UNOFFICIAL COPY 23 RS SB 99/EN
Page 1 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
AN ACT relating to disaster relief funding and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 12 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section, "relief fund" means a fund created on- or off-budget by 5
statute, a government agency, cabinet secretary, appointed or elected official, or 6
agency head to accept and expend funds received from any source for the 7
purpose of providing relief to individuals and entities impacted by an emergency. 8
(2) The agency head, cabinet secretary, or appointed or elected official that 9
administers a relief fund shall provide a report and analysis of all relief funds to 10
the Legislative Research Commission no later than the end of each fiscal year. 11
(3) The analysis and report of relief funds shall include but not be limited to: 12
(a) A list of the total funds received or pledged, containing the following 13
information: 14
1. The type of entity, such as business, nonprofit or charitable 15
organization, or individual; and 16
2. The state and country of origin of the entity; 17
(b) A list of the expenditures or obligated or encumbered funds from the relief 18
fund by: 19
1. Recipient; 20
2. Type of entity; 21
3. Total amount disbursed; 22
4. Dates of issuance; 23
5. Method of delivery; and 24
6. Purpose of assistance; 25
(c) The statutory and constitutional authority to raise revenue and expend 26
funds from a state agency to individuals and entities absent an 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 2 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
appropriation as required by Section 230 of the Constitution of Kentucky; 1
(d) The program or fund guidelines, application, and procedures established 2
for individuals and entities seeking assistance from the relief fund; 3
(e) The program or fund guidelines and procedures established for the 4
allocation of funds, including: 5
1. The composition of each board, commission, or governing body 6
created to administer the fund or program; 7
2 The roles, assigned responsibilities, and authority of the entities 8
involved in the administration of funds; 9
3. Any standards or procedures used to determine: 10
a. Award amounts; 11
b. Eligibility criteria; 12
c. Types of assistance; 13
d. Prioritization of applications; and 14
e. Fraud and risk mitigation procedures for administration of the 15
relief fund; 16
(f) Any solicitation, analysis, and evaluation procedures for obligation of funds 17
for future expenditures for long-term recovery projects or partnerships with 18
public and private organizations; and 19
(g) Any plans for use of future receipts, and a timeline for dissolution of the 20
program and fund. 21
Section 2. KRS 39A.303 is amended to read as follows: 22
(1) The East Kentucky State Aid Funding for Emergencies (EKSAFE) fund is 23
established and shall be: 24
(a) Administered by the Department of Military Affairs, Division of Emergency 25
Management, in accordance with this section; 26
(b) A separate fund to provide financial assistance for those located in the areas 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 3 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
named in the Presidential Declaration of a Major Disaster, designated FEMA-1
4663-DR-KY, and impacted by the July 2022 storms and flooding that 2
occurred in the eastern Kentucky region; and 3
(c) Used to provide financial support to those located in the areas named in the 4
Presidential Declaration of a Major Disaster, designated FEMA-4663-DR-5
KY, in the eastern Kentucky region to recover from the devastation caused by 6
the storms and flooding. 7
(2) The Department of Military Affairs or the Division of Emergency Management 8
shall not publicly advertise or solicit contributions from the general public that 9
could potentially impact fundraising efforts of not-for-profit disaster relief agencies. 10
(3) The EKSAFE fund may receive state appropriations, gifts, grants, federal funds, 11
and any other funds, both public and private. 12
(4) Moneys in the EKSAFE fund as of June 30, 2023, through June 30, 2026[2024], 13
shall not lapse and shall carry forward until June 30, 2026[2024]. 14
(5) Any interest earnings of the EKSAFE fund shall become a part of the EKSAFE 15
fund and shall not lapse. 16
(6) (a) Eligibility to receive financial support from the EKSAFE fund shall be limited 17
to a: 18
1. City, county, urban-county government, consolidated local government, 19
unified local government, or charter county government; 20
2. Nonprofit or public utility service provider; 21
3. State agency; or 22
4. School district; 23
that has disaster-related needs as a result of the devastation experienced from 24
the July 2022 storms and flooding. 25
