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AN ACT relating to the establishment of a grant program to promote investments in 1
Kentucky businesses, making an 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 SUBCHAPTER 20 OF KRS CHAPTER 4
154 IS CREATED TO READ AS FOLLOWS: 5
The General Assembly hereby finds and declares that: 6
(1) Businesses in the rural areas of this state have found it difficult to attract capital 7
necessary to make investments that would stimulate economic development 8
activity and create new jobs for the residents of the rural areas; therefore, a need 9
exists to attract capital to rural areas that promotes the retention and expansion 10
of existing jobs, stimulates the creation of new jobs, attracts new business and 11
industry to the state, stimulates growth in businesses, and fosters job creation in 12
this state; and 13
(2) Through the establishment of a rural growth fund program under Sections 1 to 9 14
of this Act, the Commonwealth will attract capital to stimulate business 15
development in rural areas, retain and attract new business and industry to the 16
rural areas, create high-paying jobs for residents of rural areas, and stimulate 17
growth in businesses in rural areas. 18
SECTION 2. A NEW SECTION OF SUBCHAPTER 20 OF KRS CHAPTER 19
154 IS CREATED TO READ AS FOLLOWS: 20
As used in Sections 1 to 9 of this Act: 21
(1) (a) "Affiliate" means a person or entity that directly, or indirectly through one 22
(1) or more intermediaries, controls, is controlled by, or is under common 23
control with another person or entity. 24
(b) For the purposes of this subsection, an entity is controlled by another entity 25
if the controlling person holds, directly or indirectly, the majority voting or 26
ownership interest in the controlled person or has control over the day-to-27 UNOFFICIAL COPY 23 RS BR 1518
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day operations of the controlled person by contract or by law; 1
(2) "Allocation agreement" means a written agreement between this state and an 2
approved growth fund setting forth the requirements of the cabinet, the 3
Commonwealth, and the growth fund; 4
(3) "Closing date" means the date on which a growth fund has collected all of the 5
amounts specified by subsection (8)(b) of Section 3 of this Act; 6
(4) "Department" means the Department of Revenue; 7
(5) "Growth business" means a business that, at the time of the initial investment in 8
the business by a growth fund: 9
(a) 1. Has fewer than two hundred fifty (250) employees; 10
2. Has its principal business operations in one (1) or more growth zones 11
in this state; and 12
3. a. Is engaged in the industries described in North American 13
Industry Classification System codes 11, 21, 22, 23, 31-33, 48-49, 14
54, or 62; or 15
b. If not engaged in those industries, the cabinet determines that 16
the industry within which the business is engaged will be 17
beneficial to the growth zone and the economic growth of this 18
state; or 19
(b) Has its principal business operations in one (1) or more counties in: 20
1. West Kentucky named in the Presidential Declaration of Emergency 21
related to the storms in December 2021; or 22
2. East Kentucky named in the Presidential Declaration of Emergency 23
related to the flooding in July 2022; 24
(6) "Growth fund" means an entity that: 25
(a) Has applied to the cabinet and received an application determination 26
granting the application under subsection (2) of Section 3 of this Act; and 27 UNOFFICIAL COPY 23 RS BR 1518
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(b) Is licensed, or is an affiliate of an entity that is licensed, as a rural business 1
investment company under 7 U.S.C. sec. 2009cc-3 or as a small business 2
investment company under 15 U.S.C. sec. 681, provided that an affiliate of 3
the entity used to meet this requirement has been an affiliate of the entity 4
for at least four (4) years, and that the entity or affiliate of the entity have at 5
least one (1) principal who is, or has been for at least four (4) years, an 6
employee or officer of the entity or its affiliates; 7
(7) (a) "Growth investment" means any capital or equity investment in a growth 8
business or any loan to a growth business with a stated maturity at least one 9
(1) year after the date of issuance. A secured loan or the provision of a 10
revolving line of credit to a growth business shall only qualify as a rural 11
growth investment if the growth fund obtains an affidavit from an officer of 12
the growth business attesting that the growth business applied for and was 13
denied similar financing from a commercial bank prior to the date of 14
issuance of the secured loan or revolving line of credit. 15
(b) "Growth investment" excludes any amount of any investment or loan which 16
