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AN ACT relating to economic relief for local communities of the Commonwealth 1
and declaring an emergency. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 147A.150 is amended to read as follows: 4
(1) The General Assembly finds and declares that the purpose of KRS 147A.150 to 5
147A.166 is to support the eligible[priority ]communities in the Commonwealth 6
designated by the Interagency Working Group on Coal and Power Plant 7
Communities and Economic Revitalization established by Presidential Executive 8
Order 14008, issued on January 27, 2021. 9
(2) In enacting KRS 147A.150 to 147A.166, it is the intention of the General Assembly 10
to create and establish the Government Resources Accelerating Needed 11
Transformation Program within the Department for Local Government to enable 12
eligible[priority ]communities to access federal funding for projects that are in the 13
public interest and for a public purpose. 14
(3) The General Assembly further finds and declares that eligible[priority 15
]communities would benefit from the assistance of their local public universities[ 16
and encourages those entities] to assist their eligible[priority ]communities in 17
applying for Government Resources Accelerating Needed Transformation Program 18
funds. 19
Section 2. KRS 147A.152 is amended to read as follows: 20
As used in KRS 147A.150 to 147A.166: 21
(1) "Department" means the Department for Local Government; 22
(2) "Eligible community" means: 23
(a) An area impacted by unemployment rates at or above the national average 24
or coal-related job losses from mine and power plant closures in recent 25
years that is designated by the Interagency Working Group as a priority for 26
federal grant resources, or 27 UNOFFICIAL COPY 24 RS BR 804
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(b) An area that is eligible for the obligation of state funds under Section 3 of 1
this Act, but is not an Interagency Working Group designated community; 2
(3) "Eligible grant recipient": 3
(a) Means a grant applicant that is a county or city governing body[public agency 4
as defined in KRS 61.805] or nonprofit charitable organization organized 5
under 26 U.S.C. sec. 501(c)(3) and[entity] engaged in public benefit 6
improvements to eligible[priority ]communities; and 7
(b) Does not include area development districts created under KRS 147A.050; 8
(4)[(3)] "Eligible project" means a public benefit project in a eligible[priority 9
]community or benefiting an eligible[a priority] community with available 10
matching funds that satisfies the evaluation criteria in Section 6 of this Act[KRS 11
147A.160] and that is initiated on: 12
(a) Publicly owned property; 13
(b) Property to be acquired, which comes with either a: 14
1. Legally binding letter of intent or option for the sale to an eligible grant 15
recipient; or 16
2. Legally binding sale agreement for the sale to an eligible grant 17
recipient; or 18
(c) Private property on which a project is located that is in the public interest and 19
for a public purpose and that benefits an eligible[a priority] community; 20
(5)[(4)] "Eligible use" means the authorized purpose for which an awarded grant may 21
be used depending on the source of funds from the Commonwealth[. "Eligible use" 22
may include but is not limited to any of the categories in KRS 147A.160]; 23
(6)[(5)] "Interagency Working Group" means the Interagency Working Group on Coal 24
and Power Plant Communities and Economic Revitalization established by 25
Presidential Executive Order 14008, issued on January 27, 2021;[ 26
(6) "Priority community" means the areas impacted by concentrated, direct coal-related 27 UNOFFICIAL COPY 24 RS BR 804
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job losses from mine and power plant closures in recent years as designated by the 1
Interagency Working Group;] and 2
(7) "Regional project" means an eligible project that is proposed by eligible grant 3
recipients residing in different counties in this Commonwealth who submit a single 4
grant application. 5
Section 3. KRS 147A.154 is amended to read as follows: 6
(1) The Government Resources Accelerating Needed Transformation Program is 7
hereby established under the department. The department's administration of the 8
program includes but is not limited to the following: 9
(a) Creating and making available a standardized grant application and a regional 10
grant application for the obligation of state funds under KRS 147A.150 to 11
147.166 to apply for matching federal funds; 12
(b) Developing a standardized scoring system pursuant to KRS 147A.162; 13
(c) Reviewing and processing the applications [and proposals ]submitted by the 14
proposed eligible grant recipients to the department; 15
(d) Verifying and determining whether a match[grant] applicant is an eligible 16
