HB 401 — AN ACT relating to workers' compensation.

UNOFFICIALCHAPTER COPY33 241 RSCHAPTER 33 ( HB 401/EN401 ) AN ACT relating to workers' compensation.

Page 1 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN (4) "Injurious exposure" shall mean that exposure to occupational hazard which would, independently of any other cause whatsoever, produce or cause the disease for which the claim is made;

PageLegislative 2Research ofCommission 16PDF HB040120.100Version -ACTS 1756OF -THE XXXXGENERAL 3/27/2024ASSEMBLY 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN 4.

(18) "Agriculture" means the operation of farm premises, including the planting, cultivation, producing, growing, harvesting, and preparation for market of agricultural or horticultural commodities thereon, the raising of livestock for food products and for racing purposes, and poultry thereon, and any work performed as Page 3 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN an incident to or in conjunction with the farm operations, including the sale of produce at on-site markets and the processing of produce for sale at on-site markets.

(b) "Engaged in severance or processing of coal" shall include all individuals, partnerships, limited partnerships, limited liability companies, corporations, joint ventures, associations, or any other business entity in the Commonwealth Page 4 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN which has employees on its payroll who perform any of the acts stated in paragraph (a) of this subsection, regardless of whether the acts are performed as owner of the coal or on a contract or fee basis for the actual owner of the coal.

Any employee who is involved in the CHAPTER 33 3 business of severing or processing of coal and business activities not related to coal shall be prorated based on the time involved in severance or processing of coal bears to his total time;

(25) (a) "Premiums received" for policies effective on or after January 1, 1994, for insurance companies means direct written premiums as reported in the annual statement to the Department of Insurance by insurance companies, except that "premiums received" includes premiums charged off or deferred, and, on insurance policies or other evidence of coverage with provisions for deductibles, the calculated cost for coverage, including experience Page 5 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN modification and premium surcharge or discount, prior to any reduction for deductibles.

For policies covering covered employees having a co-co-employment employment relationship with a professional employer organization and a Page 6 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN client as defined in KRS Chapter 336, "premiums received" means premiums calculated using the experience modification factor of each client as defined in KRS Chapter 336 for each covered employee for that portion of the payroll pertaining to the covered employee.

The cost for coverage calculated under this paragraph by insurance companies that issue only deductible insurance policies in Kentucky shall be actuarially adequate to cover the entire liability of the employer for compensation under Page 7 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN this chapter, including all expenses and allowances normally used to calculate the cost for coverage.

For policies with provisions for deductibles with effective dates of May 6, 1993, through December 31, 1993, for which the insurance company did not report premiums and remit special fund assessments based on the calculated cost for coverage prior to the reduction for deductibles, "premium" includes the initial Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY consideration plus any reimbursements invoiced for losses, expenses, or fees charged under the deductibles.

(28) "Premium" for each employer carrying his own risk pursuant to KRS 342.340(1) shall be the projected value of the employer's workers' compensation claims for the Page 8 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN next calendar year as calculated by the commissioner using generally-accepted actuarial methods as follows:

(b) The commissioner shall obtain the annual payroll for each of the three (3) years in the base period for each employer carrying his own risk from records Page 9 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN of the department and from the records of the Department of Workforce Development, Education and Labor Cabinet.

Thereafter, the calculations set forth in this subsection shall be performed annually, at the time each employer applies or renews its application for certification to carry its own CHAPTER 33 5 risk for the next twelve (12) month period and submits payroll and other data in support of the application.

Page 10 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN (e) If an employer having fewer than five (5) years of doing business in this state applies to carry its own risk and is so certified, its premium for the purposes of KRS 342.122 shall be based on the lesser number of years of experience as may be available including the two (2) most recent years if necessary to create a three (3) year base period.

(30) "Investment interest" means any pecuniary or beneficial interest in a provider of Page 11 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN medical services or treatment under this chapter, other than a provider in which that pecuniary or investment interest is obtained on terms equally available to the public through trading on a registered national securities exchange, such as the New York Stock Exchange or the American Stock Exchange, or on the National Association of Securities Dealers Automated Quotation System;

Page 12 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN Section 2.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (1) As used in this section, "physician" means physicians and surgeons, psychologists, optometrists, dentists, podiatrists, and osteopathic and chiropractic practitioners acting within the scope of the license or other credentials required by his or her specialty of practice in the United States jurisdiction in which he or she is authorized to practice, and any retired physician previously authorized to practice in the Commonwealth of Kentucky, who surrendered his or her license while in good standing with their respective licensing board and was not subject to an ongoing investigation for improper practices.

(b) The wages were fixed by the month, the average weekly wage shall be the monthly wage so fixed multiplied by twelve (12) and divided by fifty-two Page 13 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN (52);

Page 14 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN (2) In occupations which are exclusively seasonal and therefore cannot be carried on throughout the year, the average weekly wage shall be taken to be one-fiftieth (1/50) of the total wages which the employee has earned from all occupations during the twelve (12) calendar months immediately preceding the injury.

CHAPTER 33 7 (5) When the employee is working under concurrent contracts with two (2) or more employers and the defendant employer has knowledge of the employment prior to the injury, his or her wages from all the employers shall be considered as if earned from the employer liable for compensation.

"At full time" as used in this subsection means a full working day for five (5) working days in every week regardless of whether the injured employee actually Page 15 of 16 HB040120.100 - 1756 - XXXX 3/27/2024 3:15 PM Engrossed UNOFFICIAL COPY 24 RS HB 401/EN worked all or part of the time.

PageSigned 16by ofGovernor 16April HB040120.1004, -2024. 1756 - XXXX 3/27/2024 3:15 PM Engrossed

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