SB 263 — AN ACT relating to the coal workers' pneumoconiosis fund.

UNOFFICIAL COPY 20 RS BRSB 1972263/EN AN ACT relating to the coal workers' pneumoconiosis fund.

(3) (a) For the purpose of funding the liabilities of the Kentucky coal workers' pneumoconiosis fund and financing the administration and operation of the Kentucky coal workers' pneumoconiosis fund, as reflected in the budget of the Commonwealth enacted by the General Assembly, a Kentucky coal workers' pneumoconiosis fund assessment at the rate of three percent (3%) is hereby imposed upon the amount of workers' compensation premiums received on and after January 1, 1997, through December 31, 1997, by every insurance carrier writing workers' compensation insurance in the Commonwealth and by every self-insured group operating under the provisions of KRS 342.350(4) Page 1 of 89 BR197200.100 - 1972 - XXXX JacketedEngrossed UNOFFICIAL COPY 20 RS BRSB 1972263/EN and Chapter 304, from employers engaged in the severance or processing of coal.

In addition, the powers and responsibilities of the Kentucky Workers' Compensation Funding Commission including its fiduciary duties and Page 2 of 89 BR197200.100 - 1972 - XXXX JacketedEngrossed UNOFFICIAL COPY 20 RS BRSB 1972263/EN responsibilities relating to assessments collected for the special fund pursuant to KRS 342.122, 342.1221, 342.1222, 342.1223, 342.1226, 342.1229, and 342.1231 shall apply to assessments collected for the Kentucky coal workers' pneumoconiosis fund created pursuant to this section.

(8) (a) Assessments issued pursuant to this section shall cease to be imposed once the Page 3 of 89 BR197200.100 - 1972 - XXXX JacketedEngrossed UNOFFICIAL COPY 20 RS BRSB 1972263/EN liabilities of the fund are fully funded.

(c) Upon a determination by the Kentucky Workers' Compensation Funding Commission and the Kentucky Employers' Mutual Insurance Authorityauthority that final audits are closed and the liabilities of the fundfud are fully funded, the Kentucky Employers' Mutual Insurance Authority shall send a notice to each employer via first-class United States mail advising each employer that in order to assert a claim to the employer's pro rata share of any excess assessments the employer must submit a certification under oath to the Kentucky Employers' Mutual Insurance Authority stating that the employer is engaged in the severance or processing of coal in the Commonwealth and that the employer is in good standing with the Secretary of State and authorized to do business in the Commonwealth.

(d) The employer shall submitalso tocertify thewhether Kentuckyor Employers'not Mutualit Insurancehas Authorityapplied thefor employer'san certificateadjudication obtainedof frombankruptcy, thereorganization, Secretaryarrangement, ofor Stateother alongrelief withunder the certificationUnited underStates oathBankruptcy specifiedCode. in this subsection.

(e)(d) KentuckyThe Employers'employer Mutual Insurance Authority shall specifysubmit in the notice the date of mailing of the notice to the employerKentucky andEmployers' shallMutual sendInsurance the Page 4 of 89 BR197200.100 - 1972 - XXXX JacketedEngrossed UNOFFICIAL COPY 20 RS BRSB 1972263/EN noticeAuthority to the employeremployer's atcertificate theobtained addressfrom of the statutory agent designated by the employer with the Secretary of State or,along if the employer has not designated a statutory agent with the Secretarycertification ofunder State,oath atspecified thein addressthis ofsubsection. the employer on file with the Kentucky Employers' Mutual Insurance Authority or, if the address of the employer is not on file with the Kentucky Employers' Mutual Insurance Authority, at the address of the employer on file with the Kentucky Workers' Compensation Funding Commission.

(e) Kentucky Employers' Mutual Insurance Authority shall specify in the notice the date of mailing of the notice to the employer and shall send the notice to the employer at the address of the statutory agent designated by the employer with the Secretary of State or, if the employer has not designated a statutory agent with the Secretary of State, at the address of the employer on file with the Kentucky Employers' Mutual Insurance Authority or, if the address of the employer is not on file with the Kentucky Employers' Mutual Insurance Authority, at the address of the employer on file with the Kentucky Workers' Compensation Funding Commission.

If the employer is in bankruptcy at the time the certification is provided to the Kentucky Employers' Mutual Insurance Authority, any funds that would be distributed to the employer shall only be distributed to former employees to whom past due wages are owed, subject to the approval of the bankruptcy judge.

If an employer has an outstanding balance due for taxes or other obligations to the Commonwealth, for a bond payment, or to a county, city, school system or school district, fire district, or any special taxing authority, no funds shall be distributed to the employer unless those outstanding balances have been paid in full at the time of the distribution of Page 5 of 9 XXXX Engrossed UNOFFICIAL COPY 20 RS SB 263/EN the funds by Kentucky Employers' Mutual Insurance Authority.

(i) For those employers who do not timely submit a certification to the Kentucky Employers' Mutual Insurance Authority as specified in this subsection, their pro rata shares shall be transferred to the Kentucky coal Page 5 of 8 BR197200.100 - 1972 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1972 employers self-insurance guaranty fund for the purpose of paying workers' compensation benefits to employees of insolvent self-insured employers engaged in the severance and processing of coal, and those employers' claims to a distribution of funds pursuant to this subsection shall be forever barred.

Page 6 of 9 XXXX Engrossed UNOFFICIAL COPY 20 RS SB 263/EN Section 2.

Page 6 of 8 BR197200.100 - 1972 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1972 (3) Notwithstanding the provisions of KRS 342.1242, the Workers' Compensation Funding Commission shall impose an assessment at an annual rate of fourteen percent (14%) upon the amount of workers' compensation premiums received on or after January 1, 2017, through December 31, 2017, by every insurance carrier writing workers' compensation insurance in the Commonwealth and by every self- insured group operating under the provisions of KRS 342.350(4) and KRS Chapter 304, from employers engaged in the severance or processing of coal.

(4) Notwithstanding the provisions of KRS 342.1242, the Workers' Compensation Funding Commission shall impose an assessment at an annual rate of fourteen percent (14%) upon the amount of workers' compensation premiums received on or Page 7 of 9 XXXX Engrossed UNOFFICIAL COPY 20 RS SB 263/EN after January 1, 2018, through December 31, 2018, by every insurance carrier writing workers' compensation insurance in the Commonwealth and by every self- insured group operating under the provisions of KRS 342.350(4) and Chapter 304, from employers engaged in the severance or processing of coal.

Any amount Page 7 of 8 BR197200.100 - 1972 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1972 paid and collected that exceeds the assessment imposed by this section in calendar year 2017 shall be reimbursed to the employer or credited to the employer's account subject to the preference of the employer.

When all distributions pursuant to subsection (8) of Page 8 of 9 XXXX Engrossed UNOFFICIAL COPY 20 RS SB 263/EN Section 1 of this Act have been[claim payouts are] completed, the Kentucky coal workers' pneumoconiosis fund shall be abolished.

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