CHAPTER 202
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CHAPTER 202
( HB 315 )
AN ACT relating to broadband deployment, making an appropriation therefor, and declaring an emergency.
Be it enacted by the General Assembly of the Commonwealth of Kentucky:
SECTION 1. A NEW SECTION OF KRS CHAPTER 224A IS CREATED TO READ AS FOLLOWS:
(1) There is established the Office of Broadband Development, which shall:
(a) Be administratively attached to the Kentucky Infrastructure Authority;
(b) Encourage, foster, develop, and improve broadband within the Commonwealth to:
1. Drive job creation, promote innovation, and expand markets for Kentucky businesses; and
2. Serve the ongoing and growing needs of Kentucky's:
a. Agricultural, educational, health care, and public safety systems;
b. Industries and businesses;
c. Governmental operations; and
d. Citizens;
(c) Improve broadband accessibility for unserved and underserved communities and populations;
(d) Develop, coordinate, administer, and implement the Commonwealth's broadband deployment fund
under Section 3 of this Act;
(e) Perform all administrative functions necessary to carry out the purposes of this section;
(f) On behalf of the Commonwealth, serve as:
1. The central broadband planning and coordination entity;
2. The single point of contact and liaison to federal agencies and programs regarding broadband
issues, including but not limited to:
a. National Telecommunications and Information Administration;
b. Federal Communications Commission;
c. United States Department of Agriculture Rural Utilities Service; and
d. United States Treasury;
3. An information clearinghouse for federal programs providing financial assistance to
institutions located in rural areas seeking to obtain access to broadband;
(g) Coordinate with other state, regional, local, and private entities to:
1. Develop and implement a statewide broadband plan, including relevant goals and objectives;
2. Develop and encourage cost-effective broadband;
3. Make recommendations for broadband infrastructure development, particularly in rural,
unserved, and underserved areas; and
4. Provide consultation services to local units of government or other project sponsors in
connection with the planning, acquisition, improvement, construction, or development of any
broadband deployment project;
(h) Monitor the broadband development efforts of other states and nations;
(i) Maintain data and statistics on broadband throughout the Commonwealth by:
1. Collecting broadband availability data from Kentucky broadband providers and other sources
on a street address or location-specific basis; ACTS OF THE GENERAL ASSEMBLY 2
2. Verifying the accuracy of that data through on-the-ground testing;
3. Creating and maintaining a statewide interactive map displaying broadband availability,
which shall be available for public and state government use online;
4. Analyzing the deployment data collected to inform and guide future investments in broadband
infrastructure, including moneys expended under the broadband deployment fund;
5. Empirically validating, on a targeted basis, the accuracy of broadband data that is routinely
collected by the Federal Communications Commission to pinpoint areas of overstatement and
understatement that may exist;
6. Challenging the validity of the data as may be warranted, on behalf of the Commonwealth, to
ensure that this state is receiving its due share of funding from federal broadband programs;
and
7. Monitoring the progress of federal awards for deploying broadband infrastructure to
Kentucky locations and issuing an annual report to the Governor and the Interim Joint
Committee on Appropriations and Revenue by November 1 of each year;
(j) Develop a process for:
1. Receiving complaints related to insufficient broadband service;
2. Incorporating forms for the collection of data related to the complaints;
3. Resolving complaints;
4. Reporting the information collected on unresolved complaints; and
5. Referring complaints to the Office of the Attorney General, Federal Communications
Commission, or Federal Trade Commission, as appropriate; and
(k) Perform other duties and responsibilities as necessary to promote the development of broadband
within the Commonwealth.
(2) The office shall have all the power, not explicitly prohibited by statute, necessary and convenient to carry
out and effectuate the purposes of this section, including:
(a) Entering into contracts or agreements necessary or incidental to the performance of its duties,
functions, and responsibilities;
(b) Soliciting, borrowing, accepting, receiving, and expending funds from any public or private source,
property, labor, or other things of value to be used to carry out the office's operations, functions, and
responsibilities; and
(c) Promulgating administrative regulations under KRS Chapter 13A.
(3) (a) The authority may contract with a private nonprofit corporation with at least five (5) years of
broadband and telecommunications public policy research and mapping experience to fulfill the
purposes, duties, and responsibilities of the office as required in subsections (1) and (2) of this
section.
(b) If the authority exercises its option to contract with an entity to fulfill the office's obligations under
this section, the procurement shall not abrogate the authority from fulfilling the office's duties or
achieving the timelines for issuing grants in Section 4 of this Act.
(4) The authority shall report the activities of the office to the Legislative Research Commission on a
semiannual basis, each January 1 and each July 1.
Section 2. KRS 224A.011 is amended to read as follows:
As used in this chapter, unless the context requires otherwise:
(1) "Administrative fee" means a fee assessed and collected by the authority from borrowers and applicants under
assistance agreements, to be used for operational expenses of the authority;
(2) "Applicable interest rate" means the rate of interest which shall be used as part of the repayment criteria for an
assistance agreement between a governmental agency and the authority, and shall be determined by the
authority pertinent to the source of funds from which the assistance agreement is funded; CHAPTER 202
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(3) "Applicant" means a governmental agency or private sector entity that has submitted an application to the
office[authority] for a grant from the broadband deployment fund;
(4) "Application" means an application submitted by an applicant for a grant from the broadband deployment
fund;
(5) "Assistance agreement" means the agreement to be made and entered into by and between a governmental
agency or a private entity and the authority, as authorized by this chapter, providing for a lease, loan, services,
or grant to a governmental agency or a private entity or for the purchase of obligations issued by the
governmental agency, and for the repayment thereof to the authority by the governmental agency or a private
entity;
(6) "Authority" means the Kentucky Infrastructure Authority, which is created by this chapter;
(7) "Authority revenues" means the totality of all:
(a) Service charges;
(b) Utility tax receipts, to the extent not otherwise committed and budgeted by the authority during any
fiscal period of the authority;
(c) Any gifts, grants, or loans received, to the extent not otherwise required to be applied;
(d) Any and all appropriations made to the authority by the General Assembly of the Commonwealth of
Kentucky, to the extent not otherwise required to be applied;
(e) All moneys received in repayment of and for interest on any loans made by the authority to a
governmental agency, except as provided in KRS 224A.111, 224A.1115, and 224A.112, or as principal
of and interest on any obligations issued by a governmental agency and purchased by the authority, or
as receipts under any assistance agreement;
(f) The proceeds of bonds or long-term debt obligations of governmental agencies pledged to the payment
of bond anticipation notes issued by the authority on behalf of the said governmental agency to provide
interim construction financing; and
(g) Payments under agreements with any agencies of the state and federal government;
(8) "Borrower or borrowing entity" means any agency of the state or its political subdivisions, any city, or any
special district created under the laws of the state acting individually or jointly under interagency or interlocal
cooperative agreements to enter into assistance agreements with the authority;
(9)[ "Broadband" means any wireline or fixed terrestrial technology having a capacity to transmit data from or to
the Internet with a minimum speed of twenty-five (25) megabits per second downstream and three (3)
megabits per second upstream as defined by the Federal Communications Commission or the United States
Department of Agriculture and any amendments to those definitions. If the agencies use different speed
definitions, the faster speed definition shall apply to KRS 224A.110, 224A.112, and 224A.1121;
(10)] "Broadband deployment fund" means a fund to assist with the construction, development, or improvement of
broadband infrastructure, broadband services, or technologies that constitute a part of, or are related to,
broadband infrastructure or broadband services, to provide for broadband service in underserved or unserved
areas of the Commonwealth;
(10)[(11)] "Broadband deployment project" means a proposed deployment of broadband service infrastructure set
forth in an application for grant funding under KRS 224A.112;
(11)[(12)] "Broadband deployment project area" means a geographic area determined by census block,[ or]
shapefile geospatial data, or list of addresses[ for] which has been proposed for grant funding[ has been
authorized] under this section and KRS 224A.110, 224A.112, and 224A.1121;
(12)[(13)] "Census block" means the smallest geographic unit used by the United States Census Bureau that is
reported on the Federal Communications Commission (FCC) Form 477 relating to fixed broadband
deployment data;
(13)[(14)] "Community flood damage abatement project" means any structural or nonstructural study, plan,
design, construction, development, improvement, or other activity to provide for flood control;
(14)[(15)] "Construction" means and includes but is not limited to: ACTS OF THE GENERAL ASSEMBLY 4
(a) Preliminary planning to determine the economic and engineering feasibility of infrastructure projects,
the engineering, architectural, legal, fiscal, and economic investigations, and studies necessary thereto,
and surveys, designs, plans, working drawings, specifications, procedures, and other actions necessary
to the construction of infrastructure or solid waste projects;
(b) The erection, building, acquisition, alteration, remodeling, improvement, or extension of infrastructure
or solid waste projects; and
(c) The inspection and supervision of the construction of infrastructure or solid waste projects and all costs
incidental to the acquisition and financing of same. This term shall also relate to and mean any other
physical devices or appurtenances in connection with, or reasonably attendant to, infrastructure or solid
waste projects;
(15)[(16)] "Dams" means any artificial barrier, including appurtenant works, which does or can impound or divert
water, and which either:
(a) Is or will be twenty-five (25) feet or more in height from the natural bed of the stream or watercourse at
the downstream toe of the barrier, as determined by the Energy and Environment Cabinet; or
(b) Has or will have an impounding capacity at maximum water storage elevation of fifty (50) acre feet or
more;
(16)[(17)] "Distribution facilities" means all or any part of any facilities, devices, and systems used and useful in
obtaining, pumping, storing, treating, and distributing water for agricultural, industrial, commercial,
recreational, public, and domestic use;
(17)[(18)] "Energy and Environment Cabinet" means the Kentucky Energy and Environment Cabinet, or its
successor, said term being meant to relate specifically to the state agency which is designated as the water
pollution agency for the Commonwealth of Kentucky, for purposes of the federal act;
(18)[(19)] "Federal act" means the Federal Clean Water Act (33 U.S.C. secs. 1251 et seq.) as said federal act may
