainder of his term.

Effective: April 13, 2010

History: Amended 2010 Ky. Acts ch. 153, sec. 5, effective April 13, 2010. -- Amended 1986 Ky. Acts ch. 494, sec. 11, effective July 15, 1986. -- Created 1982 Ky. Acts ch. 448, sec. 10, effective July 15, 1982.

18A.055 Repealed, 1986.

[Repealed]

18A.0551 Personnel Board elections -- Procedures -- Administrative regulations.

(1) (a) Elections to the board shall be scheduled every four (4) years on or before June 15. The Personnel Cabinet shall provide written or electronic notification of the date of the election to all classified employees on or before April 1.

(b) Upon receipt of the notification provided for by paragraph (a) of this subsection, a classified employee wishing to serve on the board shall notify the board, in writing or electronically, no later than May 15. This notification shall include the candidate's name, address, unique personal identification number, job classification, length of state employment, and name of his or her current employer.

(2) The cabinet shall determine which employees are eligible to vote in the Personnel Board election as of the last calendar day in April.

(3) At least ten (10) working days prior to the election provided for in subsection (1) of this section, the cabinet shall notify each classified employee identified in subsection (2) of this section of the upcoming election and include in the notification a ballot and instructions for voting.

(4) Upon receipt of the ballot, a classified employee wishing to participate in the election provided for in subsection (1) of this section shall:

(a) Vote for no more than two (2) candidates on the ballot, following the cabinet's instructions for voting; and

(b) Submit the ballot by the means and date specified by the cabinet.

(5) The cabinet shall:

(a) Receive, validate, and tabulate all returned votes; and

(b) Transmit the results to the board.

(6) For at least sixty (60) days after the completion of the tabulation provided for by subsection (5) of this section, the election materials shall be public record and open to inspection. However, any personally identifiable information, including home addresses and unique personal identification numbers of the eligible employees and voters, shall be redacted prior to public inspection or disclosure.

(7) The two (2) eligible candidates receiving the greatest number of votes shall be declared the successful candidates. In the event of a tie vote, the tie shall be broken by a coin toss in the presence of the candidates receiving the tie vote.

(8) Successful candidates shall be notified by the board no later than ten (10) working days after the election. Successful candidates shall take office immediately upon notification.

(9) State employees may use state materials or equipment, except for state-paid first- class postage, to vote in the election of classified employees to the board. Except for voting in accordance with this section, any activity related to the election of a classified employee to the board shall not be conducted during working hours.

(10) The secretary may promulgate administrative regulations pursuant to KRS Chapter 13A to implement the provisions of this section.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 35, sec. 4, effective June 29, 2023. -- Amended 2010 Ky. Acts ch. 153, sec. 6, effective April 13, 2010. -- Amended 2002 Ky. Acts ch. 123, sec. 1, effective July 15, 2002. -- Amended 1998 Ky. Acts ch. 154, sec. 18, effective July 15, 1998. -- Amended 1988 Ky. Acts ch. 307, sec. 1, effective July 15, 1988. -- Created 1986 Ky. Acts ch. 494, sec. 12, effective July 15, 1986.

18A.060 Vacancies of elected board members to be filled by board.

(1) If an elected member of the board vacates his seat for any reason other than the normal expiration of his term, the cabinet shall provide written notification of the vacancy to all classified employees within fifteen (15) days of the vacancy.

(2) Classified employees wishing to fill the vacancy shall notify the cabinet within ten

(10) days of the cabinet's notification of the vacancy.

(3) A majority of the remaining members of the board shall make the appointment to fill the vacancy from the list of those employees who have notified the board under subsection (2) of this section.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 19, effective July 15, 1998. -- Created 1982 Ky. Acts ch. 448, sec. 12, effective July 15, 1982.

18A.065 Oaths, testimony, and production of records.

The board, each member of the board, the executive director and any hearing officer of the board and the secretary shall have the power to administer oaths, subpoena witnesses, and compel the production of books and papers pertinent to any investigation or hearing authorized by KRS 18A.005 to 18A.200. Any person who shall fail to appear in response to a subpoena or to answer any question or produce any books or papers pertinent to any such investigation or hearing or who shall knowingly give false testimony therein shall be subject to the provisions of KRS 18A.990.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 20, effective July 15, 1998. -- Repealed, reenacted, and amended as KRS 18A.065, 1982 Ky. Acts ch. 448, sec. 13, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 308, sec. 18. -- Created 1960 Ky. Acts ch. 63, sec. 18. Formerly codified as KRS 18.280.

18A.070 Personnel board -- Organization -- Meeting notices required -- Records to be public.

(1) The board shall annually elect one (1) of its members chairman and one (1) of its members vice chairman.

(2) The board shall meet at such time and place as shall be specified by call of the chairman. At least one (1) meeting shall be held each month.

(3) All meetings shall be open to the public as provided in KRS 61.805 to 61.850. Any head of the department or agency employing an elected member of the board or any other person shall not prohibit him from attending meetings of the board, conducting the business of the board, influence or attempt to influence any decision made by that person, discipline the individual for attending the meeting, or take any other action inimical to the interests of the employee or his family. Any person violating the provisions of this subsection shall be subject to the provisions of KRS 18A.990.

(4) At least seven (7) days in advance of each regular meeting, notice shall be given in writing to each member of the board by the executive director and the executive director shall post a notice in each building owned or leased by the state which houses at least five hundred (500) employees. Four (4) voting members shall constitute a quorum for the transaction of business. The board shall keep records and minutes of its business and official actions.

(5) All records of the board shall be public records and open to public inspection as provided in KRS 61.870 to 61.884.

Effective: July 15, 1988

History: Amended 1988 Ky. Acts ch. 278, sec. 1, effective July 15, 1988. -- Created 1982 Ky. Acts ch. 448, sec. 14, effective July 15, 1982.

18A.075 Duties of Personnel Board.

Subject to the provisions of this chapter and KRS Chapter 13A, it shall be the duty of the board to:

(1) As provided by this chapter, promulgate comprehensive administrative regulations consistent with the provisions of KRS 18A.005 to 18A.200, and with federal standards for the administration of a personnel system in the agencies of the state government receiving federal grants for the purpose of carrying out the provisions of this chapter;

(2) Make investigations, either on petition of a citizen, taxpayer, interested party, or on its own motion, concerning the enforcement and effect of KRS 18A.005 to 18A.200, and to require observance of its provisions and the administrative regulations promulgated pursuant to the provisions of this chapter and KRS Chapter 13A; and to make such investigation as may be requested by the General Assembly or the Governor and to report thereon;

(3) Hear appeals from applicants for positions for which examinations are being or have been conducted, from eligibles on examination registers, from unclassified employees who have been dismissed, demoted, suspended, or reduced in pay or grade for cause, and from officers or employees serving under the personnel systems created by this chapter, as provided by 1986 Acts Ch. 494;

(4) In cooperation with the secretary, promote public understanding of merit principles in government service;

(5) Present, in accordance with the provisions of KRS Chapter 48, budget requests for the support of the personnel board;

(6) Make annual reports to the Governor, the Legislative Research Commission, the secretary of the Personnel Cabinet, and the co-chairs of the Interim Joint Committee on State Government prior to October 1. The board shall make biennial reports to the General Assembly, which reports shall be a public record freely available to those persons interested in obtaining a copy. The board may request state agencies to provide information to assist the board in compiling the reports, which shall include the following:

(a) The number of merit state employees at the beginning and the end of the reporting period;

(b) The total number of grievances filed and mediation requests made by merit employees during the reporting period;

(d) The average amount of time taken to resolve employee complaints during the reporting period, by stage;

(7) Advise the Governor and the secretary with respect to the administration of the personnel system created by this chapter;

(8) Consider and act on such matters as may be referred to the board by the secretary;

(9) Represent the public interest in the improvement of personnel administration in the state service, and advise and assist the secretary in fostering the interest of institutions of learning and of civic, professional, and employee organizations in the improvement of personnel standards in the state service; and

(10) Make a determination, upon receiving notification of proposed classification selection method changes with proper documentation for the necessity for the change from the secretary, on classification selection method changes prior to those changes occurring. Upon receiving a classification selection method change proposal from the secretary, the board shall, at its next regularly scheduled monthly meeting, review and comment on proposed selection method changes. No classification shall have its selection method changed without review and comment from the board.

Effective: April 13, 2010

History: Amended 2010 Ky. Acts ch. 153, sec. 7, effective April 13, 2010. -- Amended 1998 Ky. Acts ch. 154, sec. 21, effective July 15, 1998. -- Amended 1986 Ky. Acts ch. 494, sec. 13, effective July 15, 1986. -- Repealed, reenacted, and amended as KRS 18A.075, 1982 Ky. Acts ch. 448, sec. 15, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 74, Art. II, sec. 9(2); and ch. 308, sec. 10. -- Created 1960 Ky. Acts ch. 63, sec. 6. Formerly codified as KRS 18.170.

18A.0751 Personnel Board -- Regulatory authority.

(1) The board shall promulgate comprehensive administrative regulations for the classified service governing:

(a) Appeals by state employees;

(b) Demotion;

(d) Fines, suspensions, and other disciplinary measures;

(e) Probation, provided that the board may not require an initial probationary period in excess of six (6) months except as provided in subsection (4)(e) of this section and KRS 18A.005;

(f) Promotion;

(g) Reinstatement;

(h) Transfer; and

(i) Employee grievances and complaints.

(2) (a) These administrative regulations shall comply with the provisions of this chapter and KRS Chapter 13A, and shall have the force and effect of law, when approved by the board, after compliance with the provisions of KRS Chapters 13A and 18A and the procedures adopted thereunder;

(b) Administrative regulations promulgated by the board shall not expand or restrict rights granted to, or duties imposed upon, employees and administrative bodies by the provisions of this chapter; and

(c) No administrative body, other than the personnel board, shall promulgate administrative regulations governing the subject matters specified in this section.

(3) Prior to filing an administrative regulation with the Legislative Research Commission, the board shall submit the administrative regulation to the secretary for review:

(a) The secretary shall review the administrative regulation proposed by the board not more than twenty (20) days after its submission to him or her;

(b) Not more than five (5) days after his review, the secretary shall submit his or her recommendations in writing to the board;

(c) The board shall review the recommendations of the secretary and may revise the proposed administrative regulation as it deems necessary; and

(d) After the board has completed the review provided for in this section, it may file the proposed administrative regulation with the Legislative Research Commission pursuant to the provisions of KRS Chapter 13A.

(4) These administrative regulations shall provide:

(a) For the procedures to be utilized by the board in the conduct of hearings by the board, consistent with the provisions of KRS Chapter 13B;

(b) For reduction in rank or grade as provided by this chapter;

(d) For imposition, as disciplinary measures, of a fine of not more than ten (10) working days' pay, or for suspension from the service without pay for no longer than thirty (30) working days and, in accordance with the provisions of KRS 18A.095, for the manner of notification of the employee of the discipline and his or her right of appeal;

(e) No probationary period may exceed twelve (12) months, except as provided in KRS 18A.005. The secretary may recommend an initial probationary period in excess of six (6) months for specific job classifications to the board. This recommendation shall take the form of a proposed administrative regulation that shall be submitted to the board for approval. The subject of the administrative regulation shall be limited to job classifications for which an initial probationary period in excess of six (6) months is required and shall specify:

The job classification for which an initial probationary period in excess of six (6) months is required; and
The specific number of months constituting the initial probationary period for the job classification. No other administrative regulation shall include any provision prescribing an initial probationary period in excess of six (6) months, except as provided in KRS 18A.005. Upon approval by the board of the proposed administrative regulation provided for in this paragraph, the board shall file the regulation with the Legislative Research Commission as provided by KRS Chapter 13A;

(f) For promotions which shall give appropriate consideration to the applicant's qualifications, record of performance, conduct, and seniority. Except as provided by this chapter, vacancies shall be filled by promotion whenever practicable and in the best interest of the service;

(g) For reemployment of laid-off employees in accordance with the provisions of this chapter;

(h) For transfer from a position in one (1) department to a similar position in another department involving similar qualifications, duties, responsibilities, and salary ranges as provided by the provisions of KRS 18A.113;

(i) For establishment of a plan for resolving employee grievances and complaints. This plan shall not restrict rights granted employees by the provisions of this chapter;

(j) For promotion of career employees to positions in the unclassified service without loss of status to the individual employees so promoted, as provided by this chapter; and

(k) For any other administrative regulations not inconsistent with this chapter and KRS Chapter 13A as may be proper and necessary for its enforcement.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 35, sec. 10, effective June 29, 2023. -- Amended 2000 Ky. Acts ch. 91, sec. 2, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 154, sec. 22, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 318, sec. 20, effective July 15, 1996. -- Amended 1988 Ky. Acts ch. 203, sec. 2, effective July 25, 1988. -- Created 1986 Ky. Acts ch. 494, sec. 14, effective July 15, 1986.

18A.080 Personnel Board -- Compensation -- Attendance -- Assessment on executive branch agencies.

(1) (a) Except as provided in KRS 18A.200, members of the board shall receive compensation of one hundred dollars ($100) per diem for each meeting of the board and reimbursement for actual and necessary expenses in accordance with state regulations and standards applicable to state employees.

(b) In addition to payments for attendance at board meetings all board members may also be paid one hundred dollars ($100) for each day spent in the preparation of recommended orders, the review of transcripts or other matters related to appeals before the board.

(c) Any board member missing three (3) consecutive regular meetings shall be deemed to have vacated his office. Replacements to the board shall be made as provided in KRS 18A.050(2) and 18A.060.

(2) Each agency of the executive branch of state government with employees covered by this chapter shall be annually assessed for the amount required for the operation of the Personnel Board. The agency assessment shall be determined by the secretary of the Finance and Administration Cabinet based on the authorized full-time positions of each agency on July 1 of each year of the biennium. The Finance and Administration Cabinet shall collect the assessment.

Effective: April 14, 2026

History: Amended 2026 Ky. Acts ch. 161, sec. 66, effective April 14, 2026. -- Amended 2000 Ky. Acts ch. 91, sec. 3, effective July 14, 2000. -- Created 1982 Ky. Acts ch. 448, sec. 16, effective July 15, 1982.

18A.085 Removal of board members by Governor -- Appeal.

(1) Members of the board may be removed by the Governor for cause after being given a copy of charges against them and an opportunity for an administrative hearing to be conducted in accordance with KRS Chapter 13B.

(2) Any member of the board removed by the Governor may appeal the Governor's final order removing him from the board to the Franklin Circuit Court in accordance with KRS Chapter 13B.

Effective: July 15, 1996

History: Amended 1996 Ky. Acts ch. 318, sec. 21, effective July 15, 1996. -- Created 1982 Ky. Acts ch. 448, sec. 17, effective July 15, 1982.

18A.090 Personnel Board to hire full-time staff -- General counsel may be designated assistant attorney general.

(1) As provided by the budget enacted by the General Assembly and other laws applicable to state personnel, the board shall appoint an executive director who shall be the chief administrative officer of the board and serve as secretary to the board. He shall have proven administrative and managerial experience and familiarity with equal employment opportunity laws and regulations. The board shall appoint other employees it deems necessary in accordance with the provisions of this chapter. The salaries of the executive director and other employees of the board shall be determined by order of the board. The executive director of the board shall prepare the budget request for approval by the board in the form and manner required by applicable law. For the purposes of KRS Chapter 48 the board shall be considered a budget unit.

(2) The board shall appoint a general counsel pursuant to KRS 12.210 to provide legal services for the board. Upon request of the board, the Attorney General may designate the general counsel as an assistant attorney general. The general counsel provided for by this subsection shall not be employed by personal service contract and shall be a full-time employee of the board. The general counsel shall serve as a hearing officer for the board.

Effective: July 15, 1986

History: Amended 1986 Ky. Acts ch. 494, sec. 15, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 111, sec. 22, effective July 13, 1984. -- Created 1982 Ky. Acts ch. 448, sec. 18, effective July 15, 1982.

18A.095 Rights of executive branch employees.

(1) A classified employee with status shall not be dismissed, demoted, suspended without pay, or involuntarily transferred except for cause.

(2) Prior to dismissal, a classified employee with status shall be notified in writing of the intent to dismiss him or her. The notice shall also state:

(a) The specific reasons for dismissal including:

The statutory, regulatory, or policy violation;
The specific action or activity on which the intent to dismiss is based;
The date and place of such action or activity; and
The names of the parties involved;

(b) That the employee has the right to appear personally, or with counsel if he or she has retained counsel, to reply to the appointing authority or his or her designee; and

(c) Whether the employee is placed on administrative leave by the appointing authority with pay upon receiving the intent to dismiss letter prior to the agency's final action.

(3) The Personnel Cabinet shall prescribe and distribute a pretermination form to be completed and forwarded by an employee who wishes to appear before the appointing authority or his or her designee. The form shall be attached to every notice of intent to dismiss and shall contain written instructions explaining:

(a) The right granted an employee under the provisions of this section relating to pretermination hearings; and

(b) The time limits and procedures to be followed by all parties in pretermination hearings.

(4) No later than five (5) working days after receipt of the notice of intent to dismiss, excluding the day he or she receives the notice, the employee may request to appear, personally or with counsel if he or she has retained counsel, to reply to the appointing authority or his or her designee.

(5) Unless agreed to by the appointing authority or his or her designee and the employee, the appearance shall be scheduled within six (6) working days after receipt of an employee's request to appear before the appointing authority or his or her designee, excluding the day his or her request is received.

(6) No later than five (5) working days after the employee appears before the appointing authority or his or her designee, excluding the day of the appearance, the cabinet head or agency or his or her designee shall:

(a) Determine whether to dismiss the employee or to modify or rescind the intent to dismiss; and

(b) Notify the employee in writing of the decision.

(7) If the appointing authority or his or her designee determines that the employee shall be dismissed, the employee shall be notified in writing of:

(a) The effective date of his or her dismissal;

(b) The specific reason for the dismissal, including:

The statutory, regulatory, or policy violation;
The specific action or activity on which the dismissal is based;
The date and place of the action or activity; and
The names of the parties involved; and

(c) That he or she may appeal the dismissal to the board within thirty (30) calendar days after receipt of this notification, excluding the day he or she receives notice.

(8) A classified employee with status who is demoted, suspended without pay, or involuntarily transferred shall be notified in writing of:

(a) The demotion, suspension, or involuntary transfer;

(b) The effective date of the demotion, suspension, or involuntary transfer;

The statutory, regulatory, or policy violation;
The specific action or activity on which the demotion, suspension, or involuntary transfer is based;
The date and place of the action or activity; and
The names of the parties involved; and

(d) That he or she has the right to appeal to the board within thirty (30) calendar days, excluding the day that he or she received notification of the personnel action.

(9) Any unclassified employee who is dismissed, demoted, suspended without pay, or involuntarily transferred for cause may, within thirty (30) calendar days after the dismissal, demotion, suspension, or involuntary transfer, appeal to the board for review thereof.

(10) (a) An employee whose position is reallocated shall be notified in writing by the appointing authority of:

The reallocation or reclassification; and
If the reallocation or reclassification is to a lower grade, his or her right to request reconsideration by the secretary within ten (10) working days of receipt of the notice, excluding the day he or she receives notification.

(b) The employee shall file a written request for reconsideration of the reallocation or reclassification to a lower grade with the secretary in a manner and form prescribed by the secretary and shall be given a reasonable opportunity to be heard by the secretary. The secretary shall make a determination within sixty (60) calendar days after the request has been filed by an employee. The secretary's determination shall be final and shall not be appealable to the Personnel Board.

(11) (a) Any applicant, classified employee, or federally funded time-limited employee may appeal to the board an action alleged to be based on discrimination due to race, color, religion, national origin, sex, disability, age forty (40) and above, or any other category protected under state or federal civil rights laws. Nothing in this section shall be construed to preclude any applicant, classified employee, or unclassified employee from filing with the Kentucky Commission on Human Rights a complaint alleging discrimination on the basis of race, color, religion, national origin, sex, disability, or age in accordance with KRS Chapter 344.

(b) Appeals alleging discrimination shall be filed within thirty (30) calendar days after the alleged discriminatory action occurred.

(12) (a) Any applicant for classified employment under KRS Chapter 18A who has been notified by the Personnel Cabinet that he or she did not meet the minimum qualifications for a position may request reconsideration from the secretary not more than ten (10) calendar days after the notification was sent. The secretary's review and determination of the reconsideration shall be completed within ten (10) calendar days from the receipt of the request for reconsideration. The secretary's determination shall be final and shall not be appealable to the Personnel Board.

(b) Any applicant for employment in a classified position under KRS Chapter 18A may appeal the hiring agency's nonselection based on an alleged violation of appointment and promotion provisions contained in this chapter or administrative regulations promulgated under this chapter to the board. The appeal shall be filed not later than thirty (30) calendar days after the notice of nonselection was mailed or sent electronically.

(13) When an employee who qualifies for a position has his or her name removed from the register, the employee may petition the secretary for the opportunity to be heard by the secretary or his or her designee. The petition shall be delivered to the secretary in writing or electronically no later than ten (10) calendar days after the removal notification has been sent. The secretary's decision shall be final and not appealable to the Personnel Board.

(14) (a) Appeals to the board shall be in writing on an appeal form prescribed by the board. The Personnel Board shall be responsible for the distribution of these forms.

(b) The appeal form shall be attached to any notice of dismissal, demotion, suspension, or involuntary transfer. The appeal form shall instruct the employee to state whether he or she is a classified or unclassified employee, his or her full name, his or her appointing authority, work station address and telephone number, home address and personal telephone number, personal email address, and, if he or she has retained counsel at the time he or she files an appeal, the name, address, and telephone number of his or her attorney.

(c) The form shall also instruct a classified employee to state the action he or she is appealing in a short, plain, concise statement of the facts. The form shall instruct an unclassified employee to make a short, plain, concise statement of the reason for the appeal and the cause given for his or her dismissal, demotion, suspension, or involuntary transfer.

(d) Any appeal form filed by a classified or unclassified employee shall identify the statute, administrative regulation, or policy that was allegedly violated.

(e) Upon receipt of the appeal by the board, the appointing authority and the Personnel Cabinet shall be notified and the board shall schedule a hearing.

(15) All administrative hearings conducted by the board shall be conducted in accordance with KRS Chapter 13B.

(16) (a) The board shall deny a hearing to an employee who has failed to file an appeal within the time prescribed by this section; and to an unclassified employee who has failed to state the reasons for the appeal and the cause for which he or she has been dismissed, demoted, suspended without pay, or involuntarily transferred. The board shall deny any appeal after a preliminary hearing if it lacks jurisdiction to grant relief. The board shall notify the employee of its denial in writing and shall inform the employee of his or her right to appeal the denial under the provisions of KRS 18A.100.

(b) Any investigation by the board of any matter related to an appeal filed by an employee shall be conducted only upon notice to the employee, the employee's counsel, and the appointing authority. All parties to the appeal shall have access to information produced by the investigations and the information shall be presented at the hearing.

(17) Each appeal shall be decided individually, unless otherwise agreed by the parties and the board. The board shall not:

(a) Employ class action procedures; or

(b) Conduct test representative cases.

(18) Board members shall abstain from public comment about a pending or impending proceeding before the board. This shall not prohibit board members from making public statements in the course of their official duties or from explaining for public information the procedures of the board.

(19) An appeal to the board may be heard by the full board or one (1) or more of the following: Its executive director, its general counsel, any nonelected member of the board, or any hearing officer secured by the board pursuant to KRS 13B.030.

(20) (a) If the board finds that the action complained of was taken by the appointing authority in violation of laws prohibiting favor for, or discrimination against, or bias with respect to, his or her political or religious opinions or affiliations or ethnic origin, or in violation of laws prohibiting discrimination because of such individual's sex or age or disability, the appointing authority shall immediately reinstate the employee to his or her former position or a position of like status and pay, without loss of pay for the period of time at issue, or otherwise make the employee whole unless the order is stayed by the board or the court on appeal.

(b) If the board finds that the action complained of was taken without just cause, the board shall order the immediate reinstatement of the employee to his or her former position or a position of like status and pay, without loss of pay for the period of time at issue, or otherwise make the employee whole unless the order is stayed by the board or the court on appeal.

(c) If the board finds that the action taken by the appointing authority was excessive or erroneous in view of all the surrounding circumstances, the board shall direct the appointing authority to modify or rescind the action at issue.

(d) In all other cases, the board shall direct the appointing authority to rescind the action taken or otherwise grant specific relief or dismiss the appeal.

(21) If a final order of the board is appealed, a court may award reasonable attorney fees to an employee who prevails by a final adjudication on the merits as provided by KRS 453.260. This award shall not include attorney fees attributable to the hearing before the board.

