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AN ACT relating to broadband deployment, making an appropriation therefor, and 1
declaring an emergency. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
SECTION 1. A NEW SECTION OF KRS CHAPTER 224A IS CREATED TO 4
READ AS FOLLOWS: 5
(1) There is established the Office of Broadband Development, which shall: 6
(a) Be administratively attached to the Kentucky Infrastructure Authority; 7
(b) Encourage, foster, develop, and improve broadband within the 8
Commonwealth to: 9
1. Drive job creation, promote innovation, and expand markets for 10
Kentucky businesses; and 11
2. Serve the ongoing and growing needs of Kentucky's: 12
a. Agricultural, educational, health care, and public safety systems; 13
b. Industries and businesses; 14
c. Governmental operations; and 15
d. Citizens; 16
(c) Improve broadband accessibility for unserved and underserved 17
communities and populations; 18
(d) Develop, coordinate, administer, and implement the Commonwealth's 19
broadband deployment fund under Section 3 of this Act; 20
(e) Perform all administrative functions necessary to carry out the purposes of 21
this section; 22
(f) On behalf of the Commonwealth, serve as: 23
1. The central broadband planning and coordination entity; 24
2. The single point of contact and liaison to federal agencies and 25
programs regarding broadband issues, including but not limited to: 26
a. National Telecommunications and Information Administration; 27 UNOFFICIAL COPY 22 RS HB 315/EN
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b. Federal Communications Commission; 1
c. United States Department of Agriculture Rural Utilities Service; 2
and 3
d. United States Treasury; 4
3. An information clearinghouse for federal programs providing 5
financial assistance to institutions located in rural areas seeking to 6
obtain access to broadband; 7
(g) Coordinate with other state, regional, local, and private entities to: 8
1. Develop and implement a statewide broadband plan, including 9
relevant goals and objectives; 10
2. Develop and encourage cost-effective broadband; 11
3. Make recommendations for broadband infrastructure development, 12
particularly in rural, unserved, and underserved areas; and 13
4. Provide consultation services to local units of government or other 14
project sponsors in connection with the planning, acquisition, 15
improvement, construction, or development of any broadband 16
deployment project; 17
(h) Monitor the broadband development efforts of other states and nations; 18
(i) Maintain data and statistics on broadband throughout the Commonwealth 19
by: 20
1. Collecting broadband availability data from Kentucky broadband 21
providers and other sources on a street address or location-specific 22
basis; 23
2. Verifying the accuracy of that data through on-the-ground testing; 24
3. Creating and maintaining a statewide interactive map displaying 25
broadband availability, which shall be available for public and state 26
government use online; 27 UNOFFICIAL COPY 22 RS HB 315/EN
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4. Analyzing the deployment data collected to inform and guide future 1
investments in broadband infrastructure, including moneys expended 2
under the broadband deployment fund; 3
5. Empirically validating, on a targeted basis, the accuracy of broadband 4
data that is routinely collected by the Federal Communications 5
Commission to pinpoint areas of overstatement and understatement 6
that may exist; 7
6. Challenging the validity of the data as may be warranted, on behalf of 8
the Commonwealth, to ensure that this state is receiving its due share 9
of funding from federal broadband programs; and 10
7. Monitoring the progress of federal awards for deploying broadband 11
infrastructure to Kentucky locations and issuing an annual report to 12
the Governor and the Interim Joint Committee on Appropriations and 13
Revenue by November 1 of each year; 14
(j) Develop a process for: 15
1. Receiving complaints related to insufficient broadband service; 16
2. Incorporating forms for the collection of data related to the 17
complaints; 18
3. Resolving complaints; 19
4. Reporting the information collected on unresolved complaints; and 20
5. Referring complaints to the Office of the Attorney General, Federal 21
Communications Commission, or Federal Trade Commission, as 22
appropriate; and 23
(k) Perform other duties and responsibilities as necessary to promote the 24
development of broadband within the Commonwealth. 25
(2) The office shall have all the power, not explicitly prohibited by statute, necessary 26
and convenient to carry out and effectuate the purposes of this section, including: 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(a) Entering into contracts or agreements necessary or incidental to the 1
performance of its duties, functions, and responsibilities; 2
(b) Soliciting, borrowing, accepting, receiving, and expending funds from any 3
public or private source, property, labor, or other things of value to be used 4
to carry out the office's operations, functions, and responsibilities; and 5
(c) Promulgating administrative regulations under KRS Chapter 13A. 6
(3) (a) The authority may contract with a private nonprofit corporation with at 7
least five (5) years of broadband and telecommunications public policy 8
research and mapping experience to fulfill the purposes, duties, and 9
responsibilities of the office as required in subsections (1) and (2) of this 10
section. 11
(b) If the authority exercises its option to contract with an entity to fulfill the 12
office's obligations under this section, the procurement shall not abrogate 13
the authority from fulfilling the office's duties or achieving the timelines for 14
issuing grants in Section 4 of this Act. 15
(4) The authority shall report the activities of the office to the Legislative Research 16
Commission on a semiannual basis, each January 1 and each July 1. 17
Section 2. KRS 224A.011 is amended to read as follows: 18
As used in this chapter, unless the context requires otherwise: 19
(1) "Administrative fee" means a fee assessed and collected by the authority from 20
borrowers and applicants under assistance agreements, to be used for operational 21
expenses of the authority; 22
(2) "Applicable interest rate" means the rate of interest which shall be used as part of 23
the repayment criteria for an assistance agreement between a governmental agency 24
and the authority, and shall be determined by the authority pertinent to the source of 25
funds from which the assistance agreement is funded; 26
(3) "Applicant" means a governmental agency or private sector entity that has 27 UNOFFICIAL COPY 22 RS HB 315/EN
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submitted an application to the office[authority] for a grant from the broadband 1
deployment fund; 2
(4) "Application" means an application submitted by an applicant for a grant from the 3
broadband deployment fund; 4
(5) "Assistance agreement" means the agreement to be made and entered into by and 5
between a governmental agency or a private entity and the authority, as authorized 6
by this chapter, providing for a lease, loan, services, or grant to a governmental 7
agency or a private entity or for the purchase of obligations issued by the 8
governmental agency, and for the repayment thereof to the authority by the 9
governmental agency or a private entity; 10
(6) "Authority" means the Kentucky Infrastructure Authority, which is created by this 11
chapter; 12
(7) "Authority revenues" means the totality of all: 13
(a) Service charges; 14
(b) Utility tax receipts, to the extent not otherwise committed and budgeted by the 15
authority during any fiscal period of the authority; 16
(c) Any gifts, grants, or loans received, to the extent not otherwise required to be 17
applied; 18
(d) Any and all appropriations made to the authority by the General Assembly of 19
the Commonwealth of Kentucky, to the extent not otherwise required to be 20
applied; 21
(e) All moneys received in repayment of and for interest on any loans made by the 22
authority to a governmental agency, except as provided in KRS 224A.111, 23
224A.1115, and 224A.112, or as principal of and interest on any obligations 24
issued by a governmental agency and purchased by the authority, or as receipts 25
under any assistance agreement; 26
(f) The proceeds of bonds or long-term debt obligations of governmental 27 UNOFFICIAL COPY 22 RS HB 315/EN
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agencies pledged to the payment of bond anticipation notes issued by the 1
authority on behalf of the said governmental agency to provide interim 2
construction financing; and 3
(g) Payments under agreements with any agencies of the state and federal 4
government; 5
(8) "Borrower or borrowing entity" means any agency of the state or its political 6
subdivisions, any city, or any special district created under the laws of the state 7
acting individually or jointly under interagency or interlocal cooperative agreements 8
to enter into assistance agreements with the authority; 9
(9)[ "Broadband" means any wireline or fixed terrestrial technology having a capacity to 10
transmit data from or to the Internet with a minimum speed of twenty-five (25) 11
megabits per second downstream and three (3) megabits per second upstream as 12
defined by the Federal Communications Commission or the United States 13
Department of Agriculture and any amendments to those definitions. If the agencies 14
use different speed definitions, the faster speed definition shall apply to KRS 15
224A.110, 224A.112, and 224A.1121; 16
(10)] "Broadband deployment fund" means a fund to assist with the construction, 17
development, or improvement of broadband infrastructure, broadband services, or 18
technologies that constitute a part of, or are related to, broadband infrastructure or 19
broadband services, to provide for broadband service in underserved or unserved 20
areas of the Commonwealth; 21
(10)[(11)] "Broadband deployment project" means a proposed deployment of broadband 22
service infrastructure set forth in an application for grant funding under KRS 23
224A.112; 24
(11)[(12)] "Broadband deployment project area" means a geographic area determined by 25
census block,[ or] shapefile geospatial data, or list of addresses[ for] which has 26
been proposed for grant funding[ has been authorized] under this section and KRS 27 UNOFFICIAL COPY 22 RS HB 315/EN
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224A.110, 224A.112, and 224A.1121; 1
(12)[(13)] "Census block" means the smallest geographic unit used by the United States 2
Census Bureau that is reported on the Federal Communications Commission (FCC) 3
Form 477 relating to fixed broadband deployment data; 4
(13)[(14)] "Community flood damage abatement project" means any structural or 5
nonstructural study, plan, design, construction, development, improvement, or other 6
activity to provide for flood control; 7
(14)[(15)] "Construction" means and includes but is not limited to: 8
(a) Preliminary planning to determine the economic and engineering feasibility of 9
infrastructure projects, the engineering, architectural, legal, fiscal, and 10
economic investigations, and studies necessary thereto, and surveys, designs, 11
plans, working drawings, specifications, procedures, and other actions 12
necessary to the construction of infrastructure or solid waste projects; 13
(b) The erection, building, acquisition, alteration, remodeling, improvement, or 14
extension of infrastructure or solid waste projects; and 15
(c) The inspection and supervision of the construction of infrastructure or solid 16
waste projects and all costs incidental to the acquisition and financing of 17
same. This term shall also relate to and mean any other physical devices or 18
appurtenances in connection with, or reasonably attendant to, infrastructure or 19
solid waste projects; 20
(15)[(16)] "Dams" means any artificial barrier, including appurtenant works, which does 21
or can impound or divert water, and which either: 22
(a) Is or will be twenty-five (25) feet or more in height from the natural bed of the 23
stream or watercourse at the downstream toe of the barrier, as determined by 24
the Energy and Environment Cabinet; or 25
(b) Has or will have an impounding capacity at maximum water storage elevation 26
of fifty (50) acre feet or more; 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(16)[(17)] "Distribution facilities" means all or any part of any facilities, devices, and 1
systems used and useful in obtaining, pumping, storing, treating, and distributing 2
water for agricultural, industrial, commercial, recreational, public, and domestic 3
use; 4
(17)[(18)] "Energy and Environment Cabinet" means the Kentucky Energy and 5
Environment Cabinet, or its successor, said term being meant to relate specifically 6
to the state agency which is designated as the water pollution agency for the 7
Commonwealth of Kentucky, for purposes of the federal act; 8
(18)[(19)] "Federal act" means the Federal Clean Water Act (33 U.S.C. secs. 1251 et 9
seq.) as said federal act may be amended from time to time in the future, or any 10