is also designated as an investment under: 17
1. The Kentucky New Markets Development Program, under KRS 18
141.432 to 141.434; 19
2. The Kentucky Angel Investment Act, under KRS 154.20-230 to 20
154.20-240; or 21
3. The Kentucky Investment Fund Act, under KRS 154.20-250 to 154.20-22
284; 23
(8) "Growth zone" means the following geographic areas within this state: 24
(a) A rural county; 25
(b) An underemployment zone; or 26
(c) An opportunity zone; 27 UNOFFICIAL COPY 23 RS BR 1518
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(9) "High wage" means a wage that is at least one hundred percent (100%) of the 1
county average as calculated by the United States Department of Labor, Bureau 2
of Labor Statistics; 3
(10) "Investment authority" means the amount stated on the notice issued under 4
subsection (7) of Section 3 of this Act certifying the growth fund, fifty percent 5
(50%) of which shall be composed of state matching capital; 6
(11) "Jobs retained" means the number of employment positions at a growth business 7
paying a high wage and requiring at least thirty-five (35) hours of work each 8
week, or any other period of time generally accepted by custom, industry, or 9
practice as full-time employment, that existed before the initial growth investment 10
and for which the growth business’s chief executive officer or similar officer 11
certifies that the employment position would have been eliminated but for the 12
initial growth investment. The retained jobs of a growth business shall be 13
calculated each year based on the monthly average of high wage employment 14
positions. The reported number of retained jobs may not exceed the number 15
reported on the initial report under subsection (1) of Section 8 of this Act; 16
(12) "New annual jobs" means the difference between: 17
(a) 1. The monthly average of employment positions at a growth business 18
paying a high wage and requiring at least thirty-five (35) hours of 19
work each week for the preceding calendar year, or any other period 20
of time generally accepted by custom, industry, or practice as full-time 21
employment; or 22
2. If the preceding calendar year contains the initial growth investment, 23
the monthly average of employment positions at a growth business 24
paying a high wage and requiring at least thirty-five (35) hours of 25
work each week, or any other period of time generally accepted by 26
custom, industry, or practice as full-time employment, for the months 27 UNOFFICIAL COPY 23 RS BR 1518
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including and after the initial growth investment and before the end of 1
the preceding calendar year; and 2
(b) The number of full-time high wage employment positions at the growth 3
business on the date of the initial growth investment. 4
If, however, the amount calculated in paragraph (a)1. of this subsection is less 5
than zero, the new annual jobs amount is equal to zero; 6
(13) "Opportunity zone" means a qualified opportunity zone as defined by 26 U.S.C. 7
sec. 1400Z-1; 8
(14) "Principal business operations" means the location where: 9
(a) At least sixty percent (60%) of a business entity's employees work; or 10
(b) Employees receiving at least sixty percent (60%) of the business entity's 11
payroll work. 12
A business that has agreed to relocate employees using the proceeds of a growth 13
investment to establish its principal business operations in a new location shall be 14
deemed to have its principal business operations in this new location if it satisfies 15
those requirements no later than one hundred eighty (180) days after receiving 16
the growth investment; 17
(15) "Rural county" means a Kentucky county with: 18
(a) A population of less than fifty thousand (50,000) based upon the most 19
recent federal decennial census; or 20
(b) More than twenty-two percent (22%) of the population at or below the 21
poverty level based upon the most recent federal decennial census. 22
The cabinet shall publish a list of rural counties; 23
(16) "State matching capital" means moneys from the rural jobs development fund 24
established in Section 9 of this Act; and 25
(17) "Underemployment zone" means a county with a labor force participation rate, 26
as calculated by the United States Department of Labor, Bureau of Labor 27 UNOFFICIAL COPY 23 RS BR 1518
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Statistics, below the national average for six (6) of the twelve (12) months prior to 1
a growth fund’s closing date. 2
SECTION 3. A NEW SECTION OF SUBCHAPTER 20 OF KRS CHAPTER 3
154 IS CREATED TO READ AS FOLLOWS: 4
(1) Beginning October 1, 2023, the cabinet shall accept applications from entities 5
seeking approval as a growth fund. The application shall be made on standard 6
forms prescribed by the cabinet and shall include: 7
