CHAPTER 91
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CHAPTER 91
( SB 99 )
AN ACT relating to disaster relief funding and declaring an emergency.
Be it enacted by the General Assembly of the Commonwealth of Kentucky:
SECTION 1. A NEW SECTION OF KRS CHAPTER 12 IS CREATED TO READ AS FOLLOWS:
(1) As used in this section, "relief fund" means a fund created on- or off-budget by statute, a government
agency, cabinet secretary, appointed or elected official, or agency head to accept and expend funds received
from any source for the purpose of providing relief to individuals and entities impacted by an emergency.
(2) The agency head, cabinet secretary, or appointed or elected official that administers a relief fund shall
provide a report and analysis of all relief funds to the Legislative Research Commission no later than the
end of each fiscal year.
(3) The analysis and report of relief funds shall include but not be limited to:
(a) A list of the total funds received or pledged, containing the following information:
1. The type of entity, such as business, nonprofit or charitable organization, or individual; and
2. The state and country of origin of the entity;
(b) A list of the expenditures or obligated or encumbered funds from the relief fund by:
1. Recipient;
2. Type of entity;
3. Total amount disbursed;
4. Dates of issuance;
5. Method of delivery; and
6. Purpose of assistance;
(c) The statutory and constitutional authority to raise revenue and expend funds from a state agency to
individuals and entities absent an appropriation as required by Section 230 of the Constitution of
Kentucky;
(d) The program or fund guidelines, application, and procedures established for individuals and entities
seeking assistance from the relief fund;
(e) The program or fund guidelines and procedures established for the allocation of funds, including:
1. The composition of each board, commission, or governing body created to administer the fund
or program;
2 The roles, assigned responsibilities, and authority of the entities involved in the administration
of funds;
3. Any standards or procedures used to determine:
a. Award amounts;
b. Eligibility criteria;
c. Types of assistance;
d. Prioritization of applications; and
e. Fraud and risk mitigation procedures for administration of the relief fund;
(f) Any solicitation, analysis, and evaluation procedures for obligation of funds for future expenditures
for long-term recovery projects or partnerships with public and private organizations; and
(g) Any plans for use of future receipts, and a timeline for dissolution of the program and fund. ACTS OF THE GENERAL ASSEMBLY 2
Section 2. KRS 39A.303 is amended to read as follows:
(1) The East Kentucky State Aid Funding for Emergencies (EKSAFE) fund is established and shall be:
(a) Administered by the Department of Military Affairs, Division of Emergency Management, in
accordance with this section;
(b) A separate fund to provide financial assistance for those located in the areas named in the Presidential
Declaration of a Major Disaster, designated FEMA-4663-DR-KY, and impacted by the July 2022
storms and flooding that occurred in the eastern Kentucky region; and
(c) Used to provide financial support to those located in the areas named in the Presidential Declaration of
a Major Disaster, designated FEMA-4663-DR-KY, in the eastern Kentucky region to recover from the
devastation caused by the storms and flooding.
(2) The Department of Military Affairs or the Division of Emergency Management shall not publicly advertise or
solicit contributions from the general public that could potentially impact fundraising efforts of not-for-profit
disaster relief agencies.
(3) The EKSAFE fund may receive state appropriations, gifts, grants, federal funds, and any other funds, both
public and private.
(4) Moneys in the EKSAFE fund as of June 30, 2023, through June 30, 2026[2024], shall not lapse and shall carry
forward until June 30, 2026[2024].
(5) Any interest earnings of the EKSAFE fund shall become a part of the EKSAFE fund and shall not lapse.
(6) (a) Eligibility to receive financial support from the EKSAFE fund shall be limited to a:
1. City, county, urban-county government, consolidated local government, unified local
government, or charter county government;
2. Nonprofit or public utility service provider;
3. State agency; or
4. School district;
that has disaster-related needs as a result of the devastation experienced from the July 2022 storms and
flooding.
