CHAPTER 146 Natural Resources

146.010. Functions. [Repealed.]

Compiler’s Notes.

This section (4618-121: amend. Acts 1944, ch. 6, § 6; 1948, ch. 229, § 8; 1956 (1st Ex. Sess.), ch. 7, Art. VII, § 11; 1960, ch. 68, Art. X, § 7; 1966, ch. 255, § 139) was repealed by Acts 1974, ch. 74, Art. III, § 14.

146.020. Organization of department — Divisions. [Repealed.]

Compiler’s Notes.

This section (4618-122: amend. Acts 1944, ch. 6, § 7; 1946, ch. 52, § 5; 1948, ch. 229, § 9; 1956 (1st Ex. Sess.), ch. 7, Art. VII, § 12; 1960, ch. 68, Art. X, § 8; 1964, ch. 67, § 2) was repealed by Acts 1974, ch. 74, Art. III, § 14.

146.025. Conservation board — Functions — Members, appointment, qualifications, terms. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1964, ch. 71, § 1) was repealed by Acts 1974, ch. 74, Art. III, § 14.

146.030. Division of Game and Fish. [Repealed.]

Compiler’s Notes.

This section (1954d-9, 4618-123) was repealed by Acts 1944, ch. 6, § 8.

146.040. Division of Parks. [Repealed.]

Compiler’s Notes.

This section (4618-124) was repealed by Acts 1960, ch. 68, Art. X, § 7.

146.050. Division of forestry. [Repealed.]

Compiler’s Notes.

This section (4618-125: amend. Acts 1946, ch. 194) was repealed by Acts 1974, ch. 74, Art. III, § 14.

146.060. Division of Publicity. [Repealed.]

Compiler’s Notes.

This section (4618-126: amend. Acts 1952, ch. 215) was repealed by Acts 1956 (1st Ex. Sess.), ch. 7, Art. VIII, § 4.

146.070. Division of Archaeology. [Repealed.]

Compiler’s Notes.

This section (4618-127: amend. Acts 1956 (1st Ex. Sess.), ch. 7, Art. VII, § 10) was repealed by Acts 1960, ch. 68, Art. X, § 7.

146.080. Division of Conservation — Components — Functions.

There is hereby created, within the Department for Natural Resources in the Energy and Environment Cabinet, a Division of Conservation. The division shall consist of a Soil and Water Conservation Commission, a director, and such officers, employees, and agents as the commission may deem necessary for carrying out the function of the division, through the commission and the director, to assist soil and water conservation districts and watershed conservancy districts organized under KRS Chapter 262 in carrying out the functions, powers, and duties conferred upon them by such chapter.

History. Enact. Acts 1946, ch. 52, § 1; 1966, ch. 23, § 55; 1974, ch. 74, Art. III, § 13(1); 2010, ch. 24, § 117, effective July 15, 2010.

146.090. Soil and Water Conservation Commission.

  1. The secretary of the Energy and Environment Cabinet, with the approval of the Soil and Water Conservation Commission shall divide the state into nine (9) soil and water conservation areas which shall contain as nearly as practicable, an equal number of soil and water conservation districts;
  2. The Soil and Water Conservation Commission shall consist of nine (9) members, not more than five (5) of whom shall be of the same political party, to be appointed by the secretary of the Energy and Environment Cabinet with the approval of the Governor;
  3. One (1) member shall be appointed from each of the areas from a list of two (2) names submitted from each area by the supervisors of the soil and water conservation districts that have their principal offices therein. All members shall be supervisors of soil and water conservation districts;
  4. The term of office of each member shall be four (4) years; provided that, whenever a member of the commission ceases to hold the office of district supervisor by virtue of which he is serving on the commission, his term of office as a member of the commission shall be terminated. In the case of any vacancy other than the one (1) caused by the expiration of a term, the secretary of the Energy and Environment Cabinet, with the approval of the Governor, shall appoint the successor from a list of two (2) names submitted by the supervisors of the soil and water conservation area which was represented by the former member. The successor shall also be a supervisor of a soil and water conservation district;
  5. The members of the commission shall designate a chairman from among their members and may from time to time change such designation. The commission shall keep a record of its official actions. A majority of the commission shall constitute a quorum. The commission may call upon the Attorney General for legal services as it may require. It may delegate to its chairman, any of its members, the director of the division, or any officer, employee, or agent, powers and duties as it deems proper. Members of the commission shall receive no compensation for their services, but shall be entitled to expenses, including traveling expenses, necessarily incurred in discharging their duties;
  6. The following persons are advisory members of the commission by virtue of their offices: the secretary of the Energy and Environment Cabinet, the Commissioner of Agriculture, the director of the agricultural experiment station, the director of vocational education, and the state conservationist of the United States Department of Agriculture.

HISTORY: Enact. Acts 1946, ch. 52, § 2; 1952, ch. 202; 1956 (1st Ex. Sess.), ch. 7, Art. VII, § 13; 1960, ch. 68, Art. XIV, § 1; 1966, ch. 23, § 56; 1974, ch. 74, Art. III, § 13(1); 1984, ch. 111, § 80, effective July 13, 1984; 2010, ch. 24, § 118, effective July 15, 2010; 2017 ch. 117, § 2, effective June 29, 2017.

146.100. Director of Division of Conservation — Qualifications — Compensation — Powers — Duties.

  1. The secretary of the Energy and Environment Cabinet, with the approval of the Soil and Water Conservation Commission shall appoint a director of the Division of Conservation with experience in professional agricultural activities and who shall serve as executive officer for the commission. The director shall serve at the will of, and receive compensation as may be determined by the secretary of the Energy and Environment Cabinet with the advice of the Soil and Water Conservation Commission. In addition to any other duties assigned to him or herby the secretary of the Energy and Environment Cabinet, the director shall exercise, subject to the approval of the secretary, general administrative supervision over all activities, employees and property of the commission;
  2. The secretary of the Energy and Environment Cabinet may employ other officers, employees, and agents, who shall serve at his or her will as he or she deems necessary, with the advice of the Soil and Water Conservation Commission, and shall provide for surety bonds for members, the director, officers, employees or agents if entrusted with funds or property.

HISTORY: Enact. Acts 1946, ch. 52, § 3; 1956 (1st Ex. Sess.), ch. 7, Art. VII, § 14; 1960, ch. 68, Art. XIV, § 2; 1966, ch. 23, § 57; 1974, ch. 74, Art. III, § 13(1); 2010, ch. 24, § 119, effective July 15, 2010; 2017 ch. 117, § 3, effective June 29, 2017.

146.110. Powers and functions of Soil and Water Conservation Commission.

  1. The commission shall have the general power to take any action it may consider necessary or proper to assist soil and water conservation districts, agricultural districts, or watershed conservancy districts in carrying out their functions, powers, duties, and programs in accordance with the provisions of KRS Chapter 262, and for such purpose it may furnish financial and other aid to the districts and perform such services for them at their request as may be possible under available appropriations and resources;
  2. The commission has all the powers and duties formerly possessed by the State Soil Conservation Committee;
  3. The commission shall take any action it may consider necessary or proper in order to discharge for the state any of the state’s functions, responsibilities, or duties relating to flood control, drainage, and other activities with respect to the conservation, utilization, or control of soil or water resources;
  4. The commission may request the secretary of the Energy and Environment Cabinet to promulgate those administrative regulations as may be necessary to the performance of its duties and may enter into and execute any agreements or legal instruments that may be necessary for these purposes, and the commission shall have the authority to acquire necessary supplies, materials, and equipment, and warehousing, servicing, and maintenance facilities for equipment.

HISTORY: Enact. Acts 1946, ch. 52, § 4; 1960, ch. 68, Art. XIV, § 3; 1966, ch. 23, § 58; 1994, ch. 241, § 2, effective July 15, 1994; 2017 ch. 117, § 4, effective June 29, 2017.

Research References and Practice Aids

Cross-References.

Heavy or specialized machinery, authority of commission to acquire and make available to soil conservation districts, KRS 262.610 to 262.660 .

146.115. Kentucky soil erosion and water quality cost-share fund — Uses — Administrative regulations.

  1. There is established the “Kentucky Soil Erosion and Water Quality Cost-Share Fund” to be administered by the Soil and Water Conservation Commission. Moneys from the fund shall be used for cost-share programs to provide financial assistance for implementation of best management practices for the following purposes:
    1. Providing cleaner water through the reduction in sediment loading of Kentucky streams, rivers, and lakes;
    2. Reducing the loss of topsoil vital to the sustained production of food and fiber; and
    3. Preventing surface water and groundwater pollution.
  2. The commission is empowered to promulgate administrative regulations establishing practices eligible for cost-sharing funds, prioritizing applications, and prescribing amounts and limits of cost sharing. Practices eligible for cost-sharing funds shall include agricultural and silvicultural practices. Local conservation districts shall determine the eligibility of persons to receive the funds allocated to the districts by the commission. Priority for funding within each local conservation district shall be given to animal waste management systems, where animal waste has been identified as a water pollution problem, and to members of an agricultural district.
  3. Any person engaged in agricultural or silvicultural production may be considered for funding under this section if the person has had prepared a soil and water conservation plan with the local conservation district, has had prepared a forest management or forest stewardship plan, or has had prepared a groundwater protection plan and agrees to maintain best management practices for a period of time specified by the commission.
  4. Up to five percent (5%) of any total annual appropriation may be used for administrative costs of the local conservation districts and the commission.

History. Enact. Acts 1994, ch. 241, § 1, effective July 15, 1994; 1994, ch. 390, § 34, effective July 15, 1994.

Legislative Research Commission Note.

(1/11/95). 1994 Ky. Acts ch. 390, sec. 34, originally codified as KRS 146.121 , is identical to this statute and has been merged into this statute.

146.120. KRS 146.080 to 146.110 are in addition to other laws. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 52, § 6) was repealed by Acts 1974, ch. 74, Art. III, § 14.

146.121. Kentucky soil erosion and water quality cost-share fund. [Renumbered by merger into KRS 146.115.]

Legislative Research Commission Note.

(1/11/95). This statute is identical to KRS 146.115 and has been merged into that statute.

146.130. Division of Recreation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 124, § 8) was repealed by Acts 1960, ch. 68, Art. X, § 7.

146.131. Cabinet’s duty to transmit information concerning abandonment of railroad corridors to the Kentucky Department of Parks and to the Railtrail Development Office.

The Energy and Environment Cabinet, including any agency or other unit of government attached to the cabinet, shall immediately transmit to the Kentucky Department of Parks and to the Commonwealth’s Railtrail Development Office in the Department for Local Government any information received from a railroad or other person having an ownership interest in a railroad corridor pertaining to a proposed or pending action or proceeding to obtain federal authority for the regulatory abandonment of that railroad corridor.

History. Enact. Acts 2000, ch. 338, § 7, effective July 14, 2000; 2010, ch. 24, § 120, effective July 15, 2010.

146.140. Functions of division. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 124, § 9) was repealed by Acts 1960, ch. 68, Art. X, § 7.

146.150. State Recreation Board. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 124, § 10) was repealed by Acts 1960, ch. 68, Art. X, § 7.

146.160. Director of Recreation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 124, § 11) was repealed by Acts 1960, ch. 68, Art. X, § 7.

Operation of Locks

146.180. Lock fee.

  1. The Energy and Environment Cabinet may assess a fee for the use of any lock on a navigable waterway operated by the Commonwealth and formerly under jurisdiction of the United States Army Corps of Engineers and pursuant to completion of negotiations authorized by KRS 151.580 .
  2. The fee shall not exceed five dollars ($5) each time the lock gates are used regardless of the number of craft passing through said lock.

History. Enact. Acts 1984, ch. 325, § 1, effective July 13, 1984; 2010, ch. 24, § 121, effective July 15, 2010.

146.185. Use of lock without payment of fee prohibited — Dates of lock operations — Remittance of fees collected.

  1. No person shall attempt to utilize any lock on a navigable waterway operated by the Commonwealth without payment of the fee prescribed by KRS 146.180(2). At the time any person attempts to utilize the lock, the fee must be paid to the lockmaster or the employee who provides the service of opening the lock.
  2. The months, days and hours of lock operation shall be prescribed by the Energy and Environment Cabinet.
  3. Each Monday following a period of lock operation, those individuals responsible for collection of fees shall remit all moneys collected to the cabinet in a manner prescribed by the cabinet.

History. Enact. Acts 1984, ch. 325, § 2, effective July 13, 1984; 2010, ch. 24, § 122, effective July 15, 2010.

Wild Rivers System

146.200. Title.

KRS 146.200 to 146.360 may be cited as the “Kentucky Wild Rivers Act.”

History. Enact. Acts 1972, ch. 117, § 1.

NOTES TO DECISIONS

1.Constitutionality.

The Kentucky Wild Rivers Act is constitutional. Commonwealth ex rel. Department for Natural Resources & Environmental Protection v. Stephens, 539 S.W.2d 303, 1976 Ky. LEXIS 57 ( Ky. 1976 ).

2.Condemnation of Property.

The Kentucky Wild Rivers Act is enabling legislation and, as such, the Commonwealth is required by Const., § 13 to pay for what it takes before the taking. Commonwealth ex rel. Department for Natural Resources & Environmental Protection v. Stephens, 539 S.W.2d 303, 1976 Ky. LEXIS 57 ( Ky. 1976 ).

Cited:

Cumberland Falls Chair Lift, Inc. v. Commonwealth, 536 S.W.2d 316, 1976 Ky. LEXIS 71 ( Ky. 1976 ); Commonwealth ex rel. Department for Natural Resources & Environmental Protection v. Williams, 536 S.W.2d 474, 1976 Ky. LEXIS 84 ( Ky. 1976 ).

Research References and Practice Aids

Kentucky Law Journal.

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

Kentucky Law Survey, Bratt, Property, 73 Ky. L.J. 459 (1984-85).

Notes, Private Property and Environmental Regulatory Takings: A Forward Look into Rights and Remedies, as Illustrated by an Excursion into the Wild Rivers Act of Kentucky, 73 Ky. L.J. 999 (1984-85).

146.210. Definitions used in KRS 146.210 to 146.360.

As used in KRS 146.210 to 146.360 , the words listed herein shall have the following respective meanings, unless another or different meaning or intent shall be clearly indicated by the context:

  1. “Stream or watercourse” shall mean a flowing body of water or a section or portion thereof, including rivers, streams, and creeks.
  2. “Free flowing” shall mean existing or flowing in a natural condition without impoundment, diversion, straightening, riprapping, or other modification of the waterway. The existence, however, of low dams, diversion works, and other minor structures at the time any stream is proposed for inclusion in the Wild Rivers System shall not automatically bar its consideration for such inclusion; provided, that this shall not be construed to authorize or to be intended to encourage future construction of such structures within components of the Wild Rivers System.
  3. “Road” shall mean a highway, a hard-surfaced road, or an improved or unimproved dirt road. The existence, however, of unimproved roads at the time any stream is proposed for inclusion in the Wild Rivers System shall not automatically bar its consideration for such inclusion; provided, that this shall not be construed to authorize or to be intended to encourage future construction of such roads where this would be contrary to the provisions of KRS 146.200 to 146.360 .
  4. “Wilderness type recreation” shall mean activities such as fishing, hunting, canoeing, camping, hiking, horseback riding, exploring, archaeological and scientific investigation, and scenic and aesthetic enjoyment, which utilizes and protects to the highest degree the primitive and natural values of the area.
  5. “Visual horizon” shall mean the normal distance to which land and vegetative features can be unobstructedly viewed from the center of the stream.
  6. “Access point” shall mean an area along the stream under public ownership, or under easement acquired by agreement with a private landowner. This area would be available for public recreational use including, but not limited to, the launching of boats, picnicking, and camping.
  7. “Secretary” shall mean the secretary of the Energy and Environment Cabinet or the successor to that office.
  8. “Office” shall mean the Office of Kentucky Nature Preserves.

HISTORY: Enact. Acts 1972, ch. 117, § 2; 1974, ch. 74, Art. III, § 13(9); 1976, ch. 197, § 1; 2010, ch. 24, § 123, effective July 15, 2010; 2017 ch. 117, § 5, effective June 29, 2017; 2018 ch. 29, § 10, effective July 14, 2018.

NOTES TO DECISIONS

Cited:

Commonwealth, Natural Resources & Environmental Protection Cabinet v. Stearns Coal & Lumber Co., 678 S.W.2d 378, 1984 Ky. LEXIS 204 ( Ky. 1984 ).

Research References and Practice Aids

Kentucky Law Journal.

Comment, Commonwealth v. Stephens: The Taking Doctrine at Work in Environmental Land Use Planning, 65 Ky. L.J. 729 (1976-77).