(a) The total investment authority sought by the applicant as part of its business 8
plan; 9
(b) Documents and other evidence sufficient to prove, to the satisfaction of the 10
cabinet, that the applicant meets all of the following criteria: 11
1. The applicant or an affiliate of the applicant, has at least one (1) 12
principal in a rural business investment company under 7 U.S.C. sec. 13
2009cc-3, or a small business investment company under 15 U.S.C. 14
sec. 681, who is, and has been for at least four (4) years, an officer or 15
employee of the applicant or the affiliate, and in the case of an 16
affiliate, the affiliate has been an affiliate of the applicant for at least 17
four (4) years; 18
2. As of the date the application is submitted, the applicant or an affiliate 19
of the applicant has invested: 20
a. More than one hundred million dollars ($100,000,000) in 21
nonpublic companies located in non-metropolitan counties as 22
defined by the Office of Management and Budget within the 23
Executive Office of the President of the United States on the 24
basis of county or county-equivalent units; and 25
b. At least one hundred million dollars ($100,000,000) in nonpublic 26
companies located in low-income communities as defined in 26 27 UNOFFICIAL COPY 23 RS BR 1518
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U.S.C. sec. 45D; and 1
3. The applicant and all affiliates of the applicant are, as of the date the 2
application is submitted, in compliance with applicable state and 3
federal securities laws and regulations and are current and in good 4
standing on all taxes owed to the Commonwealth; 5
(c) An estimate of the number of aggregate new annual jobs and jobs retained 6
in this state as a result of the applicant’s proposed growth investments; 7
(d) A business plan that describes in detail the applicant's investment strategy 8
and includes a revenue impact assessment that projects state and local tax 9
revenue to be generated by the applicant's proposed growth investments, as 10
well as reduced state expenditures prepared by a nationally recognized 11
third-party independent economic forecasting firm using a dynamic 12
economic forecasting model that analyzes the applicant's business plan over 13
the ten (10) years following the date the application is submitted to the 14
cabinet; 15
(e) A representation that the applicant shall remain in compliance with 16
applicable state and federal securities laws and regulations; 17
(f) An education and marketing plan to educate growth businesses regarding 18
the availability of funds and requirements for participation; and 19
(g) A nonrefundable application fee of five thousand dollars ($5,000). 20
(2) (a) The cabinet shall: 21
1. Review applications on a first-come, first-served basis; and 22
2. Make an application determination granting or denying an 23
application within sixty (60) days of receipt. 24
(b) The cabinet shall deem applications received on the same day to have been 25
received simultaneously. 26
(3) (a) The cabinet shall not approve investment authority that would allow more 27 UNOFFICIAL COPY 23 RS BR 1518
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than fifty million dollars ($50,000,000) in state matching capital and one 1
hundred million dollars ($100,000,0000) in investment authority. 2
(b) If applications for investment authority being reviewed by the cabinet 3
exceed the limitations provided in paragraph (a) of this subsection, the 4
cabinet shall proportionally reduce the investment authority and the state 5
matching capital for each approved application as necessary to avoid 6
exceeding the limits. 7
(c) The cabinet shall not issue approval for any amount of investment 8
authority, or any amount of state matching capital, on or after October 1, 9
2024. 10
(4) The cabinet shall deny an application submitted under this section if the: 11
(a) Application is incomplete, or the application fee is not paid in full; 12
(b) Applicant does not satisfy all the criteria provided in subsection (1)(b) of 13
this section; 14
(c) Revenue impact assessment submitted with the application does not 15
demonstrate that the applicant's business plan will result in a positive 16
economic impact on this state's revenues over a ten (10) year period that 17
exceeds the state matching capital that would be issued to the applicant if 18
the application were approved; 19
(d) Cabinet has already approved the maximum amount of investment authority 20
and state matching capital allowed under subsection (3)(a) of this section; 21
or 22
(e) Application is received by the cabinet on or after August 1, 2024, in which 23
case the cabinet would not have the full sixty (60) day period allowed for 24
review of applications prior to reaching the sunset date limitation provided 25
