On December 7 we asked what Steve Beshear was trying to hide with Kentucky Retirement Systems. And the Tommy Elliott fallout started a few minutes later. Seems Beshear’s confusion over appointing a fundraising expert and calling him an investment expert wasn’t the only thing people were concerned about.
But we’re still focused on Steve Beshear/The Commonwealth possibly standing in violation of KRS 61.645. Since you can’t count on your attorney general to take KRS problems seriously – and legally couldn’t, as he’s too closely tied to the agency – we’ll all be left wondering, forever. So let’s just go ahead and look at some more KRS problems with Tommy Elliott and such.
You know how the Securities and Exchange Commission regulates the municipal bonds issued by the Commonwealth of Kentucky (you do now)? In the official SEC documentation (Warning: PDF Link) filed by the state, House Bill 146 is specifically mentioned. And the municipal bond offering seems to rely on better investment performance that would have come from the appointment of investment experts:
On April 12, 2010, House Bill 146 was signed by the Governor, amending KRS 61.650, KRS 16.642, and KRS 78.790 to establish a five-member investment committee for the Kentucky Retirement System, the State Police Retirement System, and the County Employees Retirement System, comprised of two gubernatorial appointees with investment experience and three trustees appointed by the board chair.
HB 146 was signed into law in April 2010. Two investment experts were to be nominated by Beshear.
By specifically mentioning and relying on this piece of legislation, the Commonwealth has sworn to the SEC that it will abide by that specific piece of code in the Kentucky Revised Statutes.
Has Steve Beshear indirectly exposed Kentucky to problems by naming a non-expert, as required by law? Has he opened Kentucky and the KRS up to more SEC problems? We hear the SEC’s investigation is much more deep than just Tosh and Sergeon. This doesn’t help matters.
This isn’t smelling too nicely in light of everything else going down involving Elliott.