(22) When any employee is dismissed and not ordered reinstated after the appeal, the board in its discretion may direct that his or her name be placed on an appropriate reemployment list for employment in any similar position other than the one from which he or she had been removed.

(23) After a final decision has been rendered by the board or court, an employee who prevails in his or her appeal may be credited with the amount of leave time used for time spent at his or her hearing before the board or court. Employees who had an insufficient amount of leave time shall be credited with leave time equal to the amount of time spent at their hearings before the board or court.

(24) If the appointing authority appeals the final order of the board, unless the board rules otherwise, the reinstated employee shall remain in his or her former position, or a position of like status or pay, until the conclusion of the appeals process, at which time the appointing authority shall take action in accordance with the court order.

(25) After a final decision in a contested case has been rendered by the last administrative or judicial body to which the case has been appealed, the board shall make the decision available to the public in electronic format on its website and shall organize the decisions according to the statutory basis for which the appeal was based.

(26) Appeals concerning dismissals of classified employees with status shall take precedence for hearings before the board over all other appeals.

(27) Any classified or unclassified employee as defined in KRS 18A.005 who is not restored to a position pursuant to KRS 61.371 to 61.377, or who is dismissed without cause within one (1) year after reinstatement, may appeal to the Personnel Board. The appeal shall be filed in writing with the executive director of the board not later than thirty (30) days after the notification of the action in question has been mailed or sent electronically.

(28) If an individual received a notice that does not comply with subsection (7)(c), (8)(d), or (14)(b) of this section, or received no written or electronic notification of his or her dismissal, demotion, suspension, or involuntary transfer pursuant to subsection (7) or (8) of this section, he or she shall file his or her appeal to the board within one hundred eighty (180) days of:

(a) Receipt of the written notice, if he or she received a written notice that does not comply with subsection (7)(c), (8)(d), or (14)(b) of this section; or

(b) The alleged act, if he or she did not receive written or electronic notification of the alleged act in question.

(29) If a classified or unclassified employee refuses or fails to cooperate as a witness in an agency, Personnel Cabinet, or board investigation, hearing, proceeding, or inquiry, the employee may be subject to disciplinary action.

(30) Unless otherwise provided by this chapter, the board shall not have jurisdiction over any appeal except as authorized by this section.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 35, sec. 5, effective June 29, 2023. -- Amended 2010 Ky. Acts ch. 153, sec. 8, effective April 13, 2010. -- Amended 2009 Ky. Acts ch. 75, sec. 15, effective June 25, 2009. -- Amended 2007 Ky. Acts ch. 85, sec. 104, effective June 26, 2007. -- Amended 2000 Ky. Acts ch. 501, sec. 2, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 154, sec. 23, effective July 15, 1998. and ch. 425, sec. 2, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 318, sec. 22, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 317, sec. 1, effective July 15, 1994; ch. 405, sec. 4, effective July 15, 1994; and ch. 475, sec. 1, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 202, sec. 1, effective July 14, 1992. -- Amended 1988 Ky. Acts ch. 250, sec. 1, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 494, sec. 16, effective July 15, 1986. -- Repealed, reenacted, and amended as KRS 18A.095, 1982 Ky. Acts ch. 448, sec. 19, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 269, sec. 6, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 86, sec. 9, effective March 29, 1976. -- Amended 1972 Ky. Acts ch. 13, sec. 6. -- Created 1960 Ky. Acts ch. 63, sec. 14. Formerly codified as KRS 18.270.

18A.100 Appeal of final order of the Personnel Board.

(1) Any final order of the board either upholding or invalidating the dismissal, demotion, or suspension of a classified or an unclassified employee may be appealed either by the employee or by the appointing authority.

(2) The party aggrieved may appeal a final order by filing a petition with the clerk of the Franklin Circuit Court in accordance with KRS Chapter 13B.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 35, sec. 11, effective June 29, 2023. -- Amended 1996 Ky. Acts ch. 318, sec. 23, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 475, sec. 2, effective July 15, 1994. -- Repealed, reenacted, and amended as KRS 18A.100, 1982 Ky. Acts ch. 448, sec. 20, effective July 15, 1982. -- Amended 1976 Ky. Acts ch. 62, sec. 13. -- Created 1974 Ky. Acts ch. 147, sec. 1. Formerly codified as KRS 18.272.

18A.105 Compensation, retirement system contributions of employee ordered reinstated without loss of pay.

(1) (a) When a classified or unclassified employee has been finally ordered reinstated by the board without loss of pay, pursuant to the provisions of KRS 18A.095, the executive director of the board shall forward a certified copy of said order to the Personnel Cabinet and the Finance and Administration Cabinet, which shall process proper payment to the employee for the period of suspension, said payment to be made out of the agency's appropriations. If no funds or insufficient funds are available in the agency's appropriations, then payment shall be made out of the "judgments" section of the general fund of the biennial state budget.

(b) Gross moneys which were earned by the employee from other sources during the period of suspension shall be set-off against the gross sum due the employee, to the extent that the moneys were earned in a number of hours comparable to the length of time the employee would have worked in the job from which he was dismissed. The Finance and Administration Cabinet shall by regulation provide an administrative procedure for determining reasonable earnings to be so set off.

(2) (a) Both the employee's and employer's contributions to the Kentucky Employees Retirement System shall be based upon the gross amount due the employee, before set off or deduction, except for set-off caused by earnings on which employee and employer contributions to the Kentucky Employees Retirement System, County Employees Retirement System, State Police Retirement System, or Kentucky Teachers' Retirement System have been paid.

(b) Member and employer contributions paid into the system in which the employee participated after dismissal shall be transferred to the system in which he participated prior to his illegal dismissal. In the event of a difference in member or employer contribution rates between the retirement system under which the member was covered prior to dismissal and the retirement system in which he participated before reinstatement by the board, the member and employer shall pay or receive a refund in order to adjust their respective contribution to the appropriate rate for the system under which he would have participated had he not been dismissed.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 24, effective July 15, 1998. -- Repealed, reenacted, and amended as KRS 18A.105, 1982 Ky. Acts ch. 448, sec. 21, effective July 15, 1982. -- Created 1972 Ky. Acts ch. 13, sec. 7. Formerly codified as KRS 18.275.

18A.110 Personnel secretary -- Regulatory authority -- Resolution of conflicting provisions of law.

(1) The secretary shall promulgate comprehensive administrative regulations for the classified service governing:

(a) Applications and examinations;

(b) Certification and selection of eligibles;

(d) Incentive programs;

(e) Layoffs;

(f) Registers;

(g) Types of appointments;

(h) Attendance; hours of work; compensatory time; annual, court, military, sick, voting, living organ donor, and special leaves of absence, provided that the secretary shall not promulgate administrative regulations that would reduce the rate at which employees may accumulate leave time below the rate effective on December 10, 1985; and

(i) Employee evaluations.

(2) The secretary shall promulgate comprehensive administrative regulations for the unclassified service.

(3) (a) Except as provided by KRS 18A.355, the secretary shall not promulgate administrative regulations that would reduce an employee's salary; and

(b) As provided by KRS 18A.0751(4)(e), the secretary may submit a proposed administrative regulation providing for an initial probationary period in excess of six (6) months to the board for its approval.

(4) The secretary may promulgate administrative regulations to implement state government's affirmative action plan under KRS 18A.138.

(5) (a) The administrative regulations shall comply with the provisions of this chapter and KRS Chapter 13A, and shall have the force and effect of law after compliance with the provisions of KRS Chapters 13A and 18A and the procedures adopted thereunder;

(b) Administrative regulations promulgated by the secretary shall not expand or restrict rights granted to, or duties imposed upon, employees and administrative bodies by the provisions of this chapter; and

(c) No administrative body other than the Personnel Cabinet shall promulgate administrative regulations governing the subject matters specified in this section.

(6) Prior to filing an administrative regulation with the Legislative Research Commission, the secretary shall submit the administrative regulation to the board for review.

(a) The board shall review the administrative regulation proposed by the secretary not less than twenty (20) days after its submission to it;

(b) Not less than five (5) days after its review, the board shall submit its recommendations in writing to the secretary;

(c) The secretary shall review the recommendations of the board and may revise the proposed administrative regulation if he or she deems it necessary; and

(d) After the secretary has completed the review provided for in this section, he or she may file the proposed administrative regulation with the Legislative Research Commission pursuant to the provisions of KRS Chapter 13A.

(7) The administrative regulations shall provide:

(a) For the preparation, maintenance, and revision of a position classification plan for all positions in the classified service, based upon similarity of duties performed and responsibilities assumed, so that the same qualifications may reasonably be required for, and the same schedule of pay may be equitably applied to, all positions in the same class. The secretary shall allocate the position of every employee in the classified service to one (1) of the classes in the plan. The secretary shall reallocate existing positions, after consultation with appointing authorities, when it is determined that they are incorrectly allocated, and there has been no substantial change in duties from those in effect when such positions were last classified. The occupant of a position being reallocated shall continue to serve in the reallocated position with no reduction in salary;

(b) For a pay plan for all employees in the classified service, after consultation with appointing authorities and the state budget director. The plan shall take into account such factors as:

The relative levels of duties and responsibilities of various classes of positions;
Rates paid for comparable positions elsewhere taking into consideration the effect of seniority on such rates; and
The state's financial resources. Amendments to the pay plan shall be made in the same manner. Each employee shall be paid at one (1) of the rates set forth in the pay plan for the class of position in which he or she is employed, provided that the full amount of the annual increment provided for by the provisions of KRS 18A.355, and the full amount of an increment due to a promotion, salary adjustment, reclassification, or reallocation, shall be added to an employee's base salary or wages;

(c) For the advertisement and acceptance of applications for at least five (5) days for those positions to be filled by classified appointment or promotion. The secretary may continue to receive applications and review applicants on a continuous basis long enough to ensure a sufficient number of applicants;

(d) For the rejection of candidates or eligibles who fail to comply with reasonable requirements of the secretary in regard to such factors as age, physical condition, training, and experience, or who have attempted any deception or fraud in connection with an examination;

(e) Except as provided by this chapter, for the appointment of a person whose score is included in the five (5) highest scores earned on the examination;

(f) For annual, sick, and special leaves of absence, with or without pay, or reduced pay, after approval by the Governor as provided by KRS 18A.155(1)(d);

(g) For layoffs, in accordance with the provisions of KRS 18A.113, by reasons of lack of work, abolishment of a position, a material change in duties or organization, or a lack of funds;

(h) For the development and operation of programs to improve the work effectiveness of employees in the state service, including training, whether in- service or compensated educational leave, safety, health, welfare, counseling, recreation, employee relations, and employee mobility without written examination;

(i) For a uniform system of annual employee evaluation for classified employees, with status, that shall be considered in determining eligibility for discretionary salary advancements, promotions, and disciplinary actions. The administrative regulations shall:

Require the secretary to determine the appropriate number of job categories to be evaluated and a method for rating each category;
Provide for periodic informal reviews during the evaluation period which shall be documented on the evaluation form and pertinent comments by either the employee or supervisor may be included;
Establish a procedure for internal dispute resolution with respect to the final evaluation rating;
Permit a classified employee, with status, who receives either of the two

(2) lowest possible evaluation ratings to appeal to the Personnel Board for review after exhausting the internal dispute resolution procedure. The final evaluation shall not include supervisor comments on ratings other than the lowest two (2) ratings;

Require that an employee who receives the highest possible rating shall receive the equivalent of two (2) workdays, not to exceed sixteen (16) hours, credited to his or her annual leave balance. An employee who receives the second highest possible rating shall receive the equivalent of one (1) workday, not to exceed eight (8) hours, credited to his or her annual leave balance; and
Require that an employee who receives the lowest possible evaluation rating shall either be demoted to a position commensurate with the employee's skills and abilities or be terminated; and

(j) For other administrative regulations not inconsistent with this chapter and KRS Chapter 13A, as may be proper and necessary for its enforcement.

(8) For any individual hired or elected to office before January 1, 2015, and paid through the Kentucky Human Resources Information System, the Personnel Cabinet shall not require payroll payments to be made by direct deposit or require the individual to use a web-based program to access his or her salary statement.

(9) To the extent that KRS 16.010 to 16.199, 16.080, and 16.584 and administrative regulations promulgated by the commissioner of the Department of Kentucky State Police under authority granted in KRS Chapter 16 conflict with this section or any administrative regulation promulgated by the secretary pursuant to authority granted in this section, the provisions of KRS Chapter 16 shall prevail.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 35, sec. 6, effective June 29, 2023. -- Amended 2022 Ky. Acts ch. 181, sec. 7, effective April 1, 2023. -- Amended 2020 Ky. Acts ch. 107, sec. 3, effective July 15, 2020. -- Amended 2016 Ky. Acts ch. 109, sec. 10, effective July 15, 2016; and ch. 110, sec. 11, effective July 15, 2016. -- Amended 2015 Ky. Acts ch. 25, sec. 2, effective June 24, 2015. -- Amended 2000 Ky. Acts ch. 501, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 154, sec. 25, effective July 15, 1998; ch. 487, sec. 2, effective July 15, 1998; and ch. 540, sec. 2, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 486, sec. 35, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 309, sec. 1, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 203, sec. 3, effective July 15, 1988; and ch. 414, sec. 1, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 494, sec. 17, effective July 15, 1986. -- Repealed, reenacted, and amended as KRS 18A.110, 1982 Ky. Acts ch. 448. sec. 22, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 269, sec. 4, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 86, sec. 5, effective March 29, 1976. -- Amended 1974 Ky. Acts ch. 110, sec. 1; ch. 162, sec. 5; and ch. 308, sec. 12. -- Created 1960 Ky. Acts ch. 63, sec. 9. Formerly codified as KRS 18.210.

Legislative Research Commission Note (7/15/2016). This statute was amended in 2016 Ky. Acts ch. 109, sec. 10 and ch. 110, sec. 11. 2016 Ky. Acts ch. 110, sec. 15 provided that ch. 110 takes precedence over ch. 109. Chapter 110 was also the later- passed bill. Therefore, 2016 Ky. Acts ch. 110, sec. 11 has been codified and 2016 Ky. Acts ch. 109, sec. 10 has not.

Legislative Research Commission Note (7/15/98). This section was amended by 1998 Ky. Acts chs. 154, 487, and 540. Where these Acts are not in conflict, they have been codified together. Where a conflict exists between Acts chs. 154 and 540, Acts ch. 540, which was last enacted by the General Assembly, prevails under KRS 446.250.

18A.111 Probationary periods for classified service -- Initial and promotional -- Probation and preference provisions for appointments prior to a gubernational inauguration.

(1) Except when appointed to a job classification with an initial probationary period in excess of six (6) months, and except as provided in KRS 18A.005 and this section, an employee shall serve a six (6) months probationary period when he or she is initially appointed to the classified service. An employee may be separated from his or her position, reduced in class or rank, or replaced on the eligible list during this initial probationary period and shall not have a right to appeal, except as provided by KRS 18A.095. The employee may be placed on an eligible list but shall not be certified to the agency from which he or she was separated unless that agency so requests. Unless the appointing authority notifies the employee prior to the end of the initial probationary period that he or she is separated, the employee shall be deemed to have served satisfactorily and shall acquire status in the classified service.

(2) An employee who satisfactorily completes the initial probationary period for the position to which he or she was initially appointed to the classified service shall be granted status and may not be demoted, disciplined, dismissed, or otherwise penalized, except as provided by the provisions of this chapter.

(3) An employee ordered reinstated by the board shall not be required to serve a probationary period unless the board rules otherwise.

(4) An employee with status, who has been promoted, shall serve a promotional probationary period of six (6) months, except for those employees granted leave in excess of twenty (20) consecutive work days during this period. Such probationary periods shall be extended as prescribed in KRS 18A.005. During this period, he or she shall retain the rights and privileges granted by the provisions of this chapter to status employees.

(5) An employee with status may request that he or she be reverted to a position in his or her former class at any time during the promotional probationary period.

(6) A laid-off employee who accepts a bona fide written offer of appointment to a position shall not be required to serve an initial probationary period. He or she shall be an employee with status and shall have all rights and privileges granted employees with status under the provisions of this chapter.

(7) At any time in the eighteen (18) months prior to a gubernatorial inauguration, a person who is appointed to a position in the classified service and who previously held a position that was unclassified under KRS 18A.115(1) shall:

(a) Be required to serve an initial probationary period of twenty-four (24) months regardless of whether he or she previously had status in the classified service; and

(b) Not be entitled to any preference in hiring or reemployment, notwithstanding KRS 18A.130 and 18A.135.

(8) Notification to an employee on initial or promotional probation of the reason the probationary employment has been terminated by the appointing authority shall not confer a right to appeal to the board.

Effective: July 15, 2026

History: Amended 2026 Ky. Acts ch. 178, sec. 4, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 153, sec. 9, effective April 13, 2010. -- Amended 2002 Ky. Acts ch. 122, sec. 3, effective July 15, 2002. -- Amended 1998 Ky. Acts ch. 154, sec. 26, effective July 15, 1998. -- Amended 1988 Ky. Acts ch. 203, sec. 4, effective July 15, 1988. -- Created 1986 Ky. Acts ch. 494, sec. 2, effective July 15, 1986.

Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 178, sec. 4, which amended this statute, contains a reference to a "position that was unclassified under subsection (1) of Section 4 of this Act," though subsection (1) of Section 5 of that Act [KRS 18A.115] is the section of the Act that lists positions that are unclassified. This manifest clerical or typographical error has been corrected in codification under KRS 7.136.

18A.112 Repealed, 2000.

[Repealed]

18A.113 Layoff, furlough, and reduction-in-hours rules -- Notice -- Reemployment -- Administrative regulations.

(1) As used in this section:

(a) "Furlough" or "reduction in hours" means the temporary reduction of hours an employee is scheduled to work by the appointing authority within a pay period; and

(b) "Layoff" means discharge of employment subject to the rights contained in this section.

(2) An appointing authority shall have the authority to layoff or furlough employees or reduce hours of employment for any of the following reasons:

(a) Lack of funds or budgetary constraints;

(b) A reduction in spending authorization;

(d) Abolishment of a position;

(e) Efficiency; or

(f) Other material change in duties or organization.

(3) The appointing authority shall determine the classifications affected, the number of employees laid off in each classification, and each county to which a layoff applies. In the same department or office, county, and job classification, interim and probationary employees shall be laid off before full-time or part-time employees with status. For purposes of layoff, "probationary employee" shall not include an employee with status serving a promotional probation.

(4) The provisions of this section shall not apply to federally funded time-limited employees.

(5) The secretary of the Personnel Cabinet shall approve all actions taken under subsection (2) of this section and no such layoff, furlough, or reduction of hours may begin until the approval has been granted. The appointing authority, with the approval of the secretary, shall have the authority to determine the extent, effective dates, and length of any action taken under subsection (2) of this section.

(6) In determining a layoff, the appointing authority shall consider all employees under the same appointing authority, within the classification affected, and within the county affected. Consideration shall be given to the following relevant factors and in this order:

(a) Job performance evaluations;

(b) Education, training, and experience;

(d) Seniority.

(7) Any classified employee with status whose position is subject to layoff, furlough, or reduction of hours shall be provided written notice containing the reason for the action at least thirty (30) days in advance of the effective date of the action.

(8) (a) Any classified employee with status who is laid off shall be eligible to apply as a reemployment applicant for the job classification from which he or she was laid off, in the cabinet from which he or she was laid off for a period of two (2) years. A reemployment applicant shall be hired before any applicant except another reemployment applicant with greater seniority who is on the same register.

(b) A reemployment applicant shall not be removed from any register except as provided in KRS 18A.032.

(c) When a reemployment applicant is removed from a register, he or she shall be notified in writing or electronically and shall have the right to appeal to the board within thirty (30) calendar days after receipt of the notification, excluding the day he or she receives notice.

(d) A reemployment applicant who accepts any classified position, or who retires through the Kentucky Employees Retirement System or Kentucky Teachers' Retirement System, shall cease to have eligibility rights as a reemployment applicant.

(9) With the approval of the secretary, the Personnel Cabinet may place employees subject to a reduction in workforce in a different position.

(10) The secretary shall promulgate administrative regulations pursuant to KRS Chapter 13A to fully implement the provisions of this section.

(11) A layoff, furlough, or reduction of hours implemented in accordance with this section shall not be appealable to the Personnel Board.

Effective: June 29, 2023

History: Repealed and reenacted 2023 Ky. Acts ch. 35, sec. 7, effective June 29, 2023. -- Amended 2004 Ky. Acts ch. 127, sec. 2, effective July 13, 2004. -- Amended 1998 Ky. Acts ch. 154, sec. 28, effective July 15, 1998; and ch. 540, sec. 3, effective July 15, 1998. -- Created 1986 Ky. Acts ch. 494, sec. 4, effective July 15, 1986.

18A.1131 Repealed, 2023.

[Repealed]

18A.1132 Repealed, 2023.

[Repealed]

18A.115 Employment exempted from classified service -- Reversion rights of career employees promoted outside classified service -- Transfer of employees to Kentucky Community and Technical College System -- Change of personnel system for employees of Department for Technical Education and Department for Adult Education and Literacy -- Change of personnel system for some employees of Eastern Kentucky University.

(1) The classified service to which KRS 18A.005 to 18A.200 shall apply shall comprise all positions in the state service now existing or hereafter established, except the following:

(a) The General Assembly and employees of the General Assembly, including the employees of the Legislative Research Commission;

(b) Officers elected by popular vote and persons appointed to fill vacancies in elective offices;

(d) Officers and employees on the staff of the Governor, the Lieutenant Governor, the Office of the Secretary of the Governor's Cabinet, and the Office of Program Administration;

(e) Cabinet secretaries, commissioners, office heads, and the administrative heads of all boards and commissions, including the executive director of Kentucky Educational Television;

(f) Employees of Kentucky Educational Television who have been determined to be exempt from classified service by the Kentucky Authority for Educational Television, which shall have sole authority over such exempt employees for employment, dismissal, and setting of compensation, up to the maximum established for the executive director and his or her principal assistants;

(g) One (1) principal assistant or deputy for each person exempted under subsection (1)(e) of this section;

(h) One (1) additional principal assistant or deputy as may be necessary for making and carrying out policy for each person exempted under subsection (1)(e) of this section in those instances in which the nature of the functions, size, or complexity of the unit involved are such that the secretary approves such an addition on petition of the relevant cabinet secretary or department head and such other principal assistants, deputies, or other major assistants as may be necessary for making and carrying out policy for each person exempted under subsection (1)(e) of this section in those instances in which the nature of the functions, size, or complexity of the unit involved are such that the board may approve such an addition or additions on petition of the department head approved by the secretary. Effective August 1, 2010:

All positions approved under this paragraph prior to August 1, 2010, shall be abolished effective December 31, 2010, unless reapproved under subparagraph 2. of this paragraph; and
A position approved under this paragraph on or after August 1, 2010, shall be approved for a period of five (5) years, after which time the position shall be abolished unless reapproved under this subparagraph for an additional five (5) year period;

(i) Division directors subject to the provisions of KRS 18A.170. Division directors in the classified service as of January 1, 1980, shall remain in the classified service;

(j) Physicians employed as such;

(k) One (1) private secretary for each person exempted under subsection (1)(e), (g), and (h) of this section;

(l) The judicial department, referees, receivers, jurors, and notaries public;

(m) Officers and members of the staffs of state universities and colleges and student employees of such institutions; officers and employees of the Teachers' Retirement System; and officers, teachers, and employees of local boards of education;

(n) Patients or inmates employed in state institutions;

(o) Persons employed in a professional or scientific capacity to make or conduct a temporary or special inquiry, investigation, or examination on behalf of the General Assembly, or a committee thereof, or by authority of the Governor, and persons employed by state agencies for a specified, limited period to provide professional, technical, scientific, or artistic services under the provisions of KRS 45A.690 to 45A.725;

(p) Interim employees;

(q) Officers and members of the state militia;

(r) Department of Kentucky State Police troopers;

(s) University or college engineering students or other students employed part- time or part-year by the state through special personnel recruitment programs; provided that while so employed such aides shall be under contract to work full-time for the state after graduation for a period of time approved by the commissioner or shall be participants in a cooperative education program approved by the commissioner;

(t) Superintendents of state mental institutions, including heads of centers for individuals with an intellectual disability, and penal and correctional institutions as referred to in KRS 196.180(2);

(u) Staff members of the Kentucky Historical Society, if they are hired in accordance with KRS 171.311;

(v) County and Commonwealth's attorneys and their respective appointees;

(w) Chief district engineers and the state highway engineer;

(x) Employees of the Kentucky Horse Racing and Gaming Corporation;

(y) Employees of the Kentucky Peace Corps;

(z) Employees of the Council on Postsecondary Education;

(aa) Executive director of the Commonwealth Office of Technology;

(ab) Employees of Serve Kentucky;

(ac) Persons employed in certified teaching positions at the Kentucky School for the Blind and the Kentucky School for the Deaf;

(ad) Federally funded time-limited employees as defined in KRS 18A.005; and

(ae) Employees of the Department of Agriculture who are employed to support the Agricultural Development Board and the Kentucky Agricultural Finance Corporation.