(b) An eligible recipient may receive moneys for expenses to provide disaster and 26
recovery relief if the recipient: 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 4 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
1. Is located in the areas named in the Presidential Declaration of a Major 1
Disaster, designated FEMA-4663-DR-KY, relating to the storms and 2
flooding that occurred in July 2022; and 3
2. Has disaster-related needs in response to the storms and flooding that 4
occurred in July 2022. 5
(c) The financial support shall not cover any new construction inside the one 6
hundred (100) year floodplain area. 7
(d) 1. Eligible expenses shall be those used to support disaster and recovery 8
relief, including but not limited to: 9
a. i.[1.] Replacement or renovation of publicly owned buildings 10
damaged by the storms and flooding, but only to the extent 11
of damage directly caused by the storms and flooding; and 12
ii. Replacement, renovation, or expansion of an essential 13
government facility that was used for existing services at 14
the time of the disaster, including police, fire, and 15
ambulance stations, functioning above capacity at the time 16
of application, but only to the extent of damage directly 17
caused by the storms and flooding; 18
b.[2.] Reimbursement for services, personnel, and equipment provided 19
during the response and recovery to communities impacted by the 20
storms and flooding, but only to the extent of damage directly 21
caused by the storms and flooding; 22
c.[3.] Funding to cities, counties, and publicly owned utilities for the 23
costs of replacement or repair of publicly owned buildings and 24
their contents due to the damage from the storms and flooding, but 25
only to the extent of damage directly caused by the storms and 26
flooding; 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 5 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
d.[4.] Assistance to cities and counties for expenses related to planning 1
efforts for rebuilding and recovering from the damage, but only to 2
the extent of damage directly caused by the storms and flooding; 3
e.[5.] Assistance to support disaster recovery and relief needs of local 4
school districts, but only to the extent of loss or damage directly 5
caused by the storms and flooding, including but not limited to: 6
i.[a.] Financial support for school districts that will experience a 7
default in bond payments; and 8
ii.[b.] Financial support to assist school districts with building and 9
tangible property replacement needs; and 10
f.[6.] Contracted employees to administer and report on the funds. 11
2. a. Moneys used for the eligible expenses described in subparagraph 12
1.a.i. or ii. of this paragraph shall be: 13
i. Issued in the form of a loan; and 14
ii. Used to replace, renovate, or expand an essential 15
government facility that was used for existing services at 16
the time of the disaster at up to one hundred twenty percent 17
(120%) of capacity at the time of application for proceeds. 18
b. Any loan issued under subdivision a. of this subparagraph shall 19
contain the following terms: 20
i. An interest rate of zero percent; 21
ii. A time for repayment of no longer than twenty (20) years; 22
and 23
iii. A repayment structure of quarterly payments due on the 24
thirtieth day of March, June, September, and December of 25
each year until the loan is repaid. 26
c. The recipient of any loan issued under subdivision a. of this 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 6 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
subparagraph shall report to the Department of Military Affairs, 1
Division of Emergency Management, on a quarterly basis: 2
i. The amount of any insurance proceeds received related to 3
the replacement, renovation, or expansion of an essential 4
government facility for which the loan was granted; and 5
ii. The name and address of the insurance provider. 6
d. No later than November 1, 2023, and each November 1 7
thereafter, the Department of Military Affairs, Division of 8
Emergency Management, shall compile the information reported 9
by each recipient under subdivision c. of this subparagraph and 10
report the compiled information to the Interim Joint Committee 11
on Appropriations and Revenue. 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 SB 99/EN
Page 7 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
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, 2026[2024]. 7
(9) (a) 1. 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 10
EKSAFE fund. 11
2.[(b)] Before July 1, 2026[2024], all moneys reimbursed to the 12
Commonwealth under subparagraph 1. of this paragraph[ (a) of this 13
subsection] shall be deposited in the EKSAFE fund within thirty (30) 14
days, and shall be continuously appropriated. 15
3.[(c)] After June 30, 2026[2024], all moneys reimbursed to the 16