146.220. Legislative intent.

The General Assembly hereby recognizes that certain streams of Kentucky possess outstanding and unique scenic, recreational, geological, fish and wildlife, botanical, historical, archaeological and other scientific, aesthetic, and cultural values. It is the policy of the General Assembly to complement dam construction and development projects on Kentucky watercourses with other equally important and beneficial uses of our water resources. Therefore, it is hereby declared that in order to afford the citizens of the Commonwealth an opportunity to enjoy natural streams, to attract out-of-state visitors, to assure the well-being of our tourist industry, to preserve for future generations the beauty of certain areas untrammeled by man, it is in the interest of the Commonwealth to preserve some streams or portions thereof in their free-flowing condition because their natural, scenic, scientific, and aesthetic values outweigh their value for water development and control purposes now and in the future. For aesthetic, as well as ecological reasons, the foremost priority shall be to preserve the unique primitive character of those streams in Kentucky which still retain a large portion of their natural and scenic beauty, and to prevent future infringement on that beauty by impoundments or other man-made works. Since the stream areas are to be maintained in a natural state, they will also serve as areas for the perpetuation of Kentucky’s wild fauna and flora. Few such streams remain in the Eastern portion of the United States, and the General Assembly feels a strong obligation to the people of Kentucky to preserve these remnants of their proud heritage. It is the purpose of KRS 146.200 to 146.360 to establish a Wild Rivers System by designating certain streams for immediate inclusion in the system and by prescribing the procedures and criteria for protecting and administering the system. It is not the intent of KRS 146.200 to 146.360 to require or to authorize acquisition of all lands or interests in lands within the boundaries of the stream areas but to assure preservation of the scenic, ecological and other values and to provide proper management of the recreational, wildlife, water and other resources. It is the intent of KRS 146.200 to 146.360 to impose reasonable regulations as to the use of private and public land within the authorized boundaries of wild rivers for the general welfare of the people of the Commonwealth, and where necessary, to enable the department to acquire easements or lesser interests in or fee title to lands within the authorized boundaries of the wild rivers, so that the public trust in these unique natural rivers might be kept.

History. Enact. Acts 1972, ch. 117, § 3; 1976, ch. 197, § 2.

Opinions of Attorney General.

In order to conform with the purpose and legislative intent of the Wild Rivers Act, the protection embodied in said act must be extended immediately to all streams designated, for the moment the act went into effect the use of land became applicable so that once the legislature designates a stream, or portion thereof, as part of the wild rivers system, all development not in accordance with KRS 146.290 is prohibited. OAG 73-797 .

Research References and Practice Aids

Kentucky Law Journal.

Comment, Commonwealth v. Stephens: The Taking Doctrine at Work in Environmental Land Use Planning, 65 Ky. L.J. 729 (1976-77).

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

Kentucky Law Survey, Bratt, Property, 73 Ky. L.J. 459 (1984-85).

Notes, Private Property and Environmental Regulatory Takings: A Forward Look into Rights and Remedies, as Illustrated by an Excursion into the Wild Rivers Act of Kentucky, 73 Ky. L.J. 999 (1984-85).

146.230. Criteria for streams in Wild Rivers System.

Streams which substantially meet the following criteria are eligible for inclusion in the Wild Rivers System: Streams or sections of streams that are essentially free-flowing, with shorelines and scenic vistas essentially primitive and unchanged, free from evidence of the works of man, and pleasing to the eye. The waters shall not be polluted beyond feasible correction and shall be kept unpolluted once corrected according to standards established by the Energy and Environment Cabinet through the Office of Kentucky Nature Preserves. The area may provide a high quality fish and wildlife habitat, containing one or more unique or rare species for sport or observation. It may provide opportunities for scientific study or appreciation of essentially undisturbed ecological, geologic, or archaeologic conditions. It shall provide wilderness type recreation such as canoeing and hiking, or specialized uses without disturbing the primitive character of the area.

HISTORY: Enact. Acts 1972, ch. 117, § 4; 1976, ch. 197, § 3; 2010, ch. 24, § 124, effective July 15, 2010; 2018 ch. 29, § 11, effective July 14, 2018.

Research References and Practice Aids

Kentucky Law Journal.

Comment, Commonwealth v. Stephens: The Taking Doctrine at Work in Environmental Land Use Planning, 65 Ky. L.J. 729 (1976-77).

146.240. Designation of streams in Wild Rivers System. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 117, § 5; 1974, ch. 206, § 1) was repealed by Acts 1976, ch. 197, § 11.

146.241. Designation of streams in Wild Rivers System.

The streams or segments of streams to be included in this system, being classified by KRS 146.230 , are as follows:

  1. The Cumberland River from Summer Shoals to the backwater of Lake Cumberland;
  2. The Red River from the Ky. 746 bridge to the mouth of Swift Camp Creek. Nothing in KRS 146.220 to 146.360 shall be construed to prohibit that portion of the Red River between Peck’s Branch and Swift Camp Creek from being used to temporarily contain flood waters that may be impounded above the normal sustained pool level of any lake which may be created in the event a dam is constructed on the Red River near Bowen, Kentucky;
  3. The Rockcastle River from the Ky. 80 bridge to the backwater of Lake Cumberland. Nothing in KRS 146.220 to 146.360 shall be construed to prohibit or interfere with the relocating of Ky. 80 , including the construction of a bridge at a point approximately 2.35 miles downstream from the existing Ky. 80 bridge;
  4. The Green River from the eastern boundary of Mammoth Cave National Park extending downstream and including only that portion of the river within the Mammoth Cave National Park;
  5. The Big South Fork of the Cumberland River from the Tennessee border to Blue Herron;
  6. Martins Fork, Cumberland River from Ky. Highway 987 bridge to the eastern boundary of Cumberland Gap National Park;
  7. Rock Creek from the White Oak Junction bridge to the Kentucky-Tennessee border;
  8. Little South Fork, Cumberland River from the backwater of Lake Cumberland (mile 4.1) to the Kentucky Highway 92 bridge (mile 14.5) in Wayne and McCreary counties; and
  9. Bad Branch of Poor Fork, Cumberland River from the headwaters on Pine Mountain to the Ky. 932 bridge, including the entire watershed drained by all stream segments, except for that portion above a point 0.1 mile below the existing lake on the easternmost fork.

History. Enact. Acts 1976, ch. 197, § 4; 1986, ch. 326, § 1, effective July 15, 1986.

Research References and Practice Aids

Kentucky Law Journal.

Kentucky Law Survey, Bratt, Property, 73 Ky. L.J. 459 (1984-85).

Notes, Private Property and Environmental Regulatory Takings: A Forward Look into Rights and Remedies, as Illustrated by an Excursion into the Wild Rivers Act of Kentucky, 73 Ky. L.J. 999 (1984-85).

146.250. Boundaries of stream areas.

The boundaries of a stream area associated with a stream or stream segment included in the Wild Rivers System by KRS 146.200 to 146.360 shall include at least the visual horizon from the stream, but not more than two thousand (2,000) feet from the center of the stream. The boundary shall further include access points, at the upstream and downstream boundary of the area.

HISTORY: Enact. Acts 1972, ch. 117, § 6; 1974, ch. 74, Art. III, § 13(9); 1976, ch. 197, § 5; 2010, ch. 24, § 125, effective July 15, 2010; 2018 ch. 29, § 12, effective July 14, 2018.

NOTES TO DECISIONS

1.Designation of Boundaries.

In action concerning rights to property within the wild rivers area of the Cumberland River to enjoin landowners from cutting timber and otherwise disturbing the area, landowners’ motion to dismiss should have been granted since no designation of boundaries had been made under this section, for until such designation is made there can be no violation. Commonwealth ex rel. Department for Natural Resources & Environmental Protection v. Stephens, 539 S.W.2d 303, 1976 Ky. LEXIS 57 ( Ky. 1976 ).

The provision for the designation of boundaries in this section is mandatory but the date for making the designation is directory. Commonwealth ex rel. Department for Natural Resources & Environmental Protection v. Stephens, 539 S.W.2d 303, 1976 Ky. LEXIS 57 ( Ky. 1976 ).

Cited:

Commonwealth, Natural Resources & Environmental Protection Cabinet v. Stearns Coal & Lumber Co., 678 S.W.2d 378, 1984 Ky. LEXIS 204 ( Ky. 1984 ).

Opinions of Attorney General.

In order to conform with the purpose and legislative intent of the Wild Rivers Act, the protection embodied in said act must be extended immediately to all streams designated, for the moment the act went into effect the use of land became applicable so that once the Legislature designates a stream, or portion thereof, as part of the Wild Rivers System, all development not in accordance with KRS 146.290 is prohibited. OAG 73-797 .

Research References and Practice Aids

Kentucky Law Journal.

Comment, Commonwealth v. Stephens: The Taking Doctrine at Work in Environmental Land Use Planning, 65 Ky. L.J. 729 (1976-77).

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

146.260. Recommendation of additional stream areas by Office of Kentucky Nature Preserves — Contents.

  1. The office shall study and from time to time submit to the Governor and to the General Assembly proposals for additions to the Wild Rivers System of streams and sections of streams that qualify for inclusion therein. Each proposal shall be accompanied by:
    1. A detailed map showing the boundaries of the stream or sections of streams and those adjacent lands needed to protect and administer the needed controls.
    2. The category of the proposed additions in accordance with KRS 146.230 .
    3. A detailed report on the factors which make the area a worthy addition to the system.
  2. The intention of this requirement is to insure that such studies will be made; it is not intended to preclude or discourage, but rather encourage similar studies and proposals by other agencies or by citizen groups working independently. Authority for additions to the Wild Rivers System shall remain exclusively with the Kentucky General Assembly.

HISTORY: Enact. Acts 1972, ch. 117, § 7; 1974, ch. 74, Art. III, § 13(9); 2010, ch. 24, § 126, effective July 15, 2010; 2018 ch. 29, § 13, effective July 14, 2018.

Research References and Practice Aids

Kentucky Law Journal.

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

Kentucky Law Survey, Bratt, Property, 73 Ky. L.J. 459 (1984-85).

146.270. Administration of system by Office of Kentucky Nature Preserves — Administrative regulations — Management plan.

The Wild Rivers System shall be administered by the Office of Kentucky Nature Preserves according to the policies and criteria set forth in KRS 146.200 to 146.360 . The cabinet upon recommendation of the office shall adopt rules or promulgate administrative regulations necessary for the preservation and enhancement of the stream areas as set forth in KRS 146.250 , and for control of recreational, educational, scientific, and other uses of these areas in a manner that shall not impair them. In administration primary emphasis shall be given to protecting aesthetic, scenic, historic, archaeologic, and scientific features of the area. The office shall develop a management plan for a designated stream area and shall publicize and hold public hearings and record the views expressed on each plan developed. Management plans for a given stream area may establish varying degrees of intensity for its protection, based on special attributes of each area, but shall follow the concepts embodied in KRS 146.230 . No public use of lands within the boundaries of a designated wild river area in which the state has acquired an interest shall be permitted prior to the development of a management plan.

HISTORY: Enact. Acts 1972, ch. 117, § 8; 1974, ch. 74, Art. III, § 13(1), (9); 1976, ch. 197, § 7; 2010, ch. 24, § 127, effective July 15, 2010; 2017 ch. 117, § 6, effective June 29, 2017; 2018 ch. 29, § 14, effective July 14, 2018.

Research References and Practice Aids

Kentucky Law Journal.

Comment, Commonwealth v. Stephens: The Taking Doctrine at Work in Environmental Land Use Planning, 65 Ky. L.J. 729 (1976-77).

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

Notes, Private Property and Environmental Regulatory Takings: A Forward Look into Rights and Remedies, as Illustrated by an Excursion into the Wild Rivers Act of Kentucky, 73 Ky. L.J. 999 (1984-85).

146.280. Acquisition of stream areas.

  1. Within the boundaries of a designated stream area, as established and authorized by the Kentucky General Assembly, the office shall be authorized and empowered to acquire by purchase, exercise of the rights of eminent domain, grant, gift, devise, or otherwise, the fee simple title, an easement, or any acceptable lesser interest in any lands, and by lease or conveyance, contract for the right to use and occupy any lands. Where property within such boundaries is owned by the federal government, the office can enter into agreements with the landowning agency concerning use of the property consistent with the objectives of KRS 146.200 to 146.360 . Nothing in KRS 146.200 to 146.360 shall be construed to deprive a landowner of the fee simple title to or lesser interest in his property without just compensation.
  2. The office may not exercise authority to acquire lands or interests in lands located within any incorporated city or county when such entities have in force a duly adopted, valid ordinance or plan for the management, zoning and protection of such lands in accordance with the provisions of KRS 146.200 to 146.360 .

HISTORY: Enact. Acts 1972, ch. 117, § 9; 1974, ch. 74, Art. III, § 13(9); 1976, ch. 197, § 8; 2010, ch. 24, § 128, effective July 15, 2010; 2017 ch. 117, § 7, effective June 29, 2017; 2018 ch. 29, § 15, effective July 14, 2018; 2019 ch. 44, § 24, effective June 27, 2019.

NOTES TO DECISIONS

Cited:

Commonwealth, Natural Resources & Environmental Protection Cabinet v. Stearns Coal & Lumber Co., 678 S.W.2d 378, 1984 Ky. LEXIS 204 ( Ky. 1984 ).

Research References and Practice Aids

Kentucky Law Journal.

Comment, Commonwealth v. Stephens: The Taking Doctrine at Work in Environmental Land Use Planning, 65 Ky. L.J. 729 (1976-77).

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

Notes, Private Property and Environmental Regulatory Takings: A Forward Look into Rights and Remedies, as Illustrated by an Excursion into the Wild Rivers Act of Kentucky, 73 Ky. L.J. 999 (1984-85).

146.290. Land uses permitted in stream area — Charge of use.

  1. The provisions of this section shall not apply to those uses existing at such time as a stream is included in the system.
  2. Land uses to be allowed within the boundaries of a designated stream area shall be as follows: New roads, structures or buildings may be constructed only where necessary to effect a use permitted under the other provisions of KRS 146.200 to 146.360 . Utility lines or pipelines may be constructed as approved by the office in writing and under provision that the affected land be restored as nearly as possible to its former state. This provision, however, shall in no way affect the rights between a landowner and a utility company or pipeline company. There shall be no strip mining as defined in KRS 350.010 , and select cutting of timber or other resource removal and agricultural use, may be allowed pursuant to regulations promulgated by the secretary upon the granting of a permit under the other provisions of KRS 146.200 to 146.360 . All instream disturbances such as dredging, shall be prohibited. Except for the management agency and any existing uses which do not conform to the purposes and intent of KRS 146.200 to 146.360, travel upon a wild river or any public lands within the designated boundaries thereof, shall be by foot, horseback, canoe, boat or other nonmechanical modes of transportation. If there are existing agricultural areas within the boundaries of the area, such areas may continue to be used for agricultural purposes.
  3. Any landowner within the boundaries of the area may apply to the office for a change of use to permit the select cutting of timber, a resource removal or an agricultural use upon his property located within the area. The office shall provide public notice within thirty (30) days of the receipt of the permit application, and the landowner or any interested person may, within thirty (30) days of the public notice, request a public hearing and provide any evidence or information as to whether the proposed use by the applying landowner is in accordance with the management plan developed pursuant to KRS 146.270 , the purpose and intent of the Wild Rivers Act as expressed in KRS 146.220 , and other applicable law.
  4. The office shall, within thirty (30) days of the close of the comment period, or public hearing, if one is requested, either:
    1. Issue an order, with accompanying opinion, denying the permit; or
    2. Issue an order, with accompanying opinion, granting the permit with such restrictions, terms and conditions as are appropriate to protect to the fullest extent possible the wild rivers area and the public trust therein within the intent of KRS 146.220 ; or
    3. Recommend an alternate use to which the land may be put under KRS 146.200 to 146.360 which is more consistent with the purposes and intent of KRS 146.200 to 146.360 than the use for which application was made; or
    4. Institute condemnation proceedings in the circuit court of the county in which the land is located or else negotiate a purchase of the land affected, or any interest therein.
  5. On or before thirty (30) days from the date of the office’s determination, the landowner may file with the office a written objection to the determination. If, within the next sixty (60) days the landowner and the secretary are unable to reach an agreement with respect to a modification of the determination, the office must either permit the use applied for, condemn the property, or petition the Franklin Circuit Court for an order restraining the proposed use. The order shall be entered immediately upon the filing of the petition and the execution of a bond without surety by the Commonwealth in an amount satisfactory to the court to indemnify the landowner against loss of profits from any wrongful restraint of the use of his property during the period from the filing of the petition until such time as the matter is concluded by the courts. The court shall review the decision as to both law and fact; but no factual finding shall be reversed unless clearly erroneous or else arbitrary, capricious, or an abuse of discretion.

HISTORY: Enact. Acts 1972, ch. 117, § 10; 1974, ch. 74, Art. III, § 13(9); 1976, ch. 197, § 9; 2018 ch. 29, § 16, effective July 14, 2018.

NOTES TO DECISIONS

1.Condemnation of Property.

The Kentucky Wild Rivers Act is enabling legislation and, as such, the Commonwealth is required by Const., § 13 to pay for what it takes before the taking. Commonwealth ex rel. Department for Natural Resources & Environmental Protection v. Stephens, 539 S.W.2d 303, 1976 Ky. LEXIS 57 ( Ky. 1976 ).

Cited:

Commonwealth, Natural Resources & Environmental Protection Cabinet v. Stearns Coal & Lumber Co., 678 S.W.2d 378, 1984 Ky. LEXIS 204 ( Ky. 1984 ).

Opinions of Attorney General.

In order to conform with the purpose and legislative intent of the Wild Rivers Act, the protection embodied in said act must be extended immediately to all streams designated, for the moment the act went into effect the use of land became applicable so that once the legislature designates a stream, or portion thereof, as part of the wild rivers system, all development not in accordance with this section is prohibited. OAG 73-797 .

Research References and Practice Aids

Kentucky Law Journal.

Comment, Commonwealth v. Stephens: The Taking Doctrine at Work in Environmental Land Use Planning, 65 Ky. L.J. 729 (1976-77).

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

Kentucky Law Survey, Bratt, Property, 73 Ky. L.J. 459 (1984-85).

