UNOFFICIAL COPY 22 RS SB 249/GA
Page 1 of 18
SB024910.100 - 2190 - XXXX GA
AN ACT relating to incentive programs and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 154.20-258 is amended to read as follows: 3
(1) (a) For investment funds approved by the authority[qualified investments made] 4
prior to January 1, 2023[2022], an investor shall be entitled to a 5
nonrefundable credit equal to forty percent (40%) of the investor's 6
proportional ownership share of all qualified investments made by its 7
investment fund and verified by the authority. The aggregate tax credit 8
available to any investor shall not exceed forty percent (40%) of the cash 9
contribution made by the investor to its investment fund. 10
(b) For investment funds approved by the authority[qualified investments made] 11
on or after January 1, 2023[2022], an investor shall be entitled to a 12
nonrefundable credit not to exceed twenty-five percent (25%) of the investor's 13
proportional ownership share of all qualified investments made by its 14
investment fund and verified by the authority. 15
(c) The credit may be applied against: 16
1. Both the income tax imposed by KRS 141.020 or 141.040, and the 17
limited liability entity tax imposed by KRS 141.0401, with the ordering 18
of the credits as provided in KRS 141.0205; 19
2. The insurance taxes imposed by KRS 136.320, 136.330, and 304.3-270; 20
and 21
3. The taxes on financial institutions imposed by KRS 136.300, 136.310, 22
and 136.505. 23
(2) The tax credit amount that may be claimed by an investor in any tax year shall not 24
exceed fifty percent (50%) of the initial aggregate credit amount approved by the 25
authority for the investment fund which would be proportionally available to the 26
investor. For qualified investments approved on or after January 1, 2022, an 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 2 of 18
SB024910.100 - 2190 - XXXX GA
investor may first claim the credit granted in subsection (1) of this section on[in] the 1
tax return filed for the taxable year in which the qualified investment is made by 2
the investment fund. No tax credit shall become effective until the authority 3
notifies the Department of Revenue in accordance with subsection (6) of this 4
section[following the year in which the credit is granted]. 5
(3) If the credit amount that may be claimed in any tax year, as determined under 6
subsections (1) and (2) of this section, exceeds the investor's combined tax 7
liabilities against which the credit may be claimed for that year, the investor may 8
carry the excess tax credit forward until the tax credit is used, but the carry-forward 9
of any excess tax credit shall not increase the fifty percent (50%) limitation 10
established by subsection (2) of this section. Any tax credits not used within fifteen 11
(15) years of the approval by the authority of the aggregate tax credit amount 12
available to the investor shall be lost. 13
(4) The tax credits allowed by this section shall not apply to any liability an investor 14
may have for interest, penalties, past due taxes, or any other additions to the 15
investor's tax liability. The holder of the tax credit shall assume any and all 16
liabilities and responsibilities of the credit. 17
(5) The tax credits allowed by this section are not transferable, except that: 18
(a) A nonprofit entity may transfer, for some or no consideration, any or all of the 19
credits it receives under this section and any related benefits, rights, 20
responsibilities, and liabilities. Within thirty (30) days of the date of any 21
transfer of credits pursuant to this subsection, the nonprofit entity shall notify 22
the authority and the Department of Revenue of: 23
1. The name, address, and Social Security number or employer 24
identification number, as may be applicable, of the party to which the 25
nonprofit entity transferred its credits; 26
2. The amount of credits transferred; and 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 3 of 18
SB024910.100 - 2190 - XXXX GA
3. Any additional information the authority or the Department of Revenue 1
deems necessary. 2
(b) If an investor is an entity and is a party to a merger, acquisition, consolidation, 3
dissolution, liquidation, or similar corporate reorganization, the tax credits 4
shall pass through to the investor's successor. 5
(c) If an individual investor dies, the tax credits shall pass to the investor's estate 6
or beneficiaries in a manner consistent with the transfer of ownership of the 7
investor's interest in the investment fund. 8
(6) The tax credit amount that may be claimed by an investor shall reflect only the 9
investor's participation in qualified investments properly reported to the authority by 10
the investment fund manager. No tax credit authorized by this section shall become 11