other enactment of the United States Congress providing funds that may assist in 11
carrying out the purposes of the authority; 12
(19)[(20)] "Federally assisted wastewater revolving fund" means that fund which will 13
receive federal and state funds or the proceeds from the sale of revenue bonds of the 14
authority for the purpose of providing loans to finance construction of publicly 15
owned treatment works as defined in Section 212 of the federal act and for the 16
implementation of a management program established under Section 319 of the 17
federal act and for the development and implementation of a conservation and 18
management plan under Section 320 of the federal act; 19
(20)[(21)] "Governmental agency" means any incorporated city or municipal corporation, 20
or other agency, or unit of government within or a department or a cabinet of the 21
Commonwealth of Kentucky, now having or hereafter granted, the authority and 22
power to finance, acquire, construct, or operate infrastructure or solid waste 23
projects. This definition shall specifically apply but not by way of limitation to 24
incorporated cities; counties, including any counties containing a metropolitan 25
sewer district; sanitation districts; water districts; water associations if these 26
associations are permitted to issue interest-bearing obligations which interest would 27 UNOFFICIAL COPY 22 RS HB 315/EN
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be excludable from gross income under Section 103 of the Internal Revenue Code 1
of 1986 as amended; sewer construction districts; metropolitan sewer districts; 2
sanitation taxing districts; a regional wastewater commission established under 3
KRS 65.8901 to 65.8923; and any other agencies, commissions, districts, or 4
authorities (either acting alone, or in combination with one another in accordance 5
with any regional or area compact, or intergovernmental cooperative agreements), 6
now or hereafter established in accordance with the laws of the Commonwealth of 7
Kentucky having and possessing the described powers described in this subsection; 8
(21)[(22)] "Industrial waste" means any liquid, gaseous, or solid waste substances 9
resulting from any process of industry, manufacture, trade, or business, or from the 10
mining or taking, development, processing, or recovery of any natural resources, 11
including heat and radioactivity, together with any sewage as is present therein, 12
which pollutes the waters of the state, and specifically, but not by way of limitation, 13
means heat or thermal differentials created in the waters of the state by any 14
industrial processing, generating, or manufacturing processes; 15
(22)[(23)] "Infrastructure project" means any construction or acquisition of treatment 16
works, facilities related to the collection, transportation, and treatment of 17
wastewater as defined in KRS 65.8903, distribution facilities, or water resources 18
projects instituted by a governmental agency or an investor-owned water utility 19
which is approved by the authority and, if required, by the Energy and Environment 20
Cabinet, Public Service Commission, or other agency; solid waste projects; dams; 21
storm water control and treatment systems; gas or electric utility; broadband 22
deployment project; or any other public utility or public service project which the 23
authority finds would assist in carrying out the purposes set out in KRS 224A.300; 24
(23)[(24)] "Infrastructure revolving fund" means that fund which will receive state funds, 25
the proceeds from the sale of revenue bonds of the authority or other moneys 26
earmarked for that fund for the purpose of providing loans or grants to finance 27 UNOFFICIAL COPY 22 RS HB 315/EN
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construction or acquisition of infrastructure projects as defined in this section; 1
(24)[(25)] "Loan or grant" means moneys to be made available to governmental agencies 2
by the authority for the purpose of defraying all or any part of the total costs 3
incidental to construction or acquisition of any infrastructure project; 4
(25)[(26)] "Market interest rate" means the interest rate determined by the authority 5
under existing market conditions at the time the authority shall provide financial 6
assistance to a governmental agency; 7
(26)[(27)] "Obligation of a governmental agency" means a revenue bond, bond 8
anticipation note, revenue anticipation note, lease, or other obligation issued by a 9
governmental agency under KRS 58.010 et seq. or other applicable statutes; 10
(27)[(28)] "Office" means the Office of Broadband Development; 11
(28) "Person" means any individual, firm, partnership, association, corporation, or 12
governmental agency; 13
(29) "Pollution" means the placing of any noxious or deleterious substances 14
("pollutants"), including sewage and industrial wastes, in any waters of the state or 15
affecting the properties of any waters of the state in a manner which renders the 16
waters harmful or inimical to the public health or to animal or aquatic life, or to the 17
use, present or future, of these waters for domestic water supply, industrial or 18
agricultural purposes, or recreational purposes; 19
(30) "Prioritization schedules" means the list of wastewater treatment works, distribution 20
facilities and water resources projects which the Energy and Environment Cabinet 21
has evaluated and determined to be of priority for receiving financial assistance 22
from the federally assisted wastewater revolving fund and the federally assisted 23
drinking water revolving fund, or the list of infrastructure projects which the 24
authority has evaluated and determined to be of priority for receiving financial aid 25
from the infrastructure revolving fund. The evaluation by the authority of 26
infrastructure projects for water systems shall be undertaken with input from the 27 UNOFFICIAL COPY 22 RS HB 315/EN
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appropriate area development district; 1
(31) "Recovered material" means those materials which have known current use, reuse, 2
or recycling potential, which can be feasibly used, reused, or recycled, and which 3
have been diverted or removed from the solid waste stream for sale, use, reuse, or 4
recycling, whether or not requiring subsequent separation and processing but does 5
not include materials diverted or removed for purposes of energy recovery or 6
combustion except refuse-derived fuel (RDF), which shall be credited as a 7
recovered material in an amount equal to that percentage of the municipal solid 8
waste received on a daily basis at the processing facility and processed into RDF; 9
but not to exceed fifteen percent (15%) of the total amount of the municipal solid 10
waste received at the processing facility on a daily basis; 11
(32) "Recovered material processing facility" means a facility engaged solely in the 12
storage, processing, and resale or reuse of recovered material but does not mean a 13
solid waste facility if solid waste generated by a recovered material processing 14
facility is managed in accordance with KRS Chapter 224 and administrative 15
regulations adopted by the cabinet; 16
(33) "Revenue bonds" means special obligation bonds issued by the authority as 17
provided by the provisions of this chapter, which are not direct or general 18
obligations of the state, and which are payable only from a pledge of, and lien upon, 19
authority revenues as provided in the resolution authorizing the issuance of the 20
bonds, and shall include revenue bond anticipation notes; 21
(34) "Service charge" means any monthly, quarterly, semiannual, or annual charge to be 22
imposed by a governmental agency, or by the authority, for any infrastructure 23
project financed by the authority, which service charge arises by reason of the 24
existence of, and requirements of, any assistance agreement; 25
(35) "Sewage" means any of the waste products or excrements, or other discharges from 26
the bodies of human beings or animals, which pollute the waters of the state; 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(36) "Shapefile" means a file format for storing, depicting, and analyzing geospatial data 1
showing broadband coverage; 2
(37) "Solid waste" means "solid waste" as defined by KRS 224.1-010(30)(a); 3
(38) "Solid waste facility" means any facility for collection, handling, storage, 4
transportation, transfer, processing, treatment, or disposal of solid waste, whether 5
the facility is associated with facilities generating the waste or otherwise, but does 6
not include a container located on property where the waste is generated and which 7
is used solely for the purpose of collection and temporary storage of that solid waste 8
prior to off-site disposal, or a recovered material processing facility; 9
(39) "Solid waste project" means construction, renovation, or acquisition of a solid waste 10
facility which shall be instituted and owned by a governmental agency; 11
(40) "Solid waste revolving fund" means that fund which shall receive state funds, the 12
proceeds from the sale of revenue bonds of the authority, or other moneys 13
earmarked for the purpose of providing loans or grants to finance solid waste 14
projects defined in this section; 15
(41) "State" means the Commonwealth of Kentucky; 16
(42) "System" means the system owned and operated by a governmental agency with 17
respect to solid waste projects, treatment works, or infrastructure projects financed 18
as provided by the assistance agreement between the governmental agency and the 19
authority; 20
(43) "Treatment works" or "wastewater treatment works" means all or any part of any 21
facilities, devices, and systems used and useful in the storage, treatment, recycling, 22
and reclamation of wastewater or the abatement of pollution, including facilities for 23
the treatment, neutralization, disposal of, stabilization, collecting, segregating, or 24
holding of wastewater, including without limiting the generality of the foregoing, 25
intercepting sewers, outfall sewers, pumping power stations, and other equipment 26
and their appurtenances; extensions, improvements, remodeling, additions, and 27 UNOFFICIAL COPY 22 RS HB 315/EN
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alterations thereof, and any wastewater treatment works, including site acquisition 1
of the land that will be an integral part of the wastewater treatment process, or is 2
used for ultimate disposal of residues resulting from wastewater treatment, together 3
with any other facilities which are deemed to be treatment works in accordance with 4
the federal act; 5
(44) "Underserved area" means any project area where[ fixed, terrestrial] broadband 6
service with a minimum one hundred (100)[twenty-five (25)] megabits per second 7
downstream and twenty (20)[three (3)] megabits per second upstream is not 8
available; 9
(45) "Unserved area" means any project area where[ fixed, terrestrial] broadband service 10
with a minimum twenty-five (25)[ten (10)] megabits per second downstream and 11
three (3) megabits[one (1) megabit] per second upstream is not available; 12
(46) "Utility tax" means the tax which may be imposed by the authority on every 13
purchase of water or sewer service in the Commonwealth of Kentucky; 14
(47) "Variable rate revenue bonds" means revenue bonds the rate of interest on which 15
fluctuates either automatically by reference to a predetermined formula or index or 16
in accordance with the standards set forth in KRS 224A.120; 17
(48) "Wastewater" means any water or liquid substance containing sewage, industrial 18
waste, or other pollutants or contaminants derived from the prior use of these 19
waters; 20
(49) "Water resources" means all waters of the state occurring on the surface, in natural 21
or artificial channels, lakes, reservoirs, or impoundments, and in subsurface 22
aquifers, which are available, or which may be made available to agricultural, 23
industrial, commercial, recreational, public, and domestic users; 24
(50) "Water resources project" means any structural or nonstructural study, plan, design, 25
construction, development, improvement, or any other activity including programs 26
for management, intended to conserve and develop the water resources of the state 27 UNOFFICIAL COPY 22 RS HB 315/EN
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and shall include all aspects of water supply, facilities to collect, transport, and treat 1
wastewater as defined in KRS 65.8903, flood damage abatement, navigation, water-2
related recreation, and land conservation facilities and measures; and 3
(51) "Waters of the state" means all streams, lakes, watercourses, waterways, ponds, 4
marshes, wells, springs, irrigation systems, drainage systems, and all other bodies or 5
accumulations of water, surface and underground, natural or artificial, which are 6
situated wholly or partly within, or border upon, this state, or are within its 7
jurisdiction, except those private waters which do not combine or effect a junction 8
with natural, surface, or underground waters. 9
Section 3. KRS 224A.112 is amended to read as follows: 10
(1) The infrastructure revolving fund shall be established in the State Treasury and shall 11
