UNOFFICIAL COPY 25 RS BR 375 Page 1 of 13 XXXX 12/30/2024 2:30 PM Jacketed AN ACT relating to soil conservation. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 SECTION 1. A NEW SECTION OF KRS CHAPTER 262 IS CREATED TO 3 READ AS FOLLOWS: 4 (1) The Division of Conservation, with the advice and input of the Department of 5 Agriculture, shall establish and implement the Healthy Soils Program in order to 6 promote the use of healthy soil practices by Kentucky's farmers, both urban and 7 rural. The division shall: 8 (a) Provide technical advice and assistance on healthy soil practices; 9 (b) Assist farmers with soil health assessments; and 10 (c) Aid farmers with the development and implementation of soil health plans. 11 (2) The commissioner of the Department for Natural Resources shall approve grants, 12 made on a competitive basis, and other types of financial incentives to local 13 governments, schools, and public, private, and charitable entities to finance 14 projects in furtherance of the Healthy Soils Program. Part of promoting healthy 15 soil practices shall be the efficient application of chemicals and amendments on 16 agricultural and nonagricultural land. The commissioner shall develop a low-17 cost loan program for Kentucky farmers to adopt and implement a soil health 18 plan. Priority for financial assistance shall be given to veteran farmers or 19 ranchers, beginning farmers or ranchers, and socially disadvantaged farmers or 20 ranchers, as those terms are defined in 7 U.S.C. sec. 2279(a). 21 (3) Expenditures from the Healthy Soils Program fund established in Section 2 of 22 this Act shall be used for the purposes of this section to complement rather than 23 replace existing local, state, private, or federal funding for related programs. The 24 department may enter into agreements with other state and federal agencies to 25 implement the Healthy Soils Program. 26 (4) The Department for Natural Resources shall promulgate administrative 27 UNOFFICIAL COPY 25 RS BR 375 Page 2 of 13 XXXX 12/30/2024 2:30 PM Jacketed regulations in accordance with KRS Chapter 13A to implement the Healthy Soils 1 Program pursuant to this section and administer the Healthy Soils Program fund 2 pursuant to Section 2 of this Act. 3 SECTION 2. A NEW SECTION OF KRS CHAPTER 262 IS CREATED TO 4 READ AS FOLLOWS: 5 (1) The Healthy Soils Program fund is hereby created and established in the State 6 Treasury as a separate trust and agency account. The fund shall be used for 7 running the Healthy Soils Program, making grants and loans, and offering other 8 financial incentives in support of Section 1 of this Act. The fund may receive 9 appropriations from the General Assembly, grants, gifts, federal funds, or any 10 other funds, both public and private, for the purpose of supporting and abetting 11 the Healthy Soils Program. 12 (2) Notwithstanding KRS 45.229, any moneys remaining in the fund at the close of 13 the fiscal year shall not lapse but shall be carried forward to the next fiscal year. 14 Any unallotted or unencumbered balance shall be carried forward. Funds shall 15 be invested pursuant to KRS 42.500 and any income earned from the investments 16 shall be credited to and become part of the fund. 17 (3) Disbursements from the fund shall be made by the Treasurer upon writ from the 18 commissioner of the Department for Natural Resources. 19 Section 3. KRS 146.100 is amended to read as follows: 20 (1) The secretary of the Energy and Environment Cabinet, with the approval of the Soil 21 and Water Conservation Commission, shall appoint a director of the Division of 22 Conservation with experience in professional agricultural activities, including 23 healthy soil practices as defined in Section 5 of this Act, and who shall serve as 24 executive officer for the commission. The director shall serve at the will of, and 25 receive compensation as may be determined by the secretary of the Energy and 26 Environment Cabinet with the advice of the Soil and Water Conservation 27 UNOFFICIAL COPY 25 RS BR 375 Page 3 of 13 XXXX 12/30/2024 2:30 PM Jacketed Commission. In addition to any other duties assigned to him or her by the secretary 1 of the Energy and Environment Cabinet, the director shall exercise, subject to the 2 approval of the secretary, general administrative supervision over all activities, 3 employees and property of the commission.