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AN ACT relating to financial assistance and making an appropriation therefor. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 224A IS CREATED TO 3
READ AS FOLLOWS: 4
(1) In furtherance of the goal of making access to potable water and wastewater 5
treatment available to all Kentuckians, the General Assembly finds and declares 6
that governmental agencies should provide to water and wastewater systems the 7
requisite financial resources to: 8
(a) Develop the technical, managerial, and operational expertise needed to 9
properly operate and maintain their drinking water and wastewater systems; 10
(b) Conserve, protect, and maximize the resources needed to offer drinking 11
water and wastewater systems and services; 12
(c) Upgrade drinking water and wastewater systems and services to prevent 13
water loss from degrading infrastructure; and 14
(d) Leverage existing finance with anticipated federal dollars or with other 15
sources as may be available from time to time to create a larger pool of 16
finance for water and wastewater systems to make improvements while 17
keeping customer rates affordable. 18
(2) The Kentucky Infrastructure Authority shall implement a program to assist 19
governmental agencies that provide drinking water and wastewater services with 20
the financial resources for both capital and non-capital expenses, including but 21
not limited to: 22
(a) Developing technical, operational, and maintenance resources and 23
expertise; 24
(b) Improving utility infrastructure planning, repair, maintenance, renovation, 25
and management of plants and assets; 26
(c) Obtaining technical expertise in areas of rate-setting, cost-of-service, and 27 UNOFFICIAL COPY 22 RS BR 2055
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proper utility accounting standards for the utility type; 1
(d) Performing and correcting deficiencies from drinking water, wastewater, 2
and financial audits; 3
(e) Providing finance for financial inadequacies, including debt service 4
coverage through relief or refinance of the drinking water or wastewater 5
system's debt; 6
(f) Payment assistance for other financial inadequacies such as excessive 7
maintenance costs, fines and penalties from past violations, or consultants; 8
and 9
(g) Extending finance for inadequately maintained distribution, collection, or 10
treatment works, including service extensions to unserved or underserved 11
areas and the renovation of treatment works to conserve resources. 12
SECTION 2. A NEW SECTION OF KRS CHAPTER 224A IS CREATED TO 13
READ AS FOLLOWS: 14
(1) The water management assistance fund shall be established in the State Treasury 15
and shall be administered by the authority. 16
(2) The fund shall be a dedicated fund, and all moneys in the fund shall be allocated 17
for and dedicated to providing financial assistance for both capital and non-18
capital expenses for governmental agencies that: 19
(a) Provide public drinking water or wastewater services to ratepayers in the 20
Commonwealth; and 21
(b) Are considered financially at risk. 22
(2) The fund may receive donations and gifts, state and federal appropriations, 23
federal grants or loans, and revenues or proceeds from the sale of bonds or from 24
other financial instruments. The fund may receive proceeds from the authority's 25
revolving fund, as available, and if not contrary to the requirements which 26
establish and govern the management and use of those funds. 27 UNOFFICIAL COPY 22 RS BR 2055
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(3) Moneys in the fund shall not lapse but shall be carried forward to the next fiscal 1
year and used solely for the stated purposes in this section and Section 1 of this 2
Act. 3
Section 3. KRS 91A.040 is amended to read as follows: 4
(1) Except as provided in subsections (2) to (4) of this section, each city shall, after the 5
close of each fiscal year, cause each fund of the city to be audited by the Auditor of 6
Public Accounts or a certified public accountant. The audit shall be completed by 7
February 1 immediately following the fiscal year being audited. The city shall 8
forward an electronic copy of the audit report to the Department for Local 9
Government for information purposes by no later than March 1 immediately 10
following the fiscal year being audited. 11
(2) In lieu of the annual audit requirements in subsection (1) of this section, a city with 12
a population equal to or less than one thousand (1,000) based upon the most recent 13
federal decennial census may elect to have an audit performed every other fiscal 14
year in the following manner: 15
