Request By:
Mr. Scott Allan Wilson
Attorney
Kentucky Association of Counties
P.O. Box 345 - 323 Shelby Street
Frankfort, Kentucky 40602
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Martin Glazer, Assistant Attorney General
This is in reply to your letter of February 2, 1978 in which you ask the following question:
"Can a city join with other cities and counties to provide a workmen's compensation self-insurance program?"
In 1976, the Kentucky General Assembly, in its special session, amended KRS 342.350 and added subsection (4), to wit:
"In addition, the board, under rules and regulations as it may prescribe, may permit two or more employers to enter into agreements to pool their liabilities under this chapter for the purpose of qualifying as self-insurers and each employer member of such approved group shall be classified as a self-insurer as defined under this chapter. Employers securing certification as group self-insurers are regulated by the rules and regulations drawn by the workmen's compensation board and are not to be in any way subject to the provisions of subsections (1), (2) and (3) of this section; provided, however, that the governor may assign the regulatory authority under this subsection to another board or agency pursuant to KRS 12.025."
KRS 342.630(2) does include cities and counties or any other governmental units in the definition of employers. Further, KRS 65.210 - 65.300 authorizes various governmental units to join in governmental operations. KRS 65.240 provides in part that any power or powers, privileges or authority exercised or capable of being exercised by a public agency of the state may be exercised jointly with any other public agency of the state.
Thus, as long as cities and counties comply with the aforesaid statutes (i.e. Chapter 65.210 - 65.300) and meet the financial requirements of the Workmen's Compensation Board and rules and regulations thereof, we see no impediment to cities joining with other cities and/or counties to provide workmen's compensation self-insurance.