be administered by the authority. The fund shall be a dedicated fund, and all moneys 12
in the fund shall be allocated and dedicated solely to providing financial assistance 13
to governmental agencies, and investor-owned water systems as provided for in 14
KRS 96.540, 224A.306, 224A.308, and 224A.310, for the construction or 15
acquisition of infrastructure projects through an account designated as the 2020 16
water service account. 17
(2) The broadband deployment fund shall be established in the State Treasury and shall 18
be administered by the office[authority]. The fund shall be a dedicated fund, and all 19
moneys in the fund shall be allocated and dedicated solely to providing grant funds 20
to governmental agencies and private sector entities to construct infrastructure for 21
the deployment of broadband service to households and businesses in underserved 22
or unserved areas of the Commonwealth through an account designated as the 23
broadband deployment fund. 24
(3) Funds in subsections (1) and (2) of this section shall not be commingled and shall 25
be used only for the stated purposes in subsections (1) and (2) of this section. 26
(4) The financial assistance which may be provided by the revolving fund shall be 27 UNOFFICIAL COPY 22 RS HB 315/EN
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limited to: 1
(a) Making loans, on the condition that the loans are made at or below market 2
interest rates, including interest free loans, at terms not to exceed thirty (30) 3
years and that the fund will be credited with all payments of principal and 4
interest on all loans; 5
(b) Purchasing or guaranteeing, or purchasing insurance for, local or state 6
obligations when the action would improve credit market access or reduce 7
interest rates; 8
(c) Providing a source of revenue or security for the payment of principal and 9
interest on bonds or notes issued by the authority or other agencies of the state 10
if the proceeds of the sale of the bonds will be deposited in the fund; 11
(d) Providing moneys with which to carry out the requirements of assistance 12
agreements; and 13
(e) Making grants as funds specifically appropriated for grants or proceeds from 14
the sale of the authority's revenue bonds are available. 15
(5) The revolving fund shall be established, maintained, and credited with repayments 16
and the fund balance shall be available in perpetuity for its stated purposes. 17
(6) The authority may provide financial assistance from the revolving fund to 18
supplement assistance provided from the federally assisted wastewater revolving 19
fund as created in KRS 224A.111. 20
(7) The authority shall advise governmental agencies of the availability of the 21
infrastructure revolving fund and how moneys may be obtained from the fund. 22
(8) The authority may enter into any necessary or required agreement with federal or 23
state agencies or persons to carry out the provisions of this section. All state 24
agencies shall cooperate with the authority and share information with the authority 25
as appropriate to accomplish the purposes set out in KRS 224A.300. 26
(9) Moneys in the broadband deployment fund are hereby appropriated for the 27 UNOFFICIAL COPY 22 RS HB 315/EN
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purposes set forth in this section and KRS 224A.1121. 1
(10) Notwithstanding KRS 45.229, any moneys remaining in the broadband deployment 2
fund at the close of the fiscal year shall not lapse but shall be carried forward into 3
the succeeding fiscal year to be used for the purposes set forth in this section and 4
KRS 224A.1121. 5
(11) Interest earned on moneys in the broadband deployment fund shall stay in the fund. 6
Section 4. KRS 224A.1121 is amended to read as follows: 7
(1) (a) The purpose of the broadband deployment fund set forth in KRS 224A.112 8
shall be to: 9
1. Assist governmental agencies and private sector entities to construct 10
infrastructure for the deployment of broadband service to underserved or 11
unserved areas of the Commonwealth; and 12
2. Provide supplemental funding for recipients of federal government 13
awards specifically to support the deployment or expansion of 14
broadband networks. 15
(b) The office[authority] shall manage the fund and may accept and receive 16
appropriations from the General Assembly or other funds or gifts from both 17
public and private sources, including but not limited to local governments and 18
federal agencies. 19
(2) The office[authority] shall establish a grant program that allocates funds from the 20
broadband deployment fund in accordance with this section. 21
(3) (a) The office shall issue grant applications for all projects awarded grant 22
funds on or after April 5, 2022. 23
(b) Grant funds may be used by government or private sector entities for 24
broadband deployment projects.[ 25
(3) The grant program shall be developed to give highest funding priority to those 26
projects which most effectively provide broadband service to the greatest number of 27 UNOFFICIAL COPY 22 RS HB 315/EN
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underserved and unserved Kentucky citizens and at the lowest cost. Funding shall 1
not be used to duplicate broadband service to citizens, households, and businesses 2
in a broadband deployment project area where fixed, terrestrial broadband service 3
meets or exceeds twenty-five (25) megabits per second downstream and three (3) 4
megabits per second upstream.] 5
(4) The office[authority] shall develop funding criteria and prioritization schedules for 6
broadband deployment projects[ in a technology-neutral manner] in accordance 7
with this section. 8
(5) (a) The office[authority] shall establish guidelines and standards for applying for 9
and approving grants from the broadband deployment fund according to the 10
minimum requirements in this section. No additional requirement shall be 11
added which could delay broadband deployment. 12
(b) An eligible applicant shall submit an application to the office[authority]. 13
(c) An application for a grant shall contain any information the office[authority] 14
requires, including but not limited to: 15
1.[(a)] A shapefile[geographic description] of the broadband deployment 16
project area and a list of addresses in the broadband deployment 17
project area[, including whether the area is partially served]; 18
2.[(b)] A description of the broadband deployment project, including 19
facilities, equipment, total cost, timeframe for completion, and network 20
capabilities, including minimum speed thresholds; 21
3.[(c)] Documentation of the applicant's technical, financial, and 22
managerial resources and experience to build, operate, and manage 23
broadband networks serving citizens, households, and businesses in 24
Kentucky, including a detailed project management plan identifying 25
staff, contractors, and key responsibilities; 26
4.[(d)] Documentation of the economic and commercial feasibility of the 27 UNOFFICIAL COPY 22 RS HB 315/EN
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proposed broadband deployment project, including a detailed project 1
budget and documentation of availability of supplies; 2
5.[(e)] The number of addresses within the broadband deployment 3
project area[citizens, households, or businesses] that would have new 4
access to broadband as a result of the grant; 5
6.[(f)] The amount of matching funds the eligible applicant will 6
contribute and a certification that no portion of the matching funds is 7
derived from any state or federal grant received for the purpose of 8
funding broadband infrastructure within the project area; and 9
7.[(g)] A certification that none of the funds provided by the program for 10
the project in the application will be used to extend or deploy facilities 11
to any currently served addresses[citizens, households, or businesses]. 12
(6) The office[authority] shall make all information within each application[the 13
applications] available to the public within five (5) business days following[of] the 14
deadline for submission of applications, provided the information contained within 15
an application is not exempt from disclosure under the provisions of the Open 16
Records Act, KRS 61.870 to 61.884. The description of the geographic scope of the 17
broadband deployment project area shall not be exempt under the Open Records 18
Act, KRS 61.870 to 61.884, and shall be made available to the public within five (5) 19
days after submission of the application. 20
(7) (a) As part of the grant application process under[, pursuant to] subsection 21
(5)[(3)] of this section, the office[authority] shall include an opportunity for a 22
challenging broadband service provider to challenge an[the] application 23
within fifteen (15) business days of making all information available to the 24
public under subsection (6) of this section. 25
(b) A challenging provider shall provide the office with proof that:[ As part of 26
the dispute process, the authority may consider any relevant geospatial data 27 UNOFFICIAL COPY 22 RS HB 315/EN
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available from a broadband service provider or grant applicant. Geospatial 1
data may include but is not limited to shapefiles detailing broadband coverage, 2
the most current Federal Communications Commission Form 477 fixed 3
broadband deployment data reporting, or other documentation of broadband 4
deployment infrastructure in the project area to show that a challenged project 5
area is underserved or unserved. A challenging provider may provide the 6
authority with proof, including but not limited to:] 7
1.[(a)] The broadband deployment project area is: 8
a. Currently served; or[ is ] 9
b. Under construction for provision of broadband service within 10
twelve (12) months of the challenge; or 11
2.[(b)] The applicant has received funds from another state or federally 12
funded grant program designed to encourage broadband deployment in 13
the broadband deployment project area that covers more than fifty 14
percent (50%) of the eligible project expenses. 15
(c) As part of the challenge process and in order to meet the burden of proof in 16
paragraph (b) of this subsection, the challenging provider shall submit: 17
1. A shapefile and a list of addresses containing all addresses within the 18
broadband deployment project area that the challenging broadband 19
service provider currently serves and the maximum megabits per 20
second downstream speed and the maximum megabits per second 21
upstream speed provided to each challenged address; 22
2. A feasibility study, construction plan, or other relevant documentation 23
that clearly and convincingly demonstrates that the challenging 24
broadband service provider will be under construction within twelve 25
(12) months of the application date for the broadband deployment 26
fund grant, which may be extended by the office an additional six (6) 27 UNOFFICIAL COPY 22 RS HB 315/EN
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months because of undue construction delays; or 1
3. Loan documents, grant award receipts, or other financial information 2
that clearly and convincingly demonstrates to the office that the 3
challenging broadband service provider has received adequate funds 4
from another state or federally funded grant program designed to 5
encourage broadband deployment in the area. 6
(d) Within five (5) business days of a challenge being submitted to the office, 7
the provider submitting the application which is challenged shall be 8
provided copies of all challenge material. 9
(e) The office shall treat any information submitted as part of a challenge as 10
confidential and exempt from disclosure under the Open Records Act, KRS 11
61.870 to 61.884, upon the challenging provider's request for confidential 12
treatment. 13
(f) Within fifteen (15) business days of receipt of the copies under paragraph 14
(d) of this subsection, the applicant shall respond to the challenge. 15
(g) Once the response to the challenge is submitted to the office by the 16
applicant, the office shall have fifteen (15) business days to resolve the 17
dispute. 18
(h) Upon a determination that a challenge is unsuccessful because the 19
challenging provider is unable to prove, within the timeframe provided 20
under this section, that the provider currently serves a broadband 21
deployment project area, the office shall move forward with the funding 22
process provided in this section. 23
(8) (a) Upon a determination that an application meets the funding criteria, but the 24
proposed project area is found to be partially served, the applicant[authority] 25
may amend and resubmit the application within fifteen (15) business days 26
and the office may grant partial funding based on the partial service provided 27 UNOFFICIAL COPY 22 RS HB 315/EN
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in order to ensure that grant funds are used to only provide broadband service 1
to addresses[citizens, households, or businesses] deemed underserved or 2
unserved. 3
(b) In the event of a challenge that involves subsection (7)(c)2. of this section 4
and those addresses are not under construction within twelve (12) months, 5
or eighteen (18) months if extended by the office, the challenging provider 6
