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AN ACT relating to the Council on Postsecondary Education's oversight of public 1
postsecondary education institutions. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 164.096 is amended to read as follows: 4
(1) (a) 1. No later than June 30 of each year, the president or chief executive 5
officer of each state institution or independent institution that is licensed 6
or overseen by the Council on Postsecondary Education, and the chair of 7
the governing board of each instituti on, shall jointly execute a signed, 8
sworn statement attesting to whether the institution: 9
a.[1.] Was in sound financial standing with a stable financial base to 10
support the mission of the institution and the scope of its programs 11
and services during the previous fiscal year; 12
b.[2.] Underwent an institutional audit for the most recent fiscal year 13
prepared by an independent certified public accountant or 14
appropriate government auditing agency employing the 15
appropriate audit guide during the previous fiscal year; and 16
c.[3.] Has an annual budget for the upcoming fiscal year that is preceded 17
by sound planning, su bject to sound fiscal procedures, and 18
approved by the president of the institution and the chair of the 19
governing board. 20
2.[(b)] In executing the statement required by subparagraph 1.[paragraph 21
(a)] of this paragraph[subsection], a president or chief execu tive officer 22
and chair of the governing board of an institution may reasonably rely 23
upon the representations of an employee of the institution that is 24
responsible for the financial management and accounting of the 25
institution, including the treasurer or ch ief financial officer of the 26
institution, and external financial service providers. 27
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(b)[(2)] Each institution shall provide the sworn statement required by 1
paragraph (a)[subsection (1)] of this subsection[section] to the president of 2
the Council on Postsec ondary Education, the chairs of the Budget Review 3
Subcommittee on Education of the Interim Joint Committee on 4
Appropriations and Revenue, and the co -chairs of the Interim Joint 5
Committee on Appropriations and Revenue. 6
(c)[(3)] If an institution fails to pr ovide a statement as required by paragraph 7
(b)[subsection (2)] of this subsection[section], the Council on Postsecondary 8
Education shall have the authority to conduct an investigation and request any 9
financial documentation necessary to inform a report on the financial data 10
required by paragraph (a) [subsection (1)] of this subsection[section]. The 11
council shall report its findings to the chairs of the Budget Review 12
Subcommittee on Education of the Interim Joint Committee on 13
Appropriations and Revenue and the co-chairs of the Interim Joint Committee 14
on Appropriations and Revenue. 15
(4) (a) Each public postsecondary education institution shall provide the Council 16
on Postsecondary Education: 17
1. Its annual operating budget by August 1 of each fiscal year; and 18
2. A quarterly budget -to-actual report, in a format approved by the 19
council, within thirty (30) days following the end of each fiscal 20
quarter. 21
(b) Upon the request of the Council on Postsecondary Education, each public 22
postsecondary education institution shal l provide financial information 23
relevant to the council's review of the institution's annual operating budget 24
or quarterly budget-to-actual report, including but not limited to: 25
1. Detailed financial transaction information; 26
2. Bank statements; 27
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3. Investment reports and statements; 1
4. Payroll and staffing information; and 2
5. Other financial information as requested by the council. 3
Section 2. KRS 164.013 is amended to read as follows: 4
(1) The Council on Postsecondary Education shall set the qualifications for the position 5
of president of the council. Except for the first president appointed under subsection 6
(2) of this section, the council may employ a search firm and conduct a nationwide 7
search for candidates. Any search firm employed by the council shall consider, 8
interview, and propose three (3) or more candidates for the position of president. 9
The council may seek additional names from the search firm or from other sources. 10
(2) In the selection of candidates for the first president of the Council on Postsecondary 11
Education, the Strategic Committee on Postsecondary Education shall serve as a 12
search committee, employing a search firm for assistance. The committee shall 13
recommend three (3) candidates to be considered by the council and shall repeat 14
this process until it finds a satisfactory person to appoint as the [ first] president of 15
the council. 16
(3) The president shall possess an excellent academic and administrative background, 17
have strong communication skills, have sign ificant experience and an established 18
reputation as a professional in the field of postsecondary education, and shall not 19
express, demonstrate, or appear to have an institutional or regional bias in his or her 20
actions. 21
(4) The president shall be the primar y advocate for postsecondary education and 22
advisor to the Governor and the General Assembly on matters of postsecondary 23
education in Kentucky. As the primary advocate for postsecondary education, the 24
president shall work closely with the committee and the elected leadership of the 25
Commonwealth to ensure that they are fully informed about postsecondary 26
education issues and that the council fully understands the goals for postsecondary 27
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education that the General Assembly has established in KRS 164.003(2). 1
(5) The president may design and develop for review by the council new statewide 2
initiatives in accordance with the strategic agenda. 3
(6) (a) The council shall set the salary of the president at an amount no greater than 4
the salary the president was receiving on January 1, 2012. 5
(b) The salary of the president shall be exempt from state employee salary 6
limitations as set forth in KRS 64.640. 7
(7) The president shall be accorded a contract to serve for a term not to exceed five (5) 8
years, which is renewable at the pleasure of the council. 9
(8) The president shall determine the staffing positions and organizational structure 10
necessary to carry out the responsibilities of the council and may employ staff. All 11
personnel positions of the Council on Higher Education, as of May 30, 1997, with 12
the exception of the position of executive director, shall be transferred to the 13
Council on Postsecondary Education. All personnel shall be transferred at the same 14
salary and benefit levels. Notwithstanding the provisions of KRS 11 A.040, any 15
person employed by the Council on Higher Education prior to May 30, 1997, may 16
accept immediate employment with any governmental entity or any postsecondary 17
education organization or institution in the Commonwealth and may carry out the 18
employment duties assigned by that entity, organization, or institution. 19
(9) The president shall be responsible for the day -to-day operations of the council and 20
shall report and submit annual reports on the strategic implementation plan of the 21
strategic agenda, carry out policy and program directives of the council, prepare and 22
submit to the council for its approval the proposed budget of the council, and 23
perform all other duties and responsibilities assigned by state law. 24
(10) With approval of the council, the pres ident may enter into agreements with any 25
state agency or political subdivision of the state, any state postsecondary education 26
institution, or any other person or entity to enlist staff assistance to implement the 27
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duties and responsibilities under KRS 164.020. 1
(11) The president shall consult with boards of regents and boards of trustees in their 2
respective presidential selection and evaluation processes to ensure institutional 3
progress towards statewide goals for postsecondary education in accordance with 4
the strategic agenda. 5
(12) The president shall be reimbursed for all actual and necessary expenses incurred in 6
the performance of all assigned duties and responsibilities. 7