Notes, Private Property and Environmental Regulatory Takings: A Forward Look into Rights and Remedies, as Illustrated by an Excursion into the Wild Rivers Act of Kentucky, 73 Ky. L.J. 999 (1984-85).

146.300. Determination of applicable law in conflict.

Any component of the Wild Rivers System that is or shall become a part of any state park, wildlife refuge, or similar state-administered area shall be subject to the provisions of KRS 146.200 to 146.360 and the laws under which the other areas may be administered, and in the case of conflict between the provisions of these laws the more restrictive provisions shall apply.

History. Enact. Acts 1972, ch. 117, § 11.

146.310. State agencies to office of activities affecting stream areas.

All state agencies shall promptly inform the office of any proceedings, studies, or other activities within their jurisdictions, and regardless of by whom requested, which are now in progress and which affect or may affect any of the streams specified in KRS 146.241 . They shall likewise inform the office of any such proceedings, studies or other activities that are hereafter commenced or resumed before they are commenced or resumed.

HISTORY: Enact. Acts 1972, ch. 117, § 12; 1974, ch. 74, Art. III, § 13(9); 1980, ch. 188, § 107, effective July 15, 1980; 2010, ch. 24, § 129, effective July 15, 2010; 2018 ch. 29, § 17, effective July 14, 2018.

146.320. Component of Wild Rivers System may be included in federal system.

Nothing in KRS 146.200 to 146.360 shall preclude a component of the Wild Rivers System from becoming a part of the National Wild and Scenic Rivers System. The office shall be directed to encourage and assist any federal studies for inclusion of Kentucky streams in the National Wild and Scenic Rivers System. The office may enter into written cooperative agreements for joint federal-state or interstate administration of a Kentucky component of the National Wild and Scenic Rivers System, provided agreements for the administration of water and land uses are not less restrictive than those set forth in KRS 146.200 to 146.360 .

HISTORY: Enact. Acts 1972, ch. 117, § 13; 1974, ch. 74, Art. III, § 13(9); 2010, ch. 24, § 130, effective July 15, 2010; 2017 ch. 117, § 8, effective June 29, 2017; 2018 ch. 29, § 18, effective July 14, 2018.

146.330. Employment of assistants.

The office may employ such technical, clerical, stenographic, and other employees and assistants as are required to effectively carry out the duties and responsibilities as provided in KRS 146.200 to 146.360 .

HISTORY: Enact. Acts 1972, ch. 117, § 14; 1974, ch. 74, Art. III, § 13(9); 2010, ch. 24, § 131, effective July 15, 2010; 2017 ch. 117, § 9, effective June 29, 2017; 2018 ch. 29, § 19, effective July 14, 2018.

146.340. Wild Rivers System fund created.

A fund for the purpose of carrying out the provisions of KRS 146.200 to 146.360 is hereby created to be designated as a “Wild Rivers System fund” to consist of all revenues derived from privileges, concessions, contracts, or otherwise, all moneys received by gifts, contributions, donations, and grants from public or private sources. Such “Wild Rivers System fund” shall be disbursed by the office, after appropriations are made by law, for administration and other expenses and for other purposes provided by KRS 146.200 to 146.360 .

HISTORY: Enact. Acts 1972, ch. 117, § 15; 1974, ch. 74, Art. III, § 13(1); 2010, ch. 24, § 132, effective July 15, 2010; 2018 ch. 29, § 20, effective July 14, 2018.

146.350. Enforcement.

It shall be the duty of the cabinet’s Office of Legal Services, or upon the secretary’s request, of the Attorney General, to bring an action for the recovery of the penalties provided for in KRS 146.990 and to bring an action for a restraining order, temporary or permanent injunction, for the prevention or correction of a condition constituting or threatening to constitute a violation of KRS 146.200 to 146.619 . All actions for injunctive relief for violation of KRS 146.200 to 146.619 shall be brought in the name of the Commonwealth of Kentucky by the cabinet’s Office of Legal Services, or upon the secretary’s request, by the Attorney General in the Franklin Circuit Court. If the action seeks recovery of penalties in addition to injunctive relief, it shall be brought to one (1) of the counties through which the designated portion of the river runs.

HISTORY: Enact. Acts 1972, ch. 117, § 16; 1974, ch. 74, Art. III, § 13(9); 1976, ch. 289, § 4; 1990, ch. 399, § 4, effective July 13, 1990; 2018 ch. 29, § 21, effective July 14, 2018.

Legislative Research Commission Note.

(10/6/97). 1996 Ky. Acts ch. 360 confirmed a reorganization by which the Department of Law in the Natural Resources and Environmental Protection Cabinet was changed to that cabinet’s Office of Legal Services. For this reason, under KRS 7.136(2), a reference to “Department of Law” in this statute has been changed to read “Office of Legal Services.”

146.360. Trespass.

Nothing in KRS 146.210 to 146.360 shall be construed to confer upon any member of the public any right to the use of or access to private lands within the boundary of a designated wild river.

History. Enact. Acts 1976, ch. 197, § 6 (1st sentence).

Nature Preserves System

146.410. Purpose of system of nature preserves.

  1. All areas within the borders of the Commonwealth, except those which are expressly dedicated by law for preservation and protection in their natural condition, are subject to alteration by human activity. As part of the continuing growth of the population and the economic development of the Commonwealth, it is necessary and desirable that the overall impact on the natural ecology be considered when major alterations are proposed affecting same, and that certain areas of unusual natural significance be set aside and preserved for the benefit of present and future generations. Such unique areas are valuable as laboratories for scientific research, as reservoirs of natural materials not all of the uses of which are now known, as habitats for plant and animal species and biotic communities, as living museums of the native landscape where people may observe nature’s web of life and our natural heritage, as places of historic and natural interest and scenic beauty, and as reminders of the vital human dependence upon fresh air, clean water, and unspoiled natural areas.
  2. It is therefore the public policy of the Commonwealth of Kentucky to secure for the people of present and future generations the benefits of an enduring resource of natural areas by establishing a system of nature preserves, protecting these areas and gathering and disseminating information regarding them, establishing and maintaining a registry of natural areas, and otherwise encouraging and assisting in the preservation of natural areas and features.

History. Enact. Acts 1976, ch. 118, § 2.

Research References and Practice Aids

Kentucky Law Journal.

Comment, Commonwealth v. Stephens: The Taking Doctrine at Work in Environmental Land Use Planning, 65 Ky. L.J. 729 (1976-77).

146.415. Definitions for KRS 146.410 to 146.530.

As used in KRS 146.410 to 146.530 :

  1. “Natural area” means any area of land or water, or of both land and water, in public or private ownership, which either retains, or has reestablished to some degree in the judgment of the office its natural character, though it need not be completely natural and undisturbed, or which has natural flora, fauna, biological, ecological, geological, scenic or archaeological features of scientific, aesthetic, cultural or educational interest;
  2. “Nature preserve” means a natural area, and land necessary for its protection, any estate, interest or right in which has been formally dedicated under the provisions of KRS 146.410 to 146.530 to be maintained as nearly as possible in its natural condition and to be used in a manner and under limitations consistent with its continued preservation, without impairment, disturbance or artificial development, for the public purposes of present and future scientific research, education, aesthetic enjoyment and habitat for plant and animal species and other natural objects;
  3. “Articles of dedication” means the writing by which any estate, interest or right in a natural area is formally dedicated, as provided in KRS 146.410 to 146.530 ;
  4. “Office” means the Office of Kentucky Nature Preserves;
  5. “System” means the state system of nature preserves established under KRS 146.410 to 146.530 ;
  6. “Cabinet” means the Energy and Environment Cabinet;
  7. “Executive director” means the executive director of the Office of Kentucky Nature Preserves; and
  8. “Secretary” means the secretary of the Energy and Environment Cabinet.

HISTORY: Enact. Acts 1976, ch 118, § 3; 1988, ch. 416, § 1, effective June 1, 1988; 2010, ch. 24, § 133, effective July 15, 2010; 2010, ch. 114, § 1, effective July 15, 2010; 2017 ch. 117, § 10, effective June 29, 2017; 2018 ch. 29, § 22, effective July 14, 2018.

146.420. Establishment of system.

A state system of nature preserves is established. The system shall consist of nature preserves dedicated as provided in KRS 146.410 to 146.530 .

History. Enact. Acts 1976, ch. 118, § 4.

146.425. Kentucky Nature Preserves Commission. [Repealed]

HISTORY: Enact. Acts 1976, ch. 118, § 5; 1978, ch. 384, § 28, effective June 17, 1978; 1988, ch. 416, § 2, effective June 1, 1988; repealed by 2018 ch. 29, § 65, effective July 14, 2018.

146.430. Office of Kentucky Nature Preserves — Executive director — Employees.

  1. The Office of Kentucky Nature Preserves is hereby created within the office of the secretary to carry out the purposes of KRS 146.200 to 146.619 . In order to effectuate and administer KRS 146.200 to 146.619 , the secretary may appoint a full-time executive director who shall be qualified by training and experience to perform the duties of this office and carry out the purpose of KRS 146.200 to 146.619, and who shall hold office at the pleasure of the secretary. The salary of the director shall be determined by the secretary. The executive director shall employ and fix the compensation of such personnel as may be necessary to effectuate the provisions of KRS 146.200 to 146.619.
  2. The executive director shall, upon the advice and consent of the secretary, provide for the allocation of the work and activities of all employees of the office.
  3. If federal or other grant funds become available to pay their salaries, the executive director may appoint and employ other persons that may be deemed necessary or desirable to accomplish the purposes of KRS 146.200 to 146.619 . The executive director shall determine the compensation, duties, and terms of employment of these employees, and grant-funded, time-limited positions shall be approved by the secretary as needed. Employees whose salaries are funded through federal or other grant funds shall not be counted in any tally of permanent employees made for employee cap or budgetary purposes.

HISTORY: Enact. Acts 1976, ch. 118, § 23; 2017 ch. 117, § 11, effective June 29, 2017; 2018 ch. 29, § 23, effective July 14, 2018.

146.435. Advisors to office.

Representatives of such agencies, institutions, organizations or individuals as the office may determine may serve as advisors to the office with the privilege of discussion and debate. Such advisors may receive such compensation as is deemed appropriate by the office.

HISTORY: Enact. Acts 1976, ch. 118, § 6; 2018 ch. 29, § 24, effective July 14, 2018.

146.440. Uses and purposes of nature preserves and natural areas.

In order to secure for the people of the Commonwealth of Kentucky of present and future generations the benefits of an environment having one or more of the characteristics of a natural area, the office is hereby empowered to acquire in the name of the Commonwealth of Kentucky and to hold in trust for the benefit of the general public an adequate system of nature preserves and natural areas in the manner herein set forth, and for the following uses and purposes:

  1. For scientific research in such fields as, but not limited to, ecology, taxonomy, genetics, forestry, pharmacology, agriculture, soil science, geology, paleontology, ornithology, herpetology, mammalogy, biology, entomology, agronomy, conservation, and all other natural sciences;
  2. For the teaching of biology, natural history, ecology, geology, conservation and other related subjects;
  3. As habitats for plant and animal species and other natural objects;
  4. As reservoirs of natural materials;
  5. As places of natural interest and beauty;
  6. As living illustrations of our natural heritage wherein one may observe and experience natural biotic and ecological systems of the earth and their processes;
  7. To promote understanding and appreciation of the aesthetic, cultural, scientific and spiritual values of our unpolluted and unspoiled environment;
  8. For the preservation and protection of nature preserves against modification or encroachment resulting from occupation, development or other use which would destroy their natural or aesthetic conditions;
  9. As places where people may observe nature’s web of life and our natural heritage, and as reminders of the vital human dependence upon unspoiled natural areas.

HISTORY: Enact. Acts 1976, ch. 118, § 7; 2018 ch. 29, § 25, effective July 14, 2018.

146.445. Coordination of activities of office and cabinet.

The office and the cabinet shall coordinate the activities of the office and those of the cabinet in an effective and practical manner, allocating those activities and functions pertaining to preservation and use of natural areas to the office.

HISTORY: Enact. Acts 1976, ch. 118, § 8; 2018 ch. 29, § 26, effective July 14, 2018.

146.450. Powers and duties of office.

To effectuate the purposes of KRS 146.410 to 146.530 , the office has the powers and duties enumerated as follows:

  1. To enforce rules pertaining to public use of and activities on nature preserves, and on any real property held by the office;
  2. To acquire by gift, devise, purchase, grant, agreement, dedication, and transfer the fee simple title, or any lesser right or interest, in real property containing natural areas, including but not limited to leasehold estates, easements, and licenses granting to the office specified rights of use or licenses denying to the grantor specified rights of use, or both, and to dedicate the same to the system of nature preserves as provided in KRS 146.410 to 146.530 ;
  3. To dedicate in the manner provided for in KRS 146.410 to 146.530 real property held by it as nature preserves;
  4. To transfer from or to the office real property or any interests or rights therein.

HISTORY: Enact. Acts 1976, ch. 118, § 9; 2018 ch. 29, § 27, effective July 14, 2018.

146.455. Allocation of funds.

Funds available for use by the cabinet for land acquisition, or for other designated activities, if not otherwise restricted, may be allocated by the cabinet to the office for land acquisition, or other herein authorized activities.

HISTORY: Enact. Acts 1976, ch. 118, § 10; 2018 ch. 29, § 28, effective July 14, 2018.

146.460. Public register of natural areas.

The office shall establish and publish a public register of natural areas which shall include areas other than nature preserves considered by the office to be particularly worthy of preservation for the public purposes of present and future scientific research, education, scenic and aesthetic enjoyment or which provide habitat and protection for plant and animal species and communities and other natural features. No natural area shall be construed to be unworthy of preservation because it is not included in the register. Publication of the register is notice to all public agencies that the registered natural areas are worthy of preservation. No area so registered shall be a nature preserve unless and until it shall have been dedicated as provided for in KRS 146.410 to 146.530 .

HISTORY: Enact. Acts 1976, ch. 118, § 11; 2018 ch. 29, § 29, effective July 14, 2018.

146.465. Acquisition of land or interest in land — Buffer areas — Articles of dedication.

The office is authorized and empowered for and on behalf of the Commonwealth of Kentucky:

  1. To accept and administer gifts, grants, devises and bequests of money, securities or property to be used by the office for the purposes of KRS 146.200 to 146.619 .
  2. To acquire natural areas by gift, devise, purchase or exchange, provided that any interest owned by the Commonwealth or by any subdivision thereof may be dedicated only by voluntary act of the agency having jurisdiction thereof.
  3. To acquire the fee simple interest or any one or more lesser estates, interests and rights therein, including, but not limited to, leasehold estates, easements, and licenses either granting the Commonwealth specified rights of use or licenses denying to the grantor specified rights of use, or both. Lesser than fee simple estates, particularly scenic easements, should be sought in the establishment of trails or other narrow or elongated or extensive uses.
  4. For the purpose of protecting a nature preserve, adjoining land that is not otherwise suitable for dedication as part of the nature preserve may be dedicated as buffer area in the same manner as provided in KRS 146.410 to 146.530 for the dedication of a nature preserve. A dedicated buffer area shall have the same protection under KRS 146.410 to 146.530 as a nature preserve.
  5. An estate, interest or right in a natural area may be dedicated by any agency of the Commonwealth having jurisdiction thereof, by any other unit of government within the state having jurisdiction thereof, and by private owners thereof in the same manner as the ordinary conveyance of land. A dedication shall be deemed effective, and a natural area shall become a nature preserve only upon the acceptance of the articles of dedication by the office. Articles of dedication shall be placed on public record in the proper place for recording deeds in the county or counties in which the area is located, and with the office at its Frankfort office.
  6. Articles of dedication may contain restrictions relating to management, use, development, transfer, and public access, as well as such other provisions as may be necessary to further the purposes of KRS 146.410 to 146.530 . Specifically, the donor, devisor or grantor of the preserve may prescribe the places where, and the means by which, the public may secure access to the preserve so as to protect the preserve from overuse and maintain the unencumbered private use of undedicated lands adjoining the preserve. The articles may likewise provide penalties and procedures to be applied in case of violation of their provisions. The articles may recognize and create reversionary rights, transfers upon conditions, and gifts. The articles may vary in provisions from one nature preserve to another in accordance with differences in the characteristics and conditions of the areas involved, or for other reasons found necessary by the office and the landowner.
  7. Upon such terms and conditions as the office may determine, the office may enter into amendments of any articles of dedication upon a finding by the office that such amendments will not permit an impairment, disturbance, use or development of the area inconsistent with the purposes of the articles of dedication or of KRS 146.410 to 146.530 ; provided, however, that if the fee simple interest in the area is not held by the Commonwealth of Kentucky under KRS 146.410 to 146.530 , no amendment shall be made without the written consent of the owner or owners of the other interests therein.

HISTORY: Enact. Acts 1976, ch. 118, § 12; 2018 ch. 29, § 30, effective July 14, 2018.

Opinions of Attorney General.

The Nature Preserves Commission may enforce the restrictions found in the Articles of Dedication for the Six Mile Island Nature Preserve as they relate to the submerged land surrounding the island that is included in the buffer zone leased from the county. OAG 87-78 .

146.470. Dedication of areas as nature preserves.

Public departments, commissions, boards, counties, municipalities, corporations, colleges, universities and all other agencies and instrumentalities of the Commonwealth and its political subdivisions are empowered, and urged to dedicate suitable areas within their jurisdictions as nature preserves.

History. Enact. Acts 1976, ch. 118, § 13.

