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AN ACT relating to economic relief for local communities of the Commonwealth. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 3
READ AS FOLLOWS: 4
The General Assembly finds and declares that the purpose of Sections 1 to 9 of this Act 5
is to support the priority communities in the Commonwealth designated by the 6
Interagency Working Group on Coal and Power Plant Communities and Economic 7
Revitalization established by Presidential Executive Order 14008, issued on January 8
27, 2021. In enacting Sections 1 to 9 of this Act, it is the intention of the General 9
Assembly to enable the Department for Local Government to enter into a partnership 10
with the Kentucky Council of Area Development Districts for the purposes of the 11
Government Resources Accelerating Needed Transformation Program established in 12
Section 3 of this Act, and to administer the program funds to achieve those purposes. 13
SECTION 2. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 14
READ AS FOLLOWS: 15
(1) "Department" means the Department for Local Government; 16
(2) "Eligible grant recipient" means a grant applicant that is a local government or 17
nonprofit entity engaged in public benefit improvements to priority communities; 18
(3) "Eligible project" means a public benefit project in a priority community or 19
benefiting a priority community with available matching funds that satisfies the 20
evaluation criteria in Section 6 of this Act and that is initiated on: 21
(a) Publicly owned property; or 22
(b) Property to be acquired, which comes with either a: 23
1. Legally binding letter of intent or option for the sale to an eligible 24
grant recipient; or 25
2. Sale agreement for the sale to an eligible grant recipient; 26
(4) "Eligible use" means the authorized purpose for which an awarded grant may be 27 UNOFFICIAL COPY 23 RS BR 450
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used depending on the source of funds from the Commonwealth. "Eligible use" 1
may include but is not limited to any of the categories in Section 6 of this Act; 2
(5) "Interagency Working Group" means the Interagency Working Group on Coal 3
and Power Plant Communities and Economic Revitalization established by 4
Presidential Executive Order 14008, issued on January 27, 2021; 5
(6) "Priority community" means the areas impacted by concentrated, direct coal-6
related job losses from mine and power plant closers in recent years as designated 7
by the Interagency Working Group; and 8
(7) "Regional project" means an eligible project that is proposed by eligible grant 9
recipients residing in different counties in this Commonwealth who submit a 10
single grant application. 11
SECTION 3. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 12
READ AS FOLLOWS: 13
(1) The Government Resources Accelerating Needed Transformation Program is 14
hereby established under the department. The department shall partner with the 15
Kentucky Council of Area Development Districts to administer the program. The 16
department's administration of the program includes but is not limited to the 17
following: 18
(a) Creating and making available a standardized grant application and a 19
regional grant application; 20
(b) Developing a standardized scoring system pursuant to Section 7 of this Act; 21
(c) Reviewing the applications and proposals submitted by the proposed grant 22
recipients; 23
(d) Verifying the eligibility of the proposed grant recipients; 24
(e) Verifying that the proposed grant recipient seeks grant money for an 25
eligible project; and 26
(f) Awarding matching grants to selected eligible grant recipients. 27 UNOFFICIAL COPY 23 RS BR 450
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(2) The Kentucky Council of Area Development Districts shall: 1
(a) Process the grant applications; 2
(b) Determine whether a grant applicant is an eligible grant recipient and 3
seeking a grant for an eligible project; 4
(c) Evaluate the project proposed by the grant application in accordance with 5
the evaluation criteria set forth in Section 6 of this Act and the criteria 6
recommended by the third-party independent grant consultant; 7
(d) Score each grant application project pursuant to the scoring system 8
described in Section 7 of this Act; 9
(e) Rank each grant application: 10
1. To prioritize the greatest return on investment and relative positive 11
impact on the community; and 12
2. Based on the project evaluation and the project score described in 13
Sections 6 and 7 of this Act; 14
(f) Compile a list of proposed grant recipients whose eligible project 15
demonstrates a high level of investment potential if a grant is made, as 16
revealed by the evaluation, scoring, and ranking process described in this 17
section and Sections 6 and 7 of this Act; 18
(g) Submit the proposed grant recipients and their prioritization to the 19
department for final selection of the grant recipients; 20
(h) Provide detailed feedback to the grant applicants after the project evaluation 21
and project score are completed; and 22
(i) Compile an annual report for the department conveying the following 23
information about the project: 24
1. A list of all program applicants; 25
2. The identity of applicants who were not selected for recommendation; 26
3. Trends found in feedback given to applicants who were not selected 27 UNOFFICIAL COPY 23 RS BR 450
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for recommendation; 1
4. Eligible uses of the projects cited in the grant applications; and 2
5. Any other information requested by the department. 3
(3) The Kentucky Council of Area Development Districts may contract with a third-4
party independent grant consultant to assist with the grant applicant evaluations, 5
scoring, prioritization, and recommendations described in this section and 6
Sections 6 and 7. 7
(4) Upon receipt of eligible grant recipients and eligible grant project 8
recommendations and prioritization from the Kentucky Council of Area 9
