Governor Steve Beshear attempted to create KHBE in the summer of 2012 with a temporary executive order under KRS 12.028 which the legislature was never asked to ratify, violating the statute. When Beshear's 2012 executive order expired in the summer of 2013, he issued another order under the same statute creating the exchange anew, which also violated the statute.
A lone House Democrat filed a bill in February to ratify the second, illegitimate executive order, exposing the incompetence behind Kentucky ObamaCare. And both chambers of the legislature just this week voted to disallow any state spending for the scheme.
And even if Beshear vetoes the defunding language, there is no authority to fund the exchange or even for it to continue to exist at all. Beshear needs to admit his failure so we can begin an orderly unwinding of Kentucky ObamaCare. Until then, he should start estimating for all of us how much time is left for this charade.