(a) After the close of each odd-numbered fiscal year, the city shall for that odd-16
numbered year cause each fund of the city to be audited by the Auditor of 17
Public Accounts or a certified public accountant. The audits shall be 18
completed by February 1 immediately following the fiscal year to be audited. 19
The city shall forward an electronic copy of the audit report to the Department 20
for Local Government for information purposes by no later than March 1 21
immediately following the fiscal year being audited; and 22
(b) After the close of each even-numbered fiscal year, the city shall not be 23
required to complete an annual audit but shall forward an electronic copy of 24
its financial statement prepared in accordance with KRS 424.220 to the 25
Department for Local Government by no later than October 1 immediately 26
following the close of the even-numbered fiscal year. 27 UNOFFICIAL COPY 22 RS BR 2055
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(3) In lieu of the annual audit requirements in subsection (1) of this section, a city with 1
a population of more than one thousand (1,000) but less than two thousand (2,000) 2
based upon the most recent federal decennial census may elect to have an audit 3
performed every other fiscal year to cover the two (2) fiscal years occurring since 4
the prior audit in the following manner: 5
(a) After the close of each odd-numbered fiscal year, the city shall cause each 6
fund of the city to be audited by the Auditor of Public Accounts or a certified 7
public accountant. The audit shall include both fiscal years since the prior 8
audit and shall be completed by February 1 immediately following the fiscal 9
years to be audited. The city shall forward an electronic copy of the audit 10
report to the Department for Local Government for information purposes by 11
no later than March 1 immediately following the fiscal years being audited; 12
and 13
(b) After the close of each even-numbered fiscal year, the city shall not be 14
required to complete an annual audit but shall forward an electronic copy of 15
its financial statement prepared in accordance with KRS 424.220 to the 16
Department for Local Government by no later than October 1 immediately 17
following the close of the even-numbered fiscal year. 18
(4) Any city, which for any fiscal year receives and expends, from all sources and for 19
all purposes, less than seventy-five thousand dollars ($75,000), and which has no 20
long-term debt, whether general obligation or revenue debt, shall not be required to 21
audit each fund of the city for that particular fiscal year. Each city exempted in 22
accordance with this subsection shall annually prepare a financial statement in 23
accordance with KRS 424.220 and shall, not later than October 1 following the 24
conclusion of the fiscal year, forward one (1) electronic copy to the Department for 25
Local Government for information purposes. 26
(5) If a city is required by another provision of law to audit its funds more frequently or 27 UNOFFICIAL COPY 22 RS BR 2055
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more stringently than is required by this section, the city shall also comply with the 1
provisions of that law. 2
(6) The Department for Local Government shall, upon request, make available 3
electronic copies of the audit reports and financial statements received by it under 4
subsections (1) to (4) of this section to the Legislative Research Commission to be 5
used for the purposes of KRS 6.955 to 6.975 or to the Auditor of Public Accounts. 6
(7) Each city required by this section to conduct an annual or biennial audit shall enter 7
into a written contract with the selected auditor. The contract shall set forth all 8
terms and conditions of the agreement which shall include but not be limited to 9
requirements that: 10
(a) The auditor be employed to examine the basic financial statements, which 11
shall include the government-wide and fund financial statements; 12
(b) The auditor shall include in the annual or biennial city audit report an 13
examination of local government economic assistance funds granted to the 14
city under KRS 42.450 to 42.495. The auditor shall include a certification 15
with the annual or biennial audit report that the funds were expended for the 16
purpose intended; 17
(c) All audit information be prepared in accordance with generally accepted 18
governmental auditing standards which include tests of the accounting records 19
and auditing procedures considered necessary in the circumstances. Where the 20
audit is to cover the use of state or federal funds, appropriate state or federal 21
guidelines shall be utilized; 22
(d) The auditor shall prepare a typewritten or printed report embodying: 23
