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341.277 Financing benefits for employees of governmental entities.
(1)
(2)
Any governmental entity which, pursuant to KRS 341.070(3), is or becomes a
subject employer shall pay contributions under the provisions of KRS 341.270,
unless it elects, in accordance with this section, to pay the cabinet for the fund
an amount equal to the amount of all regular benefits plus all extended benefits
paid to workers for compensable weeks of unemployment occurring on or after
January 1, 1979, and for all regular benefits and one-half (1/2) of extended
benefits paid to workers for compensable weeks of unemployment occurring
prior to such date that is attributable to service performed in covered
employment in the employ of such governmental entity during the effective
period of such election but only if the employer is the worker's most recent
employer. No employer shall be deemed to be the most recent employer
unless the eligible worker to whom benefits are payable shall have worked for
that employer in each of ten (10) weeks whether or not consecutive.
(a) Any governmental entity, which is or becomes a subject employer, may
elect to become liable for payment in lieu of contributions for a period of
not less than the calendar year in which such subjectivity begins and for
the following calendar year provided it files with the cabinet a written
notice of its election within thirty (30) days immediately following the date
of the determinations of such subjectivity; or
(b) Any governmental entity which has paid contributions under the
provisions of KRS 341.270 may change to a reimbursable basis by filing
with the cabinet a written notice of its election not later than thirty (30)
days prior to the beginning of any calendar year to make payments in lieu
of contributions for a period of not less than two (2) calendar years
following the effective date of such election.
(c) Any governmental entity which elects to make payments in lieu of
contributions, in accordance with paragraph (a) or (b) of this subsection,
shall continue to be liable for payments in lieu of contributions until it files
with the secretary a written notice terminating its election not later than
thirty (30) days prior to the beginning of the calendar year for which such
termination shall become effective except that liability for payments in lieu
of contributions shall continue thereafter with respect to wages paid prior
to the effective date of such termination.
(d) The secretary may for good cause extend the period within which a notice
of election must be filed and may permit the effective date of such
election to be retroactive.
(e) The secretary shall notify each governmental entity of any determination
made as to its status as a subject employer, pursuant to KRS 341.070
and the effective date of any election or termination made pursuant to this
subsection which determinations shall be subject to appeal and review in
accordance with the provisions of KRS 341.430(2).
Payment in lieu of contributions shall be made in accordance with the
provisions of this subsection.
(a) At the end of each calendar quarter or at the end of any other period as
determined by the secretary, the cabinet shall bill each governmental
entity (or group of governmental entities) which has elected to make
(b)
(c)
(d)
(e)
(3)
(a)
(b)
(c)
payments in lieu of contributions an amount equal to all regular benefits
and all extended benefits paid during such quarter for compensable
weeks occurring on or after January 1, 1979, plus any prior period
adjustments which are attributable to service performed in covered
employment in the employ of such governmental entity plus interest on
the total amount billed at the average rate of earnings in the
unemployment insurance fund for the prior calendar year. All interest
collected under this subsection shall be credited to the unemployment
insurance fund.
Payment of any bill rendered under paragraph (a) of this subsection shall
be made not later than thirty (30) days after such bill was mailed to the
last known address of the governmental entity or was otherwise delivered
to it, unless there has been an application for review in accordance with
paragraph (d) of this subsection.
Payments made by any governmental entity under the provisions of this
subsection shall not be deducted or deductible, in whole or in part, from
the remuneration of workers in the employ of the governmental entity.
The amount due specified in any bill from the secretary shall be
conclusive on the governmental entity unless, not later than fifteen (15)
days after the bill was mailed to its last known address or otherwise
delivered to it, the governmental entity files an appeal to the commission,
setting forth the grounds for such appeal. Proceedings on appeal to the
commission from the amount of a bill rendered under this subsection shall
be in accordance with the provisions of KRS 341.430 and the decision of
the commission shall be subject to review under the provisions of KRS
341.460(1).
Past-due payments of amounts in lieu of contributions shall be subject to
the same interest, penalties, and collection provisions that, pursuant to
KRS 341.300, apply to past due contributions.
The secretary may, in accordance with regulations prescribed by the
commission, require any governmental entity that elects to become liable
for payments in lieu of contributions to deposit with the cabinet within
thirty (30) days after the effective date of its election as a condition
thereof, money equal to two percent (2%) of the governmental entity's
total wages paid for employment as defined in KRS 341.050(1)(d) for the
four (4) calendar quarters immediately preceding the effective date of
such election. If the entity did not pay wages in each of such four (4)
quarters, the amount of deposit, if required, shall be determined by the
secretary.
Provided, however, that the amount of money required to be deposited
under this paragraph shall not exceed the amount for which any
contributing employer would be liable if subject to the maximum
contribution rate applicable to the annual taxable payroll.
Money deposited in accordance with this subsection shall be retained by
the cabinet in an escrow account until all possible liability to the fund
under the election is terminated, at which time it shall be returned to the
governmental entity, less any deductions as hereinafter provided. The
(4)
(5)
cabinet may deduct from the money deposited under this subsection by a
governmental entity to the extent necessary to satisfy any due and unpaid
payments in lieu of contributions and any applicable interest and penalties
provided for in paragraph (e) of subsection (3) of this section. The
secretary shall require the governmental entity within thirty (30) days
following any deduction from a money deposit under the provisions of this
subsection to deposit sufficient additional money to make whole the
governmental entity's deposit at the prior level. The secretary may, at any
time, review the adequacy of the deposit made by any governmental
entity. If, as a result of such review, he determines that an adjustment is
necessary, he shall require the governmental entity to make an additional
deposit within thirty (30) days of written notice of his determination or shall
return to it such portion of the deposit as he no longer considers
necessary, whichever action is appropriate.
(d) If any governmental entity fails to make a deposit, or to increase or make
whole the amount of a previously made deposit, as provided under this
subsection, the secretary may terminate such governmental entity's
election to make payments in lieu of contributions and such termination
shall continue for not less than the remainder of that calendar year and
the following calendar year beginning with the quarter in which such
termination becomes effective; provided, that the secretary may extend
for good cause the applicable filing, deposit or adjustment period by not
more than sixty (60) days.
If any governmental entity is delinquent in making payments in lieu of
contributions as required under subsection (3) of this section, the secretary
may terminate such governmental entity's election to make payments in lieu of
contributions as of the beginning of the next calendar year, and such
termination shall be effective for that and the next calendar year.
Notwithstanding any other section of this chapter, no employing unit electing to
make payments in lieu of contributions under the provisions of this section shall
be entitled to relief of benefit charges.
Effective:August 28, 2010
History: Amended 2010 (1st Extra. Sess.) Ky. Acts ch. 5, sec. 7, effective August
28, 2010. -- Amended 1996 Ky. Acts ch. 266, sec. 9, effective July 15, 1996. -Created 1978 Ky. Acts ch. 389, sec. 17, effective July 1, 1978.
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