Statement of Financial Transactions

KRS Section(s) - KRS 6.611, 6.807, 6.824, 6.827 and 6.829.

Who is required to file a statement of financial transactions? When? With Whom?

Any legislative agent or any employer who has had a financial transaction with or for the benefit of any member of the General Assembly, Governor, secretary of a cabinet, or any member of the staff of those officials is required to file the details of the transaction with the Commission. See KRS 6.824, OLEC 94-12, and OLEC 99-2.

The statements must be filed with the updated registration statements at the times specified for those in KRS 6.807(3). [KRS 6.824 and KRS 6.807(3)(b)]

A copy of the financial transaction statement must also be delivered to the official with whom or for whose benefit the transaction was made at least ten (10) days before the date on which the statement is filed with the Commission. [KRS 6.827(1)]

What is the definition of a financial transaction?

A financial transaction is a transaction or activity conducted or undertaken for profit and arising from the joint ownership, ownership, or part ownership in common of any real or personal property or any commercial or business enterprise of whatever form or nature between a legislative agent, his/her employer, or a member of their immediate families and a member of the General Assembly, the Governor, the secretary of a cabinet, or any member of the staff of those officials.

A financial transaction that is available to the general public on the same terms is not included in the definition. See KRS 6.611(18) and OLEC 99-2.

What information is required in the statement of financial transactions?

A description of the details of each transaction including:

  • The name of the official or employee;
  • Purpose and nature of the transaction;
  • Date it was made or entered into. [KRS 6.824(1) and(2)]
  • The statement covers each transaction that occurred during the filing period that ended on the last day of the month immediately preceding the month in which the statement is required to be filed. [KRS 6.824(1) and (2)]

No employer is required to file a statement or deliver a copy of the statement to the appropriate involved official if the transaction is reported by the employer's legislative agent. [KRS 6.824(3)]

What does the Commission do with statements of financial transactions?

The Commission reviews the statements for compliance; notifies persons regarding failure to file or deficiencies in filing; retains and computerizes the statements for easy public accessibility; and makes copies available to the public. See KRS 6.829.

What penalties apply to statements of financial transactions?

Intentional filing of false information or omitting of required information is a Class D felony.

Failure to file a statement or to remedy any deficiency in a filing in a timely manner may result in a fine by the Commission not to exceed $100 per day up to a maximum total fine of $1,000. [KRS 6.824(4) and (5)]

An employer or legislative agent who files a false statement of details of a financial transaction is liable in a civil action to any official or employee who sustains damage as a result of the filing or publication of the statement. [KRS 6.827 (3)]

What provisions are established to resolve any disputes between parties regarding statements of expenditures and financial transactions?

If a dispute arises between any member of the General Assembly or its staff and an employer or legislative agent regarding an expenditure or financial transaction alleged in a statement, the member, employer or legislative agent may file a complaint with the Commission.

The Commission then investigates the complaint and notifies the parties of its final decision by certified mail.

If the final decision requires the disputed expenditure or financial transaction to be reported, the employer or legislative agent includes the matter in an amended statement no later than 10 days after notice of the final decision is received by certified mail. [KRS 6.827(2)]​​

Statement of Financial Transactions