(b) An eligible recipient may receive moneys for expenses to provide disaster and recovery relief if the
recipient:
1. Is located in the areas named in the Presidential Declaration of a Major Disaster, designated
FEMA-4663-DR-KY, relating to the storms and flooding that occurred in July 2022; and
2. Has disaster-related needs in response to the storms and flooding that occurred in July 2022.
(c) The financial support shall not cover any new construction inside the one hundred (100) year floodplain
area.
(d) 1. Eligible expenses shall be those used to support disaster and recovery relief, including but not
limited to:
a. i.[1.] Replacement or renovation of publicly owned buildings damaged by the storms and
flooding, but only to the extent of damage directly caused by the storms and
flooding; and
ii. Replacement, renovation, or expansion of an essential government facility that
was used for existing services at the time of the disaster, including police, fire,
and ambulance stations, functioning above capacity at the time of application,
but only to the extent of damage directly caused by the storms and flooding;
b.[2.] Reimbursement for services, personnel, and equipment provided during the response and
recovery to communities impacted by the storms and flooding, but only to the extent of
damage directly caused by the storms and flooding; CHAPTER 91
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c.[3.] Funding to cities, counties, and publicly owned utilities for the costs of replacement or
repair of publicly owned buildings and their contents due to the damage from the storms
and flooding, but only to the extent of damage directly caused by the storms and flooding;
d.[4.] Assistance to cities and counties for expenses related to planning efforts for rebuilding
and recovering from the damage, but only to the extent of damage directly caused by the
storms and flooding;
e.[5.] Assistance to support disaster recovery and relief needs of local school districts, but only
to the extent of loss or damage directly caused by the storms and flooding, including but
not limited to:
i.[a.] Financial support for school districts that will experience a default in bond
payments; and
ii.[b.] Financial support to assist school districts with building and tangible property
replacement needs; and
f.[6.] Contracted employees to administer and report on the funds.
2. a. Moneys used for the eligible expenses described in subparagraph 1.a.i. or ii. of this
paragraph shall be:
i. Issued in the form of a loan; and
ii. Used to replace, renovate, or expand an essential government facility that was
used for existing services at the time of the disaster at up to one hundred twenty
percent (120%) of capacity at the time of application for proceeds.
b. Any loan issued under subdivision a. of this subparagraph shall contain the following
terms:
i. An interest rate of zero percent;
ii. A time for repayment of no longer than twenty (20) years; and
iii. A repayment structure of quarterly payments due on the thirtieth day of March,
June, September, and December of each year until the loan is repaid.
c. The recipient of any loan issued under subdivision a. of this subparagraph shall report
to the Department of Military Affairs, Division of Emergency Management, on a
quarterly basis:
i. The amount of any insurance proceeds received related to the replacement,
renovation, or expansion of an essential government facility for which the loan
was granted; and
ii. The name and address of the insurance provider.
d. No later than November 1, 2023, and each November 1 thereafter, the Department of
Military Affairs, Division of Emergency Management, shall compile the information
reported by each recipient under subdivision c. of this subparagraph and report the
compiled information to the Interim Joint Committee on Appropriations and Revenue.
(7) Each recipient of moneys from the EKSAFE fund, including any agency of Kentucky state government, shall:
(a) Retain documentation of a timely application for any applicable reimbursement, including but not
limited to federal emergency disaster grant assistance, other financial disaster assistance, and insurance
proceeds; and
(b) Adhere to the terms of the EKSAFE fund regarding reimbursement to the Commonwealth if funds from
other sources are subsequently received after the receipt of financial assistance from the
Commonwealth.
(8) (a) Moneys in the EKSAFE fund may be used for the advancement of moneys to cities, counties, school
districts, and nonprofit or public utility service providers experiencing strained fiscal liquidity while
awaiting reimbursement from federal emergency management assistance or insurance claims and shall
not be used for capital improvements. ACTS OF THE GENERAL ASSEMBLY 4
(b) Reimbursement of the advancement under paragraph (a) of this subsection shall:
1. Be determined by the:
a. State-local finance officer within the Department for Local Government for cities and
counties, and nonprofit or public utilities; and
b. Department of Education for school districts; and
2. Include a quarterly accounting of the advancement released and the outstanding balance through
June 30, 2026[2024].