be amended from time to time in the future, or any other enactment of the United States Congress providing
funds that may assist in carrying out the purposes of the authority;
(19)[(20)] "Federally assisted wastewater revolving fund" means that fund which will receive federal and state
funds or the proceeds from the sale of revenue bonds of the authority for the purpose of providing loans to
finance construction of publicly owned treatment works as defined in Section 212 of the federal act and for the
implementation of a management program established under Section 319 of the federal act and for the
development and implementation of a conservation and management plan under Section 320 of the federal act;
(20)[(21)] "Governmental agency" means any incorporated city or municipal corporation, or other agency, or unit
of government within or a department or a cabinet of the Commonwealth of Kentucky, now having or
hereafter granted, the authority and power to finance, acquire, construct, or operate infrastructure or solid
waste projects. This definition shall specifically apply but not by way of limitation to incorporated cities;
counties, including any counties containing a metropolitan sewer district; sanitation districts; water districts;
water associations if these associations are permitted to issue interest-bearing obligations which interest would
be excludable from gross income under Section 103 of the Internal Revenue Code of 1986 as amended; sewer
construction districts; metropolitan sewer districts; sanitation taxing districts; a regional wastewater
commission established under KRS 65.8901 to 65.8923; and any other agencies, commissions, districts, or
authorities (either acting alone, or in combination with one another in accordance with any regional or area
compact, or intergovernmental cooperative agreements), now or hereafter established in accordance with the
laws of the Commonwealth of Kentucky having and possessing the described powers described in this
subsection;
(21)[(22)] "Industrial waste" means any liquid, gaseous, or solid waste substances resulting from any process of
industry, manufacture, trade, or business, or from the mining or taking, development, processing, or recovery
of any natural resources, including heat and radioactivity, together with any sewage as is present therein,
which pollutes the waters of the state, and specifically, but not by way of limitation, means heat or thermal
differentials created in the waters of the state by any industrial processing, generating, or manufacturing
processes;
(22)[(23)] "Infrastructure project" means any construction or acquisition of treatment works, facilities related to
the collection, transportation, and treatment of wastewater as defined in KRS 65.8903, distribution facilities, or
water resources projects instituted by a governmental agency or an investor-owned water utility which is
approved by the authority and, if required, by the Energy and Environment Cabinet, Public Service CHAPTER 202
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Commission, or other agency; solid waste projects; dams; storm water control and treatment systems; gas or
electric utility; broadband deployment project; or any other public utility or public service project which the
authority finds would assist in carrying out the purposes set out in KRS 224A.300;
(23)[(24)] "Infrastructure revolving fund" means that fund which will receive state funds, the proceeds from the
sale of revenue bonds of the authority or other moneys earmarked for that fund for the purpose of providing
loans or grants to finance construction or acquisition of infrastructure projects as defined in this section;
(24)[(25)] "Loan or grant" means moneys to be made available to governmental agencies by the authority for the
purpose of defraying all or any part of the total costs incidental to construction or acquisition of any
infrastructure project;
(25)[(26)] "Market interest rate" means the interest rate determined by the authority under existing market
conditions at the time the authority shall provide financial assistance to a governmental agency;
(26)[(27)] "Obligation of a governmental agency" means a revenue bond, bond anticipation note, revenue
anticipation note, lease, or other obligation issued by a governmental agency under KRS 58.010 et seq. or
other applicable statutes;
(27)[(28)] "Office" means the Office of Broadband Development;
(28) "Person" means any individual, firm, partnership, association, corporation, or governmental agency;
(29) "Pollution" means the placing of any noxious or deleterious substances ("pollutants"), including sewage and
industrial wastes, in any waters of the state or affecting the properties of any waters of the state in a manner
which renders the waters harmful or inimical to the public health or to animal or aquatic life, or to the use,
present or future, of these waters for domestic water supply, industrial or agricultural purposes, or recreational
purposes;
(30) "Prioritization schedules" means the list of wastewater treatment works, distribution facilities and water
resources projects which the Energy and Environment Cabinet has evaluated and determined to be of priority
for receiving financial assistance from the federally assisted wastewater revolving fund and the federally
assisted drinking water revolving fund, or the list of infrastructure projects which the authority has evaluated
and determined to be of priority for receiving financial aid from the infrastructure revolving fund. The
evaluation by the authority of infrastructure projects for water systems shall be undertaken with input from the
appropriate area development district;
(31) "Recovered material" means those materials which have known current use, reuse, or recycling potential,
which can be feasibly used, reused, or recycled, and which have been diverted or removed from the solid
waste stream for sale, use, reuse, or recycling, whether or not requiring subsequent separation and processing
but does not include materials diverted or removed for purposes of energy recovery or combustion except
refuse-derived fuel (RDF), which shall be credited as a recovered material in an amount equal to that
percentage of the municipal solid waste received on a daily basis at the processing facility and processed into
RDF; but not to exceed fifteen percent (15%) of the total amount of the municipal solid waste received at the
processing facility on a daily basis;
(32) "Recovered material processing facility" means a facility engaged solely in the storage, processing, and resale
or reuse of recovered material but does not mean a solid waste facility if solid waste generated by a recovered
material processing facility is managed in accordance with KRS Chapter 224 and administrative regulations
adopted by the cabinet;
(33) "Revenue bonds" means special obligation bonds issued by the authority as provided by the provisions of this
chapter, which are not direct or general obligations of the state, and which are payable only from a pledge of,
and lien upon, authority revenues as provided in the resolution authorizing the issuance of the bonds, and shall
include revenue bond anticipation notes;
(34) "Service charge" means any monthly, quarterly, semiannual, or annual charge to be imposed by a
governmental agency, or by the authority, for any infrastructure project financed by the authority, which
service charge arises by reason of the existence of, and requirements of, any assistance agreement;
(35) "Sewage" means any of the waste products or excrements, or other discharges from the bodies of human
beings or animals, which pollute the waters of the state;
(36) "Shapefile" means a file format for storing, depicting, and analyzing geospatial data showing broadband
coverage; ACTS OF THE GENERAL ASSEMBLY 6
(37) "Solid waste" means "solid waste" as defined by KRS 224.1-010(30)(a);
(38) "Solid waste facility" means any facility for collection, handling, storage, transportation, transfer, processing,
treatment, or disposal of solid waste, whether the facility is associated with facilities generating the waste or
otherwise, but does not include a container located on property where the waste is generated and which is used
solely for the purpose of collection and temporary storage of that solid waste prior to off-site disposal, or a
recovered material processing facility;
(39) "Solid waste project" means construction, renovation, or acquisition of a solid waste facility which shall be
instituted and owned by a governmental agency;
(40) "Solid waste revolving fund" means that fund which shall receive state funds, the proceeds from the sale of
revenue bonds of the authority, or other moneys earmarked for the purpose of providing loans or grants to
finance solid waste projects defined in this section;
(41) "State" means the Commonwealth of Kentucky;
(42) "System" means the system owned and operated by a governmental agency with respect to solid waste
projects, treatment works, or infrastructure projects financed as provided by the assistance agreement between
the governmental agency and the authority;
(43) "Treatment works" or "wastewater treatment works" means all or any part of any facilities, devices, and
systems used and useful in the storage, treatment, recycling, and reclamation of wastewater or the abatement
of pollution, including facilities for the treatment, neutralization, disposal of, stabilization, collecting,
segregating, or holding of wastewater, including without limiting the generality of the foregoing, intercepting
sewers, outfall sewers, pumping power stations, and other equipment and their appurtenances; extensions,
improvements, remodeling, additions, and alterations thereof, and any wastewater treatment works, including
site acquisition of the land that will be an integral part of the wastewater treatment process, or is used for
ultimate disposal of residues resulting from wastewater treatment, together with any other facilities which are
deemed to be treatment works in accordance with the federal act;
(44) "Underserved area" means any project area where[ fixed, terrestrial] broadband service with a minimum one
hundred (100)[twenty-five (25)] megabits per second downstream and twenty (20)[three (3)] megabits per
second upstream is not available;
(45) "Unserved area" means any project area where[ fixed, terrestrial] broadband service with a minimum twenty-
five (25)[ten (10)] megabits per second downstream and three (3) megabits[one (1) megabit] per second
upstream is not available;
(46) "Utility tax" means the tax which may be imposed by the authority on every purchase of water or sewer
service in the Commonwealth of Kentucky;
(47) "Variable rate revenue bonds" means revenue bonds the rate of interest on which fluctuates either
automatically by reference to a predetermined formula or index or in accordance with the standards set forth in
KRS 224A.120;
(48) "Wastewater" means any water or liquid substance containing sewage, industrial waste, or other pollutants or
contaminants derived from the prior use of these waters;
(49) "Water resources" means all waters of the state occurring on the surface, in natural or artificial channels, lakes,
reservoirs, or impoundments, and in subsurface aquifers, which are available, or which may be made available
to agricultural, industrial, commercial, recreational, public, and domestic users;
(50) "Water resources project" means any structural or nonstructural study, plan, design, construction,
development, improvement, or any other activity including programs for management, intended to conserve
and develop the water resources of the state and shall include all aspects of water supply, facilities to collect,
transport, and treat wastewater as defined in KRS 65.8903, flood damage abatement, navigation, water-related
recreation, and land conservation facilities and measures; and
(51) "Waters of the state" means all streams, lakes, watercourses, waterways, ponds, marshes, wells, springs,
irrigation systems, drainage systems, and all other bodies or accumulations of water, surface and underground,
natural or artificial, which are situated wholly or partly within, or border upon, this state, or are within its
jurisdiction, except those private waters which do not combine or effect a junction with natural, surface, or
underground waters.
