KRS 142.353: Security to insure compliance -- Sale of security or bearer bond --

Restraining order or injunction.

(1) Whenever it is deemed necessary to insure compliance with the provisions of KRS

142.301 to 142.363, the department may require any person subject to the taxes

imposed by KRS 142.303, 142.307, 142.309, 142.311, 142.314, 142.315, 142.316,

142.361, and 142.363 to place security with it. The amount of the security shall be

fixed by the department but shall not be greater than three (3) times the estimat ed

average liability of the provider or all providers in the same class as the provider,

whichever is greater. This limitation shall apply regardless of the type of security

placed with the department.

(2) The amount of the security may be increased or dec reased by the department,

subject to the limitations provided in subsection (1) of this section.

(3) (a) If necessary, the department may sell the security at public auction in order to

recover any tax, penalty, or interest due. However, security in the fo rm of a

bearer bond issued by the United States or any state or local governmental unit

which has a prevailing market price may be sold by the department at a private

sale at a price not lower than the prevailing market price.

(b) 1. The department shall p rovide notice by certified mail, sent to the last

known address as reflected in the records of the department, or by

delivery, to the person who placed the security with the department of

the date, time, and place of the sale.

2. Delivery means mailing the notice to the person it is addressed to,

leaving the notice at his place of business with the person in charge of

the place of business, or, if there is no one in charge, leaving the notice

at a conspicuous place at the place of business. If the place of business is

closed, or the person to be served has no place of business, leaving it at

his home, with a person of suitable age and discretion residing in the

home. Notice by certified mail must be postmarked no later than ten (10)

days prior to the sale. N otice by delivery must be given no later than ten

(10) days prior to the sale.

(c) Any amount in excess of the amount due the department after the sale shall be

returned to the person placing the security.

(4) The Commonwealth may bring an action for a res training order or a temporary or

permanent injunction to restrain or enjoin the operation of a provider's business

until the security is obtained. The action may be brought in the Franklin Circuit

Court or in the Circuit Court having jurisdiction over the provider.