KRS 176.085: Compliance with workers' compensation insurance and unemployment

insurance laws required -- Foreign entity to obtain certificate of authority --

Penalty.

(1) (a) No contract for building, construction, reconstruction, renovation, demolition,

or other type work on any state road, waterway, or aviation-related work, shall

be awarded by any agency, department, or office of the Commonwealth of

Kentucky or any political subdivision of the Commonwealth of Kentucky to

any person until that person assures, b y affidavit, that all contractors and

subcontractors employed, or that will be employed, under the provisions of the

contract shall be in compliance with Kentucky requirements for workers'

compensation insurance according to KRS Chapter 342 and unemploymen t

insurance according to KRS Chapter 341.

(b) An agency, department, office, or political subdivision of the Commonwealth

of Kentucky shall not award a contract to a person that is a foreign entity

unless that foreign entity, on the records of the Secretar y of State, holds a

certificate of authority or a statement of foreign qualification.

(2) Any person who fails to comply with the requirements of subsection (1) of this

section during the term of the state contract, upon such finding by a court of

competent jurisdiction, shall be fined an amount not to exceed four thousand dollars

($4,000), or an amount equal to the sum of uninsured and unsatisfied claims

brought under the provisions of KRS Chapter 342 and unemployment insurance

claims for which no wages we re reported as required by KRS Chapter 341,

whichever is greater.

(3) The penalty imposed in subsection (2) of this section shall be enforced by the

county attorney for the county in which the violation occurred.