in subsection (3)(c) of this section. 26
(5) If the cabinet denies an application, the applicant may provide additional 27 UNOFFICIAL COPY 23 RS BR 1518
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information to the cabinet to complete, clarify, or cure defects in the application 1
identified by the cabinet, except for a denial under subsection (4)(e) of this 2
section, within fifteen (15) days of the notice of denial and resubmit the 3
application for reconsideration, and if the applicant provides additional 4
information required by the cabinet, or otherwise completes the application 5
within the time period, the application shall be considered completed as of the 6
original date of submission. The cabinet shall review resubmitted applications 7
within thirty (30) days, and prior to reviewing any pending application submitted 8
after the original submission date of the reconsidered application. 9
(6) The cabinet shall not deny a growth fund application or reduce the requested 10
investment authority and state matching capital for reasons other than those 11
provided in subsections (1) and (4) of this section. 12
(7) Upon approval of an application, the cabinet shall issue a: 13
(a) Written approval to the applicant certifying it as a growth fund and 14
specifying the amount of the applicant’s investment authority and state 15
matching capital; and 16
(b) Draft of the allocation agreement. 17
(8) After a growth fund is approved under subsection (7) of this section: 18
(a) Within thirty (30) days, the cabinet, the Commonwealth, and the growth 19
fund shall execute the allocation agreement, and the cabinet shall fund the 20
state matching capital as a conditional grant within three (3) business days 21
after receipts of the notice set forth in paragraph (c) of this subsection; 22
(b) Within sixty (60) days, the growth fund shall collect one (1) or more 23
investments of cash that, when added to the state matching capital, equal 24
the growth fund's entire approved investment authority. At least ten percent 25
(10%) of the growth fund's investment authority shall be composed of equity 26
investments contributed, directly or indirectly, by affiliates of the growth 27 UNOFFICIAL COPY 23 RS BR 1518
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fund, including employees, officers, and directors of those affiliates; 1
(c) Within sixty-five (65) days, the growth fund shall submit to the cabinet 2
written documentation sufficient to prove that the amounts described in 3
paragraph (a) of this subsection have been collected; and 4
(d) Within two (2) years of the closing date, invest one hundred percent (100%) 5
of its investment authority in growth investments in this state, including at 6
least seventy-five percent (75%) of its investment authority in growth 7
businesses located in rural counties, and maintain that level of investment 8
until the sixth anniversary of the closing date. 9
(9) (a) If the growth fund fails to fully comply with subsection (8)(b) and (c) of this 10
section, the growth fund’s approval shall lapse and the corresponding 11
investment authority and state matching capital shall not count toward the 12
limits on total investment authority and state matching capital prescribed by 13
subsection (3) of this section. 14
(b) The cabinet shall first award lapsed investment authority and state 15
matching capital amounts pro rata to each growth fund that was awarded 16
less than its requested investment authority and state matching capital 17
amounts under subsection (3)(b) of this section. 18
(c) Any remaining investment authority and state matching capital may be 19
awarded by the cabinet to new applications submitted under subsection (1) 20
of this section, subject to the sunset date limitation provided in subsection 21
(3)(c) of this section. 22
(10) Following the making of each growth investment, the growth fund shall within 23
sixty (60) days submit to the cabinet written documentation listing the following 24
information: 25
(a) The name, address, and industry of the business entity receiving the growth 26
investment; 27 UNOFFICIAL COPY 23 RS BR 1518
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(b) The amount of the growth investment; 1
(c) A detailed description of the business activities engaged in by the business 2
entity; and 3
(d) Any other information required by the cabinet. 4
(11) Nonrefundable application fees submitted to the cabinet under subsection (1)(g) 5
of this section shall be retained by the cabinet to offset the costs of administering 6
Sections 1 to 9 of this Act. 7
(12) The cabinet shall review the applications received under subsection (1) of this 8
section and documents received under subsections (8) and (10) of this section to 9
ensure compliance with Sections 1 to 9 of this Act. 10