(2) Nothing in KRS 18A.005 to 18A.200 is intended, or shall be construed, to alter or amend the provisions of KRS 150.022 and 150.061.

(3) Nothing in KRS 18A.005 to 18A.200 is intended or shall be construed to affect any nonmanagement, nonpolicy-making position required to be included in the classified service as a prerequisite to the grant of federal funds to a state agency.

(4) Career employees within the classified service promoted to positions exempted from classified service shall, upon termination of their employment in the exempted service, revert to a position in that class in the agency from which they were terminated if a vacancy in that class exists. If no such vacancy exists, they shall be considered for employment in any vacant position for which they were qualified pursuant to KRS 18A.130 and 18A.135, but shall be subject to the limitations specified in KRS 18A.111(7).

(5) Nothing in KRS 18A.005 to 18A.200 shall be construed as precluding appointing officers from filling unclassified positions in the manner in which positions in the classified service are filled except as otherwise provided in KRS 18A.005 to 18A.200.

(6) The positions of employees who are transferred, effective July 1, 1998, from the Cabinet for Workforce Development to the Kentucky Community and Technical College System shall be abolished and the employees' names removed from the roster of state employees. Employees that are transferred, effective July 1, 1998, to the Kentucky Community and Technical College System under KRS Chapter 164 shall have the same benefits and rights as they had under KRS Chapter 18A and have under KRS 164.5805; however, they shall have no guaranteed reemployment rights in the KRS Chapter 151B or KRS Chapter 18A personnel systems. An employee who seeks reemployment in a state position under KRS Chapter 151B or KRS Chapter 18A shall have years of service in the Kentucky Community and Technical College System counted towards years of experience for calculating benefits and compensation.

(7) On August 15, 2000, all certified and equivalent personnel, all unclassified personnel, and all certified and equivalent and unclassified vacant positions in the Department for Adult Education and Literacy shall be transferred from the personnel system under KRS Chapter 151B to the personnel system under KRS Chapter 18A. The positions shall be deleted from the KRS Chapter 151B personnel system. All records shall be transferred including accumulated annual leave, sick leave, compensatory time, and service credit for each affected employee. The personnel officers who administer the personnel systems under KRS Chapter 151B and KRS Chapter 18A shall exercise the necessary administrative procedures to effect the change in personnel authority. No certified or equivalent employee in the Department for Adult Education and Literacy shall suffer any penalty in the transfer.

(8) On August 15, 2000, secretaries and assistants attached to policymaking positions in the Department for Technical Education and the Department for Adult Education and Literacy shall be transferred from the personnel system under KRS Chapter 151B to the personnel system under KRS Chapter 18A. The positions shall be deleted from the KRS Chapter 151B system. All records shall be transferred including accumulated annual leave, sick leave, compensatory time, and service credit for each affected employee. No employee shall suffer any penalty in the transfer.

(9) On May 1, 2017, all contract employees of Eastern Kentucky University who are engaged in providing instructional and support services to the Department of Criminal Justice Training shall be transferred to the personnel system under KRS Chapter 18A. All records shall be transferred, including accumulated annual leave, sick leave, compensatory time, and service credit for each affected employee. The personnel officers who administer the personnel systems for Eastern Kentucky University and under KRS Chapter 18A shall exercise the necessary administrative procedures to effect the change in personnel authority. No employee shall suffer any penalty in the transfer.

(10) On July 1, 2024, all employees of the Louisville and Jefferson County Public Defender Corporation shall be transferred to the personnel system under KRS Chapter 18A. Records of each employee's job classification, compensation, dates of employment, dates of professional licensure, probationary status, accumulated leave balances by category, months of service, and any other information necessary under KRS Chapter 18A shall be transferred. The personnel officers who administer the personnel systems for the Louisville and Jefferson County Public Defender Corporation and under KRS Chapter 18A shall exercise the necessary administrative procedures to effect the change in the personnel authority. No employee shall suffer any penalty in the transfer.

Effective: July 15, 2026

History: Amended 2026 Ky. Acts ch. 178, sec. 5, effective July 15, 2026. -- Amended 2025 Ky. Acts ch. 124, sec. 32, effective July 1, 2025. -- Amended 2024 Ky. Acts ch. 143, sec. 3, effective April 9, 2024; and ch. 171, sec. 38, effective July 1, 2024. -- Amended 2021 Ky. Acts ch. 12, sec. 4, effective March 12, 2021; and ch. 26, sec. 2, effective June 29, 2021. -- Amended 2018 Ky. Acts ch. 114, sec. 2, effective July 14, 2018. -- Amended 2017 Ky. Acts ch. 58, sec. 3, effective March 21, 2017. -- Amended 2012 Ky. Acts ch. 146, sec. 5, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 25, effective July 15, 2010; and ch. 153, sec. 10, effective April 13, 2010. -- Amended 2007 Ky. Acts ch. 85, sec. 105, effective June 26, 2007. -- Amended 2006 Ky. Acts ch. 208, sec. 1, effective July 12, 2006. -- Amended 2005 Ky. Acts ch. 85, sec. 43, effective June 20, 2005. -- Amended 2004 Ky. Acts ch. 127, sec. 3, effective July 13, 2004; and ch. 191, sec. 51, effective July 13, 2004. -- Amended 2001 Ky. Acts ch. 137, sec. 4, effective June 21, 2001. -- Amended 2000 Ky. Acts ch. 203, sec. 6, effective July 14, 2000; and ch. 526, sec. 16, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 540, sec. 4, effective July 15, 1998; and ch. 353, sec. 7, effective July 15, 1998. -- Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 31, effective May 30, 1997. -- Amended 1992 Ky. Acts ch. 100, sec. 11, effective July 14, 1992. -- Amended 1990 Ky. Acts ch 159, sec. 1, effective March 30, 1990; and ch. 496, sec. 25, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 494, sec. 18, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 253, sec. 1, effective July 13, 1984; and ch. 350, sec. 10, effective July 13, 1984. -- Repealed, reenacted, and amended as KRS 18A.115, 1982 Ky. Acts ch. 448, sec. 23, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 98, sec. 3, effective July 15, 1980; and ch. 132, sec. 2, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 155, sec. 18, effective June 17, 1978; and ch. 391, sec. 1, effective June 17, 1978. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 17, sec. 18, effective January 1, 1978. -- Amended 1974 Ky. Acts ch. 74, Art. VI, sec. 32; ch. 162, sec. 3; and ch. 308, sec. 7. -- Amended 1972 Ky. Acts ch. 13, sec. 2. -- Amended 1970 Ky. Acts ch. 278, sec. 1. -- Created 1960 Ky. Acts ch. 63, sec. 4. Formerly codified as KRS 18.140.

Legislative Research Commission Note (4/9/2024). 2024 Ky. Acts ch. 143, sec. 5, reads as follows: "This Act [which amended this statute] shall apply retroactively to an employee of the Louisville and Jefferson County Public Defender Corporation who was a member of its staff on September 30, 2023, and is subsequently appointed to a leadership or supervisory position within the Department of Public Advocacy between October 1, 2023, and July 1, 2024."

18A.120 Basis for hiring for classified service -- Exception -- Credit for sick leave.

(1) Except as hereinafter provided, all hiring for the classified service shall be on the basis of competitive examinations and certification by the cabinet in accordance with the provisions of KRS 18A.005 to 18A.200.

(2) As of February 29, 1976, when an entity and its employees, either initially or subsequently, is brought into the state service, all employees of that entity required to be covered under the classified service shall be required to meet the minimum qualifications for the positions to which they are assigned and to satisfactorily complete a probationary period, except that in the discretion of the secretary they shall not be required to take an examination. The secretary shall equitably assign such employees within the salary range of an appropriate pay grade. Upon the recommendation of the appointing authority, the secretary may authorize the credit of the amount of sick leave the employee had prior to being brought into state service. After completion of the initial probationary period employees employed under this statute shall be credited with the amount of service they had with this previous entity for accumulation of annual leave and other purposes of this chapter.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 31, effective July 15, 1998. -- Amended 1988 Ky. Acts ch. 247, sec. 2, effective July 15, 1988. -- Repealed, reenacted, and amended as KRS 18A.120, 1982 Ky. Acts ch. 448, sec. 24, effective July 15, 1982. - - Amended 1976 Ky. Acts ch. 86. sec. 8, effective March 29, 1976. -- Amended 1974 Ky. Acts ch. 308, sec. 16. -- Amended 1966 Ky. Acts ch. 255, sec. 283. -- Created 1960 Ky. Acts ch. 63, sec. 12. Formerly codified as KRS 18.250.

18A.125 Control through payroll certification.

(1) No disbursing or auditing officer of the Commonwealth shall make or approve or take any part in making or approving any payment for personal service to any person holding a position in the classified or unclassified service unless the payroll voucher or account of such pay bears the certification of the secretary, or of his authorized agent, that the persons named therein have been appointed and employed in accordance with the provisions of KRS 18A.005 to 18A.200 and the rules, regulations, and orders thereunder. The secretary may for proper cause or upon order of the board withhold certification from an entire payroll or from any specific item or items thereon. The secretary may, however, provide that certification of payrolls may be made once every six (6) months, and such certification shall remain in effect except in the case of any officer or employee whose status has changed after the last certification of his payroll. In the latter case no voucher for payment of salary to such employee shall be issued or payment of salary made without the further certification of the secretary.

(2) Any citizen, including public officers, may maintain a suit to restrain a disbursing officer from making any payment in contravention of any provision of KRS 18A.005 to 18A.200, or of any rule, regulation or order thereunder. Any sum paid contrary to any provision of KRS 18A.005 to 18A.200 or of any rule, regulation, or order thereunder may be recovered in an action maintained by any citizen, from any officer who made, approved, or authorized such payment or who signed or countersigned a voucher, payroll check or warrant for such payment, or from the sureties on the official bond of any such officer. All moneys recovered in any such action shall be paid into the Treasury.

(3) Any person appointed or employed in contravention of any provision of KRS 18A.005 to 18A.200 or of any rule, regulation, or order thereunder, who performs service for which he is not paid, may maintain an action against the officer or officers, employee or employees, who purported so to appoint or employ him, to recover the agreed pay for such services, or the reasonable value thereof if no pay was agreed upon. No such officer or employee shall be reimbursed by the Commonwealth at any time for any sum paid to such person on account of such services.

(4) If the secretary wrongfully withholds certification of the payroll voucher or account of any employee, such employee may maintain a proceeding in the Circuit Court in the county in which he resides to compel the secretary to certify such payroll voucher or account.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 32, effective July 15, 1998. -- Repealed, reenacted, and amended as KRS 18A.125, 1982 Ky. Acts ch. 448, sec. 25, effective July 15, 1982. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 6, effective January 2, 1978. -- Amended 1974 Ky. Acts ch. 308, sec. 17. -- Created 1960 Ky. Acts ch. 63, sec. 13. Formerly codified as KRS 18.260.

18A.130 Reemployment of career employee terminated on or after January 1, 1980.

(1) A career employee whose employment is terminated on or after January 1, 1980, by lay-off, dismissal, other than for cause, and, in the case of an unclassified management employee, resignation other than resignation in lieu of dismissal for cause, shall, upon his written request, be reemployed or placed on reemployment lists in accordance with this section and KRS 18A.135.

(2) If the career employee has previously attained status in a position in the classified service, he shall revert to a position in that class in the agency from which he was terminated if a vacancy in that class exists. If no such vacancy exists, he shall be considered for employment in any vacant position for which he is qualified pursuant to the reemployment procedures.

(3) If the career employee has not previously attained status in the classified service or if he has attained status but no vacancy exists in a position to which subsection (2) of this section applies, the employee shall be placed on reemployment lists for any positions for which he is qualified.

Effective: July 15, 1982

History: Repealed, reenacted, and amended as KRS 18A.130, 1982 Ky. Acts ch. 448, sec. 26, effective July 15, 1982. -- Created 1980 Ky. Acts ch. 5, sec. 2, effective July 15, 1980. Formerly codified as KRS 18.216.

18A.135 Reemployment of career employees.

(1) Any career employee who has been laid-off or dismissed, other than for cause, and, in the case of an unclassified management employee, resignation other than resignation in lieu of dismissal for cause, shall automatically be placed on the reemployment list for the class from which he was terminated. If a career employee wishes to be on the reemployment list for other classes of positions for which he is qualified and passes the appropriate selection method, he shall notify the cabinet in writing.

(2) If more than one (1) career employee requests to be placed on the reemployment list for any job classification, the cabinet shall list the names of such career employees in the order of their seniority.

(3) No vacancy may be filled from a competitive register until all career employees on the reemployment list for that class of position have denied employment in that class. An appointing authority may refuse to reemploy a qualified employee on the reemployment list only for cause. The secretary and the employee shall be furnished with a written statement of the specific reasons for the refusal within ten

(10) days following the appointing authority's refusal. The employee may appeal the appointing authority's action in accordance with KRS 18A.095 and 18A.100.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 33, effective July 15, 1998. -- Repealed, reenacted, and amended as KRS 18A.135, 1982 Ky. Acts ch. 448, sec. 27, effective July 15, 1982. -- Created 1980 Ky. Acts ch. 5, sec. 3, effective July 15, 1980. Formerly codified as KRS 18.217.

18A.138 Affirmative action plan for state government.

(1) To ensure equal employment opportunity for all Kentuckians regardless of race, color, religion, national origin, disability, sex, or age, the affirmative action plan dated July 1, 1984, confirmed as part of Executive Order 84-549 continued in force by Executive Order 88-100, and incorporated herein by reference, shall be the official affirmative action plan for Kentucky state government. Copies of the plan, as well as the plans developed by individual agencies pursuant to the state plan, shall be maintained on file and made available for inspection in the Office of the Secretary of Personnel.

(2) Every program cabinet, department, and agency of state government shall comply with the provisions of the affirmative action plan.

(3) Equal employment opportunities shall be an integral part of each cabinet, department, and agency program, and any program evaluation shall include an assessment of equal opportunity performance.

(4) The secretary of personnel shall be responsible for the implementation of the plan. In fulfilling his duties, he shall:

(a) Require all cabinets, departments, and agencies of state government to develop programs consistent with the plan;

(b) Provide any technical assistance he may deem appropriate to accomplish the purposes of the plan;

(c) Provide, through the Personnel Cabinet, an annual analysis to ensure that persons protected by antidiscrimination laws are not adversely affected by examination and selection procedures;

(d) Provide for validation of examination procedures;

(e) Provide for procedures to monitor appointments and salary adjustments to ensure that standards are uniformly applied so as to prevent salary disparity;

(f) Report to the Governor semiannually on actions taken pursuant to the plan; and

(g) Review the plan on an annual basis and recommend necessary changes in consultation with the appropriate agencies.

(5) The secretary of personnel may also:

(a) Promulgate administrative regulations in accordance with this chapter and KRS Chapter 13A to implement the affirmative action plan;

(b) Implement programs to ensure that reasonable accommodations exist for persons with disabilities to allow them better access to all employment opportunities in state government; and

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 34, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 405, sec. 5, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 309, sec. 2, effective July 13, 1990. -- Created 1988 Ky. Acts ch. 127, sec. 1, effective July 15, 1988.

18A.140 Prohibition against discrimination and political activities.

(1) No person shall be appointed or promoted to, or demoted or dismissed from, any position in the classified service, or in any way favored or discriminated against with respect to employment in the classified services because of his political or religious opinions, affiliations, ethnic origin, sex, race or disability. No person over the age of forty (40) shall be discriminated against because of age.

(2) No person shall use or promise to use, directly or indirectly, any official authority or influence, whether possessed or anticipated, to secure or attempt to secure for any person an appointment or advantage in appointment to a position in the classified service, or an increase in pay or other advantage in employment in any such position, for the purpose of influencing the vote or political action of any person.

(3) No employee in the classified service or member of the board or its executive director or secretary shall, directly or indirectly, pay or promise to pay any assessment for political purposes, or solicit or take any part in soliciting for any political party, or solicit or take any part in soliciting any political assessment, subscription, contribution, or service. No person shall solicit any political assessment, subscription, contribution, or service of any employee in the classified service.

(4) No employee in the classified service or member of the board or its executive director shall be a member of any national, state, or local committee of a political party, or an officer or member of a committee of a partisan political club, or a candidate for nomination or election to any paid partisan public office, or shall take part in the management or affairs of any political party or in any political campaign, except to exercise his right as a citizen privately to express his opinion and to cast his vote. Officers or employees of the classified service may be candidates for and occupy an elected office if the election is on a nonpartisan basis, the officers or employees have complied with the requirements of KRS 61.080, and the duties of the elective office do not interfere with, or create any conflicts of interest with, the state duties of the officers or employees in the classified service. An employee shall give notice to his or her appointing authority of his or her intent to run for elective office upon filing to run for the office.

Effective: April 13, 2010

History: Amended 2010 Ky. Acts ch. 153, sec. 11, effective April 13, 2010. -- Amended 1998 Ky. Acts ch. 154, sec. 35, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 405, sec. 6, effective July 15, 1994. -- Amended 1986 Ky. Acts ch. 494, sec. 19, effective July 15, 1986. -- Repealed, reenacted, and amended as KRS 18A.140, 1982 Ky. Acts ch. 448, sec. 28, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 132, sec. 5, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 269, sec. 7, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 86, sec. 10, effective March 29, 1976; and ch. 331, sec. 1, effective June 19, 1976. -- Created 1960 Ky. Acts ch. 63, sec. 19. Formerly codified as KRS 18.310.

Legislative Research Commission Note. Although this section is included in 1986 Acts ch. 494, sec. 19, the change in this section was deleted by conference committee amendment.

18A.145 Other acts prohibited.

(1) No person shall make any false statement, certificate, mark, rating, or report with regard to any test, certification, or appointment made under any provision of KRS 18A.005 to 18A.200 or in any manner commit or attempt to commit any fraud preventing the impartial execution of KRS 18A.005 to 18A.200 and the rules, regulations or orders thereunder.

(2) No person shall, directly or indirectly, give, render, pay, offer, solicit, or accept any money, service, or other valuable consideration for or on account of any appointment, proposed appointment, promotion, or proposed promotion to, or any advantage in, a position in the classified service.

(3) No employee of the cabinet, examiner, or other person shall defeat, deceive, or obstruct any person in his right to examination, eligibility, certification, or appointment under KRS 18A.005 to 18A.200, or furnish to any person any special or secret information for the purpose of affecting the rights or prospects of any person with respect to employment in the classified service.

(4) No person shall make any false statement, record, or report regarding hours, days, or other time worked by any employee. No person shall falsely prepare any payroll document or record relating to the pay for any employee.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 36, effective July 15, 1998. -- Repealed, reenacted, and amended as KRS 18.145, 1982 Ky. Acts ch. 448, sec. 29, effective July 15, 1982. -- Amended 1976 Ky. Acts ch. 86, sec. 11, effective March 29, 1976. - - Amended 1974 Ky. Acts ch. 308, sec. 20. -- Created 1960 Ky. Acts ch. 63, sec. 20. Formerly codified as KRS 18.320.

18A.146 Felony conviction grounds for disciplinary action.

(1) As used in this section, "state employee" means a person regularly appointed to a position in the state service, whether classified or unclassified, for which he is compensated on a full-time or part-time basis.

(2) Subject to the provisions of KRS 18A.095, any state employee who is convicted of a felony may be subject to any disciplinary action deemed appropriate, including dismissal from the state service.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 203, sec. 5, effective July 15, 1988.

18A.150 Interview preference for current service members, honorably or generally discharged former service members, and members' spouses, surviving spouses, and dependent parents -- Required interviews.

(1) Interview preference to a competitive classified position for which he or she meets the minimum qualifications established for the job classification shall apply to:

(a) Any person who has served in the Armed Forces of the United States, Reserves, or National Guard who was discharged or released therefrom with an honorable discharge, discharge under honorable conditions, or a general discharge, or his or her spouse or unmarried widow or widower;

(b) The unmarried widow or widower of any military personnel who died while in the Armed Forces of the United States, Reserves, or National Guard, unless circumstances surrounding the death was cause for other than honorable or general discharge separation; and

(2) A parent totally or partially dependent on a person who has served in the Armed Forces of the United States, Reserves, or National Guard and lost his or her life under honorable conditions while on active duty or active duty for training purposes or became permanently and totally disabled as a result of a service-connected disability shall have interview preference to a competitive classified position for which he or she meets the minimum qualifications established for the job classification.

(3) (a) Applicants entitled to interview preference as set forth in this section shall be clearly identified.

(b) 1. If the number of individuals identified in paragraph (a) of this subsection is less than five (5), the employing agency shall offer an interview to all individuals identified in paragraph (a) of this subsection.

If the number of individuals identified in paragraph (a) of this subsection equals or exceeds five (5), the employing agency shall offer an interview to no fewer than five (5).

(4) Interview preference shall only apply to candidates seeking initial appointment to the classified service.

Effective: June 27, 2019

History: Amended 2019 Ky. Acts ch. 109, sec. 1, effective June 27, 2019. -- Amended 2017 Ky. Acts ch. 42, sec. 1, effective June 29, 2017. -- Amended 2010 Ky. Acts ch. 4, sec. 1, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 154, sec. 37, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 180, sec. 2, effective July 15, 1994. -- Amended 1988 Ky. Acts ch. 129, sec. 2, effective July 15, 1988. -- Amended 1984 Ky. Acts ch. 109, sec. 1, effective July 13, 1984. -- Repealed, reenacted, and amended as KRS 18A.150, 1982 Ky. Acts ch. 448, sec. 30, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 132, sec. 4, effective July 15, 1980. -- Amended 1976 Ky. Acts ch. 86, sec. 6, effective March 29, 1976. -- Amended 1974 Ky. Acts ch. 162, sec. 6; and ch. 386, sec. 1. -- Created 1970 Ky. Acts ch. 28, sec. 1. Formerly codified as KRS 18.212.

18A.155 Rules for unclassified employees.

(1) The secretary shall prepare and submit proposed administrative regulations to the Governor for employees in unclassified positions enumerated in KRS 18A.115(1)(g), (h), (i), (j), (k), (p), (t), and (u). Such administrative regulations shall become effective after approval by the Governor and promulgation in accordance with KRS Chapters 12 and 13A. The administrative regulations shall provide:

(a) For the preparation, maintenance, and revision of a position classification plan for all aforementioned positions in the unclassified service, based upon similarity of duties performed and responsibilities assumed, so that the same qualifications may reasonably be required for and the same schedule of pay may be equitably applied to all positions in the same class. After such classification plan has been approved by the Governor, the secretary shall allocate the positions of every employee in the unclassified service to one (1) of the classes of the plan. Any employee affected by the allocation of a position to a class shall, after filing with the secretary a written request for reconsideration thereof in such manner and form as the secretary may prescribe, be given a reasonable opportunity to be heard thereon by the secretary;

(b) For a pay plan for all aforementioned employees in the unclassified service, after consultation with appointing authorities and the state budget director, and taking into account such factors as:

The relative levels of duties and responsibilities of various classes of positions;
Rates paid for comparable positions elsewhere; and
The state's financial resources. Such pay plan shall become effective only after it has been approved by the Governor after submission to him by the secretary. Amendments to the pay plan may be made in the same manner. Each employee shall be paid at one (1) of the rates set forth in the pay plan for the position in which he is employed;

(c) For transfer from a position in one (1) department to a similar position in another department involving similar qualifications, duties, responsibilities, and salary ranges;

(d) For annual, sick, and special leaves of absence, with or without pay, or reduced pay, after approval by the Governor as provided in subsection (1) of this section;

(e) For the development and operation of programs to improve the work effectiveness and morale of employees in the unclassified service, including training, safety, health, welfare, counseling, recreation, and employee relations; and

(f) For such other rules and administrative regulations not inconsistent with KRS 18A.005 to 18A.200, as may be proper and necessary for its enforcement.

(2) Nothing herein shall be construed to preclude the optional use of administrative regulations promulgated under this section on behalf of employees enumerated in KRS 18A.115(1)(a), (b), (d), (e), (p), (u), and (w) and on behalf of members of state boards and commissions who work on a full-time, salaried basis.

