KRS 136.636 — Security for compliance

(1) Whenever it is deemed necessary to ensure compliance with KRS 136.600 to
136.660, the department may require any person required to collect the taxes
imposed by KRS 136.604 or 136.616 to place security with the department. The
amount of the security shall be fixed by the department, but shall not be greater than
three (3) times the estimated average monthly liability of the provider. This
limitation shall apply regardless of the type of security placed with the department.
(2) The amount of the security may be increased or decreased by the department subject
to the limitations provided in subsection (1) of this section.
(3) If necessary, the department may sell the security at public auction to recover any
tax, interest, or penalty due. However, security in the form of a bearer bond issued
by the United States or any state or local governmental unit that has a prevailing
market price may be sold by the department at a private sale at a price not lower
than the prevailing market price.
(4) The department shall provide notice of the date, time, and place of the sale to the
person who placed the security with the department. Notice shall be sent by certified
mail to the person's last known address, as reflected in the records of the
department, or delivered to the person.
(5) As used in this section, "delivery" or "delivered to" means mailing the notice to the
person to whom it is addressed, leaving it at his or her place of business with the
person in charge of the place of business, or, if there is no one in cha rge, leaving it
in a conspicuous place at the place of business. If the place of business is closed or
the person to be served has no place of business, delivery includes:
(a) Leaving it at the person's home with some person of suitable age and
discretion residing in the home;
(b) Serving it upon the person's agent for service process; or
(c) Any other method permitted by the Kentucky Revised Statutes.
(6) Notice by certified mail shall be postmarked no later than ten (10) days prior to the
sale.
(7) Any su rplus above the amounts due to the department after the sale shall be
returned to the person who placed the security.