1. The basic financial statements and accompanying supplemental and 24
required supplemental information; 25
2. The auditor's opinion on the basic financial statements or reasons why 26
an opinion cannot be expressed; and 27 UNOFFICIAL COPY 22 RS BR 2055
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3. Findings required to be reported as a result of the audit; 1
(e) The completed audit and all accompanying documentation shall be presented 2
to the city legislative body at a regular or special meeting; and 3
(f) Any contract with a certified public accountant for an audit shall require the 4
accountant to forward a copy of the audit report and management letters to the 5
Auditor of Public Accounts upon request of the city or the Auditor of Public 6
Accounts, and the Auditor of Public Accounts shall have the right to review 7
the certified public accountant's work papers upon request. 8
(8) A copy of an audit report which meets the requirements of this section shall be 9
considered satisfactory and final in meeting any official request to a city for 10
financial data, except for statutory or judicial requirements, or requirements of the 11
Legislative Research Commission necessary to carry out the purposes of KRS 6.955 12
to 6.975. 13
(9) Each city shall, within thirty (30) days after the presentation of an audit to the city 14
legislative body, publish an advertisement in accordance with KRS Chapter 424 15
containing: 16
(a) The auditor's opinion letter; 17
(b) The "Budgetary Comparison Schedules-Major Funds," which shall include the 18
general fund and all major funds; 19
(c) A statement that a copy of the complete audit report, including financial 20
statements and supplemental information, is on file at city hall and is available 21
for public inspection during normal business hours; 22
(d) A statement that any citizen may obtain from city hall a copy of the complete 23
audit report, including financial statements and supplemental information, for 24
his personal use; 25
(e) A statement which notifies citizens requesting a personal copy of the city 26
audit report that they will be charged for duplication costs at a rate that shall 27 UNOFFICIAL COPY 22 RS BR 2055
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not exceed twenty-five cents ($0.25) per page; and 1
(f) A statement that copies of the financial statement prepared in accordance with 2
KRS 424.220, when a financial statement is required by KRS 424.220, are 3
available to the public at no cost at the business address of the officer 4
responsible for preparation of the statement. 5
(10) Any resident of the city or owner of real property within the city may bring an 6
action in the Circuit Court to enforce the provisions of this section. Any person who 7
violates any provision of this section shall be fined not less than fifty dollars ($50) 8
nor more than five hundred dollars ($500). In addition, any officer who fails to 9
comply with any of the provisions of this section shall, for each failure, be subject 10
to a forfeiture of not less than fifty dollars ($50) nor more than five hundred dollars 11
($500), in the discretion of the court, which may be recovered only once in a civil 12
action brought by any resident of the city or owner of real property within the city. 13
The costs of all proceedings, including a reasonable fee for the attorney of the 14
resident or property owner bringing the action, shall be assessed against the 15
unsuccessful party. 16
(11) In the event of extenuating circumstances that prevent a city from completing and 17
submitting a required audit or financial statement in compliance with the applicable 18
deadlines in subsections (1) to (4) of this section, the city may submit a written 19
request for an extension of time to the Department for Local Government on a form 20
prescribed by the Department for Local Government. The Department for Local 21
Government shall approve the request if it is submitted on or before the applicable 22
deadline and, in the judgment of the Department for Local Government, the request 23
is warranted by extenuating circumstances beyond the control of the city. 24
Extensions granted under this subsection shall not exceed nine (9) months from the 25
original due date of the audit or financial statement. If the Department for Local 26
Government approves an extension for a city and the city fails to complete and 27 UNOFFICIAL COPY 22 RS BR 2055
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submit the required audit or financial statement in compliance with that extended 1
deadline, then the provisions of subsection (12) of this section shall apply. 2