Section 3. KRS 224A.112 is amended to read as follows: CHAPTER 202
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(1) The infrastructure revolving fund shall be established in the State Treasury and shall be administered by the
authority. The fund shall be a dedicated fund, and all moneys in the fund shall be allocated and dedicated
solely to providing financial assistance to governmental agencies, and investor-owned water systems as
provided for in KRS 96.540, 224A.306, 224A.308, and 224A.310, for the construction or acquisition of
infrastructure projects through an account designated as the 2020 water service account.
(2) The broadband deployment fund shall be established in the State Treasury and shall be administered by the
office[authority]. The fund shall be a dedicated fund, and all moneys in the fund shall be allocated and
dedicated solely to providing grant funds to governmental agencies and private sector entities to construct
infrastructure for the deployment of broadband service to households and businesses in underserved or
unserved areas of the Commonwealth through an account designated as the broadband deployment fund.
(3) Funds in subsections (1) and (2) of this section shall not be commingled and shall be used only for the stated
purposes in subsections (1) and (2) of this section.
(4) The financial assistance which may be provided by the revolving fund shall be limited to:
(a) Making loans, on the condition that the loans are made at or below market interest rates, including
interest free loans, at terms not to exceed thirty (30) years and that the fund will be credited with all
payments of principal and interest on all loans;
(b) Purchasing or guaranteeing, or purchasing insurance for, local or state obligations when the action
would improve credit market access or reduce interest rates;
(c) Providing a source of revenue or security for the payment of principal and interest on bonds or notes
issued by the authority or other agencies of the state if the proceeds of the sale of the bonds will be
deposited in the fund;
(d) Providing moneys with which to carry out the requirements of assistance agreements; and
(e) Making grants as funds specifically appropriated for grants or proceeds from the sale of the authority's
revenue bonds are available.
(5) The revolving fund shall be established, maintained, and credited with repayments and the fund balance shall
be available in perpetuity for its stated purposes.
(6) The authority may provide financial assistance from the revolving fund to supplement assistance provided
from the federally assisted wastewater revolving fund as created in KRS 224A.111.
(7) The authority shall advise governmental agencies of the availability of the infrastructure revolving fund and
how moneys may be obtained from the fund.
(8) The authority may enter into any necessary or required agreement with federal or state agencies or persons to
carry out the provisions of this section. All state agencies shall cooperate with the authority and share
information with the authority as appropriate to accomplish the purposes set out in KRS 224A.300.
(9) Moneys in the broadband deployment fund are hereby appropriated for the purposes set forth in this section
and KRS 224A.1121.
(10) Notwithstanding KRS 45.229, any moneys remaining in the broadband deployment fund at the close of the
fiscal year shall not lapse but shall be carried forward into the succeeding fiscal year to be used for the
purposes set forth in this section and KRS 224A.1121.
(11) Interest earned on moneys in the broadband deployment fund shall stay in the fund.
Section 4. KRS 224A.1121 is amended to read as follows:
(1) (a) The purpose of the broadband deployment fund set forth in KRS 224A.112 shall be to:
1. Assist governmental agencies and private sector entities to construct infrastructure for the
deployment of broadband service to underserved or unserved areas of the Commonwealth; and
2. Provide supplemental funding for recipients of federal government awards specifically to
support the deployment or expansion of broadband networks.
(b) The office[authority] shall manage the fund and may accept and receive appropriations from the
General Assembly or other funds or gifts from both public and private sources, including but not limited
to local governments and federal agencies. ACTS OF THE GENERAL ASSEMBLY 8
(2) The office[authority] shall establish a grant program that allocates funds from the broadband deployment fund
in accordance with this section.
(3) (a) The office shall issue grant applications for all projects awarded grant funds on or after April 5,
2022.
(b) Grant funds may be used by government or private sector entities for broadband deployment projects.[
(3) The grant program shall be developed to give highest funding priority to those projects which most effectively
provide broadband service to the greatest number of underserved and unserved Kentucky citizens and at the
lowest cost. Funding shall not be used to duplicate broadband service to citizens, households, and businesses
in a broadband deployment project area where fixed, terrestrial broadband service meets or exceeds twenty-
five (25) megabits per second downstream and three (3) megabits per second upstream.]
(4) The office[authority] shall develop funding criteria and prioritization schedules for broadband deployment
projects[ in a technology-neutral manner] in accordance with this section.
(5) (a) The office[authority] shall establish guidelines and standards for applying for and approving grants
from the broadband deployment fund according to the minimum requirements in this section. No
additional requirement shall be added which could delay broadband deployment.
(b) An eligible applicant shall submit an application to the office[authority].
(c) An application for a grant shall contain any information the office[authority] requires, including but not
limited to:
1.[(a)] A shapefile[geographic description] of the broadband deployment project area and a list of
addresses in the broadband deployment project area[, including whether the area is partially
served];
2.[(b)] A description of the broadband deployment project, including facilities, equipment, total cost,
timeframe for completion, and network capabilities, including minimum speed thresholds;
3.[(c)] Documentation of the applicant's technical, financial, and managerial resources and experience to
build, operate, and manage broadband networks serving citizens, households, and businesses in
Kentucky, including a detailed project management plan identifying staff, contractors, and key
responsibilities;
4.[(d)] Documentation of the economic and commercial feasibility of the proposed broadband
deployment project, including a detailed project budget and documentation of availability of
supplies;
5.[(e)] The number of addresses within the broadband deployment project area[citizens, households,
or businesses] that would have new access to broadband as a result of the grant;
6.[(f)] The amount of matching funds the eligible applicant will contribute and a certification that no
portion of the matching funds is derived from any state or federal grant received for the purpose
of funding broadband infrastructure within the project area; and
7.[(g)] A certification that none of the funds provided by the program for the project in the application
will be used to extend or deploy facilities to any currently served addresses[citizens, households,
or businesses].
(6) The office[authority] shall make all information within each application[the applications] available to the
public within five (5) business days following[of] the deadline for submission of applications, provided the
information contained within an application is not exempt from disclosure under the provisions of the Open
Records Act, KRS 61.870 to 61.884. The description of the geographic scope of the broadband deployment
project area shall not be exempt under the Open Records Act, KRS 61.870 to 61.884, and shall be made
available to the public within five (5) days after submission of the application.
(7) (a) As part of the grant application process under[, pursuant to] subsection (5)[(3)] of this section, the
office[authority] shall include an opportunity for a challenging broadband service provider to challenge
an[the] application within fifteen (15) business days of making all information available to the public
under subsection (6) of this section.
(b) A challenging provider shall provide the office with proof that:[ As part of the dispute process, the
authority may consider any relevant geospatial data available from a broadband service provider or CHAPTER 202
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grant applicant. Geospatial data may include but is not limited to shapefiles detailing broadband
coverage, the most current Federal Communications Commission Form 477 fixed broadband
deployment data reporting, or other documentation of broadband deployment infrastructure in the
project area to show that a challenged project area is underserved or unserved. A challenging provider
may provide the authority with proof, including but not limited to:]
1.[(a)] The broadband deployment project area is:
a. Currently served; or[ is ]
b. Under construction for provision of broadband service within twelve (12) months of the
challenge; or
2.[(b)] The applicant has received funds from another state or federally funded grant program designed
to encourage broadband deployment in the broadband deployment project area that covers more
than fifty percent (50%) of the eligible project expenses.
(c) As part of the challenge process and in order to meet the burden of proof in paragraph (b) of this
subsection, the challenging provider shall submit:
1. A shapefile and a list of addresses containing all addresses within the broadband deployment
project area that the challenging broadband service provider currently serves and the
maximum megabits per second downstream speed and the maximum megabits per second
upstream speed provided to each challenged address;
2. A feasibility study, construction plan, or other relevant documentation that clearly and
convincingly demonstrates that the challenging broadband service provider will be under
construction within twelve (12) months of the application date for the broadband deployment
fund grant, which may be extended by the office an additional six (6) months because of
undue construction delays; or
3. Loan documents, grant award receipts, or other financial information that clearly and
convincingly demonstrates to the office that the challenging broadband service provider has
received adequate funds from another state or federally funded grant program designed to
encourage broadband deployment in the area.
(d) Within five (5) business days of a challenge being submitted to the office, the provider submitting the
application which is challenged shall be provided copies of all challenge material.
(e) The office shall treat any information submitted as part of a challenge as confidential and exempt
from disclosure under the Open Records Act, KRS 61.870 to 61.884, upon the challenging provider's
request for confidential treatment.
(f) Within fifteen (15) business days of receipt of the copies under paragraph (d) of this subsection, the
applicant shall respond to the challenge.
(g) Once the response to the challenge is submitted to the office by the applicant, the office shall have
fifteen (15) business days to resolve the dispute.
(h) Upon a determination that a challenge is unsuccessful because the challenging provider is unable to
prove, within the timeframe provided under this section, that the provider currently serves a
broadband deployment project area, the office shall move forward with the funding process provided
in this section.
(8) (a) Upon a determination that an application meets the funding criteria, but the proposed project area is
found to be partially served, the applicant[authority] may amend and resubmit the application within
fifteen (15) business days and the office may grant partial funding based on the partial service provided
in order to ensure that grant funds are used to only provide broadband service to addresses[citizens,
households, or businesses] deemed underserved or unserved.