shall pay a civil penalty to the broadband deployment fund in an amount 7
equal to the amount of grant funding for those addresses plus ten percent 8
(10%). 9
(9) When awarding grant funds, the office shall award funding to addresses with no 10
service first, then to addresses that are unserved, and then lastly to addresses that 11
are underserved. The office shall: 12
(a) Score the unserved and underserved grant applications based on the 13
following criteria, giving priority consideration in the order listed: 14
1. Projects in unserved and underserved areas that reach the customers 15
that are the least economical to serve, in the following order; 16
a. Projects that average zero to five (5) locations per route mile; 17
b. Projects that average five (5) to ten (10) locations per route mile; 18
and 19
c. Projects that average eleven (11) locations or more per route 20
mile; 21
2. Projects in unserved and underserved areas where local, state, or 22
federal funds are not available; 23
3. Fiber-to-the-premise projects that will deploy broadband services with 24
a capacity to transmit data from or to the Internet with symmetrical 25
downstream and upstream speeds of at least one (1) gigabit; 26
4. Projects deploying infrastructure capable of achieving symmetrical 27 UNOFFICIAL COPY 22 RS HB 315/EN
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speeds at a minimum of one hundred (100) megabits per second 1
download and upload speeds; 2
5. The size and the scope of the unserved and underserved area proposed 3
to be served; 4
6. The technical, managerial, and financial capabilities of the applicant, 5
demonstrating the ability to successfully deploy the proposed project 6
and provide broadband service; 7
7. A project requesting less than fifty percent (50%) funding from the 8
requested grant; 9
8. Projects that will be eligible for the Affordable Connectivity Program 10
for low-income consumers administered by the Federal 11
Communications Commission; and 12
9. Projects that plan to encourage adoption of broadband services, 13
including community outreach to promote adoption, technical 14
support, and training on how to connect; 15
(b) Award no more than fifty percent (50%) of the total project cost, unless the 16
project meets the following density requirements: 17
1. Projects that average zero to five (5) locations per route mile, which 18
may be eligible for reimbursement of up to seventy percent (70%) of 19
the cost of the project; 20
2. Projects that average five (5) to ten (10) locations per route mile, 21
which may be eligible for reimbursement of up to sixty percent (60%) 22
of the cost of the project; and 23
3. Projects that average eleven (11) locations or more per route mile, 24
which may be eligible for reimbursement of fifty percent (50%) of the 25
cost of the project; 26
(c) Require the remaining project costs to be paid by matching funds from: 27 UNOFFICIAL COPY 22 RS HB 315/EN
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1. A private source, including but not limited to financial institutions 1
that serve distribution cooperatives; 2
2. A city, county, urban-county government, or consolidated local 3
government; or 4
3. Any combination of matching moneys provided under subparagraphs 5
1. and 2. of this paragraph; 6
(d) Allow eligible project expenses, including those that are incurred starting 7
on or after the date in the written acknowledgement of acceptance issued 8
under paragraph (f) of this subsection and ending at the conclusion of the 9
grant project, or grant project contractual term, whichever is earlier, and 10
may include: 11
1. Project engineering or design plans; 12
2. Permitting; 13
3. Pre-construction costs to make ready the project site; 14
4. Outside plant materials, including fiber; poles, hardware, conduit or 15
splitters; 16
5. Labor, construction management, and equipment; and 17
6. Installation and testing of the broadband services; 18
(e) Make a determination that an application meets the funding criteria, unless 19
the proposed project area is found to be partially served, in which case the 20
application may be amended and partial funding based on the partial 21
service provided may be granted; and 22
(f) 1. Issue within sixty (60) days of receipt of an application for grant 23
funds, except in the case of a challenged application under the 24
timeline in subsection (7) of this section, a written acknowledgement 25
of either: 26
a. Acceptance; 27 UNOFFICIAL COPY 22 RS HB 315/EN
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b. Denial and any reasons for denial of the application; or 1
c. A request for additional information to process the application 2
listing the specific information required; and 3
2. Issue grant funds to the applicant by the fifteenth day of the month, or 4
the next business day if the fifteenth day falls on a weekend day or 5
state or federal holiday, when a complete requisition of funds packet is 6
received prior to the fifth day of the month. 7
(10) The office shall not reimburse applicants for special construction charges, 8
including fees or charges imposed upon the end user as a condition of receiving 9
broadband service at an address. 10
(11) The office may provide an incentive for timely completion or a disincentive for 11
not meeting agreed upon timeframes. 12
(12) Grant funds awarded to an applicant to supplement the applicant's federal fund 13
award may not be used for costs that will be reimbursed by the other federal 14
funds. 15
(13) No funds shall be used: 16
(a) To support any broadband deployment project involving the upgrade of an 17
existing facility already delivering broadband services, including an 18
upgrade of existing wireline, or terrestrial infrastructure capable of 19
delivering services greater than twenty-five (25) megabits per second 20
downstream and three (3) megabits per second upstream; or 21
(b) For non-capital expenses, non-broadband services, marketing, or advertising. 22
[The broadband deployment project area shall be described by census block 23
including the specific addresses to be serviced or by shapefile geospatial data. 24
(10) Grant applicants shall pay a minimum of fifty percent (50%) of the project cost 25
which shall not include any matching funds received from federal or state 26
government grants for broadband deployment in the project area.] 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(14)[(11)] Moneys in this fund shall not be used by or transferred to the Kentucky 1
Communications Network Authority. 2
(15) (a)[(12)] To carry out the purposes of this section, the office may[authority shall] 3
promulgate administration regulations under[in accordance with] KRS 4
Chapter 13A.[ Within one hundred eighty (180) days of July 15, 2020, the 5
authority shall promulgate regulations to implement the provisions of this 6
section and KRS 224A.011, 224A.110, and 224A.112 and govern the 7
submission, review, and approval of applications and the administration of 8
broadband deployment projects.] 9
(b) The office[authority] shall not promulgate any regulations that place 10
obligations on the applicants that are more restrictive than applicable federal 11
or state law.[ Except as otherwise provided in this section, all of the 12
authority's records relating to the broadband deployment fund shall be deemed 13
confidential unless disclosure is required under the provisions of the Open 14
Records Act, KRS 61.870 to 61.884.] 15
(c) In the event that any state law or administrative regulation affecting the 16
broadband deployment fund conflicts with any federal law or regulation 17
related to federal broadband funding, the federal law or regulation shall 18
govern. The office may adopt state and local program requirements to 19
comply with all federal laws and regulation related to federal broadband 20
funding. 21
SECTION 5. A NEW SECTION OF KRS CHAPTER 224A IS CREATED TO 22
READ AS FOLLOWS: 23
(1) The General Assembly hereby finds and declares that: 24
(a) A rural infrastructure improvement fund, and a program to administer the 25
fund, is necessary to further the Commonwealth's goal to expand and 26
accelerate access to broadband service throughout the entire 27 UNOFFICIAL COPY 22 RS HB 315/EN
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Commonwealth; and 1
(b) Supporting the replacement of utility poles will provide benefits to Kentucky 2
residents by: 3
1. Facilitating the construction of broadband networks; 4
2. Minimizing the potential for disputes between broadband providers 5
and utility pole owners that could otherwise delay deployment; 6
3. Improving the resiliency and longevity of broadband infrastructure; 7
and 8
4. Addressing needs for broadband investment not yet fully met by 9
existing programs. 10
(2) As used in this section: 11
(a) "Application" means an application made under subsection (4) of this 12
section for eligible pole replacement costs; 13
(b) "Eligible pole replacement": 14
1. Means the removal of an existing utility pole and replacement with a 15
new utility pole in an unserved area in order to accommodate the 16
attachment of facilities to be used, in whole or in part, by a retail 17
provider to provide qualifying broadband service access to residences 18
or businesses within an unserved area; and 19
2. Does not include the removal and replacement of a utility pole in 20
order to accommodate facilities used only for the provision of 21
wholesale broadband or data transport service, where the owner of the 22
facilities, or its affiliate, does not use the facilities to provide 23
qualifying broadband services directly to residences or businesses; 24
(c) "Eligible pole replacement costs": 25
1. Means: 26
a. The actual and reasonable costs paid or incurred to perform an 27 UNOFFICIAL COPY 22 RS HB 315/EN
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eligible pole replacement; 1
b. The amounts of any expenditures to remove and dispose of the 2
existing utility pole, to purchase and install a replacement utility 3
pole, or to transfer any existing facilities to the new pole; and 4
c. The costs of reimbursing another party for the costs of 5
performing an eligible pole replacement, when paid or incurred 6
by the person responsible for the costs; and 7
2. Does not include: 8
a. Costs paid or incurred to perform an eligible pole replacement by 9
a party who is not responsible for those costs, and which are 10
charged or passed along to the responsible party; 11
b. Costs for which the party incurring or paying the costs 12
separately has received or is entitled to receive reimbursement 13
under the terms of a state or federal grant program for the 14
deployment of broadband facilities; and 15
c. The receipt of a state or federal grant where the pole 16
replacement costs, for which reimbursement is requested, exceed 17
the pole replacement costs that were reasonably anticipated at 18
the time of, or on which the amount of, the other support 19
funding was predicated. 20
Costs are considered separately reimbursed for purposes of this paragraph 21
if the amount of an award under another state or federal broadband 22
program included consideration, by the awarding entity, of the pole 23
replacement costs by the applicant; 24
(d) "Fund" means the rural infrastructure improvement fund established by 25
subsection (3) of this section; 26
(e) "Pole owner" means any person or entity that owns or controls a utility 27 UNOFFICIAL COPY 22 RS HB 315/EN
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pole; 1
(f) "Program" means the Kentucky Rural Infrastructure Improvement 2
Program established by subsection (4) of this section; 3
(g) "Qualifying broadband service" means a retail wireline broadband service 4
capable of delivering Internet access at speeds of at least one hundred (100) 5
megabits per second in both the downstream and upstream directions, and 6
with latency at a level sufficient to permit real-time, interactive applications; 7
and 8
(h) "Utility pole" means any pole used, in whole or in part, for any wire 9
communications or electric distribution, regardless of the owner or operator 10
of the pole. 11
(3) (a) There is created within the State Treasury a trust and agency account to be 12
known as the rural infrastructure improvement fund, consisting of moneys 13
appropriated by the General Assembly, federal funds, grants, and gifts. 14
(b) The fund shall be administered by the Office of Broadband Development 15
and all money deposited in the fund shall be used: 16
1. By the office to provide reimbursements to qualified applicants under 17
the Rural Infrastructure Improvement Program established under 18
subsection (4) of this section; 19
2. For the purposes of covering the costs of program administration and 20
operation; and 21
3. In a manner consistent with federal law. 22
(c) Notwithstanding KRS 45.229, any moneys remaining in the fund at the 23
close of the fiscal year shall not lapse but shall be carried forward into the 24
succeeding fiscal year to be used for the purposes set forth in this section. 25
(d) Interest earned on money deposited to the credit of the fund shall be 26
retained in the fund and shall not lapse. 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(e) Moneys deposited in the fund are hereby appropriated for the purposes in 1