effective until the Department of Revenue receives notification from the authority 12
that includes: 13
(a) A statement that a qualified investment has been made that is in compliance 14
with KRS 154.20-250 to 154.20-284 and all applicable regulations; and 15
(b) A list of each investor in the investment fund that owns a portion of the small 16
business in which a qualified investment has been made by virtue of an 17
investment in the investment fund, and each investor's amount of credit 18
granted to the investor for each qualified investment. 19
The authority shall, within sixty (60) days of approval of credits, notify the 20
Department of Revenue of the information required pursuant to this subsection and 21
notify each investor of the amount of credits granted to that investor, and the year 22
the credits may first be claimed. 23
(7) After the date on which investors in an investment fund have cumulatively received 24
an amount of credits equal to the amount of credits allocated to the investment fund 25
by the authority, no investor shall receive additional credits by virtue of its 26
investment in that investment fund unless the investment fund's allocation of credits 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 4 of 18
SB024910.100 - 2190 - XXXX GA
is increased by the authority pursuant to an amended application. 1
Section 2. KRS 65.7047 is amended to read as follows: 2
(1) Any city or county may establish a local development area pursuant to this section, 3
subject to the following conditions: 4
(a) A local development area shall be on previously undeveloped land; 5
(b) No more than one thousand (1,000) acres shall be approved for a local 6
development area in any twelve (12) month period in any county; 7
(c) The establishment or expansion of the local development area shall not cause 8
the assessed value of taxable real property within all local development areas 9
and development areas of the city or county establishing the local 10
development area to exceed twenty percent (20%) of the assessed value of all 11
taxable real property within its jurisdiction. For the purpose of determining 12
whether the twenty percent (20%) threshold has been met, the assessed value 13
of taxable real property within all of the local development areas and 14
development areas shall be valued as of the establishment date; and 15
(d) Unless the ordinance establishing a local development area requires an earlier 16
termination date, a local development area shall cease to exist on the 17
termination date. 18
(2) A city or county shall take the following steps to establish or modify a local 19
development area: 20
(a) If the city or county intends to pledge occupational license taxes or the 21
occupational license fee permitted by KRS 65.7056 as part of the local tax 22
revenues to support the local development area, the city or county may[shall 23
]engage or contract for the services of a qualified independent outside 24
consultant or financial adviser to analyze the data related to the project and the 25
development area and prepare a report. The report shall include the following: 26
1. The estimated approved public infrastructure costs for the project [and, 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 5 of 18
SB024910.100 - 2190 - XXXX GA
if relevant, project costs, financing costs, and costs associated with land 1
preparation, demolition, and clearance]; 2
2. The feasibility of the project, taking into account the scope and location 3
of the project; 4
3. The estimated amount of local tax revenues, as applicable, that would be 5
generated by the project over the period, which may be up to forty (40) 6
years, as applicable, from the development area's established date; 7
4. The estimated amount of local tax revenues, as applicable, that would be 8
displaced within the city or county, for the purpose of quantifying 9
economic activity which is being shifted over the same period as that set 10
forth in subparagraph 3. of this paragraph. The projections for displaced 11
activity shall include economic activity that is lost to the local 12
jurisdiction as a result of the project, as well as economic activity that is 13
diverted to the project that formerly took place at existing establishments 14
within the local jurisdiction prior to the commencement date of the 15
project; 16
5. The estimated amount of old revenues that would have been generated 17
in the development area of the project in the absence of the project, 18
computed over the same time period as set forth in subparagraph 3. of 19
this paragraph; 20
6. In the process of estimating the revenues and impacts prescribed in 21
subparagraphs 3. and 4. of this paragraph, the independent outside 22
consultant shall not consider any of the following: 23
a. Local tax revenues or economic impacts associated with any 24