(b) In the event of a challenge that involves subsection (7)(c)2. of this section and those addresses are
not under construction within twelve (12) months, or eighteen (18) months if extended by the office,
the challenging provider shall pay a civil penalty to the broadband deployment fund in an amount
equal to the amount of grant funding for those addresses plus ten percent (10%). ACTS OF THE GENERAL ASSEMBLY 10
(9) When awarding grant funds, the office shall award funding to addresses with no service first, then to
addresses that are unserved, and then lastly to addresses that are underserved. The office shall:
(a) Score the unserved and underserved grant applications based on the following criteria, giving
priority consideration in the order listed:
1. Projects in unserved and underserved areas that reach the customers that are the least
economical to serve, in the following order;
a. Projects that average zero to five (5) locations per route mile;
b. Projects that average five (5) to ten (10) locations per route mile; and
c. Projects that average eleven (11) locations or more per route mile;
2. Projects in unserved and underserved areas where local, state, or federal funds are not
available;
3. Fiber-to-the-premise projects that will deploy broadband services with a capacity to transmit
data from or to the Internet with symmetrical downstream and upstream speeds of at least one
(1) gigabit;
4. Projects deploying infrastructure capable of achieving symmetrical speeds at a minimum of
one hundred (100) megabits per second download and upload speeds;
5. The size and the scope of the unserved and underserved area proposed to be served;
6. The technical, managerial, and financial capabilities of the applicant, demonstrating the
ability to successfully deploy the proposed project and provide broadband service;
7. A project requesting less than fifty percent (50%) funding from the requested grant;
8. Projects that will be eligible for the Affordable Connectivity Program for low-income
consumers administered by the Federal Communications Commission; and
9. Projects that plan to encourage adoption of broadband services, including community
outreach to promote adoption, technical support, and training on how to connect;
(b) Award no more than fifty percent (50%) of the total project cost, unless the project meets the
following density requirements:
1. Projects that average zero to five (5) locations per route mile, which may be eligible for
reimbursement of up to seventy percent (70%) of the cost of the project;
2. Projects that average five (5) to ten (10) locations per route mile, which may be eligible for
reimbursement of up to sixty percent (60%) of the cost of the project; and
3. Projects that average eleven (11) locations or more per route mile, which may be eligible for
reimbursement of fifty percent (50%) of the cost of the project;
(c) Require the remaining project costs to be paid by matching funds from:
1. A private source, including but not limited to financial institutions that serve distribution
cooperatives;
2. A city, county, urban-county government, or consolidated local government; or
3. Any combination of matching moneys provided under subparagraphs 1. and 2. of this
paragraph;
(d) Allow eligible project expenses, including those that are incurred starting on or after the date in the
written acknowledgement of acceptance issued under paragraph (f) of this subsection and ending at
the conclusion of the grant project, or grant project contractual term, whichever is earlier, and may
include:
1. Project engineering or design plans;
2. Permitting;
3. Pre-construction costs to make ready the project site;
4. Outside plant materials, including fiber; poles, hardware, conduit or splitters; CHAPTER 202
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5. Labor, construction management, and equipment; and
6. Installation and testing of the broadband services;
(e) Make a determination that an application meets the funding criteria, unless the proposed project
area is found to be partially served, in which case the application may be amended and partial
funding based on the partial service provided may be granted; and
(f) 1. Issue within sixty (60) days of receipt of an application for grant funds, except in the case of a
challenged application under the timeline in subsection (7) of this section, a written
acknowledgement of either:
a. Acceptance;
b. Denial and any reasons for denial of the application; or
c. A request for additional information to process the application listing the specific
information required; and
2. Issue grant funds to the applicant by the fifteenth day of the month, or the next business day if
the fifteenth day falls on a weekend day or state or federal holiday, when a complete
requisition of funds packet is received prior to the fifth day of the month.
(10) The office shall not reimburse applicants for special construction charges, including fees or charges
imposed upon the end user as a condition of receiving broadband service at an address.
(11) The office may provide an incentive for timely completion or a disincentive for not meeting agreed upon
timeframes.
(12) Grant funds awarded to an applicant to supplement the applicant's federal fund award may not be used for
costs that will be reimbursed by the other federal funds.
(13) No funds shall be used:
(a) To support any broadband deployment project involving the upgrade of an existing facility already
delivering broadband services, including an upgrade of existing wireline, or terrestrial infrastructure
capable of delivering services greater than twenty-five (25) megabits per second downstream and
three (3) megabits per second upstream; or
(b) For non-capital expenses, non-broadband services, marketing, or advertising. [The broadband
deployment project area shall be described by census block including the specific addresses to be
serviced or by shapefile geospatial data.
(10) Grant applicants shall pay a minimum of fifty percent (50%) of the project cost which shall not include any
matching funds received from federal or state government grants for broadband deployment in the project
area.]
(14)[(11)] Moneys in this fund shall not be used by or transferred to the Kentucky Communications Network
Authority.
(15) (a)[(12)] To carry out the purposes of this section, the office may[authority shall] promulgate
administration regulations under[in accordance with] KRS Chapter 13A.[ Within one hundred eighty
(180) days of July 15, 2020, the authority shall promulgate regulations to implement the provisions of
this section and KRS 224A.011, 224A.110, and 224A.112 and govern the submission, review, and
approval of applications and the administration of broadband deployment projects.]
(b) The office[authority] shall not promulgate any regulations that place obligations on the applicants that
are more restrictive than applicable federal or state law.[ Except as otherwise provided in this section,
all of the authority's records relating to the broadband deployment fund shall be deemed confidential
unless disclosure is required under the provisions of the Open Records Act, KRS 61.870 to 61.884.]
(c) In the event that any state law or administrative regulation affecting the broadband deployment fund
conflicts with any federal law or regulation related to federal broadband funding, the federal law or
regulation shall govern. The office may adopt state and local program requirements to comply with
all federal laws and regulation related to federal broadband funding.
SECTION 5. A NEW SECTION OF KRS CHAPTER 224A IS CREATED TO READ AS FOLLOWS: ACTS OF THE GENERAL ASSEMBLY 12
(1) The General Assembly hereby finds and declares that:
(a) A rural infrastructure improvement fund, and a program to administer the fund, is necessary to
further the Commonwealth's goal to expand and accelerate access to broadband service throughout
the entire Commonwealth; and
(b) Supporting the replacement of utility poles will provide benefits to Kentucky residents by:
1. Facilitating the construction of broadband networks;
2. Minimizing the potential for disputes between broadband providers and utility pole owners
that could otherwise delay deployment;
3. Improving the resiliency and longevity of broadband infrastructure; and
4. Addressing needs for broadband investment not yet fully met by existing programs.
(2) As used in this section:
(a) "Application" means an application made under subsection (4) of this section for eligible pole
replacement costs;
(b) "Eligible pole replacement":
1. Means the removal of an existing utility pole and replacement with a new utility pole in an
unserved area in order to accommodate the attachment of facilities to be used, in whole or in
part, by a retail provider to provide qualifying broadband service access to residences or
businesses within an unserved area; and
2. Does not include the removal and replacement of a utility pole in order to accommodate
facilities used only for the provision of wholesale broadband or data transport service, where
the owner of the facilities, or its affiliate, does not use the facilities to provide qualifying
broadband services directly to residences or businesses;
(c) "Eligible pole replacement costs":
1. Means:
a. The actual and reasonable costs paid or incurred to perform an eligible pole
replacement;
b. The amounts of any expenditures to remove and dispose of the existing utility pole, to
purchase and install a replacement utility pole, or to transfer any existing facilities to
the new pole; and
c. The costs of reimbursing another party for the costs of performing an eligible pole
replacement, when paid or incurred by the person responsible for the costs; and
2. Does not include:
a. Costs paid or incurred to perform an eligible pole replacement by a party who is not
responsible for those costs, and which are charged or passed along to the responsible
party;
b. Costs for which the party incurring or paying the costs separately has received or is
entitled to receive reimbursement under the terms of a state or federal grant program
for the deployment of broadband facilities; and
c. The receipt of a state or federal grant where the pole replacement costs, for which
reimbursement is requested, exceed the pole replacement costs that were reasonably
anticipated at the time of, or on which the amount of, the other support funding was
predicated.
Costs are considered separately reimbursed for purposes of this paragraph if the amount of an award
under another state or federal broadband program included consideration, by the awarding entity, of
the pole replacement costs by the applicant;
(d) "Fund" means the rural infrastructure improvement fund established by subsection (3) of this
section; CHAPTER 202
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(e) "Pole owner" means any person or entity that owns or controls a utility pole;
(f) "Program" means the Kentucky Rural Infrastructure Improvement Program established by
subsection (4) of this section;
(g) "Qualifying broadband service" means a retail wireline broadband service capable of delivering
Internet access at speeds of at least one hundred (100) megabits per second in both the downstream
and upstream directions, and with latency at a level sufficient to permit real-time, interactive
applications; and
(h) "Utility pole" means any pole used, in whole or in part, for any wire communications or electric
distribution, regardless of the owner or operator of the pole.
(3) (a) There is created within the State Treasury a trust and agency account to be known as the rural
infrastructure improvement fund, consisting of moneys appropriated by the General Assembly,
federal funds, grants, and gifts.
(b) The fund shall be administered by the Office of Broadband Development and all money deposited in
the fund shall be used:
1. By the office to provide reimbursements to qualified applicants under the Rural Infrastructure
Improvement Program established under subsection (4) of this section;
2. For the purposes of covering the costs of program administration and operation; and
3. In a manner consistent with federal law.
(c) Notwithstanding KRS 45.229, any moneys remaining in the fund at the close of the fiscal year shall
not lapse but shall be carried forward into the succeeding fiscal year to be used for the purposes set
forth in this section.
(d) Interest earned on money deposited to the credit of the fund shall be retained in the fund and shall
not lapse.