(12) If a city fails to complete an audit or financial statement and submit it to the 3
Department for Local Government as required in subsections (1) to (4) and (11) of 4
this section, the Department for Local Government shall notify the Finance and 5
Administration Cabinet that the city has failed to comply with the audit 6
requirements of this section, and that any funds in the possession of any agency, 7
entity, or branch of state government may[shall] be withheld from the city until 8
further notice. The Department for Local Government shall immediately notify the 9
Finance and Administration Cabinet when the city complies with the requirements 10
of subsections (1) to (4) and (11) of this section for all prior fiscal years it has failed 11
to comply with the audit requirements of this section, and the Finance and 12
Administration Cabinet shall direct the reinstatement of payments to the city, 13
including any funds that were withheld due to the noncompliance. 14
(13) Within a reasonable time after the completion of a special audit or examination 15
conducted pursuant to KRS 43.050, the Auditor shall bill the city for the actual 16
expense of the audit or examination conducted. The actual expense shall include the 17
hours of work performed on the audit or examination as well as reasonable 18
associated costs, including but not limited to travel costs. The bill submitted to the 19
city shall include a statement of the hourly rate, total hours, and total costs for the 20
entire audit or examination. 21
Section 4. KRS 224A.011 is amended to read as follows: 22
As used in this chapter, unless the context requires otherwise: 23
(1) "Administrative fee" means a fee assessed and collected by the authority from 24
borrowers and applicants under assistance agreements, to be used for operational 25
expenses of the authority; 26
(2) "Applicable interest rate" means the rate of interest which shall be used as part of 27 UNOFFICIAL COPY 22 RS BR 2055
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the repayment criteria for an assistance agreement between a governmental agency 1
and the authority, and shall be determined by the authority pertinent to the source of 2
funds from which the assistance agreement is funded; 3
(3) "Applicant" means a governmental agency or private sector entity that has 4
submitted an application to the authority for a grant from the broadband deployment 5
fund; 6
(4) "Application" means an application submitted by an applicant for a grant from the 7
broadband deployment fund; 8
(5) "Assistance agreement" means the agreement to be made and entered into by and 9
between a governmental agency or a private entity and the authority, as authorized 10
by this chapter, providing for a lease, loan, services, or grant to a governmental 11
agency or a private entity or for the purchase of obligations issued by the 12
governmental agency, and for the repayment thereof to the authority by the 13
governmental agency or a private entity; 14
(6) "Authority" means the Kentucky Infrastructure Authority, which is created by this 15
chapter; 16
(7) "Authority revenues" means the totality of all: 17
(a) Service charges; 18
(b) Utility tax receipts, to the extent not otherwise committed and budgeted by the 19
authority during any fiscal period of the authority; 20
(c) Any gifts, grants, or loans received, to the extent not otherwise required to be 21
applied; 22
(d) Any and all appropriations made to the authority by the General Assembly of 23
the Commonwealth of Kentucky, to the extent not otherwise required to be 24
applied; 25
(e) All moneys received in repayment of and for interest on any loans made by the 26
authority to a governmental agency, except as provided in KRS 224A.111, 27 UNOFFICIAL COPY 22 RS BR 2055
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224A.1115, and 224A.112, or as principal of and interest on any obligations 1
issued by a governmental agency and purchased by the authority, or as receipts 2
under any assistance agreement; 3
(f) The proceeds of bonds or long-term debt obligations of governmental 4
agencies pledged to the payment of bond anticipation notes issued by the 5
authority on behalf of the said governmental agency to provide interim 6
construction financing; and 7
(g) Payments under agreements with any agencies of the state and federal 8
government; 9
(8) "Borrower or borrowing entity" means any agency of the state or its political 10
subdivisions, any city, or any special district created under the laws of the state 11
acting individually or jointly under interagency or interlocal cooperative agreements 12
to enter into assistance agreements with the authority; 13