grant recipient and seeking a federal grant for an eligible project; 17
(e) Evaluating the project proposed by the match[grant] application in 18
accordance with the evaluation criteria set forth in Section 6 of this Act[KRS 19
147A.160]; 20
(f) Scoring each match[grant] application [project ]pursuant to the scoring 21
system described in KRS 147A.162; 22
(g) Ranking each match[grant] application: 23
1. To prioritize the greatest return on investment and relative positive 24
impact on the eligible[priority] community; and 25
2. Based on the project evaluation and the project score described in 26
Section 6 of this Act[KRS 147A.160 and 147A.162]; 27 UNOFFICIAL COPY 24 RS BR 804
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(h) Compiling a list of proposed match applicants[grant recipients] whose 1
eligible project demonstrates a high level of investment potential if a 2
match[grant] is provided[made], as revealed by the evaluation, scoring, and 3
ranking process described in this section and Section 6 of this Act[KRS 4
147A.160 and 147A.162]; 5
(i) Providing detailed feedback to the match[grant] applicants after the project 6
evaluation and project score are completed and the match application is 7
approved or denied by the department, unless otherwise prohibited by 8
federal or state law; 9
(j) Obligating[Awarding] matching funds[grants] to selected eligible grant 10
recipients;[ and] 11
(k) Compiling [for ]the monthly[annual] report to be submitted under KRS 12
147A.164 the following information about the project: 13
1. A list of all match[program] applicants; 14
2. The identity of applicants who were not selected for obligation of match 15
funds[recommendation]; 16
3. Trends found in feedback given to applicants who were not selected for 17
obligation of match funds[recommendation]; 18
4. Eligible uses of the projects cited in the match[grant] applications; and 19
5. Any other information requested by the department; and 20
(l) Compiling the annual report to be submitted under Section 7 of this Act. 21
(2) The department shall determine the terms, conditions, and requirements of 22
application for match[grant] funds awarded from the Government Resources 23
Accelerating Needed Transformation Program fund. The department may establish 24
procedures and standards for the review and approval of obligation of match 25
funds[eligible grant awards] through the promulgation of administrative regulations 26
in accordance with KRS Chapter 13A. By June 1, 2024, the department shall 27 UNOFFICIAL COPY 24 RS BR 804
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submit recommended legislative changes to the Legislative Research Commission 1
for referral to and for consideration by the Interim Joint Committee on 2
Appropriations and Revenue. 3
(3) The commissioner of the department shall have the authority to hire staff, contract 4
for services, expend funds, and operate the normal business activities of the 5
Government Resources Accelerating Needed Transformation Program. 6
(4) The Government Resources Accelerating Needed Transformation Program shall 7
sunset on December 31, 2026, unless authorized by the General Assembly to 8
continue its work for a specified period of time. 9
(5) The Kentucky Council of Area Development Districts and local area development 10
districts shall assist eligible[priority] communities in identifying available federal 11
grant opportunities and preparing federal grant applications and Government 12
Resources Accelerating Needed Transformation Program applications. Nothing in 13
this subsection shall prevent[prevents] any public agency or nonprofit entity from 14
assisting eligible[priority] communities in identifying available federal grant 15
opportunities and preparing federal grant applications Government Resources 16
Accelerating Needed Transformation Program applications. 17
(6) Upon request of the local area development districts, local public universities 18
shall assist the eligible communities in their area by including but not limited to: 19
(a) Identifying opportunities for federal grants; 20
(b) Applying for federal grants on behalf of the communities including 21
providing data analysis and writing the federal grant application; and 22
(c) Providing a contact person to the Kentucky Council of Area Development 23
Districts and to the area development district in which the university is 24
located. 25
Section 4. KRS 147A.156 is amended to read as follows: 26
(1) (a) To participate in the Government Resources Accelerating Needed 27 UNOFFICIAL COPY 24 RS BR 804
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Transformation Program, grant applicants shall submit either a standardized 1
or a regional application to the department. 2
(b) The department shall provide a preliminary evaluation of the application 3
within five (5) business days of receipt of the application. As part of the 4
