Kentucky Senate Bill SB48

Kentucky 2022 Regular Session

• Introduced: 1/6/22
• Refer: 1/6/22
• Refer: 1/10/22
• Report Pass: 1/12/22
• Engrossed: 2/23/22
• Refer: 2/23/22

Caption

AN ACT relating to recovery of prior appropriations.

Impact

The enactment of SB48 would directly impact the financial operations related to state appropriations, particularly emphasizing accountability for the utilization of allocated funds. This measure reflects a push towards ensuring that state funds are effectively utilized and that commitments for economic development are honored. By enforcing the recovery of unutilized funds, the bill seeks to reallocate resources towards more productive uses, potentially aiding future economic initiatives.

Summary

SB48 is an act relating to the recovery of prior appropriations, specifically targeting a $15,000,000 allocation originally appropriated to the Cabinet for Economic Development in the 2017 legislative session. The bill mandates that Commonwealth Seed Capital, LLC recover these funds, including any interest, fees, or penalties outlined in agreements with benefiting entities. This recovery needs to be completed by December 31, 2022, or the Cabinet for Economic Development must initiate litigation to enforce this recovery. The funds are intended to be deposited into the Budget Reserve Trust Fund, which could bolster state financial resilience.

Sentiment

Discussions around SB48 likely reflect a pragmatic approach towards fiscal responsibility and state funding management. The general sentiment appears to align with a proactive stance on ensuring that state investments yield the intended benefits. Lawmakers supporting the bill could argue that the recovery process emphasizes accountability and sound financial strategy, while those opposed may express concerns about the implications for public-private partnerships and future investments due to stringent recovery demands.

Contention

While there is a consensus on the importance of recovering unutilized funds, contention may arise regarding the mechanisms for enforcement and the impacts of litigation if recovery isn't achieved by the set deadline. Critics may argue that aggressive recovery actions could deter potential private investments in economic development initiatives in Kentucky. The debate could also highlight the balance between state oversight and fostering a cooperative environment for business and investment opportunities.