Commonwealth under subparagraph 1. of this paragraph[ (a) of this 17
subsection] shall be deposited into the budget reserve trust fund account 18
established in KRS 48.705 within thirty (30) days. 19
(b) 1. If a recipient receives moneys in the form of a loan under subsection 20
(6)(d)2. of this section, the recipient shall reimburse the 21
Commonwealth for the amount of the moneys received from the 22
EKSAFE fund according to the repayment structure under subsection 23
(6)(d)2.b.iii of this section. 24
2. Before July 1, 2026, all moneys reimbursed to the Commonwealth 25
under subparagraph 1. of this paragraph shall be deposited in the 26
EKSAFE fund within thirty (30) days, and shall be continuously 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 8 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
appropriated. 1
3. After June 30, 2026, all moneys reimbursed to the Commonwealth 2
under subparagraph 1. of this paragraph shall be deposited into the 3
budget reserve trust fund account established in KRS 48.705 within 4
thirty (30) days. 5
(10) The Division of Emergency Management shall promulgate administrative 6
regulations to carry out this section. 7
(11) The following reports shall be submitted to the Senate Standing Committee on 8
Appropriations and Revenue and the House Standing Committee on Appropriations 9
and Revenue or the Interim Joint Committee on Appropriations and Revenue by the 10
tenth day of each month, beginning September 10, 2022, and ending July 10, 11
2026[2024]: 12
(a) A report from the Office of State Budget Director that includes: 13
1. The name of each recipient of moneys from the EKSAFE fund; 14
2. The dollar amount of moneys issued and the dates of issuance; 15
3. A description of how the moneys were used; and 16
4. A list of all requests: 17
a. Submitted, including the amount requested; 18
b. Denied, including a description of the reason for the denial; and 19
c. Where the amount awarded was greater than or less than the 20
amount requested, including a description of the reason for the 21
increase or decrease; and 22
(b) A report from the Department of Education that includes: 23
1. The name of each school district receiving moneys from the EKSAFE 24
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 SB 99/EN
Page 9 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
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. 6
Section 3. KRS 39A.305 is amended to read as follows: 7
(1) The West Kentucky State Aid Funding for Emergencies (WKSAFE) fund is 8
established and shall be: 9
(a) Administered by the Department of Military Affairs, Division of Emergency 10
Management, in accordance with this section; 11
(b) A separate fund to provide financial assistance for those impacted by the 12
December 2021 storms and tornadoes that occurred in the west Kentucky 13
region; and 14
(c) Used to provide financial support to the west Kentucky region to recover from 15
the devastation caused by the storms and tornadoes. 16
(2) The Department of Military Affairs or the Division of Emergency Management 17
shall not publicly advertise or solicit contributions from the general public that 18
could potentially impact fundraising efforts of not-for-profit disaster relief agencies. 19
(3) The WKSAFE fund may receive state appropriations, gifts, grants, federal funds, 20
and any other funds, both public and private. 21
(4) Moneys in the WKSAFE fund as of June 30, 2022, through June 30, 2026, shall not 22
lapse and shall carry forward until June 30, 2026. 23
(5) Any interest earnings of the WKSAFE fund shall become a part of the WKSAFE 24
fund and shall not lapse. 25
(6) [(a) ]Eligibility to receive financial support from the WKSAFE fund shall be 26
limited to a: 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 10 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
(a)[1.] City, county, urban-county government, consolidated local government, 1
unified local government, or charter county government; 2
(b)[2.] Nonprofit or public utility service provider; 3
(c)[3.] State agency; 4
(d)[4.] School district; or 5
(e)[5.] Qualified lender as defined in KRS 154.20-580; 6
that has disaster-related needs as a result of the devastation experienced from the 7
December 2021 storms and tornadoes. 8
(7)[(b)] An eligible recipient may receive moneys for expenses to provide disaster and 9
recovery relief if the recipient: 10
(a)[1.] Is located in the areas named in a Presidential Declaration of Emergency 11
relating to the storms and tornadoes that occurred in December 2021; and 12
(b)[2.] Has disaster-related needs in response to the storms and tornadoes that 13
occurred in December 2021. 14
(8)[(c)] Eligible expenses shall be those used to support disaster and recovery relief, 15
including but not limited to: 16