(9) "Broadband" means any wireline or fixed terrestrial technology having a capacity to 14
transmit data from or to the Internet with a minimum speed of twenty-five (25) 15
megabits per second downstream and three (3) megabits per second upstream as 16
defined by the Federal Communications Commission or the United States 17
Department of Agriculture and any amendments to those definitions. If the agencies 18
use different speed definitions, the faster speed definition shall apply to KRS 19
224A.110, 224A.112, and 224A.1121; 20
(10) "Broadband deployment fund" means a fund to assist with the construction, 21
development, or improvement of broadband infrastructure, broadband services, or 22
technologies that constitute a part of, or are related to, broadband infrastructure or 23
broadband services, to provide for broadband service in underserved or unserved 24
areas of the Commonwealth; 25
(11) "Broadband deployment project" means a proposed deployment of broadband 26
service infrastructure set forth in an application for grant funding under KRS 27 UNOFFICIAL COPY 22 RS BR 2055
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224A.112; 1
(12) "Broadband deployment project area" means a geographic area determined by 2
census block or shapefile geospatial data for which grant funding has been 3
authorized under this section and KRS 224A.110, 224A.112, and 224A.1121; 4
(13) "Census block" means the smallest geographic unit used by the United States 5
Census Bureau that is reported on the Federal Communications Commission (FCC) 6
Form 477 relating to fixed broadband deployment data; 7
(14) "Community flood damage abatement project" means any structural or nonstructural 8
study, plan, design, construction, development, improvement, or other activity to 9
provide for flood control; 10
(15) "Construction" means and includes but is not limited to: 11
(a) Preliminary planning to determine the economic and engineering feasibility of 12
infrastructure projects, the engineering, architectural, legal, fiscal, and 13
economic investigations, and studies necessary thereto, and surveys, designs, 14
plans, working drawings, specifications, procedures, and other actions 15
necessary to the construction of infrastructure or solid waste projects; 16
(b) The erection, building, acquisition, alteration, remodeling, improvement, or 17
extension of infrastructure or solid waste projects; and 18
(c) The inspection and supervision of the construction of infrastructure or solid 19
waste projects and all costs incidental to the acquisition and financing of 20
same. This term shall also relate to and mean any other physical devices or 21
appurtenances in connection with, or reasonably attendant to, infrastructure or 22
solid waste projects; 23
(16) "Dams" means any artificial barrier, including appurtenant works, which does or 24
can impound or divert water, and which either: 25
(a) Is or will be twenty-five (25) feet or more in height from the natural bed of the 26
stream or watercourse at the downstream toe of the barrier, as determined by 27 UNOFFICIAL COPY 22 RS BR 2055
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the Energy and Environment Cabinet; or 1
(b) Has or will have an impounding capacity at maximum water storage elevation 2
of fifty (50) acre feet or more; 3
(17) "Distribution facilities" means all or any part of any facilities, devices, and systems 4
used and useful in obtaining, pumping, storing, treating, and distributing water for 5
agricultural, industrial, commercial, recreational, public, and domestic use; 6
(18) "Energy and Environment Cabinet" means the Kentucky Energy and Environment 7
Cabinet, or its successor, said term being meant to relate specifically to the state 8
agency which is designated as the water pollution agency for the Commonwealth of 9
Kentucky, for purposes of the federal act; 10
(19) "Federal act" means the Federal Clean Water Act (33 U.S.C. secs. 1251 et seq.) as 11
said federal act may be amended from time to time in the future, or any other 12
enactment of the United States Congress providing funds that may assist in carrying 13
out the purposes of the authority; 14
(20) "Federally assisted wastewater revolving fund" means that fund which will receive 15
federal and state funds or the proceeds from the sale of revenue bonds of the 16
authority for the purpose of providing loans to finance construction of publicly 17
owned treatment works as defined in Section 212 of the federal act and for the 18
implementation of a management program established under Section 319 of the 19
federal act and for the development and implementation of a conservation and 20
management plan under Section 320 of the federal act; 21
