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AN ACT relating to motorboats. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 132 IS CREATED TO 3
READ AS FOLLOWS: 4
Federally documented vessels not used in the business of transporting persons or 5
property for compensation or hire, or for other commercial purposes, shall be exempt 6
from state and local ad valorem taxes, including in the county, city, school district, and 7
other taxing district in which they have a taxable situs. 8
SECTION 2. A NEW SECTION OF KRS CHAPTER 235 IS CREATED TO 9
READ AS FOLLOWS: 10
(1) (a) Except as provided in paragraph (b) of this subsection, the owner or 11
operator of any motorboat on the waters of the Commonwealth shall pay an 12
annual waterway usage fee, when the motorboat is: 13
1. Documented with the United States Coast Guard; 14
2. Not primarily located in the Commonwealth; or 15
3. Not registered in accordance with KRS 235.040. 16
(b) The waterway usage fee shall not apply to any of the following: 17
1. A tug, barge, towboat, commercial motorboat, or similar commercial 18
vessel assisting tugs or barges, operating on the waters of the 19
Commonwealth regardless of whether it is documented with the 20
United States Coast Guard; or 21
2. A motorboat that is owned by the United States, a state, or a 22
subdivision thereof and is on the waters of the Commonwealth for 23
official government use. 24
(2) The amount of the annual waterway usage fee shall be as follows: 25
(a) Forty dollars ($40) for motorboats that are under sixteen (16) feet in length; 26
(b) Seventy-five dollars ($75) for motorboats that are at least sixteen (16) feet in 27 UNOFFICIAL COPY 25 RS BR 975
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length, but less than twenty-six (26) feet in length; 1
(c) One hundred fifty dollars ($150) for motorboats that are at least twenty-six 2
(26) feet in length, but less than forty (40) feet in length; and 3
(d) Three hundred fifty dollars ($350) for motorboats that are at least forty (40) 4
feet in length or greater. 5
(3) The waterway usage fee shall be in addition to any other fees assessed on the 6
motorboat. 7
(4) All moneys derived from the collection of the waterway usage fee shall be 8
promptly remitted to the State Treasurer for deposit into the waterway usage fund 9
established in Section 3 of this Act, except for the transaction fee permitted by 10
subsection (6) of this section, which shall be deducted before payment to the 11
depository. 12
(5) (a) The Department of Revenue shall distribute the moneys in the waterway 13
usage fund as follows: 14
1. First, fifteen percent (15%) of the total moneys in the fund to the 15
Department of Fish and Wildlife Resources for the enforcement of the 16
waterway usage fee; 17
2. Second, distribute moneys to the state, county, city, consolidated local 18
government, urban-county government, school district, and other 19
taxing districts until each taxing district receives an amount equal to 20
the amount of tax revenues that the taxing district received from the 21
January 1, 2024, ad valorem tax assessment of federally documented 22
vessels not used in the business of transporting persons or property for 23
compensation or hire, or for other commercial purposes; and 24
3. Lastly, the remaining moneys to the Kentucky lakes and rivers tourism 25
fund established in Section 4 of this Act. 26
(b) If, in any year, the total revenue collected from the waterway usage fee is 27 UNOFFICIAL COPY 25 RS BR 975
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not sufficient to cover the distribution in paragraph (a)2. of this subsection, 1
each taxing district shall receive a pro rata reduction in revenues. 2
(6) (a) The waterway usage fee shall be considered a permit for the purpose of KRS 3
150.195 and shall be collected in the same manner as permits under that 4
section. 5
(b) The owner or operator of the motorboat shall receive a waterway usage 6
sticker in receipt of full payment of the waterway usage fee. The owner or 7
operator of the motorboat shall immediately display the sticker on each side 8
of the motorboat's bow. 9
(c) In the event the owner or operator of the motorboat purchases a permit 10
online, the receipt from the transaction shall serve as a permit until a 11
sticker is received by the owner or operator. 12
(d) For the performance of the duties required by this section, the authorized 13