(a) 1. Replacement or renovation of publicly owned buildings damaged by the 17
storms and tornadoes, but only to the extent of damage directly caused 18
by the storms and tornadoes; and 19
2. Replacement, renovation, or expansion of an essential government 20
facility that was used for existing services at the time of the disaster, 21
including police, fire, and ambulance stations, functioning above 22
capacity at the time of application, but only to the extent of damage 23
directly caused by the storms and tornadoes; 24
(b)[2.] Reimbursement for services, personnel, and equipment provided during 25
the response and recovery to communities impacted by the storms and 26
tornadoes, but only to the extent of damage directly caused by the storms and 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 11 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
tornadoes; 1
(c)[3.] Funding to cities, counties, and publicly owned utilities for the costs of 2
replacement or repair of publicly owned buildings and their contents due to 3
the damage from the storms and tornadoes, but only to the extent of damage 4
directly caused by the storms and tornadoes; 5
(d)[4.] Assistance to cities and counties for expenses related to planning efforts 6
for rebuilding and recovering from the damage, but only to the extent of 7
damage directly caused by the storms and tornadoes; 8
(e)[5.] Assistance to support disaster recovery and relief needs of local school 9
districts, but only to the extent of damage directly caused by the storms and 10
tornadoes, including but not limited to: 11
1.[a.] Financial support for school districts that will experience a default in 12
bond payments; and 13
2.[b.] Financial support to assist school districts with building and tangible 14
property replacement needs; 15
(f)[6.] Contracted employees to administer and report on the funds; and 16
(g) 1.[7. a.] Financial assistance to cities, counties, and school districts for 17
realized revenue losses, but only to the extent the loss is directly caused 18
by the storms and tornadoes, and to be determined on a quarterly basis 19
by the: 20
a.[i.] State-local finance officer within the Department for Local 21
Government for cities and counties; and 22
b.[ii.] Department of Education for school districts. 23
2.[b.] The financial assistance determined in subparagraph 1. of this 24
paragraph[subdivision a. of this subparagraph] shall be limited to: 25
a.[i.] One hundred percent (100%) of the lost revenue in fiscal year 26
2022-2023; 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 12 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
b.[ii.] Sixty-six percent (66%) of the lost revenue in fiscal year 2023-1
2024; and 2
c.[iii.] Thirty-three percent (33%) of the lost revenue in fiscal year 3
2024-2025. 4
(9) (a) Moneys used for the eligible expenses described in subsection (8)(a)1. or 2. 5
of this section shall be: 6
1. Issued in the form of a loan; and 7
2. Used to replace, renovate, or expand an essential government facility 8
that was used for existing services at the time of the disaster at up to 9
one hundred twenty percent (120%) of capacity at the time of 10
application for proceeds. 11
(b) Any loan issued under paragraph (a) of this subsection shall contain the 12
following terms: 13
1. An interest rate of zero percent; 14
2. A time for repayment of no longer than twenty (20) years; and 15
3. A repayment structure of quarterly payments due on the thirtieth day 16
of March, June, September, and December of each year until the loan 17
is repaid. 18
(c) The recipient of any loan issued under paragraph (a) of this subsection 19
shall report to the Department of Military Affairs, Division of Emergency 20
Management, on a quarterly basis: 21
1. The amount of any insurance proceeds received related to the 22
replacement, renovation, or expansion of an essential government 23
facility for which the loan was granted; and 24
2. The name and address of the insurance provider. 25
(d) No later than November 1, 2023, and each November 1 thereafter, the 26
Department of Military Affairs, Division of Emergency Management, shall 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 13 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
compile the information reported by each recipient under paragraph (c) of 1
this subsection and report the compiled information to the Interim Joint 2
Committee on Appropriations and Revenue. 3
(10)[(7)] Each recipient of moneys from the WKSAFE fund, including any agency of 4
Kentucky state government, shall: 5
(a) Timely apply for federal emergency disaster grant assistance, other financial 6
disaster assistance, and insurance proceeds; and 7
(b) Adhere to the terms of the WKSAFE fund regarding reimbursement to the 8
Commonwealth if funds from other sources are subsequently received after 9