preliminary evaluation, the department shall consider the following: 5
1. Applicant's eligibility when evaluated against the requirements of the 6
federal grant; and 7
2. Application completeness when evaluated against the requirements of 8
the federal grant. 9
(c) The department shall provide a final decision of approval or denial on the 10
application within twenty-one (21) calendar days of receipt of the 11
application. 12
(2) If a grant application is selected as an eligible match[grant] recipient approved 13
under Section 6 of this Act[KRS 147A.160], it shall comply with any match[grant] 14
agreement and reporting requirements deemed necessary by the department to 15
verify that the awarded match[grant] goes toward an eligible use. 16
(3) If the selected match[grant] recipient fails to comply with subsection (2) of this 17
section or uses the awarded match[grant] money for any purpose other than an 18
eligible use, the selected eligible match[grant] recipient shall forfeit and be liable to 19
the department for the full award amount. 20
Section 5. KRS 147A.158 is amended to read as follows: 21
(1) There is hereby established in the State Treasury a trust and agency account to be 22
known as the Government Resources Accelerating Needed Transformation Program 23
fund. The fund shall consist of moneys received from state appropriations, gifts, 24
grants, and federal funds. 25
(2) The fund shall be administered and maintained by the department. 26
(3) Amounts deposited in the fund shall be used for awarding: 27 UNOFFICIAL COPY 24 RS BR 804
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(a) [Awarding ]Matching funds[fund grants] to applicants of the Government 1
Resources Accelerating Needed Transformation Program upon notification of 2
award of the federal grant requiring matching funds. Up to ten percent (10%) 3
of the amounts deposited in the fund shall be used for match awards for 4
nonprofit charitable organizations organized under 26 U.S.C. sec. 5
501(c)(3); and 6
(b) Matching funds to applicants of the Government Resources Accelerating 7
Needed Transformation Program upon notification of award of the federal 8
grant requiring matching funds. Up to ninety percent (90%) of the amounts 9
deposited in the fund shall be used for match awards to county or city 10
governing bodies[Administration of the program]. 11
(4) Notwithstanding KRS 45.229, moneys in the account not expended at the close of a 12
fiscal year shall not lapse but shall be carried forward into the next fiscal year. 13
(5) Any interest earnings of the fund shall become a part of the fund and shall not 14
lapse. 15
(6) Moneys deposited in the fund are hereby appropriated for the purposes set forth in 16
this section and shall not be appropriated or transferred by the General Assembly 17
for any other purposes. 18
(7) Any match obligations[amounts obligated] under subsection (3)[(a)] of this section 19
shall be canceled upon denial of the federal award[. 20
(8) By December 1, 2023, and annually thereafter until December 1, 2026, the 21
department shall prepare an annual report detailing the expenditures for the 22
administration of the program from the fund, which shall be included in the annual 23
report submitted under KRS 147A.164]. 24
Section 6. KRS 147A.162 is amended to read as follows: 25
(1) The department shall identify and certify the areas for grant funding to eligible 26
communities designated by the Interagency Working Group as a priority for 27 UNOFFICIAL COPY 24 RS BR 804
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federal grant resources. The department shall not approve a project unless it 1
finds that the project is in the public interest and the grant funds will be used for 2
a public purpose. For purposes of this subsection, projects that are in the public 3
interest and for a public purpose can provide private benefit, if the department 4
finds the following: 5
(a) The project will enhance an eligible community or region; 6
(b) The granting entity for which the department's matching grant is being 7
used requires a public purpose for grant eligibility; or 8
(c) The department in its judgment concludes the proposal will enhance the 9
quality of life or services in an eligible community or region. 10
(2) The department shall evaluate each applicant's eligible project according to the 11
criteria described in this section for the purpose of compiling a recommendation 12
and score for the eligible project pursuant to this section. 13
(3) If a match applicant is selected as an eligible grant recipient approved under the 14
Government Resources Accelerating Needed Transformation Program, it shall 15
comply with any incentive agreements and reporting requirements deemed 16
necessary by the department to verify that the awarded grant shall go toward an 17
eligible use. 18
(4) In the administration of the Government Resources Accelerating Needed 19