projects within the development area where the new project will be 25
located; or 26
b. Local tax revenues or economic impacts associated with economic 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 6 of 18
SB024910.100 - 2190 - XXXX GA
development projects and approved Kentucky Tourism 1
Development Act projects under KRS Chapter 148; 2
7. The relationship of the estimated incremental revenues to the financing 3
needs, including any increment bonds, of the project; 4
8. When estimating the fiscal impact of the project, the consultant shall 5
evaluate the amount of revenue estimated in subparagraph 3. of this 6
paragraph and shall deduct the amounts estimated in subparagraphs 4. 7
and 5. of this paragraph. The resulting difference shall be compared to 8
the estimated incremental revenues to determine the presence or absence 9
of a positive fiscal impact; and 10
9. A determination that the project will not occur if not for the designation 11
of the development area, the granting of incremental revenues by the 12
taxing district or districts, and the granting of the local tax incremental 13
revenues. 14
(b) The city or county shall hold a public hearing to solicit input from the public 15
regarding the local development area. The city or county shall advertise the 16
hearing by causing to be published, in accordance with KRS 424.130, notice 17
of the time, place, and purpose of the hearing and a general description of the 18
boundaries of the proposed local development area. The notice shall include a 19
summary of the projects proposed for the local development area; 20
(c) After the public hearing, the city or county shall adopt an ordinance which 21
shall include the following provisions: 22
1. A description of the boundaries of the local development area; 23
2. The establishment date and the termination date; 24
3. A name for the local development area for identification purposes; 25
4. Approval of any agreements relating to the local development area; 26
5. A provision establishing a special fund for the local development area or 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 7 of 18
SB024910.100 - 2190 - XXXX GA
any project within the local development area; 1
6. A requirement that any entity other than the governing body that 2
receives financial assistance under the local development area ordinance, 3
whether in the form of a grant, loan, or loan guarantee, shall make 4
periodic accounting to the governing body; 5
7. A provision for periodic analysis and review by the governing body of 6
the development activity in the local development area; 7
8. Designation of the agency or agencies responsible for oversight, 8
administration, and implementation of the local development ordinance; 9
9. If applicable, the estimated net positive fiscal impact as calculated in 10
paragraph (a)8. of this subsection in the [required ]independent 11
consultant report; and 12
10. Any other provisions, findings, limitations, rules, or procedures 13
regarding the proposed local development area or a project within the 14
local development area and its establishment or maintenance deemed 15
necessary by the city or county;[ and] 16
(d) If incremental revenues or other resources are to be pledged from taxing 17
districts other than the city or county establishing the local development area, 18
a local development area agreement shall be executed in accordance with the 19
provisions of subsection (4) of this section; 20
(e) If the city or county elects to use an independent consultant or financial 21
advisor, as set forth in paragraph (a) of this subsection, the independent 22
consultant or financial advisor shall: 23
1. Consult with the city's or county's budget office in the development of 24
the report; and 25
2. Collaborate with the city's or county's budget office, and agree on a 26
methodology to be used and assumptions to be made in preparing its 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 8 of 18
SB024910.100 - 2190 - XXXX GA
report; and 1
(f) The developer requesting the city or county to establish the local 2
development area shall pay all costs associated with the independent 3
consultant's or financial advisor's report. 4
(3) Funding for projects in a local development area shall be provided in accordance 5
with KRS 65.7057. 6
(4) A local development area agreement shall be executed among the agencies and 7
taxing districts involved in administering, providing financing, or pledging 8
incremental revenues within the local development area. The local development 9
area agreement shall be adopted by a city or county by ordinance and by any other 10
taxing district or agency by resolution, and shall include but not be limited to the 11
following provisions: 12
(a) Identification of the parties to the local development area agreement and the 13
duties and responsibilities of each entity under the agreement; 14