the receipt of financial assistance from the Commonwealth. 10
(11)[(8)] (a) Moneys in the WKSAFE fund may be used for the advancement of 11
moneys to cities, counties, and nonprofit or public utility service providers 12
experiencing strained fiscal liquidity while awaiting reimbursement from 13
federal emergency management assistance or insurance claims and shall not 14
be used for capital improvements. 15
(b) Reimbursement of the advancement under paragraph (a) of this subsection 16
shall: 17
1. Be determined by the: 18
a. State-local finance officer within the Department for Local 19
Government for cities and counties, and nonprofit or public 20
utilities; and 21
b. Department of Education for school districts; and 22
2. Include a quarterly accounting of the advancement released and the 23
outstanding balance through June 30, 2026. 24
(12)[(9)] (a) 1. If a recipient of moneys from the WKSAFE fund subsequently 25
receives moneys from any other source, the recipient shall reimburse the 26
Commonwealth for the amount of the moneys received from the 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 14 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
WKSAFE fund. 1
2.[(b)] Before July 1, 2026, all moneys reimbursed to the Commonwealth 2
under subparagraph 1. of this paragraph[ (a) of this subsection] shall be 3
deposited in the WKSAFE[West Kentucky State Aid Funding for 4
Emergencies (WKSAFE)] fund within thirty (30) days, and shall be 5
continuously appropriated. 6
3.[(c)] After June 30, 2026, all moneys reimbursed to the Commonwealth 7
under subparagraph 1. of this paragraph[ (a) of this subsection] shall be 8
deposited into the budget reserve trust fund account established in KRS 9
48.705 within thirty (30) days. 10
(b) 1. If a recipient receives moneys in the form of a loan under subsection 11
(9)(a) of this section, the recipient shall reimburse the Commonwealth 12
for the amount of the moneys received from the WKSAFE fund 13
according to the repayment structure under subsection (9)(b)3. of this 14
section. 15
2. Before July 1, 2026, all moneys reimbursed to the Commonwealth 16
under subparagraph 1. of this paragraph shall be deposited in the 17
WKSAFE fund within thirty (30) days, and shall be continuously 18
appropriated. 19
3. After June 30, 2026, all moneys reimbursed to the Commonwealth 20
under subparagraph 1. of this paragraph shall be deposited into the 21
budget reserve trust fund account established in KRS 48.705 within 22
thirty (30) days. 23
(13)[(10)] The Division of Emergency Management shall promulgate administrative 24
regulations to carry out this section. 25
(14)[(11)] The following reports shall be submitted to the Senate Standing Committee on 26
Appropriations and Revenue and the House Standing Committee on Appropriations 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 15 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
and Revenue or the Interim Joint Committee on Appropriations and Revenue by the 1
tenth day of each month, beginning May 10, 2022, and ending July 10, 2026: 2
(a) A report from the Office of State Budget Director that includes: 3
1. The name of each recipient of moneys from the WKSAFE fund; 4
2. The dollar amount of moneys issued and the dates of issuance; 5
3. A description of how the moneys were used; and 6
4. A list of all requests: 7
a. Submitted, including the amount requested; 8
b. Denied, including a description of the reason for the denial; and 9
c. Where the amount awarded was greater than or less than the 10
amount requested, including a description of the reason for the 11
increase or decrease; and 12
(b) A report from the Department of Education that includes: 13
1. The name of each school district receiving moneys from the WKSAFE 14
fund; 15
2. The dollar amount of moneys issued and the dates of issuance; 16
3. A description of how the moneys were used; and 17
4. A list of all requests: 18
a. Submitted, including the amount requested; 19
b. Denied, including a description of the reason for the denial; and 20
c. Where the amount awarded was greater than or less than the 21
amount requested, including a description of the reason for the 22
increase or decrease. 23
(15)[(12)] A report shall be submitted to the Senate Standing Committee on 24
Appropriations and Revenue and the House Standing Committee on Appropriations 25
and Revenue or the Interim Joint Committee on Appropriations and Revenue by the 26
tenth day following the end of each calendar quarter by the Cabinet for Economic 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 16 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
Development, beginning July 10, 2026, and ending when no further applications for 1
a loss payment may be submitted under KRS 154.20-589(7), including: 2
(a) The name of each qualified lender receiving a loss payment; 3
