AN ACT relating to the provision of financial services and products by credit unions.

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AN ACT relating to the provision of financial services and products by credit 1
unions. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 66.480 is amended to read as follows: 4
(1) The governing body of a city, county, urban -county, charter county, school district 5
(provided that its general procedure for action is approved by the Kentucky Board 6
of Education), or other local governmental unit or political subdivision, may invest 7
and reinvest money subject to its control and jurisdiction in: 8
(a) 1. Obligations of the United States and of its agencies and 9
instrumentalities, including obligations subject to repurchase 10
agreements, if delivery of these obligations subject to repurchase 11
agreements is taken either directly or through an authorized custodian. 12
2. These investments may be accomplished through repurchase agreements 13
reached with sources including but not limited to: 14
a. National or state banks chartered in Kentucky; and 15
b. State or federally chartered credit unions having a physical 16
presence in Kentucky; 17
(b) Obligations and contracts for future delivery or purchase of obligations 18
backed by the full faith and credit of the United States or a United States 19
government agency, including but not limited to: 20
1. United States Treasury; 21
2. Export-Import Bank of the United States; 22
3. Farmers Home Administration; 23
4. Government National Mortgage Corporation; and 24
5. Merchant Marine bonds; 25
(c) Obligations of any corporation of the United States government, including but 26
not limited to: 27
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1. Federal Home Loan Mortgage Corporation; 1
2. Federal Farm Credit Banks; 2
3. Bank for Cooperatives; 3
4. Federal Intermediate Credit Banks; 4
5. Federal Land Banks; 5
6. Federal Home Loan Banks; 6
7. Federal National Mortgage Association; and 7
8. Tennessee Valley Authority; 8
(d) Certificates of deposit or other interest -bearing accounts issued through a 9
bank,[ or] savings and loan institution , or credit union, having a physical 10
presence in Kentucky which are: 11
1. Insured by the Federal Deposit Insurance Corporation , the National 12
Credit Union Administration, or a similar entity; or[ which are ] 13
2. Collateralized, to the extent uninsured, by any obligations, including 14
surety bonds, permitted by KRS 41.240(4); 15
(e) Uncollateralized certificates of deposit issued by any bank , [or ]savings and 16
loan institution, or credit union, having a physical presence in Kentucky rated 17
in one (1) of the three (3) highest categories by a competent rating agency; 18
(f) Bankers' acceptances for banks rated in one (1) of the three (3) highest 19
categories by a competent rating agency; 20
(g) Commercial paper rated in the highest category by a competent rating agency; 21
(h) Bonds or certificates of indeb tedness of this state and of its agencies and 22
instrumentalities; 23
(i) Securities issued by a state or local government, or any instrumentality of 24
agency thereof, in the United States, and rated in one (1) of the three (3) 25
highest categories by a competent rating agency; 26
(j) Shares of mutual funds and exchange traded funds, each of which shall have 27
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the following characteristics: 1
1. The mutual fund shall be an open -end diversified investment company 2
registered under the Federal Investment Company Act of 1940, as 3
amended; 4
2. The management company of the investment company shall have been 5
in operation for at least five (5) years; and 6
3. All of the securities in the mutual fund shall be eligible investments 7
pursuant to this section; 8
(k) Individual equity securities if the funds being invested are managed by a 9
professional investment manager regulated by a federal regulatory agency. 10
The ind ividual equity securities shall be included within the Standard and 11
Poor's 500 Index, and a single sector shall not exceed twenty -five percent 12
(25%) of the equity allocation; and 13
(l) Individual high -quality corporate bonds that are managed by a professiona l 14
investment manager that: 15
1. Are issued, assumed, or guaranteed by a solvent institution created and 16
existing under the laws of the United States; 17
2. Have a standard maturity of no more than ten (10) years; and 18
3. Are rated in the three (3) highest rating categories by at least two (2) 19
competent credit rating agencies. 20
(2) The investment authority provided by subsection (1) of this section shall be subject 21
to the following limitations: 22
(a) The amount of money invested at any time by a local government or p olitical 23
subdivision in any one (1) of the categories of investments authorized by 24
subsection (1)(e), (f), (g), (k), and (l) of this section shall not exceed twenty 25
percent (20%) of the total amount of money invested by the local government; 26
(b) The amount of money invested at any one (1) time by a local government or a 27
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political subdivision in the categories of investments authorized in subsection 1
(1)(j), (k), and (l) of this section shall not, aggregately, exceed forty percent 2
(40%) of the total money inv ested unless the investment is in a mutual fund 3
consisting solely of the investments authorized under subsection (1)(a), (b), 4
(c), (h), or (i) of this section, or any combination thereof; 5