(3) Months of service earned as a contract employee of the Kentucky Department of Education shall be recognized and credited as service credit for calculating years of service in any public agency position held subsequent to the employment by contract. The provisions of this subsection are retroactive for employees hired in a public agency position on or after January 1, 1997.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 38, effective July 15, 1998; ch. 487, sec. 5, effective July 15, 1998; and ch. 540, sec. 5, effective July 15, 1998. -- Amended 1986 Ky. Acts ch. 494, sec. 20, effective July 15, 1986. -- Amended 1982 Ky. Acts ch. 52, sec. 2; and repealed, reenacted, and amended as KRS 18A.155, ch. 448, sec. 31, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 269, sec. 5. -- Amended 1976 Ky. Acts ch. 86, sec. 7, effective March 29, 1976. -- Amended 1974 Ky. Acts ch. 162, sec. 7; and ch. 308, sec. 13. -- Created 1960 Ky. Acts ch. 63, sec. 9. Formerly codified as KRS 18.220.

Legislative Research Commission Note (7/15/98). This section was amended by 1998 Ky. Acts chs. 154, 487, and 540 which do not appear to be in conflict and have been codified together.

18A.160 Use of public buildings, property, and facilities.

(1) All office space, property, and equipment including, but not limited to, desks, office supplies, typewriters, machinery, and implements utilized at hearings and in recording and processing transcripts and other work of the board, heretofore used by the board, shall become the property of the board.

(2) All officers and employees of the Commonwealth and of all its municipalities and political subdivisions shall allow the cabinet and the board the reasonable use of public buildings under their control, and furnish heat, light, and furniture for any examination, hearing, or investigation authorized by KRS 18A.005 to 18A.200. The cabinet and the board, as appropriate, shall pay to a municipality or political subdivision the reasonable cost of any such facilities furnished by it.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 39, effective July 15, 1998. -- Repealed, reenacted, and amended as KRS 18A.160, 1982 Ky. Acts ch. 448, sec. 32, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 308, sec. 14. -- Created 1960 Ky. Acts ch. 63, sec. 10. Formerly codified as KRS 18.230.

18A.165 Administration of KRS 18A.005 to 18A.200.

All officers and employees of the Commonwealth shall comply with, and aid in all proper ways in carrying out, the provisions of KRS 18A.005 to 18A.200 and the rules, regulations, and orders of the board thereunder. All officers and employees shall furnish any records or information pertaining to the administration of KRS 18A.005 to 18A.200 which the secretary or the board may request. The secretary or the board may require the Attorney General to institute and maintain such legal action as the secretary or the board may consider necessary or appropriate to secure compliance with KRS 18A.005 to 18A.200 and the rules and orders thereunder.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 40, effective July 15, 1998; and ch. 487, sec. 6, effective July 15, 1998. -- Repealed, reenacted. and amended as KRS 18A.165, 1982 Ky. Acts ch. 448, sec. 33, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 308, sec. 14. -- Amended 1966 Ky. Acts ch. 255, sec. 23. -- Created 1960 Ky. Acts ch. 63, sec. 11. Formerly codified as KRS 18.240.

Legislative Research Commission Note (7/15/98). This section was amended by 1998 Ky. Acts chs. 154 and 487. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 487, which was last enacted by the General Assembly, prevails under KRS 446.250.

18A.170 Certification of division directors who do not make policy.

It is further provided that the responsible departmental, board, commission or agency head shall at the time at which he elects to come under the provisions of KRS 18A.005 to 18A.200, certify to the board the positions of those division directors or heads under their jurisdiction whose duties are nonpolicy making together with a sufficient statement of their duties to enable the board to determine whether or not, as a matter of fact, such duties are nonpolicy making in their nature. He shall, at any time subsequent to coming under the provisions of KRS 18A.005 to 18A.200 certify to the board additional division directors or heads whose duties are nonpolicy making. At the time of certification notice thereof shall be given to the interested division director or head in the form of a copy of the statement certifying the duties of his office. The board may conduct such hearings as it may deem necessary, and shall conduct hearings pursuant to the administrative provisions of KRS 18A.095 in the event of a difference of opinion between the certifying officer and the interested division director or head, before entering its findings of fact and an order either classifying or denying classification to such position. Either the certifying officer or the division director or head may appeal the findings of fact and the final order of the board by initiating action in the Franklin Circuit Court pursuant to the provisions of KRS 418.040 et seq.

Effective: July 15, 1982

History: Repealed, reenacted. and amended as KRS 18A.170, 1982 Ky. Acts ch. 448, sec. 34, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 308, sec. 8. -- Created 1960 Ky. Acts ch. 63, sec. 4(b). Formerly codified as KRS 18.150.

18A.175 Evaluation of duties of division directors or heads -- Procedure when duties have become policy making.

The responsible departmental, board, commission or agency head shall periodically evaluate the duties of those division directors or heads placed under the classified service pursuant to the provisions of KRS 18A.170, and shall determine whether the duties of such directors or heads have become policy making in their nature. If it is determined that the duties of such directors and heads are policy making, the responsible agency head shall certify that fact to the board. At the time of certification, notice thereof shall be given to the interested division director or head in a form of a copy of the statement certifying the policy making duties of his office. The board may conduct such hearings as it may deem necessary, and shall conduct hearings pursuant to the administrative provisions of KRS 18A.095 in the event of a difference of opinion between the certifying officer and the interested division director or head, before entering its findings of fact and an order either removing the position from the classified service or retaining it within the classified service. Either the certifying officer or the division director or head may appeal the findings of fact and the final order of the board by initiating action in the Franklin Circuit Court pursuant to the provisions of KRS Chapter 418.

Effective: July 15, 1982

History: Repealed, reenacted, and amended as KRS 18A.175, 1982 Ky. Acts ch. 448, sec. 35, effective July 15, 1982. -- Created 1976 Ky. Acts ch. 6, sec. 3, effective March 3, 1976. Formerly codified as KRS 18.150.

18A.180 Extension of system to other governmental units.

(1) Subject to the approval of the board, the secretary may enter into agreements with any municipality or other political subdivision of the Commonwealth to furnish services and facilities of the cabinet to the municipality or political subdivision in the administration of its personnel on merit principles. Any such agreement shall provide for the reimbursement to the cabinet, under contract, of the reasonable cost of the services and facilities furnished, as determined by the secretary. All municipalities and political subdivisions of the Commonwealth are hereby authorized to enter into these agreements.

(2) The secretary may cooperate with the governmental agencies of other jurisdictions charged with personnel administration in conducting joint tests and establishing joint lists from which eligibles shall be certified for appointment in accordance with the provisions of KRS 18A.005 to 18A.200.

(3) The secretary may, upon the request of the secretary of the Cabinet for Health and Family Services and upon the approval of the board, furnish merit system services to "local" departments of health.

Effective: June 20, 2005

History: Amended 2005 Ky. Acts ch. 99, sec. 96, effective June 20, 2005. -- Amended 1998 Ky. Acts ch. 154, sec. 41, effective July 15, 1998; and ch. 426, sec. 78, effective July 15, 1998. -- Repealed, reenacted, and amended as KRS 18A.180, 1982 Ky. Acts ch. 448, sec. 36, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 162, sec. 8; and ch. 308, sec. 19. -- Created 1960 Ky. Acts ch. 63, sec. 16. Formerly codified as KRS 18.300.

18A.185 Service as elected official deemed full-time employment for specified purpose.

For the purpose of any regulation issued under KRS 18A.110 or 18A.155 governing entitlement to annual leave days, sick leave days or the accumulation of such leave days, any period of service as an elected state official, including but not limited to service in the General Assembly, by any officer or employee to whom such regulation applies shall be considered to have been full-time employment in the state service.

Effective: July 15, 1982

History: Repealed, reenacted, and amended as KRS 18A.185, 1982 Ky. Acts ch. 448, sec. 37, effective July 15, 1982. -- Created 1980 Ky. Acts ch. 180, sec. 1, effective July 15, 1980. Formerly codified as KRS 18.211.

18A.190 Holidays for state personnel -- Military spouses to receive paid deployment and return days off.

(1) State offices shall be closed and state employees shall be given a holiday on the following days:

(a) The first day of January plus one (1) extra day;

(b) The third Monday in January;

(d) The last Monday in May;

(e) The fourth day of July;

(f) The first Monday in September;

(g) The eleventh day of November;

(h) Presidential election day as required under KRS 2.190;

(i) The fourth Thursday in November plus one (1) extra day; and

(j) The twenty-fifth day of December plus one (1) extra day.

(2) When any of the days enumerated in subsection (1) falls on a Saturday, the preceding Friday shall be observed as the holiday, and when any of the days enumerated in subsection (1) falls on a Sunday, the following Monday shall be observed as the holiday. When one (1) extra day is mentioned in paragraphs (a), (i) and (j) of subsection (1), the Governor shall designate the extra day.

(3) Any state employee who is the spouse of a member of the United States Armed Forces, including a member of a state National Guard or a Reserve component on federal active duty, shall receive, at the discretion of the state employee, one (1) day off, with pay, from work when the member is deployed and one (1) day off, with pay, from work when the member returns from deployment.

(4) The holidays set out in this section are in addition to vacation leave and other benefits of state employees.

Effective: April 25, 2006

History: Amended 2006 Ky. Acts ch. 252, Pt. XXVIII, sec. 8, effective April 25, 2006. -- Amended 1998 Ky. Acts ch. 576, sec. 1, effective July 15, 1998. -- Amended 1990 Ky. Acts ch. 25, sec. 1, effective July 13, 1990. -- Repealed, reenacted, and amended as KRS 18A.190, 1982 Ky. Acts ch. 448, sec. 38, effective July 15, 1982. -- Created 1972 Ky. Acts ch. 289, sec. 1. Formerly codified as KRS 18.350.

18A.194 Living Organ Donor Leave Program.

(1) As used in this section:

(a) "Human organ" means any part of a human intestine, kidney, liver, lung, or pancreas;

(b) "Living donor" means a full-time employee of the executive, judicial, or legislative branch of the Commonwealth of Kentucky who is absent from work due to medical reasons associated with donating a human organ or bone marrow; and

(c) 1. "Living organ donor leave" means a paid leave of absence provided to a living donor for time off work from the donation of a human organ or bone marrow and the recovery time associated with the donation; and

"Living organ donor leave" does not include any other form of paid leave that has been granted by the living donor's employer.

(2) The Commonwealth of Kentucky Living Organ Donor Leave Program is created. A living donor may request to receive living organ donor leave for donating a human organ or bone marrow.

(3) Before being approved to receive any amount of living organ donor leave, the living donor shall submit verification of the human organ or bone marrow donation procedure to his or her employer.

(4) Once approved, a living donor shall be granted living organ donor leave in an amount of:

(a) Two hundred forty (240) hours for each human organ donation; and

(b) Forty (40) hours for each bone marrow donation.

(5) A living donor may be approved to receive living organ donor leave each time the living donor donates a human organ or bone marrow.

(6) A living donor shall not be required to use compensatory time, sick leave, or annual leave before being eligible to receive living organ donor leave.

(7) While a living donor is on living organ donor leave, he or she shall be deemed a state employee and shall receive the same treatment with respect to salary, wages, and employee benefits.

(8) For purposes of determining seniority, pay or pay advancement, performance awards, and the receipt of any benefit that may be affected by a leave of absence, the service of the living donor shall be considered uninterrupted by the leave of absence.

(9) The secretary of the Personnel Cabinet shall promulgate administrative regulations in accordance with KRS Chapter 13A to implement the provisions of this section.

Effective: July 15, 2020

History: Created 2020 Ky. Acts ch. 107, sec. 1, effective July 15, 2020.

18A.195 Compensatory time -- Payment upon leaving state service.

(1) A state employee who is authorized to work one (1) or more hours in excess of the prescribed hours of duty shall be granted compensatory leave on an hour-for-hour basis. Upon the written request of an employee who is not exempt from the provisions of the Federal Fair Labor Standards Act, 29 U.S.C. sec. 201 et seq., an appointing authority may grant compensatory time, in lieu of overtime pay, at the rate of one and one-half (1.5) hours for each hour the employee is authorized to work in excess of forty (40) hours in a work week. An employee who is transferred or otherwise changed from the jurisdiction of one agency to another shall retain his compensatory leave in the receiving agency.

(2) An employee in a position listed in KRS 18A.115(1)(d), (e), (f), (g), (h), (i), or (k) shall not be eligible to receive any level of block payment for compensatory leave hours, except as provided in subsection (3) of this section.

(3) Any employee who leaves state service shall be paid for the balance of unused compensatory time not to exceed two hundred forty (240) hours.

Effective: April 13, 2010

History: Amended 2010 Ky. Acts ch. 153, sec. 12, effective April 13, 2010. -- Amended 2000 Ky. Acts ch. 495, sec. 4, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 180, sec. 3, effective July 15, 1994. -- Repealed, reenacted, and amended as KRS 18A.195, 1982 Ky. Acts ch. 448, sec. 39, effective July 15, 1982. - - Amended 1978 Ky. Acts ch. 269, sec. 9, effective June 17, 1978. -- Created 1972 Ky. Acts ch. 46, sec. 1. Formerly codified as KRS 18.360.

18A.196 Definitions for KRS 18A.197.

As used in KRS 18A.197 unless the context requires otherwise:

(1) "Employee" means any employee of the Commonwealth of Kentucky who is entitled to accrue sick leave and for whom accurate leave records are maintained; and

(2) "State agency" or "agency" means any agency of the executive, legislative or judicial branch of the state government.

Effective: July 13, 1990

History: Created 1990 Ky. Acts ch. 483, sec. 1, effective July 13, 1990.

18A.197 Sick-leave sharing program.

(1) The Commonwealth of Kentucky sick leave sharing program is created. An employee who has accrued a sick leave balance of more than seventy-five (75) hours may request that the appointing authority of the agency for which the employee works makes available for transfer a specified amount of his or her sick leave balance to another named employee authorized to receive leave under subsection (2) of this section. The employee may not request a transfer of an amount of leave that would result in reducing his or her sick leave balance to less than seventy-five (75) hours.

(2) An appointing authority, with the approval of the secretary of personnel, may permit an employee of the agency to receive leave under this section if:

(a) The employee or a member of his or her immediate family suffers from a medically certified illness, injury, impairment, or physical or mental condition which has caused, or is likely to cause, the employee to go on leave for at least ten (10) consecutive working days;

(b) The employee's need for absence and use of leave are certified by a licensed practicing physician or advanced practice registered nurse;

(d) The employee has complied with administrative regulations governing the use of sick leave.

(3) The appointing authority, with the approval of the secretary of personnel, shall determine the amount of leave, if any, which an employee within his or her agency may receive under subsection (2) of this section. Transfers of leave shall not exceed the amount requested by the recipient.

(4) Leave may be transferred from an employee of one (1) agency to an employee within the same agency. With the approval of the secretary of personnel and of the appointing authorities of both agencies, leave may be transferred from an employee of one (1) agency to an employee of another state agency. The Personnel Cabinet shall maintain records of leave transferred between employees and the utilization of transferred leave.

(5) While an employee is on leave transferred under this section, he or she shall be deemed a state employee and shall receive the same treatment with respect to salary, wages and employee benefits.

(6) All salary and wage payments made to an employee while on leave transferred under this section shall be made by the agency employing the person receiving the leave.

(7) Any leave transferred under this section which remains unused shall be returned to the employees who transferred the leave when the appointing authority finds that the leave is no longer needed and will not be needed at a future time in connection with the illness or injury for which the leave was transferred to an employee in his agency.

(8) No employee shall directly or indirectly intimidate, threaten, or coerce, or attempt to intimidate, threaten, or coerce any other employee for the purpose of interfering with the employee's right to voluntarily contribute leave when authorized under this section. For the purpose of this subsection, "intimidate, threaten, or coerce" shall include, without being limited to, the promise to confer or the conferring of any benefit or effecting or threatening to effect any reprisal.

(9) The secretary of the Personnel Cabinet shall promulgate procedural administrative regulations to implement the provisions of this section.

Effective: July 15, 2010

History: Amended 2010 Ky. Acts ch. 85, sec. 68, effective July 15, 2010. -- Amended 2000 Ky. Acts ch. 97, sec. 3, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 154, sec. 42, effective July 15, 1998. -- Created 1990 Ky. Acts ch. 483, sec. 2, effective July 13, 1990.

18A.200 Per diem salaries for state officers or employees serving on boards or commissions prohibited during regular working hours -- Reimbursement of expenses authorized.

(1) No state officer or employee who is required by statute or regulation to serve on any board, commission or other body in an official capacity shall receive a per diem salary for the attendance of meetings or performance of services during regular working hours.

(2) Any state officer or employee who is required by statute or regulation or who is elected or appointed to serve on any board, commission or other body in an official capacity shall receive reimbursement for actual and necessary expenses in accordance with state regulations and standards.

Effective: July 15, 1982

History: Repealed, reenacted, and amended as KRS 18A.200, 1982 Ky. Acts ch. 448, sec. 40, effective July 15, 1982. -- Created 1978 Ky. Acts ch. 154, sec. 4, effective June 17, 1978. Formerly codified as KRS 18.370.

18A.201 Transportation Engineering Assistant I experience requirements.

Beginning on July 12, 2006, the requirement of two (2) years of experience related to one (1) or more transportation engineering programs for the job classification of Transportation Engineering Assistant I shall not apply as an experience requirement for the classification. Any applicant who has obtained a high school diploma or received a High School Equivalency Diploma shall be deemed to have met the educational requirements necessary for the Transportation Engineering Assistant I classification and shall be allowed to take the relevant written examination for the classification.

Effective:June 29, 2017

History: Amended 2017 Ky. Acts ch. 63, sec. 6, effective June 29, 2017. -- Created 2006 Ky. Acts ch. 131, sec. 1, effective July 12, 2006.

18A.202 Work-related incentive programs for state employees.

(1) The secretary is authorized to install and implement by administrative regulation work-related incentive programs for state employees. Such programs may include, but need not be limited to, an employee suggestion system whereby employees in the classified service and employees falling under KRS Chapter 16 may be recognized and rewarded for submitting suggestions that result in the improvement of state service or in the realization of financial savings by the state. Such programs may provide that when an employee suggestion has been adopted and resulted in a financial savings to the state, the employee who submitted the suggestion may be compensated for his service through a cash bonus in an amount to the lesser of ten percent (10%) of the amount saved or two thousand five hundred dollars ($2,500).

(2) Nothing in this section shall be construed to allow KRS Chapter 16 employees to collect any fees or rewards for performance of acts in the line of duty as prohibited in KRS 16.110.

Effective: June 26, 2007

History: Amended 2007 Ky. Acts ch. 139, sec. 7, effective June 26, 2007. -- Amended 1998 Ky. Acts ch. 154, sec. 43, effective July 15, 1998. -- Amended 1986 Ky. Acts ch. 494, sec. 21, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 111, sec. 23, effective July 13, 1984. -- Created 1982 Ky. Acts ch. 332, sec. 1, effective July 15, 1982.

18A.203 Annual-leave sharing program.

(1) The Commonwealth of Kentucky annual leave sharing program is created. An employee who has accrued an annual leave balance of more than seventy-five (75) hours may request that the appointing authority of the agency for which the employee works makes available for transfer a specified amount of his or her annual leave balance to another named employee authorized to receive leave under subsection (2) of this section. The employee may not request a transfer of an amount of leave that would result in reducing his or her annual leave balance to less than seventy-five (75) hours.

(2) An appointing authority, with the approval of the secretary of personnel, may permit an employee of the agency to receive leave under this section if:

(a) The employee suffers from a catastrophic loss to his or her personal property, due to either a natural disaster or fire, that either has caused or will likely cause the employee to go on leave for at least ten (10) consecutive working days;

(b) The employee has exhausted his or her accumulated annual leave and compensatory leave balances; and

(3) The appointing authority, with the approval of the secretary of personnel, shall determine the amount of leave, if any, that an employee within his or her agency may receive under subsection (2) of this section. Transfers of leave shall not exceed the amount requested by the recipient.

(5) While an employee is on leave transferred under this section, he or she shall be deemed a state employee and shall receive the same treatment with respect to salary, wages, and employee benefits.

(6) All salary and wage payments made to an employee while on leave transferred under this section shall be made by the agency employing the person receiving the leave.

(7) Any leave transferred under this section that remains unused shall be returned to the employees who transferred the leave when the appointing authority finds that the leave is no longer needed and will not be needed at a future time in connection with the catastrophic loss for which the leave was transferred to an employee in his or her agency.

(9) The secretary of the Personnel Cabinet shall promulgate procedural administrative regulations to implement the provisions of this section.

Effective: July 14, 2000

History: Created 2000 Ky. Acts ch. 97, sec. 1, effective July 14, 2000.

18A.204 Waiver of educational requirement in Highway Equipment Operator series for employees hired before July 1, 1999.

The requirement of a high school diploma or a High School Equivalency Diploma in the Highway Equipment Operator series shall not apply to employees hired prior to July 1, 1999.

Effective:June 29, 2017

History: Amended 2017 Ky. Acts ch. 63, sec. 7, effective June 29, 2017. -- Created 2000 Ky. Acts ch. 501, sec. 4, effective July 14, 2000.

Life Insurance Life Insurance

18A.205 Life insurance for public employees and certain retirees -- Definitions.

(1) The secretary of the Finance and Administration Cabinet, upon the recommendation of the secretary, may procure from one (1) or more life insurance companies, authorized to do business in this state, a policy or policies of group life insurance insuring the lives of all or any class or classes of public employees. The policy or policies shall be approved by the commissioner of insurance and may contain such provisions as the commissioner of insurance approves whether or not otherwise permitted by the insurance laws. It is intended that life insurance may be made available for public employees, except that the procuring is permissive.

(2) (a) As used in KRS 18A.205 to 18A.215, "public employee" shall mean a person who:

Is regularly employed by a public employer; and
Is also:

a. A contributing member of any one (1) of the state-administered retirement systems;

b. A retiree of a state-administered retirement system who is employed in a regular full-time position for purposes of retirement coverage, but who is not eligible to contribute to one

(1) of the systems administered by Kentucky Retirement Systems or County Employees Retirement System pursuant to KRS 61.637(17) or 78.5540(4);

c. An individual participating in an optional retirement plan authorized by KRS 161.567; or

d. An individual eligible to participate in a retirement plan established by an employer who ceases participating in the Kentucky Employees Retirement System pursuant to KRS 61.522 whose employees participated in the life insurance plans administered by the Personnel Cabinet prior to the employer's effective cessation date in the Kentucky Employees Retirement System.

(b) Notwithstanding the definition of "public employee" in this subsection, any federally funded time-limited employee may receive insurance coverage.

(3) As used in this section and KRS 18A.210, "public employer" shall mean the following employers, if the employer has opted to participate in the state-sponsored group life insurance program:

(a) Any department, office, board, agency, commission, authority, or branch of state government;

(b) A public postsecondary educational institution;

(c) Any department, office, board, agency, commission, authority, or branch of a city, urban-county, charter county, county, unified local government, or consolidated local government; or

(d) Any certified or classified employee or elected member of a local board of education.

(4) As used in KRS 18A.205 to 18A.225, "premiums" shall mean premiums to be paid on any type of insurance authorized under KRS 18A.205 to 18A.225.

Effective:April 1, 2021

History: Amended 2021 Ky. Acts ch. 102, sec. 39, effective April 1, 2021. -- Amended 2020 Ky. Acts ch. 79, sec. 14, effective April 1, 2021. -- Amended 2019 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 4, effective July 24, 2019. -- Amended 2018 Ky. Acts ch. 80, sec. 1, effective July 14, 2018. -- Amended 2011 Ky. Acts ch. 52, sec. 1, effective June 8, 2011. -- Amended 2010 Ky. Acts ch. 24, sec. 26, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 154, sec. 44, effective July 15, 1998. -- Amended 1984 Ky. Acts ch. 23, sec. 6, effective July 13, 1984. -- Repealed, reenacted, and amended as KRS 18A.410, 1982 Ky. Acts ch. 448, sec. 41, effective July 15, 1982. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 35, sec. 1. -- Amended 1976 Ky. Acts ch. 86, sec. 12. -- Amended 1974 Ky. Acts ch. 74, Art. II, sec. 9(2). -- Amended 1968 Ky. Acts ch. 211, sec. 1. -- Created 1962 Ky. Acts ch. 225, sec. 1. Formerly codified as KRS 18.410.

18A.210 Payment of premiums.

The premiums may be paid by the policyholder:

(1) Wholly from funds contributed by the insured public employee, by payroll deduction or otherwise;

(2) Wholly from funds contributed by the public employer; or

(3) Partly from each. No payment of premium by the public employer shall constitute compensation to an insured public employee for the purposes of any statute fixing or limiting the compensation of such an employee; any premium or other expense incurred by the public employer shall be considered a proper cost of administration.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 80, sec. 2, effective July 14, 2018. -- Repealed and reenacted as KRS 18A.210, 1982 Ky. Acts ch. 448, sec. 42, effective July 15, 1982. -- Created 1962 Ky. Acts ch. 225, sec. 2. Formerly codified as KRS 18.420.