collector of the waterway usage fee may retain a transaction fee in an 14
amount that is equal to the fee amounts authorized by the Department of 15
Fish and Wildlife Resources for the sale of licenses and tags listed under 16
KRS 150.175. 17
(7) This section shall not be interpreted or construed to invalidate any requirements 18
to register a motorboat under KRS Chapter 235 or pay ad valorem taxes under 19
KRS Chapters 132, 133, and 134. 20
SECTION 3. A NEW SECTION OF KRS CHAPTER 235 IS CREATED TO 21
READ AS FOLLOWS: 22
(1) The waterway usage fund is hereby created as a separate trust fund. The fund 23
shall be administered by the Department of Revenue. 24
(2) The fund shall receive amounts collected from the waterway usage fee established 25
in Section 2 of this Act. 26
(3) Moneys in the fund collected in the preceding year shall be disbursed by April 15 27 UNOFFICIAL COPY 25 RS BR 975
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of each year in accordance with subsection (5) of Section 2 of this Act. 1
(4) Notwithstanding KRS 45.229, fund amounts not expended at the close of the 2
fiscal year shall not lapse but shall be carried forward to the next fiscal year. 3
SECTION 4. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 4
READ AS FOLLOWS: 5
(1) As used in this section, "cabinet" means the Tourism, Arts and Heritage 6
Cabinet. 7
(2) The Kentucky lakes and rivers tourism fund is hereby created as a separate trust 8
fund administered by the cabinet. 9
(3) The fund shall consist of amounts received from the waterway usage fund 10
established in Section 3 of this Act, appropriations, gifts, grants, federal funds, or 11
any other funds, both public and private, made available for the purpose set forth 12
in this section. 13
(4) (a) The cabinet shall make grants of money from the fund to marinas located in 14
counties where the fiscal court received tax revenues from the January 1, 15
2024, ad valorem tax assessment of motorboats. All grants of money shall 16
be: 17
1. Distributed through an application process managed and executed by 18
the cabinet; 19
2. Used for the purpose of promoting tourism activities on the waters of 20
the Commonwealth through direct marketing and advertising; and 21
3. Contingent upon the governing body of the local government or 22
private entities providing a match in dollars of at least twenty percent 23
(20%) of the amount requested from the fund. 24
(b) The cabinet shall promulgate administrative regulations in accordance with 25
KRS Chapter 13A to establish an application and approval process for the 26
grants of money from the fund. 27 UNOFFICIAL COPY 25 RS BR 975
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(5) Notwithstanding KRS 45.229, fund amounts not expended at the close of the 1
fiscal year shall not lapse but shall be carried forward to the next fiscal year. 2
Section 5. KRS 235.990 is amended to read as follows: 3
(1) Any person who violates any of the provisions of this chapter or administrative 4
regulations adopted under this chapter shall be fined not less than fifty dollars ($50) 5
nor more than two hundred dollars ($200) unless otherwise stated in this section. 6
After July 15, 2000, any person who violates KRS 235.230 shall be fined not less 7
than fifteen dollars ($15) nor more than one hundred dollars ($100) and each day 8
the violation continues may constitute a separate offense. 9
(2) Any person who violates KRS 235.240 shall not be subject to the penalties of KRS 10
Chapter 189A but shall be guilty of a separate offense and subject to a fine of two 11
hundred dollars ($200) to two hundred fifty dollars ($250) or imprisonment for 12
twenty-four (24) hours for the first offense, a fine of three hundred fifty dollars 13
($350) to five hundred dollars ($500) or imprisonment for forty-eight (48) hours for 14
the second offense, and a fine of six hundred dollars ($600) to one thousand dollars 15
($1,000) or imprisonment in the county jail for not less than thirty (30) days, or 16
both, for the third or subsequent offense. Refusal to submit to a breath alcohol 17
analysis or similar test in violation of KRS 235.240(3) shall be deemed an offense. 18
(3) (a) A person may, in addition or in lieu of the penalties specified in subsection (1) 19
or (5) of this section, be required to take a safe-boating course approved by 20
the department or offered by the United States Coast Guard, Coast Guard 21