(c) No local government or political subdivision shall purchase any investment 6
authorized by subsection (1) of this section on a margin basis or through the 7
use of any similar leveraging technique; and 8
(d) At the time the investment is made, no more than five percent (5%) of the 9
total amount of money invested by the local governments or political 10
subdivisions shall be invested in any one (1) issuer unless: 11
1. The issuer is the United States government or an agency or 12
instrumentality of the United States government, or an entity which has 13
its obligations guaranteed by either the United States government or an 14
entity, agency, or instrumentality of the United States government; 15
2. The money is invested in a certificate of deposit or other interest-bearing 16
accounts as authorized by subsection (1)(d) and (e) of this section; 17
3. The money is invested in bonds or certificates of indebtedness of this 18
state and its agencies and instrumentalities as authorized in subsection 19
(1)(h) of this section; or 20
4. The money is invested in securities issued by a state or local 21
government, or any i nstrumentality or agency thereof, in the United 22
States as authorized in subsection (1)(i) of this section. 23
(3) The governing body of every local government or political subdivision that invests 24
or reinvests money subject to its control or jurisdiction acco rding to the provisions 25
of subsection (1) of this section shall by January 1, 1995, adopt a written investment 26
policy that shall govern the investment of funds by the local government or political 27
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subdivision. The written investment policy shall include bu t shall not be limited to 1
the following: 2
(a) A designation of the officer or officers of the local government or political 3
subdivision who are authorized to invest and oversee the investment of funds; 4
(b) A list of the permitted types of investments; 5
(c) Procedures designed to secure the local government's or political subdivision's 6
financial interest in the investments; 7
(d) Standards for written agreements pursuant to which investments are to be 8
made; 9
(e) Procedures for monitoring, control, deposit, and re tention of investments and 10
collateral; 11
(f) Standards for the diversification of investments, including diversification with 12
respect to the types of investments and firms with whom the local government 13
or political subdivision transacts business; 14
(g) Standards for the qualification of investment agents which transact business 15
with the local government, such as criteria covering creditworthiness, 16
experience, capitalization, size, and any other factors that make a firm capable 17
and qualified to transact busines s with the local government or political 18
subdivision; and 19
(h) Requirements for periodic reporting to the governing body on the status of 20
invested funds. 21
(4) Sheriffs, county clerks, county attorneys, and jailers, who for the purposes of this 22
section shall be known as county officials, may invest and reinvest money subject 23
to their control and jurisdiction, including tax dollars subject to the provisions of 24
KRS Chapter 134 and 160.510, as permitted by this section. 25
(5) The provisions of this section are not intended to impair the power of a county 26
official, city, county, urban -county, charter county, school district, or other local 27
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governmental unit or political subdivision to hold funds in deposit accounts with 1
financial[banking] institutions as otherwise authorized by law. 2
(6) The governing body or county official may delegate the investment authority 3
provided by this section to the treasurer or other financial officer or officers charged 4
with custody of the funds of the local government, and the officer or officers shall 5
thereafter assume full responsibility for all investment transactions until the 6
delegation of authority terminates or is revoked. 7
(7) All county officials shall report the earnings of any investments at the time of their 8
annual reports and settlements with the f iscal courts for excess income of their 9
offices. 10
(8) The state local debt officer is authorized and directed to assist county officials and 11
local governments, except school districts, in investing funds that are temporarily in 12
excess of operating needs by: 13
(a) Explaining investment opportunities to county officials and local governments 14
through publication and other appropriate means; and 15
(b) Providing technical assistance in investment of idle funds to county officials 16
and local governments that request that assistance. 17
(9) (a) The state local debt officer may create an investment pool for local 18
governments, except school districts, and county officials; and counties and 19
county officials and cities may associate to create an investment pool. If 20
counties and county officials and cities create a pool, each group may select a 21
manager to administer their pool and invest the assets. Each county and each 22
county official and each city may invest in a pool created pursuant to this 23
subsection. Investments shall be li mited to those investment instruments 24
permitted by this section. The funds of each local government and county 25
official shall be properly accounted for, and earnings and charges shall be 26
assigned to each participant in a uniform manner according to the amo unt 27
