{"data":{"id":"us-ky/krs-342.1242","jurisdiction":"us-ky","citation":"KRS 342.1242","heading":"Kentucky coal workers' pneumoconiosis fund -- Liability for and manner","body":"of making payments for awards for coal workers' pneumoconiosis --\nAssessments to finance fund -- When assessments cease -- Distribution of\nexcess assessments to employers -- Reimbursement of funding commission by\nKentucky Employers' Mutual Insurance Authority.\n(1) There is created the Kentucky coal workers' pneumoconiosis fund which shall have\none-half (1/2) of the liability for income benefits, including retraining benefi ts,\npayable for claims brought under KRS 342.732 for last exposure incurred on or\nafter December 12, 1996, which are filed on or before June 30, 2017. Income\nbenefit payments by the Kentucky coal workers' pneumoconiosis fund shall be made\ncontemporaneous w ith the payments made by the employer, except that the\nemployer shall make all payments due under a final award or approved settlement\nfor any claims filed after June 30, 2017.\n(2) For claims brought under KRS 342.732 for last exposure incurred on or after\nDecember 12, 1996 which are filed on or before June 30, 2017, the employer shall\ndefend any claim brought under KRS 342.732 and upon conclusion shall seek\nparticipation in payment of the final award or settlement by the Kentucky coal\nworkers' pneumoconiosis fund by making written request upon the director in the\nmanner prescribed by administrative regulation to be promulgated by the\ncommissioner of the Department of Workers' Claims.\n(3) (a) For the purpose of funding the liabilities of the Kentucky coal wo rkers'\npneumoconiosis fund and financing the administration and operation of the\nKentucky coal workers' pneumoconiosis fund, as reflected in the budget of the\nCommonwealth enacted by the General Assembly, a Kentucky coal workers'\npneumoconiosis fund assess ment at the rate of three percent (3%) is hereby\nimposed upon the amount of workers' compensation premiums received on\nand after January 1, 1997, through December 31, 1997, by every insurance\ncarrier writing workers' compensation insurance in the Commonwealth and by\nevery self-insured group operating under the provisions of KRS 342.350(4)\nand Chapter 304, from employers engaged in the severance or processing of\ncoal. Likewise, on and after January 1, 1997, through December 31, 1997, an\nassessment at the rate of three percent (3%) of premium shall be paid by every\nemployer engaged in the severance or processing of coal who is carrying his\nor her own risk.\n(b) In addition to the assessment imposed in paragraph (a) of this subsection, an\nadditional Kentucky coal workers' pneumoconiosis fund assessment at the rate\nof two and one -half cents ($0.025) per ton is hereby imposed upon the total\nannual amount of tons of coal severed on or after January 1, 1997, through\nDecember 31, 1997, by every entity engaged in the s everance of coal as\nrequired pursuant to KRS Chapter 143.\n(c) As of June 30, 2018, and each year thereafter until the liabilities of the fund\nare fully funded, the Funding Commission and the Kentucky Employers'\nMutual Insurance Authority shall determine th e assets of the fund and the\nclaim liability incurred by the fund for all previous years and shall establish\nthe rates under the provisions of paragraphs (a) and (b) of this subsection\nnecessary as of January 1 of the next year to fund claim liabilities th rough\nDecember 31 of the next year of operations. The assessment rate authorized\nby this section for premiums received and tons of coal severed shall be set so\nas to receive fifty percent (50%) of the needed revenue from each assessment.\nNotice of any rate  changes shall be provided no later than October 1 of the\nyear preceding the rate change.\n(4) All assessments imposed by this section shall be paid to the Kentucky Workers'\nCompensation Funding Commission and shall be transferred to the Kentucky\nEmployers' Mutual Insurance Authority, which is administering the coal workers'\npneumoconiosis fund. In addition, the powers and responsibilities of the Kentucky\nWorkers' Compensation Funding Commission including its fiduciary duties and\nresponsibilities relating to  assessments collected for the special fund pursuant to\nKRS 342.122, 342.1221, 342.1222, 342.1223, 342.1226, 342.1229, and 342.1231\nshall apply to assessments collected for the Kentucky coal workers' pneumoconiosis\nfund created pursuant to this section. Ea ch entity subject to assessments for the\nKentucky coal workers' pneumoconiosis fund shall provide any and all information\nrequested by the Kentucky Workers' Compensation Funding Commission necessary\nto carry out its powers and responsibilities relating thereto.