18A.215 Provisions authorized.

The policy or policies may also provide accidental death and dismemberment insurance and may contain such provisions with respect to the class or classes of public employees covered, amounts of insurance for designated classes or groups of public employees, terms of eligibility, continuation of insurance after retirement, and such other provisions as the commissioner of insurance may approve.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 80, sec. 3, effective July 14, 2018. -- Amended 2010 Ky. Acts ch. 24, sec. 27, effective July 15, 2010. -- Repealed and reenacted as KRS 18A.215, 1982 Ky. Acts ch. 443, sec. 42, effective July 15, 1982. -- Created 1962 Ky. Acts ch. 225, sec. 3. Formerly codified as KRS 18.430.

18A.220 Authority of secretary.

The secretary of the Finance and Administration Cabinet is authorized to perform all acts necessary or advisable for the purpose of contracting for and maintaining insurance under the provisions of KRS 18A.205 to 18A.225.

Effective: June 21, 2001

History: Amended 2001 Ky. Acts ch. 164, sec. 2, effective June 21, 2001. -- Amended 1998 Ky. Acts ch. 82, sec. 3, effective July 15, 1998. -- Amended 1988 Ky. Acts ch. 5, sec. 6, effective July 15, 1988. -- Repealed, reenacted, and amended as KRS 18A.220, 1982 Ky. Acts ch. 448, sec. 44, effective July 15, 1982. -- Created 1962 Ky. Acts ch. 225, sec. 4. Formerly codified as KRS 18.440.

Health Coverage Health Coverage

18A.225 Health care insurance coverage -- Requirements of prospective carriers --

Analysis of carrier coverage data -- Agency's termination of participation -- Provision of amount of employer contribution -- Lapse of excess flexible spending account funds -- Advisory Committee of State Health Insurance Subscribers -- No abortion coverage -- Appeal of formulary change -- Retiree's participation -- Mail-order drug option coverage -- Nondiscrimination against pharmacy in geographic coverage area -- Hearing aid coverage for minors -- Coverage for diagnosis and treatment of autism spectrum disorders -- Amino acid-based elemental formula coverage -- Access to certain services in contiguous counties -- Study of bid variation -- Regional rating bid scenario -- Optometric coverage -- Standards for provider participation -- Special enrollment period for pregnancy. (Effective until January 1, 2027)

(1) (a) The term "employee" for purposes of this section means:

Any person, including an elected public official, who is regularly employed by any department, office, board, agency, or branch of state government; or by a public postsecondary educational institution; or by any city, urban-county, charter county, county, or consolidated local government, whose legislative body has opted to participate in the state- sponsored health insurance program pursuant to KRS 79.080; and who is either a contributing member to any one (1) of the retirement systems administered by the state, including but not limited to the Kentucky Retirement Systems, County Employees Retirement System, Kentucky Teachers' Retirement System, the Legislators' Retirement Plan, or the Judicial Retirement Plan; or is receiving a contractual contribution from the state toward a retirement plan; or, in the case of a public postsecondary education institution, is an individual participating in an optional retirement plan authorized by KRS 161.567; or is eligible to participate in a retirement plan established by an employer who ceases participating in the Kentucky Employees Retirement System pursuant to KRS 61.522 whose employees participated in the health insurance plans administered by the Personnel Cabinet prior to the employer's effective cessation date in the Kentucky Employees Retirement System;
Any certified or classified employee of a local board of education or a public charter school as defined in KRS 160.1590;
Any elected member of a local board of education;
Any person who is a present or future recipient of a retirement allowance from the Kentucky Retirement Systems, County Employees Retirement System, Kentucky Teachers' Retirement System, the Legislators' Retirement Plan, the Judicial Retirement Plan, or the Kentucky Community and Technical College System's optional retirement plan authorized by KRS 161.567, except that a person who is receiving a retirement allowance and who is age sixty-five (65) or older shall not be included, with the exception of persons covered under KRS 61.702(2)(b)3. and 78.5536(2)(b)3., unless he or she is actively employed pursuant to subparagraph 1. of this paragraph; and
Any eligible dependents and beneficiaries of participating employees and retirees who are entitled to participate in the state-sponsored health insurance program;

(b) The term "health benefit plan" for the purposes of this section means a health benefit plan as defined in KRS 304.17A-005;

(d) The term "managed care plan" for the purposes of this section means a managed care plan as defined in KRS 304.17A-500.

(2) (a) The secretary of the Finance and Administration Cabinet, upon the recommendation of the secretary of the Personnel Cabinet, shall procure, in compliance with the provisions of KRS 45A.080, 45A.085, and 45A.090, from one (1) or more insurers authorized to do business in this state, a group health benefit plan that may include but not be limited to health maintenance organization (HMO), preferred provider organization (PPO), point of service (POS), and exclusive provider organization (EPO) benefit plans encompassing all or any class or classes of employees. With the exception of employers governed by the provisions of KRS Chapters 16, 18A, and 151B, all employers of any class of employees or former employees shall enter into a contract with the Personnel Cabinet prior to including that group in the state health insurance group. The contracts shall include but not be limited to designating the entity responsible for filing any federal forms, adoption of policies required for proper plan administration, acceptance of the contractual provisions with health insurance carriers or third-party administrators, and adoption of the payment and reimbursement methods necessary for efficient administration of the health insurance program. Health insurance coverage provided to state employees under this section shall, at a minimum, contain the same benefits as provided under Kentucky Kare Standard as of January 1, 1994, and shall include a mail-order drug option as provided in subsection

(13) of this section. All employees and other persons for whom the health care coverage is provided or made available shall annually be given an option to elect health care coverage through a self-funded plan offered by the Commonwealth or, if a self-funded plan is not available, from a list of coverage options determined by the competitive bid process under the provisions of KRS 45A.080, 45A.085, and 45A.090 and made available during annual open enrollment.

(b) The policy or policies shall be approved by the commissioner of insurance and may contain the provisions the commissioner of insurance approves, whether or not otherwise permitted by the insurance laws.

(c) Any carrier bidding to offer health care coverage to employees shall agree to provide coverage to all members of the state group, including active employees and retirees and their eligible covered dependents and beneficiaries, within the county or counties specified in its bid. Except as provided in subsection (20) of this section, any carrier bidding to offer health care coverage to employees shall also agree to rate all employees as a single entity, except for those retirees whose former employers insure their active employees outside the state-sponsored health insurance program and as otherwise provided in KRS 61.702(2)(b)3.b. and 78.5536(2)(b)3.b.

(d) Any carrier bidding to offer health care coverage to employees shall agree to provide enrollment, claims, and utilization data to the Commonwealth in a format specified by the Personnel Cabinet with the understanding that the data shall be owned by the Commonwealth; to provide data in an electronic form and within a time frame specified by the Personnel Cabinet; and to be subject to penalties for noncompliance with data reporting requirements as specified by the Personnel Cabinet. The Personnel Cabinet shall take strict precautions to protect the confidentiality of each individual employee; however, confidentiality assertions shall not relieve a carrier from the requirement of providing stipulated data to the Commonwealth.

(e) The Personnel Cabinet shall develop the necessary techniques and capabilities for timely analysis of data received from carriers and, to the extent possible, provide in the request-for-proposal specifics relating to data requirements, electronic reporting, and penalties for noncompliance. The Commonwealth shall own the enrollment, claims, and utilization data provided by each carrier and shall develop methods to protect the confidentiality of the individual. The Personnel Cabinet shall include in the October annual report submitted pursuant to the provisions of KRS 18A.226 to the Governor, the General Assembly, and the Chief Justice of the Supreme Court, an analysis of the financial stability of the program, which shall include but not be limited to loss ratios, methods of risk adjustment, measurements of carrier quality of service, prescription coverage and cost management, and statutorily required mandates. If state self-insurance was available as a carrier option, the report also shall provide a detailed financial analysis of the self-insurance fund including but not limited to loss ratios, reserves, and reinsurance agreements.

(f) If any agency participating in the state-sponsored employee health insurance program for its active employees terminates participation and there is a state appropriation for the employer's contribution for active employees' health insurance coverage, then neither the agency nor the employees shall receive the state-funded contribution after termination from the state-sponsored employee health insurance program.

(g) Any funds in flexible spending accounts that remain after all reimbursements have been processed shall be transferred to the credit of the state-sponsored health insurance plan's appropriation account.

(h) Each entity participating in the state-sponsored health insurance program shall provide an amount at least equal to the state contribution rate for the employer portion of the health insurance premium. For any participating entity that used the state payroll system, the employer contribution amount shall be equal to but not greater than the state contribution rate.

(3) The premiums may be paid by the policyholder:

(a) Wholly from funds contributed by the employee, by payroll deduction or otherwise;

(b) Wholly from funds contributed by any department, board, agency, public postsecondary education institution, or branch of state, city, urban-county, charter county, county, or consolidated local government; or

(c) Partly from each, except that any premium due for health care coverage or dental coverage, if any, in excess of the premium amount contributed by any department, board, agency, postsecondary education institution, or branch of state, city, urban-county, charter county, county, or consolidated local government for any other health care coverage shall be paid by the employee.

(4) If an employee moves his or her place of residence or employment out of the service area of an insurer offering a managed health care plan, under which he or she has elected coverage, into either the service area of another managed health care plan or into an area of the Commonwealth not within a managed health care plan service area, the employee shall be given an option, at the time of the move or transfer, to change his or her coverage to another health benefit plan.

(5) No payment of premium by any department, board, agency, public postsecondary educational institution, or branch of state, city, urban-county, charter county, county, or consolidated local government shall constitute compensation to an insured employee for the purposes of any statute fixing or limiting the compensation of such an employee. Any premium or other expense incurred by any department, board, agency, public postsecondary educational institution, or branch of state, city, urban-county, charter county, county, or consolidated local government shall be considered a proper cost of administration.

(6) The policy or policies may contain the provisions with respect to the class or classes of employees covered, amounts of insurance or coverage for designated classes or groups of employees, policy options, terms of eligibility, and continuation of insurance or coverage after retirement.

(7) Group rates under this section shall be made available to the disabled child of an employee regardless of the child's age if the entire premium for the disabled child's coverage is paid by the state employee. A child shall be considered disabled if he or she has been determined to be eligible for federal Social Security disability benefits.

(8) The health care contract or contracts for employees shall be entered into for a period of not less than one (1) year.

(9) The secretary shall appoint thirty-two (32) persons to an Advisory Committee of State Health Insurance Subscribers to advise the secretary or the secretary's designee regarding the state-sponsored health insurance program for employees. The secretary shall appoint, from a list of names submitted by appointing authorities, members representing school districts from each of the seven (7) Supreme Court districts, members representing state government from each of the seven (7) Supreme Court districts, two (2) members representing retirees under age sixty-five (65), one (1) member representing local health departments, two (2) members representing the Kentucky Teachers' Retirement System, and three (3) members at large. The secretary shall also appoint two (2) members from a list of five (5) names submitted by the Kentucky Education Association, two (2) members from a list of five (5) names submitted by the largest state employee organization of nonschool state employees, two (2) members from a list of five (5) names submitted by the Kentucky Association of Counties, two (2) members from a list of five (5) names submitted by the Kentucky League of Cities, and two (2) members from a list of names consisting of five (5) names submitted by each state employee organization that has two thousand (2,000) or more members on state payroll deduction. The advisory committee shall be appointed in January of each year and shall meet quarterly.

(10) Notwithstanding any other provision of law to the contrary, the policy or policies provided to employees pursuant to this section shall not provide coverage for obtaining or performing an abortion, nor shall any state funds be used for the purpose of obtaining or performing an abortion on behalf of employees or their dependents.

(11) Interruption of an established treatment regime with maintenance drugs shall be grounds for an insured to appeal a formulary change through the established appeal procedures approved by the Department of Insurance, if the physician supervising the treatment certifies that the change is not in the best interests of the patient.

(12) Any employee who is eligible for and elects to participate in the state health insurance program as a retiree, or the spouse or beneficiary of a retiree, under any one (1) of the state-sponsored retirement systems shall not be eligible to receive the state health insurance contribution toward health care coverage as a result of any other employment for which there is a public employer contribution. This does not preclude a retiree and an active employee spouse from using both contributions to the extent needed for purchase of one (1) state sponsored health insurance policy for that plan year.

(13) (a) The policies of health insurance coverage procured under subsection (2) of this section shall include a mail-order drug option for maintenance drugs for state employees. Maintenance drugs may be dispensed by mail order in accordance with Kentucky law.

(b) A health insurer shall not discriminate against any retail pharmacy located within the geographic coverage area of the health benefit plan and that meets the terms and conditions for participation established by the insurer, including price, dispensing fee, and copay requirements of a mail-order option. The retail pharmacy shall not be required to dispense by mail.

(14) The policy or policies provided to state employees or their dependents pursuant to this section shall provide coverage for obtaining a hearing aid and acquiring hearing aid-related services for insured individuals under eighteen (18) years of age, subject to a cap of one thousand four hundred dollars ($1,400) every thirty-six (36) months pursuant to KRS 304.17A-132.

(15) Any policy provided to state employees or their dependents pursuant to this section shall provide coverage for the diagnosis and treatment of autism spectrum disorders consistent with KRS 304.17A-142.

(16) Any policy provided to state employees or their dependents pursuant to this section shall provide coverage for obtaining amino acid-based elemental formula pursuant to KRS 304.17A-258.

(17) If a state employee's residence and place of employment are in the same county, and if the hospital located within that county does not offer surgical services, intensive care services, obstetrical services, level II neonatal services, diagnostic cardiac catheterization services, and magnetic resonance imaging services, the employee may select a plan available in a contiguous county that does provide those services, and the state contribution for the plan shall be the amount available in the county where the plan selected is located.

(18) If a state employee's residence and place of employment are each located in counties in which the hospitals do not offer surgical services, intensive care services, obstetrical services, level II neonatal services, diagnostic cardiac catheterization services, and magnetic resonance imaging services, the employee may select a plan available in a county contiguous to the county of residence that does provide those services, and the state contribution for the plan shall be the amount available in the county where the plan selected is located.

(19) The Personnel Cabinet is encouraged to study whether it is fair and reasonable and in the best interests of the state group to allow any carrier bidding to offer health care coverage under this section to submit bids that may vary county by county or by larger geographic areas.

(20) Notwithstanding any other provision of this section, the bid for proposals for health insurance coverage for calendar year 2004 shall include a bid scenario that reflects the statewide rating structure provided in calendar year 2003 and a bid scenario that allows for a regional rating structure that allows carriers to submit bids that may vary by region for a given product offering as described in this subsection:

(a) The regional rating bid scenario shall not include a request for bid on a statewide option;

(b) The Personnel Cabinet shall divide the state into geographical regions which shall be the same as the partnership regions designated by the Department for Medicaid Services for purposes of the Kentucky Health Care Partnership Program established pursuant to 907 KAR 1:705;

(c) The request for proposal shall require a carrier's bid to include every county within the region or regions for which the bid is submitted and include but not be restricted to a preferred provider organization (PPO) option;

(d) If the Personnel Cabinet accepts a carrier's bid, the cabinet shall award the carrier all of the counties included in its bid within the region. If the Personnel Cabinet deems the bids submitted in accordance with this subsection to be in the best interests of state employees in a region, the cabinet may award the contract for that region to no more than two (2) carriers; and

(e) Nothing in this subsection shall prohibit the Personnel Cabinet from including other requirements or criteria in the request for proposal.

(21) Any fully insured health benefit plan or self-insured plan issued or renewed on or after July 12, 2006, to public employees pursuant to this section which provides coverage for services rendered by a physician or osteopath duly licensed under KRS Chapter 311 that are within the scope of practice of an optometrist duly licensed under the provisions of KRS Chapter 320 shall provide the same payment of coverage to optometrists as allowed for those services rendered by physicians or osteopaths.

(22) Any fully insured health benefit plan or self-insured plan issued or renewed to public employees pursuant to this section shall comply with:

(a) KRS 304.12-237;

(b) KRS 304.17A-270 and 304.17A-525;

(d) KRS 205.593;

(e) KRS 304.17A-700 to 304.17A-730;

(f) KRS 304.14-135;

(g) KRS 304.17A-580 and 304.17A-641;

(h) KRS 304.99-123;

(i) KRS 304.17A-138;

(j) KRS 304.17A-148;

(k) KRS 304.17A-163 and 304.17A-1631;

(l) KRS 304.17A-265;

(m) KRS 304.17A-261;

(n) KRS 304.17A-262;

(o) KRS 304.17A-145;

(p) KRS 304.17A-129;

(q) KRS 304.17A-133;

(r) KRS 304.17A-264; and

(s) Administrative regulations promulgated pursuant to statutes listed in this subsection.

(23) (a) Any fully insured health benefit plan or self-insured plan issued or renewed to public employees pursuant to this section shall provide a special enrollment period to pregnant women who are eligible for coverage in accordance with the requirements set forth in KRS 304.17-182.

(b) The Department of Employee Insurance shall, at or before the time a public employee is initially offered the opportunity to enroll in the plan or coverage, provide the employee a notice of the special enrollment rights under this subsection.

Effective: January 1, 2025

History: Amended 2024 Ky. Acts ch. 69, sec. 6, effective January 1, 2025; ch. 75, sec. 4, effective January 1, 2025; ch. 97, sec. 7, effective January 1, 2025; and ch. 207, sec. 6, effective January 1, 2025. -- Amended 2023 Ky. Acts ch. 30, sec. 5, effective January 1, 2025; and ch. 86, sec. 6, effective June 29, 2023. -- Amended 2022 Ky. Acts ch. 19, sec. 12, effective January 1, 2023; ch. 213, sec. 13, effective July 14, 2022; and ch. 216, sec. 26, effective April 14, 2022. -- Amended 2021 Ky. Acts ch. 30, sec. 5, effective June 29, 2021; and ch. 75, sec. 2, effective January 1, 2022. -- Amended 2020 Ky. Acts ch. 79, sec. 15, effective April 1, 2021. -- Amended 2019 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 3, effective July 24, 2019. -- Amended 2018 Ky. Acts ch. 187, sec. 7, effective July 1, 2019. -- Amended 2016 Ky. Acts ch. 10, sec. 4, effective April 1, 2016. -- Amended 2010 Ky. Acts ch. 24, sec. 28, effective July 15, 2010; and ch. 150, sec. 19, effective January 1, 2011. -- Amended 2007 Ky. Acts ch. 88, sec. 3, effective June 26, 2007. -- Amended 2006 Ky. Acts ch. 164, sec. 1, effective July 12, 2006. -- Amended 2003 Ky. Acts ch. 12, sec.1, effective June 24, 2003; and ch. 29, sec. 1, effective March 18, 2003. -- Amended 2002 Ky. Acts ch. 67, sec. 1, effective July 15, 2002; ch. 106, sec. 2, effective July 15, 2002; ch. 275, sec. 34, effective July 1, 2002; ch. 345, sec. 1, effective July 15, 2002; ch. 351, sec. 17, effective July 15, 2002; and ch. 352, secs. 1 and 4, effective July 15, 2002. -- Amended 2001 Ky. Acts ch. 70, sec. 3, effective March 15, 2001. -- Amended 2000 Ky. Acts ch. 438, sec. 2, effective April 21, 2000. -- Amended 1998 Ky. Acts ch. 82, sec. 4, effective July 15, 1998; ch. 154, sec. 45, effective July 15, 1998; and ch. 515, sec. 1, effective July 1, 1998. -- Amended 1996 Ky. Acts ch. 362, sec. 6, effective July 15, 1996; and ch. 371, sec. 60, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 350, sec. 1, effective July 15, 1994; and ch. 512, sec. 94, effective July 15, 1994. -- Amended 1992 Ky. Acts ch. 92, sec. 3, effective July 14, 1992; ch. 219, sec. 1, effective July 14, 1992; and ch. 235, sec. 1, effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 348, sec. 3, effective July 13, 1990; and ch. 489, sec. 8, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 178, sec. 1, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 23, sec. 1, effective July 13, 1984. -- Repealed and reenacted as KRS 18A.225, 1982 Ky. Acts ch. 448, sec. 45, effective July 15, 1982. - - Amended 1980 Ky. Acts ch. 132, sec. 6, effective July 15, 1980. -- Created 1976 (1st Extra. Sess.) Ky. Acts ch. 35, sec. 2. Formerly codified as KRS 18.470.

Legislative Research Commission Note (1/1/2025). 2024 Ky. Acts ch. 207, sec. 16, provides that the amendments to this statute in that Act shall apply to plans issued or renewed on or after January 1, 2025.

Legislative Research Commission Note (1/1/2025). 2024 Ky. Acts ch. 69, sec. 7, provides that the amendments to this statute in that Act shall apply to policies, certificates, plans, and contracts issued or renewed on or after January 1, 2025.

Legislative Research Commission Note (1/1/2025). 2024 Ky. Acts ch. 75, sec. 5, provides that the amendments to this statute in that Act shall apply to health benefit plans issued or renewed on or after January 1, 2025.

Legislative Research Commission Note (1/1/2025). 2024 Ky. Acts ch. 97, sec. 9, provides that the amendments to this statute in that Act shall apply to policies, plans, certificates, and contracts issued or renewed on or after January 1, 2025.

Legislative Research Commission Note (1/1/2025). This statute was amended by 2024 Ky. Acts chs. 69, 75, 97, and 207, which do not appear to be in conflict and have been codified together.

Legislative Research Commission Note (1/1/2025). 2023 Ky. Acts ch. 30, sec. 7, provides that the amendments to this statute in that Act shall apply to policies, certificates, plans, and contracts issued or renewed on or after January 1, 2025.

Legislative Research Commission Note (6/29/2023). This statute was amended by 2023 Ky. Acts ch. 86, sec. 6. Section 8 of that Act provides that the Act applies to health insurance policies in effect on or after June 29, 2023, and to health insurance policies issued, delivered, or renewed on or after June 29, 2023.

Legislative Research Commission Note (1/1/2023). 2022 Ky. Acts ch. 19, sec. 13, provides that the amendments made to this statute shall apply to health plans delivered, issued for delivery, or renewed on or after January 1, 2023.

Legislative Research Commission Note (7/1/2019). This statute was amended by 2018 Ky. Acts chs. 170, sec. 3 and ch. 187, sec. 7. However, 2018 Ky. Acts ch. 207, secs. 158 and 159 provided that, notwithstanding any statutory language to the contrary, no part of the amendments to this statute in 2018 Ky. Acts ch. 170, sec. 3 are to be codified.

Legislative Research Commission Note (4/1/2016). 2016 Ky. Acts ch. 10, sec. 5 provided that that Act may be cited as Noah's Law. This statute was amended in Section 4 of that Act.

Legislative Research Commission Note (10/19/2004). 2004 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 2, provides, "Notwithstanding KRS 18A.225, 45A.022, 45A.080, 45A.085, 45A.090, 45A.225 to 45A.290, or any other provision of KRS Chapter 45A to the contrary, retroactive to August 12, 2004, the Finance and Administration Cabinet shall implement the provisions of this Act by amending the previously negotiated contracts for public employee health insurance. The secretary of the Finance and Administration Cabinet shall provide an actuarial certification that the self-insured contract amounts are actuarially sound. Any contracts entered into or modified pursuant to this section shall be forwarded to the Legislative Research Commission."

Legislative Research Commission Note (7/15/2002). This section was amended by 2002 Ky. Acts chs. 67, 106, 275, 345, 351, and 352. Where these Acts are not in conflict, they have been codified together. Where a conflict exists between Acts ch. 275, sec. 34, and ch. 352, sec. 1, Acts ch. 352, which was last enacted by the General Assembly, prevails under KRS 446.250.

18A.225 Health care insurance coverage -- Requirements of prospective carriers --

(1) (a) The term "employee" for purposes of this section means:

Any person, including an elected public official, who is regularly employed by any department, office, board, agency, or branch of state government; or by a public postsecondary educational institution; or by any city, urban-county, charter county, county, or consolidated local government, whose legislative body has opted to participate in the state- sponsored health insurance program pursuant to KRS 79.080; and who is either a contributing member to any one (1) of the retirement systems administered by the state, including but not limited to the Kentucky Retirement Systems, County Employees Retirement System, Kentucky Teachers' Retirement System, the Legislators' Retirement Plan, or the Judicial Retirement Plan; or is receiving a contractual contribution from the state toward a retirement plan; or, in the case of a public postsecondary education institution, is an individual participating in an optional retirement plan authorized by KRS 161.567; or is eligible to participate in a retirement plan established by an employer who ceases participating in the Kentucky Employees Retirement System pursuant to KRS 61.522 whose employees participated in the health insurance plans administered by the Personnel Cabinet prior to the employer's effective cessation date in the Kentucky Employees Retirement System;
Any certified or classified employee of a local board of education or a public charter school as defined in KRS 160.1590;
Any elected member of a local board of education;
Any person who is a present or future recipient of a retirement allowance from the Kentucky Retirement Systems, County Employees Retirement System, Kentucky Teachers' Retirement System, the Legislators' Retirement Plan, the Judicial Retirement Plan, or the Kentucky Community and Technical College System's optional retirement plan authorized by KRS 161.567, except that a person who is receiving a retirement allowance and who is age sixty-five (65) or older shall not be included, with the exception of persons covered under KRS 61.702(2)(b)3. and 78.5536(2)(b)3., unless he or she is actively employed pursuant to subparagraph 1. of this paragraph; and
Any eligible dependents and beneficiaries of participating employees and retirees who are entitled to participate in the state-sponsored health insurance program;

(b) The term "health benefit plan" for the purposes of this section means a health benefit plan as defined in KRS 304.17A-005;

(d) The term "managed care plan" for the purposes of this section means a managed care plan as defined in KRS 304.17A-500.