146.475. Nature preserves to be held in trust.

The fee simple estates, or lesser interests, or other contractual rights held as nature preserves are hereby declared to be held in trust, in the name of the Commonwealth, for those uses and purposes expressed in KRS 146.410 to 146.530 which are not prohibited by the articles of dedication, for the benefit of the people of the Commonwealth of Kentucky of present and future generations and are declared to be put to their highest, best and most important use for the public benefit. Said estates, interests, or rights held as nature preserves shall be managed and protected in the manner approved by, and subject to the rules and regulations established by the office, and they shall not be taken by another public body through eminent domain or otherwise for any other use, except after a finding by the office of the existence of an imperative and unavoidable public necessity for such other public use. Except as may otherwise be provided in the articles of dedication, the office may grant or dispose of an estate, interest or right held in a nature preserve only after a finding by the office of the existence of an imperative and unavoidable public necessity for such grant or disposition; provided however, that where less than a fee simple interest has been dedicated, such disposition or grant shall also require the written consent of the owner or owners of the other interests therein.

HISTORY: Enact. Acts 1976, ch. 118, § 14; 2018 ch. 29, § 31, effective July 14, 2018.

146.480. Notification by office of proposed action.

Before the office shall make any findings of the existence of an imperative and unavoidable public necessity, or shall grant or dispose of any estate, interest or right in a nature preserve, or shall enter into any amendment of any articles of dedication, it shall give notice of such proposed action in accordance with Chapter 424 of the Kentucky Revised Statutes.

HISTORY: Enact. Acts 1976, ch. 118, § 15; 2018 ch. 29, § 32, effective July 14, 2018.

146.485. Powers and duties of office.

In furtherance of the purposes of KRS 146.410 to 146.530 , the office shall have the following additional powers and duties:

  1. To seek and approve the dedication of nature preserves as part of the system;
  2. To make and publish policies and rules, and to recommend to the secretary the promulgation of administrative regulations for the selection, acquisition, management, protection, and use of natural areas and nature preserves, and for the conduct of office affairs;
  3. To cooperate with and to contract with any public body of this state, any public body of any other state, any private organization, any individual, and the federal government and its agencies;
  4. To purchase land from a willing seller without the use of the powers of condemnation or eminent domain, which said powers are expressly denied to the office;
  5. To make reasonable investigations as to the ownership of any lands which it judges may be appropriate for acquisition;
  6. To maintain a state registry of natural areas, an inventory of natural types, flora, and fauna, and other records of natural areas and nature preserves within the Commonwealth;
  7. To promote the coordination of all departments, divisions and branches of state, county and city governments within the Commonwealth which relate to nature preserves;
  8. To study the operation of all laws, rules, regulations, orders, and governmental policies affecting conservation of natural resources pertaining to natural areas, and to recommend to the Governor, and to the General Assembly, new legislation, rules, regulations, orders and policies in the interest of correcting natural resource conservation problems pertaining to natural areas and nature preserves;
  9. To provide a central clearing house of information for environmental and conservation matters and to promote educational programs pertaining to natural areas and nature preserves;
  10. To conduct research, investigations, public hearings, and interpretative programs and to publish and disseminate information to the general public pertaining to natural areas and nature preserves;
  11. To supervise the protection, management, and use of nature preserves and to enforce and administer rules and regulations pertaining thereto;
  12. To promote, study, investigate, recommend, encourage, advise and assist in the preservation, protection, and management of natural areas;
  13. To report to the Governor and General Assembly on proposed legislation, policies, regulations, or actions, public or private, which may significantly affect the quality of the natural ecology or the human environment in the Commonwealth. Such report shall include an evaluation of environmental and ecological effects, and shall compare any adverse effects of the proposed action against possible social benefits. The report shall describe and recommend appropriate alternatives, which avoid significant adverse effects on the quality of the natural ecology of natural areas;
  14. To submit to the Governor and members of the General Assembly, a report on or before October 1 of each even-numbered year, detailing the condition of each nature preserve in the system, and each registered natural area, and make other reports and recommendations as it may deem advisable.

HISTORY: Enact. Acts 1976, ch. 118, § 16; 2017 ch. 117, § 12, effective June 29, 2017; 2018 ch. 29, § 33, effective July 14, 2018.

Opinions of Attorney General.

Proposed regulations of the Commission were invalid to the extent that they purported to confer upon the Kentucky Nature Preserves Commission the power to designate certain species of flora or fauna as “endangered,” “threatened” or of “special concern” as such designation exceeded the authority conferred upon the Commission. OAG 84-233 .

The maintaining of an inventory of natural flora and fauna is incidental to the primary function of the Commission of establishing and monitoring a system of nature preserves; in making such an inventory the Commission would list the types and quantity of various species but it could not make determinations as to whether the species was in danger of extinction or likely to become endangered. The Legislature has granted the authority to make such designation concerning fauna or wildlife to the Department of Fish and Wildlife Resources but has apparently not delegated the authority to make such designation concerning flora or plant life to any government agency. OAG 84-233 .

146.490. Custody of nature preserve.

An owner of an area which is dedicated as a nature preserve may retain custody thereof, or may designate a custodian, subject to the rules and regulations of the office. If the owner or custodian declines, is unable, or fails to administer and manage the nature preserve in accordance with the articles of dedication, the office shall undertake such custodial functions as may be necessary for the protection, maintenance, and use of the nature preserve until the disability is removed. Whenever feasible, and consistent with the articles of dedication, the office shall vest custody of a nature preserve in the former owner, a private organization or an individual.

HISTORY: Enact. Acts 1976, ch. 118, § 17; 2018 ch. 29, § 34, effective July 14, 2018.

146.495. Custody, maintenance, and operation.

The office may, with the approval of the cabinet, transfer title, lease, or assign custody or other interest or right therein, or contract for the custody, maintenance, and operation of a nature preserve or other real property with another public agency or private organization. Such transfer, lease, assignment or contract must be consistent with the purposes of KRS 146.410 to 146.530 .

HISTORY: Enact. Acts 1976, ch. 118, § 18; 2018 ch. 29, § 35, effective July 14, 2018.

146.500. Tax assessments.

Where an interest in real property less than fee simple is dedicated for the purposes of KRS 146.410 to 146.530 , assessments made on the property for taxation shall reflect any change in the market value of the property which may result from the interest so dedicated. The value of the interest so dedicated shall be exempt from property taxation.

History. Enact. Acts 1976, ch. 118, § 19.

146.505. Dedication or acquisition of land for nature preserve.

All units, departments, agencies, and instrumentalities of the Commonwealth, including, but not limited to, counties, municipalities, public corporations, boards, commissions, colleges, and universities, are empowered and urged to dedicate as nature preserves suitable areas or portions of areas within their jurisdiction; all counties and municipalities within the Commonwealth shall have the authority to acquire any interest in real property for the purposes described in KRS 146.410 to 146.530 .

History. Enact. Acts 1976, ch. 118, § 20.

146.507. Acquisition or dedication of less than a fee simple estate in land.

Where the acquisition or dedication of less than a fee simple estate in land is proposed, and the mineral estate is severed from the surface, the consent of the owner of the mineral estate shall be provided to the office prior to approval of the acquisition or dedication.

HISTORY: Enact. Acts 1988, ch. 416, § 3, effective June 1, 1988; 2018 ch. 29, § 36, effective July 14, 2018.

146.510. Construction of KRS 146.410 to 146.530.

  1. Nothing contained in KRS 146.410 to 146.530 shall be construed as interfering with the purposes stated in the establishment of any national, state or local park, preserve, wildlife refuge, wildlife management area, forest or other similar area or the proper management and development thereof, except that any agency administering a natural area dedicated as a nature preserve under the provisions of KRS 146.410 to 146.530 shall be responsible for preserving the character of the natural area in accordance with the articles of dedication and the applicable rules and regulations with respect thereto established by the office under KRS 146.410 to 146.530.
  2. Neither the dedication of a natural area as a nature preserve, nor any action taken by the office under any of the provisions of KRS 146.410 to 146.530 , shall void or replace any protective status under law which the natural area would have were it not a nature preserve, and the protective provisions of KRS 146.410 to 146.530 shall be supplemental thereto.

HISTORY: Enact. Acts 1976, ch. 118, § 21; 2018 ch. 29, § 37, effective July 14, 2018.

146.515. Cooperation of state agencies — Access to state and local government records.

  1. All departments, agencies, officers and employees of the Commonwealth shall cooperate with the office and its employees in carrying out its functions under KRS 146.410 to 146.530 .
  2. The executive director or any employee authorized by the executive director shall, for purposes of KRS 146.410 to 146.530 , have complete and timely access to all records of every agency, division or department of state, county or city government within the Commonwealth. Nothing in this section shall be construed to permit the office to disclose those matters which by law are required to be kept confidential.

HISTORY: Enact. Acts 1976, ch. 118, § 22; 2018 ch. 29, § 38, effective July 14, 2018.

146.520. Nature preserves fund created.

A fund for the purpose of carrying out the provisions of KRS 146.410 to 146.530 is hereby created and is designated the “Kentucky nature preserves fund” and shall consist of all revenues derived from privileges, concessions, and contracts granted by the office, and all moneys received by it from gifts, contributions, donations and grants from governmental or private sources, and moneys appropriated from general funds of the state for the purposes of KRS 146.410 to 146.530 . The Kentucky nature preserves fund shall be disbursed by the office, for administration and other expenses and for all purposes provided by KRS 146.410 to 146.530.

HISTORY: Enact. Acts 1976, ch. 118, § 24; 2018 ch. 29, § 39, effective July 14, 2018.

146.525. Office of Legal Services or Attorney General to bring legal action.

It shall be the duty of the cabinet’s Office of Legal Services, or upon the secretary’s request of the Attorney General, to bring any appropriate legal action in the name of the Commonwealth of Kentucky, including but not limited to, actions for restraining orders, or for temporary or permanent injunctions for the prevention or correction of conditions which constitute a violation of KRS 146.200 to 146.619 or the provisions of the articles of dedication.

HISTORY: Enact. Acts 1976, ch. 118, § 25; 2018 ch. 29, § 40, effective July 14, 2018.

146.530. Appeals.

Administrative appeals from any order or final determination by the office under KRS 146.410 to 146.530 shall be made in accordance with procedures established by regulations of the office.

HISTORY: Enact. Acts 1976, ch. 118, § 28; 2018 ch. 29, § 41, effective July 14, 2018.

146.535. Title.

KRS 146.410 to 146.530 shall be known and may be cited as the “Kentucky Nature Preserves Act.”

History. Enact. Acts 1976, ch. 118, § 1.

Heritage Land Conservation

146.550. Definitions for KRS 146.550 to 146.570.

As used in KRS 146.550 to 146.570 :

  1. “Wetlands” means land that has a predominance of hydric soils and is inundated or saturated by surface or groundwater at a frequency and duration sufficient to support, and that under normal circumstances does support, a prevalence of hydrophytic vegetation typically adapted for life in saturated soil conditions;
  2. “Hydric soils” means soils that, in their undrained condition, are saturated, flooded, or ponded long enough during the growing season to develop an anaerobic condition that supports the growth and regeneration of hydrophytic vegetation;
  3. “Hydrophytic vegetation” means a plant growing in water or a substrate that is at least periodically deficient of oxygen during the growing season as a result of excess water content;
  4. “Office” means the Office of Kentucky Nature Preserves; and
  5. “Cabinet” means the Energy and Environment Cabinet.

HISTORY: Enact. Acts 1990, ch. 446, § 3, effective July 13, 1990; 2018 ch. 29, § 42, effective July 14, 2018.

Research References and Practice Aids

Journal of Natural Resources & Environmental Law.

Notes, A Dark and Bloody Battle Ground: Wetlands Preservation in Kentucky, 11 J. Nat. Resources & Envtl. L. 303 (1995-96).

146.555. Legislative finding.

The General Assembly hereby recognizes the benefit to the citizens of Kentucky of the acquisition and maintenance of certain lands for use as state parks, recreation areas, state forests, nature preserves, wildlife management areas, and wetlands. It is, therefore, in the public interest to promote and fund the conservation of such areas.

History. Enact. Acts 1990, ch. 446, § 1, effective July 13, 1990.

146.560. Kentucky Heritage Land Conservation Fund Board.

  1. There is hereby established a Kentucky Heritage Land Conservation Fund Board, referred to hereafter as “the board,” which shall administer the Kentucky Heritage Land Conservation fund established in KRS 146.570 and shall review and approve all grants payable from the fund. The board shall consist of the following members:
    1. The commissioner of the Department of Parks or a designee;
    2. The executive director of the Office of Kentucky Nature Preserves or a designee;
    3. The commissioner of the Department for Natural Resources or a designee;
    4. The commissioner of the Department of Fish and Wildlife Resources or a designee;
    5. One (1) person appointed by the Governor, from two (2) persons nominated by the League of Kentucky Sportsmen;
    6. One (1) person appointed by the Governor, from two (2) persons recognized for their expertise in natural resource issues and nominated by the Kentucky Academy of Sciences;
    7. One (1) person appointed by the Governor, from three (3) persons nominated, one (1) by the Kentucky Farm Bureau, one (1) by the Commissioner of the Department of Agriculture, and one (1) by the Kentucky Association of Conservation Districts;
    8. One (1) person appointed by the Governor, from four (4) persons nominated, one (1) by the Kentucky Audubon Council, one (1) by the Cumberland Chapter of the Sierra Club, one (1) by the Kentucky Chapter of the Nature Conservancy, and one (1) by the Kentucky Conservation Committee; and
    9. One (1) person appointed by the Governor with at least five (5) years of experience in natural resources land acquisition. The board shall receive staff support from the Office of Kentucky Nature Preserves. Board members shall serve terms of three (3) years and they may be reappointed. A vacancy in an unexpired term shall be filled for the unexpired portion of the term in the same manner as the original appointment to that term. The Governor shall appoint a chairperson for the board, selected from seated members of the board.
  2. The cabinet may promulgate upon recommendation of the board in accordance with the provisions of KRS Chapter 13A administrative regulations as are deemed necessary for application for funds from the agencies and private, nonprofit land trust organizations identified in KRS 146.570 , review and approval of proposed projects, and review and approval of grants. Grants shall be made in amounts, for purposes, and to the agencies and private, nonprofit land trust organizations identified in KRS 146.570 as meet the priorities for acquisition which are:
    1. Natural areas that possess unique features such as habitat for rare and endangered species;
    2. Areas important to migratory birds;
    3. Areas that perform important natural functions that are subject to alteration or loss; or
    4. Areas to be preserved in their natural state for public use, outdoor recreation and education. The cabinet may promulgate administrative regulations, upon recommendation of the board and in accordance with the provisions of KRS Chapter 13A, on acquisition based on these priorities and property costs seeking to maximize the greatest public benefit by taking advantage of those priority areas available below fair market value and where public or private funds are available on a matching basis. Additionally, private, nonprofit land trust organizations, in order to be eligible to receive grants, shall match dollar-for-dollar any funds approved by the board. The board shall expend the whole or any part of the principal and interest as needed. KRS 146.550 to 146.570 shall not allow the use of condemnation powers and shall only allow acquisition of land from willing sellers.

HISTORY: Enact. Acts 1990, ch. 446, § 2, effective July 13, 1990; 1994, ch. 328, § 1, effective July 15, 1994; 1998, ch. 67, § 1, effective July 15, 1998; 2010, ch. 24, § 134, effective July 15, 2010; 2013, ch. 62, § 1, effective June 25, 2013; 2018 ch. 29, § 43, effective July 14, 2018.

Opinions of Attorney General.

Portion of this section requiring the appointment of two members of the General Assembly to the Kentucky Heritage Land Conservation Fund Board, whose duties pertain to the executive branch of government, is unconstitutional. OAG 93-70 .

146.565. Acquisition of natural areas and wetlands.

Agencies identified in KRS 146.570 may acquire natural areas and wetlands as defined in KRS 146.550 and shall acquire any access and buffer land deemed necessary by the Kentucky Heritage Land Conservation Fund Board established by KRS 146.560 . Acquisition of land and expenditure of funds using proceeds provided by KRS 146.570 shall be approved by the board prior to such action.

History. Enact. Acts 1990, ch. 446, § 4, effective July 13, 1990; 1994, ch. 328, § 2, effective July 15, 1994.

146.570. Kentucky Heritage Land Conservation fund.

  1. There is hereby established in the State Treasury a fund entitled “Kentucky Heritage Land Conservation fund.” The fund shall primarily receive state appropriations, gifts, grants, federal funds, and tax receipts. The fund shall be disbursed by the State Treasurer upon the warrant of the secretary of the Finance and Administration Cabinet. Moneys in the fund not expended at the end of a fiscal year shall be carried forward to the next fiscal year, and the fund shall not lapse. Moneys in the fund shall be invested in accordance with administrative regulations developed by the State Investment Commission in accordance with KRS 42.525 . Interest earnings shall accrue to the fund.
  2. The fund shall be attached for administrative, budgeting, and capital planning and reporting purposes to the Office of Kentucky Nature Preserves. Land acquisitions shall be authorized by the General Assembly and reported to the Capital Projects and Bond Oversight Committee in accordance with KRS 45.750 to 45.800 . Allocation of moneys as approved by the board for management of the lands shall be appropriated to each separate agency as part of its operating budget.
  3. Moneys in the fund shall be used exclusively for the purposes of acquisition and management of lands as defined in KRS 146.560 and for administration of the fund program by the office. Each recipient of moneys shall develop and implement a resource management plan for each tract acquired, and shall allocate some moneys received for management of lands acquired as directed by the board. Lands acquired shall be maintained in perpetuity for the purposes set out in KRS 146.560 .
  4. Moneys in the fund shall be allocated as follows:
    1. The Department of Parks shall receive ten percent (10%);
    2. The Department of Fish and Wildlife Resources shall receive ten percent (10%);
    3. The Energy and Environment Cabinet, Division of Forestry, shall receive ten percent (10%);
    4. Ten percent (10%) shall be allocated for the Wild Rivers System established by the Kentucky Wild Rivers Act, KRS 146.200 to 146.360 , and any administrative regulations promulgated pursuant thereto;
    5. The Office of Kentucky Nature Preserves shall receive ten percent (10%); and
    6. The board shall receive the remaining fifty percent (50%), for allocation to private, nonprofit land trust organizations, state agencies, local governments, and state colleges and universities. Any funds expended under this paragraph to private, nonprofit land trust organizations shall be matched dollar-for-dollar as required in KRS 146.560(2).

