UNOFFICIAL COPY 23 RS HB 257/GA
Page 1 of 9
HB025710.100 - 1195 - XXXX 3/2/2023 2:43 PM GA
AN ACT relating to donations made to the Commonwealth, making an 1
appropriation therefor, and declaring an emergency. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
SECTION 1. A NEW SECTION OF KRS CHAPTER 45 IS CREATED TO 4
READ AS FOLLOWS: 5
(1) As used in this section: 6
(a) "Cabinet" means the Public Protection Cabinet; 7
(b) "Costs or fee for administrative purposes" means any expenditure that is 8
not: 9
1. Direct aid to a Kentucky resident or a small business; or 10
2. A processing fee imposed by a merchant bank or credit card company; 11
(c) "Qualified nonprofit organization" means a tax exempt entity under 26 12
U.S.C. sec. 501(c)(3) or (4) that: 13
1. Agrees to use all grants of moneys from the Kentucky contribution 14
trust fund established in subsection (2) of this section to serve 15
Kentucky residents directly impacted by the tornadoes or flooding; and 16
2. Provides: 17
a. Food; 18
b. Clothing; 19
c. Shelter; 20
d. Utilities; 21
e. Medical expenses; 22
f. Household needs; 23
g. Other necessities of life; or 24
h. Long-term financial or rebuilding assistance; and 25
(d) "Small business" means any business entity organized for profit, including 26
a sole proprietorship, partnership, limited partnership, corporation, limited 27 UNOFFICIAL COPY 23 RS HB 257/GA
Page 2 of 9
HB025710.100 - 1195 - XXXX 3/2/2023 2:43 PM GA
liability company, joint venture, association, or cooperative that: 1
1. Had fifty (50) or fewer full-time employees on December 9, 2021; 2
2. Is not an affiliate or subsidiary of a larger corporate structure, unless 3
the total number of employees of all the affiliates and subsidiaries 4
within that structure is fifty (50) or fewer; 5
3. Had at least one (1) business location in an area named in the 6
Presidential Declaration of a Major Disaster, designated FEMA-4630-7
DR-KY on December 9, 2021, or the Presidential Declaration of a 8
Major Disaster, designated FEMA-4663-DR-KY on July 26, 2022; 9
4. a. Sustained damage to a business location described in 10
subparagraph 3. of this paragraph; or 11
b. Experienced business interruption as a result of the severe 12
weather events of December 10 and 11, 2021, or from July 26 to 13
August 11, 2022; 14
5. a. Agrees to use the grant of moneys for a business location 15
described in subparagraph 3. of this paragraph; and 16
b. Uses the grant of moneys to maintain business operations or 17
repair or rebuild that business location; 18
6. Is presently in operation or will be in operation; and 19
7. Is in good standing with the Kentucky Department of Revenue and the 20
Kentucky Secretary of State. 21
(2) The Kentucky contribution trust fund is established as a trust and agency account 22
in the State Treasury and shall be administered by the cabinet. 23
(3) The fund shall consist of all moneys: 24
(a) Solicited by any: 25
1. Person within the Governor's General Cabinet described in KRS 26
11.060 or employee thereof, within his or her official capacity; 27 UNOFFICIAL COPY 23 RS HB 257/GA
Page 3 of 9
HB025710.100 - 1195 - XXXX 3/2/2023 2:43 PM GA
2. Member of the General Assembly or employee of the Legislative 1
Research Commission, within his or her official capacity; or 2
3. Member of the Court of Justice defined in KRS 45.237 or employee 3
thereof, within his or her official capacity; 4
(b) Donated to or held by the Commonwealth, including but not limited to any 5
moneys associated with the: 6
1. Team Kentucky fund established by the Governor; 7
2. Team western Kentucky tornado relief fund established by the 8
Governor following the December 2021 storms and tornadoes that 9
occurred in the western Kentucky region; and 10
3. Team eastern Kentucky flood relief fund established by the Governor 11
following the July 2022 storms and flooding that occurred in the 12
eastern Kentucky region; and 13
(c) Not required by statute to be deposited in another fund. 14
(4) (a) Moneys deposited in the fund shall be accounted for separately based on the 15
purpose for which the moneys were solicited. 16
(b) When moneys are deposited from the funds described in subsection (3)(b) of 17
this section, the moneys hereby are appropriated for the purposes provided 18
in this section. 19
(c) All other moneys shall be maintained in the fund until appropriated by the 20
General Assembly. 21
(d) All recipients of a grant of moneys from this fund shall certify that they are 22
in compliance with the requirements of this section prior to receiving any 23