(3) The premiums may be paid by the policyholder:

(a) Wholly from funds contributed by the employee, by payroll deduction or otherwise;

(8) The health care contract or contracts for employees shall be entered into for a period of not less than one (1) year.

(14) The policy or policies provided to state employees or their dependents pursuant to this section shall provide coverage for obtaining a hearing aid and acquiring hearing aid-related services for insured individuals under eighteen (18) years of age, subject to a cap of two thousand five hundred dollars ($2,500) every thirty-six (36) months pursuant to KRS 304.17A-132.

(16) Any policy provided to state employees or their dependents pursuant to this section shall provide coverage for obtaining amino acid-based elemental formula pursuant to KRS 304.17A-258.

(a) The regional rating bid scenario shall not include a request for bid on a statewide option;

(e) Nothing in this subsection shall prohibit the Personnel Cabinet from including other requirements or criteria in the request for proposal.

(22) Any fully insured health benefit plan or self-insured plan issued or renewed to public employees pursuant to this section shall comply with:

(a) KRS 304.12-237;

(b) KRS 304.17A-270 and 304.17A-525;

(d) KRS 205.593;

(e) KRS 304.17A-700 to 304.17A-730;

(f) KRS 304.14-135;

(g) KRS 304.17A-580 and 304.17A-641;

(h) KRS 304.99-123;

(i) KRS 304.17A-138;

(j) KRS 304.17A-148;

(k) KRS 304.17A-163 and 304.17A-1631;

(l) KRS 304.17A-265;

(m) KRS 304.17A-261;

(n) KRS 304.17A-262;

(o) KRS 304.17A-145;

(p) KRS 304.17A-129;

(q) KRS 304.17A-133;

(r) KRS 304.17A-264;

(s) KRS 304.17A-128;

(t) KRS 304.17A-655 to 304.17A-659; and

(u) Administrative regulations promulgated pursuant to statutes listed in this subsection.

Effective: January 1, 2027

History: Amended 2026 Ky. Acts ch. 26, sec. 2, effective January 1, 2027; ch. 51, sec. 3, effective January 1, 2027; and ch. 101, sec. 9, effective January 1, 2027. -- Amended 2024 Ky. Acts ch. 69, sec. 6, effective January 1, 2025; ch. 75, sec. 4, effective January 1, 2025; ch. 97, sec. 7, effective January 1, 2025; and ch. 207, sec. 6, effective January 1, 2025. -- Amended 2023 Ky. Acts ch. 30, sec. 5, effective January 1, 2025; and ch. 86, sec. 6, effective June 29, 2023. -- Amended 2022 Ky. Acts ch. 19, sec. 12, effective January 1, 2023; ch. 213, sec. 13, effective July 14, 2022; and ch. 216, sec. 26, effective April 14, 2022. -- Amended 2021 Ky. Acts ch. 30, sec. 5, effective June 29, 2021; and ch. 75, sec. 2, effective January 1, 2022. -- Amended 2020 Ky. Acts ch. 79, sec. 15, effective April 1, 2021. -- Amended 2019 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 3, effective July 24, 2019. -- Amended 2018 Ky. Acts ch. 187, sec. 7, effective July 1, 2019. -- Amended 2016 Ky. Acts ch. 10, sec. 4, effective April 1, 2016. -- Amended 2010 Ky. Acts ch. 24, sec. 28, effective July 15, 2010; and ch. 150, sec. 19, effective January 1, 2011. -- Amended 2007 Ky. Acts ch. 88, sec. 3, effective June 26, 2007. -- Amended 2006 Ky. Acts ch. 164, sec. 1, effective July 12, 2006. -- Amended 2003 Ky. Acts ch. 12, sec.1, effective June 24, 2003; and ch. 29, sec. 1, effective March 18, 2003. -- Amended 2002 Ky. Acts ch. 67, sec. 1, effective July 15, 2002; ch. 106, sec. 2, effective July 15, 2002; ch. 275, sec. 34, effective July 1, 2002; ch. 345, sec. 1, effective July 15, 2002; ch. 351, sec. 17, effective July 15, 2002; and ch. 352, secs. 1 and 4, effective July 15, 2002. -- Amended 2001 Ky. Acts ch. 70, sec. 3, effective March 15, 2001. -- Amended 2000 Ky. Acts ch. 438, sec. 2, effective April 21, 2000. -- Amended 1998 Ky. Acts ch. 82, sec. 4, effective July 15, 1998; ch. 154, sec. 45, effective July 15, 1998; and ch. 515, sec. 1, effective July 1, 1998. -- Amended 1996 Ky. Acts ch. 362, sec. 6, effective July 15, 1996; and ch. 371, sec. 60, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 350, sec. 1, effective July 15, 1994; and ch. 512, sec. 94, effective July 15, 1994. -- Amended 1992 Ky. Acts ch. 92, sec. 3, effective July 14, 1992; ch. 219, sec. 1, effective July 14, 1992; and ch. 235, sec. 1, effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 348, sec. 3, effective July 13, 1990; and ch. 489, sec. 8, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 178, sec. 1, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 23, sec. 1, effective July 13, 1984. -- Repealed and reenacted as KRS 18A.225, 1982 Ky. Acts ch. 448, sec. 45, effective July 15, 1982. - - Amended 1980 Ky. Acts ch. 132, sec. 6, effective July 15, 1980. -- Created 1976 (1st Extra. Sess.) Ky. Acts ch. 35, sec. 2. Formerly codified as KRS 18.470.

Legislative Research Commission Note (1/1/2027). This statute was amended by 2026 Ky. Acts chs. 26, 51, and 101, which do not appear to be in conflict and have been codified together.

Legislative Research Commission Note (1/1/2027). 2026 Ky. Acts ch. 26, sec. 3, provides that the amendments to this statute in that Act apply to health benefit plans issued or renewed on or after January 1, 2027.

Legislative Research Commission Note (1/1/2027). 2026 Ky. Acts ch. 51, sec. 4, provides that the amendments to this statute in that Act apply to health benefit plans issued or renewed on or after January 1, 2027.

Legislative Research Commission Note (1/1/2027). 2026 Ky. Acts ch. 101, sec. 10, provides that the amendments to this statute in that Act apply to health plans issued or renewed on or after January 1, 2027.

Legislative Research Commission Note (4/1/2016). 2016 Ky. Acts ch. 10, sec. 5 provided that that Act may be cited as Noah's Law. This statute was amended in Section 4 of that Act.

18A.2251 State employee health care plan buy-in. (Expired July 14, 1995)

(1) Any citizen of the United States, who has been a Kentucky resident for at least one

(1) year prior to purchasing coverage under this section, shall be permitted to purchase health insurance coverage provided to state employees pursuant to KRS 18A.225 and 18A.2281, under the same terms and conditions as state employees until the Kentucky Health Purchasing Alliance created pursuant to KRS 304.17A- 020 becomes operational. The premium charged for coverage for high risk individuals as defined by the Kentucky Health Policy Board shall not exceed two hundred percent (200%) of the premium paid by the Commonwealth for state employees. Policies issued under this section shall be valid for a period of one (1) year, and at the time of the policy's expiration the insured shall be eligible for participation in the Kentucky Health Purchasing Alliance created pursuant to KRS 304.17A-020.

(2) The secretary of the Finance and Administration Cabinet and the secretary of the Cabinet for Human Resources shall provide for a system to enroll any citizen who elects to purchase health insurance coverage under subsection (1) of this section using the county offices of the Cabinet for Human Resources. Citizens desiring to purchase coverage shall do so through the office of the Cabinet for Human Resources in the county of the citizen's residence. Payment for premiums shall be made in advance on a quarterly or annual basis, in a manner to be determined by administrative regulations of the Finance and Administration Cabinet promulgated pursuant to KRS Chapter 13A.

(3) Following the close of each calendar year, the Kentucky Health Policy Board shall determine for each of the insurance plans providing coverage to state employees and persons electing to purchase coverage pursuant to this section, the net premium, being premiums less administrative expense allowances, the plan expenses, and claim expenses losses for the year, taking into account investment income and other appropriate gains and losses.

(4) Each health insurer's proportion of participation in the state employee health plan shall be determined annually by the Kentucky Health Policy Board based on annual statements and other reports deemed necessary by the board and filed by the insurer with the board. The proportion of participation shall be determined by multiplying the total cost of each state health insurance plan coverage operation by a fraction, the numerator of which equals that insurer's premium and subscriber contract charges for health insurance written in the state during the preceding calendar year and the denominator of which equals the total of all premiums and subscriber contract charges written in the state. The amount of the assessment shall also be adjusted to ensure that the Commonwealth's cost of providing coverage to state employees does not increase more than the average rate of premium growth for state employees during the five (5) years preceding July 15, 1994.

(5) Any deficit incurred by the state employee health insurance plan shall be recouped by assessments on all health insurers doing business in the Commonwealth pursuant to the assessment formula set forth by the Kentucky Health Policy Board. The insurers may recover these amounts in the normal course of their respective businesses without time limitation.

(6) The Kentucky Health Policy Board may abate or defer, in whole or in part, the assessment of an insurer if, in the opinion of the board, payment of the assessment would endanger the ability of the insurer to fulfill its contractual obligations. If an assessment against an insurer is abated or deferred in whole or in part, the amount by which the assessment is abated or deferred may be assessed against the other insurers in a manner consistent with the basis for assessments set forth in this section. The insurer receiving an abatement or deferment shall remain liable to the Commonwealth for the deficiency for four (4) years.

(7) If assessments exceed actual losses and administrative expenses of the plan, the excess shall be held at interest and used by the Commonwealth to offset future losses or to reduce premiums. As used in this subsection, "future losses" includes reserves for incurred but not reported claims.

(8) After July 14, 1995, this section shall become null and void.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 512, Part 14, sec. 93, effective July 15, 1994.

18A.2253 Self-insurance for area development district employees.

Notwithstanding the provisions of KRS 18A.225, the area development districts may jointly establish an employee benefit fund to provide for self-insurance of all risks in the provision of benefits for district employees comparable to those that may be paid under a policy or contract procured by the secretary of Finance and Administration Cabinet as provided in KRS 18A.225(2).

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 219, sec. 3, effective July 14, 1992.

18A.2254 Self-insured plan for public employees -- Contract for third-party administrator -- Formulary change -- Health reimbursement account, health flexible spending account, or health savings account -- Public employee health insurance trust fund -- Annual audit -- Quarterly status reports.

(1) Based on the recommendation of the secretary of the Personnel Cabinet, the secretary of the Finance and Administration Cabinet, in lieu of contracting with one

(1) or more insurers licensed to do business in this state, shall procure, in compliance with KRS 45A.080, 45A.085, and 45A.090, and reviewed by the Government Contract Review Committee pursuant to KRS 45A.705, a contract with one (1) or more third-party administrators licensed to do business in the Commonwealth pursuant to KRS 304.9-052 to administer a self-insured plan offered to the Public Employee Health Insurance Program for public employees. The requirements for the self-insured plan shall be as follows:

(a) 1. The secretary of the Personnel Cabinet shall incorporate by reference in an administrative regulation, pursuant to KRS 13A.2251, the plan year handbook distributed by the Department of Employee Insurance in the Personnel Cabinet to public employees covered under the self-insured

plan. The plan year handbook shall contain, at a minimum, the premiums, employee contributions, employer contributions, and a summary of benefits, copays, coinsurance, and deductibles for each plan provided to public employees covered under the self-insured plan;

Notwithstanding any other provision of KRS Chapter 18A to the contrary, the administrative regulation shall not be subject to review by the Personnel Board prior to filing the administrative regulation with the Legislative Research Commission; and
The secretary of the Personnel Cabinet shall file the administrative regulation for the self-insured plan with the Legislative Research Commission on or before September 15 of the year before each new plan year begins;

(b) The self-insured plan offered by the program shall cover hospice care at least equal to the Medicare benefit;

(c) The Personnel Cabinet shall provide written notice of any formulary change to employees covered under the self-insured plan who are directly impacted by the formulary change and to the Kentucky Group Health Insurance Board fifteen (15) days before implementation of any formulary change. If, after consulting with his or her physician, the employee still disagrees with the formulary change, the employee shall have the right to appeal the change. The employee shall have sixty (60) days from the date of the notice of the formulary change to file an appeal with the Personnel Cabinet. The cabinet shall render a decision within thirty (30) days from the receipt of the request for an appeal. After a final decision is rendered by the Personnel Cabinet, the employee shall have a right to file an appeal pursuant to the utilization review statutes in KRS 304.17A-600 to 304.17A-633. During the appeal process, the employee shall have the right to continue to take any drug prescribed by his or her physician that is the subject of the formulary changes;

(d) The Personnel Cabinet shall develop the necessary capabilities to ensure that an independent review of each formulary change is conducted and includes but is not limited to an evaluation of the fiscal impact and therapeutic benefit of the formulary change. The independent review shall be conducted by knowledgeable medical professionals and the results of the independent review shall be posted on the Web sites of the Personnel Cabinet and the Cabinet for Health and Family Services and made available to the public upon request within thirty (30) days of the notice from the Personnel Cabinet required in paragraph (c) of this subsection;

(e) If the self-insured plan restricts pharmacy benefits to a drug formulary, the plan shall comply with and have an exceptions policy in accordance with KRS 304.17A-535;

(f) Premiums for all plans offered by the Public Employee Health Insurance Program to employees shall be based on the experience of the entire group;

(g) The plan year for the Public Employee Health Insurance Program, whether for fully insured or self-insured benefits, shall be on a calendar year basis; and

(h) The self-insured plan shall comply with subsection (4) of this section.

(2) (a) 1. In addition to any fully insured health benefit plans or self-insured plans, beginning January 1, 2015, the Personnel Cabinet shall offer a health reimbursement account or health flexible spending account for public employees insured under the Public Employee Health Insurance Program.

The Personnel Cabinet may offer a health savings account in conjunction with a high deductible health plan option as defined by 26 U.S.C. sec. 223(c)(2) or as an optional account to which the Personnel Cabinet may deposit funds of an employee who waives coverage in accordance with paragraph (b) of this subsection, provided the employee who waives coverage is eligible to contribute to a health savings account.

(b) If a public employee waives coverage provided by his or her employer under the Public Employee Health Insurance Program, the employer shall forward a monthly amount to be determined by the secretary of the Personnel Cabinet for that employee as an employer contribution to the health reimbursement account or health flexible spending account, but not less than one hundred seventy-five dollars ($175) per month, subject to any conditions or limitations imposed by the secretary to comply with applicable federal law.

(c) The administrative fees associated with the employee's health savings account, health reimbursement account, or health flexible spending account shall be an authorized expense to be charged to the public employee health insurance trust fund.

(3) (a) The public employee health insurance trust fund is established in the Personnel Cabinet. The purpose of the public employee health insurance trust fund is to provide funds to pay medical claims and other costs associated with the administration of the Public Employee Health Insurance Program self- insured plan under a competitively bid contract as provided by KRS Chapter 45A and reviewed by the Government Contract Review Committee pursuant to KRS 45A.705. Unless authorized by the General Assembly, the trust fund shall not utilize funds for any other purpose and the trust fund receipts from prior plan years shall not be used to pay claims and expenses for current or subsequent plan years, except as provided by paragraph (b) of this subsection.

(b) In the event of a projected deficit in the trust fund balance of a prior plan year, the secretary of the Finance and Administration Cabinet may declare an emergency and transfer up to twenty-five percent (25%) of another prior plan year's balance to that plan year, provided the Governor, all members of the General Assembly, and Legislative Research Commission are notified at least thirty (30) days prior to the transfer. The Legislative Research Commission shall refer the notice to appropriate committees of jurisdiction for their review.

Employer and employee premiums collected under the self-insured plan;
Interest and investment returns earned by the self-insured plan;
Rebates and refunds attributed to the self-insured plan; and
All other receipts attributed to the self-insured plan.

(d) Any balance remaining in the public employee health insurance trust fund at the end of a fiscal year shall not lapse. Any balance remaining at the end of a fiscal year shall be carried forward to the next fiscal year and be used solely for the purpose established in paragraphs (a) and (b) of this subsection. The balance of funds in the public employee health insurance trust fund shall be invested by the Office of Financial Management consistent with the provisions of KRS Chapter 42, and interest income shall be credited to the trust fund. Any balance for a specific plan year and any subsequent interest income for that specific plan year shall be accounted for separately.

(e) The Auditor of Public Accounts shall be responsible for a financial audit of the books and records of the trust fund. The audit shall be conducted in accordance with generally accepted accounting principles and shall be completed within ninety (90) days of the close of the fiscal year. All audit reports shall be filed with the Governor, the President of the Senate, the Speaker of the House of Representatives, and the secretary of the Personnel Cabinet.

(f) The secretary of the Personnel Cabinet shall file a quarterly report on the status of the trust fund with the Governor, the Interim Joint Committee on Appropriations and Revenue, the Kentucky Group Health Insurance Board, and the Advisory Committee of State Health Insurance Subscribers. The first status report shall be submitted no later than July 30, 2006, and subsequent reports shall be submitted no later than sixty (60) days following the end of each calendar quarter. The report shall include the following:

The current balance of the trust fund and the amount of the balance associated with each plan year;
A detailed description of all income to the trust fund since the last report;
A detailed description of any receipts due to the trust fund;
A total amount of payments made for medical and pharmacy claims from the trust fund by plan year;
A detailed description of all payments made to the third-party administrator of the self-insured plan by the trust fund;
Current enrollment data, including monthly enrollment since the last report, of the Public Employee Health Insurance Program self-insured plan;
Any other information the secretary may include;
Any other information requested by the Interim Joint Committee on Appropriations and Revenue concerning the operation of the Public Employee Health Insurance Program self-funded plan or the trust fund; and
In addition to the information required under subparagraphs 1. to 8. of this paragraph, the quarterly report filed in July and January shall also include the following:

a. A projection of the medical claims incurred but not yet reported that are considered liabilities to the trust fund;

b. A statement of any other trust fund liabilities;

c. A detailed calculation outlining proposed premium rates for the next plan year, including base claims, trend assumptions, administrative fees, and any proposed plan or benefit changes;

d. A detailed description of the current in-state and out-of-state networks provided under the plan, any changes to the networks since the last report, and any proposed changes to the in-state or out-of-state networks during the next six (6) months; and

e. Specific data regarding the third-party administrator's performance under the contract. The data shall include the following:

i. Any results or outcomes of disease management and wellness programs;

ii. Results of case management audits and educational and communication efforts; and

iii. Comparison of actual measurable results to contract performance guarantees.

(4) (a) Any fully insured health benefit plan, self-insured plan, or other health plan, as defined in KRS 304.17A-591, offered, issued, or renewed to public employees under this section or KRS 18A.225 shall comply with KRS 304.17A-591 to 304.17A-599, including any state cabinet, agency, or official that contracts with a third-party administrator to administer any self-insured plan offered, issued, or renewed to public employees under this section or KRS 18A.225.

(b) The plan or plans referred to in paragraph (a) of this subsection shall be filed with the commissioner of the Department of Insurance, and the commissioner shall review the plan or plans in accordance with KRS 304.14-120(6).

Effective: January 1, 2025

History: Amended 2024 Ky. Acts ch. 104, sec. 14, effective January 1, 2025. -- Amended 2017 Ky. Acts ch. 111, sec. 1, effective June 29, 2017. -- Amended 2014 Ky. Acts ch. 82, sec. 1, effective July 15, 2014. -- Amended 2012 Ky. Acts ch. 10, sec. 3, effective July 12, 2012. -- Amended 2008 Ky. Acts ch. 10, sec. 1, effective July 15, 2008. -- Created 2006 Ky. Acts ch. 252, Pt. XXIX, sec. 1, effective April 25, 2006. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. IV, 6 at 2165. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. IV, 7 at 2165. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. IV, 8 at 2165.

Legislative Research Commission Note (7/15/2014). In codification, the Reviser of Statutes has altered the numbering within subsection (2) of this statute from the way it appeared in 2014 Ky. Acts ch. 82, sec. 1, under the authority of KRS 7.136(1)(c).

Legislative Research Commission Note (4/25/2006). 2006 Ky. Acts ch. 252, Pt. XXIX, sec. 1, which created this section, was partially vetoed by the Governor on April 24, 2006, in Veto #29 and Veto #30.

18A.2255 Health benefit plans and other information to be submitted to Advisory Committee of State Health Insurers -- Approval or recommendations for changes -- Committee to advise on options, bids, administration, and drug formulary -- Written report or testimony.

(1) The secretary of the Personnel Cabinet shall submit to the Advisory Committee of State Health Insurance Subscribers established in KRS 18A.225, at least thirty (30) days prior to issuing requests for proposals, the health benefit plans that will be submitted to carriers. The secretary of the Personnel Cabinet shall also provide to employee organizations who are represented on the Advisory Committee of State Health Insurance Subscribers information necessary so that the member representing the organization can fulfill his or her responsibilities under this section. The advisory committee shall submit in writing to the secretary the committee's approval of the plans or its recommendations on changes to the plans no later than seven (7) days prior to the issuance of requests for proposals. The advisory committee shall advise the secretary on:

(a) Health insurance benefit options that should be included in the program;

(b) Procedures for soliciting bids or requesting proposals for contracts from carriers for the program;

(d) The development of a uniform prescription drug formulary that contains fair and reasonable standards and procedures for patient access to medically necessary alternatives to the formulary and patient choice of higher-cost alternatives to the formulary, and that ensures that discounts negotiated with drug manufacturers are passed to the program.

(2) The secretary of the Personnel Cabinet shall, at the discretion of the co-chairs of the Interim Joint Committee on Appropriations and Revenue, either submit a written report to or testify before the Interim Joint Committee on Appropriations and Revenue on the state employee health insurance program for the next plan year prior to the issuance of the requests for proposals.

Effective: October 19, 2004

History: Created 2004 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 5, effective October 19, 2004.

18A.2256 TRICARE supplement insurance for public employees.

(1) The provisions of this section shall take effect to the extent that they are not preempted by 10 U.S.C. sec. 1097c, other federal law, or federal regulation.

(2) As used in this section:

(a) "TRICARE" means the Department of Defense health care program for active duty and retired uniformed service members and their families; and

(b) "Employee" has the same meaning as in KRS 18A.225.

(3) Beginning with plan year 2009, the Personnel Cabinet, Department of Employee Insurance, shall select and contract with one (1) or more providers to offer a group TRICARE supplement product to eligible employees who are eligible TRICARE beneficiaries.

(4) The Commonwealth of Kentucky shall pay the cost of individual TRICARE supplement insurance to cover the employee, not to exceed the cost of the lowest- priced individual plan offered to public employees. The employee shall pay the cost of coverage for his or her spouse and dependent children.

(5) Those employees eligible for TRICARE insurance who elect the Commonwealth of Kentucky-sponsored TRICARE supplement insurance shall not be eligible for other coverage offered through the Public Employee Health Insurance Program. Those employees eligible for TRICARE insurance who choose not to elect the Commonwealth of Kentucky-sponsored TRICARE supplement insurance shall continue to be eligible for the coverage offered through the Public Employee Health Insurance Program.

(6) The secretary of the Personnel Cabinet may promulgate administrative regulations to carry out the provisions of this section.

Effective: July 12, 2012

History: Amended 2012 Ky. Acts ch. 10, sec. 4, effective July 12, 2012. -- Created 2007 Ky. Acts ch. 123, sec. 1, effective June 26, 2007.

18A.2257 Repealed, 2008.

[Repealed]

18A.2258 Pharmacy and health care benefit claims monitoring -- Contract provisions -- Requirements -- Administrative regulations.

(1) (a) By December 31, 2022, the secretary of the Finance and Administration Cabinet shall, upon the recommendation of the secretary of the Personnel Cabinet and in accordance with KRS Chapter 45A, select and contract with, the effective date of which shall not be later than January 1, 2023, a single independent entity for the purpose of monitoring all pharmacy benefit claims for every individual enrolled in the Public Employee Health Insurance Program.