(b) Specific identification of the tax increments released or pledged by type of tax 15
by each taxing district; 16
(c) The anticipated benefit to be received by each taxing district for the release or 17
pledge, including: 18
1. A detailed summary of old revenues collected and projected new 19
revenues for each taxing district on an annual basis for the term of the 20
local development area agreement; and 21
2. The maximum amount of incremental revenue to be paid by each taxing 22
district and the maximum number of years the payment will be effective; 23
(d) A detailed description of the local development area; 24
(e) A description of each proposed project, including an estimate of the costs of 25
construction, acquisition, and development; 26
(f) A requirement that pledged incremental revenues will be deposited in a 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 9 of 18
SB024910.100 - 2190 - XXXX GA
special fund pursuant to KRS 65.7061, including the timing and procedure for 1
depositing incremental revenues and other pledged amounts into the special 2
fund; 3
(g) Terms of default and remedies, provided that no remedy shall permit the 4
withholding by any party to the local development area agreement of any 5
incremental revenues pledged to the special fund if increment bonds are 6
outstanding that are secured by a pledge of those incremental revenues; 7
(h) The commencement date, activation date, and termination date; and 8
(i) Any other provisions not inconsistent with KRS 65.7041 to 65.7083 deemed 9
necessary or appropriate by the parties to the agreement. 10
(5) Any pledge of incremental revenues in a local development area agreement shall be 11
superior to any other pledge of revenues for any other purpose and shall, from the 12
activation date to the termination date set forth in the local area development 13
agreement, supersede any statute, ordinance, or resolution regarding the application 14
or use of incremental revenues. No ordinance in conflict with a local development 15
area agreement shall be adopted while any increment bonds secured by that pledge 16
remain outstanding. Ordinances or resolutions pledging incremental revenues on a 17
subordinate basis to any existing pledges may be adopted. 18
Section 3. KRS 65.7049 is amended to read as follows: 19
Any city or county may establish a development area pursuant to this section, KRS 20
65.7051, and 65.7053 to encourage investment and reinvestment in and development, use, 21
and reuse of areas of the city or county under the following conditions: 22
(1) The area shall be contiguous and shall be no more than three (3) square miles; 23
(2) The establishment or expansion of the development area shall not cause the 24
assessed value of taxable real property within all development areas and local 25
development areas of the city or county establishing the development area to exceed 26
twenty percent (20%) of the assessed value of all taxable real property within its 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 10 of 18
SB024910.100 - 2190 - XXXX GA
jurisdiction. For the purpose of determining whether the twenty percent (20%) 1
threshold has been met, the assessed value of taxable real property within all of the 2
development areas and local development areas shall be valued as of the 3
establishment date; 4
(3) The governing body of the city or county shall determine that the development area 5
either: 6
(a) Has two (2) or more of the following conditions: 7
1. Substantial loss of residential, commercial, or industrial activity or use; 8
2. Forty percent (40%) or more of the households are low-income 9
households; 10
3. More than fifty percent (50%) of residential, commercial, or industrial 11
structures are deteriorating or deteriorated; 12
4. Substantial abandonment of residential, commercial, or industrial 13
structures; 14
5. Substantial presence of environmentally contaminated land; 15
6. Inadequate public improvements or substantial deterioration in public 16
infrastructure; or 17
7. Any combination of factors that substantially impairs or arrests the 18
growth and economic development of the city or county; impedes the 19
provision of adequate housing; impedes the development of commercial 20
or industrial property; or adversely affects public health, safety, or 21
general welfare due to the development area's present condition and use; 22
or 23
(b) The project meets the requirements of KRS 65.7043(2)(a)1.b.; and 24
(4) The governing body of the city or county shall find that all of the following are true 25
for projects meeting the requirements of paragraph (a) of subsection (3) of this 26
section: 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 11 of 18
SB024910.100 - 2190 - XXXX GA
(a) That the development area is not reasonably expected to be developed without 1