Auxiliary, or U.S. Power Squadron and to present the court a certificate 22
documenting successful completion of the course. 23
(b) A person shall, in addition to the penalties of subsection (2) of this section, be 24
required to take a safe-boating course offered by the department and to 25
present the court a certificate documenting successful completion of the 26
course. The person attending a class under this paragraph shall pay the 27 UNOFFICIAL COPY 25 RS BR 975
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department a fee of one hundred dollars ($100) for the costs of materials and 1
instruction before receiving a certificate of completion. 2
(4) After July 15, 2000, any person who violates KRS 235.420 or 235.430 shall be 3
fined not less than fifteen dollars ($15) nor more than one hundred dollars ($100). 4
A person who violates KRS 235.420 or 235.430 shall be fined not less than one 5
hundred dollars ($100) nor more than three hundred dollars ($300) for the second 6
offense, and not less than three hundred dollars ($300) nor more than five hundred 7
dollars ($500) for the third or any subsequent offense. 8
(5) Any person failing to obey a citation issued in accordance with KRS 235.315 shall 9
be guilty of a separate offense and shall be fined not less than fifty dollars ($50) nor 10
more than two hundred dollars ($200). 11
(6) Any person who makes a false statement regarding a marine boat toilet on the 12
application for registration or renewal registration for a motorboat shall be fined 13
one hundred dollars ($100). This penalty shall be separate from any other penalty 14
that may be applicable for violation of this chapter. 15
(7) Any person who resists, obstructs, interferes with, threatens, attempts to intimidate, 16
or in any other manner interferes with any officer in the discharge of his or her 17
duties, other than a criminal homicide or an assault against an officer enforcing the 18
provisions of this chapter, KRS Chapter 150, or the administrative regulations 19
issued under either of these chapters, shall be guilty of a Class A misdemeanor. 20
(8) Any person who commits a criminal homicide or an assault against an officer 21
enforcing the provisions of this chapter, KRS Chapter 150, or the administrative 22
regulations issued under either of these chapters shall be subject to the penalties 23
specified for the offense under KRS Chapter 507 or 508, as appropriate. 24
(9) Any person who violates KRS 235.203 shall be fined fifty dollars ($50). 25
(10) Any person who fails to pay the waterway usage fee as required by Section 2 of 26
this Act shall be fined five hundred dollars ($500). Prior to issuing a citation, the 27 UNOFFICIAL COPY 25 RS BR 975
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Department of Fish and Wildlife Resources enforcement officer may issue a 1
warning notice giving the offender a specified period of time in which to pay the 2
waterway usage fee. If the person to whom the notice is given fails or refuses to 3
pay the waterway usage fee within the time specified, the person shall be issued a 4
citation with a penalty in the amount of five hundred dollars ($500). No person 5
shall receive more than three (3) warning notices in a ten (10) year period. 6
Section 6. KRS 235.999 is amended to read as follows: 7
(1) Except as provided in subsection (2) of this section, sixty percent (60%) of a fine 8
imposed for the violation of this chapter or KRS Chapter 150 shall, when collected, 9
be paid into the game and fish fund. 10
(2) The money collected from the fine imposed by subsection (10) of Section 5 of this 11
Act shall be distributed as follows: 12
(a) Sixty percent (60%) to the waterway usage fund established in Section 3 of 13
this Act; and 14
(b) Forty percent (40%) to the Department of Fish and Wildlife Resources for 15
the enforcement of the waterway usage fee. 16
Section 7. KRS 150.160 is amended to read as follows: 17
(1) Except as provided in subsection (2) of this section, sixty percent (60%) of a fine 18
imposed for the violation of this chapter or KRS Chapter 235 shall, when collected, 19
be paid into the game and fish fund. 20
(2) The money collected from the fine imposed by subsection (10) of Section 5 of this 21
Act shall be distributed as follows: 22
(a) Sixty percent (60%) to the waterway usage fund established in Section 3 of 23
this Act; and 24
(b) Forty percent (40%) to the Department of Fish and Wildlife Resources for 25