this section. 2
(4) (a) There is hereby established the Kentucky Rural Infrastructure Improvement 3
Program for the purpose of expediting and facilitating the deployment of 4
broadband service to individuals, businesses, agricultural operations, and 5
community access points in unserved areas by reimbursing a portion of 6
eligible pole replacement costs incurred by eligible applicants. 7
(b) The office shall administer and provide staff assistance for the program and 8
shall be responsible for receiving, reviewing, and approving applications for 9
pole reimbursements. 10
(c) The office shall award pole reimbursements from moneys in the fund 11
created by subsection (3) of this section until all moneys in the fund are 12
exhausted. 13
(d) No later than September 1, 2022, the office shall: 14
1. Promulgate administrative regulations under KRS Chapter 13A 15
necessary for the administration of this section; 16
2. Publish an application for pole replacement reimbursements that shall 17
require: 18
a. Information sufficient to establish the number, cost, and 19
eligibility of eligible pole replacements that qualify for 20
reimbursement; 21
b. Documentation sufficient to establish that the claimed eligible 22
pole replacements have been completed, including receipts 23
verifying the amount of eligible pole replacement costs paid by 24
the applicant; 25
c. The amount of program reimbursement requested in the 26
application and any grant funding or accounting information 27 UNOFFICIAL COPY 22 RS HB 315/EN
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required to justify the amount of the request; 1
d. i. A statement that the costs for which reimbursement is 2
requested have not been reimbursed through any other 3
state or federal broadband grant program. 4
ii. If the applicant is a recipient of funding from another 5
program, the statement shall include an explanation of 6
how the costs for which reimbursement is requested exceed 7
the pole replacement costs on which the original award was 8
predicated or that were reasonably anticipated at the time 9
of the original award; 10
e. A notarized statement from an officer or agent of the applicant 11
that the contents of the application are true and accurate and 12
that the applicant accepts the requirements of this section and 13
any promulgated administrative regulations as a condition of 14
receiving an award of program reimbursement; and 15
f. Any other information necessary for the office to comply with 16
any conditions on federal funding used in connection with the 17
program; and 18
3. Publish and maintain on its Web site: 19
a. Statistics on the number of applications received, processed, and 20
rejected by the office under the pole replacement program; 21
b. Statistics on the size, number, and status of reimbursements 22
awarded by the office under the pole replacement program, 23
including the pole owners and broadband providers receiving 24
reimbursements; and 25
c. The amount of money remaining in the fund. 26
(e) An applicant who incurs or pays the costs of an eligible pole replacement to 27 UNOFFICIAL COPY 22 RS HB 315/EN
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accommodate broadband facilities consistent with this section may apply to 1
the office for reimbursement. 2
(f) As a condition of receiving reimbursement under this subsection, an 3
applicant shall: 4
1. Certify its compliance with the requirements of this section; 5
2. Agree to comply with any requirements that the office determines to be 6
necessary conditions on federal funding used in connection with the 7
program; 8
3. Agree to refund, with interest at the applicable federal funds rate as 9
specified by KRS 355.4A-506, to the fund, any reimbursements or 10
portions of reimbursements received from the fund under this 11
subsection, if the office finds, upon substantial evidence and after 12
notice and opportunity to respond, that the recipient materially 13
violated any of the requirements agreed to under this section; 14
4. Agree that no funds awarded by the program will be used to meet any 15
cash match requirement under any other broadband program 16
administered by the Commonwealth or one (1) of its subdivisions; 17
5. Agree to submit reports as the office may require regarding broadband 18
deployment facilitated by the program, which may include reports 19
demonstrating that an application that has received a federally funded 20
award is meeting or exceeding buildout requirements contained in 21
that award; and 22
6. Agree to not include in any rates or fees charged for its services any 23
eligible pole replacement costs that were reimbursed by the program, 24
paid for by a broadband provider, or funded by another grant source. 25
(g) 1. If the necessary information is not otherwise reasonably available to 26
the applicant, the applicant may request a pole owner performing an 27 UNOFFICIAL COPY 22 RS HB 315/EN
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eligible pole replacement to provide the number and costs of the pole 1
replacements, receipts verifying the amount of pole replacement costs 2
paid by the applicant, and confirmation that the pole replacement 3
costs were incurred to accommodate the applicant’s attachment and 4
not due to some other reason. 5
2. In the event the office requires additional information from an 6
applicant following the submission of an application to confirm the 7
eligibility of costs in an application that is in the possession of the pole 8
owner and not otherwise reasonably available to the applicant, the 9
applicant may also request that the pole owner assist with providing 10
the information as requested by the office. 11
3. A pole owner shall coordinate in good faith to provide the information 12
to the applicant, and may require reimbursement from the broadband 13
provider of its actual and reasonable administrative expenses in 14
connection with the coordination, which shall not exceed five percent 15
(5%) of the eligible pole replacement costs. 16
4. Administrative costs that a broadband provider reimburses to a pole 17
owner under this subsection are not eligible for reimbursement from 18
the fund as eligible pole replacement costs. 19
(h) Within sixty (60) days of receipt of a completed application establishing the 20
eligibility of costs for reimbursement, and to the extent that moneys are 21
available in the fund, the office shall award the lesser of: 22
1. Five thousand dollars ($5,000) for each pole replaced; or 23
2. Fifty percent (50%) of the total amount incurred or paid by the 24
applicant for eligible pole replacement costs. 25
(i) Any application pending at the exhaustion of the moneys in the fund shall 26
be deemed denied but may be refiled if sufficient moneys are later made 27 UNOFFICIAL COPY 22 RS HB 315/EN
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available in the fund. 1
(j) No later than one (1) year after the fund receives moneys for the purpose of 2
providing pole replacement reimbursements to qualified applicants, the 3
authority shall, on an annual basis, cause to be conducted an independent 4
audit of the office's administration of the fund for compliance with the 5
requirements of this section. This audit may be performed by either the 6
Auditor of Public Accounts or a certified public accountant in conjunction 7
with the annual audit of the authority. The authority shall comply with the 8
provisions of KRS 45.149 before entering into a contract for audit services 9
with a certified public accountant. 10
(5) A broadband provider's use of funds reimbursed under this subsection to pay 11
eligible pole replacement costs shall have no effect on the subsequent ownership 12
of any replacement pole purchases and installed by a pole owner using the funds. 13
Section 6. KRS 278.5461 is amended to read as follows: 14
In addition to the definitions in KRS 278.010 and KRS 278.516(2), for KRS 278.546 to 15
278.5462, [the following definitions shall apply: 16
(1) "Broadband" means any service that is used to deliver video or to provide access to 17
the Internet and that consists of the offering of the capability to transmit information 18
at a rate that is generally not less than two hundred (200) kilobits per second in at 19
least one direction; or any service that combines computer processing, information 20
storage, and protocol conversion to enable users to access Internet content and 21
services. Nothing in this definition shall be construed to include any intrastate 22
service, other than digital subscriber line service, tariffed at the commission as of 23
July 15, 2004. 24
(2) ]"local exchange carrier" means any company certified by the commission to 25
provide local exchange telecommunications service in the Commonwealth on or 26
before June 30, 1995. 27 UNOFFICIAL COPY 22 RS HB 315/EN
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Section 7. KRS 278.5464 is amended to read as follows: 1
(1) The General Assembly recognizes and declares: 2
(a) The provision of broadband service to residential, commercial, and industrial 3
customers is critical to securing a sound economy and promoting the general 4
welfare of the Commonwealth; and 5
(b) Distribution cooperatives are able to access and leverage federal funding to 6
extend and enhance the availability of broadband service to Kentucky 7
residents who are currently unserved or underserved. 8
(2) As used in this section: 9
(a)[ "Broadband" means any wireline, fixed wireless, or fixed terrestrial 10
technology having a capacity to transmit data from or to the Internet with a 11
minimum speed of twenty-five (25) megabits per second downstream and 12
three (3) megabits per second upstream as defined by the Federal 13
Communications Commission or the United States Department of Agriculture 14
and any amendments to those definitions. If the agencies use different speed 15
definitions, the faster speed definition shall apply; 16
(b)] "Underserved area" has the same meaning as in Section 2 of this Act[means 17
any project area where broadband service with a minimum twenty-five (25) 18
megabits per second downstream and three (3) megabits per second upstream 19
is not available]; and 20
(b)[(c)] "Unserved area" has the same meaning as in Section 2 of this 21
Act[means any project area where broadband service with a minimum ten (10) 22
megabits per second downstream and one (1) megabit per second upstream is 23
not available]. 24
(3) Notwithstanding any other statute to the contrary, [: 25
(a) ]a distribution cooperative may facilitate the operation of an affiliate engaged 26
exclusively in the provision of broadband service to unserved or underserved 27 UNOFFICIAL COPY 22 RS HB 315/EN
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households and businesses by: 1
(a)[1.] Constructing and leasing excess capacity on any fiber optic cable for 2
broadband service which shall not require a certificate of public 3
convenience and necessity under KRS 278.020; however, the construction 4
of fiber optic cable used to support the distribution cooperative's electric 5
distribution system shall require a certificate of public convenience and 6
necessity under KRS 278.020; 7
(b)[2.] Issuing securities or evidences of indebtedness in an amount not to 8
exceed twenty-five percent (25%) of the net book value of its assets, the 9
proceeds of which shall be used for the exclusive purpose of capitalizing the 10
affiliate; or 11
(c)[3.] Pledging up to twenty-five percent (25%) of the net book value of its 12
assets as collateral for a loan entered into by the affiliate for the purpose of 13
providing broadband services[; and 14
(b) The commission shall grant approval of the leasing of excess capacity, the 15
issuing of securities or evidences of indebtedness, or the pledging of assets 16
upon a finding the proposal is in the public interest. 17
(4) The commission shall take into consideration the policy of encouraging the 18
provision of broadband service to unserved or underserved households and 19
businesses throughout the Commonwealth when determining whether: 20
(a) The proposed investment will result in wasteful duplication of investment in 21
the case of any distribution cooperative's application for a certificate of public 22
convenience and necessity under KRS 278.020 that includes the construction 23
of a fiber optic cable system with capacity in excess of that which is necessary 24
to support the distribution cooperative's system under subsection (3)(a)1. of 25
this section; and 26
(b) The issuance or assumption of securities or evidence of indebtedness satisfies 27 UNOFFICIAL COPY 22 RS HB 315/EN
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the criteria of KRS 278.300(3) in the case of any distribution cooperative's 1
application for approval of an issuance of securities or evidence of 2
indebtedness or pledge of assets under subsection (3)(a)2. and 3. of this 3
section]. 4
(4)[(5)] A distribution cooperative shall comply with the cost allocation requirements 5
of: 6
(a) KRS 278.2201, 278.2203, 278.2205, 278.2207, 278.2209, and 278.2211; and 7
(b) Only KRS 278.2213(1) and (3) with regard to any costs associated with its 8
