UNOFFICIAL COPY 23 RS HB 9/GA
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AN ACT relating to economic relief for local communities of the Commonwealth 1
and making an appropriation therefor. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
SECTION 1. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 4
READ AS FOLLOWS: 5
The General Assembly finds and declares that the purpose of Sections 1 to 9 of this Act 6
is to support the priority communities in the Commonwealth designated by the 7
Interagency Working Group on Coal and Power Plant Communities and Economic 8
Revitalization established by Presidential Executive Order 14008, issued on January 9
27, 2021. In enacting Sections 1 to 9 of this Act, it is the intention of the General 10
Assembly to enable the Department for Local Government to enter into a partnership 11
with the Kentucky Council of Area Development Districts for the purposes of the 12
Government Resources Accelerating Needed Transformation Program established in 13
Section 3 of this Act, and to administer the program funds to achieve those purposes. 14
SECTION 2. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 15
READ AS FOLLOWS: 16
As used in Sections 1 to 9 of this Act: 17
(1) "Department" means the Department for Local Government; 18
(2) "Eligible grant recipient" means a grant applicant that is a local government or 19
nonprofit entity engaged in public benefit improvements to priority communities; 20
(3) "Eligible project" means a public benefit project in a priority community or 21
benefiting a priority community with available matching funds that satisfies the 22
evaluation criteria in Section 6 of this Act and that is initiated on: 23
(a) Publicly owned property; 24
(b) Property to be acquired, which comes with either a: 25
1. Legally binding letter of intent or option for the sale to an eligible 26
grant recipient; or 27 UNOFFICIAL COPY 23 RS HB 9/GA
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2. Sale agreement for the sale to an eligible grant recipient; or 1
(c) Private property on which a project is located that is in the public interest 2
and for a public purpose and that benefits a priority community; 3
(4) "Eligible use" means the authorized purpose for which an awarded grant may be 4
used depending on the source of funds from the Commonwealth. "Eligible use" 5
may include but is not limited to any of the categories in Section 6 of this Act; 6
(5) "Interagency Working Group" means the Interagency Working Group on Coal 7
and Power Plant Communities and Economic Revitalization established by 8
Presidential Executive Order 14008, issued on January 27, 2021; 9
(6) "Priority community" means the areas impacted by concentrated, direct coal-10
related job losses from mine and power plant closures in recent years as 11
designated by the Interagency Working Group; and 12
(7) "Regional project" means an eligible project that is proposed by eligible grant 13
recipients residing in different counties in this Commonwealth who submit a 14
single grant application. 15
SECTION 3. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 16
READ AS FOLLOWS: 17
(1) The Government Resources Accelerating Needed Transformation Program is 18
hereby established under the department. The department shall partner with the 19
Kentucky Council of Area Development Districts to administer the program. The 20
department's administration of the program includes but is not limited to the 21
following: 22
(a) Creating and making available a standardized grant application and a 23
regional grant application; 24
(b) Developing a standardized scoring system pursuant to Section 7 of this Act; 25
(c) Reviewing the applications and proposals submitted by the proposed grant 26
recipients; 27 UNOFFICIAL COPY 23 RS HB 9/GA
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(d) Verifying the eligibility of the proposed grant recipients; 1
(e) Verifying that the proposed grant recipient seeks grant money for an 2
eligible project; and 3
(f) Awarding matching grants to selected eligible grant recipients. 4
(2) The Kentucky Council of Area Development Districts shall: 5
(a) Process the grant applications; 6
(b) Determine whether a grant applicant is an eligible grant recipient and 7
seeking a grant for an eligible project; 8
(c) Evaluate the project proposed by the grant application in accordance with 9
the evaluation criteria set forth in Section 6 of this Act and the criteria 10
recommended by the third-party independent grant consultant; 11
(d) Score each grant application project pursuant to the scoring system 12
described in Section 7 of this Act; 13
(e) Rank each grant application: 14
1. To prioritize the greatest return on investment and relative positive 15
