342.1223 Kentucky Workers' Compensation Funding Commission.
(1) The Kentucky Workers' Compensation Funding Commission is created as an agency of the
Commonwealth for the public purpose of controlling, investing, and managing the funds <br>collected pursuant to KRS 342.122.
(2) The commission shall:
(a) Hold, administer, invest, and reinvest the funds collected pursuant to KRS 342.122
and its other funds separate and apart from all "state funds" or "public funds," as <br>defined in KRS Chapter 446;
(b) Act as a fiduciary, as defined in KRS Chapter 386, in exercising its power over the
funds collected pursuant to KRS 342.122, and may invest association funds through <br>one (1) or more banks, trust companies, or other financial institutions with offices in <br>Kentucky in good standing with the Department of Financial Institutions, in <br>investments described in KRS Chapter 386, except that the funding commission may, <br>at its discretion, invest in nondividend-paying equity securities;
(c) Report to the General Assembly at each even-numbered-year regular session the
actuarial soundness and adequacy of the funding mechanism for the special fund and <br>other programs supported by the mechanism, including detailed information on the <br>investment of funds and yields thereon;
(d) Recommend to the General Assembly, not later than October 31 of the year prior to
each even-numbered-year regular legislative session, changes deemed necessary in <br>the level of the assessments imposed in this chapter;
(e) In conjunction with the Labor Cabinet, submit to the General Assembly, not later than
October 31 of the year prior to each even-numbered-year regular legislative session, a <br>proposed budget for the biennium beginning July 1 following the even-numbered-<br>year regular session of the General Assembly;
(f) In conjunction with the Labor Cabinet, provide to the Interim Joint Committee on
Appropriations and Revenue an annual budget and detailed quarterly financial <br>reports;
(g) Conduct periodic audits, independently or in cooperation with the Labor Cabinet or
the Department of Revenue, of all entities subject to the assessments imposed in this <br>chapter; and
(h) Report monthly to the Committees on Appropriations and Revenue and on Labor and
Industry its monthly expenditures of restricted agency funds and the nature of the <br>expenditures.
(3) The commission shall have all of the powers necessary or convenient to carry out and
effectuate the purposes for which it was established, including, but not limited to, the <br>power: <br>(a) To sue and be sued, complain, or defend, in its name; <br>(b) To elect, appoint, or hire officers, agents, and employees, and define their duties and
fix their compensation within the limits of its budget approved by the General <br>Assembly;
(c) To contract for investment counseling, legal, actuarial, auditing, and other
professional services in accordance with the provisions relating to personal service <br>contracts contained in KRS Chapter 45A;
(d) To appoint, hire, and contract with banks, trust companies, and other entities to serve
as depositories and custodians of its investment receipts and other funds;
(e) To take any and all other actions consistent with the purposes of the commission and
the provisions of this chapter; and
(f) To make and promulgate administrative regulations.
(4) Notwithstanding the provisions of this chapter to the contrary, the Kentucky Workers'
Compensation Funding Commission shall utilize the investment expertise and advice of the <br>Office of Financial Management in the Office of the Controller within the Finance and <br>Administration Cabinet rather than entering into a consulting contract for investment <br>counseling. The fees charged by financial institutions for managing the investments of the <br>funds of the funding commission shall be paid from the investment earnings of the funds.
(5) The commission shall be attached to the Labor Cabinet for administrative purposes only.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 1788, effective July 15, 2010. -- Amended 2005
Ky. Acts ch. 85, sec. 682, effective June 20, 2005. -- Amended 2001 Ky. Acts ch. 58, sec. 25, <br>effective June 21, 2001. -- Amended 2000 Ky. Acts ch. 46, sec. 29, effective July 14, 2000. -- <br>Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 5, effective December 12, 1996. -- <br>Amended 1994 Ky. Acts ch. 181, Part. 2, sec. 6, effective April 4, 1994: and ch. 201, sec. 1, <br>effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 33, sec. 4, effective July 13, 1990; ch. <br>321, sec. 11, effective July 13, 1990; and ch. 496, sec. 62, effective July 13, 1990. -- <br>Amended 1988 Ky. Acts ch. 437, Pt. II, M, sec. 58, effective April 15, 1988. -- Created 1987 <br>(1st Extra. Sess.) Ky. Acts ch. 1, sec. 63, effective October 26, 1987.
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