(e) Moneys deposited in the fund are hereby appropriated for the purposes in this section.
(4) (a) There is hereby established the Kentucky Rural Infrastructure Improvement Program for the
purpose of expediting and facilitating the deployment of broadband service to individuals, businesses,
agricultural operations, and community access points in unserved areas by reimbursing a portion of
eligible pole replacement costs incurred by eligible applicants.
(b) The office shall administer and provide staff assistance for the program and shall be responsible for
receiving, reviewing, and approving applications for pole reimbursements.
(c) The office shall award pole reimbursements from moneys in the fund created by subsection (3) of
this section until all moneys in the fund are exhausted.
(d) No later than September 1, 2022, the office shall:
1. Promulgate administrative regulations under KRS Chapter 13A necessary for the
administration of this section;
2. Publish an application for pole replacement reimbursements that shall require:
a. Information sufficient to establish the number, cost, and eligibility of eligible pole
replacements that qualify for reimbursement;
b. Documentation sufficient to establish that the claimed eligible pole replacements have
been completed, including receipts verifying the amount of eligible pole replacement
costs paid by the applicant;
c. The amount of program reimbursement requested in the application and any grant
funding or accounting information required to justify the amount of the request;
d. i. A statement that the costs for which reimbursement is requested have not been
reimbursed through any other state or federal broadband grant program.
ii. If the applicant is a recipient of funding from another program, the statement
shall include an explanation of how the costs for which reimbursement is ACTS OF THE GENERAL ASSEMBLY 14
requested exceed the pole replacement costs on which the original award was
predicated or that were reasonably anticipated at the time of the original award;
e. A notarized statement from an officer or agent of the applicant that the contents of the
application are true and accurate and that the applicant accepts the requirements of
this section and any promulgated administrative regulations as a condition of receiving
an award of program reimbursement; and
f. Any other information necessary for the office to comply with any conditions on federal
funding used in connection with the program; and
3. Publish and maintain on its Web site:
a. Statistics on the number of applications received, processed, and rejected by the office
under the pole replacement program;
b. Statistics on the size, number, and status of reimbursements awarded by the office
under the pole replacement program, including the pole owners and broadband
providers receiving reimbursements; and
c. The amount of money remaining in the fund.
(e) An applicant who incurs or pays the costs of an eligible pole replacement to accommodate broadband
facilities consistent with this section may apply to the office for reimbursement.
(f) As a condition of receiving reimbursement under this subsection, an applicant shall:
1. Certify its compliance with the requirements of this section;
2. Agree to comply with any requirements that the office determines to be necessary conditions
on federal funding used in connection with the program;
3. Agree to refund, with interest at the applicable federal funds rate as specified by KRS 355.4A-
506, to the fund, any reimbursements or portions of reimbursements received from the fund
under this subsection, if the office finds, upon substantial evidence and after notice and
opportunity to respond, that the recipient materially violated any of the requirements agreed to
under this section;
4. Agree that no funds awarded by the program will be used to meet any cash match requirement
under any other broadband program administered by the Commonwealth or one (1) of its
subdivisions;
5. Agree to submit reports as the office may require regarding broadband deployment facilitated
by the program, which may include reports demonstrating that an application that has
received a federally funded award is meeting or exceeding buildout requirements contained in
that award; and
6. Agree to not include in any rates or fees charged for its services any eligible pole replacement
costs that were reimbursed by the program, paid for by a broadband provider, or funded by
another grant source.
(g) 1. If the necessary information is not otherwise reasonably available to the applicant, the
applicant may request a pole owner performing an eligible pole replacement to provide the
number and costs of the pole replacements, receipts verifying the amount of pole replacement
costs paid by the applicant, and confirmation that the pole replacement costs were incurred to
accommodate the applicant’s attachment and not due to some other reason.
2. In the event the office requires additional information from an applicant following the
submission of an application to confirm the eligibility of costs in an application that is in the
possession of the pole owner and not otherwise reasonably available to the applicant, the
applicant may also request that the pole owner assist with providing the information as
requested by the office.
3. A pole owner shall coordinate in good faith to provide the information to the applicant, and
may require reimbursement from the broadband provider of its actual and reasonable
administrative expenses in connection with the coordination, which shall not exceed five
percent (5%) of the eligible pole replacement costs. CHAPTER 202
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4. Administrative costs that a broadband provider reimburses to a pole owner under this
subsection are not eligible for reimbursement from the fund as eligible pole replacement costs.
(h) Within sixty (60) days of receipt of a completed application establishing the eligibility of costs for
reimbursement, and to the extent that moneys are available in the fund, the office shall award the
lesser of:
1. Five thousand dollars ($5,000) for each pole replaced; or
2. Fifty percent (50%) of the total amount incurred or paid by the applicant for eligible pole
replacement costs.
(i) Any application pending at the exhaustion of the moneys in the fund shall be deemed denied but may
be refiled if sufficient moneys are later made available in the fund.
(j) No later than one (1) year after the fund receives moneys for the purpose of providing pole
replacement reimbursements to qualified applicants, the authority shall, on an annual basis, cause to
be conducted an independent audit of the office's administration of the fund for compliance with the
requirements of this section. This audit may be performed by either the Auditor of Public Accounts
or a certified public accountant in conjunction with the annual audit of the authority. The authority
shall comply with the provisions of KRS 45.149 before entering into a contract for audit services with
a certified public accountant.
(5) A broadband provider's use of funds reimbursed under this subsection to pay eligible pole replacement costs
shall have no effect on the subsequent ownership of any replacement pole purchases and installed by a pole
owner using the funds.
Section 6. KRS 278.5461 is amended to read as follows:
In addition to the definitions in KRS 278.010 and KRS 278.516(2), for KRS 278.546 to 278.5462, [the following
definitions shall apply:
(1) "Broadband" means any service that is used to deliver video or to provide access to the Internet and that
consists of the offering of the capability to transmit information at a rate that is generally not less than two
hundred (200) kilobits per second in at least one direction; or any service that combines computer processing,
information storage, and protocol conversion to enable users to access Internet content and services. Nothing
in this definition shall be construed to include any intrastate service, other than digital subscriber line service,
tariffed at the commission as of July 15, 2004.
(2) ]"local exchange carrier" means any company certified by the commission to provide local exchange
telecommunications service in the Commonwealth on or before June 30, 1995.
Section 7. KRS 278.5464 is amended to read as follows:
(1) The General Assembly recognizes and declares:
(a) The provision of broadband service to residential, commercial, and industrial customers is critical to
securing a sound economy and promoting the general welfare of the Commonwealth; and
(b) Distribution cooperatives are able to access and leverage federal funding to extend and enhance the
availability of broadband service to Kentucky residents who are currently unserved or underserved.
(2) As used in this section:
(a)[ "Broadband" means any wireline, fixed wireless, or fixed terrestrial technology having a capacity to
transmit data from or to the Internet with a minimum speed of twenty-five (25) megabits per second
downstream and three (3) megabits per second upstream as defined by the Federal Communications
Commission or the United States Department of Agriculture and any amendments to those definitions.
If the agencies use different speed definitions, the faster speed definition shall apply;
(b)] "Underserved area" has the same meaning as in Section 2 of this Act[means any project area where
broadband service with a minimum twenty-five (25) megabits per second downstream and three (3)
megabits per second upstream is not available]; and
(b)[(c)] "Unserved area" has the same meaning as in Section 2 of this Act[means any project area where
broadband service with a minimum ten (10) megabits per second downstream and one (1) megabit per
second upstream is not available]. ACTS OF THE GENERAL ASSEMBLY 16
(3) Notwithstanding any other statute to the contrary, [:
(a) ]a distribution cooperative may facilitate the operation of an affiliate engaged exclusively in the provision of
broadband service to unserved or underserved households and businesses by:
(a)[1.] Constructing and leasing excess capacity on any fiber optic cable for broadband service which shall
not require a certificate of public convenience and necessity under KRS 278.020; however, the
construction of fiber optic cable used to support the distribution cooperative's electric distribution
system shall require a certificate of public convenience and necessity under KRS 278.020;
(b)[2.] Issuing securities or evidences of indebtedness in an amount not to exceed twenty-five percent (25%) of
the net book value of its assets, the proceeds of which shall be used for the exclusive purpose of
capitalizing the affiliate; or
(c)[3.] Pledging up to twenty-five percent (25%) of the net book value of its assets as collateral for a loan
entered into by the affiliate for the purpose of providing broadband services[; and
(b) The commission shall grant approval of the leasing of excess capacity, the issuing of securities or
evidences of indebtedness, or the pledging of assets upon a finding the proposal is in the public interest.
(4) The commission shall take into consideration the policy of encouraging the provision of broadband service to
unserved or underserved households and businesses throughout the Commonwealth when determining
whether:
(a) The proposed investment will result in wasteful duplication of investment in the case of any distribution
cooperative's application for a certificate of public convenience and necessity under KRS 278.020 that
includes the construction of a fiber optic cable system with capacity in excess of that which is necessary
to support the distribution cooperative's system under subsection (3)(a)1. of this section; and
(b) The issuance or assumption of securities or evidence of indebtedness satisfies the criteria of KRS
278.300(3) in the case of any distribution cooperative's application for approval of an issuance of
securities or evidence of indebtedness or pledge of assets under subsection (3)(a)2. and 3. of this
section].
(4)[(5)] A distribution cooperative shall comply with the cost allocation requirements of:
(a) KRS 278.2201, 278.2203, 278.2205, 278.2207, 278.2209, and 278.2211; and
(b) Only KRS 278.2213(1) and (3) with regard to any costs associated with its facilitation of an affiliate's
provision of broadband services.
