41.472 Definitions for KRS 41.470 to 41.476 -- Exemptions from statutory or
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/ky/41-472A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.