There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
CHAPTER 342 WORKERS' COMPENSATION
342.1242 Kentucky coal workers' pneumoconiosis fund -- Liability for and manner of making payments for awards for coal workers' pneumoconiosis -- Assessments to finance fund.
Download pdfAssessments to finance fund. (1) There is created the Kentucky coal workers' pneumoconiosis fund which shall have one-half (1/2) of the liability for income benefits, including retraining benefits,
payable for claims brought under KRS 342.732 for last exposure incurred on or
after December 12, 1996. Income benefit payments by the Kentucky coal workers'
pneumoconiosis fund shall be made contemporaneous with the payments made by
the employer, except that the employer shall make all payments due under a final
award or approved settlement until the liability of the Kentucky coal workers'
pneumoconiosis fund is established under subsection (2) of this section and the coal
workers' pneumoconiosis fund shall reimburse the employer for such payments to
the extent of its liability. (2) The employer shall defend any claim brought under KRS 342.732 and upon conclusion shall seek participation in payment of the final award or settlement by
the Kentucky coal workers' pneumoconiosis fund by making written request upon
the director in the manner prescribed by administrative regulation to be promulgated
by the commissioner of the Department of Workers' Claims. (3) (a) For the purpose of funding and prefunding 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) and Chapter 304, from employers engaged in
the severance or processing of coal. Likewise, on and after January 1, 1997,
through December 31, 1997, an assessment at the rate of three percent (3%) of
premium shall be paid by every employer engaged in the severance or
processing of coal who is carrying his or her own risk. (b) In addition to the assessment imposed in paragraph (a) of this subsection, an additional Kentucky coal workers' pneumoconiosis fund assessment at the rate
of two and one-half cents ($0.025) per ton is hereby imposed upon the total
annual amount of tons of coal severed on or after January 1, 1997, through
December 31, 1997, by every entity engaged in the severance of coal as
required pursuant to KRS Chapter 143. (c) As of June 30, 2006, and each year thereafter, the funding commission shall determine the assets of the fund and the claim and administrative expense
liability incurred by the fund for all previous years and shall establish the rates
under the provisions of paragraphs (a) and (b) of this subsection necessary as
of January 1 of the next year to fully fund and prefund all claim liabilities and
administrative expenses through December 31 of the next year of operations. Page 2 of 2 The assessment rate authorized by this section for premiums received and tons
of coal severed shall be set so as to receive fifty percent (50%) of the needed
revenue from each assessment. Notice of any rate changes shall be provided
no later than October 1 of the year preceding the rate change. (4) All assessments imposed by this section shall be paid to the Kentucky Workers' Compensation Funding Commission and shall be credited to a separate account
within the benefit reserve fund within the Kentucky Workers' Compensation
Funding Commission. In addition, the powers and responsibilities of the Kentucky
Workers' Compensation Funding Commission including its fiduciary duties and
responsibilities relating to assessments collected for the special fund pursuant to
KRS 342.122, 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. Each entity subject to assessments for the Kentucky
coal workers' pneumoconiosis fund shall provide any and all information requested
by the Kentucky Workers' Compensation Funding Commission necessary to carry
out its powers and responsibilities relating thereto. (5) These assessments shall be paid quarterly not later than the thirtieth day of the month following the end of the quarter in which the premium is received or the coal
is processed or severed. Receipt shall be considered timely through actual physical
receipt or by postmark by the United States Postal Service. Employers carrying their
own risk and employers defined in KRS 342.630(2) shall pay the annual
assessments in four (4) equal quarterly installments. Penalty and interest penalties
imposed pursuant to KRS 342.1221 and the authority of the Kentucky Workers'
Compensation Funding Commission to waive part or all of the penalty shall apply
to assessments for the Kentucky coal workers' pneumoconiosis fund in the same
manner and amount as they are imposed on assessments for the special fund under
KRS 342.122. (6) Notwithstanding any other provisions of this section or this chapter to the contrary, the total amount of funds collected pursuant to the assessment rates adopted by the
funding commission shall not be limited to the provisions of this section. (7) Claims for benefits by reason of the development of coal workers' pneumoconiosis shall be maintained pursuant to KRS 342.732, and the Kentucky coal workers'
pneumoconiosis fund shall be liable for payment of a part of the liability only for
employees of employers engaged in the severance or processing of coal as defined
in KRS 342.0011(23)(a) and (b). Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1791, effective July 15, 2010. -- Amended 2006 Ky. Acts ch. 124, sec. 2, effective April 4, 2006. -- Amended 2005
Ky. Acts ch. 7, sec. 39, effective March 1, 2005. -- Amended 2002 Ky. Acts ch. 246,
sec. 2, effective July 15, 2002. -- Created 1996 (1st Extra. Sess.) Ky. Acts ch. 1,
sec. 34, effective December 12, 1996.
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