{"data":{"id":"us-ky/krs-56.863","jurisdiction":"us-ky","citation":"KRS 56.863","heading":"Powers and duties of the commission.","body":"The commission shall have the power and duty to:\n(1) Maintain the records and perform the functions necessary and proper to accomplish\nthe purposes of KRS 56.860 to 56.869;\n(2) Promulgate administrative regulations relating to KRS 56.860 to 56.869;\n(3) Conduct analysis to determine the impact of fluctuating receipts of revenues on the\nbudget of the Commonwealth, fluctuating interest rates upon the interest -sensitive\nassets and interest -sensitive liabilities of the Commonwealth, and the resulting\nchange in the net interest margin on the budget of the Commonwealth;\n(4) Develop strategies to mitigate the impact of fluctuating receipts of revenues on the\nbudget of the Commonwealth and of fluctuating interest rates on the\nCommonwealth's interest-sensitive assets and interest-sensitive liabilities;\n(5) Report its findings to the State Investment Commission at least annually to assist\nthe State Investment Commission in developing and implementing its investment\nstrategy. The State Investment Commission shall provide  the commission with a\ncopy of its monthly investment income report to aid the commission in developing\nand implementing its strategies;\n(6) Issue funding notes, project notes, and tax and revenue anticipation notes or other\nobligations on behalf of any st ate agency to fund authorized projects or to satisfy\njudgments;\n(7) Refund any funding notes, project notes, or tax and revenue anticipation notes\nissued under KRS 56.860 to 56.869 to achieve economic savings, to better match\nreceipts with expenditures, or as a part of a continuing finance program;\n(8) Designate individual employees or officers of the Office of Financial Management\nwithin the Office of the Controller as agents for purposes of approving the principal\namount of tax and revenue anticipation no tes, the interest rate, the discount,\nmaturity date, and other relevant terms of tax and revenue anticipation notes, project\nnotes, and funding notes or refunding notes issued within constraints established by\nthe commission and to execute agreements, incl uding notes and financial\nagreements, for the commission;\n(9) Enter into financial agreements for the purpose of hedging its current or projected\ninterest-sensitive assets and interest -sensitive liabilities to stabilize the\nCommonwealth's net interest marg in, as deemed necessary by the commission,\nsubject to administrative regulations promulgated by the commission that limit the\nnet exposure of the Commonwealth as a result of these financial agreements;\n(10) Deposit net interest payments and premiums receiv ed by the commission under\nfinancial agreements into a restricted account, which shall not lapse at the end of the\nfiscal year but shall continue to accumulate to act as security for these financial\nagreements. This duty is mandatory in nature. Any accumul ated funds in excess of\nthe amount determined by the commission to be necessary to establish this security\nmay be applied to debt service payments, net interest payments, and premiums and\nexpenses related to interest-sensitive liabilities; and\n(11) Report to the Capital Projects and Bond Oversight Committee and the Interim Joint\nCommittee on Appropriations and Revenue on a semiannual basis, by September 30\nand March 31 of each year, the following:\n(a) A description of the Commonwealth's investment and debt structure;\n(b) The plan developed to mitigate the impact of fluctuating revenue receipts on\nthe budget of the Commonwealth and fluctuating interest rates on the interest -\nsensitive assets and interest -sensitive liabilities of the Commonwealth,\nincluding an analysis of the  impact that a change in the net interest margin\nwould have on the budget of the Commonwealth. The report due by March 31\nof each year shall reflect the strategy for January through June of the fiscal\nyear, and the report due by September 30 shall reflect the strategy for July\nthrough December of the fiscal year;\n(c) The principal amount of notes issued, redeemed, and outstanding; and a\ndescription of all financial agreements entered into during the reporting\nperiod. The report due by March 31 shall include  information about\nagreements entered into from July through December of the fiscal year. The\nreport due by September 30 shall include information about agreements\nentered into between January and June of the prior fiscal year; and\n(d) A summary of gains a nd losses associated with financial agreements and any\nother cash flow strategies undertaken by the commission to mitigate the effect\nof fluctuating interest rates during each reporting period. The report due by\nMarch 31 shall include information about agr eements and strategies entered\ninto or undertaken from July through December of the fiscal year. The report\ndue by September 30 shall include information about agreements and\nstrategies entered into or undertaken from January through June of the prior\nfiscal year.","path":["KRS Chapter 56"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22736","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:12Z","sha256":"5c55eabfbf494586387906531df472c086d230f542062eb81c2ec8b526abfcd0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-56.862","next":"us-ky/krs-56.864"},"notice":"GroundRules: Original legal text. Not legal advice."}