(5)[(6)] [Prior to December 31, 2021, ]The commission shall promulgate administrative regulations regarding
pole attachments under the commission's jurisdiction, including those necessary for the provision of broadband
service.
(6) Before broadband services may be offered under this section, a distribution cooperative shall, by resolution
of the board of directors and spread upon its minutes, have an economic feasibility study conducted. The
feasibility study shall be provided to the commission and made available to distribution cooperative
members upon request.
(7) A distribution cooperative shall not allow the installation or operation of a broadband system on its electric
delivery system by an affiliate or other broadband operator to diminish the reliability of the electric delivery
system.
(8) A distribution cooperative shall not require any person to purchase broadband services from an affiliate or
other broadband operator as a condition of receiving or continuing to receive electric energy from the
distribution cooperative.
(9) A distribution cooperative shall not disconnect or threaten to disconnect its electric service to any customer
due to the customer's failure to pay for broadband services provided to the customer by an affiliate or other
broadband operator.
(10) Every distribution cooperative shall conduct an annual audit of compliance with this section, which shall be
provided to the commission and made available to distribution cooperative members upon request.
(11) The commission shall have no jurisdiction over the creation or operation of an distribution cooperative's
broadband affiliate, except as referred to in subsection (4) of this section. CHAPTER 202
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Section 8. KRS 139.010 is amended to read as follows:
As used in this chapter, unless the context otherwise provides:
(1) (a) "Admissions" means the fees paid for:
1. The right of entrance to a display, program, sporting event, music concert, performance, play,
show, movie, exhibit, fair, or other entertainment or amusement event or venue; and
2. The privilege of using facilities or participating in an event or activity, including but not limited
to:
a. Bowling centers;
b. Skating rinks;
c. Health spas;
d. Swimming pools;
e. Tennis courts;
f. Weight training facilities;
g. Fitness and recreational sports centers; and
h. Golf courses, both public and private;
regardless of whether the fee paid is per use or in any other form, including but not limited to an
initiation fee, monthly fee, membership fee, or combination thereof.
(b) "Admissions" does not include:
1. Any fee paid to enter or participate in a fishing tournament; or
2. Any fee paid for the use of a boat ramp for the purpose of allowing boats to be launched into or
hauled out from the water;
(2) "Advertising and promotional direct mail" means direct mail the primary purpose of which is to attract public
attention to a product, person, business, or organization, or to attempt to sell, popularize, or secure financial
support for a product, person, business, or organization. As used in this definition, "product" means tangible
personal property, an item transferred electronically, or a service;
(3) "Business" includes any activity engaged in by any person or caused to be engaged in by that person with the
object of gain, benefit, or advantage, either direct or indirect;
(4) "Commonwealth" means the Commonwealth of Kentucky;
(5) "Department" means the Department of Revenue;
(6) (a) "Digital audio-visual works" means a series of related images which, when shown in succession, impart
an impression of motion, with accompanying sounds, if any.
(b) "Digital audio-visual works" includes movies, motion pictures, musical videos, news and entertainment
programs, and live events.
(c) "Digital audio-visual works" shall not include video greeting cards, video games, and electronic games;
(7) (a) "Digital audio works" means works that result from the fixation of a series of musical, spoken, or other
sounds.
(b) "Digital audio works" includes ringtones, recorded or live songs, music, readings of books or other
written materials, speeches, or other sound recordings.
(c) "Digital audio works" shall not include audio greeting cards sent by electronic mail;
(8) (a) "Digital books" means works that are generally recognized in the ordinary and usual sense as books,
including any literary work expressed in words, numbers, or other verbal or numerical symbols or
indicia if the literary work is generally recognized in the ordinary or usual sense as a book. ACTS OF THE GENERAL ASSEMBLY 18
(b) "Digital books" shall not include digital audio-visual works, digital audio works, periodicals,
magazines, newspapers, or other news or information products, chat rooms, or Web logs;
(9) (a) "Digital code" means a code which provides a purchaser with a right to obtain one (1) or more types of
digital property. A "digital code" may be obtained by any means, including electronic mail messaging
or by tangible means, regardless of the code's designation as a song code, video code, or book code.
(b) "Digital code" shall not include a code that represents:
1. A stored monetary value that is deducted from a total as it is used by the purchaser; or
2. A redeemable card, gift card, or gift certificate that entitles the holder to select specific types of
digital property;
(10) (a) "Digital property" means any of the following which is transferred electronically:
1. Digital audio works;
2. Digital books;
3. Finished artwork;
4. Digital photographs;
5. Periodicals;
6. Newspapers;
7. Magazines;
8. Video greeting cards;
9. Audio greeting cards;
10. Video games;
11. Electronic games; or
12. Any digital code related to this property.
(b) "Digital property" shall not include digital audio-visual works or satellite radio programming;
(11) (a) "Direct mail" means printed material delivered or distributed by United States mail or other delivery
service to a mass audience or to addressees on a mailing list provided by the purchaser or at the
direction of the purchaser when the cost of the items are not billed directly to the recipient.
(b) "Direct mail" includes tangible personal property supplied directly or indirectly by the purchaser to the
direct mail retailer for inclusion in the package containing the printed material.
(c) "Direct mail" does not include multiple items of printed material delivered to a single address;
(12) "Directly used in the manufacturing or industrial processing process" means the process that commences with
the movement of raw materials from storage into a continuous, unbroken, integrated process and ends when
the finished product is packaged and ready for sale;
(13) (a) "Extended warranty services" means services provided through a service contract agreement between
the contract provider and the purchaser where the purchaser agrees to pay compensation for the contract
and the provider agrees to repair, replace, support, or maintain tangible personal property or digital
property according to the terms of the contract if:
1. The service contract agreement is sold or purchased on or after July 1, 2018; and
2. The tangible personal property or digital property for which the service contract agreement is
provided is subject to tax under this chapter or under KRS 138.460.
(b) "Extended warranty services" does not include the sale of a service contract agreement for tangible
personal property to be used by a small telephone utility as defined in KRS 278.516 or a Tier III CMRS
provider as defined in KRS 65.7621 to deliver communications services as defined in KRS 136.602 or
broadband[ as defined in KRS 278.5461];
(14) (a) "Finished artwork" means final art that is used for actual reproduction by photomechanical or other
processes or for display purposes. CHAPTER 202
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(b) "Finished artwork" includes:
1. Assemblies;
2. Charts;
3. Designs;
4. Drawings;
5. Graphs;
6. Illustrative materials;
7. Lettering;
8. Mechanicals;
9. Paintings; and
10. Paste-ups;
(15) (a) "Gross receipts" and "sales price" mean the total amount or consideration, including cash, credit,
property, and services, for which tangible personal property, digital property, or services are sold,
leased, or rented, valued in money, whether received in money or otherwise, without any deduction for
any of the following:
1. The retailer's cost of the tangible personal property, digital property, or services sold;
2. The cost of the materials used, labor or service cost, interest, losses, all costs of transportation to
the retailer, all taxes imposed on the retailer, or any other expense of the retailer;
3. Charges by the retailer for any services necessary to complete the sale;
4. Delivery charges, which are defined as charges by the retailer for the preparation and delivery to
a location designated by the purchaser including transportation, shipping, postage, handling,
crating, and packing;
5. Any amount for which credit is given to the purchaser by the retailer, other than credit for
tangible personal property or digital property traded when the tangible personal property or
digital property traded is of like kind and character to the property purchased and the property
traded is held by the retailer for resale; and
6. The amount charged for labor or services rendered in installing or applying the tangible personal
property, digital property, or service sold.
(b) "Gross receipts" and "sales price" shall include consideration received by the retailer from a third party
if:
1. The retailer actually receives consideration from a third party and the consideration is directly
related to a price reduction or discount on the sale to the purchaser;
2. The retailer has an obligation to pass the price reduction or discount through to the purchaser;
3. The amount of consideration attributable to the sale is fixed and determinable by the retailer at
the time of the sale of the item to the purchaser; and
4. One (1) of the following criteria is met:
a. The purchaser presents a coupon, certificate, or other documentation to the retailer to
claim a price reduction or discount where the coupon, certificate, or documentation is
authorized, distributed, or granted by a third party with the understanding that the third
party will reimburse any seller to whom the coupon, certificate, or documentation is
presented;
b. The price reduction or discount is identified as a third-party price reduction or discount on
the invoice received by the purchaser or on a coupon, certificate, or other documentation
presented by the purchaser; or ACTS OF THE GENERAL ASSEMBLY 20
c. The purchaser identifies himself or herself to the retailer as a member of a group or
organization entitled to a price reduction or discount. A "preferred customer" card that is
available to any patron does not constitute membership in such a group.
(c) "Gross receipts" and "sales price" shall not include:
1. Discounts, including cash, term, or coupons that are not reimbursed by a third party and that are
allowed by a retailer and taken by a purchaser on a sale;
2. Interest, financing, and carrying charges from credit extended on the sale of tangible personal
property, digital property, or services, if the amount is separately stated on the invoice, bill of
sale, or similar document given to the purchaser;
3. Any taxes legally imposed directly on the purchaser that are separately stated on the invoice, bill
of sale, or similar document given to the purchaser; or
4. Local alcohol regulatory license fees authorized under KRS 243.075 that are separately stated on
the invoice, bill of sale, or similar document given to the purchaser.
