Page 1 of 2 LRC 2024-BR1044-HB563
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2024 REGULAR SESSION
MEASURE
2024 BR NUMBER 1044 HOUSE BILL NUMBER 563
TITLE AN ACT relating to public water and wastewater systems and making an appropriation therefor.
SPONSOR Representative Josh Bray
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED:
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED
FISCAL
ESTIMATES
2023-2024 2024-2025 2025-2026 ANNUAL IMPACT AT
FULL
IMPLEMENTATION
REVENUES
EXPENDITURES
NET EFFECT
( ) indicates a decrease/negative
PURPOSE OF MEASURE: House Bill 563 establishes a new revolving loan program called
the Kentucky Water and Wastewater Assistance for Troubled or Economically Restrained
Systems Program, or the “Kentucky WWATERS Program,” to be administered by the Kentucky
Infrastructure Authority (KIA) and the Kentucky Rural Water Association. The measure intends
for the Kentucky Rural Water Association to receive and process applications from distressed
drinking water and wastewater facilities seeking loans from the Kentucky WWATERS Program,
then recommend projects for final approval from the General Assembly. KIA would administer
the loans to the approved facilities.
This measure also directs the Energy and Environment Cabinet and the Public Service
Commission to determine whether or not to waive fines and penalties, collect fines and penalties,
or grant a discretionary extension in the case of a forbearance period after the purchase of a
distressed drinking water or wastewater facility.
The measure also creates two new funds, the Kentucky water and wastewater assistance for
troubled or economically restrained systems fund and the emergency Kentucky water and
wastewater assistance for troubled or economically restrained systems fund.
Page 2 of 2 LRC 2024-BR1044-HB563
FISCAL EXPLANATION : While the intention of House Bill 563 is to provide state funding to
distressed drinking water and wastewater facilities through the Kentucky WWATERS Program,
until an appropriation is created by the General Assembly toward that purpose, there is no fiscal
impact to the state. Ultimately, the amount of that appropriation would determine the fiscal
impact to KIA in personnel and operating costs. The size of the loan program will determine the
administrative costs for the program.
DATA SOURCE(S): LRC Budget Staff, Energy and Environment Cabinet
PREPARER: Emma Mills NOTE NUMBER: 68 REVIEW: JB DATE: 2/26/2024