HISTORY: Enact. Acts 1990, ch. 446, § 5, effective July 13, 1990; 1994, ch. 328, § 3, effective July 15, 1994; 2010, ch. 24, § 135, effective July 15, 2010; 2013, ch. 62, § 2, effective June 25, 2013; 2018 ch. 29, § 44, effective July 14, 2018.

Endangered and Threatened Plants

146.600. Legislative findings.

The General Assembly finds and declares that it is the policy of the Commonwealth to recognize endangered and threatened species of plants for human enjoyment, for scientific purposes, and to ensure their perpetuation as viable components of their ecosystems for the benefit of the people of Kentucky. It is the policy of the General Assembly that all plants covered by KRS 146.600 to 146.619 are property of the landowner, and that KRS 146.600 to 146.619 shall not impede the development or use of public or private lands.

History. Enact. Acts 1994, ch. 164, § 1, effective July 15, 1994.

146.605. Definitions for KRS 146.600 to 146.619.

As used in KRS 146.600 to 146.619 :

  1. “Office” means the Office of Kentucky Nature Preserves, created by KRS 146.430 ;
  2. “Endangered species” means any species of plant that is in danger of extirpation throughout all or a significant portion of its range within the Commonwealth, or any plant species determined to be an “endangered species” pursuant to the Endangered Species Act;
  3. “Endangered Species Act” means the Endangered Species Act of 1973, Public Law 93-205 (87 Stat. 884), as amended;
  4. “Plant” means any member of the plant kingdom, including seeds, roots, and other parts thereof;
  5. “Species” includes any species, subspecies, or variety of plant;
  6. “Threatened species” means any species of plant likely to become an endangered species within the foreseeable future throughout all or a significant portion of its range within the state, or any species of plant determined to be a “threatened species” pursuant to the Endangered Species Act; and
  7. “Cabinet” means the Energy and Environment Cabinet.

HISTORY: Enact. Acts 1994, ch. 164, § 2, effective July 15, 1994; 2018 ch. 29, § 45, effective July 14, 2018.

Compiler’s Notes.

The Endangered Species Act of 1973, Public Law 93-205, referenced herein is compiled as 16 USCS § 1531 et seq.

146.610. Duties of Office of Kentucky Nature Preserves — Authority for administrative regulations — Criteria for designation of plants as endangered or threatened — Plant lists — Quadrennial report.

  1. The office may conduct investigations, with the permission of the landowner, on any species of plants indigenous to the Commonwealth necessary to develop information relating to population, distribution, habitat needs, limiting factors, and other biological and ecological data, and to determine protective measures and requirements necessary for its survival.
    1. Any plant species identified as endangered or threatened by the Endangered Species Act shall be automatically and immediately considered in a similar category under KRS 146.600 to 146.619 . The office may promulgate administrative regulations, upon recommendation of the office, identifying any other species of plant within the state as an endangered or threatened species as a result of any one (1) of the following factors: (2) (a) Any plant species identified as endangered or threatened by the Endangered Species Act shall be automatically and immediately considered in a similar category under KRS 146.600 to 146.619 . The office may promulgate administrative regulations, upon recommendation of the office, identifying any other species of plant within the state as an endangered or threatened species as a result of any one (1) of the following factors:
      1. The present or threatened destruction, modification, or curtailment of its habitat or range;
      2. Overutilization for commercial, recreational, scientific, educational, or private purposes;
      3. Disease, predation, or vandalism;
      4. The inadequacy of existing regulatory mechanisms affecting the continued existence within the state; or
      5. Other factors affecting its continued existence within the state.
    2. The cabinet may, upon recommendation of the office, promulgate administrative regulations setting forth criteria for identifying and designating species of plants native to Kentucky which are in danger of extirpation within the Commonwealth or threatened with becoming endangered in the Commonwealth. The cabinet may, upon recommendation of the office, promulgate administrative regulations that identify species that it determines to be endangered or threatened. These lists shall identify the common and scientific names of each species. The lists shall include all plant species native to Kentucky which are listed as endangered or threatened on the “United States List of Endangered and Threatened Plants” pursuant to the Endangered Species Act of 1973, 87 Stat. 884, 16 U.S.C. secs. 1531 -1543, as amended. The lists may also include species listed in the appendices of the “Convention on International Trade in Endangered Species,” signed March 3, 1973, as Ex. Doc. H, 93rd Congress, 1st Session. Further, the office may provide for public education purposes lists of plant species which may become threatened in the future through habitat loss, commercial exploitation, or other means, or which are presumed to be extirpated within the Commonwealth. All lists shall be updated at least every four (4) years.
  2. Locational and population health information relating to endangered or threatened and other plant species shall be kept in the office’s natural heritage database. Information to be considered when adopting, amending, or rescinding endangered or threatened plant species lists as required in this section shall be recorded in the natural heritage database prior to use in determining the status of a plant species.
  3. The office shall present to the Governor and the General Assembly a report on or before October 1 every four (4) years on the conditions and needs of the Commonwealth’s endangered or threatened plant species.
  4. In carrying out programs authorized by KRS 146.600 to 146.619 , the office may enter into agreements or contracts with federal agencies, other states, agencies or political subdivisions of the Commonwealth, or with individuals or private organizations for administration and management of any program established under KRS 146.600 to 146.619 or utilized for the protection of endangered or threatened plant species.

HISTORY: Enact. Acts 1994, ch. 164, § 3, effective July 15, 1994; 2018 ch. 29, § 46, effective July 14, 2018.

146.615. Lists not to impede development or use of public or private lands.

The lists promulgated under KRS 146.610 shall not serve to impede the development or use of public or private lands, including, but not limited to, the normal and accepted operations of agriculture; forestry; mining; development, construction, and maintenance of oil and gas resources and appurtenances; development, construction, and maintenance of utility facilities and appurtenances; construction and maintenance of pipeline rights-of-way; construction activities; equine activities; transportation; or development activities.

History. Enact. Acts 1994, ch. 164, § 4, effective July 15, 1994.

146.619. Short title for KRS 146.600 to 146.619.

KRS 146.600 to 146.619 may be cited as the “Kentucky Rare Plant Recognition Act.”

History. Enact. Acts 1994, ch. 164, § 5, effective July 15, 1994.

Kentucky Natural History Museum

146.650. Legislative findings regarding state’s natural history — Purposes of KRS 146.650 to 146.666. [Repealed]

History. Enact. Acts 2000, ch. 329, § 1, effective July 14, 2000; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 2000, ch. 329, § 1, effective July 14, 2000) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

146.652. Kentucky Natural History Museum — Board of directors — Appointments, terms, and meetings. [Repealed]

History. Enact. Acts 2000, ch. 329, § 2, effective July 14, 2000; 2015 ch. 69, § 3, effective June 24, 2015; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section ( 2000, ch. 329, § 2, effective July 14, 2000); ) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

146.654. Powers and duties of board. [Repealed]

History. Enact. Acts 2000, ch. 329, § 3, effective July 14, 2000; 2006, ch. 211, § 18, effective July 12, 2006; 2009, ch. 16, § 15, effective June 25, 2009; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section ( 2000, ch. 329, § 3, effective July 14, 2000; Acts 2006 ch. 211, § 18, effective July 12, 2006; 2009, ch. 16, § 15, effective June 25, 2009) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

146.656. Director to administer museum — Qualifications. [Repealed]

History. Enact. Acts 2000, ch. 329, § 4, effective July 14, 2000; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section ( 2000, ch. 329, § 4, effective July 14, 2000) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

146.658. Duties of director. [Repealed]

History. Enact. Acts 2000, ch. 329, § 5, effective July 14, 2000; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section ( 2000, ch. 329, § 5, effective July 14, 2000) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

146.660. Administrative mission units of museum — Associate directors. [Repealed]

History. Enact. Acts 2000, ch. 329, § 6, effective July 14, 2000; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section ( 2000, ch. 329, § 6, effective July 14, 2000) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

146.662. Curation and science unit — Functions — Qualifications of associate director. [Repealed]

History. Enact. Acts 2000, ch. 329, § 7, effective July 14, 2000; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section ( 2000, ch. 329, § 7, effective July 14, 2000) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

146.664. Education and events unit — Functions — Qualifications of associate director. [Repealed]

History. Enact. Acts 2000, ch. 329, § 8, effective July 14, 2000; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section ( 2000, ch. 329, § 8, effective July 14, 2000) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

146.666. Exhibits and maintenance unit — Functions — Qualifications of associate director. [Repealed]

History. Enact. Acts 2000, ch. 329, § 9, effective July 14, 2000; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section ( 2000, ch. 329, § 9, effective July 14, 2000) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

Penalties

146.990. Penalties.

  1. Any person, corporation, city, county or other governmental subdivision who violates any of the provisions of KRS 146.200 to 146.360 shall be liable to a civil penalty of not more than one thousand dollars ($1,000) for said violation and in addition may be enjoined from continuing said violation. Each day upon which such violation occurs or continues shall constitute a separate offense.
  2. Any person who trespasses on private land within the boundary of a designated wild river shall be guilty of a Class B misdemeanor, and upon conviction shall be subject to a fine not to exceed five thousand dollars ($5,000).
  3. Violations of KRS 146.410 to 146.530 or of any rule or regulation adopted and published by the office pursuant to the provisions of KRS 146.410 to 146.530 , shall be subject to the penalties and sanctions presently provided for in KRS Chapter 224 or as may be amended.

HISTORY: Enact. Acts 1972, ch. 117, § 17; 1976, ch. 118, § 27; 1976, ch. 197, § 6 (2nd sentence); 2018 ch. 29, § 47, effective July 14, 2018.

CHAPTER 147 State and Area Planning — Regional Development

Kentucky Progress Commission

147.010. Organization of Kentucky Progress Commission. [Repealed.]

Compiler’s Notes.

This section (3941k-1, 4618-126: amend. Acts 1948, ch. 222, § 7; 1966, ch. 255, § 140) was repealed by Acts 1974, ch. 74, Art. VIII, F, § 3.

147.020. Qualifications of members of commission. [Repealed.]

Compiler’s Notes.

This section (3941k-2) was repealed by Acts 1974, ch. 74, Art. VIII, F, § 3.

147.030. Officers of commission. [Repealed.]

Compiler’s Notes.

This section (3941k-1, 3941k-6, 4618-126: amend. Acts 1966, ch. 255, § 141) was repealed by Acts 1974, ch. 74, Art. VIII, F, § 3.

147.040. Location of office of commission. [Repealed.]

Compiler’s Notes.

This section (3941k-7) was repealed by Acts 1974, ch. 74, Art. VIII, F, § 3.

147.050. Functions of commission. [Repealed.]

Compiler’s Notes.

This section (3941k-8) was repealed by Acts 1974, ch. 74, Art. VIII, F, § 3.

147.060. Kentucky progress association — Expenses of commission. [Repealed.]

Compiler’s Notes.

This section (3941k-4) was repealed by Acts 1974, ch. 74, Art. VIII, F, § 3.

State Planning

147.070. State planning functions of Governor’s Cabinet.

  1. The Governor’s Cabinet shall:
    1. Prepare and adopt plans for complete systems of state or regional highways, expressways, parkways, parks, water supply and forest reservations, airways and air terminals, and other things of significance in furthering a well balanced development of the state.
    2. Advise with state agencies, local authorities and individuals with a view to the coordination of all physical development plans that are related to state activities.
    3. Make surveys of rural land utilization with a view to the determination of the areas suitable for field crops, reforestation, watershed protection, recreation and urban expansion.
    4. Draft for submission to the General Assembly such regulations affecting the use and development of property as are deemed reasonable and necessary for orderly and coordinated developments preserving the integrity of officially approved plans or conserving the natural resources of the state.
    5. Collect and publish information relating to welfare problems affecting the people of the state and make such recommendations on those problems to the General Assembly as may seem advisable and proper.
    6. Cooperate with planning boards of other states and the national planning board.
    7. Act as a research broker in assisting state government to meet its research needs and to perform such functions also upon request from local governments.
  2. The cabinet shall have such powers as are necessary to promote state planning and to enable it to carry out the purposes of KRS 147.070 to 147.100 .
  3. All public officials shall upon request furnish to the Governor’s Cabinet, within a reasonable time, such available information as it may require for its work. The members and employees of the cabinet may, in the performance of their functions, enter upon any land, make examinations and surveys and place and maintain necessary monuments and marks thereon.
  4. Every state officer or agency, before requesting legislative or executive approval of a plan or authorization of an appropriation for a major public improvement related to or affected by any general plan prepared under authority of KRS 147.070 to 147.100 , or before requesting a change of use or disposition of real property that is owned by the state or in which the state has an interest, shall make a written request to the Governor’s Cabinet for its recommendations, and shall give the cabinet a reasonable opportunity to study and make its recommendations thereon.

History. 1992c-2: amend. Acts 1976, ch. 299, § 10.

Opinions of Attorney General.

The Commonwealth of Kentucky, acting by and through the Kentucky Program Development Office, is authorized to form an urban information and technical assistance program for Kentucky, and to accept federal funds therefor, under Title IX of the Demonstration Cities and Metropolitan Act of 1966. OAG 68-189 .

The Commonwealth of Kentucky, acting through its Kentucky Program Development Office, (a) is eligible as designee under § 802(b)(4) of Title VIII, Part I, of the Housing Act of 1964, as amended, (b) is authorized to finance and carry out the activities proposed and contemplated under this legislation, (c) has the authority and responsibility for administration of a statewide training and research program, and (d) is authorized to accept federal funds for these purposes. OAG 68-190 .

The Kentucky Program Development Office has authority to conduct comprehensive statewide planning which would include planning for water and sewerage projects. OAG 70-460 .

The Kentucky Program Development Office has the legal authority to enter into contracts with agencies of the United States government to conduct and carry out water and sewerage planning on behalf of Kentucky counties, cities, and local planning commissions. OAG 70-460 .

Research References and Practice Aids

Cross-References.

Cooperation between state departments, KRS 12.090 .

Governor’s cabinet, KRS 11.060 .

Soil and water conservation, KRS ch. 262.

State and federal highways, KRS ch. 177.

Kentucky Law Journal.

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

147.072. Office for program administration — Organization and duties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1976, ch. 299, § 11; 1978, ch. 155, § 65, effective June 17, 1978; 1980, ch. 295, § 17, effective July 15, 1980; 1982, ch. 393, § 47, effective July 15, 1982) was repealed by Acts 1984, ch. 186, § 4, effective July 13, 1984.

147.075. State Planning Committee.

As used in KRS 147.070 to 147.120 the term “Governor’s Cabinet” shall mean the “Governor’s Executive Cabinet” and such other persons as the Governor may designate to compose the membership of the “State Planning Committee.” The Governor shall serve as chairman of the State Planning Committee, and shall appoint a vice chairman from committee membership at his or her discretion. The special assistant to the Governor for budget and management shall serve as secretary.

History. Enact. Acts 1974, ch. 74, Art. VIII, J, § 1; 1976, ch. 299, § 12; 1978, ch. 155, § 66, effective June 17, 1978; 1980, ch. 295, § 18, effective July 15, 1980; 1982, ch. 396, § 11, effective July 15, 1982; 1984, ch. 186, § 3, effective July 13, 1984; 2004, ch. 105, § 1, effective July 13, 2004.

147.080. Plans for development of state highways and parkways. [Repealed.]

Compiler’s Notes.

This section (1992c-3: amend. Acts 1974, ch. 190, § 1) was repealed by Acts 1986, ch. 55, § 1, effective July 15, 1986.

147.090. Preparation and coordination of major state improvement projects.

The Governor’s Cabinet shall prepare and keep up to date a long-term development program of major state improvement projects. The various state agencies and officers shall prepare and submit to the cabinet their proposals for major projects. The cabinet shall coordinate such plans and proposals with each other and with the general plans of the cabinet, and as a result submit to the Governor and General Assembly a report at least once every two (2) years, showing the cabinet’s recommendations and program for improvement projects.

History. 1992c-4.

147.100. Miscellaneous projects.

The Governor’s Cabinet may make maps, planning studies and surveys relating to zoning, soil conditions, land use and classification, population distribution, schools, park and playground development, port, harbor and waterway work, parkways, highways, traffic, transit, water supply, drainage and sewerage, long-range financial programs, real property inventories, tax maps, building and housing conditions, subdivision control, and other subjects affecting the general health and welfare.

History. 1992c-5.