impact on the priority community; and 16
2. Based on the project evaluation and the project score described in 17
Sections 6 and 7 of this Act; 18
(f) Compile a list of proposed grant recipients whose eligible project 19
demonstrates a high level of investment potential if a grant is made, as 20
revealed by the evaluation, scoring, and ranking process described in this 21
section and Sections 6 and 7 of this Act; 22
(g) Submit the proposed grant recipients and their prioritization to the 23
department for final selection of the grant recipients; 24
(h) Provide detailed feedback to the grant applicants after the project evaluation 25
and project score are completed; and 26
(i) Compile an annual report for the department conveying the following 27 UNOFFICIAL COPY 23 RS HB 9/GA
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information about the project: 1
1. A list of all program applicants; 2
2. The identity of applicants who were not selected for recommendation; 3
3. Trends found in feedback given to applicants who were not selected 4
for recommendation; 5
4. Eligible uses of the projects cited in the grant applications; and 6
5. Any other information requested by the department. 7
(3) The Kentucky Council of Area Development Districts may contract with a third-8
party independent grant consultant to assist with the grant applicant evaluations, 9
scoring, prioritization, and recommendations described in this section and 10
Sections 6 and 7 of this Act. 11
(4) Upon receipt of eligible grant recipients and eligible grant project 12
recommendations and prioritization from the Kentucky Council of Area 13
Development Districts and the third-party independent grant consultant, the 14
department shall verify and process the eligible grant recipients and eligible 15
project recommendations with the intent to approve and award grant funds as a 16
match for federal grants to priority communities. 17
(5) The department shall determine the terms, conditions, and requirements of 18
application for grant funds awarded from the Government Resources 19
Accelerating Needed Transformation Program fund, in consultation with the 20
Kentucky Council of Area Development Districts. The department may establish 21
procedures and standards for the review and approval of eligible grant awards 22
through the promulgation of administrative regulations in accordance with KRS 23
Chapter 13A. 24
(6) The commissioner of the department shall have the authority to hire staff, 25
contract for services, expend funds, and operate the normal business activities of 26
the Government Resources Accelerating Needed Transformation Program. 27 UNOFFICIAL COPY 23 RS HB 9/GA
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(7) The Government Resources Accelerating Needed Transformation Program shall 1
sunset on December 31, 2026, unless authorized by the General Assembly to 2
continue its work for a specified period of time. 3
SECTION 4. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 4
READ AS FOLLOWS: 5
(1) To participate in the Government Resources Accelerating Needed 6
Transformation Program, grant applicants shall submit either a standardized or a 7
regional application to the Kentucky Council of Area Development Districts that 8
may be shared with the third-party independent grant consultant for review. 9
(2) If a grant application is selected as an eligible grant recipient approved under 10
Section 6 of this Act, it shall comply with any grant agreement and reporting 11
requirements deemed necessary by the department to verify that the awarded 12
grant goes toward an eligible use. 13
(3) If the selected grant recipient fails to comply with subsection (2) of this section or 14
uses the awarded grant money for any purpose other than an eligible use, the 15
selected eligible grant recipient shall forfeit and be liable to the department for 16
the full award amount. 17
SECTION 5. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 18
READ AS FOLLOWS: 19
(1) There is hereby established in the State Treasury a trust and agency account to be 20
known as the Government Resources Accelerating Needed Transformation 21
Program fund. The fund shall consist of moneys received from state 22
appropriations, gifts, grants, and federal funds. 23
(2) The fund shall be administered and maintained by the department. 24
(3) Amounts deposited in the fund shall be used for: 25
(a) Awarding matching fund grants to applicants of the Government Resources 26
Accelerating Needed Transformation Program upon notification of award 27 UNOFFICIAL COPY 23 RS HB 9/GA
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of the federal grant requiring matching funds; and 1