Development Districts and the third-party independent grant consultant, the 10
department shall verify and process the eligible grant recipients and eligible 11
project recommendations with the intent to approve and award grant funds as a 12
required match for federal grants to priority communities. 13
(5) The department shall determine the terms, conditions, and requirements of 14
application for grant funds awarded from the Government Resources 15
Accelerating Needed Transformation Program fund, in consultation with the 16
Kentucky Council of Area Development District. The department may establish 17
procedures and standards for the review and approval of eligible grant awards 18
through the promulgation of administrative regulations in accordance with KRS 19
Chapter 13A. 20
(6) The commissioner of the department shall have the authority to hire staff, 21
contract for services, expend funds, and operate the normal business activities of 22
the Government Resources Accelerating Needed Transformation Program. 23
(7) The Government Resources Accelerating Needed Transformation Program shall 24
sunset on December 31, 2026, unless authorized by the General Assembly to 25
continue its work for a specified period of time. 26
SECTION 4. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 27 UNOFFICIAL COPY 23 RS BR 450
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READ AS FOLLOWS: 1
(1) To participate in the Government Resources Accelerating Needed 2
Transformation Program, grant applicants shall submit either a standardized or a 3
regional application to the Kentucky Council of Area Development Districts that 4
may be shared with the third-party independent grant consultant for review. 5
(2) If a grant application is selected as an eligible grant recipient approved under 6
Section 6 of this Act, it shall comply with any grant agreement and reporting 7
requirements deemed necessary by the department to verify that the awarded 8
grant goes toward an eligible use. 9
(3) If the selected grant recipient fails to comply with subsection (2) of this section or 10
uses the awarded grant money for any purpose other than an eligible use, the 11
selected eligible grant recipient shall forfeit and be liable to the department for 12
the full award amount. 13
SECTION 5. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 14
READ AS FOLLOWS: 15
(1) There is hereby established in the State Treasury a trust and agency account to be 16
known as the Government Resources Accelerating Needed Transformation 17
Program fund. The fund shall consist of moneys received from state 18
appropriations, gifts, grants, and federal funds. 19
(2) The fund shall be administered and maintained by the department. 20
(3) Amounts deposited in the fund shall be used for: 21
(a) Awarding matching fund grants to applicants of the Government Resources 22
Accelerating Needed Transformation Program upon notification of award 23
of the federal grant requiring matching funds; and 24
(b) Administration of the program. 25
(4) Notwithstanding KRS 45.229, moneys in the account not expended at the close of 26
a fiscal year shall not lapse but shall be carried forward into the next fiscal year. 27 UNOFFICIAL COPY 23 RS BR 450
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(5) Any interest earnings of the fund shall become a part of the fund and shall not 1
lapse. 2
(6) Moneys deposited in the fund are hereby appropriated for the purposes set forth 3
in this section and shall not be appropriated or transferred by the General 4
Assembly for any other purposes. 5
(7) Any amounts obligated under subsection (3)(a) of this section shall be canceled 6
upon denial of the federal award. 7
(8) By December 1, 2023, and annually thereafter until December 1, 2026, the 8
department shall prepare an annual report detailing the expenditures for the 9
administration of the program from the fund, which shall be included in the 10
annual report submitted under Section 8 of this Act. 11
SECTION 6. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 12
READ AS FOLLOWS: 13
(1) The department shall identify and certify the locations for grant funding 14
assistance by utilizing the designation of priority communities established by the 15
Interagency Working Group. The department shall not approve a project unless it 16
finds that the project is in the public interest and the grant funds will be used for 17
a public purpose. For purposes of this subsection, projects that are in the public 18
interest and for a public purpose can provide private benefit, if the department 19
finds the following: 20
(a) 1. The project will enhance a local community or region; 21
2. The granting entity for which the department’s matching grant is 22
being used requires a public purpose for grant eligibility; and 23
3. The department in its judgment concludes the proposal will enhance 24
the quality of life or services in a community or region; and 25
(b) A public purpose includes but is not limited to projects that: 26
1. Enhance economic vitality, including revitalization of structures that 27 UNOFFICIAL COPY 23 RS BR 450
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have a public purpose or benefit; 1
2. Promote or develop an artistic or philanthropic purpose; 2
3. Improve traditional infrastructure, such as water and wastewater 3
treatment facilities, transmission lines, transportation facilities, and 4
flood and wastewater management; 5
4. Create or enhance telecommunications infrastructure, including 6
cellular towers, fiber optic expansion, and technology infrastructure; 7
5. Promote agricultural activities and development; 8
6. Enhance development of previously mined areas or areas previously 9
used by the coal industry and other industrial activities into uses that 10
diversify the local economy; 11
7. Create or expand recreational facilities, such as walking, hiking, all-12
terrain vehicle, bike trails, picnic facilities, restrooms, boat docking 13
and fishing piers, and athletic facilities; 14
