KRS § 342.1223 — KY Code / Title XXVII / Chapter 342 / Section 342.1223
342.1223 Kentucky Workers' Compensation Funding Commission -- Commission's relationship with Office of Financial Management within the Finance and Administration Cabinet
Status: in_force

342.1223 Kentucky Workers' Compensation Funding Commission --

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.