facilitation of an affiliate's provision of broadband services. 9
(5)[(6)] [Prior to December 31, 2021, ]The commission shall promulgate 10
administrative regulations regarding pole attachments under the commission's 11
jurisdiction, including those necessary for the provision of broadband service. 12
(6) Before broadband services may be offered under this section, a distribution 13
cooperative shall, by resolution of the board of directors and spread upon its 14
minutes, have an economic feasibility study conducted. The feasibility study shall 15
be provided to the commission and made available to distribution cooperative 16
members upon request. 17
(7) A distribution cooperative shall not allow the installation or operation of a 18
broadband system on its electric delivery system by an affiliate or other 19
broadband operator to diminish the reliability of the electric delivery system. 20
(8) A distribution cooperative shall not require any person to purchase broadband 21
services from an affiliate or other broadband operator as a condition of receiving 22
or continuing to receive electric energy from the distribution cooperative. 23
(9) A distribution cooperative shall not disconnect or threaten to disconnect its 24
electric service to any customer due to the customer's failure to pay for 25
broadband services provided to the customer by an affiliate or other broadband 26
operator. 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(10) Every distribution cooperative shall conduct an annual audit of compliance with 1
this section, which shall be provided to the commission and made available to 2
distribution cooperative members upon request. 3
(11) The commission shall have no jurisdiction over the creation or operation of an 4
distribution cooperative's broadband affiliate, except as referred to in subsection 5
(4) of this section. 6
Section 8. KRS 139.010 is amended to read as follows: 7
As used in this chapter, unless the context otherwise provides: 8
(1) (a) "Admissions" means the fees paid for: 9
1. The right of entrance to a display, program, sporting event, music 10
concert, performance, play, show, movie, exhibit, fair, or other 11
entertainment or amusement event or venue; and 12
2. The privilege of using facilities or participating in an event or activity, 13
including but not limited to: 14
a. Bowling centers; 15
b. Skating rinks; 16
c. Health spas; 17
d. Swimming pools; 18
e. Tennis courts; 19
f. Weight training facilities; 20
g. Fitness and recreational sports centers; and 21
h. Golf courses, both public and private; 22
regardless of whether the fee paid is per use or in any other form, 23
including but not limited to an initiation fee, monthly fee, membership 24
fee, or combination thereof. 25
(b) "Admissions" does not include: 26
1. Any fee paid to enter or participate in a fishing tournament; or 27 UNOFFICIAL COPY 22 RS HB 315/EN
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2. Any fee paid for the use of a boat ramp for the purpose of allowing boats 1
to be launched into or hauled out from the water; 2
(2) "Advertising and promotional direct mail" means direct mail the primary purpose of 3
which is to attract public attention to a product, person, business, or organization, or 4
to attempt to sell, popularize, or secure financial support for a product, person, 5
business, or organization. As used in this definition, "product" means tangible 6
personal property, an item transferred electronically, or a service; 7
(3) "Business" includes any activity engaged in by any person or caused to be engaged 8
in by that person with the object of gain, benefit, or advantage, either direct or 9
indirect; 10
(4) "Commonwealth" means the Commonwealth of Kentucky; 11
(5) "Department" means the Department of Revenue; 12
(6) (a) "Digital audio-visual works" means a series of related images which, when 13
shown in succession, impart an impression of motion, with accompanying 14
sounds, if any. 15
(b) "Digital audio-visual works" includes movies, motion pictures, musical 16
videos, news and entertainment programs, and live events. 17
(c) "Digital audio-visual works" shall not include video greeting cards, video 18
games, and electronic games; 19
(7) (a) "Digital audio works" means works that result from the fixation of a series of 20
musical, spoken, or other sounds. 21
(b) "Digital audio works" includes ringtones, recorded or live songs, music, 22
readings of books or other written materials, speeches, or other sound 23
recordings. 24
(c) "Digital audio works" shall not include audio greeting cards sent by electronic 25
mail; 26
(8) (a) "Digital books" means works that are generally recognized in the ordinary and 27 UNOFFICIAL COPY 22 RS HB 315/EN
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usual sense as books, including any literary work expressed in words, 1
numbers, or other verbal or numerical symbols or indicia if the literary work is 2
generally recognized in the ordinary or usual sense as a book. 3
(b) "Digital books" shall not include digital audio-visual works, digital audio 4
works, periodicals, magazines, newspapers, or other news or information 5
products, chat rooms, or Web logs; 6
(9) (a) "Digital code" means a code which provides a purchaser with a right to obtain 7
one (1) or more types of digital property. A "digital code" may be obtained by 8
any means, including electronic mail messaging or by tangible means, 9
regardless of the code's designation as a song code, video code, or book code. 10
(b) "Digital code" shall not include a code that represents: 11
1. A stored monetary value that is deducted from a total as it is used by the 12
purchaser; or 13
2. A redeemable card, gift card, or gift certificate that entitles the holder to 14
select specific types of digital property; 15
(10) (a) "Digital property" means any of the following which is transferred 16
electronically: 17
1. Digital audio works; 18
2. Digital books; 19
3. Finished artwork; 20
4. Digital photographs; 21
5. Periodicals; 22
6. Newspapers; 23
7. Magazines; 24
8. Video greeting cards; 25
9. Audio greeting cards; 26
10. Video games; 27 UNOFFICIAL COPY 22 RS HB 315/EN
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11. Electronic games; or 1
12. Any digital code related to this property. 2
(b) "Digital property" shall not include digital audio-visual works or satellite 3
radio programming; 4
(11) (a) "Direct mail" means printed material delivered or distributed by United States 5
mail or other delivery service to a mass audience or to addressees on a mailing 6
list provided by the purchaser or at the direction of the purchaser when the 7
cost of the items are not billed directly to the recipient. 8
(b) "Direct mail" includes tangible personal property supplied directly or 9
indirectly by the purchaser to the direct mail retailer for inclusion in the 10
package containing the printed material. 11
(c) "Direct mail" does not include multiple items of printed material delivered to 12
a single address; 13
(12) "Directly used in the manufacturing or industrial processing process" means the 14
process that commences with the movement of raw materials from storage into a 15
continuous, unbroken, integrated process and ends when the finished product is 16
packaged and ready for sale; 17
(13) (a) "Extended warranty services" means services provided through a service 18
contract agreement between the contract provider and the purchaser where the 19
purchaser agrees to pay compensation for the contract and the provider agrees 20
to repair, replace, support, or maintain tangible personal property or digital 21
property according to the terms of the contract if: 22
1. The service contract agreement is sold or purchased on or after July 1, 23
2018; and 24
2. The tangible personal property or digital property for which the service 25
contract agreement is provided is subject to tax under this chapter or 26
under KRS 138.460. 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(b) "Extended warranty services" does not include the sale of a service contract 1
agreement for tangible personal property to be used by a small telephone 2
utility as defined in KRS 278.516 or a Tier III CMRS provider as defined in 3
KRS 65.7621 to deliver communications services as defined in KRS 136.602 4
or broadband[ as defined in KRS 278.5461]; 5
(14) (a) "Finished artwork" means final art that is used for actual reproduction by 6
photomechanical or other processes or for display purposes. 7
(b) "Finished artwork" includes: 8
1. Assemblies; 9
2. Charts; 10
3. Designs; 11
4. Drawings; 12
5. Graphs; 13
6. Illustrative materials; 14
7. Lettering; 15
8. Mechanicals; 16
9. Paintings; and 17
10. Paste-ups; 18
(15) (a) "Gross receipts" and "sales price" mean the total amount or consideration, 19
including cash, credit, property, and services, for which tangible personal 20
property, digital property, or services are sold, leased, or rented, valued in 21
money, whether received in money or otherwise, without any deduction for 22
any of the following: 23
1. The retailer's cost of the tangible personal property, digital property, or 24
services sold; 25
2. The cost of the materials used, labor or service cost, interest, losses, all 26
costs of transportation to the retailer, all taxes imposed on the retailer, or 27 UNOFFICIAL COPY 22 RS HB 315/EN
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any other expense of the retailer; 1
3. Charges by the retailer for any services necessary to complete the sale; 2
4. Delivery charges, which are defined as charges by the retailer for the 3
preparation and delivery to a location designated by the purchaser 4
including transportation, shipping, postage, handling, crating, and 5
packing; 6
5. Any amount for which credit is given to the purchaser by the retailer, 7
other than credit for tangible personal property or digital property traded 8
when the tangible personal property or digital property traded is of like 9
kind and character to the property purchased and the property traded is 10
held by the retailer for resale; and 11
6. The amount charged for labor or services rendered in installing or 12
applying the tangible personal property, digital property, or service sold. 13
(b) "Gross receipts" and "sales price" shall include consideration received by the 14
retailer from a third party if: 15
1. The retailer actually receives consideration from a third party and the 16
consideration is directly related to a price reduction or discount on the 17
sale to the purchaser; 18
2. The retailer has an obligation to pass the price reduction or discount 19
through to the purchaser; 20
3. The amount of consideration attributable to the sale is fixed and 21
determinable by the retailer at the time of the sale of the item to the 22
purchaser; and 23
4. One (1) of the following criteria is met: 24
a. The purchaser presents a coupon, certificate, or other 25
documentation to the retailer to claim a price reduction or discount 26
where the coupon, certificate, or documentation is authorized, 27 UNOFFICIAL COPY 22 RS HB 315/EN
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distributed, or granted by a third party with the understanding that 1
the third party will reimburse any seller to whom the coupon, 2
certificate, or documentation is presented; 3
b. The price reduction or discount is identified as a third-party price 4
reduction or discount on the invoice received by the purchaser or 5
on a coupon, certificate, or other documentation presented by the 6
purchaser; or 7
c. The purchaser identifies himself or herself to the retailer as a 8
member of a group or organization entitled to a price reduction or 9
discount. A "preferred customer" card that is available to any 10
patron does not constitute membership in such a group. 11
(c) "Gross receipts" and "sales price" shall not include: 12
1. Discounts, including cash, term, or coupons that are not reimbursed by a 13
third party and that are allowed by a retailer and taken by a purchaser on 14
a sale; 15
2. Interest, financing, and carrying charges from credit extended on the sale 16
of tangible personal property, digital property, or services, if the amount 17
is separately stated on the invoice, bill of sale, or similar document given 18
to the purchaser; 19
3. Any taxes legally imposed directly on the purchaser that are separately 20
stated on the invoice, bill of sale, or similar document given to the 21
purchaser; or 22
4. Local alcohol regulatory license fees authorized under KRS 243.075 that 23
are separately stated on the invoice, bill of sale, or similar document 24
given to the purchaser. 25
(d) As used in this subsection, "third party" means a person other than the 26
purchaser; 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(16) "In this state" or "in the state" means within the exterior limits of the 1
Commonwealth and includes all territory within these limits owned by or ceded to 2
the United States of America; 3
(17) "Industrial processing" includes: 4
(a) Refining; 5
(b) Extraction of minerals, ores, coal, clay, stone, petroleum, or natural gas; 6
(c) Mining, quarrying, fabricating, and industrial assembling; 7
(d) The processing and packaging of raw materials, in-process materials, and 8
