342.1223 Kentucky Workers' Compensation Funding Commission --
720 words·~3 min read·
/ky/342-1223A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Commission's relationship with Office of Financial Management within
the Finance and Administration Cabinet.
(1)The Kentucky Workers' Compensation Funding Commission is created as an
agency of the Commonwealth for the public purpose of controlling, investing,
and managing the funds collected pursuant to KRS 342.122.
(2)The commission shall:
(a)Hold, administer, invest, and reinvest the funds collected pursuant to KRS
342.122 and its other funds separate and apart from all "state funds" or
"public funds," as defined in KRS Chapter 446;
(b)Act as a fiduciary, as defined in KRS Chapter 386, in exercising its power
over the funds collected pursuant to KRS 342.122, and may invest
association funds through one
(1)or more banks, trust companies, or
other financial institutions with offices in Kentucky in good standing with
the Department of Financial Institutions, in investments described in KRS
Chapter 386, except that the funding commission may, at its discretion,
invest in equity securities;
(c)Report to the General Assembly at each even-numbered-year regular
session the actuarial soundness and adequacy of the funding mechanism
for the special fund and other programs supported by the mechanism,
including detailed information on the investment of funds and yields
thereon;
(d)Recommend to the General Assembly, not later than October 31 of the
year prior to each even-numbered-year regular legislative session,
changes deemed necessary in the level of the assessments imposed in
this chapter;
(e)In conjunction with the Education and Labor Cabinet, submit to the
General Assembly, not later than October 31 of the year prior to each
even-numbered-year regular legislative session, a proposed budget for
the biennium beginning July 1 following the even-numbered-year regular
session of the General Assembly;
(f)In conjunction with the Education and Labor Cabinet, provide to the
Interim Joint Committee on Appropriations and Revenue an annual
budget and detailed quarterly financial reports;
(g)Conduct periodic audits, independently or in cooperation with the
Education and Labor Cabinet or the Department of Revenue, of all
entities subject to the assessments imposed in this chapter; and
(h)Report monthly to the Committees on Appropriations and Revenue and
on Economic Development and Workforce Investment its monthly
expenditures of restricted agency funds and the nature of the
expenditures.
(3)The commission shall have all of the powers necessary or convenient to carry
out and effectuate the purposes for which it was established, including, but not
limited to, the power:
(a)To sue and be sued, complain, or defend, in its name;
(b)To elect, appoint, or hire officers, agents, and employees, and define their
duties and fix their compensation within the limits of its budget approved
by the General Assembly. Notwithstanding any provision of KRS Chapter
18A to the contrary, officers and employees of the funding commission
may be exempted from the classified service;
(c)To contract for investment counseling, legal, actuarial, auditing, and other
professional services in accordance with the provisions relating to
personal service contracts contained in KRS Chapter 45A;
(d)To appoint, hire, and contract with banks, trust companies, and other
entities to serve as depositories and custodians of its investment receipts
and other funds;
(e)To take any and all other actions consistent with the purposes of the
commission and the provisions of this chapter; and
(f)To make and promulgate administrative regulations.
(4)The Kentucky Workers' Compensation Funding Commission may utilize the
investment expertise and advice of the Office of Financial Management within
the Finance and Administration Cabinet. The Kentucky Workers' Compensation
Funding Commission may procure one
(1)or more consulting firms and enter
into a personal service contract with such consulting firms to provide
investment advisory, investment counseling, or investment management
services. The Office of Financial Management shall participate in the selection
of any firms for investment services provided, however, the Kentucky Workers'
Compensation Funding Commission shall have the right to make the final
decision on the selection of any firms. Notwithstanding any provisions of this
section to the contrary, all contracts for investment advisory, investment
counseling, or investment management services or for the management of
assets shall be subject to KRS Chapter 45A. The fees charged by financial
institutions for managing the investments of the funds of the funding
commission shall be paid from the investment earnings of the funds.
(5)The commission shall be attached to the Education and Labor Cabinet for
administrative purposes only.