{"data":{"id":"us-ky/krs-342.1223","jurisdiction":"us-ky","citation":"KRS 342.1223","heading":"Kentucky Workers' Compensation Funding Commission -- Commission's","body":"relationship with Office of Financial Management within the Finance and\nAdministration Cabinet.\n(1) The Kentucky Workers' Compensation Funding Commission is created as an\nagency of the Commonwealth for the public purpose of controlling, investing, and\nmanaging the funds collected pursuant to KRS 342.122.\n(2) The commission shall:\n(a) Hold, administer, invest, and reinvest the funds collected pursuant to KRS\n342.122 and its other funds separate and apart from all \"state funds\" or \"public\nfunds,\" as defined in KRS Chapter 446;\n(b) Act as a fiduciary, as defined in KRS Chapter 386, in exercising its power\nover the funds collected pursuant to KRS 342.122, and may invest associatio n\nfunds through one (1) or more banks, trust companies, or other financial\ninstitutions with offices in Kentucky in good standing with the Department of\nFinancial Institutions, in investments described in KRS Chapter 386, except\nthat the funding commission may, at its discretion, invest in equity securities;\n(c) Report to the General Assembly at each even -numbered-year regular session\nthe actuarial soundness and adequacy of the funding mechanism for the\nspecial fund and other programs supported by the mecha nism, including\ndetailed information on the investment of funds and yields thereon;\n(d) Recommend to the General Assembly, not later than October 31 of the year\nprior to each even-numbered-year regular legislative session, changes deemed\nnecessary in the level of the assessments imposed in this chapter;\n(e) In conjunction with the commissioner, submit to the General Assembly, not\nlater than October 31 of the year prior to each even -numbered-year regular\nlegislative session, a proposed budget for the bienniu m beginning July 1\nfollowing the even-numbered-year regular session of the General Assembly;\n(f) In conjunction with the commissioner, provide to the Interim Joint Committee\non Appropriations and Revenue an annual budget and detailed quarterly\nfinancial reports;\n(g) Conduct periodic audits, independently or in cooperation with the Department\nof Workers' Claims or the Department of Revenue, of all entities subject to\nthe assessments imposed in this chapter; and\n(h) Report monthly to the Committees on Appropr iations and Revenue and on\nEconomic Development and Workforce Investment its monthly expenditures\nof restricted agency funds and the nature of the expenditures.\n(3) The commission shall have all of the powers necessary or convenient to carry out\nand effectuate the purposes for which it was established, including, but not limited\nto, the power:\n(a) To sue and be sued, complain, or defend, in its name;\n(b) To elect, app oint, or hire officers, agents, and employees, and define their\nduties and fix their compensation within the limits of its budget approved by\nthe General Assembly. Notwithstanding any provision of KRS Chapter 18A\nto the contrary, officers and employees of the funding commission may be\nexempted from the classified service;\n(c) To contract for investment counseling, legal, actuarial, auditing, and other\nprofessional services in accordance with the provisions relating to personal\nservice contracts contained in KRS Chapter 45A;\n(d) To appoint, hire, and contract with banks, trust companies, and other entities\nto serve as depositories and custodians of its investment receipts and other\nfunds;\n(e) To take any and all other actions consistent with the purposes of t he\ncommission and the provisions of this chapter; and\n(f) To make and promulgate administrative regulations.\n(4) The Kentucky Workers' Compensation Funding Commission may utilize the\ninvestment expertise and advice of the Office of Financial Management wit hin the\nFinance and Administration Cabinet. The Kentucky Workers' Compensation\nFunding Commission may procure one (1) or more consulting firms and enter into a\npersonal service contract with such consulting firms to provide investment\nadvisory, investment counseling, or investment management services. The Office of\nFinancial Management shall participate in the selection of any firms for investment\nservices provided, however, the Kentucky Workers' Compensation Funding\nCommission shall have the right to make the final decision on the selection of any\nfirms. Notwithstanding any provisions of this section to the contrary, all contracts\nfor investment advisory, investment counseling, or investment management\nservices or for the management of assets shall be subje ct to KRS Chapter 45A. The\nfees charged by financial institutions for managing the investments of the funds of\nthe funding commission shall be paid from the investment earnings of the funds.\n(5) The commission shall be attached to the Education and Labor C abinet for\nadministrative purposes only.","path":["KRS Chapter 342"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56786","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:30Z","sha256":"9f8ef91b15885271f4fb19ae5cca8d3135725dc3798204a562d708911c1c15a4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-342.1222","next":"us-ky/krs-342.1224"},"notice":"GroundRules: Original legal text. Not legal advice."}