(21) "Governmental agency" means any incorporated city or municipal corporation, or 22
other agency, or unit of government within or a department or a cabinet of the 23
Commonwealth of Kentucky, now having or hereafter granted, the authority and 24
power to finance, acquire, construct, or operate infrastructure or solid waste 25
projects. This definition shall specifically apply but not by way of limitation to 26
incorporated cities; counties, including any counties containing a metropolitan 27 UNOFFICIAL COPY 22 RS BR 2055
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sewer district; sanitation districts; water districts; water associations[ if these 1
associations are permitted to issue interest-bearing obligations which interest would 2
be excludable from gross income under Section 103 of the Internal Revenue Code 3
of 1986 as amended]; sewer construction districts; metropolitan sewer districts; 4
sanitation taxing districts; a regional wastewater commission established under 5
KRS 65.8901 to 65.8923; and any other agencies, commissions, districts, or 6
authorities (either acting alone, or in combination with one another in accordance 7
with any regional or area compact, or intergovernmental cooperative agreements), 8
now or hereafter established in accordance with the laws of the Commonwealth of 9
Kentucky having and possessing the described powers described in this subsection; 10
(22) "Industrial waste" means any liquid, gaseous, or solid waste substances resulting 11
from any process of industry, manufacture, trade, or business, or from the mining or 12
taking, development, processing, or recovery of any natural resources, including 13
heat and radioactivity, together with any sewage as is present therein, which 14
pollutes the waters of the state, and specifically, but not by way of limitation, means 15
heat or thermal differentials created in the waters of the state by any industrial 16
processing, generating, or manufacturing processes; 17
(23) "Infrastructure project" means any construction or acquisition of treatment works, 18
facilities related to the collection, transportation, and treatment of wastewater as 19
defined in KRS 65.8903, distribution facilities, or water resources projects instituted 20
by a governmental agency or an investor-owned water utility which is approved by 21
the authority and, if required, by the Energy and Environment Cabinet, Public 22
Service Commission, or other agency; solid waste projects; dams; storm water 23
control and treatment systems; gas or electric utility; broadband deployment project; 24
or any other public utility or public service project which the authority finds would 25
assist in carrying out the purposes set out in KRS 224A.300; 26
(24) "Infrastructure revolving fund" means that fund which will receive state funds, the 27 UNOFFICIAL COPY 22 RS BR 2055
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proceeds from the sale of revenue bonds of the authority or other moneys earmarked 1
for that fund for the purpose of providing loans or grants to finance construction or 2
acquisition of infrastructure projects as defined in this section; 3
(25) "Loan or grant" means moneys to be made available to governmental agencies by 4
the authority for the purpose of defraying all or any part of the total costs incidental 5
to construction or acquisition of any infrastructure project; 6
(26) "Market interest rate" means the interest rate determined by the authority under 7
existing market conditions at the time the authority shall provide financial 8
assistance to a governmental agency; 9
(27) "Obligation of a governmental agency" means a revenue bond, bond anticipation 10
note, revenue anticipation note, lease, or other obligation issued by a governmental 11
agency under KRS 58.010 et seq. or other applicable statutes; 12
(28) "Person" means any individual, firm, partnership, association, corporation, or 13
governmental agency; 14
(29) "Pollution" means the placing of any noxious or deleterious substances 15
("pollutants"), including sewage and industrial wastes, in any waters of the state or 16
affecting the properties of any waters of the state in a manner which renders the 17
waters harmful or inimical to the public health or to animal or aquatic life, or to the 18
use, present or future, of these waters for domestic water supply, industrial or 19
agricultural purposes, or recreational purposes; 20
(30) "Prioritization schedules" means the list of wastewater treatment works, distribution 21
facilities and water resources projects which the Energy and Environment Cabinet 22
has evaluated and determined to be of priority for receiving financial assistance 23
