KRS 48.005: Public accountability for funds or assets recovered by duly elected statewide

constitutional officers through judgment or settlement -- Applicability of Open

Records and Open Meetings Laws -- Administration and disbursement of trust

funds or assets by Office of the Controller -- Exceptions -- Costs of litigation --

Limitation regarding constitutional challenge.

(1) The General Assembly hereby finds and declares that:

(a) Public accountability for funds or other assets recovered in a legal action by

or on behalf of the general public, the Commonwealth, or its duly elected

statewide constitutional officers is appropriate and required, whether the

character of the assets or funds recovered is public or private;

(b) Accountability for assets or funds recovered by duly elected statewide

constitutional officers is essential to the public trust, and is even more critical

when that officer was a party to the action that resulted in the recovery by

virtue of the public office he or she holds;

(c) Public acc ountability demands the applicability of the Kentucky Model

Procurement Code, KRS Chapter 45A, Kentucky Open Records Law, KRS

61.870 to 61.884, and the Kentucky Open Meetings Law, KRS 61.805 to

61.850, so that the actions of individuals or agencies who are charged with the

administration of funds or other assets are conducted in full view, and are

open to public scrutiny; and

(d) The power to appropriate funds for public purposes is solely within the

purview of the legislative branch of government, and the General Assembly,

as a steward of the budgetary process, shall take steps to assure that future

settlements are handled in a manner that assures maximum accountability to

the citizens of the Commonwealth and their duly elected legislative

representatives.

(2) Therefore, any other provision of the common law or statutory law to the contrary

notwithstanding:

(a) The provisions of subsection (3) of this section shall apply whenever the

Attorney General or other duly elected statewide constitutional officer is a

party or has entered his appearance in a legal action on behalf of the

Commonwealth of Kentucky, including ex rel. or other type actions, and a

disposition of that action has resulted in the recovery of funds or assets to be

held in trust by the Attorney General or other duly elected statewide

constitutional officer or a person, organization, or entity created by the

Attorney General or the Commonwealth, through court action or otherwise, to

administer the trust funds or assets, for charitable, eleemosyna ry, benevolent,

educational, or similar public purposes;

(b) Except as otherwise provided in paragraph (a) of this subsection, the

provisions of subsection (4) of this section shall apply when any funds or

assets of any kind or nature whatsoever, including but not limited to public

funds as defined in KRS 446.010 and private funds or assets are recovered by

judgment or settlement of a legal action by or on behalf of the Commonwealth

of Kentucky, including ex rel. or other type actions filed by a duly electe d

statewide constitutional officer under that officer's statutory or common law

authority.

(3) Whenever the Attorney General or other duly elected statewide constitutional

officer is a party to or has entered his appearance in, a legal action on behalf of the

Commonwealth of Kentucky, including ex rel. or other type actions, and a

disposition of that action has resulted in the recovery of funds or assets to be held in

trust by the Attorney General or other duly elected statewide constitutional officer

or by a person, organization, or entity created by the Attorney General, or the

Commonwealth, through court action or otherwise, to administer the trust funds or

assets, for charitable, eleemosynary, benevolent, educational, or similar public

purposes, those fu nds shall be deposited in the State Treasury and the funds or

assets administered and disbursed by the Office of the Controller.

(4) The Office of Attorney General may first recover its reasonable costs of litigation,

as determined by the court and approve d by the secretary of the Finance and

Administration Cabinet. After recovering the reasonable costs of litigation, any

required consumer restitution or payments shall be made. All remaining funds shall

be deposited in the general fund surplus account. Any costs recovered under this

subsection shall be reported to the Interim Joint Committee on Appropriations and

Revenue.

(5) The common law, including the common law authority of any duly elected

statewide constitutional officer, is specifically abrogated to the extent it is

inconsistent with the provisions of this section.

(6) Notwithstanding any statute or common law to the co ntrary, and except as provided

in this subsection, an elected statewide constitutional officer or any other state

official or agency shall not file or participate as a plaintiff, petitioner, party,

intervening party, attorney, or amicus curiae in any litig ation challenging the

constitutionality of this section. State funds and employee time shall not be

expended by any person or agency in support of such a challenge. If the

constitutionality of this section is challenged, the Finance and Administration

Cabinet shall be the sole named respondent in that litigation, and shall consult with

the Legislative Research Commission regarding defense of that litigation.