moneys. 24
(e) Applications providing fraudulent information shall be referred by the 25
Public Protection Cabinet to the Office of Attorney General, Office of 26
Special Prosecutions. 27 UNOFFICIAL COPY 23 RS HB 257/GA
Page 4 of 9
HB025710.100 - 1195 - XXXX 3/2/2023 2:43 PM GA
(5) Notwithstanding KRS 45.229, fund amounts not appropriated at the close of a 1
fiscal year shall not lapse but shall be carried forward into the next fiscal year. 2
(6) The cabinet shall: 3
(a) Develop a process to review and accept or deny applications for grants of 4
moneys from the fund based on eligibility requirements under this section 5
for each type of solicited donation; 6
(b) 1. Prepare warrants on the State Treasury for any grant of moneys 7
approved by the cabinet, including a direct payment for funeral 8
expenses; 9
2. Coordinate the direct payment for funeral expenses; and 10
3. Obtain all necessary information from the Kentucky Office of Vital 11
Statistics, coroners, or other appropriate entities to verify eligibility for 12
any direct payment for funeral expenses; 13
(c) Ensure delivery of the moneys to the applicant or the direct payment for 14
funeral expenses; and 15
(d) Promulgate administrative regulations to provide application forms, 16
application deadlines, and other administrative procedures necessary to 17
fulfill the duties required by this section. 18
(7) Related to the team western Kentucky tornado relief donations: 19
(a) Moneys solicited shall be used to assist an individual or a small business 20
directly impacted by the storms and tornadoes on December 10 and 11, 21
2021; 22
(b) An eligible applicant for a grant of moneys from the fund shall be a: 23
1. Person who is responsible for the payment of funeral expenses for 24
another individual whose death was directly related to the storms and 25
tornadoes and any grant issued shall be a direct payment to the entity 26
providing the funeral services in an amount not to exceed ten 27 UNOFFICIAL COPY 23 RS HB 257/GA
Page 5 of 9
HB025710.100 - 1195 - XXXX 3/2/2023 2:43 PM GA
thousand dollars ($10,000); 1
2. Kentucky resident who: 2
a. Resides in an area named in the Presidential Declaration of a 3
Major Disaster, designated FEMA-4630-DR-KY; and 4
b. Was directly impacted by the storms and tornadoes; 5
3. Qualified nonprofit organization; or 6
4. Small business; and 7
(c) A grant of moneys shall not be issued for any: 8
1. Cost or fee for administrative purposes; 9
2. Expenditure in which the applicant receives benefits from a federal 10
source, including but not limited to payments from the Federal 11
Emergency Management Agency; 12
3. Payment to a nonresident of Kentucky; or 13
4. Payment to a nonprofit organization, other than a qualified nonprofit 14
organization. 15
(8) Related to the team eastern Kentucky flood relief donations: 16
(a) Moneys solicited shall be used to assist an individual or a small business 17
directly impacted by the storms and flooding that began on July 26, 2022, 18
and generated multiple rounds of heavy torrential rain, resulting in 19
flooding, flash flooding, mudslides, and landslides; 20
(b) An eligible applicant for a grant of moneys from the fund shall be: 21
1. Person who is responsible for the payment of funeral expenses for 22
another individual whose death was directly related to the storms and 23
flooding and any grant issued shall be a direct payment to the entity 24
providing the funeral services in an amount not to exceed ten 25
thousand dollars ($10,000); 26
2. A Kentucky resident who: 27 UNOFFICIAL COPY 23 RS HB 257/GA
Page 6 of 9
HB025710.100 - 1195 - XXXX 3/2/2023 2:43 PM GA
a. Resides in an area named in the Presidential Declaration of a 1
Major Disaster, designated FEMA-4663-DR-KY; and 2
b. Was directly impacted by the flooding, mudslides, and landslides; 3
3. A qualified nonprofit organization; or 4
4. Small business; and 5
(c) A grant of moneys shall not be issued for any: 6
1. Cost or fee for administrative purposes; 7
2. Expenditure in which the applicant receives benefits from a federal 8
source, included but not limited to payments from the Federal 9
Emergency Management Agency; 10
3. Payment to a nonresident of Kentucky; or 11
4. Payment to a nonprofit organization, other than a qualified nonprofit 12
organization. 13
(9) (a) Any qualified nonprofit organization or small business that receives a grant 14
of moneys from the fund shall document expenditures made using those 15
moneys. 16
(b) The documentation shall be maintained for at least four (4) years following 17