8. Acquire private property that promotes local economic vitality and 15
housing development and enhancement; 16
9. Preserve or enhance buildings that are of local historic or economic 17
interest; 18
10. Restore or create retail facilities, including related service, parking, 19
and transportation facilities, to revitalize decaying downtown areas; 20
11. Construct or expand other facilities that promote or enhance 21
economic development or tourism opportunities thereby promoting the 22
general welfare of local residents; 23
12. Provide facilities and activities for local residences that enhance 24
quality of life, including but not limited to childcare access and public 25
transportation; 26
13. Provide vocational and entrepreneurial training for displaced miners 27 UNOFFICIAL COPY 23 RS BR 450
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and other persons that have lost jobs or have been unable to find 1
employment or business opportunities in the region; 2
14. Invest in priority communities housing stock removal and remediation 3
to facilitate community preservation and aesthetics; or 4
15. Create drug and substance abuse rehabilitation programs and 5
facilities. 6
(2) The Kentucky Council of Area Development Districts shall evaluate each 7
applicant's eligible project according to the criteria described in this section and 8
Section 7 of this Act for the purpose of compiling a recommendation and score 9
for the eligible project pursuant to Section 7 of this Act. 10
(3) The Kentucky Council of Area Development Districts and the third-party 11
independent grant consultant shall consider the following: 12
(a) Applicant’s eligibility when evaluated against the requirements of the grant; 13
(b) Application completeness when evaluated against the requirements of the 14
grant; 15
(c) Application content when evaluated against the grant program’s publicly 16
available scoring rubric or evaluation criteria, if any; 17
(d) Evidence that the project will provide a direct and public benefit to one (1) 18
or more of the priority communities; 19
(e) Evidence of community support for the project; 20
(f) Likelihood that the applicant can successfully implement the grant-funded 21
project; 22
(g) Likelihood that the applicant can successfully manage the grant’s 23
administration requirements; and 24
(h) Overall positive impact for the surrounding community as evidenced by 25
clear and feasible projected outcomes of the grant-funded project. 26
(4) If a grant applicant is selected as an eligible grant recipient approved under the 27 UNOFFICIAL COPY 23 RS BR 450
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Government Resources Accelerating Needed Transformation Program, it shall 1
comply with any incentive agreements and reporting requirements deemed 2
necessary by the department to verify that the awarded grant shall go toward an 3
eligible use. 4
SECTION 7. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 5
READ AS FOLLOWS: 6
(1) In the administration of the Government Resources Accelerating Needed 7
Transformation Program, the Kentucky Council of Area Development Districts, 8
in consultation with a third-party independent grant consultant, shall develop a 9
scoring system for the project proposed by each grant applicant based on the total 10
projected return on investment and the relative positive impact in the community. 11
(2) The scoring system shall include: 12
(a) A score in each category as specified in subsection (3) of this section; and 13
(b) A total weighted score, which is the average of the scores in each category. 14
(3) The scoring categories shall include but are not limited to: 15
(a) Projected return on investment the project will yield, which includes an 16
assessment of the: 17
1. Likelihood of project completion both with the department's funding 18
and without; 19
2. Projected gross economic impact of the proposed project on the 20
community; 21
3. Projected number of jobs created by the proposed project and 22
subsequent impact on the community; and 23
4. A determination of the cost of the project based on the cost expended 24
by the department if it awards the requested grant amount to the 25
applicant; and 26
(b) Relative positive impact the project will have on the surrounding 27 UNOFFICIAL COPY 23 RS BR 450
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community. 1
SECTION 8. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 2
READ AS FOLLOWS: 3
By December 1, 2023, and annually thereafter until December 1, 2026, the Department 4
for Local Government shall prepare an annual report of the Government Resources 5
Accelerating Needed Transformation Program to be submitted to the Governor and the 6
Interim Joint Committee on Economic Development and Workforce Investment and 7
make it available on the Department for Local Government's website. The annual 8
report shall include but not be limited to the following: 9
(1) A report from the Kentucky Council of Area Development Districts pursuant to 10
Section 3 of this Act; 11
(2) A summary of grant applications received and relevant statistics relating to 12
actions taken by the department and grants awarded, including the applicant, 13
award amount, and the purpose of the funding; 14
(3) The detailed report of expenditures for the administration of the program 15
prepared under subsection (8) of Section 5 of this Act; 16
(4) The current balance of the Government Resources Accelerating Needed 17
Transformation Program fund; 18
(5) Recommendations regarding appropriations to the Government Resources 19
Accelerating Needed Transformation Program fund for the upcoming fiscal year; 20
and 21
(6) Recommendations for legislation or policy actions needed to facilitate greater 22
receipt of grant funding to local communities. 23
SECTION 9. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 24
READ AS FOLLOWS: 25
Sections 1 to 9 of this Act shall be known as the Government Resources Accelerating 26
Needed Transformation Act. 27