the enforcement of the waterway usage fee. 26
Section 8. KRS 132.020 is amended to read as follows: 27 UNOFFICIAL COPY 25 RS BR 975
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(1) The owner or person assessed shall pay an annual ad valorem tax for state purposes 1
at the rate of: 2
(a) Thirty-one and one-half cents ($0.315) upon each one hundred dollars ($100) 3
of value of all real property directed to be assessed for taxation; 4
(b) Twenty-five cents ($0.25) upon each one hundred dollars ($100) of value of 5
all motor vehicles qualifying for permanent registration as historic motor 6
vehicles under KRS 186.043; 7
(c) Fifteen cents ($0.15) upon each one hundred dollars ($100) of value of all: 8
1. Machinery actually engaged in manufacturing; 9
2. Commercial radio and television equipment used to receive, capture, 10
produce, edit, enhance, modify, process, store, convey, or transmit audio 11
or video content or electronic signals which are broadcast over the air to 12
an antenna, including radio and television towers used to transmit or 13
facilitate the transmission of the signal broadcast and equipment used to 14
gather or transmit weather information, but excluding telephone and 15
cellular communication towers; and 16
3. Tangible personal property which has been certified as a pollution 17
control facility as defined in KRS 224.1-300. In the case of tangible 18
personal property certified as a pollution control facility which is 19
incorporated into a landfill facility, the tangible personal property shall 20
be presumed to remain tangible personal property for purposes of this 21
paragraph if the tangible personal property is being used for its intended 22
purposes; 23
(d) Ten cents ($0.10) upon each one hundred dollars ($100) of value on the 24
operating property of railroads or railway companies that operate solely 25
within the Commonwealth; 26
(e) Five cents ($0.05) upon each one hundred dollars ($100) of value of goods 27 UNOFFICIAL COPY 25 RS BR 975
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held for sale in the regular course of business, which includes: 1
1. Machinery and equipment held in a retailer's inventory for sale or lease 2
originating under a floor plan financing arrangement; 3
2. Motor vehicles: 4
a. Held for sale in the inventory of a licensed motor vehicle dealer, 5
including licensed motor vehicle auction dealers, which are not 6
currently titled and registered in Kentucky and are held on an 7
assignment pursuant to KRS 186A.230; or 8
b. That are in the possession of a licensed motor vehicle dealer, 9
including licensed motor vehicle auction dealers, for sale, although 10
ownership has not been transferred to the dealer; 11
3. Raw materials, which includes distilled spirits and distilled spirits 12
inventory; 13
4. In-process materials, which includes distilled spirits and distilled spirits 14
inventory, held for incorporation in finished goods held for sale in the 15
regular course of business; and 16
5. Qualified heavy equipment; 17
(f) One and one-half cents ($0.015) upon each one hundred dollars ($100) of 18
value of all: 19
1. Privately owned leasehold interests in industrial buildings, as defined 20
under KRS 103.200, owned and financed by a tax-exempt governmental 21
unit, or tax-exempt statutory authority under the provisions of KRS 22
Chapter 103, upon the prior approval of the Kentucky Economic 23
Development Finance Authority, except that the rate shall not apply to 24
the proportion of value of the leasehold interest created through any 25
private financing; 26
2. Qualifying voluntary environmental remediation property, provided the 27 UNOFFICIAL COPY 25 RS BR 975
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property owner has corrected the effect of all known releases of 1
hazardous substances, pollutants, contaminants, petroleum, or petroleum 2
products located on the property consistent with a corrective action plan 3
approved by the Energy and Environment Cabinet pursuant to KRS 4
224.1-400, 224.1-405, or 224.60-135, and provided the cleanup was not 5
financed through a public grant or the petroleum storage tank 6
environmental assurance fund. This rate shall apply for a period of three 7
(3) years following the Energy and Environment Cabinet's issuance of a 8
No Further Action Letter or its equivalent, after which the regular tax 9
rate shall apply; 10
3. Tobacco directed to be assessed for taxation; 11