\n(5) These assessments shall be paid quarterly not later than the thirtieth day of the\nmonth following the end of the quarter in which the premium is received or the coal\nis processed or severed. Receipt shall be considered timely through actual physi cal\nreceipt or by postmark by the United States Postal Service. Employers carrying their\nown risk and employers defined in KRS 342.630(2) shall pay the annual\nassessments in four (4) equal quarterly installments. Penalty and interest penalties\nimposed purs uant to KRS 342.1221 and the authority of the Kentucky Workers'\nCompensation Funding Commission to waive part or all of the penalty shall apply\nto assessments for the Kentucky coal workers' pneumoconiosis fund in the same\nmanner and amount as they are impo sed on assessments for the special fund under\nKRS 342.122.\n(6) Notwithstanding any other provisions of this section or this chapter to the contrary,\nthe total amount of funds collected pursuant to the assessment rates adopted by the\nfunding commission shall not be limited to the provisions of this section.\n(7) Claims for benefits by reason of the development of coal workers' pneumoconiosis\nshall be maintained pursuant to KRS 342.732, and the Kentucky coal workers'\npneumoconiosis fund shall be liable for pay ment of a part of the liability only for\nemployees of employers engaged in the severance or processing of coal as defined\nin KRS 342.0011(23)(a) and (b).\n(8) (a) Assessments issued pursuant to this section shall cease to be imposed once the\nliabilities of the fund are fully funded. After the liabilities are fully funded,\nany excess assessments shall be refunded to the employers on a pro rata basis\nas determined from the cumulative amounts of assessments received from\nworkers' compensation premiums paid by e mployers, whether insured, self -\ninsured, or carrying their own risk, on or after January 1, 2017.\n(b) The Kentucky Employers' Mutual Insurance Authority shall disburse, on a pro\nrata basis, the excess assessments to each employer which is engaged in the\nseverance or processing of coal and which is in good standing with the\nSecretary of State and authorized to do business in the Commonwealth as\nevidenced by a certificate of existence, certificate of authorization, or other\nsuch certificate issued by the Secr etary of State their pro rata shares of excess\nassessments.\n(c) Upon a determination by the Kentucky Workers' Compensation Funding\nCommission and the Kentucky Employers' Mutual Insurance Authority that\nfinal audits and any resulting litigation are closed o r the liabilities of the fund\nare fully funded, the Kentucky Employers' Mutual Insurance Authority shall\nsend a notice to each employer via first-class United States mail advising each\nemployer that in order to assert a claim to the employer's pro rata sha re of any\nexcess assessments the employer must submit a certification under oath to the\nKentucky Employers' Mutual Insurance Authority stating that the employer is\nengaged in the severance or processing of coal in the Commonwealth and that\nthe employer is in good standing with the Secretary of State and authorized to\ndo business in the Commonwealth. The employer shall also certify whether or\nnot it has applied for an adjudication of bankruptcy, reorganization,\narrangement, or other relief under the United States Bankruptcy Code.\n(d) The employer shall submit to the Kentucky Employers' Mutual Insurance\nAuthority the employer's certificate obtained from the Secretary of State along\nwith the certification under oath specified in this subsection.\n(e) The Kentucky Employers' Mutual Insurance Authority shall specify in the\nnotice the date of mailing of the notice to the employer and shall send the\nnotice to the employer at the address of the statutory agent designated by the\nemployer with the Secretary o f State or, if the employer has not designated a\nstatutory agent with the Secretary of State, at the address of the employer on\nfile with the Kentucky Employers' Mutual Insurance Authority or, if the\naddress of the employer is not on file with the Kentucky  Employers' Mutual\nInsurance Authority, at the address of the employer on file with the Kentucky\nWorkers' Compensation Funding Commission.