(d) As used in this subsection, "third party" means a person other than the purchaser;
(16) "In this state" or "in the state" means within the exterior limits of the Commonwealth and includes all territory
within these limits owned by or ceded to the United States of America;
(17) "Industrial processing" includes:
(a) Refining;
(b) Extraction of minerals, ores, coal, clay, stone, petroleum, or natural gas;
(c) Mining, quarrying, fabricating, and industrial assembling;
(d) The processing and packaging of raw materials, in-process materials, and finished products; and
(e) The processing and packaging of farm and dairy products for sale;
(18) (a) "Lease or rental" means any transfer of possession or control of tangible personal property for a fixed or
indeterminate term for consideration. A lease or rental shall include future options to:
1. Purchase the property; or
2. Extend the terms of the agreement and agreements covering trailers where the amount of
consideration may be increased or decreased by reference to the amount realized upon sale or
disposition of the property as defined in 26 U.S.C. sec. 7701(h)(1).
(b) "Lease or rental" shall not include:
1. A transfer of possession or control of property under a security agreement or deferred payment
plan that requires the transfer of title upon completion of the required payments;
2. A transfer of possession or control of property under an agreement that requires the transfer of
title upon completion of the required payments and payment of an option price that does not
exceed the greater of one hundred dollars ($100) or one percent (1%) of the total required
payments; or
3. Providing tangible personal property and an operator for the tangible personal property for a
fixed or indeterminate period of time. To qualify for this exclusion, the operator must be
necessary for the equipment to perform as designed, and the operator must do more than
maintain, inspect, or setup the tangible personal property.
(c) This definition shall apply regardless of the classification of a transaction under generally accepted
accounting principles, the Internal Revenue Code, or other provisions of federal, state, or local law;
(19) (a) "Machinery for new and expanded industry" means machinery:
1. Directly used in the manufacturing or industrial processing process of:
a. Tangible personal property at a plant facility; CHAPTER 202
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b. Distilled spirits or wine at a plant facility or on the premises of a distiller, rectifier,
winery, or small farm winery licensed under KRS 243.030 that includes a retail
establishment on the premises; or
c. Malt beverages at a plant facility or on the premises of a brewer or microbrewery licensed
under KRS 243.040 that includes a retail establishment;
2. Which is incorporated for the first time into:
a. A plant facility established in this state; or
b. Licensed premises located in this state; and
3. Which does not replace machinery in the plant facility or licensed premises unless that
machinery purchased to replace existing machinery:
a. Increases the consumption of recycled materials at the plant facility by not less than ten
percent (10%);
b. Performs different functions;
c. Is used to manufacture a different product; or
d. Has a greater productive capacity, as measured in units of production, than the machinery
being replaced.
(b) "Machinery for new and expanded industry" does not include repair, replacement, or spare parts of any
kind, regardless of whether the purchase of repair, replacement, or spare parts is required by the
manufacturer or seller as a condition of sale or as a condition of warranty;
(20) "Manufacturing" means any process through which material having little or no commercial value for its
intended use before processing has appreciable commercial value for its intended use after processing by the
machinery;
(21) "Marketplace" means any physical or electronic means through which one (1) or more retailers may advertise
and sell tangible personal property, digital property, or services, or lease tangible personal property or digital
property, such as a catalog, Internet Web site, or television or radio broadcast, regardless of whether the
tangible personal property, digital property, or retailer is physically present in this state;
(22) (a) "Marketplace provider" means a person, including any affiliate of the person, that facilitates a retail sale
by satisfying subparagraphs 1. and 2. of this paragraph as follows:
1. The person directly or indirectly:
a. Lists, makes available, or advertises tangible personal property, digital property, or
services for sale by a marketplace retailer in a marketplace owned, operated, or controlled
by the person;
b. Facilitates the sale of a marketplace retailer's product through a marketplace by
transmitting or otherwise communicating an offer or acceptance of a retail sale of tangible
personal property, digital property, or services between a marketplace retailer and a
purchaser in a forum including a shop, store, booth, catalog, Internet site, or similar
forum;
c. Owns, rents, licenses, makes available, or operates any electronic or physical
infrastructure or any property, process, method, copyright, trademark, or patent that
connects marketplace retailers to purchasers for the purpose of making retail sales of
tangible personal property, digital property, or services;
d. Provides a marketplace for making retail sales of tangible personal property, digital
property, or services, or otherwise facilitates retail sales of tangible personal property,
digital property, or services, regardless of ownership or control of the tangible personal
property, digital property, or services, that are the subject of the retail sale;
e. Provides software development or research and development activities related to any
activity described in this subparagraph, if the software development or research and ACTS OF THE GENERAL ASSEMBLY 22
development activities are directly related to the physical or electronic marketplace
provided by a marketplace provider;
f. Provides or offers fulfillment or storage services for a marketplace retailer;
g. Sets prices for a marketplace retailer's sale of tangible personal property, digital property,
or services;
h. Provides or offers customer service to a marketplace retailer or a marketplace retailer's
customers, or accepts or assists with taking orders, returns, or exchanges of tangible
personal property, digital property, or services sold by a marketplace retailer; or
i. Brands or otherwise identifies sales as those of the marketplace provider; and
2. The person directly or indirectly:
a. Collects the sales price or purchase price of a retail sale of tangible personal property,
digital property, or services;
b. Provides payment processing services for a retail sale of tangible personal property,
digital property, or services;
c. Through terms and conditions, agreements, or arrangements with a third party, collects
payment in connection with a retail sale of tangible personal property, digital property, or
services from a purchaser and transmits that payment to the marketplace retailer,
regardless of whether the person collecting and transmitting the payment receives
compensation or other consideration in exchange for the service; or
d. Provides a virtual currency that purchasers are allowed or required to use to purchase
tangible personal property, digital property, or services.
(b) "Marketplace provider" includes but is not limited to a person that satisfies the requirements of this
subsection through the ownership, operation, or control of a digital distribution service, digital
distribution platform, online portal, or application store;
(23) "Marketplace retailer" means a seller that makes retail sales through any marketplace owned, operated, or
controlled by a marketplace provider;
(24) (a) "Occasional sale" includes:
1. A sale of tangible personal property or digital property not held or used by a seller in the course
of an activity for which he or she is required to hold a seller's permit, provided such sale is not
one (1) of a series of sales sufficient in number, scope, and character to constitute an activity
requiring the holding of a seller's permit. In the case of the sale of the entire, or a substantial
portion of the nonretail assets of the seller, the number of previous sales of similar assets shall be
disregarded in determining whether or not the current sale or sales shall qualify as an occasional
sale; or
2. Any transfer of all or substantially all the tangible personal property or digital property held or
used by a person in the course of such an activity when after such transfer the real or ultimate
ownership of such property is substantially similar to that which existed before such transfer.
(b) For the purposes of this subsection, stockholders, bondholders, partners, or other persons holding an
interest in a corporation or other entity are regarded as having the "real or ultimate ownership" of the
tangible personal property or digital property of such corporation or other entity;
(25) (a) "Other direct mail" means any direct mail that is not advertising and promotional direct mail, regardless
of whether advertising and promotional direct mail is included in the same mailing.
(b) "Other direct mail" includes but is not limited to:
1. Transactional direct mail that contains personal information specific to the addressee, including
but not limited to invoices, bills, statements of account, and payroll advices;
2. Any legally required mailings, including but not limited to privacy notices, tax reports, and
stockholder reports; and
3. Other nonpromotional direct mail delivered to existing or former shareholders, customers,
employees, or agents, including but not limited to newsletters and informational pieces. CHAPTER 202
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(c) "Other direct mail" does not include the development of billing information or the provision of any data
processing service that is more than incidental to the production of printed material;
(26) "Person" includes any individual, firm, copartnership, joint venture, association, social club, fraternal
organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, cooperative, assignee,
governmental unit or agency, or any other group or combination acting as a unit;
(27) "Permanent," as the term applies to digital property, means perpetual or for an indefinite or unspecified length
of time;
(28) "Plant facility" means a single location that is exclusively dedicated to manufacturing or industrial processing
activities. A location shall be deemed to be exclusively dedicated to manufacturing or industrial processing
activities even if retail sales are made there, provided that the retail sales are incidental to the manufacturing or
industrial processing activities occurring at the location. The term "plant facility" shall not include any
restaurant, grocery store, shopping center, or other retail establishment;
(29) (a) "Prewritten computer software" means:
1. Computer software, including prewritten upgrades, that are not designed and developed by the
author or other creator to the specifications of a specific purchaser;
2. Software designed and developed by the author or other creator to the specifications of a specific
purchaser when it is sold to a person other than the original purchaser; or
3. Any portion of prewritten computer software that is modified or enhanced in any manner, where
the modification or enhancement is designed and developed to the specifications of a specific
purchaser, unless there is a reasonable, separately stated charge on an invoice or other statement
of the price to the purchaser for the modification or enhancement.
(b) When a person modifies or enhances computer software of which the person is not the author or creator,
the person shall be deemed to be the author or creator only of the modifications or enhancements the
person actually made.
(c) The combining of two (2) or more prewritten computer software programs or portions thereof does not
cause the combination to be other than prewritten computer software;
(30) (a) "Purchase" means any transfer of title or possession, exchange, barter, lease, or rental, conditional or
otherwise, in any manner or by any means whatsoever, of:
1. Tangible personal property;
2. An extended warranty service;
3. Digital property transferred electronically; or
4. Services included in KRS 139.200;
for a consideration.
(b) "Purchase" includes:
1. When performed outside this state or when the customer gives a resale certificate, the producing,
fabricating, processing, printing, or imprinting of tangible personal property for a consideration
for consumers who furnish either directly or indirectly the materials used in the producing,
fabricating, processing, printing, or imprinting;
2. A transaction whereby the possession of tangible personal property or digital property is
transferred but the seller retains the title as security for the payment of the price; and
3. A transfer for a consideration of the title or possession of tangible personal property or digital
property which has been produced, fabricated, or printed to the special order of the customer, or
of any publication;
(31) "Recycled materials" means materials which have been recovered or diverted from the solid waste stream and
reused or returned to use in the form of raw materials or products; ACTS OF THE GENERAL ASSEMBLY 24
(32) "Recycling purposes" means those activities undertaken in which materials that would otherwise become solid
waste are collected, separated, or processed in order to be reused or returned to use in the form of raw
materials or products;
(33) "Remote retailer" means a retailer with no physical presence in this state;
(34) (a) "Repair, replacement, or spare parts" means any tangible personal property used to maintain, restore,
mend, or repair machinery or equipment.