(13) The cabinet may promulgate administrative regulations pursuant to KRS Chapter 11
13A as necessary to administer Sections 1 to 9 of this Act. 12
SECTION 4. A NEW SECTION OF SUBCHAPTER 20 OF KRS CHAPTER 13
154 IS CREATED TO READ AS FOLLOWS: 14
(1) A growth fund shall forfeit its state matching capital and shall immediately repay 15
its state matching capital if any of the following occur with respect to a growth 16
fund before it exits the program under subsection (5) of this section: 17
(a) The growth fund does not invest one hundred percent (100%) of its 18
investment authority in growth investments in this state within two (2) years 19
of the closing date. 20
(b) 1. The growth fund, after investing one hundred percent (100%) of its 21
investment authority in growth investments in this state, fails to 22
maintain that investment until the sixth anniversary of the closing 23
date. 24
2. For the purposes of this paragraph, a growth investment shall be 25
considered to have been maintained even if the investment is sold or 26
repaid if the growth fund reinvests an amount equal to the capital 27 UNOFFICIAL COPY 23 RS BR 1518
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returned or recovered by the growth fund from the original 1
investment, exclusive of any profits realized, in other growth 2
investments in this state within twelve (12) months of the receipt of the 3
returned capital. Amounts received periodically by a growth fund shall 4
be treated as continually invested in growth investments if the 5
amounts are reinvested in one (1) or more rural growth investments by 6
the end of the following calendar year. 7
3. A growth fund shall not be required to reinvest capital returned from 8
growth investments after the fifth anniversary of the closing date, and 9
those amounts shall be considered to be held continuously by the 10
growth fund through the sixth anniversary of the closing date; 11
(c) The growth fund, before exiting the program under subsection (5) of this 12
section, makes a distribution or payment that results in the growth fund 13
having less than one hundred percent (100%) of its investment authority 14
invested in growth investments in this state or available for investment in 15
growth investments and held in cash and other marketable securities; or 16
(d) 1. The growth fund makes a growth investment in a growth business that 17
directly, or indirectly through an affiliate owns, has the right to 18
acquire an ownership interest in, makes a loan to, or makes an 19
investment in the growth fund, an affiliate of the growth fund, or an 20
investor in the growth fund. 21
2. This paragraph shall not apply to investments in publicly traded 22
securities made by a growth business or an owner or affiliate of that 23
growth business. 24
3. For purposes of this paragraph, a growth fund shall not be considered 25
an affiliate of a growth business solely as a result of its growth 26
investment. 27 UNOFFICIAL COPY 23 RS BR 1518
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(2) The amount by which a growth fund's investment in a growth business exceeds 1
five million dollars ($5,000,000) shall not count towards the satisfaction required 2
by subsection (1)(a) and (b) of this section. 3
(3) Before implicating subsection (1) of this section, the cabinet shall notify the 4
growth fund of the reasons for the pending revocation. The growth fund shall 5
have ninety (90) days from the date of the notice to correct any violation outlined 6
in the notice to the satisfaction of the cabinet and to avoid implicating subsection 7
(1). 8
(4) (a) If subsection (1) of this section is implicated with respect to a growth fund, 9
the corresponding investment authority and state matching capital shall not 10
count toward the limits under subsection (3)(a) of Section 3 of this Act. 11
(b) The cabinet shall first award reverted investment authority and state 12
matching capital amounts pro rata to each growth fund that was awarded 13
less than its requested investment authority and state matching capital 14
amounts under subsection (3)(b) of Section 3 of this Act. 15
(c) The cabinet may award any remaining investment authority and state 16
matching capital to new applications submitted under subsection (1) of 17
Section 3 of this Act, subject to the sunset date limitation provided in 18
subsection (3)(c) of Section 3 of this Act. 19
(5) (a) On or after the sixth anniversary of the closing date, a growth fund that has 20
not committed any of the acts described in subsection (1) of this section may 21
submit a written request to the cabinet to exit the program and to no longer 22
be subject to regulation under Sections 1 to 9 of this Act. 23
(b) The cabinet shall respond to the request within sixty (60) days. In 24