[;] 4 (2) The secretary of the Energy and Environment Cabinet may employ other officers, 5 employees, and agents, who shall serve at his or her will as he or she deems 6 necessary, with the advice of the Soil and Water Conservation Commission, and 7 shall provide for surety bonds for members, the director, officers, employees or 8 agents if entrusted with funds or property. 9 Section 4. KRS 224.71-110 is amended to read as follows: 10 (1) The Agriculture Water Quality Authority is created and administratively attached to 11 the cabinet. The authority shall be a multidiscipline peer group that shall evaluate, 12 develop, and improve best-management practices in conservation plans, compliance 13 plans, and forest stewardship management plans; establish statewide and regional 14 agriculture water quality plans; and otherwise promote soil and water conservation 15 and restoration activities that protect waters of the Commonwealth from the 16 adverse impacts of agriculture operations within the Commonwealth. The cabinet 17 shall provide staff to the authority. 18 (2) [Within six (6) months of July 15, 1994, ]The Soil and Water Conservation 19 Commission shall submit to the Governor for appointment to the Agriculture Water 20 Quality Authority a list of three (3) persons recommended by each of the following 21 state agencies and organizations: 22 (a) Kentucky Association of Conservation Districts; 23 (b) Kentucky Department of Agriculture; 24 (c) University of Kentucky College of Agriculture Cooperative Extension 25 Service; 26 (d) Kentucky Farm Bureau Federation, Inc.; 27 UNOFFICIAL COPY 25 RS BR 375 Page 4 of 13 XXXX 12/30/2024 2:30 PM Jacketed (e) Division of Conservation, Energy and Environment Cabinet; 1 (f) Division of Forestry, Energy and Environment Cabinet; 2 (g) Kentucky Geological Survey; [and] 3 (h) Environmental organizations; and 4 (i) Organic agriculture organizations. 5 The membership of the Agriculture Water Quality Authority appointed by the 6 Governor shall consist of one (1) representative from each of the groups identified 7 in paragraphs (a) to (i)[(h)] of this subsection and two (2)[three (3)] members at 8 large from agriculture operations. The Soil and Water Conservation Commission 9 shall solicit nominations from Kentucky agriculture operations organizations and 10 submit those names to the Governor for selection of the two (2)[three (3)] members 11 at large from agriculture operations. Initial terms shall be staggered, and[The 12 Governor shall select four (4) members to serve two (2) year initial terms, four (4) 13 members to serve three (3) year initial terms, and three (3) members to serve four 14 (4) year initial terms.] all succeeding terms shall be four (4) year terms. Vacancies 15 shall be filled in the same manner as the original appointments. A representative 16 from the Natural Resources Conservation Service and a representative from the 17 United States Department of Agriculture Farm Service Agency may also be 18 appointed by the Governor to serve on the authority. One (1) representative each 19 from the Division of Water, Energy and Environment Cabinet and the Department 20 for Public Health, Cabinet for Health and Family Services shall serve as ex officio 21 members. 22 (3) It shall be the responsibility of the Agriculture Water Quality Authority to establish, 23 at a minimum, the following five (5)[four (4)] committees for agriculture 24 operations, with membership outside the Agriculture Water Quality Authority: 25 (a) Livestock and poultry; 26 (b) Crops, including but not limited to tobacco, corn, soybeans, small grains, 27 UNOFFICIAL COPY 25 RS BR 375 Page 5 of 13 XXXX 12/30/2024 2:30 PM Jacketed fruits and vegetables, pasture, and timber; 1 (c) Pesticides, fertilizers, and other agricultural chemicals;[ and] 2 (d) Farmstead issues; and 3 (e) Healthy soil practices as defined in Section 5 of this Act. 4 (4) The Agriculture Water Quality Authority shall have the following responsibilities: 5 (a) Review water quality data as available; 6 (b) Review university research on water quality and alternative best-management 7 practices research; 8 (c) Evaluate the adoption and effectiveness of best-management practices, and 9 modify best-management practice design standards to improve water quality 10 protection practices; 11 (d) Develop by July 1, 1996, statewide agriculture water quality plans to address 12 identifiable water pollution problems from agriculture operations, and 13 continue to evaluate and modify the agriculture water quality plans, as 14 necessary to prevent water pollution from agriculture operations; 