KRS 142.353 — Security to insure compliance -- Sale of security or bearer bond -- Restraining order or injunction

(1) Whenever it is deemed necessary to insure compliance with the provisions of KRS
142.301 to 142.363, the department may require any person subject to the taxes
imposed by KRS 142.303, 142.307, 142.309, 142.311, 142.314, 142.315, 142.316,
142.361, and 142.363 to place security with it. The amount of the security shall be
fixed by the department but shall not be greater than three (3) times the estimat ed
average liability of the provider or all providers in the same class as the provider,
whichever is greater. This limitation shall apply regardless of the type of security
placed with the department.
(2) The amount of the security may be increased or dec reased by the department,
subject to the limitations provided in subsection (1) of this section.
(3) (a) If necessary, the department may sell the security at public auction in order to
recover any tax, penalty, or interest due. However, security in the fo rm of a
bearer bond issued by the United States or any state or local governmental unit
which 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.
(b) 1. The department shall p rovide notice by certified mail, sent to the last
known address as reflected in the records of the department, or by
delivery, to the person who placed the security with the department of
the date, time, and place of the sale.
2. Delivery means mailing the notice to the person it is addressed to,
leaving the notice at his place of business with the person in charge of
the place of business, or, if there is no one in charge, leaving the notice
at 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, leaving it at
his home, with a person of suitable age and discretion residing in the
home. Notice by certified mail must be postmarked no later than ten (10)
days prior to the sale. N otice by delivery must be given no later than ten
(10) days prior to the sale.
(c) Any amount in excess of the amount due the department after the sale shall be
returned to the person placing the security.
(4) The Commonwealth may bring an action for a res training order or a temporary or
permanent injunction to restrain or enjoin the operation of a provider's business
until the security is obtained. The action may be brought in the Franklin Circuit
Court or in the Circuit Court having jurisdiction over the provider.