UNOFFICIAL COPY 23 RS BR 1278
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AN ACT relating to special purpose funds and declaring an emergency. 1
WHEREAS, on the evening of December 10, 2021, tornadoes devastated the 2
Western Kentucky region as violent storms tracked across Fulton, Hickman, Graves, 3
Marshall, Lyon, Caldwell, Hopkins, Muhlenberg, Ohio, and Grayson Counties in the 4
longest path in United States history; and 5
WHEREAS, over three hours, 80 Kentuckians lost their lives from the storms, and 6
communities became unrecognizable as large swaths of towns were reduced to rubble; 7
and 8
WHEREAS, the magnitude of devastation received worldwide recognition, and the 9
resolve and resiliency of Kentuckians garnered support from local, state, national, and 10
worldwide relief efforts; and 11
WHEREAS, in response to the desire of individuals, nonprofits, and businesses to 12
provide monetary donations to aid the relief and recovery efforts, Governor Beshear 13
established the "Team Western Kentucky Tornado Relief Fund" within the Public 14
Protection Cabinet Office of the Secretary; and 15
WHEREAS, the "Team Western Kentucky Tornado Relief Fund" was created in an 16
off-budget trust account, the fund, 639V, has received donations and pledges exceeding 17
$52 million and has disbursed $28.3 million to date; and 18
WHEREAS, beginning on July 26, 2022, over four days complex thunderstorms 19
brought heavy rain, deadly flash flooding, and devastating river flooding to the Eastern 20
Kentucky region and central Appalachia stretching across Breathitt, Clay, Floyd, Knott, 21
Lee, Leslie, Letcher, Magoffin, Martin, Owsley, Perry, Pike, and Whitley Counties; and 22
WHEREAS, unprecedented record-setting rainfall devastated the region as entire 23
homes and communities were swept away, resulting in the tragic loss of 39 lives and 24
significant infrastructure damage; and 25
WHEREAS, responding to the desire of individuals, businesses, nonprofit and 26
charitable organizations, and other entities to provide assistance and monetary donations 27 UNOFFICIAL COPY 23 RS BR 1278
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to help bring immediate relief to the people and Eastern Kentucky communities, 1
Governor Beshear created the "Team Eastern Kentucky Flood Relief Fund" established 2
within the Public Protection Cabinet Office of the Secretary; and 3
WHEREAS, the "Team Eastern Kentucky Flood Relief Fund" was created as an 4
off-budget trust account, the fund, 63A3, has received donations and pledges exceeding 5
$13.1 million and has disbursed $4.5 million to date; and 6
WHEREAS, concerns have been raised about timeliness and payments received 7
from the relief funds by parties not impacted by the natural disasters; 8
NOW, THEREFORE, 9
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 10
SECTION 1. A NEW SECTION OF KRS CHAPTER 12 IS CREATED TO 11
READ AS FOLLOWS: 12
(1) As used in this section, "relief fund" means a fund created on- or off-budget by 13
statute, a government agency, cabinet secretary, appointed or elected official, or 14
agency head to accept and expend funds received from any source for the 15
purpose of providing relief to individuals and entities impacted by an emergency. 16
(2) The agency head, cabinet secretary, or appointed official that administers a relief 17
fund shall provide a report and analysis of all relief funds to the Legislative 18
Research Commission no later than the end of each fiscal year. 19
(3) The analysis and report of relief funds shall include but not be limited to: 20
(a) A list of the total funds received or pledged, containing the following 21
information: 22
1. The type of entity, such as business, nonprofit or charitable 23
organization, or individual; and 24
2. The state and country of origin of the entity; 25
(b) A list of the expenditures, obligated, or encumbered funds from the relief 26
fund by: 27 UNOFFICIAL COPY 23 RS BR 1278
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1. Recipient; 1
2. Type of entity; 2
3. Total amount disbursed; 3
4. Dates of issuance; 4
5. Method of delivery; and 5
6. Purpose of assistance; 6
(c) The statutory and constitutional authority to raise revenue and expend 7
funds from a state agency to individuals and entities absent an 8
appropriation; 9
(d) The program or fund guidelines, application, and procedures established 10
for individuals and entities seeking assistance from the relief fund; 11
(e) The program or fund guidelines and procedures established for the 12
allocation of funds, including: 13
1. The composition of each board, commission, or governing body 14
created to administer the fund or program; 15
2 The roles, assigned responsibilities, and authority of the entities 16
involved in the administration of funds; 17
3. Any standards or procedure used to determine: 18
a. Award amounts; 19
b. Eligibility criteria; 20
c. Types of assistance; 21
d. Prioritization of applications; and 22
e. Fraud and risk mitigation procedures for administration of the 23
relief fund; 24
(f) Any solicitation, analysis, and evaluation procedures for obligation of funds 25
for future expenditures for long-term recovery projects or partnerships with 26
public and private organizations; and 27 UNOFFICIAL COPY 23 RS BR 1278
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(g) Any plans for use of future receipts, and a timeline for dissolution of the 1
program and fund. 2
Section 2. Whereas relief funds provide vital assistance to individuals, families, 3
and businesses that have suffered from natural disasters, and timely and efficient 4
allocation of these funds to communities is essential to the public good, an emergency is 5
declared to exist, and this Act takes effect upon its passage and approval by the Governor 6
or upon its otherwise becoming law. 7