Wage Bonds for Mining Permits | Kentuckians For The Commonwealth

Wage Bonds for Mining Permits

Senate Bill Number: 

Senate Bill 27 would have prohibited the approval of mining permit applications for coal companies that are not compliant with the wage performance bonding requirements in state law. Penalties collected for violations of this requirement would be paid to employees harmed by the employer's failure to post the required performance bond.

As we saw over the summer when Blackjewel declared bankruptcy, the state of Kentucky didn't enforce the already existing bond law to ensure that miners would receive severance pay. SB 27 tried to prevent that from happening to other workers by ensuring coal companies cannot get or maintain a permit to mine coal unless they have a bond to pay severance pay to their workers.

Bill Sponsor(s): 
J. Turner, C. Embry Jr., D. Harper Angel

SB 27 was approved by the Senate Natural Resources & Energy Committee on March 18, by an 11-0 vote (see how committee members voted). However, Senate GOP leaders did not allow the bill to be voted on by the full Senate and eventually killed the bill.

KFTC's Position: 
KFTC Supports