15 (e) Assist with the review of state-funded and other water quality monitoring data 16 and with the establishment of agriculture water priority protection regions; 17 (f) Provide technical assistance to persons engaged in agriculture operations and 18 to the Soil and Water Conservation Commission in its efforts to coordinate 19 water quality protection as related to agriculture operations; 20 (g) Work with the Natural Resources Conservation Service, United States 21 Department of Agriculture Farm Service Agency, and conservation districts to 22 disseminate to agriculture operations the best-management practices, 23 conservation plans, compliance plans, forest stewardship management plans, 24 and agriculture water quality plans which address the protection of 25 groundwater and surface water; 26 (h) Provide the Governor and the Legislative Research Commission with biennial 27 UNOFFICIAL COPY 25 RS BR 375 Page 6 of 13 XXXX 12/30/2024 2:30 PM Jacketed reports of the progress of the Agriculture Water Quality Authority program; 1 and 2 (i) Establish procedures for modifications to be incorporated into statewide or 3 regional agriculture water quality plans. 4 (5) The cabinet's Division of Water shall approve or disapprove any statewide and 5 regional water quality plan within thirty (30) days of receiving the plan from the 6 Agriculture Water Quality Authority. All provisions of a statewide or regional 7 water quality plan not found deficient shall be approved. If the Division of Water 8 finds any provision of the statewide or regional agriculture water quality plan 9 deficient, the Division of Water shall give written notice to the authority of those 10 provisions found to be deficient. Within the thirty (30) days following the notice of 11 deficiency, the authority shall deliver to the Division of Water a written response 12 setting forth proposed solutions to the deficiencies. Any deficiencies which remain 13 unresolved shall be resolved in a manner agreed to jointly by the Division of Water 14 and the authority within sixty (60) days unless the Division of Water and authority 15 jointly agree to an extension or alternate dispute resolution. The Division of Water 16 shall approve or disapprove all modifications to the statewide and regional plans as 17 set forth at KRS 224.71-120(8). 18 Section 5. KRS 262.010 is amended to read as follows: 19 (1) "Board" means the board of supervisors of a conservation district; 20 (2) "Commission" means the Conservation Commission; 21 (3) "District" means a conservation district whenever used in KRS 262.010 to 262.660 22 or a watershed conservancy district whenever used in KRS 262.700 to 262.795; 23 (4) "Due notice" means notice published in accordance with the legal notice provisions 24 of KRS Chapter 424; 25 (5) "Healthy soil practices" means agricultural practices supported by the United 26 States Department of Agriculture Natural Resources Conservation Service's 27 UNOFFICIAL COPY 25 RS BR 375 Page 7 of 13 XXXX 12/30/2024 2:30 PM Jacketed Environmental Quality Incentives Program that feed the soil, reduce erosion, 1 improve soil structure, enhance nutrient cycling, and encourage water retention 2 by utilizing four (4) principal practices as follows: 3 (a) Using plant diversity to improve diversity in the soil; 4 (b) Managing soils with less disturbance to the soil; 5 (c) Keeping plants growing year-round to feed the soil; and 6 (d) Keeping the soil covered as much as possible; 7 (6) "Infrastructure" means the plant and assets required for maintaining a district office; 8 (7)[(6)] "Land occupier" or "occupier of land" includes any person other than the 9 landowner who is in possession of any lands lying within the district, whether as 10 lessee or otherwise; 11 (8)[(7)] "Landowner" or "owner of land" includes any person who holds legal or 12 equitable title to the land within the district determined as follows: 13 (a) By his, her, or their names appearing on the recorded deed to the land; 14 (b) By title derived through a probated will or by the laws of descent and 15 distribution under KRS Chapter 391; 16 (c) Where a minor or person adjudged mentally disabled is the owner of land 17 within the district, the guardian or conservator or whoever has the power of 18 attorney shall have the right to vote for such landowner under the provisions 19 of KRS Chapter 262; 20 (d) Where the will has not been probated by the date of the referendum or 21 election as provided in KRS Chapter 262, the executor