147.110. Use of federal funds and state planning funds.

Department heads and cabinet secretaries may accept any funds provided by the United States government or any agency thereof for the purposes defined in KRS 147.070 to 147.100 . The state planning committee may allocate funds appropriated to the state planning fund to agencies for the purpose of matching federal funds which may be available for planning purposes.

History. 1992c-6: amend. Acts 1974, ch. 190, § 2.

Opinions of Attorney General.

The Commonwealth of Kentucky, acting by and through the Kentucky Program Development Office, is authorized to form an urban information and technical assistance program for Kentucky, and to accept federal funds therefor, under Title IX of the Demonstration Cities and Metropolitan Act of 1966. OAG 68-189 .

The Commonwealth of Kentucky, acting through its Kentucky Program Development Office, (a) is eligible as designee under § 802(b)(4) of Title VIII, Part I, of the Housing Act of 1964, as amended, (b) is authorized to finance and carry out the activities proposed and contemplated under this legislation, (c) has the authority and responsibility for administration of a statewide training and research program, and (d) is authorized to accept federal funds for these purposes. OAG 68-190 .

147.120. Records — Employees — Expenses.

The Governor’s Cabinet shall keep permanent and complete records of its proceedings, orders and decisions, and may employ persons necessary to the exercise of its functions, under KRS 147.070 to 147.100 , and pay their compensation and incur any necessary expenses, within the limits of any funds provided by the United States government.

History. 1992c-1.

147.130. Creation and membership of regional planning commission. [Repealed.]

Compiler’s Notes.

This section (2741zz-1, 2741zz-26) was repealed by Acts 1966, ch. 172, § 92.

147.140. City planning law applies; finances of commission. [Repealed.]

Compiler’s Notes.

This section (2741zz-1, 2741zz-27) was repealed by Acts 1966, ch. 172, § 92.

147.150. Powers and duties of the commission. [Repealed.]

Compiler’s Notes.

This section (2741zz-1, 2741zz-28) was repealed by Acts 1966, ch. 172, § 92.

147.160. Certification of regional plan. [Repealed.]

Compiler’s Notes.

This section (2741zz-1, 2741zz-29) was repealed by Acts 1966, ch. 172, § 92.

147.170. Adoption of regional plan by cities. [Repealed.]

Compiler’s Notes.

This section (2741zz-1, 2741zz-30) was repealed by Acts 1966, ch. 172, § 92.

147.180. Structures subject to plan must be approved. [Repealed.]

Compiler’s Notes.

This section (2741zz-1, 2741zz-31) was repealed by Acts 1966, ch. 172, § 92.

147.190. Creation and purpose of Capital Planning and Zoning Commission. [Repealed.]

Compiler’s Notes.

This section (3480f-1) was repealed by Acts 1960, ch. 130, § 19.

147.200. Membership of commission. [Repealed.]

Compiler’s Notes.

This section (3480f-2; amend. Acts 1948, ch. 222, § 8; 1950, ch. 214, § 1) was repealed by Acts 1960, ch. 130, § 19.

147.210. Bylaws; regulations; quorum. [Repealed.]

Compiler’s Notes.

This section (3480f-3) was repealed by Acts 1960, ch. 130, § 19.

147.220. Powers and duties of commission; scope of operation; master plan; zoning plan and regulations; subdivision control regulations. [Repealed.]

Compiler’s Notes.

This section (3480f-4, 3480f-6, 3480f-7: amend. Acts 1950, ch. 214, § 2) was repealed by Acts 1960, ch. 130, § 19.

147.230. Employment of assistants by commission; expenses. [Repealed.]

Compiler’s Notes.

This section (3480f-5: amend. Acts 1950, ch. 214, § 3) was repealed by Acts 1960, ch. 130, § 19.

147.240. Power of eminent domain; acquisition of property. [Repealed.]

Compiler’s Notes.

This section (3480f-6) was repealed by Acts 1960, ch. 130, § 19.

147.245. Board of zoning adjustment and appeals. [Repealed.]

Compiler’s Notes.

This section (Enact. 1950, ch. 214, §§ 4, 8) was repealed by Acts 1960, ch. 130, § 19.

147.246. Powers, duties and procedures of board. [Repealed.]

Compiler’s Notes.

This section (Enact. 1950, ch. 214, § 5) was repealed by Acts 1960, ch. 130, § 19.

147.247. Appeals. [Repealed.]

Compiler’s Notes.

This section (Enact. 1950, ch. 214, § 7) was repealed by Acts 1960, ch. 130, § 19.

147.250. Regulations, effect of; penalties. [Repealed.]

Compiler’s Notes.

This section (3480f-7, 3084f-8, 3084f-9: amend. Acts 1950, ch. 214, § 6) was repealed by Acts 1960, ch. 130, § 19.

147.260. Agricultural and Industrial Development Board created; membership; chairman, qualifications; expenses; meetings; director; personnel. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 48, § 1) was repealed by Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 1.

147.270. Board to carry on program of research, publicity and advertising; coordinate activities of other agencies; encourage private organizations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 48, § 2) was repealed by Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 1.

147.280. Assembling and giving out of information concerning resources and facilities; information as to enterprises proposing to locate in Kentucky. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 48, § 3) was repealed by Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 1.

147.290. Publication of maps, studies and surveys. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 48, § 4) was repealed by Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 1.

147.300. Cooperation with other agencies and governmental units; studies of land utilization and physical and economic development. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 48, § 5) was repealed by Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 1.

147.310. Powers of board as to public improvement projects involving capital outlay. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 48, § 6) was repealed by Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 1.

147.320. Legislative intent. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 320, § 1) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

147.330. Council for land use planning created — Membership. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 320, § 2) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

147.340. Qualifications of members — Organization — Meetings. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 320, § 3; 1978, ch. 155, § 67, effective June 17, 1978) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

147.350. Duties of council — Reports. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 320, § 4) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

147.360. Authorization for acceptance of gifts and grants. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 320, § 3; 1978, ch. 155, § 41, effective June 17, 1978) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

147.410. Creation and purpose of Capital Planning and Zoning Commission. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 1) was repealed by Acts 1966, ch. 172, § 92.

147.420. Commission membership; expenses. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 2) was repealed by Acts 1966, ch. 172, § 92.

147.430. Bylaws and regulations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 3) was repealed by Acts 1966, ch. 172, § 92.

147.440. Commission organization. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 4) was repealed by Acts 1966, ch. 172, § 92.

147.450. Commission personnel. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 5) was repealed by Acts 1966, ch. 172, § 92.

147.460. Fiscal provisions; debt limit. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, §§ 6 and 17) was repealed by Acts 1966, ch. 172, § 92.

147.470. Appropriation of money by governmental units. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 16) was repealed by Acts 1966, ch. 172, § 92.

147.480. Commission functions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 7) was repealed by Acts 1966, ch. 172, § 92.

147.490. Agricultural uses. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 18) was repealed by Acts 1966, ch. 172, § 92.

147.500. Preparation and promotion of master plan. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 8) was repealed by Acts 1966, ch. 172, § 92.

147.510. Transition to operation under KRS 147.410 to 147.570. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 9) was repealed by Acts 1966, ch. 172, § 92.

147.520. Power of eminent domain. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 10) was repealed by Acts 1966, ch. 172, § 92.

147.530. Legal counsel. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 11) was repealed by Acts 1966, ch. 172, § 92.

147.540. Board of zoning adjustment and appeals. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 12) was repealed by Acts 1966, ch. 172, § 92.

147.550. Zoning permits and certificates. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 13) was repealed by Acts 1966, ch. 172, § 92.

147.560. Appeals. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 14) was repealed by Acts 1966, ch. 172, § 92.

147.570. Effect of regulations; penalties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 130, § 15) was repealed by Acts 1966, ch. 172, § 92.

Regional Development

147.580. Southern Growth Policies Agreement. [Repealed]

HISTORY: Enact. Acts 1974, ch. 204, § 1; 1980, ch. 131, § 1, effective July 15, 1980; repealed by 2017 ch. 80, § 58, effective June 29, 2017; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1974, ch. 204, § 1; 1980, ch. 131, § 1, effective July 15, 1980) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

147.585. Lieutenant Governor to be member of board. [Repealed]

History. Enact. Acts 1980, ch. 141, § 9, effective July 15, 1980; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1980, ch. 141, § 9, effective July 15, 1980) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

Area Planning

147.610. Authority to establish area planning commission.

In any two (2) or more adjacent counties, one (1) of which has a city having a population of more than 50,000 and not more than 200,000 inhabitants as declared by the last federal census, the various cities and the counties may consolidate their planning operations by establishing an area planning commission which may be created under the provisions of KRS 147.610 to 147.705 , when in the judgment of the legislative bodies of the cities and counties a consolidation provides for a more efficient planning operation.

History. Enact. Acts 1960, ch. 248, § 1; 1968, ch. 152, § 110; 1974, ch. 308, § 30; 1982, ch. 253, § 1, effective July 15, 1982.

NOTES TO DECISIONS

1.Planning Commission was not Dissolved.

Appellant's suit challenging appellee's assessment and collection of ad valorem taxes on grounds it no longer met this section's requirements for an area planning commission was properly dismissed on summary judgment because pursuant to Ky. Rev. Stat. Ann. § 147.620(4), a county member's unilateral withdrawal did not dissolve appellee, which remained a viable political subdivision. Kuhnhein v. N. Ky. Area Planning Comm'n, 495 S.W.3d 152, 2015 Ky. App. LEXIS 136 (Ky. Ct. App. 2015).

Cited:

Moorman v. Wood, 504 F. Supp. 467, 1980 U.S. Dist. LEXIS 15429 (E.D. Ky. 1980 ).

Opinions of Attorney General.

Subject to certain limitations on their powers, individual counties participating in a consolidated planning commission may continue to maintain their individual planning commissions. OAG 70-424 .

147.620. Procedure for establishment, alteration, or dissolution of commission.

  1. If the fiscal courts of any two (2) or more adjacent counties elect to be consolidated as provided in KRS 147.610 , and the respective legislative bodies of cities representing more than two-thirds (2/3) of the population of the residents living within the boundaries of corporate territories of each county, by ordinance or resolution elect to consolidate as provided in KRS 147.610 , then the cities and counties so affected shall authorize the execution of a contract between themselves agreeing to participate in the creation of an area planning commission and agreeing to be governed by the provisions of KRS 147.610 to 147.705 . When a sufficient number of municipalities and counties have executed said agreement, copies shall be filed in the office of the clerk of each of the counties affected. Thereupon an area planning commission is established. If at some later date the fiscal court and the legislative bodies of cities representing more than two-thirds (2/3) of the population of the residents living within the boundaries of the corporate territory of another adjacent county elect to join the area planning commission, then the cities and county so affected shall authorize the execution of a contract between themselves agreeing to participate and be governed by the provisions of KRS 147.610 to 147.705 . The existing area planning council, as previously created under KRS 147.610 to 147.705 shall be empowered to execute an agreement accepting the new contract in behalf of the existing area planning council and commission. When such agreement is executed copies shall be filed in the office of the clerk of each of the counties affected. Thereupon the new area planning commission boundaries are established.
  2. Any area planning commission created under the provisions of KRS 147.610 to 147.705 may be dissolved or altered in accordance with subsection (3), (4), or (5) of this section.
  3. An area planning commission may be altered or dissolved by the fiscal court, as follows:
    1. Upon receipt of a petition and following a public hearing as provided herein, the fiscal court may alter the boundaries of an area planning commission by reducing its area, or may dissolve an area planning commission if that commission has for a period of two (2) consecutive years failed to provide the services for which it was established, or if all or a portion of such services have been provided by some other entity. The fiscal court of each member county of an area planning commission must vote to dissolve the commission before such dissolution may take effect.
    2. Upon receipt of a petition signed by at least twenty-five percent (25%) of the number of registered voters who voted in the last presidential election, the fiscal court shall schedule a public hearing on the matter of alteration or dissolution and advertise such hearing as provided in KRS 424.130 .
    3. The petition shall be in substantially the following form:
    4. At the hearing, the burden of proving that the commission is providing or taking substantial steps toward providing the services for which it was created, or that no other entity is providing the service, shall be upon the commission. In determining whether to alter, dissolve or to take no action in regard to the commission, the fiscal court shall consider testimony offered at the hearing and any other relevant information including but not limited to the following:
      1. Present and projected need for the service provided by the commission;
      2. Population density of the commission;
      3. Existence of alternate providers of services;
      4. Revenue base of the commission such as assessed valuation and bonding capacity; and
      5. Consequences of alteration of the commission’s boundaries on the effectiveness and efficiency of the commission.
    5. Within sixty (60) days following the hearing, the fiscal court shall set forth its written findings of fact in approving or disapproving the alteration or dissolution of the commission.
      1. If the fiscal court determines to dissolve the commission, it shall determine a method to satisfy any legal obligations of the commission which might be affected thereby. Upon satisfaction of its legal obligations, the commission shall be legally dissolved; any special ad valorem tax imposed by the commission shall be removed from the tax rolls by the county clerk; and any assets of the commission shall be assumed by the county.
      2. If the fiscal court determines to alter the boundaries of the commission, it shall draw the new boundaries of the commission and determine the proportional amount of existing legal obligations of the area which is to be excluded from the commission. Upon the satisfaction of such obligations, the new boundaries of the commission shall be legally effected and any affected taxpayer shall be removed from the tax rolls of the commission.
    6. If the final decision of the fiscal court or the Circuit Court, in the case of an appeal as provided for herein, is against the alteration or dissolution of the commission, no attempt to alter or dissolve the commission pursuant to this section shall be made within three (3) years of the decision.
    7. Any petitioner or member of the commission may, within thirty (30) days of the fiscal court’s decision, appeal an adverse finding of the fiscal court to the Circuit Court in the county containing the greater part of the commission. The Circuit Court shall review the decision of the fiscal court but shall reverse the decision only if such decision is found to be arbitrary or capricious. If the Circuit Court reverses the decision of the fiscal court by ordering the alteration or dissolution of the commission, it shall direct the fiscal court to determine, as provided in subsection (3)(e) of this section, a method for satisfying any legal obligations of the commission which might be affected thereby.
  4. An area planning commission may be dissolved by a referendum as follows:
    1. Persons seeking dissolution of the commission shall submit a petition to the county clerk signed by at least twenty-five percent (25%) of the number of registered voters who voted in the last presidential election.
    2. The petition shall be in substantially the following form:
    3. If the county clerk determines that the petition is in proper order, he shall certify the petition to the fiscal court. The fiscal court shall direct that the question be placed on the ballot at the next regular election if the question is submitted to the county clerk not later than the second Tuesday in August preceding the regular election. The fiscal court shall bear the costs of advertising and placing the question on the ballot.
    4. The county clerk shall advertise the question as provided in KRS Chapter 424 and shall prepare the question for the ballot. The ballot shall contain the following admonition to the voter: “The (name of the area planning commission) may have existing legal obligations which must be satisfied before the commission can be dissolved. The citizens residing within the area planning commission territory shall be responsible for the satisfaction of any obligations.” The question of the dissolution of the commission shall be placed on the ballot in substantially the following form:
    5. All registered voters shall be eligible to vote on the question of dissolution.
    6. In referendums under this section, provision shall be made for those opposing the dissolution of the commission to have equal representation with the proponents of the measure in the determination of eligibility of voters, and in the observance of canvassing and certifying of the returns.
    7. If a majority of those voting in the referendum as provided for herein, favor the dissolution of the commission, the commission shall, upon satisfaction of its legal obligations, be dissolved by the order of the fiscal court, any special ad valorem tax imposed by the commission shall be removed from the tax rolls by the county clerk and any assets of the commission shall be assumed by the county.
    8. If a majority of those voting in the referendum oppose the dissolution of the commission, no attempt to dissolve the commission pursuant to this section shall be made within five (5) years of the election.
    9. Each member county of an area planning commission must follow the procedures defined herein, before such dissolution may take effect.
    10. Any member county of an area planning commission may withdraw its membership after following the procedures defined herein. The commission shall continue to function after such withdrawals, with its boundaries consisting of the remaining county members. No county may withdraw from any commission unless it satisfies its part of all contractual obligations assumed by the commission prior to the passage of its resolution.
  5. Nothing contained herein shall be construed as prohibiting any county, which is included in the territory of an area planning commission, from withdrawing that county’s membership in an area planning commission, provided that the procedures for effectuating such withdrawal shall be in accordance with either subsection (3) or (4) of this section.

“The undersigned registered voters as determined by subsection (3)(b) of this section living within the area planning commission territory (and containing a description of the territory) hereby request that the fiscal court consider the alteration or dissolution of the area planning commission pursuant to this section.” The petition shall conspicuously state in laymen’s terms that any legal obligations of the commission must be satisfied before the commission can be dissolved and that the citizens residing within the area planning commission territory shall be responsible for the satisfaction of any obligations. Signatures on the petition shall be dated, the last no later than ninety (90) days after the first.

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“The undersigned registered voters as determined by subsection (4)(a) of this section, living within the area planning commission territory (and containing a description of the territory) hereby request that the question of the dissolution of the commission be put to a referendum.” The petition shall conspicuously state in laymen’s terms that any legal obligations of the commission must be satisfied before the commission can be dissolved and that citizens residing within the area planning commission territory shall be responsible for the satisfaction of any such obligations. Signatures on the petition shall be dated, the last no later than ninety (90) days after the first.

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“The (name of the area planning commission and containing a description of the commission’s territory) should be dissolved.” The voter shall vote “yes” or “no.”

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History. Enact. Acts 1960, ch. 248, § 2; 1974, ch. 359, § 5; 1982, ch. 253, § 2, effective July 15, 1982; 1996, ch. 195, § 55, effective July 15, 1996.

