KRS § 41.472 — KY Code / Title VI / Chapter 41 / Section 41.472
41.472 Definitions for KRS 41.470 to 41.476 -- Exemptions from statutory or common law obligations
Status: in_force

41.472 Definitions for KRS 41.470 to 41.476 -- Exemptions from statutory or

common law obligations.

(1) As used in KRS 41.470 to 41.476:

(a) "Company" means a for-profit sole proprietorship, organization, association,

corporation, partnership, joint venture, limited partnership, limited liability

partnership, limited liability company, or other entity or business association,

including a wholly owned subsidiary, majority-owned subsidiary, parent

company, or affiliate of those entities or business associations, that exists to

make a profit;

(b) "Direct holdings" means, with respect to a financial company, all securities of

that financial company held directly by a state governmental entity in an

account or fund in which a state governmental entity owns all shares or

interests;

(c) "Energy company boycott" means, without an ordinary business purpose,

refusing to deal with, terminating business activities with, or otherwise taking

any action that is intended to penalize, inflict economic harm on, or limit

commercial relations with a company because the company:

1. Engages in the exploration, production, utilization, transportation, sale,

or manufacturing of fossil fuel-based energy and does not commit or

pledge to meet environmental standards beyond applicable federal and

state law; or

2. Does business with a company described in subparagraph 1. of this

paragraph;

(d) "Financial company" means a publicly traded financial services, banking, or

investment company;

(e) "Indirect holdings" means, with respect to a financial company, all securities

of that financial company held in an account or fund, such as a mutual fund,

managed by one (1) or more persons not employed by a state governmental

entity, in which the state governmental entity owns shares or interests together

with other investors not subject to the provisions of this chapter. The term

does not include money invested under a plan described by Section 401(k) or

457 of the Internal Revenue Code;

(f) "Listed financial company" means a financial company listed by the

Treasurer;

(g) "State governmental entity" means any state board, bureau, cabinet,

commission, department, authority, officer, or other entity in the executive

branch of state government that makes investments, deposits, or transactions

in excess of one million dollars ($1,000,000) annually; and

(h) "Treasurer" means the State Treasurer.

(2) Notwithstanding any provision of law to the contrary, with respect to actions taken

in compliance with KRS 41.470 to 41.476, including all good-faith determinations

regarding financial companies as required by KRS 41.470 to 41.476, a state

governmental entity and the Treasurer are exempt from any conflicting statutory or

common law obligations, including any obligations with respect to making

investments, divesting from any investment, preparing or maintaining any list of

financial companies, or choosing asset managers, investment funds, or investments

for the state governmental entity’s securities portfolios.

(3) A state governmental entity shall not be subject to the requirements of KRS 41.470

to 41.476 if the state governmental entity determines that the requirements would be

inconsistent with its fiduciary responsibility with respect to the investment of entity

assets or other duties imposed by law relating to the investment of entity assets.