(9) (a) 1. If a recipient of moneys from the EKSAFE fund subsequently receives moneys from any other
source, the recipient shall reimburse the Commonwealth for the amount of the moneys received
from the EKSAFE fund.
2.[(b)] Before July 1, 2026[2024], all moneys reimbursed to the Commonwealth under subparagraph 1.
of this paragraph[ (a) of this subsection] shall be deposited in the EKSAFE fund within thirty
(30) days, and shall be continuously appropriated.
3.[(c)] After June 30, 2026[2024], all moneys reimbursed to the Commonwealth under subparagraph 1.
of this paragraph[ (a) of this subsection] shall be deposited into the budget reserve trust fund
account established in KRS 48.705 within thirty (30) days.
(b) 1. If a recipient receives moneys in the form of a loan under subsection (6)(d)2. of this section,
the recipient shall reimburse the Commonwealth for the amount of the moneys received from
the EKSAFE fund according to the repayment structure under subsection (6)(d)2.b.iii of this
section.
2. Before July 1, 2026, all moneys reimbursed to the Commonwealth under subparagraph 1. of
this paragraph shall be deposited in the EKSAFE fund within thirty (30) days, and shall be
continuously appropriated.
3. After June 30, 2026, all moneys reimbursed to the Commonwealth under subparagraph 1. of
this paragraph shall be deposited into the budget reserve trust fund account established in
KRS 48.705 within thirty (30) days.
(10) The Division of Emergency Management shall promulgate administrative regulations to carry out this section.
(11) The following reports shall be submitted to the Senate Standing Committee on Appropriations and Revenue
and the House Standing Committee on Appropriations and Revenue or the Interim Joint Committee on
Appropriations and Revenue by the tenth day of each month, beginning September 10, 2022, and ending July
10, 2026[2024]:
(a) A report from the Office of State Budget Director that includes:
1. The name of each recipient of moneys from the EKSAFE fund;
2. The dollar amount of moneys issued and the dates of issuance;
3. A description of how the moneys were used; and
4. A list of all requests:
a. Submitted, including the amount requested;
b. Denied, including a description of the reason for the denial; and
c. Where the amount awarded was greater than or less than the amount requested, including
a description of the reason for the increase or decrease; and
(b) A report from the Department of Education that includes:
1. The name of each school district receiving moneys from the EKSAFE fund;
2. The dollar amount of moneys issued and the dates of issuance;
3. A description of how the moneys were used; and
4. A list of all requests:
a. Submitted, including the amount requested; CHAPTER 91
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b. Denied, including a description of the reason for the denial; and
c. Where the amount awarded was greater than or less than the amount requested, including
a description of the reason for the increase or decrease.
Section 3. KRS 39A.305 is amended to read as follows:
(1) The West Kentucky State Aid Funding for Emergencies (WKSAFE) fund is established and shall be:
(a) Administered by the Department of Military Affairs, Division of Emergency Management, in
accordance with this section;
(b) A separate fund to provide financial assistance for those impacted by the December 2021 storms and
tornadoes that occurred in the west Kentucky region; and
(c) Used to provide financial support to the west Kentucky region to recover from the devastation caused
by the storms and tornadoes.
(2) The Department of Military Affairs or the Division of Emergency Management shall not publicly advertise or
solicit contributions from the general public that could potentially impact fundraising efforts of not-for-profit
disaster relief agencies.
(3) The WKSAFE fund may receive state appropriations, gifts, grants, federal funds, and any other funds, both
public and private.
(4) Moneys in the WKSAFE fund as of June 30, 2022, through June 30, 2026, shall not lapse and shall carry
forward until June 30, 2026.
(5) Any interest earnings of the WKSAFE fund shall become a part of the WKSAFE fund and shall not lapse.