public assistance. This finding shall be supported by specific reasons and 2
supporting facts, including a clear demonstration of the financial need for 3
public assistance; and 4
(b) That the public benefits of the development area justify the public costs 5
proposed. This finding shall be supported by specific data and figures 6
demonstrating that the projected benefits outweigh the anticipated costs and 7
shall take into account the positive and negative effects of investment in the 8
development on existing businesses and residents within the community as a 9
whole; and 10
(c) 1. That the area immediately surrounding the development area has not 11
been subject to growth and development through investment by private 12
enterprise; or 13
2. If the area immediately surrounding the development area has been 14
subject to growth and development through investment by private 15
enterprise, the identification of special circumstances within the 16
development area that would prevent its development without public 17
assistance. 18
(5) If the city or county intends to apply for either the Signature Projects Program as 19
set forth in KRS 154.30-050 or the Commonwealth Participation Program for 20
Mixed-use Redevelopment in Blighted Areas set forth in KRS 154.30-060, the city 21
or county shall engage or contract for the services of a qualified independent 22
outside consultant or financial advisor to analyze the data related to the project 23
and the development area and prepare a report which shall include: 24
(a) The estimated approved public infrastructure costs for the project, and if 25
applicable, project costs, financing costs, and costs associated with land 26
preparation, development, and clearance; 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 12 of 18
SB024910.100 - 2190 - XXXX GA
(b) The feasibility of the project, taking into account the scope and location of 1
the project; 2
(c) The estimated amount of local tax revenues, as applicable, that would be 3
generated by the project over the period, which may be up to forty (40) 4
years, as applicable, from the development area's established date; 5
(d) The estimated amount of local tax revenues that would be displaced within 6
the city or county, for the purpose of quantifying economic activity which is 7
being shifted over the same period as set forth in paragraph (c) of this 8
subsection. The projections for displaced activity shall include economic 9
activity that is diverted to the project that formerly took place at existing 10
establishments within the local jurisdiction prior to the commencement date 11
of the project; 12
(e) The estimated amount of old revenues that would have been generated in 13
the development area of the project in the absence of the project, computed 14
over the same time period in accordance with paragraph (c) of this 15
subsection; 16
(f) In the process of estimating the revenues and impacts prescribed in 17
paragraphs (c) and (d) of this subsection, the independent outside 18
consultant shall not consider: 19
1. Local tax revenues or economic impacts associated with any projects 20
within the development where the new project will be located; or 21
2. Local tax revenues or economic impacts associated with economic 22
development projects and approved Kentucky Tourism Development 23
Act projects under KRS Chapter 148; 24
(g) The relationship of the estimated incremental revenues to the financing 25
needs, including any increment bonds, of the project; 26
(h) When estimating the fiscal impact of the project, the consultant shall 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 13 of 18
SB024910.100 - 2190 - XXXX GA
evaluate the amount of revenue estimated in paragraph (c) of this 1
subsection and shall deduct the amounts estimated in paragraphs (d) and 2
(e) of this subsection. The result shall be compared to the estimated 3
incremental revenues to determine the presence or absence of a positive 4
fiscal impact; and 5
(i) A determination that the project will not occur if not for the designation of 6
the development area, the granting of incremental revenues by the taxing 7
district or districts, and the granting of the local tax incremental revenues. 8
(6) If the city or county intends to pledge occupational license taxes or the 9
occupational license fee permitted under KRS 65.7056 as part of the local tax 10
revenues to support the local development area, the city or county may engage or 11
contract for the services of a qualified independent outside consultant or 12
financial advisor to analyze the data related to the project and the development 13
area and prepare a report. The report shall include: 14
(a) The estimated approved public infrastructure costs for the project; 15
(b) The feasibility of the project, taking into account the scope and location of 16