of the deceased 22 landowner shall have the right to vote for the devisee or devisees; 23 (e) Where the land within the districts is held in trust, the trustee shall have the 24 right to vote for the landowner under the provisions of KRS Chapter 262; 25 (f) A landowner shall be entitled to but one (1) vote whenever he or she is given 26 the right to vote under KRS Chapter 262 regardless of the number of tracts or 27 UNOFFICIAL COPY 25 RS BR 375 Page 8 of 13 XXXX 12/30/2024 2:30 PM Jacketed parcels of land which he or she owns either wholly or in part, within the 1 district; 2 (g) Where a trustee, executor, guardian, conservator, or other person with 3 authority to vote for a landowner exercises such duty in relation to two (2) or 4 more estates or tracts of land, within a district, such person shall have the right 5 to vote separately for each such landowner which he or she represents within 6 the district; or 7 (h) In the case of a dispute as to whether or not a person has the right to vote in an 8 election or referendum under the provisions of KRS Chapter 262, the person 9 seeking such right must provide to the satisfaction of the polling 10 superintendent that he or she has the right to vote under this section; 11 (9) "Soil health" means the overall composition of the soil and its continued capacity 12 to function as a vital living ecosystem that sustains plants, animals, and humans; 13 (10) "Soil health assessment" means a suite of soil health indicator measures such as 14 amount of organic matter in the soil, soil structure, infiltration and bulk density, 15 water holding capacity, microbial biomass, and soil respiration;[.] 16 (11)[(8)] "Supervisor" means one (1) of the members of the governing body of a 17 conservation district; and 18 (12) "Watershed health" means the continued capacity of surface water and 19 groundwater ecosystems to function as a vital living ecosystem that is resilient to 20 drought and storm events and that sustains plants, animals, and humans. 21 Section 6. KRS 262.020 is amended to read as follows: 22 The purpose of a soil and water conservation district is to conserve, restore, and develop 23 all renewable natural resources within the district. In so doing, the district is authorized to 24 undertake, sponsor, or participate in projects and activities which promote the health, 25 conservation, restoration, development, maintenance and use of the land, water, trees and 26 other renewable natural resources of the district. Such projects and activities shall include 27 UNOFFICIAL COPY 25 RS BR 375 Page 9 of 13 XXXX 12/30/2024 2:30 PM Jacketed [but not be limited to ]conservation and healthy soil practices on agricultural lands, the 1 control of soil erosion, retardation of water runoff, the construction of flood prevention 2 and control reservoirs, the maintenance of flood plains, the promotion of projects to 3 ensure[assure] an adequate municipal, industrial and agricultural supply of water, 4 watershed stabilization, the avoidance and abatement of sedimentation and pollution in 5 streams and other bodies of water, forestation and reforestation, the establishment of 6 parks and outdoor recreation areas, the protection of open space, greenbelt areas and 7 scenery, the preservation of wilderness areas, the protection of fish and wildlife, the 8 protection and restoration of soil and watershed health and biological diversity, 9 assisting rural and urban agricultural producers in soil health assessments and in 10 developing soil health plans, working for the location of highways, industries, housing 11 developments, airports and other structures as are consistent with the district's objectives 12 and will offer the least possible interference with the conservation and best multiple use 13 of the renewable natural resources, and all other activities consistent with the total natural 14 resources development of the district. 15 Section 7. KRS 262.748 is amended to read as follows: 16 (1) Upon determination by the board of directors of a watershed conservancy district 17 that the improvement, continuing operation, or maintenance of a watershed project 18 is necessary, the board of directors may adopt a resolution which shall set out: 19 (a) A list of the benefited lands located in the flood plain, as determined by the 20 board of directors, giving the acreage of such lands and the names of the 21 landowners[owners] thereof as defined by KRS 262.010[(7)] with a 22 classification of such lands or parts thereof into classes in order that 23 assessments may be made according to direct benefits; and 24 (b) The annual assessments to be levied upon the lands set out in the resolution on 25 the basis of a certain amount per acre according to benefits received, not to 26 exceed in any one (1) year a sum per acre specified in the resolution. 