finished products; and 9
(e) The processing and packaging of farm and dairy products for sale; 10
(18) (a) "Lease or rental" means any transfer of possession or control of tangible 11
personal property for a fixed or indeterminate term for consideration. A lease 12
or rental shall include future options to: 13
1. Purchase the property; or 14
2. Extend the terms of the agreement and agreements covering trailers 15
where the amount of consideration may be increased or decreased by 16
reference to the amount realized upon sale or disposition of the property 17
as defined in 26 U.S.C. sec. 7701(h)(1). 18
(b) "Lease or rental" shall not include: 19
1. A transfer of possession or control of property under a security 20
agreement or deferred payment plan that requires the transfer of title 21
upon completion of the required payments; 22
2. A transfer of possession or control of property under an agreement that 23
requires the transfer of title upon completion of the required payments 24
and payment of an option price that does not exceed the greater of one 25
hundred dollars ($100) or one percent (1%) of the total required 26
payments; or 27 UNOFFICIAL COPY 22 RS HB 315/EN
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3. Providing tangible personal property and an operator for the tangible 1
personal property for a fixed or indeterminate period of time. To qualify 2
for this exclusion, the operator must be necessary for the equipment to 3
perform as designed, and the operator must do more than maintain, 4
inspect, or setup the tangible personal property. 5
(c) This definition shall apply regardless of the classification of a transaction 6
under generally accepted accounting principles, the Internal Revenue Code, or 7
other provisions of federal, state, or local law; 8
(19) (a) "Machinery for new and expanded industry" means machinery: 9
1. Directly used in the manufacturing or industrial processing process of: 10
a. Tangible personal property at a plant facility; 11
b. Distilled spirits or wine at a plant facility or on the premises of a 12
distiller, rectifier, winery, or small farm winery licensed under 13
KRS 243.030 that includes a retail establishment on the premises; 14
or 15
c. Malt beverages at a plant facility or on the premises of a brewer or 16
microbrewery licensed under KRS 243.040 that includes a retail 17
establishment; 18
2. Which is incorporated for the first time into: 19
a. A plant facility established in this state; or 20
b. Licensed premises located in this state; and 21
3. Which does not replace machinery in the plant facility or licensed 22
premises unless that machinery purchased to replace existing machinery: 23
a. Increases the consumption of recycled materials at the plant 24
facility by not less than ten percent (10%); 25
b. Performs different functions; 26
c. Is used to manufacture a different product; or 27 UNOFFICIAL COPY 22 RS HB 315/EN
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d. Has a greater productive capacity, as measured in units of 1
production, than the machinery being replaced. 2
(b) "Machinery for new and expanded industry" does not include repair, 3
replacement, or spare parts of any kind, regardless of whether the purchase of 4
repair, replacement, or spare parts is required by the manufacturer or seller as 5
a condition of sale or as a condition of warranty; 6
(20) "Manufacturing" means any process through which material having little or no 7
commercial value for its intended use before processing has appreciable commercial 8
value for its intended use after processing by the machinery; 9
(21) "Marketplace" means any physical or electronic means through which one (1) or 10
more retailers may advertise and sell tangible personal property, digital property, or 11
services, or lease tangible personal property or digital property, such as a catalog, 12
Internet Web site, or television or radio broadcast, regardless of whether the 13
tangible personal property, digital property, or retailer is physically present in this 14
state; 15
(22) (a) "Marketplace provider" means a person, including any affiliate of the person, 16
that facilitates a retail sale by satisfying subparagraphs 1. and 2. of this 17
paragraph as follows: 18
1. The person directly or indirectly: 19
a. Lists, makes available, or advertises tangible personal property, 20
digital property, or services for sale by a marketplace retailer in a 21
marketplace owned, operated, or controlled by the person; 22
b. Facilitates the sale of a marketplace retailer's product through a 23
marketplace by transmitting or otherwise communicating an offer 24
or acceptance of a retail sale of tangible personal property, digital 25
property, or services between a marketplace retailer and a 26
purchaser in a forum including a shop, store, booth, catalog, 27 UNOFFICIAL COPY 22 RS HB 315/EN
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Internet site, or similar forum; 1
c. Owns, rents, licenses, makes available, or operates any electronic 2
or physical infrastructure or any property, process, method, 3
copyright, trademark, or patent that connects marketplace retailers 4
to purchasers for the purpose of making retail sales of tangible 5
personal property, digital property, or services; 6
d. Provides a marketplace for making retail sales of tangible personal 7
property, digital property, or services, or otherwise facilitates retail 8
sales of tangible personal property, digital property, or services, 9
regardless of ownership or control of the tangible personal 10
property, digital property, or services, that are the subject of the 11
retail sale; 12
e. Provides software development or research and development 13
activities related to any activity described in this subparagraph, if 14
the software development or research and development activities 15
are directly related to the physical or electronic marketplace 16
provided by a marketplace provider; 17
f. Provides or offers fulfillment or storage services for a marketplace 18
retailer; 19
g. Sets prices for a marketplace retailer's sale of tangible personal 20
property, digital property, or services; 21
h. Provides or offers customer service to a marketplace retailer or a 22
marketplace retailer's customers, or accepts or assists with taking 23
orders, returns, or exchanges of tangible personal property, digital 24
property, or services sold by a marketplace retailer; or 25
i. Brands or otherwise identifies sales as those of the marketplace 26
provider; and 27 UNOFFICIAL COPY 22 RS HB 315/EN
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2. The person directly or indirectly: 1
a. Collects the sales price or purchase price of a retail sale of tangible 2
personal property, digital property, or services; 3
b. Provides payment processing services for a retail sale of tangible 4
personal property, digital property, or services; 5
c. Through terms and conditions, agreements, or arrangements with a 6
third party, collects payment in connection with a retail sale of 7
tangible personal property, digital property, or services from a 8
purchaser and transmits that payment to the marketplace retailer, 9
regardless of whether the person collecting and transmitting the 10
payment receives compensation or other consideration in exchange 11
for the service; or 12
d. Provides a virtual currency that purchasers are allowed or required 13
to use to purchase tangible personal property, digital property, or 14
services. 15
(b) "Marketplace provider" includes but is not limited to a person that satisfies the 16
requirements of this subsection through the ownership, operation, or control 17
of a digital distribution service, digital distribution platform, online portal, or 18
application store; 19
(23) "Marketplace retailer" means a seller that makes retail sales through any 20
marketplace owned, operated, or controlled by a marketplace provider; 21
(24) (a) "Occasional sale" includes: 22
1. A sale of tangible personal property or digital property not held or used 23
by a seller in the course of an activity for which he or she is required to 24
hold a seller's permit, provided such sale is not one (1) of a series of 25
sales sufficient in number, scope, and character to constitute an activity 26
requiring the holding of a seller's permit. In the case of the sale of the 27 UNOFFICIAL COPY 22 RS HB 315/EN
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entire, or a substantial portion of the nonretail assets of the seller, the 1
number of previous sales of similar assets shall be disregarded in 2
determining whether or not the current sale or sales shall qualify as an 3
occasional sale; or 4
2. Any transfer of all or substantially all the tangible personal property or 5
digital property held or used by a person in the course of such an activity 6
when after such transfer the real or ultimate ownership of such property 7
is substantially similar to that which existed before such transfer. 8
(b) For the purposes of this subsection, stockholders, bondholders, partners, or 9
other persons holding an interest in a corporation or other entity are regarded 10
as having the "real or ultimate ownership" of the tangible personal property or 11
digital property of such corporation or other entity; 12
(25) (a) "Other direct mail" means any direct mail that is not advertising and 13
promotional direct mail, regardless of whether advertising and promotional 14
direct mail is included in the same mailing. 15
(b) "Other direct mail" includes but is not limited to: 16
1. Transactional direct mail that contains personal information specific to 17
the addressee, including but not limited to invoices, bills, statements of 18
account, and payroll advices; 19
2. Any legally required mailings, including but not limited to privacy 20
notices, tax reports, and stockholder reports; and 21
3. Other nonpromotional direct mail delivered to existing or former 22
shareholders, customers, employees, or agents, including but not limited 23
to newsletters and informational pieces. 24
(c) "Other direct mail" does not include the development of billing information or 25
the provision of any data processing service that is more than incidental to the 26
production of printed material; 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(26) "Person" includes any individual, firm, copartnership, joint venture, association, 1
social club, fraternal organization, corporation, estate, trust, business trust, receiver, 2
trustee, syndicate, cooperative, assignee, governmental unit or agency, or any other 3
group or combination acting as a unit; 4
(27) "Permanent," as the term applies to digital property, means perpetual or for an 5
indefinite or unspecified length of time; 6
(28) "Plant facility" means a single location that is exclusively dedicated to 7
manufacturing or industrial processing activities. A location shall be deemed to be 8
exclusively dedicated to manufacturing or industrial processing activities even if 9
retail sales are made there, provided that the retail sales are incidental to the 10
manufacturing or industrial processing activities occurring at the location. The term 11
"plant facility" shall not include any restaurant, grocery store, shopping center, or 12
other retail establishment; 13
(29) (a) "Prewritten computer software" means: 14
1. Computer software, including prewritten upgrades, that are not designed 15
and developed by the author or other creator to the specifications of a 16
specific purchaser; 17
2. Software designed and developed by the author or other creator to the 18
specifications of a specific purchaser when it is sold to a person other 19
than the original purchaser; or 20
3. Any portion of prewritten computer software that is modified or 21
enhanced in any manner, where the modification or enhancement is 22
designed and developed to the specifications of a specific purchaser, 23
unless there is a reasonable, separately stated charge on an invoice or 24
other statement of the price to the purchaser for the modification or 25
enhancement. 26
(b) When a person modifies or enhances computer software of which the person 27 UNOFFICIAL COPY 22 RS HB 315/EN
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is not the author or creator, the person shall be deemed to be the author or 1
creator only of the modifications or enhancements the person actually made. 2
(c) The combining of two (2) or more prewritten computer software programs or 3
portions thereof does not cause the combination to be other than prewritten 4
computer software; 5
(30) (a) "Purchase" means any transfer of title or possession, exchange, barter, lease, 6
or rental, conditional or otherwise, in any manner or by any means 7
whatsoever, of: 8
1. Tangible personal property; 9
2. An extended warranty service; 10
3. Digital property transferred electronically; or 11
4. Services included in KRS 139.200; 12
for a consideration. 13
(b) "Purchase" includes: 14
1. When performed outside this state or when the customer gives a resale 15
certificate, the producing, fabricating, processing, printing, or imprinting 16
of tangible personal property for a consideration for consumers who 17
furnish either directly or indirectly the materials used in the producing, 18