the distribution of the moneys and shall be subject to inspection during that 18
time by the cabinet. 19
(c) All documents and materials submitted to either the Commonwealth or the 20
cabinet shall be considered a public record subject the Kentucky Open 21
Records Law, KRS 61.870 to 61.884. 22
(10) (a) As used in this subsection, "affiliation" means the relationship between: 23
1. Members of a family, including brothers and sisters of the whole or 24
half blood, spouse, ancestors, and lineal descendants of an individual; 25
2, An individual and a corporation, of which more than fifty percent 26
(50%) in value of the outstanding stock is owned, directly or indirectly, 27 UNOFFICIAL COPY 23 RS HB 257/GA
Page 7 of 9
HB025710.100 - 1195 - XXXX 3/2/2023 2:43 PM GA
by or for that individual; 1
3. An individual and a limited liability company or a partnership, of 2
which more than fifty percent (50%) of the capital interest or profits 3
are owned or controlled, directly or indirectly, by or for that 4
individual; or 5
4. An individual that is a grantor or a beneficiary of a trust and the 6
fiduciary of that trust. 7
(b) The secretary of the Public Protection Cabinet shall report the following 8
information beginning on the tenth day of the first month following the 9
effective date of this Act and on the tenth day of each month thereafter: 10
1. Information related to moneys deposited into the fund, including but 11
not limited to: 12
a. The name of the person, member, or employee soliciting the 13
moneys; 14
b. The purpose of the solicitation; 15
c. The type of entity making the donation, including a business 16
entity, nonprofit or charitable organization, or individual; and 17
d. The state and country of origin of the entity; and 18
2. Information related to expenditures from the fund, including but not 19
limited to: 20
a. The name and address of the person or business entity receiving 21
any moneys from the fund; 22
b. The amount of moneys received; 23
c. The date of issuance of the moneys; 24
d. The method of delivery of the moneys; 25
e. The purpose for which the moneys were granted; and 26
f. A statement regarding the affiliation, if any, between the person, 27 UNOFFICIAL COPY 23 RS HB 257/GA
Page 8 of 9
HB025710.100 - 1195 - XXXX 3/2/2023 2:43 PM GA
member, or employee soliciting the moneys and the person or 1
business entity receiving the moneys. 2
(c) The report required by paragraph (b) of this subsection shall be submitted 3
to the Senate Standing Committee on Appropriations and Revenue and the 4
House Standing Committee on Appropriations and Revenue or the Interim 5
Joint Committee on Appropriations and Revenue. 6
Section 2. KRS 12.270 is amended to read as follows: 7
(1) The secretary of each cabinet shall: 8
(a) Be a member of the Governor's Cabinet and shall serve as the Governor's 9
liaison in carrying out the responsibilities for overall direction and 10
coordination of the departments, boards, and commissions included in the 11
related cabinet; 12
(b) Recommend to the Governor desired reorganization affecting the related 13
cabinet; 14
(c) Advise the Governor on executive actions, legislative matters, and other steps 15
that may be desirable for better program service; 16
(d) Evaluate and pass upon all budget requests originated by the departments, 17
boards, and commissions within the related cabinet; 18
(e) Advise the Governor on the appointment of commissioners and heads of units 19
included in the related cabinet, except for those whose election or selection is 20
otherwise provided for by law. 21
(2) Except as provided by Section 1 of this Act, each secretary is authorized to accept 22
and expend funds from any source, whether public or private, in support of the 23
duties and responsibilities of the related cabinet. 24
(3) Each secretary shall have any and all necessary power and authority, subject to 25
appropriate provisions of the statutes, to create such positions and to employ the 26
necessary personnel in such positions to enable the secretary to perform the 27 UNOFFICIAL COPY 23 RS HB 257/GA
Page 9 of 9
HB025710.100 - 1195 - XXXX 3/2/2023 2:43 PM GA
functions of his or her office. 1
(4) Each secretary shall have exclusive control and direction over the administration of 2
the related cabinet programs as required by law. 3
Section 3. Whereas the rebuilding of Kentucky following the recent storms, 4
tornadoes, and flooding is imperative, an emergency is declared to exist, and this Act 5
takes effect upon its passage and approval by the Governor or upon its otherwise 6
becoming a law. 7