(b) By December 31, 2023, in addition to the contract in paragraph (a) of this subsection, the secretary of the Finance and Administration Cabinet shall, upon the recommendation of the secretary of the Personnel Cabinet and in accordance with KRS Chapter 45A, select and contract with a single independent entity for the purpose of monitoring all health care service benefit claims, other than pharmacy benefit claims, for every individual enrolled in the Public Employee Health Insurance Program.

Not be for a term longer than two (2) years but may be renewed for like or lesser periods; and
Limit compensation paid to the contracted entity to not more than thirty percent (30%) of the total savings generated by the contracted entity as determined by the Personnel Cabinet.

(2) To be eligible to receive a contract pursuant to subsection (1) of this section, an entity shall:

(a) Be capable of performing the analysis of benefit claims to validate accuracy and identify errors in near real time;

(b) Not be an entity that performs annual retroactive audits of benefit claims for the Public Employee Health Insurance Program; and

(c) Not be affiliated by common parent company or holding company, share any common members of the board of directors, or share managers in common with:

An insurer contracted pursuant to KRS 18A.225;
A third-party administrator contracted pursuant to KRS 18A.2254; or
A pharmacy benefit manager contracted by:

a. The Personnel Cabinet;

b. An insurer contracted pursuant to KRS 18A.225; or

c. A third-party administrator contracted pursuant to KRS 18A.2254.

(3) The entity or entities contracted pursuant to subsection (1) of this section shall:

(a) Be granted full access to:

Any contract awarded to a third-party administrator or pharmacy benefit manager for the purpose of administering benefits in the Public Employee Health Insurance Program and all pertinent reference documents within that contract, including but not limited to any pharmacy price lists or specialty drug price lists which shall be provided to the monitoring entity contracted pursuant to this section by the Personnel Cabinet and which shall be updated by the Personnel Cabinet within five (5) days of the effective date of any pricing changes;
Any other contract that defines an insurer's, third-party administrator's, or pharmacy benefit manager's obligations and responsibilities as it relates to processing Public Employee Health Insurance Program benefit claims, including any contract between a pharmacy benefit manager and an insurer contracted pursuant to KRS 18A.225 or a third-party administrator contracted pursuant to KRS 18A.2254; and
Invoices and unaltered claims files associated with benefits under the Public Employee Health Insurance Program;

(b) Analyze one hundred percent (100%) of invoices or claims submitted for payment by the Public Employee Health Insurance Program. The entity shall not utilize statistical sampling methods in lieu of analyzing all invoices and claims;

(c) Identify and correct errors in benefit claims in order to avoid or reduce erroneous overpayments by an insurer contracted pursuant to KRS 18A.225, a third-party administrator contracted pursuant to KRS 18A.2254, or a pharmacy benefit manager contracted to administer pharmacy benefits in the Public Employee Health Insurance Program;

(d) Identify underpayments made by an insurer contracted pursuant to KRS 18A.225, a third-party administrator contracted pursuant to KRS 18A.2254, or a pharmacy benefit manager contracted to administer pharmacy benefits in the Public Employee Health Insurance Program;

(e) Identify inappropriate or erroneous fees imposed by an insurer contracted pursuant to KRS 18A.225, a third-party administrator contracted pursuant to KRS 18A.2254, or a pharmacy benefit manager contracted to administer pharmacy benefits in the Public Employee Health Insurance Program; and

(f) Submit a quarterly report to the Legislative Research Commission. The report shall include a summary of the analysis and errors identified pursuant to paragraphs (c), (d), and (e) of this subsection during the previous quarter.

(4) The entity or entities contracted pursuant to subsection (1) of this section shall not perform drug utilization reviews and shall not exercise any authority over the provision of health care benefits for Medicare eligible retirees.

(5) The analysis of claims and the identification of potential errors required by subsection (3)(b), (c), and (d) of this section shall:

(a) Occur prior to the due date of each claim or invoice submitted by an insurer contracted pursuant to KRS 18A.225, a third-party administrator contracted pursuant to KRS 18A.2254, or a pharmacy benefit manager contracted to administer pharmacy benefits in the Public Employee Health Insurance Program or within five (5) days of receipt of the claim or invoice, whichever is later; and

(b) Consider at least the following:

Compliance with all relevant administrative regulations promulgated by the Personnel Cabinet;
Compliance with all state and federal laws relating to or applicable to the Public Employee Health Insurance Program;
Compliance with any contract with an insurer, third-party administrator, or pharmacy benefit manager; and
The market competitiveness of benefit payments, including the adequacy of payments to pharmacies and other health care providers.

(6) The Personnel Cabinet may promulgate administrative regulations necessary to carry out this section.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 48, sec. 1, effective June 29, 2023. -- Created 2022 Ky. Acts ch. 223, sec. 19, effective July 14, 2022.

18A.2259 Mail-order drug option for maintenance drugs.

Any self-insured plan offered by the Personnel Cabinet shall include a mail-order drug option for maintenance drugs for public employees, and maintenance drugs may be dispensed by mail in accordance with Kentucky law. The mail-order drug option shall not permit the dispensing of a controlled substance classified in Schedule II. The self-insured plan shall not discriminate against any retail pharmacy located within the geographic coverage area of the plan that meets the terms and conditions for participation established by the plan, including price, dispensing fee, and copay requirements of a mail-order drug option. The retail pharmacy shall not be required to dispense by mail. The net cost to the plan for a quantity of maintenance drugs dispensed by mail order shall not exceed the net cost to the plan for the same quantity of the same drug dispensed by a retail pharmacy under the terms and conditions established for dispensing and reimbursement at retail.

Effective: July 12, 2006

History: Created 2006 Ky. Acts ch. 164, sec. 5, effective July 12, 2006.

18A.226 Group Health Insurance Board -- Members -- Duties.

(1) To provide quality, affordable health insurance coverage so that the Commonwealth can attract and retain able and dedicated public employees, and to facilitate the need for comprehensive and efficient planning, implementation, and administration of a state employee health insurance program in order to meet this goal, the Kentucky Group Health Insurance Board is created. The board shall be attached to the Personnel Cabinet for administrative purposes only. The board shall consist of thirteen (13) members as follows:

(a) The secretary of the Finance and Administration Cabinet;

(b) The secretary of the Personnel Cabinet;

(d) The commissioner of education;

(e) The chair of the Advisory Committee of State Health Insurance Subscribers;

(f) The commissioner of insurance, ex officio;

(g) The Auditor of Public Accounts, ex officio;

(h) The Director of the Administrative Office of the Courts, or his designee;

(i) One (1) retired state employee appointed by the Kentucky Retirement Systems, who shall serve an initial term of one (1) year;

(j) One (1) retired teacher appointed by the Teachers' Retirement System, who shall serve an initial term of two (2) years;

(k) One (1) active teacher appointed by the organization with the largest number of teacher members on payroll deduction, who shall serve an initial term of one (1) year;

(l) One (1) active state employee appointed by the organization with the largest number of state employee members on payroll deduction, who shall serve an initial term of two (2) years; and

(m) One (1) active classified education support employee appointed by the organization with the largest number of classified education support employee members on payroll deduction, who shall serve an initial term of one (1) year. As each appointed member's term expires, the vacancy created shall be filled by the appointing authority for that position for a term of two (2) years. An appointment to fill an unexpired term of an appointed member shall be made by the designated appointing authority for the remainder of the term. Appointed terms shall begin effective October 1.

(2) The members of the board shall elect from among its members a chair and a vice chair.

(3) Regular meetings of the board shall be held at least once every month at a place, day, and time determined by the board. Special meetings of the board shall be held when needed as determined by the chair. If seven (7) or more members of the board request in writing that the chair call a special meeting, the chair shall call a special meeting. The meetings shall operate in accordance with the provisions of the Open Meetings Law under KRS 61.805 to 61.850.

(4) Members of the board shall receive reimbursement for necessary expenses for attendance at official board meetings or public hearings.

(5) The Kentucky Group Health Insurance Board shall:

(a) Engage in analyses and research to identify the factors and parameters that affect the state group health insurance program;

(b) Develop and transmit, by October 1 of each year beginning October 1, 2001, to the Governor, the General Assembly, and the Chief Justice of the Supreme Court, policy recommendations regarding benefit options and management of the state group health insurance program; and

Analysis and discussion of methods used by all other states to provide health insurance benefits to their state group; and
Analysis and discussion of the cost, enrollment, claims, and utilization data for calendar year 2000 on the Kentucky state group; and
Recommendations including but not limited to appropriate structures for the state contribution rate which shall include recommendations on increasing the state contribution to provide support for dependent coverage, possible methods to mitigate adverse selection, competitive plan designs by type and benefit options, the feasibility of a state self- insurance plan, and strategies for evaluating third-party administrators and vendors.

Effective: July 15, 2010

History: Amended 2010 Ky. Acts ch. 24, sec. 29, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 158, sec. 1, effective July 15, 2002. -- Created 2000 Ky. Acts ch. 438, sec. 1, effective April 21, 2000.

18A.227 Flexible benefits plan for employees and retirees.

(1) For purposes of this section, the following definitions shall apply:

(a) "Cafeteria plan" shall mean a flexible benefits plan which meets the requirements of Section 125 of the Federal Internal Revenue Code;

(b) "Employee" shall mean a person, including an elected public official, who is regularly employed by any department, board, agency, or branch of state government, and who is a contributing member to any one (1) of the retirement systems administered by the state;

(d) "Change in family status" shall have the same meaning as used in Section 125 of the Internal Revenue Code and regulations promulgated thereunder; and

(e) "Salary reduction contribution" means all employer contributions that are excludable from gross income under the Internal Revenue Code.

(2) As part of the employee benefits provided to state employees under this chapter, the cabinet may develop and make available to eligible employees a flexible benefits plan which meets the requirements for treatment as a cafeteria plan under Section 125 of the Internal Revenue Code. The plan shall be in writing and shall be available on an equal basis to all eligible employees within each county.

(3) Options available under the plan may include, but are not limited to:

(a) Health insurance coverage;

(b) Managed health care coverage;

(d) Dental insurance;

(e) Term life insurance-accidental, death, or dismemberment;

(f) Vision insurance;

(g) Long term disability insurance;

(h) Long term medical care; and

(i) Any other benefits which may be offered under the provisions of the Internal Revenue Code and which the cabinet determines to be in the best interests of state employees.

(4) Any employee who desires to participate in options offered under the plan, may direct that any options elected shall be funded through payroll deduction. Once an option is chosen, it shall not be changed until the end of the period for which election is made unless the employee experiences a change in family status, other change of status, or special enrollment rights under the Federal Health Insurance Portability and Accountability Act of 1996 which necessitates a revision of his benefit election.

(5) Any employee contributions required toward the purchase of the selected options shall be made by a salary reduction contribution, to the extent the benefits would be considered to be tax-free under Chapter 1 of the Internal Revenue Code, and by after-tax salary deduction where the elected option is not tax-free.

Effective: July 15, 2002

History: Amended 2002 Ky. Acts ch. 352, sec. 2, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 438, sec. 6, effective April 21, 2000. -- Amended 1998 Ky. Acts ch. 154, sec. 46, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 350, sec. 2, effective July 15, 1994. -- Created 1990 Ky. Acts ch. 395, sec. 1, effective July 13, 1990.

18A.2271 Unused funds in flexible spending accounts may be carried forward to next plan year.

Employees who participate in a medical expense flexible spending account plan pursuant to KRS 18A.227 may carry forward to the succeeding plan year unused funds remaining in the flexible spending account at the end of the plan year to the extent that such carryforward is allowed by the Internal Revenue Code in effect on the date the plan year ends.

Effective: October 19, 2004

History: Created 2004 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 6, effective October 19, 2004.

18A.228 "State employee" defined.

For purposes of KRS 18A.228 to 18A.2286, the term "state employee" shall mean a person, including an elected public official, who is regularly employed by any department, board, agency, or branch of state, municipal, urban-county, charter county, or county government, and who is a contributing member of any of the retirement systems administered by the state and including any federally-funded time-limited employee. It shall also include a person who must fulfill the requirements established by the State Board of Education for eligibility and a person who is a present or future recipient of a retirement allowance from any of the Kentucky Retirement Systems who either satisfies the requirements of KRS 61.559 or who is board-authorized under KRS 61.702(1), including a beneficiary of a retired employee as defined in KRS 61.542 who is receiving a retirement allowance from any of the Kentucky Retirement Systems and shall include a member of the Legislators' Retirement Plan as provided in KRS 18A.2287.

Effective: July 15, 1994

History: Amended 1994 Ky. Acts ch. 350, sec. 3, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 92, sec. 4, effective July 14, 1992. -- Created 1988 Ky. Acts ch. 5, sec. 1, effective July 15, 1988.

Legislative Research Commission Note (7/13/90). 1990 Ky. Acts ch. 348, secs. 1 and 2 were enacted to be placed within the range of KRS 18A.228 to 18A.2284. However, because of space limitations within this range, these two sections were codified as KRS 18A.2285 and 18A.2286, respectively. Accordingly, the prior reference within this section to the former end section of the range has been changed by the Reviser of Statutes to read KRS 18A.2286, pursuant to his authority under KRS 7.136.

18A.2281 Repealed, 1998.

[Repealed]

18A.2282 Repealed, 1998.

[Repealed]

18A.2283 Repealed, 1998.

[Repealed]

18A.2284 Repealed, 1998.

[Repealed]

18A.2285 Repealed, 1998.

[Repealed]

18A.2286 Continuation coverage for member retired for disability.

If the hospital and medical insurance coverage provided under KRS 161.675 contains any limitation for pre-existing conditions, a member of the Teachers' Retirement System who retires for disability under KRS 161.661 shall be offered the right to continue coverage under the self-funded plan until any such limitation has expired. The terms and conditions for continuation of group policies under KRS 304.18-110 shall apply to the continuation coverage offered under this section. Nothing in KRS 304.18-110 shall be construed to prevent the operation of this section.

Effective: July 13, 1990

History: Created 1990 Ky. Acts ch. 348, sec. 2, effective July 13, 1990.

18A.2287 Availability of state health insurance plan coverage for certain former legislators.

A member of the Legislators' Retirement Plan who leaves the General Assembly after completing twelve (12) or more years service in the General Assembly and who has not received any benefits under the Legislators' Retirement Plan may elect to be covered under the state health insurance plan for state employees provided under this chapter if the member pays the premium.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 92, sec. 2, effective July 14, 1992.

18A.2288 Repealed, 2001.

[Repealed]

18A.2289 Cost-sharing requirements subject to KRS 304.1-200.

Notwithstanding any provision of this chapter to the contrary, the cost-sharing requirements in this chapter shall be subject to KRS 304.1-200.

Effective: July 15, 2026

History: Created 2026 Ky. Acts ch. 27, sec. 2, effective July 15, 2026.

Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 27, sec. 3, provides that this statute applies to policies, certificates, plans, and contracts issued or renewed on or after July 15, 2026.

18A.229 Repealed, 2001.

[Repealed]

Public Employees Deferred Compensation Plan Public Employees Deferred Compensation Plan

18A.230 Definitions for KRS 18A.230 to 18A.275.

As used in KRS 18A.230 to 18A.275, unless the context requires otherwise:

(1) "Asset" means any owned physical object or right having a monetary value;

(2) "Authority" means the Kentucky Public Employees' Deferred Compensation Authority;

(3) "Board" means the board of trustees as established by KRS 18A.245;

(4) "Deferred compensation" means a method which allows employees to authorize income to be deducted from their current earning and set aside to be paid at a later date;

(5) "Employee" means a person holding an office, position or employment in state government and agencies thereof and also includes persons in the public school system;

(6) "Financial planning" means the process of determining whether and how a participant can meet retirement goals through the proper management of financial resources;

(7) "Income" means earnings of a person while an employee of the state and agencies thereof or public school system;

(8) "Self-directed brokerage account" means a brokerage account of record offered by a broker-dealer selected by the board and registered with the United States Securities and Exchange Commission which allows participants to invest in securities registered with the United States Securities and Exchange Commission as alternative plan investments in addition to those designated by the board; and

(9) "Trust fund" means a fund consisting of assets received and held by a government unit or its designated custodian to be expended or invested in accordance with conditions of the trust.

Effective: June 27, 2025

History: Amended 2025 Ky. Acts ch. 141, sec. 1, effective June 27, 2025. -- Amended 2021 Ky. Acts ch. 111, sec. 1, effective June 29, 2021. -- Amended 2010 Ky. Acts ch. 122, sec. 1, effective July 15, 2010. -- Repealed, reenacted, and amended as KRS 18A.230, 1982 Ky. Acts ch. 448, sec. 46, effective July 15, 1982. -- Created 1974 Ky. Acts ch. 143, sec. 2. Formerly codified as KRS 18.510.

Legislative Research Commission Note (6/27/2025). Under the authority of KRS 7.136, the reviser of statutes has renumbered the subsections in this statute during codification to place the terms in alphabetical order. The words in the text were not changed.

18A.235 Kentucky Public Employees Deferred Compensation System established -- Corporate powers.

The Kentucky Public Employees Deferred Compensation System is established pursuant to the provisions of KRS 18A.230 to 18A.275, and shall transact all of its business and shall have the powers and privileges of a corporation, including but not limited to the following powers:

(1) The board shall have the power and authority to purchase fiduciary liability insurance; and

(2) The board shall reimburse or advance any trustee, officer, or employee for any legal expense resulting from a civil action arising out of the performance of his or her official duties. The hourly rate for any contract for legal services under this subsection shall not exceed the maximum hourly rate provided in the Legal Services Duties and Maximum Rate Schedule promulgated by the Government Contract Review Committee established pursuant to KRS 45A.705, unless a higher rate is specifically approved by the secretary of the Finance and Administration Cabinet or his or her designee.

Effective: June 27, 2025

History: Amended 2025 Ky. Acts ch. 141, sec. 2, effective June 27, 2025. -- Repealed, reenacted, and amended as KRS 18A.235, 1982 Ky. Acts ch. 448, sec. 47, effective July 15, 1982. -- Created 1974 Ky. Acts ch. 143, sec. 3. Formerly codified as KRS 18.520.

18A.240 Trust fund.

A state fund is hereby authorized, called "The Kentucky State Public Employees Deferred Compensation Trust Fund," which shall consist of all of the assets of the system as set forth in KRS 18A.230 to 18A.275. No part of this fund shall revert to the general fund of the Commonwealth.

Effective: July 15, 2008

History: Amended 2008 Ky. Acts ch. 181, sec. 2, effective July 15, 2008. -- Repealed, reenacted, and amended as KRS 18A.240, 1982 Ky. Acts ch. 448, sec. 48, effective July 15, 1982. -- Created 1974 Ky. Acts ch. 143, sec. 4. Formerly codified as KRS 18.530.

18A.245 Board of trustees -- Membership, terms, meetings -- Powers -- Executive director -- Annual financial report.

(1) The authority shall be administered by a board of trustees composed of seven (7) members, who shall be as follows:

(a) Secretary, Finance and Administration Cabinet, ex officio;

(b) Secretary of personnel, ex officio;

(d) The State Treasurer, ex officio; and

(e) Three (3) at-large members appointed by the Governor, who do not have a conflict of interest as provided by KRS 18A.262, one (1) of whom shall have at least five (5) years of investment or banking experience and one (1) of whom shall be a representative of a nonstate government employer.

(2) The members of the board appointed by the Governor shall serve for a period of four (4) years and the ex officio members of the board shall serve only for the period of their term of office. Each ex officio member may designate a proxy by written notice to the authority prior to call of order of each meeting, and the proxy shall be entitled to participate as a full voting member.

(3) Any vacancy which may occur shall be filled in the same manner provided for the selection of the particular member for a full term. Vacancies shall be filled for the unexpired term only.

(4) Membership on the board of trustees shall not be incompatible with any other office unless a constitutional incompatibility exists, and no member shall be subject to removal from office, except upon conviction of a felony, or of a misdemeanor involving moral turpitude.

(5) Board members who do not otherwise receive a salary or compensation from the State Treasury shall receive a per diem of one hundred dollars ($100) for each day they are in session or on official duty, and they shall be reimbursed for their actual and necessary expenses in accordance with state administrative regulations and standards applicable to state employees.

(6) The board shall meet at least once in each quarter of the year, and may meet in special session upon the call of the chair. It shall elect a chair and a vice chair. A majority of the members shall constitute a quorum, and all actions taken by the board shall be by affirmative vote of a majority of the members present.

(7) The authority shall be attached to the Personnel Cabinet for administrative purposes

only. The board may take but is not limited to the following actions:

(a) Appoint such employees as it deems necessary and fix the compensation for all employees of the board, subject to the approval of the secretary. The authority shall be headed by an executive director who shall be appointed by the board of trustees of the authority without the limitations imposed by KRS 12.040 and KRS Chapter 18A. The executive director of the authority and employees appointed by the board shall serve at its will and pleasure. All other staff of the authority shall be employed under KRS 18A.005 to 18A.200;

(b) Require such employees as it thinks proper to execute bonds for the faithful performance of their duties;

(d) Contract for such services as may be necessary for the operation or administration of deferred compensation plans authorized in KRS 18A.230 to 18A.275, including annual audits;

(e) Do all things, take all actions, and adopt plans for participation consistent with federal law and with the provisions of KRS 18A.230 to 18A.275, including but not limited to:

Amending the board's plan for the Kentucky Public Employees 401(k) Deferred Compensation Plan or the Kentucky Employees 457 Deferred Compensation Plan, or both such plans, to adopt, maintain, and terminate a deemed IRA program under Internal Revenue Code Section 408;
Amending the board's plan for the Kentucky Public Employees 401(k) Deferred Compensation Plan to adopt, maintain, and terminate a qualified Roth contribution program under Internal Revenue Code Section 402A; and
Adopting, maintaining, and terminating an Internal Revenue Code Section 403(b) plan for qualified employees;

(f) Contract with persons or companies duly licensed by the State of Kentucky and applicable federal regulatory agencies, at the cost of the trust fund or individual participant accounts, to provide investment advice and financial planning to participants in the plans, with respect to their selection of investments. The board may promulgate administrative regulations for provision of financial planning to participants in the plans;

(g) Contract with companies duly licensed by the State of Kentucky and applicable federal regulatory agencies to provide self-directed brokerage accounts to participants for their individual selection of plan account investments. Such contracts with self-directed brokerage account vendors shall be exempt from KRS Chapters 45 and 45A. The board may promulgate administrative regulations in accordance with KRS Chapter 13A for the provision of self-directed brokerage accounts to participants; and

(h) Promulgate administrative regulations in accordance with KRS Chapter 13A, provided the regulations are not inconsistent with KRS 18A.230 to 18A.275, necessary or proper in order to carry out the provisions of this section and duties authorized by KRS 18A.230 to 18A.275.

(8) The Attorney General, or an assistant designated by him or her, may act as legal adviser and attorney for the board. The board may also appoint legal counsel in accordance with KRS Chapter 12.

(9) The board shall prepare an annual financial report showing all receipts, disbursements, assets, and liabilities and shall submit a copy to the Governor and the Legislative Research Commission. All board meetings and records shall be open for inspection by the public.

(10) Notwithstanding any other evidence of legislative intent, it is hereby declared to be the controlling legislative intent that the provisions of KRS 18A.230 to 18A.275 shall conform with federal statutes or regulations and meet the qualification requirements under 26 U.S.C. secs. 401(a) and 457(b), applicable federal regulations, and other published guidance, and the board shall have the authority to promulgate administrative regulations, with retroactive effect if required under federal law, to conform the Kentucky Public Employees 401(k) Deferred Compensation Plan and the Kentucky Employees 457(b) Deferred Compensation Plan with federal statutes and regulations and to meet the qualification requirements under 26 U.S.C. secs. 401(a) and 457(b).

Effective: June 27, 2025

History: Amended 2025 Ky. Acts ch. 141, sec. 3, effective June 27, 2025. -- Amended 2021 Ky. Acts ch. 102, sec. 40, effective June 29, 2021; and repealed, reenacted, and amended 2021 Ky. Acts ch. 111, sec. 2, effective June 29, 2021. -- Amended 2019 Ky. Acts ch. 153, sec. 1, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 107, sec. 84, effective July 14, 2018. -- Amended 2012 Ky. Acts ch. 10, sec. 5, effective July 12, 2012. -- Amended 2008 Ky. Acts ch. 181, sec. 3, effective July 15, 2008. -- Amended 2002 Ky. Acts ch. 123, sec. 2, effective July 15, 2002. -- Amended 1998 Ky. Acts ch. 154, sec. 50, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 496, sec. 25, effective July 15, 1994. -- Amended 1988 Ky. Acts ch. 154, sec. 1, effective July 15, 1988. -- Amended 1984 Ky. Acts ch. 234, sec. 3, effective July 13, 1984. -- Repealed, reenacted, and amended as KRS 18A.245, 1982 Ky. Acts ch. 448, sec. 49, effective July 15, 1982. -- Created 1974 Ky. Acts ch. 143, sec. 5. Formerly codified as KRS 18.540.