evaluating the request, the fact that subsection (1) of this section has not 25
been implicated and that the growth fund has not received a notice of 26
revocation, which has not been cured under subsection (3) of this section, 27 UNOFFICIAL COPY 23 RS BR 1518
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shall be sufficient evidence to prove that the growth fund is eligible for exit. 1
(c) The cabinet shall not unreasonably deny a request submitted under this 2
subsection. If the request is denied, the notice of denial shall include the 3
reasons for the determination. 4
(6) After its exit from the program in accordance with of subsection (5)(a) of this 5
section, a growth fund shall not be permitted to make distributions to its equity 6
holders unless and until it has made growth investments equal to at least one 7
hundred fifty percent (150%) of its investment authority. Each growth fund shall 8
continue to report the amount of growth investments made to the cabinet 9
annually until it has made growth investments equal to at least one hundred fifty 10
percent (150%) of its investment authority. 11
(7) After exiting the program under subsection (5) of this section, at any time the 12
growth fund proposes to make a distribution to its equity holders or payment that, 13
when added to all previous distributions to its equity holders and payments, would 14
be in excess of its investment authority, the growth fund shall remit to the 15
cabinet, if applicable, all future distributions or payments until the cabinet is 16
repaid an amount equal to the product of the growth fund's state matching 17
capital and a fraction, the numerator of which is the aggregate number of new 18
annual jobs and jobs retained reported to the cabinet under subsection (1) of 19
Section 8 of this Act and the denominator of which is the number of new annual 20
jobs and jobs retained projected in the growth fund’s application, as prorated 21
based on the amount of investment authority received by the growth fund. No 22
payment shall be due if the aggregate number of new annual jobs and jobs 23
retained as of the date of the proposed distribution equal or exceed the number of 24
new annual jobs and jobs retained projected in the growth fund’s application, as 25
prorated based on the amount of investment authority received. 26
SECTION 5. A NEW SECTION OF SUBCHAPTER 20 OF KRS CHAPTER 27 UNOFFICIAL COPY 23 RS BR 1518
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154 IS CREATED TO READ AS FOLLOWS: 1
(1) A growth fund may, prior to making a growth investment, request from the 2
cabinet a written determination as to whether the business entity in which it 3
proposes to invest qualifies as a growth business. Each request for a written 4
opinion shall be accompanied by a five hundred dollar ($500) opinion fee 5
submitted to the cabinet and made payable to the Kentucky State Treasurer. 6
(2) Within twenty (20) days after receiving a request under this section, the cabinet 7
shall notify the growth fund of its determination. 8
(3) To enable the cabinet to make a determination under this section, the growth 9
fund shall supply information concerning the business entity and the proposed 10
investment as requested by the cabinet. If the growth fund does not, or is unable 11
to, supply information requested by the cabinet, the cabinet may refuse to issue a 12
determination under this section, in which case subsection (2) of this section shall 13
not apply. 14
(4) If the cabinet fails to notify the growth fund of its determination within twenty 15
(20) days, the business in which the growth fund proposes to invest shall be 16
considered a growth business. 17
SECTION 6. A NEW SECTION OF SUBCHAPTER 20 OF KRS CHAPTER 18
154 IS CREATED TO READ AS FOLLOWS: 19
(1) The cabinet or the department may examine, under oath, the growth fund 20
manager regarding the affairs and business of the growth fund. The cabinet or 21
the department may issue subpoenas and subpoenas duces tecum and administer 22
oaths. Refusal to obey a subpoena or subpoena duces tecum may be reported to 23
the Franklin Circuit Court, which shall enforce the subpoena or subpoena duces 24
tecum according to the rules of civil or criminal procedure, as applicable. 25
(2) The department may audit one (1) or more growth funds in any year on a random 26
basis or for cause. The department may also audit, for cause, any business entity 27 UNOFFICIAL COPY 23 RS BR 1518
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in which a growth fund has made a growth investment. Nothing in this section 1
shall be construed to prohibit the department from conducting any audit relating 2
to the administration or enforcement of the tax laws of the Commonwealth which 3
the department determines to be appropriate. 4
