(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;

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Terms Used In Kentucky Statutes 18A.262

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Board: means the Personnel Board created by KRS §. See Kentucky Statutes 18A.005
  • Contract: A legal written agreement that becomes binding when signed.
  • 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. See Kentucky Statutes 18A.005
  • 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. See Kentucky Statutes 18A.005
  • Statute: A law passed by a legislature.
  • Trustee: A person or institution holding and administering property in trust.

(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.
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. This statute was created in Section 82 of that Act.