fabricating, processing, printing, or imprinting; 19
2. A transaction whereby the possession of tangible personal property or 20
digital property is transferred but the seller retains the title as security for 21
the payment of the price; and 22
3. A transfer for a consideration of the title or possession of tangible 23
personal property or digital property which has been produced, 24
fabricated, or printed to the special order of the customer, or of any 25
publication; 26
(31) "Recycled materials" means materials which have been recovered or diverted from 27 UNOFFICIAL COPY 22 RS HB 315/EN
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the solid waste stream and reused or returned to use in the form of raw materials or 1
products; 2
(32) "Recycling purposes" means those activities undertaken in which materials that 3
would otherwise become solid waste are collected, separated, or processed in order 4
to be reused or returned to use in the form of raw materials or products; 5
(33) "Remote retailer" means a retailer with no physical presence in this state; 6
(34) (a) "Repair, replacement, or spare parts" means any tangible personal property 7
used to maintain, restore, mend, or repair machinery or equipment. 8
(b) "Repair, replacement, or spare parts" does not include machine oils, grease, or 9
industrial tools; 10
(35) (a) "Retailer" means: 11
1. Every person engaged in the business of making retail sales of tangible 12
personal property, digital property, or furnishing any services in a retail 13
sale included in KRS 139.200; 14
2. Every person engaged in the business of making sales at auction of 15
tangible personal property or digital property owned by the person or 16
others for storage, use or other consumption, except as provided in 17
paragraph (c) of this subsection; 18
3. Every person making more than two (2) retail sales of tangible personal 19
property, digital property, or services included in KRS 139.200 during 20
any twelve (12) month period, including sales made in the capacity of 21
assignee for the benefit of creditors, or receiver or trustee in bankruptcy; 22
4. Any person conducting a race meeting under the provision of KRS 23
Chapter 230, with respect to horses which are claimed during the 24
meeting. 25
(b) When the department determines that it is necessary for the efficient 26
administration of this chapter to regard any salesmen, representatives, 27 UNOFFICIAL COPY 22 RS HB 315/EN
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peddlers, or canvassers as the agents of the dealers, distributors, supervisors or 1
employers under whom they operate or from whom they obtain the tangible 2
personal property, digital property, or services sold by them, irrespective of 3
whether they are making sales on their own behalf or on behalf of the dealers, 4
distributors, supervisors or employers, the department may so regard them and 5
may regard the dealers, distributors, supervisors or employers as retailers for 6
purposes of this chapter. 7
(c) 1. Any person making sales at a charitable auction for a qualifying entity 8
shall not be a retailer for purposes of the sales made at the charitable 9
auction if: 10
a. The qualifying entity, not the person making sales at the auction, is 11
sponsoring the auction; 12
b. The purchaser of tangible personal property at the auction directly 13
pays the qualifying entity sponsoring the auction for the property 14
and not the person making the sales at the auction; and 15
c. The qualifying entity, not the person making sales at the auction, is 16
responsible for the collection, control, and disbursement of the 17
auction proceeds. 18
2. If the conditions set forth in subparagraph 1. of this paragraph are met, 19
the qualifying entity sponsoring the auction shall be the retailer for 20
purposes of the sales made at the charitable auction. 21
3. For purposes of this paragraph, "qualifying entity" means a resident: 22
a. Church; 23
b. School; 24
c. Civic club; or 25
d. Any other nonprofit charitable, religious, or educational 26
organization; 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(36) "Retail sale" means any sale, lease, or rental for any purpose other than resale, 1
sublease, or subrent; 2
(37) (a) "Ringtones" means digitized sound files that are downloaded onto a device 3
and that may be used to alert the customer with respect to a communication. 4
(b) "Ringtones" shall not include ringback tones or other digital files that are not 5
stored on the purchaser's communications device; 6
(38) (a) "Sale" means: 7
1. The furnishing of any services included in KRS 139.200; 8
2. Any transfer of title or possession, exchange, barter, lease, or rental, 9
conditional or otherwise, in any manner or by any means whatsoever, of: 10
a. Tangible personal property; or 11
b. Digital property transferred electronically; 12
for a consideration. 13
(b) "Sale" includes but is not limited to: 14
1. The producing, fabricating, processing, printing, or imprinting of 15
tangible personal property or digital property for a consideration for 16
purchasers who furnish, either directly or indirectly, the materials used 17
in the producing, fabricating, processing, printing, or imprinting; 18
2. A transaction whereby the possession of tangible personal property or 19
digital property is transferred, but the seller retains the title as security 20
for the payment of the price; and 21
3. A transfer for a consideration of the title or possession of tangible 22
personal property or digital property which has been produced, 23
fabricated, or printed to the special order of the purchaser. 24
(c) This definition shall apply regardless of the classification of a transaction 25
under generally accepted accounting principles, the Internal Revenue Code, or 26
other provisions of federal, state, or local law; 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(39) "Seller" includes every person engaged in the business of selling tangible personal 1
property, digital property, or services of a kind, the gross receipts from the retail 2
sale of which are required to be included in the measure of the sales tax, and every 3
person engaged in making sales for resale; 4
(40) (a) "Storage" includes any keeping or retention in this state for any purpose 5
except sale in the regular course of business or subsequent use solely outside 6
this state of tangible personal property or digital property purchased from a 7
retailer. 8
(b) "Storage" does not include the keeping, retaining, or exercising any right or 9
power over tangible personal property for the purpose of subsequently 10
transporting it outside the state for use thereafter solely outside the state, or for 11
the purpose of being processed, fabricated, or manufactured into, attached to, 12
or incorporated into, other tangible personal property to be transported outside 13
the state and thereafter used solely outside the state; 14
(41) "Tangible personal property" means personal property which may be seen, weighed, 15
measured, felt, or touched, or which is in any other manner perceptible to the senses 16
and includes natural, artificial, and mixed gas, electricity, water, steam, and 17
prewritten computer software; 18
(42) "Taxpayer" means any person liable for tax under this chapter; 19
(43) "Transferred electronically" means accessed or obtained by the purchaser by means 20
other than tangible storage media; and 21
(44) (a) "Use" includes the exercise of: 22
1. Any right or power over tangible personal property or digital property 23
incident to the ownership of that property, or by any transaction in which 24
possession is given, or by any transaction involving digital property 25
where the right of access is granted; or 26
2. Any right or power to benefit from extended warranty services. 27 UNOFFICIAL COPY 22 RS HB 315/EN
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(b) "Use" does not include the keeping, retaining, or exercising any right or power 1
over tangible personal property or digital property for the purpose of: 2
1. Selling tangible personal property or digital property in the regular 3
course of business; or 4
2. Subsequently transporting tangible personal property outside the state 5
for use thereafter solely outside the state, or for the purpose of being 6
processed, fabricated, or manufactured into, attached to, or incorporated 7
into, other tangible personal property to be transported outside the state 8
and thereafter used solely outside the state. 9
Section 9. There is hereby appropriated Federal Fund moneys from the State 10
Fiscal Recovery Fund of the American Rescue Plan Act in the amount of $20,000,000 in 11
fiscal year 2022-2023 to the Rural Infrastructure Improvement Fund established in 12
Section 5 of this Act. 13
Section 10. 2021 Ky. Acts ch. 171, sec. 3, as amended by 2021 Ky. Acts ch. 14
196, sec. 4, is amended to read as follows: 15
(1) There is hereby appropriated Federal Funds from the Coronavirus Capital 16
Projects Fund of the American Rescue Plan Act of 2021[federal funds] in the amount of 17
$182,769,000 and Federal Funds from the State Fiscal Recovery Fund of the 18
American Rescue Plan Act of 2021 in the amount of $67,231,000[$250,000,000] in 19
fiscal year 2021-2022 to the broadband deployment fund, with no more than $50,000,000 20
of which to be awarded before May[ April] 1, 2022. 21
(2) [(a) ]In addition to the appropriation in subsection (1) of this section, there is 22
hereby appropriated Federal Funds from the State Fiscal Recovery Fund of the American 23
Rescue Plan Act in the amount of $50,000,000 in fiscal year 2020-2021. Notwithstanding 24
KRS 45.229, the Federal Fund appropriation in fiscal year 2020-2021 shall not lapse and 25
shall carry forward for use in fiscal year 2021-2022 and fiscal year 2022-2023.[ 26
(b) The appropriation in paragraph (a) of this subsection shall be used for projects 27 UNOFFICIAL COPY 22 RS HB 315/EN
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that provide broadband service in furtherance of securing economic development 1
opportunities for commercial and industrial customers, excluding the broadband service 2
provider itself.] 3
(3) The agency administering the broadband deployment fund shall promulgate 4
administrative regulations to ensure that[: 5
(a) Related to the appropriation in subsection (1) of this section,] the moneys are 6
awarded based on the[ following] criteria in subsection (9) of Section 4 of this Act[the 7
order as listed: 8
1. Projects in underserved areas or unserved areas where local, state, or federal 9
funds are not currently designated; 10
2. Projects within underserved areas or unserved areas where local, state, or 11
federal broadband funds are inadequate; and 12
3. Projects that reach the customers that are the least economical to serve; 13
(b) Related to the appropriations in subsections (1) and (2) of this section, a 14
request for proposal shall be issued for projects; 15
(c) Notwithstanding KRS 224A.1121(5)(f) and (10), and related to the 16
appropriations in subsections (1) and (2) of this section, projects will require: 17
1. A private match of moneys of not less than 50 percent of the total project cost; 18
or 19
2. Matching funds from a city, county, urban county government, or consolidated 20
local government of not less than 50 percent of the total project cost; and 21
(d) Related to the appropriations in subsections (1) and (2) of this section, project 22
scope should be for the smallest feasible geographical area.] 23
(4) The agency may provide incentive for timely completion and disincentive for 24
not meeting agreed upon timeframes. 25
(5) (a) The agency administering the broadband deployment fund shall 26
promulgate administrative regulations to develop a process for: 27 UNOFFICIAL COPY 22 RS HB 315/EN
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1. Receiving complaints related to insufficient broadband service; 1
2. Incorporating forms for the collection of data related to the complaints; 2
3. Reporting the information collected; and 3
4. Referring complaints to the Office of Attorney General, Federal 4
Communications Commission, or Federal Trade Commission, as appropriate. 5
(b) The agency shall report to the Legislative Research Commission on a 6
quarterly basis, beginning October 1, 2021, and the first day of each calendar quarter 7
thereafter, the following information: 8
1. The location, by county, for each consumer complaint received related to 9
insufficient broadband service; 10
2. A brief description of the complaint; 11
3. The broadband provider related to the complaint received; 12
4. The response of the broadband provider regarding the complaint received; 13
5. Whether the complaint was resolved to the satisfaction of the consumer; and 14
6. Whether a referral was made to the Office of Attorney General, Federal 15
Communications Commission, or Federal Trade Commission. 16
Section 11. The following is repealed: 2021 Ky. Acts ch. 194, secs. 16 and 17. 17
Section 12. Whereas Internet access is critical for families across the 18
Commonwealth to stay informed and connected, an emergency is declared to exist, and 19
this Act takes effect upon its passage and approval by the Governor or upon its otherwise 20
becoming a law. 21