(6) [(a) ]Eligibility to receive financial support from the WKSAFE fund shall be limited to a:
(a)[1.] City, county, urban-county government, consolidated local government, unified local government, or
charter county government;
(b)[2.] Nonprofit or public utility service provider;
(c)[3.] State agency;
(d)[4.] School district; or
(e)[5.] Qualified lender as defined in KRS 154.20-580;
that has disaster-related needs as a result of the devastation experienced from the December 2021 storms and
tornadoes.
(7)[(b)] An eligible recipient may receive moneys for expenses to provide disaster and recovery relief if the
recipient:
(a)[1.] Is located in the areas named in a Presidential Declaration of Emergency relating to the storms and
tornadoes that occurred in December 2021; and
(b)[2.] Has disaster-related needs in response to the storms and tornadoes that occurred in December 2021.
(8)[(c)] Eligible expenses shall be those used to support disaster and recovery relief, including but not limited
to:
(a) 1. Replacement or renovation of publicly owned buildings damaged by the storms and tornadoes,
but only to the extent of damage directly caused by the storms and tornadoes; and
2. Replacement, renovation, or expansion of an essential government facility that was used for
existing services at the time of the disaster, including police, fire, and ambulance stations,
functioning above capacity at the time of application, but only to the extent of damage directly
caused by the storms and tornadoes;
(b)[2.] Reimbursement for services, personnel, and equipment provided during the response and recovery to
communities impacted by the storms and tornadoes, but only to the extent of damage directly caused by
the storms and tornadoes; ACTS OF THE GENERAL ASSEMBLY 6
(c)[3.] Funding to cities, counties, and publicly owned utilities for the costs of replacement or repair of
publicly owned buildings and their contents due to the damage from the storms and tornadoes, but only
to the extent of damage directly caused by the storms and tornadoes;
(d)[4.] Assistance to cities and counties for expenses related to planning efforts for rebuilding and recovering
from the damage, but only to the extent of damage directly caused by the storms and tornadoes;
(e)[5.] Assistance to support disaster recovery and relief needs of local school districts, but only to the extent
of damage directly caused by the storms and tornadoes, including but not limited to:
1.[a.] Financial support for school districts that will experience a default in bond payments; and
2.[b.] Financial support to assist school districts with building and tangible property replacement
needs;
(f)[6.] Contracted employees to administer and report on the funds; and
(g) 1.[7. a.] Financial assistance to cities, counties, and school districts for realized revenue losses, but
only to the extent the loss is directly caused by the storms and tornadoes, and to be determined
on a quarterly basis by the:
a.[i.] State-local finance officer within the Department for Local Government for cities and
counties; and
b.[ii.] Department of Education for school districts.
2.[b.] The financial assistance determined in subparagraph 1. of this paragraph[subdivision a. of this
subparagraph] shall be limited to:
a.[i.] One hundred percent (100%) of the lost revenue in fiscal year 2022-2023;
b.[ii.] Sixty-six percent (66%) of the lost revenue in fiscal year 2023-2024; and
c.[iii.] Thirty-three percent (33%) of the lost revenue in fiscal year 2024-2025.
(9) (a) Moneys used for the eligible expenses described in subsection (8)(a)1. or 2. of this section shall be:
1. Issued in the form of a loan; and
2. Used to replace, renovate, or expand an essential government facility that was used for
existing services at the time of the disaster at up to one hundred twenty percent (120%) of
capacity at the time of application for proceeds.
(b) Any loan issued under paragraph (a) of this subsection shall contain the following terms:
1. An interest rate of zero percent;
2. A time for repayment of no longer than twenty (20) years; and
3. A repayment structure of quarterly payments due on the thirtieth day of March, June,
September, and December of each year until the loan is repaid.
(c) The recipient of any loan issued under paragraph (a) of this subsection shall report to the
Department of Military Affairs, Division of Emergency Management, on a quarterly basis:
1. The amount of any insurance proceeds received related to the replacement, renovation, or
expansion of an essential government facility for which the loan was granted; and
2. The name and address of the insurance provider.
(d) No later than November 1, 2023, and each November 1 thereafter, the Department of Military
Affairs, Division of Emergency Management, shall compile the information reported by each
recipient under paragraph (c) of this subsection and report the compiled information to the Interim
Joint Committee on Appropriations and Revenue.
