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AN ACT relating to workers compensation. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘SECTION 1. A NEW SECTION OF KRS CHAPTER 342 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) Notwithstanding any other provision of this chapter, the Horsemen's Benevolent 5
and Protective Association is hereby authorized and empowered to: 6
(a) Establish, operate, and administer an insurance program for the purpose of 7
providing workers' compensation insurance coverage to members of the 8
Horsemen's Benevolent and Protective Association and other persons, 9
including owners of race horses, licensed by the Kentucky Horse Racing 10
Commission; 11
(b) Administer the insurance program as part of its corporate activity or to 12
carry out the insurance program through one (1) or more other entities that 13
may include a trust established under applicable state law; 14
(c) Establish criteria for eligibility of persons participating in the insurance 15
program and be the sole arbiter of the criteria and eligibility for 16
participation; 17
(d) Declare as surplus and distribute a portion of all accumulated funds derived 18
from the insurance program to the persons participating in the program 19
and be the sole arbiter of which funds to declare as surplus and which 20
funds to distribute; 21
(e) Contract with one (1) or more insurers authorized to do business in this 22
state for the purpose of implementing the program; and 23
(f) Take other such acts as may be necessary or helpful in establishing, 24
operating, and administering the insurance program, including the 25
establishment of premiums which may lower the cost of workers' 26
compensation insurance coverage and related benefits to horsemen and 27 UNOFFICIAL COPY 22 RS BR 93
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other licensees of the Kentucky Horse Racing Commission. 1
(2) Notwithstanding any other provision of this chapter, the Horsemen's Benevolent 2
and Protective Association is encouraged to do the following to implement the 3
insurance program: 4
(a) Immediately and diligently seek to secure and provide workers' 5
compensation insurance coverage and related benefits from an insurance 6
company authorized to do business in this state, for the benefit of trainers 7
and others licensed by the Kentucky Horse Racing Commission; and 8
(b) Utilize assets, revenues, and revenue sources received by or due to it for the 9
benefit of horsemen to create a reserve fund for the purpose of securing and 10
providing workers' compensation insurance coverage and related benefits at 11
reasonable rates. The assets, revenues, and revenue sources may be used or 12
pledged as security for use in creating the fund. The total sum of such 13
revenues used shall not exceed six million dollars ($6,000,000). Use of 14
moneys in and expenditures from the reserve fund shall be solely for the 15
purposes of establishing, operating, and administering the insurance 16
program. 17
(3) Once the workers' compensation insurance coverage and related benefits 18
program as authorized in this section is available through the Horsemen's 19
Benevolent and Protective Association for the benefit of trainers, owners, and 20
others licensed by the Kentucky Horse Racing Commission, the following 21
conditions shall apply: 22
(a) In addition to all other requirements for a trainer's license, each applicant 23
for a trainer's license shall furnish to the Kentucky Horse Racing 24
Commission, prior to being licensed, a certificate of workers' compensation 25
insurance coverage issued by the Horsemen's Benevolent and Protective 26
Association or its authorized insurer indicating that: 27 UNOFFICIAL COPY 22 RS BR 93
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1. Workers' compensation insurance coverage is in full force and effect 1
for the employees of the applicant; or 2
2. The applicant applied for workers' compensation insurance coverage 3
but was declined for good cause; 4
(b) If the certificate of workers' compensation insurance coverage indicates 5
that the trainer applied for the coverage under the insurance program, but 6
was declined for good cause, that trainer shall provide a certificate of 7
workers' compensation insurance coverage and related benefits from 8
another insurance company authorized to do business in this state or 9
otherwise acceptable to the Kentucky Horse Racing Commission; 10
(c) No racing association in this state shall admit any trainer into its racing 11
facilities prior to obtaining from the trainer a certificate of workers' 12
compensation insurance coverage issued by the Horsemen's Benevolent and 13
Protective Association or its authorized insurer. This certificate shall 14
indicate that workers' compensation insurance coverage is in full force and 15
effect for the employees of the trainer. If the certificate of workers' 16
compensation insurance coverage indicates that the trainer applied for 17
coverage under the insurance program, but was declined for good cause, 18
then that trainer shall provide a certificate of workers' compensation 19
insurance coverage and related benefits from another insurance company 20
authorized to do business in this state or otherwise acceptable to the racing 21
association. Acceptance of the proof of coverage shall not be unreasonably 22
withheld by the racing association; 23
(d) All racing associations in this state are encouraged to cooperate with the 24
Horsemen's Benevolent and Protective Association in the implementation 25
of the insurance program; and 26
(e) The total amount of purses and purse supplements authorized for use by the 27 UNOFFICIAL COPY 22 RS BR 93
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Horsemen's Benevolent and Protective Association for establishment, 1
operation, or administration of the insurance program shall not exceed two 2
percent (2%) of the total amount of purses and purse supplements available 3
for purses for any race meet. 4