\n(f) The employer's certification must be received by the Kentucky Employers'\nMutual Insurance Authority within thirty  (30) days of mailing of the notice\nfrom the Kentucky Employers' Mutual Insurance Authority to the employer.\n(g) Within thirty (30) days of receipt of a timely submitted certification from an\nemployer, the Kentucky Employers' Mutual Insurance Authority sha ll\ndistribute to the employer the employer's pro rata share of the excess funds. If\nthe employer is in bankruptcy at the time the certification is provided to the\nKentucky Employers' Mutual Insurance Authority, any funds that would be\ndistributed to the em ployer shall be distributed to former employees to whom\npast due wages are owed, subject to the approval of the bankruptcy judge. If\nthere are remaining funds in the employer -in-bankruptcy's pro rata share after\npayment to the former employees to whom past  due wages are owed, the\nemployer-in-bankruptcy's pro rata share shall be distributed as directed by the\nbankruptcy court, and if not directed by the bankruptcy court, to the Kentucky\ncoal employers self -insurance guaranty fund. If an employer has an\noutstanding balance due for taxes or other obligations to the Commonwealth,\nfor a bond payment, or to a county, city, school system or school district, fire\ndistrict, or any special taxing authority, no funds shall be distributed to the\nemployer unless those ou tstanding balances have been paid in full at the time\nof the distribution of the funds by Kentucky Employers' Mutual Insurance\nAuthority. Any funds that would be distributed to the employer shall first be\ndistributed to the Commonwealth, for a bond payment , or to a county, city,\nschool system or school district, fire district, or any special taxing authority,\nand then any remaining funds may be distributed as otherwise prescribed in\nthis section.\n(h) If, at any time after the Kentucky Employers' Mutual Insu rance Authority's\ndistribution of funds to an employer, it is determined that the certification\nsubmitted by the employer to the Kentucky Employers' Mutual Insurance\nAuthority was materially false at the time of the certification, the Attorney\nGeneral is a uthorized to file an action against the employer to recover the\nfunds distributed to the employer by the Kentucky Employers' Mutual\nInsurance Authority along with interest at the rate of twelve percent (12%)\nfrom the date of distribution of the funds to th e employer and a penalty of ten\npercent (10%) of the amount of the funds distributed to the employer, plus\nreasonable attorney's fees, litigation expenses, and court costs.\n(i) For those employers who do not timely submit a certification to the Kentucky\nEmployers' Mutual Insurance Authority as specified in this subsection, their\npro rata shares shall be transferred to the Kentucky coal employers self -\ninsurance guaranty fund for the purpose of paying workers' compensation\nbenefits to employees of insolvent s elf-insured employers engaged in the\nseverance and processing of coal, and those employers' claims to a distribution\nof funds pursuant to this subsection shall be forever barred.\n(j) The Kentucky Workers' Compensation Funding Commission shall provide all\navailable information regarding the employers to the Kentucky Employers'\nMutual Insurance Authority upon the request of the Kentucky Employers'\nMutual Insurance Authority.\n(9) The Kentucky Employers' Mutual Insurance Authority shall reimburse the funding\ncommission for any expenses incurred with regard to the collection of assessments\nfor the coal workers' pneumoconiosis fund and other incurred expenses related to\nthe coal workers' pneumoconiosis fund.","path":["KRS Chapter 342"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50928","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:30Z","sha256":"34d325ace3df1d334d21cc58cdaa7966aed0f3876cfbb193875d84e14cbbad60","source_id":"us-ky","stale":false,"prev":"us-ky/krs-342.1241","next":"us-ky/krs-342.1243"},"notice":"GroundRules: Original legal text. Not legal advice."}