(10)[(7)] Each recipient of moneys from the WKSAFE fund, including any agency of Kentucky state
government, shall:
(a) Timely apply for federal emergency disaster grant assistance, other financial disaster assistance, and
insurance proceeds; and CHAPTER 91
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(b) Adhere to the terms of the WKSAFE fund regarding reimbursement to the Commonwealth if funds
from other sources are subsequently received after the receipt of financial assistance from the
Commonwealth.
(11)[(8)] (a) Moneys in the WKSAFE fund may be used for the advancement of moneys to cities, counties,
and nonprofit or public utility service providers experiencing strained fiscal liquidity while awaiting
reimbursement from federal emergency management assistance or insurance claims and shall not be
used for capital improvements.
(b) Reimbursement of the advancement under paragraph (a) of this subsection shall:
1. Be determined by the:
a. State-local finance officer within the Department for Local Government for cities and
counties, and nonprofit or public utilities; and
b. Department of Education for school districts; and
2. Include a quarterly accounting of the advancement released and the outstanding balance through
June 30, 2026.
(12)[(9)] (a) 1. If a recipient of moneys from the WKSAFE fund subsequently receives moneys from any
other source, the recipient shall reimburse the Commonwealth for the amount of the moneys
received from the WKSAFE fund.
2.[(b)] Before July 1, 2026, all moneys reimbursed to the Commonwealth under subparagraph 1. of this
paragraph[ (a) of this subsection] shall be deposited in the WKSAFE[West Kentucky State Aid
Funding for Emergencies (WKSAFE)] fund within thirty (30) days, and shall be continuously
appropriated.
3.[(c)] After June 30, 2026, all moneys reimbursed to the Commonwealth under subparagraph 1. of
this paragraph[ (a) of this subsection] shall be deposited into the budget reserve trust fund
account established in KRS 48.705 within thirty (30) days.
(b) 1. If a recipient receives moneys in the form of a loan under subsection (9)(a) of this section, the
recipient shall reimburse the Commonwealth for the amount of the moneys received from the
WKSAFE fund according to the repayment structure under subsection (9)(b)3. of this section.
2. Before July 1, 2026, all moneys reimbursed to the Commonwealth under subparagraph 1. of
this paragraph shall be deposited in the WKSAFE fund within thirty (30) days, and shall be
continuously appropriated.
3. After June 30, 2026, all moneys reimbursed to the Commonwealth under subparagraph 1. of
this paragraph shall be deposited into the budget reserve trust fund account established in
KRS 48.705 within thirty (30) days.
(13)[(10)] The Division of Emergency Management shall promulgate administrative regulations to carry out this
section.
(14)[(11)] The following reports shall be submitted to the Senate Standing Committee on Appropriations and
Revenue and the House Standing Committee on Appropriations and Revenue or the Interim Joint Committee
on Appropriations and Revenue by the tenth day of each month, beginning May 10, 2022, and ending July 10,
2026:
(a) A report from the Office of State Budget Director that includes:
1. The name of each recipient of moneys from the WKSAFE fund;
2. The dollar amount of moneys issued and the dates of issuance;
3. A description of how the moneys were used; and
4. A list of all requests:
a. Submitted, including the amount requested;
b. Denied, including a description of the reason for the denial; and ACTS OF THE GENERAL ASSEMBLY 8
c. Where the amount awarded was greater than or less than the amount requested, including
a description of the reason for the increase or decrease; and
(b) A report from the Department of Education that includes:
1. The name of each school district receiving moneys from the WKSAFE fund;
2. The dollar amount of moneys issued and the dates of issuance;
3. A description of how the moneys were used; and
4. A list of all requests:
a. Submitted, including the amount requested;
b. Denied, including a description of the reason for the denial; and
c. Where the amount awarded was greater than or less than the amount requested, including
a description of the reason for the increase or decrease.