NOTES TO DECISIONS

1.Recommendations Advisory.

The controversy between local governments and area planning commissions as to which body’s power was supreme was resolved by the enactment of this section which determined that the planning commission’s reviews and recommendations were merely advisory and could be overridden by the local legislative body. Northern Kentucky Area Planning Com. v. Campbell County, 509 S.W.2d 277, 1974 Ky. LEXIS 562 ( Ky. 1974 ).

2.Planning Commission was not Dissolved.

Appellant's suit challenging appellee's assessment and collection of ad valorem taxes on grounds it no longer met Ky. Rev. Stat. Ann. § 147.610 's requirements for an area planning commission was properly dismissed on summary judgment because pursuant to this section, a county member's unilateral withdrawal did not dissolve appellee, which remained a viable political subdivision. Kuhnhein v. N. Ky. Area Planning Comm'n, 495 S.W.3d 152, 2015 Ky. App. LEXIS 136 (Ky. Ct. App. 2015).

Opinions of Attorney General.

If a majority of voters in a referendum held under this section favor the dissolution of an area planning commission in their county, any assets of the commission would be assumed by the county’s fiscal court upon the planning commission’s dissolution. OAG 82-582 .

147.630. Commission membership — Officers — Quorum — Meetings.

  1. The area planning commission as created under the provisions of KRS 147.610 to 147.705 shall be composed of not more than nine (9) members who shall be selected from governmental units participating in the existence of the area planning commission by the affirmative action of the area council hereinafter provided for.
  2. Of the initial membership five (5) members shall be elected for a term of two (2) years, and four (4) members for a term of one (1) year each, and upon the expiration of their respective terms the successors of each shall be elected for a term of two (2) years.
  3. At its first regular meeting in each year, the commission shall elect from its membership a chairman and a vice chairman. The vice chairman shall have the authority to act as the chairman during the absence of its chairman.
  4. The commission may appoint from within or without its own membership a secretary, prescribe his duties and fix his compensation.
  5. Members of the commission may be removed for cause by an affirmative action of the area council.
  6. Vacancies may be filled at any time by the affirmative action of the area council for the unexpired term existing.
  7. Each member of the commission, before entering upon his official duties, shall take and subscribe to an oath that he will honestly, faithfully, and impartially perform the duties of his office, and that he will not be interested in any contract let for the purpose of carrying out any of the provisions of KRS 147.610 to 147.705 . The oath shall be filed with the county clerk in the county of his residence.
  8. Each member of the commission shall give a good and sufficient bond, to be approved by the area council, conditioned upon the faithful and honest performance of his duties, and as security for all moneys coming into his hands or under his control. The cost of the bond shall be paid by the commission.
  9. A quorum shall consist of a majority of the members of the commission.
  10. The commission shall appoint a treasurer from within or without its membership, prescribe his duties and fix his compensation. The treasurer shall execute a good and sufficient bond, conditioned upon the faithful and honest performance of his duties and as security for all moneys coming into his hands or under his control. Said bond shall be in the penal sum of twenty-five thousand dollars ($25,000). The cost of the bond shall be paid by the commission.
  11. Meetings shall be held at the call of the chairman.

History. Enact. Acts 1960, ch. 248, § 3, effective June 16, 1960; 1978, ch. 384, § 286, effective June 17, 1978; 1982, ch. 353, § 3, effective July 15, 1982.

147.635. Budget — Annual audit — Compliance with KRS 65A.010 to 65A.090.

  1. An area planning commission created under the provisions of KRS 147.610 to 147.705 shall, not later than two (2) months prior to the first day of its fiscal year, submit a proposed budget detailing anticipated revenues and expenditures, and a proposed tax rate, to the area council for its approval on or before the first day of each such fiscal year.
  2. The area council shall contract with an independent, reputable certified public accountant to perform an audit of the records, books, and accounts of the area planning commission for each fiscal year.
  3. The area planning commission and area council shall comply with the provisions of KRS 65A.010 to 65A.090 .

History. Enact. Acts 1974, ch. 359, § 6; 1982, ch. 253, § 4, effective July 15, 1982; 2013, ch. 40, § 54, effective March 21, 2013.

147.640. Area council — Membership — Relation to commission.

  1. In order to provide more effective representation of the various governmental units participating in the creation of the area planning commission, an area council shall be created.
  2. The area council shall be composed of one (1) representative and one (1) alternate from each municipality and county within the area planning territory. Each such representative and alternate shall be appointed annually in the manner prescribed by law respecting appointments by such city or county.
  3. Only elected officials of each respective jurisdiction shall be eligible for appointment to the area planning council.
  4. At its first regular meeting in each year, the council shall elect from its membership a president and vice president. The vice president shall have the authority to act as president of the council during the absence or disability of the president.
  5. The council may appoint from within or without its own membership a secretary, prescribe his duties and fix his compensation.
  6. The council shall act in a supervisory and advisory capacity with the area planning commission created hereunder. All actions taken by the council must receive the affirmative vote of the following, if in attendance: two (2) counties or two (2) cities with a population equal to or greater than fifteen thousand (15,000) based upon the most recent federal decennial census or one (1) county and one (1) city with a population equal to or greater than fifteen thousand (15,000) based upon the most recent federal decennial census and a majority of the remaining membership in attendance for passage.
  7. The area council may budget in each year for the payment of a per diem for each member of the area planning commission not to exceed in any one (1) year the sum of one thousand dollars ($1,000) for each member.
  8. A quorum of the area council shall consist of a majority of its membership.

History. Enact. Acts 1960, ch. 248, § 4; 1974, ch. 359, § 1; 1982, ch. 253, § 5, effective July 15, 1982; 2014, ch. 92, § 220, effective January 1, 2015.

147.650. Effect on existing master plans — Local legislative body to state reasons for overriding recommendation of area planning commission. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 248, § 5; 1974, ch. 359, § 2) was repealed by Acts 1982, ch. 253, § 13, effective July 15, 1982.

147.660. Corporate character of commission — Power to levy tax and accept funds.

  1. The area planning commission created hereunder, when accepted by the cities and counties affected as provided for herein, shall then be a political subdivision and shall be in perpetual existence, with power to sue and be sued, contract and be contracted with, incur liabilities and obligations, levy an annual tax, which shall not exceed more than five cents ($0.05) upon each one hundred dollars ($100) of the assessed valuation of property within the counties affected, to be used for the purpose of defraying all expenses necessary and incidental to carry out the continuing activities of the area planning commission. This tax shall be certified to the auditors and county clerks of the various counties and by them to the respective treasurers of the counties, signator to the contract provided for in KRS 147.620 . The tax shall be based upon the last preceding assessment for state and county purposes. Its collection shall be imposed upon all property within the counties participating and shall conform to the collection of taxes for counties and the same provisions concerning the nonpayment of taxes shall apply. The tax shall be added by the county clerk to the next state and county tax bill following the levy of the tax by the area planning commission, and shall be collected concurrently with state and county taxes. The sheriff shall be allowed a fee not to exceed four percent (4%) for collection.
  2. In the performance of its duties, the area planning commission may cooperate with, contract with, or accept funds from federal, state, or local public or semipublic agencies, or private individuals or corporations within or without the Commonwealth, may expend such funds and may carry out such cooperative undertakings and contracts.

History. Enact. Acts 1960, ch. 248, § 6; 1968, ch. 168, § 1.

NOTES TO DECISIONS

1.Construction.

The purpose of the 1968 amendment to this section was to make changes in the section with respect to matters other than the rate of tax, and it did not give the tax rate provision new vitality so as to impliedly repeal intervening other legislation such as the “rollback” law. Northern Kentucky Area Planning Com. v. Hensley, 468 S.W.2d 293, 1971 Ky. LEXIS 331 ( Ky. 1971 ).

Under KRS 147.660(1), area planning commissions were created as political subdivisions of the Commonwealth and subjected to the Whistleblower Act, KRS 61.101(2); because the Northern Kentucky Area Planning Commission was entitled to governmental immunity, the deputy director enjoyed its protections as well. N. Ky. Area Planning Comm'n v. Cloyd, 332 S.W.3d 91, 2010 Ky. App. LEXIS 7 (Ky. Ct. App. 2010).

2.Tax Levy.

Where an area planning commission changed its accounting basis from a calendar year to a fiscal year running from July 1 to June 30, in order to coordinate its fiscal year with that of the counties within its jurisdiction, the commission, in effectuating this change in accounting, had no authority to levy an additional ad valorem tax to finance a special fiscal year from January 1 to June 30, since that would have allowed the commission to receive one and one-half times its annual tax revenues. Kling v. Northern Kentucky Area Planning Com., 654 S.W.2d 606, 1983 Ky. LEXIS 261 ( Ky. 1983 ).

3.Planning Commission was not Dissolved.

Appellant's suit challenging appellee's assessment and collection of ad valorem taxes on grounds it no longer met Ky. Rev. Stat. Ann. § 147.610 's requirements for an area planning commission was properly dismissed on summary judgment because pursuant to Ky. Rev. Stat. Ann. § 147.620(4), a county member's unilateral withdrawal did not dissolve appellee, which remained a viable political subdivision. Kuhnhein v. N. Ky. Area Planning Comm'n, 495 S.W.3d 152, 2015 Ky. App. LEXIS 136 (Ky. Ct. App. 2015).

Opinions of Attorney General.

An area planning commission could not levy a tax rate which exceeded the compensating tax rate defined in KRS 132.010 . OAG 69-532 .

The creation of a special fiscal year by an area planning commission to bring its fiscal procedures into agreement with the fiscal procedures of the counties located within its jurisdiction and the levy of an ad valorem tax to finance the special fiscal year would be valid since subsection (1) of this section provides that the collection of its tax be done in conformity with the collection of county taxes, which, under KRS 68.060 can be done with reference to specific years or fractions thereof. OAG 81-355 .

Research References and Practice Aids

Kentucky Law Journal.

Stevens, Property Tax Revenue Assessment Levels and Taxing Rate: The Kentucky Rollback Law, 60 Ky. L.J. 105 (1971).

147.670. Additional powers and duties of commission.

The area planning commission shall have the power and duty to:

  1. Prepare an area-wide comprehensive plan of the entire area within its jurisdiction, which includes all territory incorporated and unincorporated within the counties signator thereto. The area-wide comprehensive plan shall include at least all comprehensive plan elements and research requirements prescribed in KRS Chapter 100, so that the planning commissions of local planning units as established under KRS Chapter 100 and their respective legislative bodies, may adopt all or parts of said area-wide comprehensive plan, as it applies to their respective areas of jurisdiction, as a means of fulfilling the applicable requirements of KRS Chapter 100. This area-wide comprehensive plan shall be reviewed and amended, if necessary, at least once every five (5) years;
  2. Appoint an executive director for the commission and fix his compensation. The director shall be qualified by training and experience in the field of planning and zoning;
  3. Upon written request of a city or county within the territory of the area planning commission, the area planning commission’s staff may prepare and submit for consideration to the appropriate local planning unit, zoning ordinances based on the comprehensive plans of such local planning unit. The area planning commission staff assigned to perform such work shall consult with the appropriate local planning unit as established under KRS Chapter 100, the city or county legislative bodies, and all property owners who are directly affected by any change in the zoning ordinance applicable to such local planning unit;
  4. Prescribe the qualifications of, appoint, remove, and fix the compensation of employees of the commission;
  5. Prepare, publish, and distribute reports and other material relating to the business of the commission;
  6. Prepare and submit an annual budget to the area planning council for the operation of the commission;
  7. Exercise general supervision of and make regulations for the administration of the affairs of the commission;
  8. Establish policies, procedures, and priorities for assigning staff and providing services to planning units established under the provision of KRS Chapter 100, their respective cities and counties, and other public and private agencies and organizations, and may, irrespective of KRS 147.675 , enter into agreements with cities, counties, and other public agencies and organizations in accordance with the provisions of KRS 65.210 to 65.300 for the administration of KRS 65.8801 to 65.8839 and KRS Chapters 99, 99A, 100, and 198B; and
  9. Keep an accurate and complete record of all commission proceedings, financial statements, and annually report to the various cities and counties signators to the agreement provided in KRS 147.620 .

History. Enact. Acts 1960, ch. 248, § 7; 1968, ch. 168, § 2; 1982, ch. 253, § 7, effective July 15, 1982; 2007, ch. 106, § 1, effective June 26, 2007.

147.673. Application filing requirements when city or county located within territory of commission and planning unit — Hearing — Notice and publication — Review.

Where a city or county is located within the territory of an area planning commission and also within a planning unit established under the provisions of KRS Chapter 100, all applications for the adoption, revision, or amendment of any comprehensive plan, zoning ordinance, or subdivision regulation, shall be filed with the area planning commission. The area planning commission staff shall immediately notify the city or county involved, promptly forwarding the application to the appropriate local planning commission of the planning unit as established under the provisions of KRS Chapter 100, and request a public hearing be scheduled before said local planning commission. Such public hearing shall be scheduled to be held within forty-five (45) days of the date of receipt of the application by the area planning commission. The area planning commission may contract with any local planning commission of a planning unit, located within its territory, as established under the provisions of KRS Chapter 100, to provide the statutory notice and publication requirements for such public hearings, and any staff assistance necessary to conduct the public hearing before the local planning commission. In all cases, the area planning commission staff shall be required to review and make recommendations upon all such applications to the applicable local planning commission, and to the applicant, along with supporting information and comprehensive plan documentation, prior to or at the scheduled public hearing.

History. Enact. Acts 1982, ch. 253, § 6, effective July 15, 1982.

147.675. Advisory capacity of area commission.

The provisions of KRS 147.610 through 147.705 shall be construed to confer on the area planning commission an advisory capacity only.

History. Enact. Acts 1974, ch. 359, § 3; 1982, ch. 253, § 8, effective July 15, 1982.

Opinions of Attorney General.

The Northern Kentucky Area Planning Commission may not make contractual agreements with cities to act in their behalf by serving as a central zoning administrator and building inspector charged with the administration and enforcement of local zoning regulations. OAG 78-597 .

147.680. Prohibition of construction by public agency without commission’s review and recommendations.

No public agency shall construct or authorize the construction of any public facility, which is determined by the area planning commission to be of area-wide significance, within the area planning boundaries until and unless the proposed location and extent of such public construction or authorization shall have been reviewed and recommendations made to the appropriate public agency by the area planning commission.

History. Enact. Acts 1960, ch. 248, § 8; 1974, ch. 359, § 4; 1982, ch. 253, § 9, effective July 15, 1982.

NOTES TO DECISIONS

1.Recommendations Advisory.

The controversy between local governments and area planning commissions as to which body’s power was supreme was resolved by the enactment of this section which determined that the planning commission’s reviews and recommendations were merely advisory and could be overridden by the local legislative body. Northern Kentucky Area Planning Com. v. Campbell County, 509 S.W.2d 277, 1974 Ky. LEXIS 562 ( Ky. 1974 ).

147.690. Hearing before adoption of master plan. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 248, § 9; 1966, ch. 239, § 141) was repealed by Acts 1982, ch. 253, § 13, effective July 15, 1982.

147.700. Adoption of master plan — Certification. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 248, § 9; 1968, ch. 168, § 3) was repealed by Acts 1982, ch. 253, § 13, effective July 15, 1982.

147.705. Information to be furnished to commission.

The legislative bodies of all counties forming the area planning commission, all cities, all special districts, planning and zoning commissions and boards of adjustment located therein, shall, after the final adoption, approval, or enactment of any annexation ordinance, subdivision plat, variance, zoning ordinance or resolution or subdivision regulation, furnish or cause to be furnished, within sixty (60) days after adoption or approval, a copy of same to the area planning commission.

History. Enact. Acts 1968, ch. 168, § 4; 1982, ch. 253, § 10, effective July 15, 1982.

147.710. Appeal from commission’s ruling. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 248, § 11, effective June 16, 1960) was repealed by Acts 1982, ch. 253, § 13, effective July 15, 1982.

147.990. Penalty. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 248, § 8, effective June 16, 1960) was repealed by Acts 1982, ch. 253, § 13, effective July 15, 1982.

CHAPTER 147A Program Development

147A.002. Department for Local Government — Organization — Commissioner.

  1. The Department for Local Government shall be headed by a commissioner and shall consist of the:
    1. Office of Financial Management and Administration, which shall be headed by an executive director appointed by the commissioner and shall be responsible for duties including but not limited to local government financial assistance; county budget approval; performance of various recordkeeping requirements for the Commonwealth’s cities, counties, and special districts; provision of administrative support for the state local debt officer and the state local finance officer; administration of the county officials training incentive program set forth in KRS 64.5275 ; and provision of financial analysis and guidance related to the internal budgetary processes of the Department for Local Government;
    2. Office of Federal Grants, which shall be headed by an executive director appointed by the commissioner and shall be responsible for the administration of all federal grant programs;
    3. Office of State Grants, which shall be headed by an executive director appointed by the commissioner and shall be responsible for the administration of all state grant programs, including the Renaissance on Main Program, the area development fund, the body armor program set forth in KRS 16.220 , the cemetery fund program, single county coal severance grants, and any state grant programs or individually funded projects awarded by statute or budget;
    4. Office of Legal Services, which shall be headed by an executive director appointed by the commissioner and shall be responsible for legal services within the Department for Local Government and for its constituencies around the Commonwealth; and
    5. Office of Field Services, which shall be headed by an executive director appointed by the commissioner and shall be responsible for duties including but not limited to staffing regional offices to assist local governments.
  2. The commissioner, with the approval of the Governor, shall appoint necessary deputies, assistants, attorneys, and other employees and shall fix their compensation and authorize payment of their expenses according to law.

