SECTION 1. A NEW SECTION OF KRS CHAPTER 61 IS CREATED TO READ AS FOLLOWS:

(1) As used in this section, unless the context requires otherwise:

(a) "Public agency" means:

1. Any agency participating in a state administered retirement system or plan created by or pursuant to state statute;

2. Any agency participating in the health insurance plans established by KRS 18A.225 to 18A.229; and

3. Any institution subject to the provisions of KRS Chapter 164;

(b) "Employee" means any person currently employed by a public agency;

(c) "Spouse" means a person to whom the employee is legally married pursuant to Kentucky state law; and

(d) "Family member" means:

1. The employee's spouse as defined by paragraph (c) of this subsection;

2. The employee's natural or adopted children; and

3. The natural or adopted children of the employee's spouse.

(2) Health insurance plans provided to employees of a public agency shall only allow the employee or the public agency to cover the employee and the employee's family member(s).