from the federally assisted wastewater revolving fund and the federally assisted 24
drinking water revolving fund, or the list of infrastructure projects which the 25
authority has evaluated and determined to be of priority for receiving financial aid 26
from the infrastructure revolving fund. The evaluation by the authority of 27 UNOFFICIAL COPY 22 RS BR 2055
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infrastructure projects for water systems shall be undertaken with input from the 1
appropriate area development district; 2
(31) "Recovered material" means those materials which have known current use, reuse, 3
or recycling potential, which can be feasibly used, reused, or recycled, and which 4
have been diverted or removed from the solid waste stream for sale, use, reuse, or 5
recycling, whether or not requiring subsequent separation and processing but does 6
not include materials diverted or removed for purposes of energy recovery or 7
combustion except refuse-derived fuel (RDF), which shall be credited as a 8
recovered material in an amount equal to that percentage of the municipal solid 9
waste received on a daily basis at the processing facility and processed into RDF; 10
but not to exceed fifteen percent (15%) of the total amount of the municipal solid 11
waste received at the processing facility on a daily basis; 12
(32) "Recovered material processing facility" means a facility engaged solely in the 13
storage, processing, and resale or reuse of recovered material but does not mean a 14
solid waste facility if solid waste generated by a recovered material processing 15
facility is managed in accordance with KRS Chapter 224 and administrative 16
regulations adopted by the cabinet; 17
(33) "Revenue bonds" means special obligation bonds issued by the authority as 18
provided by the provisions of this chapter, which are not direct or general 19
obligations of the state, and which are payable only from a pledge of, and lien upon, 20
authority revenues as provided in the resolution authorizing the issuance of the 21
bonds, and shall include revenue bond anticipation notes; 22
(34) "Service charge" means any monthly, quarterly, semiannual, or annual charge to be 23
imposed by a governmental agency, or by the authority, for any infrastructure 24
project financed by the authority, which service charge arises by reason of the 25
existence of, and requirements of, any assistance agreement; 26
(35) "Sewage" means any of the waste products or excrements, or other discharges from 27 UNOFFICIAL COPY 22 RS BR 2055
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the bodies of human beings or animals, which pollute the waters of the state; 1
(36) "Shapefile" means a file format for storing, depicting, and analyzing geospatial data 2
showing broadband coverage; 3
(37) "Solid waste" means "solid waste" as defined by KRS 224.1-010(30)(a); 4
(38) "Solid waste facility" means any facility for collection, handling, storage, 5
transportation, transfer, processing, treatment, or disposal of solid waste, whether 6
the facility is associated with facilities generating the waste or otherwise, but does 7
not include a container located on property where the waste is generated and which 8
is used solely for the purpose of collection and temporary storage of that solid waste 9
prior to off-site disposal, or a recovered material processing facility; 10
(39) "Solid waste project" means construction, renovation, or acquisition of a solid waste 11
facility which shall be instituted and owned by a governmental agency; 12
(40) "Solid waste revolving fund" means that fund which shall receive state funds, the 13
proceeds from the sale of revenue bonds of the authority, or other moneys 14
earmarked for the purpose of providing loans or grants to finance solid waste 15
projects defined in this section; 16
(41) "State" means the Commonwealth of Kentucky; 17
(42) "System" means the system owned and operated by a governmental agency with 18
respect to solid waste projects, treatment works, or infrastructure projects financed 19
as provided by the assistance agreement between the governmental agency and the 20
authority; 21
(43) "Treatment works" or "wastewater treatment works" means all or any part of any 22
facilities, devices, and systems used and useful in the storage, treatment, recycling, 23
and reclamation of wastewater or the abatement of pollution, including facilities for 24
the treatment, neutralization, disposal of, stabilization, collecting, segregating, or 25
holding of wastewater, including without limiting the generality of the foregoing, 26
intercepting sewers, outfall sewers, pumping power stations, and other equipment 27 UNOFFICIAL COPY 22 RS BR 2055