(15)[(12)] A report shall be submitted to the Senate Standing Committee on Appropriations and Revenue and the
House Standing Committee on Appropriations and Revenue or the Interim Joint Committee on Appropriations
and Revenue by the tenth day following the end of each calendar quarter by the Cabinet for Economic
Development, beginning July 10, 2026, and ending when no further applications for a loss payment may be
submitted under KRS 154.20-589(7), including:
(a) The name of each qualified lender receiving a loss payment;
(b) The dollar amount of the payment received;
(c) A description of the loan terms; and
(d) An explanation regarding why the loss payment was needed.
SECTION 4. A NEW SECTION OF KRS CHAPTER 45 IS CREATED TO READ AS FOLLOWS:
(1) As used in this section:
(a) "Cabinet" means the Public Protection Cabinet;
(b) "Cost or fee for administrative purposes" means any expenditure that is not:
1. Direct aid to a Kentucky resident or a small business; or
2. A processing fee imposed by a merchant bank or credit card company;
(c) "Qualified nonprofit organization" means a tax-exempt entity under 26 U.S.C. sec. 501(c)(3) or (4)
that:
1. Agrees to use all grants of moneys from the Kentucky contribution trust fund established in
subsection (2) of this section to serve Kentucky residents directly impacted by the tornadoes or
flooding; and
2. Provides:
a. Food;
b. Clothing;
c. Shelter;
d. Utilities;
e. Medical expenses;
f. Household needs;
g. Other necessities of life; or
h. Long-term financial or rebuilding assistance; and
(d) "Small business" means any business entity organized for profit, including a sole proprietorship,
partnership, limited partnership, corporation, limited liability company, joint venture, association, or
cooperative that: CHAPTER 91
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1. Had fifty (50) or fewer full-time employees on December 9, 2021;
2. Is not an affiliate or subsidiary of a larger corporate structure, unless the total number of
employees of all the affiliates and subsidiaries within that structure is fifty (50) or fewer;
3. Had at least one (1) business location in an area named in the Presidential Declaration of a
Major Disaster, designated FEMA-4630-DR-KY on December 9, 2021, or the Presidential
Declaration of a Major Disaster, designated FEMA-4663-DR-KY on July 26, 2022;
4. a. Sustained damage to a business location described in subparagraph 3. of this
paragraph; or
b. Experienced business interruption as a result of the severe weather events of December
10 and 11, 2021, or from July 26 to August 11, 2022;
5. a. Agrees to use the grant of moneys for a business location described in subparagraph 3.
of this paragraph; and
b. Uses the grant of moneys to maintain business operations or repair or rebuild that
business location;
6. Is presently in operation or will be in operation; and
7. Is in good standing with the Kentucky Department of Revenue and the Kentucky Secretary of
State.
(2) The Kentucky contribution trust fund is established as a trust and agency account in the State Treasury and
shall be administered by the cabinet.
(3) The fund shall consist of all moneys:
(a) Solicited by any person within the Governor's General Cabinet described in KRS 11.060 or employee
thereof, within his or her official capacity;
(b) Donated to or held by the Commonwealth, including but not limited to any moneys associated with
the:
1. Team Kentucky fund established by the Governor;
2. Team western Kentucky tornado relief fund established by the Governor following the
December 2021 storms and tornadoes that occurred in the western Kentucky region; and
3. Team eastern Kentucky flood relief fund established by the Governor following the July 2022
storms and flooding that occurred in the eastern Kentucky region; and
(c) Not required by statute to be deposited in another fund.
(4) (a) Moneys deposited in the fund shall be accounted for separately based on the purpose for which the
moneys were solicited.
(b) When moneys are deposited from the funds described in subsection (3)(b) of this section, the moneys
hereby are appropriated for the purposes provided in this section.
(c) All other moneys shall be maintained in the fund until appropriated by the General Assembly.