27 UNOFFICIAL COPY 25 RS BR 375 Page 10 of 13 XXXX 12/30/2024 2:30 PM Jacketed (2) The board of directors shall cause due notice of the resolution to be given to all the 1 owners of benefited lands, as determined by the board. Said notice shall set out the 2 time and place of a meeting of the board of directors of the watershed conservancy 3 district at which owners of benefited lands who may be liable for the annual 4 assessments may be heard. 5 (3) At the hearing upon the resolution, owners of benefited lands may voice their views 6 concerning the proposal as to whether it should be undertaken, and the scope 7 thereof, or the degree of benefit received by their lands. The board shall prepare a 8 record summarizing the proceedings. If the board of directors determines as a result 9 of the hearing that the proposal should be carried out as planned, it may make such 10 changes or revisions in the resolution as it deems proper and shall give due notice 11 of an election to be held at which benefited landowners may vote on the question of 12 annual special assessments to defray the cost. The notice of the election shall 13 include the text of the resolution of the board in its final form. The board of 14 directors may give due notice as provided in KRS 262.010(4). 15 (4) The board of directors shall prepare the following question to be presented to the 16 voters: "Should the assessment for improvement, continuing operation, or 17 maintenance proposed by resolution of the........ Watershed Conservancy District be 18 adopted?" Voters shall be instructed to vote "yes" or "no" on the proposition. Only 19 owners of benefited land as set out in the resolution shall be eligible to vote. The 20 board of directors may provide for a meeting of the landowners at which the vote 21 may be cast, in which case qualified voters may vote by absentee vote. The board 22 shall appoint a polling superintendent and other necessary election officers, giving 23 representation to the opponents of the question as well as to proponents. 24 (5) If a majority of those voting upon the proposition favor the assessment the board 25 shall give due notice of the vote. Any owner of property to be benefited by the 26 project may, within forty (40) days after publication of such notice, file an action in 27 UNOFFICIAL COPY 25 RS BR 375 Page 11 of 13 XXXX 12/30/2024 2:30 PM Jacketed the Circuit Court of the county in which his or her lands are located seeking relief 1 by declaratory judgment or injunction. If a suit is filed, the county attorney shall 2 represent the board of directors in upholding the validity of the proposed 3 assessment. After the lapse of time specified herein all actions by owners of 4 properties to be benefited shall be forever barred. 5 (6) If no suit is filed and no injunction issued within the time allowed in subsection (5) 6 of this section, the board of directors shall levy annual assessments effective only 7 upon the benefited properties and based on the acreage thereof. The annual 8 assessment shall be made by the board of directors at the same time and in the same 9 manner as provided in KRS 262.765 for taxes generally and shall be collected as 10 provided in KRS 262.770. The assessments shall constitute liens against the land 11 benefited and shall attach to the land, taking precedence over all other liens except 12 state, county and municipal taxes and prior improvement assessments. 13 Section 8. KRS 262.778 is amended to read as follows: 14 (1) Upon determination by the board of directors of a watershed conservancy district 15 that a watershed project is necessary, and upon approval of the plans for same by 16 the board of supervisors, the board of directors shall adopt a resolution which shall 17 set out: 18 (a) A description of the project in general terms; 19 (b) A list of the benefited lands located in the flood plain, as determined by the 20 board of directors, giving the acreage of such lands and the names of the 21 landowners[owners] thereof as defined by KRS 262.010[(7)] with a 22 classification of such lands or parts thereof into classes in order that 23 assessments may be made according to direct benefits; 24 (c) The total cost of the project; and 25 (d) The fact that the cost shall be met by a bond issue payable solely from annual 26 assessments to be levied upon the lands set out in the resolution on the basis 27 UNOFFICIAL COPY 25 RS BR 375 Page 12 of 13 XXXX 12/30/2024 2:30 PM Jacketed of a certain amount per acre according to benefits received, not to exceed in 1 any one (1) year a sum per acre specified in the resolution, with the annual 2 assessments to extend over a period of years specified in the resolution not to 3 exceed thirty (30) years. 