the project; 17
(c) The estimated amount of local tax revenues, as applicable, that would be 18
generated by the project over the period, which may be up to forty (40) years 19
from the development area's established date; 20
(d) The estimated amount of local tax revenues that would be displaced within 21
the city or county, for the purpose of quantifying economic activity which is 22
being shifted over the same period as set forth in paragraph (c) of this 23
subsection. The projections for displaced activity shall include economic 24
activity that is diverted to the project that formerly took place at existing 25
establishments within the local jurisdiction prior to the commencement date 26
of the project; 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 14 of 18
SB024910.100 - 2190 - XXXX GA
(e) The estimated amount of old revenues that would have been generated in 1
the development area of the project in the absence of the project, computed 2
over the same time period as set forth in paragraph (c) of this subsection; 3
(f) In the process of estimating the revenues and impacts prescribed in 4
paragraphs (c) and (d) of this subsection, the independent outside 5
consultant shall not consider: 6
1. Local tax revenues or economic impacts associated with any projects 7
within the development where the new project will be located; or 8
2. Local tax revenues or economic impacts associated with economic 9
development projects and approved Kentucky Tourism Development 10
Act projects under KRS Chapter 148; 11
(g) The relationship of the estimated incremental revenues to the financing 12
needs, including any increment bonds, of the project; 13
(h) When estimating the fiscal impact of the project, the consultant shall 14
evaluate the amount of revenue estimated in paragraph (c) of this 15
subsection and shall deduct the amounts estimated in paragraphs (d) and 16
(e) of this subsection. The resulting difference shall be compared to the 17
estimated incremental revenues to determine the presence or absence of a 18
positive fiscal impact; and 19
(i) A determination that the project will not occur if not for the designation of 20
the development area, the granting of incremental revenues by the taxing 21
district or districts, and the granting of the local tax incremental revenues. 22
(7) If the city or county uses an independent consultant or financial advisor, as set 23
forth in subsection (5) or (6) of this section, the independent consultant or 24
financial adviser shall: 25
(a) Consult with the city's or county's budget office in the development of the 26
report; 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 15 of 18
SB024910.100 - 2190 - XXXX GA
(b) Collaborate with the city's or county's budget office to determine 1
methodology to be used and assumptions to be made in preparing its report, 2
and all costs associated shall be paid by the developer requesting the city or 3
county to establish the local development area; and 4
(d) Assist with the analysis performed in accordance with KRS 154.30-030 if 5
the city or county is applying for the Signature Projects Program as set 6
forth in KRS 154.30-050 or the Commonwealth Participation Program for 7
Mixed-use Redevelopment in Blighted Areas set forth in KRS 154.30-060. 8
Section 4. KRS 65.7053 is amended to read as follows: 9
(1) An ordinance establishing a development area shall include the following 10
provisions: 11
(a) A legal description of the boundaries of the development area, and geographic 12
reference points; 13
(b) The establishment date; 14
(c) The termination date, including a provision that allows the termination date to 15
be extended as provided in KRS 65.7045(35); 16
(d) A name for the development area for identification purposes; 17
(e) A finding that the conditions in the development area meet the criteria 18
described in KRS 65.7049; 19
(f) A finding supporting the need to employ redevelopment assistance in the 20
development area; 21
(g) A provision adopting the development plan required by KRS 65.7051(1); 22
(h) Approval of any agreements relating to the development area, including any 23
local participation agreements; 24
(i) A provision establishing a special fund for the development area or any 25
project within the development area; 26
(j) A requirement that any entity other than the governing body that receives 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 16 of 18
SB024910.100 - 2190 - XXXX GA
financial assistance under the development area ordinance, whether in the 1
form of a grant, loan, or loan guarantee, shall make periodic accounting to the 2
governing body; 3
(k) A provision for periodic analysis and review by the governing body of the 4
development activity in the development area, a review of the progress in 5
meeting the stated goals of the development area, and a requirement that the 6