(b) "Repair, replacement, or spare parts" does not include machine oils, grease, or industrial tools;
(35) (a) "Retailer" means:
1. Every person engaged in the business of making retail sales of tangible personal property, digital
property, or furnishing any services in a retail sale included in KRS 139.200;
2. Every person engaged in the business of making sales at auction of tangible personal property or
digital property owned by the person or others for storage, use or other consumption, except as
provided in paragraph (c) of this subsection;
3. Every person making more than two (2) retail sales of tangible personal property, digital
property, or services included in KRS 139.200 during any twelve (12) month period, including
sales made in the capacity of assignee for the benefit of creditors, or receiver or trustee in
bankruptcy;
4. Any person conducting a race meeting under the provision of KRS Chapter 230, with respect to
horses which are claimed during the meeting.
(b) When the department determines that it is necessary for the efficient administration of this chapter to
regard any salesmen, representatives, peddlers, or canvassers as the agents of the dealers, distributors,
supervisors or employers under whom they operate or from whom they obtain the tangible personal
property, digital property, or services sold by them, irrespective of whether they are making sales on
their own behalf or on behalf of the dealers, distributors, supervisors or employers, the department may
so regard them and may regard the dealers, distributors, supervisors or employers as retailers for
purposes of this chapter.
(c) 1. Any person making sales at a charitable auction for a qualifying entity shall not be a retailer for
purposes of the sales made at the charitable auction if:
a. The qualifying entity, not the person making sales at the auction, is sponsoring the
auction;
b. The purchaser of tangible personal property at the auction directly pays the qualifying
entity sponsoring the auction for the property and not the person making the sales at the
auction; and
c. The qualifying entity, not the person making sales at the auction, is responsible for the
collection, control, and disbursement of the auction proceeds.
2. If the conditions set forth in subparagraph 1. of this paragraph are met, the qualifying entity
sponsoring the auction shall be the retailer for purposes of the sales made at the charitable
auction.
3. For purposes of this paragraph, "qualifying entity" means a resident:
a. Church;
b. School;
c. Civic club; or
d. Any other nonprofit charitable, religious, or educational organization;
(36) "Retail sale" means any sale, lease, or rental for any purpose other than resale, sublease, or subrent;
(37) (a) "Ringtones" means digitized sound files that are downloaded onto a device and that may be used to alert
the customer with respect to a communication.
(b) "Ringtones" shall not include ringback tones or other digital files that are not stored on the purchaser's
communications device; CHAPTER 202
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(38) (a) "Sale" means:
1. The furnishing of any services included in KRS 139.200;
2. Any transfer of title or possession, exchange, barter, lease, or rental, conditional or otherwise, in
any manner or by any means whatsoever, of:
a. Tangible personal property; or
b. Digital property transferred electronically;
for a consideration.
(b) "Sale" includes but is not limited to:
1. The producing, fabricating, processing, printing, or imprinting of tangible personal property or
digital property for a consideration for purchasers who furnish, either directly or indirectly, the
materials used in the producing, fabricating, processing, printing, or imprinting;
2. A transaction whereby the possession of tangible personal property or digital property is
transferred, but the seller retains the title as security for the payment of the price; and
3. A transfer for a consideration of the title or possession of tangible personal property or digital
property which has been produced, fabricated, or printed to the special order of the purchaser.
(c) This definition shall apply regardless of the classification of a transaction under generally accepted
accounting principles, the Internal Revenue Code, or other provisions of federal, state, or local law;
(39) "Seller" includes every person engaged in the business of selling tangible personal property, digital property,
or services of a kind, the gross receipts from the retail sale of which are required to be included in the measure
of the sales tax, and every person engaged in making sales for resale;
(40) (a) "Storage" includes any keeping or retention in this state for any purpose except sale in the regular
course of business or subsequent use solely outside this state of tangible personal property or digital
property purchased from a retailer.
(b) "Storage" does not include the keeping, retaining, or exercising any right or power over tangible
personal property for the purpose of subsequently transporting it outside the state for use thereafter
solely outside the state, or for the purpose of being processed, fabricated, or manufactured into, attached
to, or incorporated into, other tangible personal property to be transported outside the state and
thereafter used solely outside the state;
(41) "Tangible personal property" means personal property which may be seen, weighed, measured, felt, or
touched, or which is in any other manner perceptible to the senses and includes natural, artificial, and mixed
gas, electricity, water, steam, and prewritten computer software;
(42) "Taxpayer" means any person liable for tax under this chapter;
(43) "Transferred electronically" means accessed or obtained by the purchaser by means other than tangible storage
media; and
(44) (a) "Use" includes the exercise of:
1. Any right or power over tangible personal property or digital property incident to the ownership
of that property, or by any transaction in which possession is given, or by any transaction
involving digital property where the right of access is granted; or
2. Any right or power to benefit from extended warranty services.
(b) "Use" does not include the keeping, retaining, or exercising any right or power over tangible personal
property or digital property for the purpose of:
1. Selling tangible personal property or digital property in the regular course of business; or
2. Subsequently transporting tangible personal property outside the state for use thereafter solely
outside the state, or for the purpose of being processed, fabricated, or manufactured into,
attached to, or incorporated into, other tangible personal property to be transported outside the
state and thereafter used solely outside the state. ACTS OF THE GENERAL ASSEMBLY 26
Section 9. There is hereby appropriated Federal Fund moneys from the State Fiscal Recovery Fund of the
American Rescue Plan Act in the amount of $20,000,000 in fiscal year 2022-2023 to the Rural Infrastructure
Improvement Fund established in Section 5 of this Act.
Section 10. 2021 Ky. Acts ch. 171, sec. 3, as amended by 2021 Ky. Acts ch. 196, sec. 4, is amended to
read as follows:
(1) There is hereby appropriated Federal Funds from the Coronavirus Capital Projects Fund of the
American Rescue Plan Act of 2021[federal funds] in the amount of $182,769,000 and Federal Funds from the State
Fiscal Recovery Fund of the American Rescue Plan Act of 2021 in the amount of $67,231,000[$250,000,000] in
fiscal year 2021-2022 to the broadband deployment fund, with no more than $50,000,000 of which to be awarded
before May[ April] 1, 2022.
(2) [(a) ]In addition to the appropriation in subsection (1) of this section, there is hereby appropriated
Federal Funds from the State Fiscal Recovery Fund of the American Rescue Plan Act in the amount of $50,000,000
in fiscal year 2020-2021. Notwithstanding KRS 45.229, the Federal Fund appropriation in fiscal year 2020-2021 shall
not lapse and shall carry forward for use in fiscal year 2021-2022 and fiscal year 2022-2023.[
(b) The appropriation in paragraph (a) of this subsection shall be used for projects that provide broadband
service in furtherance of securing economic development opportunities for commercial and industrial customers,
excluding the broadband service provider itself.]
(3) The agency administering the broadband deployment fund shall promulgate administrative regulations
to ensure that[:
(a) Related to the appropriation in subsection (1) of this section,] the moneys are awarded based on the[
following] criteria in subsection (9) of Section 4 of this Act[the order as listed:
1. Projects in underserved areas or unserved areas where local, state, or federal funds are not currently
designated;
2. Projects within underserved areas or unserved areas where local, state, or federal broadband funds are
inadequate; and
3. Projects that reach the customers that are the least economical to serve;
(b) Related to the appropriations in subsections (1) and (2) of this section, a request for proposal shall be
issued for projects;
(c) Notwithstanding KRS 224A.1121(5)(f) and (10), and related to the appropriations in subsections (1)
and (2) of this section, projects will require:
1. A private match of moneys of not less than 50 percent of the total project cost; or
2. Matching funds from a city, county, urban county government, or consolidated local government of not
less than 50 percent of the total project cost; and
(d) Related to the appropriations in subsections (1) and (2) of this section, project scope should be for the
smallest feasible geographical area].
(4) The agency may provide incentive for timely completion and disincentive for not meeting agreed upon
timeframes.
(5) (a) The agency administering the broadband deployment fund shall promulgate administrative
regulations to develop a process for:
1. Receiving complaints related to insufficient broadband service;
2. Incorporating forms for the collection of data related to the complaints;
3. Reporting the information collected; and
4. Referring complaints to the Office of Attorney General, Federal Communications Commission, or
Federal Trade Commission, as appropriate.
(b) The agency shall report to the Legislative Research Commission on a quarterly basis, beginning
October 1, 2021, and the first day of each calendar quarter thereafter, the following information:
1. The location, by county, for each consumer complaint received related to insufficient broadband
service; CHAPTER 202
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2. A brief description of the complaint;
3. The broadband provider related to the complaint received;
4. The response of the broadband provider regarding the complaint received;
5. Whether the complaint was resolved to the satisfaction of the consumer; and
6. Whether a referral was made to the Office of Attorney General, Federal Communications Commission,
or Federal Trade Commission.
Section 11. The following is repealed: 2021 Ky. Acts ch. 194, secs. 16 and 17.
Section 12. Whereas Internet access is critical for families across the Commonwealth to stay informed and
connected, an emergency is declared to exist, and this Act takes effect upon its passage and approval by the Governor
or upon its otherwise becoming a law.
Vetoed in Part and Overridden and Signed by Secretary of State April 14, 2022.