(b) The dollar amount of the payment received; 4
(c) A description of the loan terms; and 5
(d) An explanation regarding why the loss payment was needed. 6
SECTION 4. A NEW SECTION OF KRS CHAPTER 45 IS CREATED TO 7
READ AS FOLLOWS: 8
(1) As used in this section: 9
(a) "Cabinet" means the Public Protection Cabinet; 10
(b) "Cost or fee for administrative purposes" means any expenditure that is 11
not: 12
1. Direct aid to a Kentucky resident or a small business; or 13
2. A processing fee imposed by a merchant bank or credit card company; 14
(c) "Qualified nonprofit organization" means a tax-exempt entity under 26 15
U.S.C. sec. 501(c)(3) or (4) that: 16
1. Agrees to use all grants of moneys from the Kentucky contribution 17
trust fund established in subsection (2) of this section to serve 18
Kentucky residents directly impacted by the tornadoes or flooding; and 19
2. Provides: 20
a. Food; 21
b. Clothing; 22
c. Shelter; 23
d. Utilities; 24
e. Medical expenses; 25
f. Household needs; 26
g. Other necessities of life; or 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 17 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
h. Long-term financial or rebuilding assistance; and 1
(d) "Small business" means any business entity organized for profit, including 2
a sole proprietorship, partnership, limited partnership, corporation, limited 3
liability company, joint venture, association, or cooperative that: 4
1. Had fifty (50) or fewer full-time employees on December 9, 2021; 5
2. Is not an affiliate or subsidiary of a larger corporate structure, unless 6
the total number of employees of all the affiliates and subsidiaries 7
within that structure is fifty (50) or fewer; 8
3. Had at least one (1) business location in an area named in the 9
Presidential Declaration of a Major Disaster, designated FEMA-4630-10
DR-KY on December 9, 2021, or the Presidential Declaration of a 11
Major Disaster, designated FEMA-4663-DR-KY on July 26, 2022; 12
4. a. Sustained damage to a business location described in 13
subparagraph 3. of this paragraph; or 14
b. Experienced business interruption as a result of the severe 15
weather events of December 10 and 11, 2021, or from July 26 to 16
August 11, 2022; 17
5. a. Agrees to use the grant of moneys for a business location 18
described in subparagraph 3. of this paragraph; and 19
b. Uses the grant of moneys to maintain business operations or 20
repair or rebuild that business location; 21
6. Is presently in operation or will be in operation; and 22
7. Is in good standing with the Kentucky Department of Revenue and the 23
Kentucky Secretary of State. 24
(2) The Kentucky contribution trust fund is established as a trust and agency account 25
in the State Treasury and shall be administered by the cabinet. 26
(3) The fund shall consist of all moneys: 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 18 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
(a) Solicited by any person within the Governor's General Cabinet described in 1
KRS 11.060 or employee thereof, within his or her official capacity; 2
(b) Donated to or held by the Commonwealth, including but not limited to any 3
moneys associated with the: 4
1. Team Kentucky fund established by the Governor; 5
2. Team western Kentucky tornado relief fund established by the 6
Governor following the December 2021 storms and tornadoes that 7
occurred in the western Kentucky region; and 8
3. Team eastern Kentucky flood relief fund established by the Governor 9
following the July 2022 storms and flooding that occurred in the 10
eastern Kentucky region; and 11
(c) Not required by statute to be deposited in another fund. 12
(4) (a) Moneys deposited in the fund shall be accounted for separately based on the 13
purpose for which the moneys were solicited. 14
(b) When moneys are deposited from the funds described in subsection (3)(b) of 15
this section, the moneys hereby are appropriated for the purposes provided 16
in this section. 17
(c) All other moneys shall be maintained in the fund until appropriated by the 18
General Assembly. 19
(d) All recipients of a grant of moneys from this fund shall certify that they are 20
in compliance with the requirements of this section prior to receiving any 21
moneys. 22
(e) Applications providing fraudulent information shall be referred by the 23
Public Protection Cabinet to the Office of Attorney General, Office of 24
Special Prosecutions. 25
(5) Notwithstanding KRS 45.229, fund amounts not appropriated at the close of a 26
fiscal year shall not lapse but shall be carried forward into the next fiscal year. 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 19 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
(6) The cabinet shall: 1
(a) Develop a process to review and accept or deny applications for grants of 2