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invested. Charges to any local government or county official shall not exceed 1
one percent (1%) annually on the principal amount invested, and charges on 2
investments of less than a year's duration shall be prorated. Any investment 3
pool created pursuant to this subsection shall be audited each year by an 4
independent certified public accountant, or by the Auditor of Public Accounts. 5
A copy of the audit report shall be provided to each local government or 6
county official participating in the pool. In the ca se of an audit by an 7
independent certified public accountant, a copy of the audit report shall be 8
provided to the Auditor of Public Accounts, and to the state local debt officer. 9
The Auditor of Public Accounts may review the report of the independent 10
certified public accountant. After preliminary review, should discrepancies be 11
found, the Auditor of Public Accounts may make his or her own investigative 12
report or audit to verify the findings of the independent certified public 13
accountant's report. 14
(b) If the state local debt officer creates an investment pool, he or she shall 15
establish an account in the Treasury for the pool. He or she shall also establish 16
a separate trust and agency account for the purpose of covering management 17
costs, and he or she shall de posit management charges in this account. The 18
state local debt officer may promulgate administrative regulations, pursuant to 19
KRS Chapter 13A, governing the operation of the investment pool, including 20
but not limited to provisions on minimum allowable inve stments and 21
investment periods, and method and timing of investments, withdrawals, 22
payment of earnings, and assignment of charges. 23
(c) Before investing in an investment pool created pursuant to this subsection, a 24
local government or county official shall a llow any [savings and loan 25
association or ] bank, savings and loan association, or credit union in the 26
county, as described in subsection (1)(d) of this section, to bid for the 27
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deposits, but the local government or county official shall not be required to 1
seek bids more often than once in each six (6) month period. 2
(10) (a) With the approval of the Kentucky Board of Education, local boards of 3
education, or any of them that desire to do so, may associate to create an 4
investment pool. Each local school board w hich associates itself with other 5
local school boards for the purpose of creating the investment pool may invest 6
its funds in the pool so created and so managed. Investments shall be limited 7
to those investment instruments permitted by this section. The fu nds of each 8
local school board shall be properly accounted for, and earnings and charges 9
shall be assigned to each participant in a uniform manner according to the 10
amount invested. Charges to any local school board shall not exceed one 11
percent (1%) annuall y on the principal amount invested, and charges on 12
investments of less than a year's duration shall be prorated. Any investment 13
pool created pursuant to this subsection shall be audited each year by an 14
independent certified public accountant, or by the Auditor of Public Accounts. 15
A copy of the audit report shall be provided to each local school board 16
participating in the pool. In the case of an audit by an independent certified 17
public accountant, a copy of the audit report shall be provided to the Auditor 18
of Public Accounts, and to the Kentucky Board of Education. The Auditor of 19
Public Accounts may review the report of the independent certified public 20
accountant. After preliminary review, should discrepancies be found, the 21
Auditor of Public Accounts may make his or her own investigative report or 22
audit to verify the findings of the independent certified public accountant's 23
report. 24
(b) The Kentucky Board of Education may promulgate administrative regulations 25
governing the operation of the investment pool inclu ding but not limited to 26
provisions on minimum allowable investments and investment periods, and 27
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methods and timing of investments, withdrawals, payment of earnings, and 1
assignment of charges. 2
(11) As used in this section, "competent rating agency" means a rating agency certified 3
or approved by a national entity that engages in such a process. The certification or 4
approval process shall include but not necessarily be limited to the following 5
elements the subject rating agency must possess: 6
(a) A requirement for the rating agency to register and provide an annual updated 7
filing; 8
(b) Record retention requirements; 9
(c) Financial reporting requirements; 10
(d) Policies for the prevention of misuse of material nonpublic information; 11
(e) Policies addressing management of conflicts of interest, including prohibited 12
conflicts; 13
(f) Prohibited acts practices; 14
(g) Disclosure requirements; 15
(h) Any policies, practices, and internal controls required by the national entity; 16
and 17
(i) Standards of training, experience, and competence for credit analysts. 18
Section 2. KRS 41.010 is amended to read as follows: 19
(1) As used in KRS 41.070, 41.110, 41.120, 41.130, 41.280, 41.290, or 41.300, unless 20
the context requires otherwise, the terms "appropriation ," "budget unit," 21
"disbursements," "expenditures," "expenses," and "receipts" have the meaning 22
