UNOFFICIAL COPY 23 RS BR 1535
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AN ACT relating to the East Kentucky State Aid Funding for Emergencies fund. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘Section 1. KRS 39A.303 is amended to read as follows: 3
(1) The East Kentucky State Aid Funding for Emergencies (EKSAFE) fund is 4
established and shall be: 5
(a) Administered by the Department of Military Affairs, Division of Emergency 6
Management, in accordance with this section; 7
(b) A separate fund to provide financial assistance for those located in the areas 8
named in the Presidential Declaration of a Major Disaster, designated FEMA-9
4663-DR-KY, and impacted by the July 2022 storms and flooding that 10
occurred in the eastern Kentucky region; and 11
(c) Used to provide financial support to those located in the areas named in the 12
Presidential Declaration of a Major Disaster, designated FEMA-4663-DR-13
KY, in the eastern Kentucky region to recover from the devastation caused by 14
the storms and flooding. 15
(2) The Department of Military Affairs or the Division of Emergency Management 16
shall not publicly advertise or solicit contributions from the general public that 17
could potentially impact fundraising efforts of not-for-profit disaster relief agencies. 18
(3) The EKSAFE fund may receive state appropriations, gifts, grants, federal funds, 19
and any other funds, both public and private. 20
(4) Moneys in the EKSAFE fund as of June 30, 2023, through June 30, 2024, shall not 21
lapse and shall carry forward until June 30, 2024. 22
(5) Any interest earnings of the EKSAFE fund shall become a part of the EKSAFE 23
fund and shall not lapse. 24
(6) (a) Eligibility to receive financial support from the EKSAFE fund shall be limited 25
to a: 26
1. City, county, urban-county government, consolidated local government, 27 UNOFFICIAL COPY 23 RS BR 1535
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unified local government, or charter county government; 1
2. Nonprofit or public utility service provider; 2
3. State agency; or 3
4. School district; 4
that has disaster-related needs as a result of the devastation experienced from 5
the July 2022 storms and flooding. 6
(b) An eligible recipient may receive moneys for expenses to provide disaster and 7
recovery relief if the recipient: 8
1. Is located in the areas named in the Presidential Declaration of a Major 9
Disaster, designated FEMA-4663-DR-KY, relating to the storms and 10
flooding that occurred in July 2022; and 11
2. Has disaster-related needs in response to the storms and flooding that 12
occurred in July 2022. 13
(c) The financial support may[shall not] cover any new construction inside the 14
one hundred (100) year floodplain area. 15
(d) Eligible expenses shall be those used to support disaster and recovery relief, 16
including but not limited to: 17
1. Replacement or renovation of publicly owned buildings damaged by the 18
storms and flooding, but only to the extent of damage directly caused by 19
the storms and flooding; 20
2. Reimbursement for services, personnel, and equipment provided during 21
the response and recovery to communities impacted by the storms and 22
flooding, but only to the extent of damage directly caused by the storms 23
and flooding; 24
3. Funding to cities, counties, and publicly owned utilities for the costs of 25
replacement or repair of publicly owned buildings and their contents due 26
to the damage from the storms and flooding, but only to the extent of 27 UNOFFICIAL COPY 23 RS BR 1535
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damage directly caused by the storms and flooding; 1
4. Assistance to cities and counties for expenses related to planning efforts 2
for rebuilding and recovering from the damage, but only to the extent of 3
damage directly caused by the storms and flooding; 4
5. Assistance to support disaster recovery and relief needs of local school 5
districts, but only to the extent of loss or damage directly caused by the 6
storms and flooding, including but not limited to: 7
a. Financial support for school districts that will experience a default 8
in bond payments; and 9
b. Financial support to assist school districts with building and 10
tangible property replacement needs; and 11
6. Contracted employees to administer and report on the funds. 12
(7) Each recipient of moneys from the EKSAFE fund, including any agency of 13
Kentucky state government, shall: 14
(a) Retain documentation of a timely application for any applicable 15
reimbursement, including but not limited to federal emergency disaster grant 16
assistance, other financial disaster assistance, and insurance proceeds; and 17
(b) Adhere to the terms of the EKSAFE fund regarding reimbursement to the 18
Commonwealth if funds from other sources are subsequently received after 19
the receipt of financial assistance from the Commonwealth. 20
(8) (a) Moneys in the EKSAFE fund may be used for the advancement of moneys to 21
cities, counties, school districts, and nonprofit or public utility service 22
providers experiencing strained fiscal liquidity while awaiting reimbursement 23
from federal emergency management assistance or insurance claims and shall 24
not be used for capital improvements. 25
(b) Reimbursement of the advancement under paragraph (a) of this subsection 26
shall: 27 UNOFFICIAL COPY 23 RS BR 1535
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1. Be determined by the: 1
a. State-local finance officer within the Department for Local 2
Government for cities and counties, and nonprofit or public 3
utilities; and 4
b. Department of Education for school districts; and 5
2. Include a quarterly accounting of the advancement released and the 6
outstanding balance through June 30, 2024. 7
(9) (a) If a recipient of moneys from the EKSAFE fund subsequently receives 8
moneys from any other source, the recipient shall reimburse the 9
Commonwealth for the amount of the moneys received from the EKSAFE 10
fund. 11
(b) Before July 1, 2024, all moneys reimbursed to the Commonwealth under 12
paragraph (a) of this subsection shall be deposited in the EKSAFE fund within 13
thirty (30) days, and shall be continuously appropriated. 14
(c) After June 30, 2024, all moneys reimbursed to the Commonwealth under 15
paragraph (a) of this subsection shall be deposited into the budget reserve trust 16
fund account established in KRS 48.705 within thirty (30) days. 17
(10) The Division of Emergency Management shall promulgate administrative 18
regulations to carry out this section. 19
(11) The following reports shall be submitted to the Senate Standing Committee on 20
Appropriations and Revenue and the House Standing Committee on Appropriations 21
and Revenue or the Interim Joint Committee on Appropriations and Revenue by the 22
tenth day of each month, beginning September 10, 2022, and ending July 10, 2024: 23
(a) A report from the Office of State Budget Director that includes: 24
1. The name of each recipient of moneys from the EKSAFE fund; 25
2. The dollar amount of moneys issued and the dates of issuance; 26
3. A description of how the moneys were used; and 27 UNOFFICIAL COPY 23 RS BR 1535
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4. A list of all requests: 1
a. Submitted, including the amount requested; 2
b. Denied, including a description of the reason for the denial; and 3
c. Where the amount awarded was greater than or less than the 4
amount requested, including a description of the reason for the 5
increase or decrease; and 6
(b) A report from the Department of Education that includes: 7
1. The name of each school district receiving moneys from the EKSAFE 8
fund; 9
2. The dollar amount of moneys issued and the dates of issuance; 10
3. A description of how the moneys were used; and 11
4. A list of all requests: 12
a. Submitted, including the amount requested; 13
b. Denied, including a description of the reason for the denial; and 14
c. Where the amount awarded was greater than or less than the 15
amount requested, including a description of the reason for the 16
increase or decrease. 17