4. Unmanufactured agricultural products; 12
5. Aircraft not used in the business of transporting persons or property for 13
compensation or hire; and 14
6. [Federally documented vessels not used in the business of transporting 15
persons or property for compensation or hire, or for other commercial 16
purposes; and 17
7. ]Privately owned leasehold interests in residential property described in 18
KRS 132.195(2)(g); and 19
(g) Forty-five cents ($0.45) upon each one hundred dollars ($100) of value of all 20
other property directed to be assessed for taxation shall be paid by the owner 21
or person assessed, except as provided in KRS 132.030, 132.200, 136.300, 22
and 136.320, providing a different tax rate for particular property. 23
(2) Notwithstanding subsection (1)(a) of this section, the state tax rate on real property 24
shall be reduced to compensate for any increase in the aggregate assessed value of 25
real property to the extent that the increase exceeds the preceding year's assessment 26
by more than four percent (4%), excluding: 27 UNOFFICIAL COPY 25 RS BR 975
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(a) The assessment of new property as defined in KRS 132.010(8); 1
(b) The assessment from property which is subject to tax increment financing 2
pursuant to KRS Chapter 65; and 3
(c) The assessment from leasehold property which is owned and financed by a 4
tax-exempt governmental unit, or tax-exempt statutory authority under the 5
provisions of KRS Chapter 103 and entitled to the reduced rate of one and 6
one-half cents ($0.015) pursuant to subsection (1)(f) of this section. In any 7
year in which the aggregate assessed value of real property is less than the 8
preceding year, the state rate shall be increased to the extent necessary to 9
produce the approximate amount of revenue that was produced in the 10
preceding year from real property. 11
(3) By July 1 each year, the department shall compute the state tax rate applicable to 12
real property for the current year in accordance with the provisions of subsection 13
(2) of this section and certify the rate to the county clerks for their use in preparing 14
the tax bills. If the assessments for all counties have not been certified by July 1, the 15
department shall, when either real property assessments of at least seventy-five 16
percent (75%) of the total number of counties of the Commonwealth have been 17
determined to be acceptable by the department, or when the number of counties 18
having at least seventy-five percent (75%) of the total real property assessment for 19
the previous year have been determined to be acceptable by the department, make 20
an estimate of the real property assessments of the uncertified counties and compute 21
the state tax rate. 22
(4) If the tax rate set by the department as provided in subsection (2) of this section 23
produces more than a four percent (4%) increase in real property tax revenues, 24
excluding: 25
(a) The revenue resulting from new property as defined in KRS 132.010(8); 26
(b) The revenue from property which is subject to tax increment financing 27 UNOFFICIAL COPY 25 RS BR 975
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pursuant to KRS Chapter 65; and 1
(c) The revenue from leasehold property which is owned and financed by a tax-2
exempt governmental unit, or tax-exempt statutory authority under the 3
provisions of KRS Chapter 103 and entitled to the reduced rate of one and 4
one-half cents ($0.015) pursuant to subsection (1) of this section; 5
the rate shall be adjusted in the succeeding year so that the cumulative total of each 6
year's property tax revenue increase shall not exceed four percent (4%) per year. 7
(5) The provisions of subsection (2) of this section notwithstanding, the assessed value 8
of unmined coal certified by the department after July 1, 1994, shall not be included 9
with the assessed value of other real property in determining the state real property 10
tax rate. All omitted unmined coal assessments made after July 1, 1994, shall also 11
be excluded from the provisions of subsection (2) of this section. The calculated 12
rate shall, however, be applied to unmined coal property, and the state revenue shall 13
be devoted to the program described in KRS 146.550 to 146.570, except that four 14
hundred thousand dollars ($400,000) of the state revenue shall be paid annually to 15