Transformation Program, the department shall develop a scoring system for the 20
project proposed by each match[grant] applicant based on the total projected return 21
on investment and the relative positive impact in the eligible[priority] community. 22
(5)[(2)] The scoring system shall include a: 23
(a) Score in each category as specified in subsection (6)[(3)] of this section; and 24
(b) Total weighted score, which is the average of the scores in each category. 25
(6)[(3)] The scoring categories shall include but are not limited to: 26
(a) Projected return on investment the project will yield, which includes an 27 UNOFFICIAL COPY 24 RS BR 804
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assessment of the: 1
1. Likelihood of project completion both with the department's funding and 2
without; 3
2. Application content when evaluated against the federal grant 4
program's publicly available scoring rubric or evaluation criteria, if 5
any; 6
3. Projected gross economic impact of the proposed project on the 7
eligible[priority] community; 8
4.[3.] Projected number of jobs created by the proposed project and 9
subsequent impact on the eligible[priority] community;[ and] 10
5.[4.] Determination of the cost of the project based on the cost expended by 11
the department if it obligates[awards] the requested grant amount to the 12
applicant; 13
6. Evidence of community support for the project; and 14
7. Likelihood that the applicant can successfully manage the federal 15
grant's administration requirements; and 16
(b) Overall[Relative] positive impact the project will have on the surrounding 17
community as evidenced by clear and feasible projected outcomes of the 18
grant-funded project. 19
Section 7. KRS 147A.164 is amended to read as follows: 20
(1) (a) The department shall submit a monthly report on eligible project 21
applications to the Governor and the Senate Standing Committee on 22
Appropriations and Revenue and the House Standing Committee on 23
Appropriations and Revenue, or the Interim Joint Committee on 24
Appropriations and Revenue, and make the reports available on the 25
department's website. 26
(b) The monthly report shall be a summary of the eligible project applications 27 UNOFFICIAL COPY 24 RS BR 804
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and shall include but not be limited to the following; 1
1. The date of the application; 2
2. The date of receipt of the application by the department; 3
3. A description of the federal grant funds applied for by the applicant; 4
4. A description of the title, subject matter, preliminary evaluation, and 5
scoring tally of the eligible project; 6
5. The date of the department's preliminary evaluation; and 7
6. The date of the department's final decision on obligation of the match 8
funds, the date of the federal grant approval or denial, and whether 9
the eligible project was approved or denied. 10
(2) By December 1, 2023, and annually thereafter until December 1, 2026, the 11
department[Department for Local Government] shall prepare an annual report of 12
the Government Resources Accelerating Needed Transformation Program to be 13
submitted to the Governor and the Interim Joint Committee on Appropriations and 14
Revenue[Economic Development and Workforce Investment] and make it available 15
on the department's[Department for Local Government's ]website. The annual 16
report shall include but not be limited to the following: 17
(a)[(1)] A summary of the monthly reports and the match[grant] applications 18
received and relevant statistics relating to actions taken by the department and 19
grants awarded, including the applicant, award amount, and the purpose of the 20
funding; 21
(b)[(2) The detailed report of expenditures for the administration of the program 22
prepared under KRS 147A.158(8); 23
(3)] The current balance of the Government Resources Accelerating Needed 24
Transformation Program fund; 25
(c)[(4)] Recommendations regarding appropriations to the Government 26
Resources Accelerating Needed Transformation Program fund for the 27 UNOFFICIAL COPY 24 RS BR 804
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upcoming fiscal year; and 1
(d)[(5)] Recommendations for legislation or policy actions needed to facilitate 2
greater receipt of grant funding to eligible[priority] communities. 3
Section 8. The following KRS section is repealed: 4
147A.160 Designation of priority communities -- Public interest and public purpose -- 5
Evaluation of projects -- Duties of grant recipients. 6
Section 9. Whereas local areas of Kentucky have been impacted by 7
unemployment rates at or above the national average or coal-related job losses from mine 8
and power plant closures in recent years, an emergency is declared to exist, and this Act 9
takes effect upon its passage and approval by the Governor or upon its otherwise 10
becoming a law. 11