review and analysis be forwarded to the authority if the development activity 7
includes projects subject to a tax incentive agreement; 8
(l) Designation of the agency or agencies responsible for oversight, 9
administration, and implementation of the development ordinance;[ and] 10
(m) If applicable, the estimated net positive fiscal impact as calculated in 11
subsection (5) or (6) of this section in the independent consultant's report; 12
and 13
(n) Any other provisions, findings, limitations, rules, or procedures regarding the 14
proposed development area or a project within the development area and its 15
establishment or maintenance deemed necessary by the city or county. 16
(2) An ordinance establishing a development area may designate an existing agency to 17
oversee and administer implementation of a development area ordinance or a 18
portion thereof. 19
(3) Unless the ordinance establishing a development area requires an earlier date, a 20
development area shall cease to exist on the termination date. 21
Section 5. KRS 154.20-410 is amended to read as follows: 22
On July 1, 2022, the Kentucky alternative fuel and renewable energy fund shall cease 23
making any further investments and shall be suspended. All funds, grants, 24
investments, unallocated or unencumbered balances, rights, contractual rights and 25
obligations, and earned income retained by the Kentucky alternative fuel and 26
renewable energy fund as of June 30, 2022, shall be transferred to the Kentucky 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 17 of 18
SB024910.100 - 2190 - XXXX GA
enterprise fund and allocated and invested pursuant to the Kentucky enterprise fund's 1
statutory mandate as provided in Section 6 of this Act and KRS 164.6021. To the extent 2
any costs are incurred in the transfer of such interests, those costs may be paid from 3
the funds or from the general fund appropriation to the cabinet, as determined by the 4
cabinet. 5
[(1) There is created in the State Treasury the "Kentucky alternative fuel and renewable 6
energy fund" for the purpose of enabling Kentucky-based companies to undertake 7
research and development and commercialization in the area of alternative fuels or 8
renewable energy. 9
(2) The fund may receive state appropriations, gifts, grants, federal funds, revolving 10
funds, and any other funds both public and private. Moneys deposited in the fund 11
shall be disbursed by the State Treasurer upon the warrant of the secretary of the 12
Finance and Administration Cabinet. Any unallocated or unencumbered balances in 13
the fund shall be invested as provided in KRS 42.500(9). 14
(3) Notwithstanding KRS 45.229, any income earned from the investments along with 15
the unallotted or unencumbered balances in the fund shall not lapse, and shall be 16
deemed a trust and agency account and made available solely for the purposes and 17
benefits of the Kentucky Alternative Fuel and Renewable Energy Fund Program.] 18
Section 6. KRS 164.6019 is amended to read as follows: 19
(1) There is established and created a trust and agency account entitled the "Kentucky 20
enterprise fund" for the purpose of enabling small or medium-size, Kentucky-based 21
companies to undertake feasibility, concept development, research and 22
development, or commercialization work. 23
(2) The Kentucky enterprise fund may receive moneys from any public or private 24
source, including but not limited to general fund appropriations of the 25
Commonwealth, grants, or contributions of money, property, labor, or other things 26
of value to be used to carry out the fund's operations, functions, and responsibilities, 27 UNOFFICIAL COPY 22 RS SB 249/GA
Page 18 of 18
SB024910.100 - 2190 - XXXX GA
and to otherwise make investments. 1
(3) The Kentucky enterprise fund shall also receive moneys transferred from the 2
Kentucky rural innovation fund under KRS 164.6027, [and ]the Kentucky 3
commercialization fund under KRS 164.6035, and the Kentucky alternative fuel 4
and renewable energy fund under KRS Section 5 of this Act. 5
(4) Any unallocated or unencumbered balances in the fund shall be invested as 6
provided in KRS 42.500(9), and any income earned from the investments along 7
with the unallotted or unencumbered balances in the fund shall not lapse, and shall 8
be made available solely for the purposes and benefits of the Kentucky enterprise 9
fund. 10
Section 7. The following KRS section is repealed: 154.20-405 Powers of 11
cabinet under KRS 154.20-400 to 154.20-400 12
Section 8. Whereas the elimination of the Kentucky alternative fuel and 13
renewable energy fund is required to be accomplished on the first day of a fiscal year, an 14
emergency is declared to exist, and this Act takes effect upon its passage and approval by 15
the Governor or upon its otherwise becoming a law. 16