given them by KRS 43.010 and 48.010. 23
(2) As used in this chapter: 24
(a) "Administrative body" includes an authority, board, bureau, interstate 25
compact, commission, committee, conference, council, or any other form of 26
organization in the executive branch of state government, but does not include 27
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office, department, program cabinet, or division; 1
(b) "Agency" means any state administrative body, program cabinet, office , 2
department, or division; 3
(c) "Assistant" means assistant treasurer; 4
(d) "Bank or credit union " includes any bank , [or ]savings and loan association , 5
or credit union: 6
1. Chartered by the State of Kentucky or the United States government ; 7
and 8
2. Designated to take custody of state funds on deposit, for periods greater 9
than overnight, with the intent to honor presentments against those 10
deposits; 11
(e) "Check," unless the context requires otherwise, means either a paper check or 12
a paperless entry on an electronic data processing medium that substitutes for 13
a paper check and of which a permanent record is made for purposes of 14
debiting or crediting an account; 15
(f) "Collateral" mea ns the listed securities and other obligations in KRS 16
41.240(4); 17
(g) "Form" or "report" means any written method of transporting data; 18
(h) "Secretary" means the secretary of the Finance and Administration Cabinet; 19
(i) "State depository" means any bank or credit union designated to take custody 20
of state funds on deposit pursuant to KRS 41.220; 21
(j) "Warrant" means a printed or electronic authorization from the Finance and 22
Administration Cabinet for the Treasurer to issue a check; and 23
(k) "Writing" or "written" means letters, words, or numbers, or their equivalent, 24
set down by handwriting, typewriting , printing, photostating, photographing, 25
magnetic impulse, mechanical or electronic recording, or other form of data 26
compilation. 27
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Section 3. KRS 41.070 is amended to read as follows: 1
(1) Unless otherwise expressly provid ed by law, no receipts from any source of state 2
money or money for which the state is responsible shall be held, used, or deposited 3
in any personal or special bank or credit union account, temporarily or otherwise, 4
by any agent or employee of any budget un it, to meet expenditures or for any other 5
purpose. 6
(2) All receipts of any character of any budget unit, all revenue collected for the state, 7
and all public money and dues to the state shall be deposited in state depositories in 8
the most prompt and cost -efficient manner available. However in the case of state 9
departments or agencies located outside Frankfort, and all state institutions, the 10
Finance and Administration Cabinet may permit temporary deposits to be made to 11
the accounts maintained by the agency, department, or institution in a state 12
depository for a period not to exceed thirty (30) days, and may require that the 13
money be forwarded to the State Treasury at the time and in the manner and form 14
prescribed by the cabinet. Nothing in this section shall be construed as authorizing 15
any representative of any agency, department, or institution to enforce or cash, even 16
for the purpose of a deposit, any check or other instrument of value payable to the 17
Commonwealth or any agency thereof. 18
(3) Each agency deposi ting its receipts directly with the State Treasurer shall do so in 19
the manner approved by the State Treasurer as agent in charge of public fund 20
deposits. 21
(4) The Department of Revenue may deposit receipts to the credit of the State Treasury 22
directly with a state depository utilized by the Commonwealth for its primary 23
deposit[banking] services. The State Treasurer, with the approval of the Finance 24
and Administration Cabinet, may authorize other agencies to deposit receipts 25
directly with a state depository to the credit of the State Treasury if the Treasurer 26
prescribes the manner in which the deposit is to be made, and the forms and reports 27
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to be filed with the Treasury Department. The Finance and Administration Cabinet 1
shall prescribe the forms and reports to be filed with it when this type of deposit is 2
made. 3
(5) Each department, agency, or other budget unit which receives funds to be deposited 4
into the State Treasury shall maintain records to report adequately each amount 5
received, from whom received, and da te received. Agency records shall be easily 6
reconcilable with the information forwarded to the State Treasurer. 7
Section 4. KRS 41.220 is amended to read as follows: 8
(1) Not less than three (3) solvent banks or credit uni ons shall be designated as state 9
depositories for state funds. Each bank or credit union designated shall have not 10
less than the minimum capital [ stock] as required by the primary state or federal 11
regulator of the bank or credit union . A bank or credit uni on[ Banks] shall be 12
designated as a state depository[depositories] for state funds upon agreement of the 13
State Treasurer and the secretary of the Finance and Administration Cabinet. Those 14
banks or credit unions designated shall be entered in the executive journal. If at any 15
time it appears that the capital of any state depository has become impaired, the 16
state's deposits shall be withdrawn and deposited with another state depository. 17
