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Kentucky Harlan Coal Co. v. Holmes1/31/1994
Opinion OF THE COURT BY JUSTICE REYNOLDS
In two consolidated cases we address the issue of the constitutionality of KRS 342.732(1)(d) which declares:
If the administrative law Judge finds that an employee has occupational pneumoconiosis with a radiographic classification of category 2/1, 2/2, 2/3, 3/2, 3/3, or progressive massive fibrosis, based on the latest 1LO International Classification of Radiographics, there shall be an irrebuttable presumption that the employee is totally disabled resulting from exposure to coal dust and the administrative law Judge shall award income benefits equal to sixty-six and two-thirds percent (66-2/3%) of the employee's average weekly wage but not more than one hundred percent (100%) of the state average weekly wage and not less than twenty percent (20%) of the average weekly wage of the state as determined by KRS 342.740. Income benefits awarded under this paragraph shall be payable to the employee during such disability.
The statute essentially provides income benefits for occupational pneumoconiosis resulting from coal dust exposure, upon a finding that an employee has fixed/defined radiographic evidence of simple coal workers' pneumoconiosis. There shall be an irrebuttable presumption that the employee is totally disabled therefrom.
Kentucky Harlan Coal Company, Department of Mines and Minerals, and the Special Fund are arrayed against the constitutionality of the statute.
In the case of Commonwealth of Kentucky, Department of Mines and Minerals v. Arthur Moore, and Special Fund, et al., the basic facts are that Arthur Moore, an employee of the Department of Mines and Minerals, was determined by the Administrative Law Judge to have pneumoconiosis of 2/2 or above. The irrebuttable presumption provided by the statute was applied. No argument as to a determination of Moore's ability to perform some work was considered because of the irrebuttable presumption mandating total, permanent disability. Appellant's argument centers upon the statute.
In the case of Kentucky Harlan Coal Company v. Frank Holmes, and Special Fund, et al., the basic facts are not at issue. The employer raises issues additional to that of the constitutionality of the statute which are later addressed in this opinion.
It is contended that the statute is unconstitutional on four counts: (1) that it is special legislation contrary to Section 59(24) of the Kentucky Constitution; (2) that there is no rational basis/connection between the fact proved and the ultimate fact presumed; (3) that it is violative of due process rights; and (4) that the statute violates equal protection.
The constitutionality of KRS 342.732(1)(d) was upheld, in both cases, by the Court of Appeals. We affirm.
BACKGROUND
The social, economic and legislative history of the Act provides a basis for the statute's enactment in 1987 at an extraordinary session of the Kentucky legislature. In view of a rising concern that the cost of workmen's compensation and the increasing liability of the Special Fund would deter industrial development and encourage existing industries to depart the state, a task force of highly representative members conducted multiple meetings in 1986 and 1987. Studies by medical, economic, labor, management, actuarial and financial consultants culminated in a special legislative session.
Factors, including the following were determined:
1. Approximately 78% of the Special Fund's liability in the five years preceding July 1987, was attributable to the coal i
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