the State Treasury and credited to the Office of Energy Policy for the purpose of 16
public education of coal-related issues. 17
Section 9. KRS 132.200 is amended to read as follows: 18
All property subject to taxation for state purposes shall also be subject to taxation in the 19
county, city, school, or other taxing district in which it has a taxable situs, except the 20
class of property described in KRS 132.030 and the following classes of property, which 21
shall be subject to taxation for state purposes only: 22
(1) Capital stock of savings and loan associations; 23
(2) Machinery actually engaged in manufacturing, products in the course of 24
manufacture, and raw material actually on hand at the plant for the purpose of 25
manufacture. The printing, publication, and distribution of a newspaper or operating 26
a job printing plant shall be deemed to be manufacturing; 27 UNOFFICIAL COPY 25 RS BR 975
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(3) (a) Commercial radio and television equipment used to receive, capture, produce, 1
edit, enhance, modify, process, store, convey, or transmit audio or video 2
content or electronic signals which are broadcast over the air to an antenna; 3
(b) Equipment directly used or associated with the equipment identified in 4
paragraph (a) of this subsection, including radio and television towers used to 5
transmit or facilitate the transmission of the signal broadcast, but excluding 6
telephone and cellular communications towers; and 7
(c) Equipment used to gather or transmit weather information; 8
(4) Unmanufactured agricultural products. They shall be exempt from taxation for state 9
purposes to the extent of the value, or amount, of any unpaid nonrecourse loans 10
thereon granted by the United States government or any agency thereof, and except 11
that cities and counties may each impose an ad valorem tax of not exceeding one 12
and one-half cents ($0.015) on each one hundred dollars ($100) of the fair cash 13
value of all unmanufactured tobacco and not exceeding four and one-half cents 14
($0.045) on each one hundred dollars ($100) of the fair cash value of all other 15
unmanufactured agricultural products, subject to taxation within their limits that are 16
not actually on hand at the plants of manufacturing concerns for the purpose of 17
manufacture, nor in the hands of the producer or any agent of the producer to whom 18
the products have been conveyed or assigned for the purpose of sale; 19
(5) All privately owned leasehold interest in industrial buildings, as defined under KRS 20
103.200, owned and financed by a tax-exempt governmental unit, or tax-exempt 21
statutory authority under the provisions of KRS Chapter 103, except that the rate 22
shall not apply to the proportion of value of the leasehold interest created through 23
any private financing; 24
(6) Tangible personal property which has been certified as a pollution control facility as 25
defined in KRS 224.1-300. In the case of tangible personal property certified as a 26
pollution control facility which is incorporated into a landfill facility, the tangible 27 UNOFFICIAL COPY 25 RS BR 975
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personal property shall be presumed to remain tangible personal property for 1
purposes of this subsection if the tangible personal property is being used for its 2
intended purposes; 3
(7) On and after January 1, 1977, the assessed value of unmined coal shall be included 4
in the formula contained in KRS 132.590(9) in determining the amount of county 5
appropriation to the office of the property valuation administrator; 6
(8) Motor vehicles qualifying for permanent registration as historic motor vehicles 7
under the provisions of KRS 186.043. However, nothing herein shall be construed 8
to exempt historical motor vehicles from the usage tax imposed by KRS 138.460; 9
(9) All motor vehicles: 10
(a) Held for sale in the inventory of a licensed motor vehicle dealer, including 11
motor vehicle auction dealers, which are not currently titled and registered in 12
Kentucky and are held on an assignment pursuant to the provisions of KRS 13
186A.230; 14
(b) That are in the possession of a licensed motor vehicle dealer, including 15
licensed motor vehicle auction dealers, for sale, although ownership has not 16
been transferred to the dealer; and 17
(c) With a salvage title held by an insurance company; 18
(10) Machinery or equipment owned by a business, industry, or organization in order to 19