(2) The State Treasurer and the secretary of the Finance and Administratio n Cabinet 18
shall determine the needs for moving state funds from one (1) designated depository 19
to another. 20
(3) If no banks or credit unions are designated as state depositories in accordance with 21
this section, all banks or credit unions [ as defined in KRS 4 1.010] shall be 22
considered eligible state depositories. 23
Section 5. KRS 41.240 is amended to read as follows: 24
(1) (a) Before any bank or credit union is [ shall be] named as a state depository to 25
receive public funds, it s hall either pledge or provide to the State Treasurer 26
collateral having an aggregate current face value or current quoted market 27
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value at least equal to the deposits as of the last business day of each quarter 1
in which funds are so deposited or provide to t he State Treasurer a surety 2
bond or surety bonds in favor of the State Treasurer in an amount at least 3
equal to the deposits, as of the last business day of each quarter in which 4
funds are deposited; except any[ provided, however, that] amounts insured by 5
the Federal Deposit Insurance Corporation or the [Federal Savings and Loan 6
Insurance Corporation]National Credit Union Administration need not be so 7
collateralized. The president or an executive officer of each state depository 8
shall submit to the Treasure r and the State Investment Commission a 9
statement subscribed and sworn to by the president or executive officer 10
showing: 11
1. The face value or current quoted market value of the securities or other 12
obligations pledged as collateral; and 13
2. The value of surety bonds provided as of the time such surety bonds are 14
provided as collateral. 15
The aggregate valuation of all pledged or provided collateral shall be reported 16
to the State Treasurer and State Investment Commission by the state 17
depository within ten (10) d ays of the close of each quarter after the date of 18
deposit. Such value with respect to pledged collateral other than surety bonds 19
shall be as of the end of the quarter or the preceding business day and, as to 20
surety bonds, the market values shall be obtain ed from a reputable bond -21
pricing service. The State Treasurer and Governor may from time to time call 22
for additional collateral to adequately secure the deposits as aggregate face or 23
current market values may require, if the value of collateral is not comp liant 24
with state law as of the report date. 25
(b) No deposit of state funds shall collectively exceed at any time the state 26
depository's sum of capital, reserves, undivided profits and surplus or ten 27
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percent (10%) of the total deposits of the state depository, whichever is less. 1
For purposes of this subse ction only, the value of the state deposit will be 2
determined as of the end of the last business day of each quarter that funds are 3
deposited. 4
(2) (a) As an alternative to subsection (1)(a) of this section, a state depository insured 5
by the Federal Deposit Insurance Corporation or the National Credit Union 6
Administration may either pledge to the State Treasurer, as collateral, 7
securities, real property, or other obligations having an aggregate face value 8
or a current quoted market value or provide to the St ate Treasurer a surety 9
bond or surety bonds in an amount equal to eighty percent (80%) of the value 10
of the state deposit including demand and time accounts, if the state 11
depository is determined by the State Investment Commission to have very 12
strong credit with little or no credit risk at any maturity level and the 13
likelihood of short -term unexpected problems of significance is minimal or 14
not of a serious or long -term nature. The value of the state deposit will be 15
determined at the end of the business day o f deposit and as of the end of 16
business on the last day of each quarter that funds are so deposited. 17
(b) Valuation of all pledged or provided collateral shall be reported to the State 18
Treasurer and the State Investment Commission within ten (10) days of th e 19
close of each quarter after the date of deposit. 20
(c) State depositories designated as qualified for reduced pledging shall be so 21
recorded in the executive journal. 22
(d) The State Investment Commission shall determine eligibility for the reduced 23
pledging o ption based on totally objective and quantifiable measures of 24
financial intermediary performance. The information for such eligibility shall 25
be obtained from publicly available documents. The State Investment 26
Commission shall promulgate the particular crit eria of eligibility by 27
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regulations issued pursuant to KRS Chapter 13A. 1
(3) State depositories which do not qualify or do not choose to qualify under subsection 2
(1) or (2) of this section shall not receive state deposits in excess of amounts that 3
are insured by an instrumentality of the United States. 4
(4) Only the following securities and other obligations may be accepted by the State 5
Treasurer as collateral under this section: 6
(a) Bonds, notes, letters of credit, or other obligations of or issued or guarant eed 7
by the United States, or those for which the credit of the United States is 8
pledged for the payment of the principal and interest thereof, and any bonds, 9
notes, debentures, letters of credit, or any other obligations issued or 10