(d) All recipients of a grant of moneys from this fund shall certify that they are in compliance with the
requirements of this section prior to receiving any moneys.
(e) Applications providing fraudulent information shall be referred by the Public Protection Cabinet to
the Office of Attorney General, Office of Special Prosecutions.
(5) Notwithstanding KRS 45.229, fund amounts not appropriated at the close of a fiscal year shall not lapse but
shall be carried forward into the next fiscal year.
(6) The cabinet shall:
(a) Develop a process to review and accept or deny applications for grants of moneys from the fund
based on eligibility requirements under this section for each type of solicited donation; ACTS OF THE GENERAL ASSEMBLY 10
(b) 1. Prepare warrants on the State Treasury for any grant of moneys approved by the cabinet,
including a direct payment for funeral expenses;
2. Coordinate the direct payment for funeral expenses; and
3. Obtain all necessary information from the Kentucky Office of Vital Statistics, coroners, or
other appropriate entities to verify eligibility for any direct payment for funeral expenses;
(c) Ensure delivery of the moneys to the applicant or the direct payment for funeral expenses; and
(d) Promulgate administrative regulations in accordance with KRS Chapter 13A to provide application
forms, application deadlines, and other administrative procedures necessary to fulfill the duties
required by this section.
(7) Related to the team western Kentucky tornado relief donations:
(a) Moneys solicited shall be used to assist an individual or a small business directly impacted by the
storms and tornadoes on December 10 and 11, 2021;
(b) An eligible applicant for a grant of moneys from the fund shall be a:
1. Person who is responsible for the payment of funeral expenses for another individual whose
death was directly related to the storms and tornadoes and any grant issued shall be a direct
payment to the entity providing the funeral services in an amount not to exceed ten thousand
dollars ($10,000);
2. Kentucky resident who:
a. Resides in an area named in the Presidential Declaration of a Major Disaster,
designated FEMA-4630-DR-KY; and
b. Was directly impacted by the storms and tornadoes;
3. Qualified nonprofit organization; or
4. Small business; and
(c) A grant of moneys shall not be issued for any:
1. Cost or fee for administrative purposes;
2. Expenditure in which the applicant receives benefits from a federal source, including but not
limited to payments from the Federal Emergency Management Agency;
3. Payment to a nonresident of Kentucky; or
4. Payment to a nonprofit organization, other than a qualified nonprofit organization.
(8) Related to the team eastern Kentucky flood relief donations:
(a) Moneys solicited shall be used to assist an individual or a small business directly impacted by the
storms and flooding that began on July 26, 2022, and generated multiple rounds of heavy torrential
rain, resulting in flooding, flash flooding, mudslides, and landslides;
(b) An eligible applicant for a grant of moneys from the fund shall be a:
1. Person who is responsible for the payment of funeral expenses for another individual whose
death was directly related to the storms and flooding and any grant issued shall be a direct
payment to the entity providing the funeral services in an amount not to exceed ten thousand
dollars ($10,000);
2. Kentucky resident who:
a. Resides in an area named in the Presidential Declaration of a Major Disaster,
designated FEMA-4663-DR-KY; and
b. Was directly impacted by the flooding, mudslides, and landslides;
3. Qualified nonprofit organization; or
4. Small business; and
(c) A grant of moneys shall not be issued for any: CHAPTER 91
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1. Cost or fee for administrative purposes;
2. Expenditure in which the applicant receives benefits from a federal source, including but not
limited to payments from the Federal Emergency Management Agency;
3. Payment to a nonresident of Kentucky; or
4. Payment to a nonprofit organization, other than a qualified nonprofit organization.
(9) (a) Any qualified nonprofit organization or small business that receives a grant of moneys from the fund
shall document expenditures made using those moneys.
(b) The documentation shall be maintained for at least four (4) years following the distribution of the
moneys and shall be subject to inspection during that time by the cabinet.
(c) All documents and materials submitted to either the Commonwealth or the cabinet shall be
considered a public record subject the Kentucky Open Records Act, KRS 61.870 to 61.884.