(b) Administration of the program. 2
(4) Notwithstanding KRS 45.229, moneys in the account not expended at the close of 3
a fiscal year shall not lapse but shall be carried forward into the next fiscal year. 4
(5) Any interest earnings of the fund shall become a part of the fund and shall not 5
lapse. 6
(6) Moneys deposited in the fund are hereby appropriated for the purposes set forth 7
in this section and shall not be appropriated or transferred by the General 8
Assembly for any other purposes. 9
(7) Any amounts obligated under subsection (3)(a) of this section shall be canceled 10
upon denial of the federal award. 11
(8) By December 1, 2023, and annually thereafter until December 1, 2026, the 12
department shall prepare an annual report detailing the expenditures for the 13
administration of the program from the fund, which shall be included in the 14
annual report submitted under Section 8 of this Act. 15
SECTION 6. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 16
READ AS FOLLOWS: 17
(1) The department shall identify and certify the locations for grant funding 18
assistance by utilizing the designation of priority communities established by the 19
Interagency Working Group. The department shall not approve a project unless it 20
finds that the project is in the public interest and the grant funds will be used for 21
a public purpose. For purposes of this subsection, projects that are in the public 22
interest and for a public purpose can provide private benefit, if the department 23
finds the following: 24
(a) 1. The project will enhance a priority community or region; 25
2. The granting entity for which the department’s matching grant is 26
being used requires a public purpose for grant eligibility; and 27 UNOFFICIAL COPY 23 RS HB 9/GA
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3. The department in its judgment concludes the proposal will enhance 1
the quality of life or services in a priority community or region; and 2
(b) A public purpose includes but is not limited to projects that: 3
1. Enhance economic vitality, including revitalization of structures that 4
have a public purpose or benefit; 5
2. Promote or develop an artistic or philanthropic purpose; 6
3. Improve traditional infrastructure, such as water and wastewater 7
treatment facilities, transmission lines, transportation facilities, and 8
flood and wastewater management; 9
4. Create or enhance telecommunications infrastructure, including 10
cellular towers, fiber optic expansion, and technology infrastructure; 11
5. Promote agricultural activities and development; 12
6. Enhance development of previously mined areas or areas previously 13
used by the coal industry and other industrial activities into uses that 14
diversify the local economy; 15
7. Create or expand recreational facilities, such as walking, hiking, all-16
terrain vehicle, bike trails, picnic facilities, restrooms, boat docking 17
and fishing piers, and athletic facilities; 18
8. Acquire private property that promotes local economic vitality and 19
housing development and enhancement; 20
9. Preserve or enhance buildings that are of local historic or economic 21
interest; 22
10. Restore or create retail facilities, including related service, parking, 23
and transportation facilities, to revitalize decaying downtown areas; 24
11. Construct or expand other facilities that promote or enhance 25
economic development or tourism opportunities, thereby promoting 26
the general welfare of local residents; 27 UNOFFICIAL COPY 23 RS HB 9/GA
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12. Provide facilities and activities for local residences that enhance 1
quality of life, including but not limited to childcare access and public 2
transportation; 3
13. Provide vocational and entrepreneurial training for displaced miners 4
and other persons that have lost jobs or have been unable to find 5
employment or business opportunities in the region; 6
14. Invest in priority communities housing stock removal and remediation 7
to facilitate community preservation and aesthetics; or 8
15. Create drug and substance abuse rehabilitation programs and 9
facilities. 10
(2) The Kentucky Council of Area Development Districts shall evaluate each 11
applicant's eligible project according to the criteria described in this section and 12
Section 7 of this Act for the purpose of compiling a recommendation and score 13
for the eligible project pursuant to Section 7 of this Act. 14
(3) The Kentucky Council of Area Development Districts and the third-party 15
independent grant consultant shall consider the following: 16
(a) Applicant’s eligibility when evaluated against the requirements of the 17
federal grant; 18
