Request By:
Thomas J. Luber
WYATT, TARRANT & COMBS
Citizens Plaza
Louisville, Kentucky 40202
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Martin Glazer, Assistant Attorney General
You seek an opinion of this Office as to whether the Kentucky Center for the Arts Corporation (hereafter KCAC) is a "political subdivision" of the Commonwealth within the meaning of KRS 61.420(5) and whether it may be excluded from the Commonwealth's voluntary agreement with the Federal Social Security Administration providing for coverage for Social Security purposes.
There is no doubt that the KCAC is a state governmental entity. In fact, it is a taxing district in that a three percent transient room tax is levied for the KCAC pursuant to KRS 153.440.
You have pointed out that we previously advised in OAG 81-129 that it is a state governmental entity.
KRS 61.420(5) defines political subdivision as:
"Political subdivision," in addition to counties, municipal corporations and school districts, includes instrumentalities of the Commonwealth, of one or more of the political subdivisions or of the Commonwealth and one or more of its political subdivisions, and any other governmental unit thereof.
When the Commonwealth originally entered into contractual relations with the Federal Social Security Administration for voluntary coverage of state and local employees pursuant to KRS 61.460, the KCAC did not exist. For it to participate, the subdivision must submit a plan to the State Office for Social Security which may accept such a plan provided such a plan conforms to KRS 61.460. Until such a plan is submitted and approved, the employees of KCAC are not covered for social security purposes and by both federal and state statute are excluded therefrom.