(10) (a) As used in this subsection, "affiliation" means the relationship between:
1. Members of a family, including brothers and sisters of the whole or half blood, spouse,
ancestors, and lineal descendants of an individual;
2. An individual and a corporation, of which more than fifty percent (50%) in value of the
outstanding stock is owned, directly or indirectly, by or for that individual;
3. An individual and a limited liability company or a partnership, of which more than fifty
percent (50%) of the capital interest or profits are owned or controlled, directly or indirectly,
by or for that individual; or
4. An individual that is a grantor or a beneficiary of a trust and the fiduciary of that trust.
(b) The secretary of the Public Protection Cabinet shall report the following information beginning on
the tenth day of the first month following the effective date of this Act and on the tenth day of each
month thereafter:
1. Information related to moneys deposited into the fund, including but not limited to:
a. The name of the person, member, or employee soliciting the moneys;
b. The purpose of the solicitation;
c. The type of entity making the donation, including a business entity, nonprofit or
charitable organization, or individual; and
d. The state and country of origin of the entity; and
2. Information related to expenditures from the fund, including but not limited to:
a. The name and address of the person or business entity receiving any moneys from the
fund;
b. The amount of moneys received;
c. The date of issuance of the moneys;
d. The method of delivery of the moneys;
e. The purpose for which the moneys were granted; and
f. A statement regarding the affiliation, if any, between the person, member, or employee
soliciting the moneys and the person or business entity receiving the moneys.
(c) The report required by paragraph (b) of this subsection shall be submitted to the Senate Standing
Committee on Appropriations and Revenue and the House Standing Committee on Appropriations
and Revenue or the Interim Joint Committee on Appropriations and Revenue.
Section 5. KRS 12.270 is amended to read as follows:
(1) The secretary of each cabinet shall: ACTS OF THE GENERAL ASSEMBLY 12
(a) Be a member of the Governor's Cabinet and shall serve as the Governor's liaison in carrying out the
responsibilities for overall direction and coordination of the departments, boards, and commissions
included in the related cabinet;
(b) Recommend to the Governor desired reorganization affecting the related cabinet;
(c) Advise the Governor on executive actions, legislative matters, and other steps that may be desirable for
better program service;
(d) Evaluate and pass upon all budget requests originated by the departments, boards, and commissions
within the related cabinet;
(e) Advise the Governor on the appointment of commissioners and heads of units included in the related
cabinet, except for those whose election or selection is otherwise provided for by law.
(2) Except as provided by Section 4 of this Act, each secretary is authorized to accept and expend funds from any
source, whether public or private, in support of the duties and responsibilities of the related cabinet.
(3) Each secretary shall have any and all necessary power and authority, subject to appropriate provisions of the
statutes, to create such positions and to employ the necessary personnel in such positions to enable the
secretary to perform the functions of his or her office.
(4) Each secretary shall have exclusive control and direction over the administration of the related cabinet
programs as required by law.
Section 6. 2022 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 5, is amended to read as follows:
There hereby is appropriated Restricted Funds from the East Kentucky State Aid Funding for Emergencies
(EKSAFE) fund in the amount of $40,000,000 in fiscal year 2022-2023 to the Military Affairs budget unit to be used
by the Division of Emergency Management for the advancement of moneys to school districts and nonprofit or public
utility service providers for the purposes set out in subsection (8)(a) of Section 1 of this Act. No moneys from this
appropriation shall be awarded until all moneys appropriated in Section 4 of this Act have been awarded.[ The
Restricted Funds appropriation balance that has not been awarded for this purpose as of January 7, 2023, shall lapse
to the Budget Reserve Trust Fund Account (KRS 48.705).]
Section 7. Whereas relief funds provide vital assistance to individuals, families, and businesses that have
suffered from natural disasters, and timely and efficient allocation of these funds to communities is essential to the
public good, an emergency is declared to exist, and this Act takes effect upon its passage and approval by the
Governor or upon its otherwise becoming a law.
Signed by Governor March 24, 2023.