(b) Application completeness when evaluated against the requirements of the 19
grant; 20
(c) Application content when evaluated against the federal grant program’s 21
publicly available scoring rubric or evaluation criteria, if any; 22
(d) Evidence that the project will provide a direct and public benefit to one (1) 23
or more of the priority communities; 24
(e) Evidence of community support for the project; 25
(f) Likelihood that the applicant can successfully implement the grant-funded 26
project; 27 UNOFFICIAL COPY 23 RS HB 9/GA
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(g) Likelihood that the applicant can successfully manage the federal grant’s 1
administration requirements; and 2
(h) Overall positive impact for the surrounding community as evidenced by 3
clear and feasible projected outcomes of the grant-funded project. 4
(4) If a grant applicant is selected as an eligible grant recipient approved under the 5
Government Resources Accelerating Needed Transformation Program, it shall 6
comply with any incentive agreements and reporting requirements deemed 7
necessary by the department to verify that the awarded grant shall go toward an 8
eligible use. 9
SECTION 7. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 10
READ AS FOLLOWS: 11
(1) In the administration of the Government Resources Accelerating Needed 12
Transformation Program, the Kentucky Council of Area Development Districts, 13
in consultation with a third-party independent grant consultant, shall develop a 14
scoring system for the project proposed by each grant applicant based on the total 15
projected return on investment and the relative positive impact in the priority 16
community. 17
(2) The scoring system shall include: 18
(a) A score in each category as specified in subsection (3) of this section; and 19
(b) A total weighted score, which is the average of the scores in each category. 20
(3) The scoring categories shall include but are not limited to: 21
(a) Projected return on investment the project will yield, which includes an 22
assessment of the: 23
1. Likelihood of project completion both with the department's funding 24
and without; 25
2. Projected gross economic impact of the proposed project on the 26
priority community; 27 UNOFFICIAL COPY 23 RS HB 9/GA
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3. Projected number of jobs created by the proposed project and 1
subsequent impact on the priority community; and 2
4. A determination of the cost of the project based on the cost expended 3
by the department if it awards the requested grant amount to the 4
applicant; and 5
(b) Relative positive impact the project will have on the surrounding 6
community. 7
SECTION 8. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 8
READ AS FOLLOWS: 9
By December 1, 2023, and annually thereafter until December 1, 2026, the Department 10
for Local Government shall prepare an annual report of the Government Resources 11
Accelerating Needed Transformation Program to be submitted to the Governor and the 12
Interim Joint Committee on Economic Development and Workforce Investment and 13
make it available on the Department for Local Government's website. The annual 14
report shall include but not be limited to the following: 15
(1) A report from the Kentucky Council of Area Development Districts pursuant to 16
Section 3 of this Act; 17
(2) A summary of grant applications received and relevant statistics relating to 18
actions taken by the department and grants awarded, including the applicant, 19
award amount, and the purpose of the funding; 20
(3) The detailed report of expenditures for the administration of the program 21
prepared under subsection (8) of Section 5 of this Act; 22
(4) The current balance of the Government Resources Accelerating Needed 23
Transformation Program fund; 24
(5) Recommendations regarding appropriations to the Government Resources 25
Accelerating Needed Transformation Program fund for the upcoming fiscal year; 26
and 27 UNOFFICIAL COPY 23 RS HB 9/GA
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(6) Recommendations for legislation or policy actions needed to facilitate greater 1
receipt of grant funding to priority communities. 2
SECTION 9. A NEW SECTION OF KRS CHAPTER 147A IS CREATED TO 3
READ AS FOLLOWS: 4
Sections 1 to 9 of this Act shall be known as the Government Resources Accelerating 5
Needed Transformation Act. 6
Section 10. There is hereby appropriated General Fund moneys in the amount 7
of $2,000,000 in fiscal year 2023-2024 to the Government Resources Accelerating 8
Needed Transformation Program fund created in Section 5 of this Act for the 9
administration of the program in accordance with Sections 1 to 9 of this Act. 10