SECTION 7. A NEW SECTION OF SUBCHAPTER 20 OF KRS CHAPTER 5
154 IS CREATED TO READ AS FOLLOWS: 6
The Commonwealth, or any officer, director, official, employee, or agent of the 7
Commonwealth, shall not be liable to any growth fund or any investor making an 8
investor contribution to a growth fund. This limitation of liability includes without 9
limitation: 10
(1) Losses or damages investors incur in connection with any committed or 11
contributed investor contributions made to a growth fund or any growth 12
investments made by a growth fund in any business entity; and 13
(2) Any claim, liability, obligation, loss, damage, assessment, judgment, cost, and 14
expense of any kind or character relating to federal or state securities laws, rules, 15
regulations, or orders. 16
SECTION 8. A NEW SECTION OF SUBCHAPTER 20 OF KRS CHAPTER 17
154 IS CREATED TO READ AS FOLLOWS: 18
To enable the General Assembly to evaluate and measure the effectiveness of the rural 19
jobs development fund in addressing the needs and achieving the goals as stated in 20
Section 1 of this Act, the following reporting requirements shall apply: 21
(1) Each growth fund shall submit a written report to the cabinet and the Interim 22
Joint Committee on Appropriations and Revenue on or before the fifth business 23
day following the anniversary of the closing date and on or before the fifth 24
business day following each subsequent anniversary of the closing date prior to 25
the growth fund’s exit from the program as set forth in subsection (5) of Section 4 26
of this Act. The report shall provide detailed documentation as to the growth 27 UNOFFICIAL COPY 23 RS BR 1518
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fund’s growth investments made to date and shall include: 1
(a) A bank statement evidencing each growth investment; 2
(b) 1. The name, address, and industry of each growth business receiving a 3
growth investment; 4
2. Either a determination letter issued by the cabinet under subsection 5
(7) of Section 3 of this Act relating to the growth business, or evidence 6
that it qualified as a growth business at the time the investment was 7
made; and 8
3. A detailed description of the business activities engaged in by the 9
growth business; 10
(c) The location, by county, of each growth business; 11
(d) The number of employment positions at each growth business on the date of 12
the growth fund’s initial growth investment; 13
(e) The number of new annual jobs created or jobs retained during the year by 14
the growth business; 15
(f) The average annual salary of new annual jobs and jobs retained at each 16
growth business during the year; 17
(g) The cumulative amount of growth investments made in each growth 18
business; 19
(h) Whether subsection (1) of Section 4 of this Act has been implicated; and 20
(i) Any other information required by the cabinet to provide evidence that the 21
program is valuable to the Commonwealth and meeting the goals of the 22
program; and 23
(2) If the information is available, the growth fund shall provide the annual report 24
set forth in subsection (1) of this section for growth investments that have been 25
redeemed or repaid. 26
SECTION 9. A NEW SECTION OF SUBCHAPTER 20 OF KRS CHAPTER 27 UNOFFICIAL COPY 23 RS BR 1518
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154 IS CREATED TO READ AS FOLLOWS: 1
(1) There is hereby established in the State Treasury a trust and agency account to be 2
known as the rural jobs development fund. The fund shall consist of moneys 3
received from state appropriations, gifts, grants, federal funds, and any 4
repayments made in accordance with Section 4 of this Act. 5
(2) The fund shall be administered by the cabinet. 6
(3) Moneys deposited in the fund shall be used for state matching capital as defined 7
in subsection (8)(a) of Section 3 of this Act. 8
(4) Notwithstanding KRS 45.229, moneys in the fund not expended at the close of a 9
fiscal year shall not lapse but shall be carried forward into the next fiscal year. 10
(5) Any interest earnings of the fund shall become a part of the fund and shall not 11
lapse. 12
(6) Moneys deposited in the fund are hereby appropriated for the purposes in 13
Sections 1 to 9 of this Act 14
Section 10. Sections 1 to 9 of this Act may be cited as the Kentucky Rural Jobs 15
Act of 2023. 16
Section 11. There is hereby appropriated General Fund moneys in the amount 17
of $50,000,000 in fiscal year 2023-2024 to the rural jobs development fund for the 18
purposes set forth in Sections 1 to 9 of this Act. 19
Section 12. Whereas the growth in businesses in the rural areas of this state is 20
paramount to the economic well-being of the Commonwealth, an emergency is declared 21
to exist, and this Act takes effect upon its passage and approval by the Governor or upon 22
its otherwise becoming a law. 23