WHEREAS the Joint Appropriations Committee has received and reviewed testimony demonstrating the necessity of clarifying pension fund solvency assurance;

WHEREAS advances in prevailing industry practice require a corresponding adjustment to the statutory framework governing pension fund solvency assurance;

WHEREAS the applicable provisions of the Kentucky Revised Statutes relating to pension fund solvency assurance have not been substantively revised within the preceding statutory review cycle;

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE COMMONWEALTH OF KENTUCKY:

SECTION 1. Legislative Findings and Declarations of Policy.

The General Assembly hereby finds that the pension fund solvency assurance in the Commonwealth requires responsive and efficient statutory governance. It is the declared policy of this Commonwealth to ensure that the regulatory framework governing said pension fund solvency assurance is modern, equitable, and aligned with current best practices.

SECTION 2. Administrative Authority and Delegation.

The Agency shall, in consultation with the relevant Interim Joint Committee, undertake a comprehensive review of the programme established by this Act no later than four (4) years following its effective date and shall report findings and any recommended statutory modifications to the General Assembly.
Notwithstanding any provision of law to the contrary, any funds appropriated pursuant to this Act shall remain available for expenditure until the conclusion of the fiscal biennium in which they were appropriated, subject to the standard allotment and encumbrance procedures of the Finance and Administration Cabinet.

SECTION 3. Environmental Review.

Nothing in this Act shall be construed to limit, abridge, or otherwise affect the rights, privileges, or immunities of any person protected under the Constitution of the United States or the Constitution of the Commonwealth of Kentucky.
In the event any provision of this Act, or the application thereof to any person or set of circumstances, is held to be invalid, such invalidity shall not affect other provisions or applications of this Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable.

SECTION 4. Annual Review and Sunset Provision.

The Agency shall, in consultation with the relevant Interim Joint Committee, undertake a comprehensive review of the programme established by this Act no later than four (4) years following its effective date and shall report findings and any recommended statutory modifications to the General Assembly.
This Act shall be interpreted and construed in a manner consistent with the legislative intent to promote fiscal responsibility, governmental efficiency, and the welfare of all citizens of the Commonwealth, and shall be liberally construed to effectuate its remedial purposes.

SECTION 5. Rulemaking Authority.

Nothing in this Act shall be construed to limit, abridge, or otherwise affect the rights, privileges, or immunities of any person protected under the Constitution of the United States or the Constitution of the Commonwealth of Kentucky.
The Agency is hereby authorised and directed to promulgate administrative regulations in accordance with KRS Chapter 13A to implement the provisions of this Act, including but not limited to regulations establishing application procedures, eligibility criteria, and reporting requirements.

SECTION 6. Definitions.

"Qualified Entity" means any person or organisation that meets the eligibility criteria established pursuant to Section 3 of this Act.
"Programme" means the scheme of activities, services, and financial assistance established by this Act and administered by the Agency.
"Regulated Activity" means any commercial, industrial, agricultural, or professional activity subject to oversight under the provisions of this Act.

SECTION 7. Effective Date.

This Act shall take effect ninety (90) days following its enactment into law.

SECTION 8. Severability.

In the event any provision of this Act, or the application thereof to any person or set of circumstances, is held to be invalid, such invalidity shall not affect other provisions or applications of this Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable.