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Bill > SB343

KY SB343

KY SB343
AN ACT relating to the Department of Workers' Claims and declaring an emergency.

summary

Introduced
03/02/2026
In Committee
03/19/2026
Crossed Over
03/11/2026
Passed
03/27/2026
Dead

Introduced Session

Potential new amendment
2026 Regular Session

Bill Summary

Create a new section of KRS Chapter 342 to establish the Department of Workers' Claims to be administratively attached to the Office of the Governor; amend KRS 342.122 to provide that the combined budgets of the Occupational Safety and Health Review Commission, Workers' Compensation Nominating Committee, Department of Workplace Standards, and the proportional support for general administration and approved indirect cost allocation to the Education and Labor Cabinet, shall not exceed 75% of the total combined budget submitted by the Workers’ Compensation Funding Commission and that the Workers’ Compensation Funding Commission, the Department of Workers’ Claims, the Occupational Safety and Health Review Commission, the Workers’ Compensation Nominating Committee, the Department of Workplace Standards, excluding the Division of Wages and Hours contained within the Department of Workplace Standards, and the Education and Labor Cabinet, shall each submit a budget which shall be combined by the Workers’ Compensation Funding Commission and reflected in the enacted budget of the Commonwealth; amend KRS 342.228 to require the commissioner of the Department of Workers' Claims to have specified knowledge and experience in the areas of public administration, administrative law, and workers' compensation by having a minimum of 8 years of legal practice experience in the area of workers' compensation; amend KRS 342.230 to authorize the commissioner to fill all positions in the Department for Workers' Claims with KRS Chapter 18A employees; amend KRS 151B.015 to remove the Department of Workers' Claims from the Education and Labor Cabinet; amend various other sections to conform; provide that all records, equipment, staff, budgets, and unexpended funds associated with the Department of Workers' Claims shall be transferred as part of the reorganization; provide that all administrative regulations, decisions, and actions of the department that have not been repealed or rescinded shall continue in effect after the effective date of the Act, unless and until they are amended, repealed, or rescinded by the department after the effective date of this Act; EMERGENCY.

AI Summary

This bill establishes a new Department of Workers' Claims, which will be administratively attached to the Office of the Governor, rather than the Education and Labor Cabinet, and requires the commissioner of this department to have at least eight years of legal practice experience in workers' compensation law, along with expertise in public administration and administrative law. It also reorganizes the department into several offices and divisions, including an Office of Administrative Law Judges headed by a chief administrative law judge, and allows the commissioner to fill positions with employees under KRS Chapter 18A. The bill mandates that the combined budgets of certain related commissions and departments, including the Occupational Safety and Health Review Commission and the Department of Workplace Standards, cannot exceed 75% of the total budget submitted by the Workers' Compensation Funding Commission, which is responsible for combining and reflecting these budgets in the Commonwealth's enacted budget. Furthermore, it transfers all records, equipment, staff, budgets, and unexpended funds from the previous structure to the new Department of Workers' Claims, and ensures that all existing administrative regulations, decisions, and actions remain in effect unless officially amended or rescinded by the new department. An emergency clause is included, stating the bill takes effect immediately upon passage due to the critical need for prompt reorganization.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

delivered to Governor (on 03/27/2026)

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