moneys from the fund based on eligibility requirements under this section 3
for each type of solicited donation; 4
(b) 1. Prepare warrants on the State Treasury for any grant of moneys 5
approved by the cabinet, including a direct payment for funeral 6
expenses; 7
2. Coordinate the direct payment for funeral expenses; and 8
3. Obtain all necessary information from the Kentucky Office of Vital 9
Statistics, coroners, or other appropriate entities to verify eligibility for 10
any direct payment for funeral expenses; 11
(c) Ensure delivery of the moneys to the applicant or the direct payment for 12
funeral expenses; and 13
(d) Promulgate administrative regulations in accordance with KRS Chapter 14
13A to provide application forms, application deadlines, and other 15
administrative procedures necessary to fulfill the duties required by this 16
section. 17
(7) Related to the team western Kentucky tornado relief donations: 18
(a) Moneys solicited shall be used to assist an individual or a small business 19
directly impacted by the storms and tornadoes on December 10 and 11, 20
2021; 21
(b) An eligible applicant for a grant of moneys from the fund shall be a: 22
1. Person who is responsible for the payment of funeral expenses for 23
another individual whose death was directly related to the storms and 24
tornadoes and any grant issued shall be a direct payment to the entity 25
providing the funeral services in an amount not to exceed ten 26
thousand dollars ($10,000); 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 20 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
2. Kentucky resident who: 1
a. Resides in an area named in the Presidential Declaration of a 2
Major Disaster, designated FEMA-4630-DR-KY; and 3
b. Was directly impacted by the storms and tornadoes; 4
3. Qualified nonprofit organization; or 5
4. Small business; and 6
(c) A grant of moneys shall not be issued for any: 7
1. Cost or fee for administrative purposes; 8
2. Expenditure in which the applicant receives benefits from a federal 9
source, including but not limited to payments from the Federal 10
Emergency Management Agency; 11
3. Payment to a nonresident of Kentucky; or 12
4. Payment to a nonprofit organization, other than a qualified nonprofit 13
organization. 14
(8) Related to the team eastern Kentucky flood relief donations: 15
(a) Moneys solicited shall be used to assist an individual or a small business 16
directly impacted by the storms and flooding that began on July 26, 2022, 17
and generated multiple rounds of heavy torrential rain, resulting in 18
flooding, flash flooding, mudslides, and landslides; 19
(b) An eligible applicant for a grant of moneys from the fund shall be a: 20
1. Person who is responsible for the payment of funeral expenses for 21
another individual whose death was directly related to the storms and 22
flooding and any grant issued shall be a direct payment to the entity 23
providing the funeral services in an amount not to exceed ten 24
thousand dollars ($10,000); 25
2. Kentucky resident who: 26
a. Resides in an area named in the Presidential Declaration of a 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 21 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
Major Disaster, designated FEMA-4663-DR-KY; and 1
b. Was directly impacted by the flooding, mudslides, and landslides; 2
3. Qualified nonprofit organization; or 3
4. Small business; and 4
(c) A grant of moneys shall not be issued for any: 5
1. Cost or fee for administrative purposes; 6
2. Expenditure in which the applicant receives benefits from a federal 7
source, including but not limited to payments from the Federal 8
Emergency Management Agency; 9
3. Payment to a nonresident of Kentucky; or 10
4. Payment to a nonprofit organization, other than a qualified nonprofit 11
organization. 12
(9) (a) Any qualified nonprofit organization or small business that receives a grant 13
of moneys from the fund shall document expenditures made using those 14
moneys. 15
(b) The documentation shall be maintained for at least four (4) years following 16
the distribution of the moneys and shall be subject to inspection during that 17
time by the cabinet. 18
(c) All documents and materials submitted to either the Commonwealth or the 19
cabinet shall be considered a public record subject the Kentucky Open 20
Records Act, KRS 61.870 to 61.884. 21
(10) (a) As used in this subsection, "affiliation" means the relationship between: 22
1. Members of a family, including brothers and sisters of the whole or 23
half blood, spouse, ancestors, and lineal descendants of an individual; 24
2. An individual and a corporation, of which more than fifty percent 25
(50%) in value of the outstanding stock is owned, directly or indirectly, 26
by or for that individual; 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 22 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