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and their appurtenances; extensions, improvements, remodeling, additions, and 1
alterations thereof, and any wastewater treatment works, including site acquisition 2
of the land that will be an integral part of the wastewater treatment process, or is 3
used for ultimate disposal of residues resulting from wastewater treatment, together 4
with any other facilities which are deemed to be treatment works in accordance with 5
the federal act; 6
(44) "Underserved area" means any project area where fixed, terrestrial broadband 7
service with a minimum twenty-five (25) megabits per second downstream and 8
three (3) megabits per second upstream is not available; 9
(45) "Unserved area" means any project area where fixed, terrestrial broadband service 10
with a minimum ten (10) megabits per second downstream and one (1) megabit per 11
second upstream is not available; 12
(46) "Utility tax" means the tax which may be imposed by the authority on every 13
purchase of water or sewer service in the Commonwealth of Kentucky; 14
(47) "Variable rate revenue bonds" means revenue bonds the rate of interest on which 15
fluctuates either automatically by reference to a predetermined formula or index or 16
in accordance with the standards set forth in KRS 224A.120; 17
(48) "Wastewater" means any water or liquid substance containing sewage, industrial 18
waste, or other pollutants or contaminants derived from the prior use of these 19
waters; 20
(49) "Water resources" means all waters of the state occurring on the surface, in natural 21
or artificial channels, lakes, reservoirs, or impoundments, and in subsurface 22
aquifers, which are available, or which may be made available to agricultural, 23
industrial, commercial, recreational, public, and domestic users; 24
(50) "Water resources project" means any structural or nonstructural study, plan, design, 25
construction, development, improvement, or any other activity including programs 26
for management, intended to conserve and develop the water resources of the state 27 UNOFFICIAL COPY 22 RS BR 2055
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and shall include all aspects of water supply, facilities to collect, transport, and treat 1
wastewater as defined in KRS 65.8903, flood damage abatement, navigation, water-2
related recreation, and land conservation facilities and measures; and 3
(51) "Waters of the state" means all streams, lakes, watercourses, waterways, ponds, 4
marshes, wells, springs, irrigation systems, drainage systems, and all other bodies or 5
accumulations of water, surface and underground, natural or artificial, which are 6
situated wholly or partly within, or border upon, this state, or are within its 7
jurisdiction, except those private waters which do not combine or effect a junction 8
with natural, surface, or underground waters. 9
Section 5. KRS 224A.035 is amended to read as follows: 10
(1) The Kentucky Infrastructure Authority is created solely to perform essential 11
governmental functions and to serve the public purpose of engaging in a program of 12
assistance to governmental agencies in the state with respect to the: 13
(a) Construction,[ and] acquisition, and maintenance of infrastructure projects; 14
and 15
(b) Technical, managerial, and operational capacity of the agency's public 16
drinking water and wastewater systems. 17
(2) In accomplishing these[such] purposes, the Kentucky Infrastructure Authority shall 18
be and constitute a de jure municipal corporation and political subdivision of the 19
state. 20
Section 6. KRS 224A.040 is amended to read as follows: 21
The authority may, pursuant to the terms, conditions, restrictions and requirements of this 22
chapter, assist with the construction or acquisition of infrastructure projects or with the 23
improvement of the technical, managerial, or operational capacity of public drinking 24
water and wastewater systems by: 25
(1) Leasing[lease] an infrastructure project; or 26
(2) Making[make] loans or grants as funds are available, to any governmental 27 UNOFFICIAL COPY 22 RS BR 2055
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agency;[,] or 1
(3) Purchasing[purchase] obligations of a governmental agency, provided that any 2
financial assistance supplied to the governmental agency, as defined in Section 4 3
of this Act, will not cause the interest on current or future state agency or 4
authority obligations, if excludable from gross income for federal tax purposes, to 5
be included in gross income for federal tax purposes[to assist the governmental 6
agency to carry out the construction or acquisition of infrastructure projects]. 7