guaranteed by any federal governmental agency or instrumentality, presently 11
or in the future established by an Act of Congress, as amended or 12
supplemented from time to time, including, without limitation, the United 13
States government corporations listed in KRS 66.480(1)(c); 14
(b) Obligations of the Commonwealth of Kentucky including revenue bonds 15
issued by its statutory authorities, commissions, or agencies; 16
(c) Revenue bonds issued by educational institutions of the Commonwealth of 17
Kentucky as authorized by KRS 162.340 to 162.380; 18
(d) Obligations of any city of the Commonwealth of Kentucky, or any county, for 19
the payment of principal and interest on which the full faith and credit of the 20
issuing body is pledged; 21
(e) School improvement bonds issued in accordance with the authority gra nted 22
under KRS 162.080 to 162.100; 23
(f) School building revenue bonds issued in accordance with the authority 24
granted under KRS 162.120 to 162.300, provided that the issuance of such 25
bonds is approved by the Kentucky Board of Education; 26
(g) Surety bonds iss ued by sureties rated in one (1) of the three (3) highest 27
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categories by a nationally recognized rating agency; 1
(h) Letters of credit issued by federal home loan banks; and 2
(i) Real property owned by the bank or credit union. 3
Section 6. KRS 41.250 is amended to read as follows: 4
The execution of the bond or the pledge of the warrants or bonds required by KRS 41.240 5
shall not diminish the liability of the Treasurer and his or her sureties upon his or he r 6
bond, nor impair or delay the right of the state to recover on the Treasurer's bond for any 7
loss or misapplication of the public funds or other delinquency in office, nor impair or 8
delay the right of the state to recover from any delinquent or defaulting bank or credit 9
union, or the officers or stockholders thereof, in the same manner as other depositors. 10
Section 7. KRS 41.300 is amended to read as follows: 11
There shall be a special deposit fund consisting of all money r eceived by the state or any 12
department or officer thereof as guarantees for the payment of any costs, charges or 13
damages accruing or liable to accrue to the state or for the performance of any specific 14
act, including all money deposited as bail to secure t he liberation of persons accused of 15
public offenses, all money deposited by bidders on contracts to insure their entering into 16
contracts awarded them, and all money deposited to indemnify persons whose property 17
may be damaged or destroyed by the operations of the depositor. All such money shall be 18
paid to the Treasurer, in the manner provided for the deposit of public money, and shall 19
be deposited by the Treasurer as a trust fund in a separate account in a designated state 20
depository. The money so deposited may be returned to the depositor, if he becomes 21
entitled to its return, without specific appropriation, allotment or authorization for 22
expenditure therefor, in the same manner as other claims against the state may be paid, or 23
may, upon default of any depo sitor and upon certificate to such effect by the 24
administrative officer having charge of the matter, be declared by the Finance and 25
Administration Cabinet to be forfeited in whole or in part and thereupon be transferred to 26
the extent so forfeited to the ge neral fund. The interest on bank or credit union deposits 27
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of this fund shall accrue to the general fund. 1
Section 8. KRS 30A.120 is amended to read as follows: 2
(1) Every clerk shall collect all fines and forfeitures impos ed in District and Circuit 3
Court, and shall issue receipts therefor. 4
(2) At the close of business daily the clerk in each county shall deposit in a bank or 5
credit union designated as a state depository the proceeds from fines and 6
forfeitures, and within th ree (3) working days after the first and fifteenth of each 7
month submit to the Finance and Administration Cabinet a report listing all fines 8
and forfeitures collected, and shall pay over to the cabinet in the manner prescribed 9
by the cabinet at the same ti me all costs, fines, forfeitures, and other moneys so 10
reported. 11
(3) Upon the failure of the clerk to submit to the cabinet, within the prescribed period, 12
the required report and to pay over, at the same time, the costs, fines, forfeitures and 13
other moneys collected, the cabinet shall immediately notify the Auditor of Public 14
Accounts that the clerk concerned is delinquent in the matter. 15
Section 9. KRS 30A.200 is amended to read as follows: 16
All moneys which are deposited wi th the clerk and which are payable to a third person, 17
not the Commonwealth, or which may become payable to such third person as a result of 18
court action or otherwise shall: 19
(1) Be logged in the appropriate record of the clerk and the person paying or depositing 20
the money shall be given a receipt; 21
(2) Be deposited daily in a bank or credit union approved as a state depository [ bank] 22
in a special escrow account or accounts subject to the clerk's withdrawal as required 23
in the daily course of the clerk's business or as may be ordered by a court; and 24
(3) Not be subject to the provisions of KRS Chapter 41 relating to the deposit of money 25
in the State Treasury until by action of a court, such as forfeiture of a bond, the 26
money is due and owing to the Commonwealth. 27