4 (2) The board of directors shall cause due notice of the resolution to be given to all the 5 owners of benefited lands, as determined by the board. Said notice shall set out the 6 time and place of a meeting of the board of directors of the watershed conservancy 7 district at which owners of benefited lands who may be liable for the annual 8 assessments may be heard. 9 (3) At the hearing upon the resolution, owners of benefited lands may voice their views 10 concerning the proposed project as to whether said project should be undertaken, 11 and the scope thereof, or the propriety of placing their lands in the project area or 12 the degree of benefit received by their lands. The board shall prepare a record 13 summarizing the proceedings. If the board of directors determines as a result of the 14 hearing that the project should be carried out as planned, it may make such changes 15 or revisions in the resolution as it deems proper and shall give due notice of an 16 election to be held at which benefited landowners may vote on the question of 17 annual special assessments to defray the cost of the project. The notice of the 18 election shall include the text of the resolution of the board in its final form. The 19 board of directors may give due notice as provided in KRS 262.010(4). 20 (4) The board of directors shall prepare to be presented to the voters the question: 21 "Should the assessment proposed by resolution of the .... Watershed Conservancy 22 District be adopted?". Voters shall be instructed to vote "yes" or "no." Only owners 23 of benefited land as set out in the resolution shall be eligible to vote. The board of 24 directors may provide for a meeting of the landowners at which the vote may be 25 cast, in which case qualified voters may vote by absentee vote. The board shall 26 appoint a polling superintendent and other necessary election officers, giving 27 UNOFFICIAL COPY 25 RS BR 375 Page 13 of 13 XXXX 12/30/2024 2:30 PM Jacketed representation to the opponents of the question as well as to proponents. 1 (5) If a majority of those voting upon the proposition favor the assessment, the board 2 shall give due notice of the vote and the fact that bonds will forthwith be issued 3 payable from special assessments. Any owner of property to be benefited by the 4 project may, within forty (40) days after publication of such notice, file an action in 5 the Circuit Court of the county in which his or her lands are located seeking relief 6 by declaratory judgment or injunction. If a suit is filed, the county attorney should 7 represent the board of directors in upholding the validity of the proposed bond 8 issue. After the lapse of time specified herein, all actions by owners of properties to 9 be benefited shall be forever barred. 10 (6) If no suit is filed and no injunction issued within the time allowed in subsection (5) 11 of this section, the board of directors shall by resolution authorize the issuance of 12 bonds designated "watershed project assessment bonds," determining the principal 13 amount thereof and establishing the denominations and maturity dates thereof and 14 shall levy an annual assessment effective only upon the benefited properties and 15 based on the acreage thereof. The annual rate of such assessments shall be fixed 16 when other taxes of the district are levied and shall be sufficient in each year to 17 provide for the payment of such bonds and interest coupons as they mature and 18 sufficient to provide a fund equal to twenty percent (20%) of the average annual 19 principal and interest requirements, the same to constitute a "debt service reserve" 20 as a precaution against possible default by failure to collect annual levies. The 21 bonds shall state on their face that they do not constitute a debt of the district but 22 are payable solely from collection of special assessments made upon benefited 23 lands lying in the watershed conservancy district. 24