Legislative Research Commission Note (12/13/2018). On December 13, 2018, the Kentucky Supreme Court ruled that the passage of 2018 SB 151 (2018 Ky. Acts ch. 107), did not comply with the three-readings rule of Kentucky Constitution Section 46 and that the legislation is, therefore, constitutionally invalid and declared void. That ruling applies to changes made to this statute in that Act.

18A.250 Deferred compensation system -- Automatic enrollment of employees hired after July 1, 2019 -- Automatic enrollment of justices, judges, and members of the General Assembly elected or appointed after July 1, 2021.

(1) The authority shall establish and maintain a deferred compensation plan for the employees of the State of Kentucky. Participation in such plan shall be by agreement between such employees and the authority and shall provide for the deferral of such amount of compensation as requested by the employee. Participating employees must authorize that such deductions be made from their wages for the purpose of participation in such program.

(2) The board is directed to develop and obtain, for the benefit of employees, a qualified employee plan that includes a qualified cash or deferred arrangement as described in Section 401(k) of the Internal Revenue Code. The board is directed to develop a program for participants to borrow from their account or accounts in the

plan. The plan shall be in addition to other plans offered by the board, and shall be offered to employees upon receipt of appropriate approval of the Internal Revenue Service or on January 1, 1985, whichever occurs later.

(3) Notwithstanding the provisions of KRS 337.060, agreements to participate and plan elections made by employees pursuant to subsections (1) and (2) of this section may be made in writing or by electronic record, signature, or contract as determined by the authority and in accordance with the provisions of KRS 369.101 to 369.120. Agreements and elections, including but not limited to hardship withdrawal applications, loan applications, beneficiary designations, and withdrawal requests made by participating employees under the plan, shall not be denied legal effect or enforceability if made electronically to the extent permitted by the authority.

(4) Notwithstanding KRS 337.060 and subsections (1) to (3) of this section:

(a) Each full-time employee of the executive, judicial, and legislative branches of Kentucky state government hired on or after July 1, 2019, shall be automatically enrolled in the 401(k) plan established pursuant to this section, and the employee's compensation shall be reduced by thirty dollars ($30) per month and contributed as a pre-tax deferral to the 401(k) plan unless and until the employee makes a deferral election under the terms of the 401(k) plan. Full-time status shall be determined by an employee's employer. The authority shall not be responsible or liable for any cost or liabilities resulting from such eligibility determinations made by an employer;

(b) Each new member of the General Assembly elected or appointed on or after July 1, 2021, upon taking office, shall be automatically enrolled in the 401(k) plan established pursuant to this section, and the member's compensation shall be reduced by thirty dollars ($30) per month and contributed as a pre-tax deferral to the 401(k) plan unless and until the member makes a deferral election under the terms of the 401(k) plan;

(c) Each new justice of the Supreme Court and each new regular judge of the Court of Appeals, Circuit Court, District Court, and Family Court elected or appointed on or after July 1, 2021, upon taking office, shall be automatically enrolled in the 401(k) plan, and the justice's or judge's compensation, as applicable, shall be reduced by thirty dollars ($30) per month and contributed as a pre-tax deferral to the 401(k) plan unless and until the justice or judge, as applicable, makes a deferral election under the terms of the 401(k) plan. This section shall not apply to special judges appointed under KRS 26A.020; and

(d) The automatic enrollment shall begin as of the employee's first paycheck or as soon as administratively feasible thereafter. The board shall select a default investment fund or funds, pursuant to applicable federal law, for investment of an employee's deferrals into the employee's account until the employee makes an investment election. The board shall amend the 401(k) plan for the implementation and administration of employee automatic enrollment, and the board shall have authority to implement automatic enrollment consistent with applicable requirements of the Internal Revenue Code of 1986, as amended. The board may promulgate administrative regulations for implementation of automatic enrollment.

Effective: June 29, 2021

History: Amended 2021 Ky. Acts ch. 111, sec. 3, effective June 29, 2021. -- Amended 2019 Ky. Acts ch. 48, sec. 1, effective June 27, 2019; and ch. 153, sec. 3, effective June 27, 2019. -- Amended 2010 Ky. Acts ch. 122, sec. 2, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 154, sec. 51, effective July 15, 1998. -- Amended 1990 Ky. Acts ch. 483, sec. 6, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 154, sec. 2, effective July 15, 1988. -- Amended 1984 Ky. Acts ch. 234, sec. 1, effective July 13, 1984. -- Repealed, reenacted, and amended as KRS 18A.250, 1982 Ky. Acts ch. 448, sec. 50, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 352, sec. 1. - - Created 1974 Ky. Acts ch. 143, sec. 6. Formerly codified as KRS 18.550.

18A.252 Inviolability of employee deferred compensation contributions to trust fund.

The contributions to the trust fund of participants' deferred compensation represent private employee contributions. The assets and earnings of the trust fund shall at all times be preserved, invested, and expended solely for the purposes of the trust and shall be held in trust for the exclusive benefit of the participants and beneficiaries, and no right or interest therein shall exist in favor of the Commonwealth. The assets and earnings shall not be transferred or used by the Commonwealth for any purposes other than the purposes of the trust fund.

Effective: July 15, 2008

History: Created 2008 Ky. Acts ch. 181, sec. 1, effective July 15, 2008.

18A.255 Investments -- Limitation of liability -- Standards of conduct.

(1) Subject to subsections (3) and (4) of this section but notwithstanding any other provision of KRS 18A.230 to 18A.275, funds held for the state public employees deferred compensation trust fund pursuant to agreement between the state and participating employees may be invested in such investments as are deemed appropriate by the trustees, including but not limited to annuity contracts. Agreements may be made in writing or by electronic record, signature, or contract as determined by the authority in accordance with the provisions of KRS 369.101 to 369.120 and shall not be denied legal effect or enforceability if made electronically to the extent permitted by the authority.

(2) Funds deposited to the credit of the trust fund from payroll deductions made pursuant to KRS 18A.250 shall be temporarily invested as provided in KRS 42.500 until such funds are invested pursuant to the deferred compensation agreements between the state and participating employees and actually credited to accounts for plan participants. Notwithstanding KRS 42.500, interest earned from such temporary investments and by the trust fund and the corpus of the trust fund shall be used to defray the expenses of administering the deferred compensation plans, including but not limited to all business and operational expenses, premiums for general and fiduciary liability insurance and deductible costs, and costs to settle claims against the authority, its plans, and trustees, as determined by the board in the best interest of plan participants.

(3) Neither the authority nor the board shall be liable for any losses or claims due to a participant's actions in connection with the investment advice or financial planning provided to the participant by operation of KRS 18A.245(7)(f) or other statute or administrative regulation. The authority and board shall have no duty or obligation to monitor, review, or assess the specific investment advice or financial planning provided to a participant.

(4) (a) The participant shall have sole responsibility for evaluation, selection, and monitoring of investments held in his or her self-directed brokerage account, and shall at all times be and remain responsible and liable for any losses in his or her self-directed brokerage account. Expenses charged for use of a self- directed brokerage account shall be paid solely by the participant.

(b) Neither the authority nor the board shall be liable for any losses, expenses, liabilities, or claims due to a participant's actions in connection with a self- directed brokerage account provided to the participant by operation of KRS 18A.245(7)(g) or other statute or administrative regulation. The authority and board shall have no duty or obligation to monitor, review, or assess the investments held in a participant's self-directed brokerage account or the self- directed brokerage account's investment performance. Neither the authority nor the board shall be responsible for review or evaluation of fees of a self- directed brokerage account, including but not limited to fees of a self-directed brokerage account's custodian or broker. The board's selection of a restricted asset list for self-directed brokerage accounts creates no presumption that the board has any obligation or duty to select, monitor, or deem prudent assets which may be invested in a self-directed brokerage account.

(5) (a) A trustee shall discharge his or her duties as a trustee, including his or her duties as a member of a committee:

In good faith;
On an informed basis; and
In a manner he or she honestly believes to be in the best interest of the authority and its plans and trusts.

(b) A trustee discharges his or her duties on an informed basis if, when he or she makes an inquiry into the business affairs of the board or authority or into a particular action to be taken or decision to be made, he or she exercises the care an ordinary prudent person in a like position would exercise under similar circumstances.

(c) In discharging his or her duties, a trustee may rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:

One (1) or more officers or employees of the board whom the trustee honestly believes to be reliable and competent in the matters presented;
Legal counsel, public accountants, or other persons as to matters the trustee honestly believes are within the person's professional or expert competence; or
A committee of the board of trustees of which he or she is not a member if the trustee honestly believes the committee merits confidence.

(d) A trustee shall not be considered as acting in good faith if he or she has knowledge concerning the matter in question that makes reliance otherwise permitted by paragraph (c) of this subsection unwarranted.

(e) Any action taken as a trustee, or any failure to take any action as a trustee, shall not be the basis for monetary damages or injunctive relief unless:

The trustee has breached or failed to perform the duties of the trustee's office in compliance with this section; and
In the case of an action for monetary damages, the breach or failure to perform constitutes willful misconduct or wanton or reckless disregard for human rights, safety, or property.

(f) A person bringing an action for monetary damages under this section shall have the burden of proving by clear and convincing evidence the provisions of paragraph (e)1. and 2. of this subsection, and the burden of proving that the breach or failure to perform was the legal cause of damages suffered by the authority or its plans or trusts.

Effective: June 27, 2025

History: Amended 2025 Ky. Acts ch. 141, sec. 4, effective June 27, 2025. -- Amended 2021 Ky. Acts ch. 111, sec. 4, effective June 29, 2021. -- Amended 2010 Ky. Acts ch. 122, sec. 3, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 181, sec. 4, effective July 15, 2008. -- Repealed, reenacted, and amended as KRS 18A.255, 1982 Ky. Acts ch. 448, sec. 51, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 352, sec. 2, effective July 15, 1980. -- Created 1974 Ky. Acts ch. 143, sec. 7. Formerly codified as KRS 18.560.

18A.260 Regulations of investments.

Assets held for the state public employees deferred compensation trust fund shall be invested as permitted by KRS 18A.230 to 18A.275. However, investments by participants in self-directed brokerage accounts shall be limited to securities registered with the United States Securities and Exchange Commission only.

Effective: June 27, 2025

History: Amended 2025 Ky. Acts ch. 141, sec. 5, effective June 27, 2025. -- Repealed, reenacted, and amended as KRS 18A.260, 1982 Ky. Acts ch. 448, sec. 52, effective July 15, 1982. -- Created 1974 Ky. Acts ch. 143, sec. 9. Formerly codified as KRS 18.570.

18A.262 Conflicts of interest for Kentucky Public Employees Deferred Compensation Authority employees and trustees.

(1) No trustee or employee of the board or authority shall:

(a) Have any interest, direct or indirect, in the gains or profits of any investment or any other legal, business, or financial transaction made by the board or authority, except that any such trustee or employee may be a member, employee, or beneficiary of the plans administered by the board or authority;

(b) Directly or indirectly, for himself or herself or as an agent, use the assets of the plans administered by the board or authority, except to make current and necessary payments authorized by the board or authority;

(c) Become an endorser or surety or in any manner an obligor for moneys loaned by or borrowed from the board or authority;

(d) Have a contract or agreement with the board or authority, individually or through a business owned by the trustee or the employee;

(e) Use his or her official position with the board or authority to obtain a financial gain or benefit or advantage for himself or herself or a family member;

(f) Use confidential information acquired during his or her tenure with the board or authority to further his or her own economic interests or that of another person; or

(g) Hold outside employment with, or accept compensation from, any person or business with which he or she has involvement as part of his or her official position with the board or authority. The provisions of this paragraph shall not prohibit a trustee from serving as an employee of an agency participating in the plans.

(2) No trustee or employee of the board or authority, who has served as a trustee or employee of the board or authority on or after July 1, 2017, shall have any interest, direct or indirect, in the gains or profits of any investment or any other legal, business, or financial transaction made by the board or authority for a period of five

(5) years following termination of his or her position, except that any such trustee or employee may be a member, employee, or beneficiary of the plans administered by the board or authority.

(3) (a) No person who is serving as a member of the General Assembly or is a public servant as defined by KRS 11A.010(9) shall have any interest, direct or indirect, in the gains or profits of any investment or any other legal, business, or financial transaction made by the board or authority, except that any such trustee or public servant may be a member, employee, or beneficiary of the plans administered by the board or authority.

(b) No person who was serving as a member of the General Assembly on or after July 1, 2017, or was serving as a public servant as defined by KRS 11A.010(9) on or after July 1, 2017, shall have any interest, direct or indirect, in the gains or profits of any investment or any other legal, business, or financial transaction made by the board or authority for a period of five (5) years following termination of his or her position, except that any such member or public servant may be a member, employee, or beneficiary of the plans administered by the board or authority.

Effective: June 29, 2021

History: Repealed and reenacted 2021 Ky. Acts ch. 111, sec. 5, effective June 29, 2021. -- Created 2018 Ky. Acts ch. 107, sec. 82, effective July 14, 2018.

18A.265 Deferred compensation program to be in addition to retirement or benefit programs -- Coordination of programs.

(1) Such a deferred compensation program shall be in addition to any retirement or any other benefit program provided by law for employees of this state. Any income deferred under such a plan shall continue to be included as regular compensation for the purpose of computing the retirement and pension benefits earned by any employee. But, any sum so deducted shall not be included in the computation of any income taxes withheld on behalf of any such employee.

(2) The board shall, jointly with the board of trustees of the Kentucky retirement systems, prepare and implement a program for advising employees on coordinating deferred compensation plans and retirement programs in order to achieve their retirement objectives.

Effective: July 15, 1982

History: Amended 1984 Ky. Acts ch. 234, sec. 2, effective July 13, 1984. -- Repealed and reenacted as KRS 18A.265, 1982 Ky. Acts ch. 448, sec. 53, effective July 15, 1982. -- Created 1974 Ky. Acts ch. 143, sec. 8. Formerly codified as KRS 18.580.

18A.270 Local programs.

(1) Any city, county, or other political subdivision or combination of these entities may establish for its employees a deferred compensation program. Notwithstanding the provisions of KRS 337.060, participation shall be by written agreement or by electronic record, signature, or contract and in accordance with the provisions of KRS 369.101 to 369.120 between such employees and the legislative authority of the city, county, or other political subdivision providing for the deferral of such compensation and the subsequent investment and administration of such funds. Agreements and elections, including but not limited to hardship withdrawal applications, loan applications, beneficiary designations, and withdrawal requests made by participating employees under the plans, shall not be denied legal effect or enforceability if made electronically to the extent permitted by the authority.

(2) Such subdivision, acting through its legislative authority, may appoint such agency or department as it deems appropriate to establish and administer a deferred compensation plan pursuant to KRS 18A.230 to 18A.275. For purposes of funding such agreements between the city, county, or other such political subdivision and the participating employees, the agency or department as designated by the legislative authority to establish and administer such plans may invest such funds in such investments deemed appropriate by said agency or department, including, but not limited to annuity contracts.

(3) In no case shall such investment be other than permitted by KRS 18A.230 to 18A.275 and not prohibited by Section 179 of the Kentucky Constitution and must be offered by such persons or companies authorized and duly licensed by the State of Kentucky and applicable federal regulatory agencies to offer such insurance or investment programs in compliance with all relevant provisions of KRS 18A.230 to 18A.275.

(4) Such a deferred compensation program is in addition to any retirement or pension system or any other benefit program provided by law for employees of the city, county, or other political subdivision. Any income deferred under such a plan shall continue to be included as regular compensation for the purpose of computing the retirement and pension benefits earned by any employee but any sum so deducted shall not be included in the computation of any income taxes withheld for any such employee.

(5) This section does not limit the power or authority of any municipal corporation or other political subdivision to provide other such plans or programs for deferring compensation of their officials and employees.

Effective: July 15, 2010

History: Amended 2010 Ky. Acts ch. 122, sec. 4, effective July 15, 2010. -- Repealed, reenacted, and amended as KRS 18A.270, 1982 Ky. Acts ch. 448, sec. 54, effective July 15, 1982. -- Created 1974 Ky. Acts ch. 143, sec. 10. Formerly codified as KRS 18.590.

18A.275 Custodian of funds.

The board shall select a custodian of the funds collected under KRS 18A.230 to 18A.275, and the authority shall administer the funds so collected as provided in this chapter.

Effective: June 27, 2019

History: Amended 2019 Ky. Acts ch. 153, sec. 2, effective June 27, 2019. -- Repealed, reenacted, and amended as KRS 18A.275, 1982 Ky. Acts ch. 448, sec. 55, effective July 15, 1982. -- Created 1974 Ky. Acts ch. 143, sec. 11. Formerly codified as KRS 18.600.

Annual Salary Increments Annual Salary Increments

18A.350 Definition of employee.

As used in KRS 18A.355 "employee" means any officer or employee of the executive branch of government. The provisions of KRS 18A.355 do not apply to employees of the General Assembly, the Legislative Research Commission, or the Court of Justice, or to any constitutional officer.

Effective: July 15, 1986

History: Amended 1986 Ky. Acts ch. 494, sec. 26, effective July 15, 1986. -- Created 1982 Ky. Acts ch. 456, sec. 1, effective July 15, 1982.

18A.355 Formula for increasing base salary or wages of state employees -- Percentage of annual increment may be reduced.

(1) An annual increment of not less than five percent (5%) of the base salary or wages of each state employee shall be granted to each employee on his or her anniversary

date. The employee's base salary or wages shall be increased by the amount of the annual increment. When any increment due to a promotion, reallocation, reclassification or salary adjustment is granted an employee, the employee's base salary or wages shall be increased by the amount of such increment. An employee's base salary or wages shall not be increased by the amount of lump-sum payment awarded under KRS 18A.110(7)(i).

(2) The branch budget recommendation submitted to the General Assembly under KRS Chapter 48 shall include a request for the amount of the annual increment expressed as a percentage of each employee's base salary or wages and a request for the total appropriation needed to fund the annual increment. The annual increment shall be uniform for all employees. The financial plan enacted under the provisions of KRS 48.300 shall contain the annual increment expressed as a percentage of each employee's base salary or wages, and the total appropriation needed to fund the annual increment.

(3) The budget reduction plan submitted and enacted under the provisions of KRS Chapter 48 shall provide that a reduction of the annual increment granted under this section shall be made only after other cost savings measures, as provided by KRS 18A.113 are taken. Any such reduction shall be uniform for all state employees and shall comply with the provisions of this chapter and KRS Chapter 48.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 35, sec. 12, effective June 29, 2023. -- Amended 2000 Ky. Acts ch. 501, sec. 3, effective July 14, 2000. -- Amended 1986 Ky. Acts ch. 494, sec. 22, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 111, sec. 168, effective July 13, 1984. -- Created 1982 Ky. Acts ch. 456, sec. 2, effective July 15, 1982. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. IV, 2 at 2165.

Legislative Research Commission Note (10/19/2004). 2004 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 10, provides, "Notwithstanding KRS 18A.355(1): (1) A cost-of-living adjustment of two percent is provided in fiscal year 2004- 2005 on the base salary or wages of each eligible state employee on his or her anniversary date and shall apply retroactively to July 1, 2004; and (2) Effective January 1, 2005, an additional cost-of-living adjustment of one percent is provided on the base salary or wages of each eligible state employee."

18A.360 Repealed, 1986.

[Repealed]

State Employee Workers' Compensation State Employee Workers' Compensation

18A.370 Definitions for KRS 18A.375 to 18A.385 -- Applicability of KRS 64.368 if population decreases below 70,000.

For the purposes of KRS 18A.375 to 18A.385, the term "state employee" shall mean all persons, including elected public officials, who are regularly employed by the executive, judicial, and legislative departments of government, except employees of the Transportation Cabinet and the University of Kentucky who have their own self- insurance fund. The term "state employee" shall also include volunteer firefighters and volunteer ambulance personnel; persons who are regularly employed by the Fayette County Health Department; and persons who are regularly employed by court clerks and sheriffs of counties with a population of seventy thousand (70,000) or more. If a county's population that equaled or exceeded seventy thousand (70,000) is less than seventy thousand (70,000) after the most recent federal decennial census, then the provisions of KRS 64.368 shall apply.

Effective: July 15, 2002

History: Amended 2002 Ky. Acts ch. 71, sec. 9, effective July 15, 2002. -- Amended 1992 Ky. Acts ch. 220, sec. 2, effective January 1, 1994. -- Created 1990 Ky. Acts ch. 490, sec. 1, effective July 13, 1990.

18A.375 State employee workers' compensation fund.

(1) There is hereby established a state employee workers' compensation fund which shall be administered by the Personnel Cabinet's Office of Employee Relations. The purpose of this fund shall be to self-insure workers' compensation benefits for state employees.

(2) All moneys contributed by participants of the fund, or derived from federal funds, shall be credited to and constitute a part of the state employee workers' compensation fund.

(3) The State Treasurer, with the approval of the Finance and Administration Cabinet, may invest the state employee benefit workers' compensation fund. Any income derived from these investments, or dividends, shall be credited to and become a part of the general fund. Any moneys remaining in the fund after all claims, premiums or subscription charges, and other expenses have been paid, shall be retained in the

fund. All moneys remaining in the state employee workers' compensation fund on July 1, or deposited thereafter, shall be deemed a trust and agency account and shall not lapse, but shall be continuously appropriated only for the purposes specified in KRS 18A.375 to 18A.385.

Effective: July 12, 2012

History: Amended 2012 Ky. Acts ch. 10, sec. 6, effective July 12, 2012. -- Amended 1998 Ky. Acts ch. 154, sec. 52, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 116, sec. 2, effective July 15, 1994. -- Created 1990 Ky. Acts ch. 490, sec. 2, effective July 13, 1990. 2020-2022 Budget Reference. See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. V, F, 2 at 941.

18A.380 Administrative regulations.

The Personnel Cabinet shall promulgate administrative regulations necessary for the administration of the state employee workers' compensation fund established by KRS 18A.375, the actuarial soundness of the fund, the integrity of the fund, the purchase of reinsurance or excess insurance, and the expenditure of moneys from the fund.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 53, effective July 15, 1998. -- Created 1990 Ky. Acts ch. 490, sec. 3, effective July 13, 1990.

18A.385 Actuarial analysis of fund.

At least every two (2) years, the Personnel Cabinet shall have an actuary familiar with workers' compensation insurance prepare an actuarial analysis of the state employee workers' compensation fund established by KRS 18A.375 and make any recommendation that he deems appropriate. The department may, at any time, request an actuary to evaluate the adequacy of the rates of contribution. These rates may be adjusted if the adjustment is recommended by the actuary.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 154, sec. 54, effective July 15, 1998. -- Created 1990 Ky. Acts ch. 490, sec. 4, effective July 13, 1990.

18A.400 Repealed, 2017.

[Repealed]

18A.405 Repealed, 2017.

[Repealed]

18A.410 Repealed, 2017.

[Repealed]

18A.415 Repealed, 2017.

[Repealed]

18A.420 Repealed, 2017.

[Repealed]

18A.425 Repealed, 2017.

[Repealed]

18A.430 Repealed, 2017.

[Repealed]

18A.435 Repealed, 2017.

[Repealed]

18A.440 Repealed, 2017.

[Repealed]

18A.445 Repealed, 2017.

[Repealed]

18A.450 Repealed, 2017.

[Repealed]

Penalties Penalties

18A.990 Penalties.

(1) Any person who willfully violates any provision of KRS 18A.005 to 18A.200 or of the rules shall be guilty of a misdemeanor, and shall upon conviction be punished therefor with a sentence of from thirty (30) days to a maximum of six (6) months in jail.

(2) Any person who is convicted of a misdemeanor under KRS 18A.005 to 18A.200 shall, for a period of five (5) years, be ineligible for appointment to or employment in a position by the Commonwealth, and if he is an officer or employee of the Commonwealth, shall forfeit his office or position.

(3) Any officer or employee of the classified service who willfully violates any of the provisions of KRS 18A.140 shall forfeit his office or position, and for one (1) year shall be ineligible for any office or position in the Commonwealth's service. Violation of KRS 18A.140 shall constitute a misdemeanor subject to a sentence of from thirty (30) days to a maximum of six (6) months in jail.

Effective: July 15, 1982

History: Repealed, reenacted, and amended as KRS 18A. 990, 1982 Ky. Acts ch. 448, sec. 56, effective July 15, 1982. -- Created 1960 Ky. Acts ch. 63, secs. 19 and 23. Formerly codified as KRS 18.990.