collect, source separate, compress, bale, shred, or otherwise handle waste materials 20
if the machinery or equipment is primarily used for recycling purposes as defined in 21
KRS 139.010; 22
(11) New farm machinery and other equipment held in the retailer's inventory for sale 23
under a floor plan financing arrangement by a retailer, as defined under KRS 24
365.800; 25
(12) New boats and new marine equipment held for retail sale under a floor plan 26
financing arrangement by a dealer registered under KRS 235.220; 27 UNOFFICIAL COPY 25 RS BR 975
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(13) Aircraft not used in the business of transporting persons or property for 1
compensation or hire if an exemption is approved by the county, city, school, or 2
other taxing district in which the aircraft has its taxable situs; 3
(14) [Federally documented vessels not used in the business of transporting persons or 4
property for compensation or hire or for other commercial purposes, if an 5
exemption is approved by the county, city, school, or other taxing district in which 6
the federally documented vessel has its taxable situs; 7
(15) ]Any nonferrous metal that conforms to the quality, shape, and weight 8
specifications set by the New York Mercantile Exchange's special contract rules for 9
metals, and which is located or stored in a commodity warehouse and held on 10
warrant, or for which a written request has been made to a commodity warehouse to 11
place it on warrant, according to the rules and regulations of a trading facility. In 12
this subsection: 13
(a) "Commodity warehouse" means a warehouse, shipping plant, depository, or 14
other facility that has been designated or approved by a trading facility as a 15
regular delivery point for a commodity on contracts of sale for future delivery; 16
and 17
(b) "Trading facility" means a facility that is designated by or registered with the 18
federal Commodity Futures Trading Commission under 7 U.S.C. secs. 1 et 19
seq. "Trading facility" includes the Board of Trade of the City of Chicago, the 20
Chicago Mercantile Exchange, and the New York Mercantile Exchange; 21
(15)[(16)] Qualifying voluntary environmental remediation property for a period of three 22
(3) years following the Energy and Environment Cabinet's issuance of a No Further 23
Action Letter or its equivalent, pursuant to the correction of the effect of all known 24
releases of hazardous substances, pollutants, contaminants, petroleum, or petroleum 25
products located on the property consistent with a corrective action plan approved 26
by the Energy and Environment Cabinet pursuant to KRS 224.1-400, 224.1-405, or 27 UNOFFICIAL COPY 25 RS BR 975
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224.60-135, and provided the cleanup was not financed through a public grant 1
program of the petroleum storage tank environmental assurance fund; 2
(16)[(17)] Biotechnology products held in a warehouse for distribution by the 3
manufacturer or by an affiliate of the manufacturer. For the purposes of this section: 4
(a) "Biotechnology products" means those products that are applicable to the 5
prevention, treatment, or cure of a disease or condition of human beings and 6
that are produced using living organisms, materials derived from living 7
organisms, or cellular, subcellular, or molecular components of living 8
organisms. Biotechnology products does not include pharmaceutical products 9
which are produced from chemical compounds; 10
(b) "Warehouse" includes any establishment that is designed to house or store 11
biotechnology products, but does not include blood banks, plasma centers, or 12
other similar establishments; and 13
(c) "Affiliate" means an individual, partnership, or corporation that directly or 14
indirectly owns or controls, or is owned or controlled by, or is under common 15
ownership or control with, another individual, partnership, or corporation; 16
(17)[(18)] Recreational vehicles held for sale in a retailer's inventory; 17
(18)[(19)] A privately owned leasehold interest in residential property described in KRS 18
132.195(2)(g), if an exemption is approved by the county, city, school, or other 19
taxing district in which the residential property is located; and 20
(19)[(20)] Prefabricated homes held for sale in a manufacturer's or retailer's inventory. 21
Section 10. This Act takes effect January 1, 2026. 22