3. An individual and a limited liability company or a partnership, of 1
which more than fifty percent (50%) of the capital interest or profits 2
are owned or controlled, directly or indirectly, by or for that 3
individual; or 4
4. An individual that is a grantor or a beneficiary of a trust and the 5
fiduciary of that trust. 6
(b) The secretary of the Public Protection Cabinet shall report the following 7
information beginning on the tenth day of the first month following the 8
effective date of this Act and on the tenth day of each month thereafter: 9
1. Information related to moneys deposited into the fund, including but 10
not limited to: 11
a. The name of the person, member, or employee soliciting the 12
moneys; 13
b. The purpose of the solicitation; 14
c. The type of entity making the donation, including a business 15
entity, nonprofit or charitable organization, or individual; and 16
d. The state and country of origin of the entity; and 17
2. Information related to expenditures from the fund, including but not 18
limited to: 19
a. The name and address of the person or business entity receiving 20
any moneys from the fund; 21
b. The amount of moneys received; 22
c. The date of issuance of the moneys; 23
d. The method of delivery of the moneys; 24
e. The purpose for which the moneys were granted; and 25
f. A statement regarding the affiliation, if any, between the person, 26
member, or employee soliciting the moneys and the person or 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 23 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
business entity receiving the moneys. 1
(c) The report required by paragraph (b) of this subsection shall be submitted 2
to the Senate Standing Committee on Appropriations and Revenue and the 3
House Standing Committee on Appropriations and Revenue or the Interim 4
Joint Committee on Appropriations and Revenue. 5
Section 5. KRS 12.270 is amended to read as follows: 6
(1) The secretary of each cabinet shall: 7
(a) Be a member of the Governor's Cabinet and shall serve as the Governor's 8
liaison in carrying out the responsibilities for overall direction and 9
coordination of the departments, boards, and commissions included in the 10
related cabinet; 11
(b) Recommend to the Governor desired reorganization affecting the related 12
cabinet; 13
(c) Advise the Governor on executive actions, legislative matters, and other steps 14
that may be desirable for better program service; 15
(d) Evaluate and pass upon all budget requests originated by the departments, 16
boards, and commissions within the related cabinet; 17
(e) Advise the Governor on the appointment of commissioners and heads of units 18
included in the related cabinet, except for those whose election or selection is 19
otherwise provided for by law. 20
(2) Except as provided by Section 4 of this Act, each secretary is authorized to accept 21
and expend funds from any source, whether public or private, in support of the 22
duties and responsibilities of the related cabinet. 23
(3) Each secretary shall have any and all necessary power and authority, subject to 24
appropriate provisions of the statutes, to create such positions and to employ the 25
necessary personnel in such positions to enable the secretary to perform the 26
functions of his or her office. 27 UNOFFICIAL COPY 23 RS SB 99/EN
Page 24 of 24
SB009920.100 - 1278 - XXXX 3/16/2023 8:55 PM Engrossed
(4) Each secretary shall have exclusive control and direction over the administration of 1
the related cabinet programs as required by law. 2
Section 6. 2022 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 5, is amended to read as 3
follows: 4
There hereby is appropriated Restricted Funds from the East Kentucky State Aid 5
Funding for Emergencies (EKSAFE) fund in the amount of $40,000,000 in fiscal year 6
2022-2023 to the Military Affairs budget unit to be used by the Division of Emergency 7
Management for the advancement of moneys to school districts and nonprofit or public 8
utility service providers for the purposes set out in subsection (8)(a) of Section 1 of this 9
Act. No moneys from this appropriation shall be awarded until all moneys appropriated 10
in Section 4 of this Act have been awarded.[ The Restricted Funds appropriation balance 11
that has not been awarded for this purpose as of January 7, 2023, shall lapse to the 12
Budget Reserve Trust Fund Account (KRS 48.705).] 13
Section 7. Whereas relief funds provide vital assistance to individuals, families, 14
and businesses that have suffered from natural disasters, and timely and efficient 15
allocation of these funds to communities is essential to the public good, an emergency is 16
declared to exist, and this Act takes effect upon its passage and approval by the Governor 17
or upon its otherwise becoming a law. 18