History. Enact. Acts 1978, ch. 155, § 70, effective June 17, 1978; 1984, ch. 70, § 2, effective July 13, 1984; 1984, ch. 404, § 38, effective July 13, 1984; 1998, ch. 12, § 1, effective July 15, 1998; 1998, ch. 69, § 48, effective July 15, 1998; 2007, ch. 47, § 1, effective June 26, 2007; 2010, ch. 117, § 2, effective July 15, 2010.

147A.003. Kentucky Infrastructure Authority.

The Kentucky Infrastructure Authority shall be attached to the Department for Local Government for administrative purposes. Office space required by the authority shall be provided by the Department for Local Government.

History. Enact. Acts 1980, ch. 295, § 19, effective July 15, 1980; 1982, ch. 396, § 12, effective July 15, 1982; 1998, ch. 69, § 49, effective July 15, 1998; 2007, ch. 47, § 2, effective June 26, 2007; 2010, ch. 117, § 3, effective July 15, 2010.

147A.004. Distribution of state and federal planning funds.

  1. The Department for Local Government shall administer distribution of state and federal planning funds to area development districts and shall require by administrative regulation financial and operational reports, audits, and other controls as are necessary to assure compliance with state and federal laws relating to funds received by the area development districts.
  2. The Department for Local Government shall promulgate administrative regulations as will assure statewide coordination of the planning and assistance operations of the area development districts.

History. Enact. Acts 1978, ch. 155, § 71, effective June 17, 1978; 1998, ch. 69, § 50, effective July 15, 1998; 2007, ch. 47, § 66, effective June 26, 2007; 2010, ch. 117, § 4, effective July 15, 2010.

Opinions of Attorney General.

Although local governments are responsible for the enforcement of the state building code within the boundaries of their jurisdictions, the Department of Local Government may participate in the local enforcement program to the extent of providing funds for the research and planning of a program whereby various local governments will jointly conduct and operate an enforcement program. (Decision prior to 1982 enactment of KRS 147A.021 ). OAG 82-312 .

147A.006. Local Government Advisory Commission established. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 155, § 72; 1998, ch. 69, § 51) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

147A.008. Governor’s advisory council to the office of volunteer services — Appointment — Compensation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 155, § 47, effective June 17, 1978; 1980, ch. 295, § 14, effective July 15, 1980) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

147A.009. Division of Flood Control. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 357, § 2; 1998, ch. 69, § 52) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

147A.010. Kentucky program development office established — Administrator. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 66, § 1) was repealed by Acts 1974, ch. 74, Art. II, § 12.

147A.011. Water Resource Development Commission — Duties — Membership — Term — Authority to designate alternate. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 84, § 1) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

147A.020. Powers and duties of state local debt officer and state local finance officer.

  1. The state local debt officer and the state local finance officer within the Department for Local Government shall exercise the following administrative functions of the state:
    1. The state local debt officer shall exercise all administrative functions as provided in the county debt act, KRS 66.280 to 66.390 , and administrative functions relating to local government bonds as provided in KRS 66.045 ; and
    2. The state local finance officer shall exercise all administrative functions regarding county and local government budgets, as provided in KRS 68.210 to 68.360 .
  2. The state local debt officer shall have the following powers and duties:
    1. To require reports from local governments to enable him to adequately provide the technical and advisory assistance authorized by this section. The reports shall provide the necessary information for a complete file on local government debt, which the state local debt officer shall keep open for public inspection at the Department for Local Government;
    2. To conduct studies in debt management, including ways and means of appraising the terms of alternative bids;
    3. To request assistance and information, which shall be provided by all departments, divisions, boards, bureaus, commissions, and other agencies of state government, to enable the state local debt officer to carry out his duties under this section; and
    4. To compile and publish annually a report which shall include detailed information on local government long-term debt issued and retired during the previous year and outstanding, and other available statistical data on local government finances.
  3. The state local finance officer shall have the following powers and duties:
    1. To coordinate for the Governor the state’s responsibility for, and shall be responsible for liaison with the appropriate state and federal agencies with respect to, general revenue sharing for local government;
    2. To provide technical assistance and information to units of local government on matters including but not limited to fiscal management, purchases, and contracts; and
    3. To conduct training programs to instruct county and other local officials respecting their duties and responsibilities in the collection, expenditure, and management of public moneys subject to their control and jurisdiction.

History. Enact. Acts 1970, ch. 66, § 2; 1974, ch. 74, Art. II, § 10; 1978, ch. 155, § 68, effective June 17, 1978; 1980, ch. 188, § 108, effective July 15, 1980; 1980, ch. 295, § 103, effective July 15, 1980; 1982, ch. 393, § 48, effective July 15, 1982; 1984, ch. 70, § 1, effective July 13, 1984; 1994, ch. 508, § 45, effective July 15, 1994; 1998, ch. 69, § 53, effective July 15, 1998; 1998, ch. 85, § 6, effective July 15, 1998; 2007, ch. 47, § 67, effective June 26, 2007; 2010, ch. 117, § 5, effective July 15, 2010.

Compiler’s Notes.

KRS 66.280 and 66.330 to 66.390 referred to in subsection (1)(a) of this section in the reference “KRS 66.280 to 66.390 ” were repealed by Acts 1996, ch. 280, § 30, effective July 15, 1996.

Opinions of Attorney General.

A city housing agency may not operate a section 8 existing housing program (42 USCS § 1437f) within the boundaries of another city. OAG 80-55 .

A local public housing agency may operate a section 8 existing housing program (42 USCS § 1437f) outside of its territorial jurisdiction but within the county in which it is located under the provisions of KRS 79.110 to 79.180 , as long as the fiscal court of the county and a city or cities within the county and a city housing authority join together in such an agreement. OAG 80-55 .

An opinion expressed by a local government advisor of the Department of Local Government is advisory only and has no force of law since this section gives the Department of Local Government administrative powers only. OAG 80-89 .

Although local governments are responsible for the enforcement of the state building code within the boundaries of their jurisdictions, the Department of Local Government may participate in the local enforcement program to the extent of providing funds for the research and planning of a program whereby various local governments will jointly conduct and operate an enforcement program. (Decision prior to 1982 enactment of KRS 147A.021 ). OAG 82-312 .

147A.021. Department for Local Government — Powers and duties.

  1. The Department for Local Government shall have the following powers and duties:
    1. To require any reports from local governments that will enable it adequately to provide the technical and advisory assistance authorized by this section;
    2. To encourage, conduct, or participate in training courses in procedures and practices for the benefit of local officials, and in connection therewith, to cooperate with associations of public officials, business and professional organizations, university faculties, or other specialists;
    3. To request assistance and information, which shall be provided by all departments, divisions, boards, bureaus, commissions, and other agencies of state government to enable the Department for Local Government to carry out its duties under this section;
    4. At its discretion, to compile and publish annually a report on local government; and
    5. To administer the provisions of KRS 65A.010 to 65A.090 .
  2. The Department for Local Government shall coordinate for the Governor the state’s responsibility for, and shall be responsible for liaison with the appropriate state and federal agencies with respect to, the following programs:
    1. Demonstration cities and metropolitan development act as amended with the exception of Title I of the Housing and Community Development Act of 1974 as amended through 1981;
    2. Farmers Home Administration;
    3. Veterans Administration Act as amended, as it pertains to housing.
  3. The Department for Local Government shall provide technical assistance and information to units of local government, including but not limited to:
    1. Personnel administration;
    2. Ordinances and codes;
    3. Community development;
    4. Appalachian Regional Development Program;
    5. Economic Development Administration Program;
    6. Intergovernmental Personnel Act Program;
    7. Land and Water Conservation Fund Program;
    8. Area Development Fund Program;
    9. Joint Funding Administration Program;
    10. State clearinghouse for A-95 review;
    11. The memorandums of agreement with the area development districts to provide management assistance to local governments; and
    12. The urban development office.
  4. The Department for Local Government shall exercise all of the functions of the state local finance officer provided in KRS Chapters 66, 68, and 131 relating to the control of funds of counties, cities, and other units of local government.
  5. Upon request of the Administrative Office of the Courts, the Department for Local Government shall evaluate the financial condition of any local unit of government selected to participate in a court facilities construction or renovation project under KRS 26A.160 and shall certify to the Administrative Office of the Courts the local unit of government’s ability to participate in the project.

History. Enact. Acts 1982, ch. 396, § 13, effective July 15, 1982; 1984, ch. 183, § 1, effective July 13, 1984; 1994, ch. 508, § 46, effective July 15, 1994; 1998, ch. 69, § 54, effective July 15, 1998; 2000, ch. 496, § 7, effective July 14, 2000; 2007, ch. 37, § 2, effective June 26, 2007; 2007, ch. 47, § 68, effective June 26, 2007; 2010, ch. 117, § 6, effective July 15, 2010; 2013, ch. 40, § 55, effective March 21, 2013; 2019 ch. 119, § 2, effective June 27, 2019.

Opinions of Attorney General.

An area development district is not an agency of state government for purposes of compliance with local planning and zoning requirements, nor does an area development district have authority to operate an offender re-entry program. OAG 13-004 .

147A.023. Legislative findings — Department for Local Government to encourage growth of broadband and information technology in state. [Repealed]

History. Enact. Acts 2007, ch. 37, § 1, effective June 26, 2007; 2010, ch. 117, § 7, effective July 15, 2010; repealed by 2019 ch. 119, § 1, effective June 27, 2019.

147A.025. Instruction program for county officials.

  1. Except as provided in subsection (7) of this section, the Department for Local Government, with the advice and approval of the state local finance officer, annually shall conduct a program to instruct county clerks, sheriffs, jailers, and county treasurers respecting their duties and responsibilities in the collection and expenditure of public moneys, subject to their control and jurisdiction.
  2. The Department for Local Government, with the advice and approval of the state local finance officer, shall establish the content and publish instructional materials essential to implementing this program. Subsequent to every regular and extraordinary session of the General Assembly, the Department for Local Government, with the state local finance officer, shall review and revise, if necessary, the program when it is found not to be consistent with state law.
  3. The Department for Local Government may assess a charge to any person requesting copies of instructional materials published as provided by this section to cover actual costs of printing and handling these materials, except that no county official shall be charged for instructional materials provided for his use. Funds accruing from the sale of instructional materials shall be paid into the State Treasury, and the State Treasurer shall pay these funds into an account of the Department for Local Government to defray the costs of printing and handling these materials.
  4. The commissioner of the Department for Local Government, with the advice and approval of the state local finance officer, may prescribe completion standards for this program, and may, subject to subsection (6) of this section, establish the number, type, and sequence of instructional sessions to be conducted by the Department for Local Government; but the commissioner of the Department for Local Government shall not require the attendance of any county official, nor shall he prescribe any requirement or standard that restricts or impairs a county official or elected candidate in the lawful pursuit or conduct of the office to which he is elected.
  5. The Department for Local Government shall notify in advance each county clerk, sheriff, jailer, and county treasurer respecting instructional session pertinent to his office. Notification shall be by mail, and it shall be posted no later than twenty-one (21) days prior to the instructional session. At a minimum, the notice shall give the date, time, place, and title of the instruction session.
  6. The Department for Local Government shall conduct this program by providing a one (1) day session at various locations throughout this state in order to minimize the travel expenses of those officials attending, provided that the aggregate number of all sessions shall not exceed five (5) during any calendar year. Except as provided in subsection (7) of this section, the Department for Local Government may commence instruction anytime during a calendar year.
  7. The Department for Local Government shall not conduct a program as provided by this section during any calendar year when a general election is held for every constitutional county office. The Department for Local Government, however, shall commence instruction for the succeeding year within eighty (80) days following said general election.
  8. Every county official who attends an instructional session shall be paid his actual and necessary expenses in attending from the operating funds of his office.
  9. In fulfilling the requirements of this section, the Department for Local Government shall confer with and coordinate its duties and responsibilities with the Finance and Administration Cabinet and the Auditor of Public Accounts. The Department for Local Government shall also confer with those state universities whose mission statements mandate their participation in the training of public officials, the state associations for those officials listed in subsection (1) of this section, and the Kentucky Association of Counties, respecting the implementation of this section.

History. Enact. Acts 1982, ch. 383, § 1, effective July 15, 1982; 1984, ch. 13, § 1, effective July 13, 1984; 1998, ch. 69, § 55, effective July 15, 1998; 2005, ch. 85, § 562, effective June 20, 2005; 2007, ch. 47, § 69, effective June 26, 2007; 2010, ch. 117, § 8, effective July 15, 2010.

Opinions of Attorney General.

A fiscal court, assuming funds have been properly budgeted for the purpose, may lawfully approve reimbursement, subject to proper documentation being submitted, of the reasonable expenses for travel, meals, and lodging, actually paid by one elected to a county office, who has not yet assumed such office, where such expenses are immediately incident to attending statutorily provided training for such office. OAG 93-72 .

147A.027. Orientation and continuing education training for planning and zoning officials and staff.

    1. Each planning commissioner and board of adjustment member of a planning unit shall, within one (1) year prior to appointment, or within one hundred twenty (120) days of appointment, attend a minimum of four (4) hours of orientation training in one (1) or more of the subjects listed in subsection (4) of this section. (1) (a) Each planning commissioner and board of adjustment member of a planning unit shall, within one (1) year prior to appointment, or within one hundred twenty (120) days of appointment, attend a minimum of four (4) hours of orientation training in one (1) or more of the subjects listed in subsection (4) of this section.
    2. Each planning professional, zoning administrator, and administrative official, and each planning professional’s deputies and assistants, shall, within one (1) year prior to being employed, or within one hundred twenty (120) days of employment, attend a minimum of eight (8) hours of orientation training in one (1) or more of the subjects listed in subsection (4) of this section.
    3. Each of the individuals listed in paragraphs (a) and (b) of this subsection shall certify his or her attendance by a written statement filed with the secretary of his or her respective planning commission within one hundred forty (140) days of appointment or employment. Each statement shall identify the date of each program attended, its subject matter, location, sponsors, and the time spent in each program.
    1. Each planning commissioner and board of adjustment member of a planning unit shall, within each period of two (2) consecutive calendar years, starting at the date of the individual’s appointment, attend no less than eight (8) hours of continuing education in any of the subjects listed in subsection (4) of this section. (2) (a) Each planning commissioner and board of adjustment member of a planning unit shall, within each period of two (2) consecutive calendar years, starting at the date of the individual’s appointment, attend no less than eight (8) hours of continuing education in any of the subjects listed in subsection (4) of this section.
    2. Each planning professional, zoning administrator, and administrative official, and each planning professional’s deputies and assistants, shall, within each period of two (2) consecutive calendar years, starting at the date of the individual’s appointment, attend no less than sixteen (16) hours of continuing education in any of the subjects listed in subsection (4) of this section.
    3. Each of the individuals listed in paragraphs (a) and (b) of this subsection shall certify his or her attendance by a written statement filed with the secretary of his or her respective planning commission by December 31 of each calendar year. Each statement shall identify the date of each program attended, its subject matter, location, sponsors, and the time spent in each program.
  1. The planning commission or the legislative body of the city, county, urban-county, charter county government, or consolidated local government in which the planning commission has jurisdiction or, in the case of a joint planning unit, has representation in, shall be responsible for providing training as required by subsections (1) and (2) of this section or for providing funding to each planning commissioner, board of adjustment member, full-time planning professional, zoning administrator, administrative official, and planning professional’s deputies or assistants so that each individual may obtain training as required by subsections (1) and (2) of this section from other sources.
  2. The subjects for the education required by subsections (1) and (2) of this section shall include, but not be limited to, the following: land use planning; zoning; floodplains; transportation; community facilities; ethics; public utilities; wireless telecommunications facilities; parliamentary procedure; public hearing procedure; administrative law; economic development; housing; public buildings; building construction; land subdivision; and powers and duties of the board of adjustment. Other topics reasonably related to the duties of planning officials or planning professionals may be approved by majority vote of the planning commission prior to December 31 of the year for which credit is sought.
  3. Each local planning commission shall keep in its official public records originals of all statements and the written documentation of attendance required in subsection (6) of this section filed with the secretary of the planning commission pursuant to subsections (1)(c) and (2)(c) of this section for three (3) years after the calendar year in which each statement and appurtenant written documentation is filed.
  4. Each planning commissioner, board of adjustment member, full-time planning professional, zoning administrator, administrative official, and planning professional’s deputies or assistants shall be responsible for obtaining written documentation signed by a representative of the sponsor of any continuing education course for which credit is claimed, acknowledging the fact that the individual attended the program for which credit is claimed. That documentation shall be filed with the secretary of the planning commission as attachments to the statements required by subsections (1)(c) and (2)(c) of this section.
  5. If a planning commissioner or board of adjustment member fails to:
    1. Complete the requisite number of hours of orientation training and continuing education within the time allotted under subsections (1) and (2) of this section;
    2. File the statement required by subsections (1)(c) and (2)(c) of this section; or
    3. File the documentation required by subsection (6) of this section; the planning commissioner shall be subject to removal from office according to the provisions of KRS 100.157 , and the board of adjustment member shall be subject to removal according to the provisions of KRS 100.217 .
  6. No city, county, urban-county, charter county, consolidated local government, planning commission, board of adjustment, or any entity performing local planning under KRS Chapter 100, shall employ a planning professional, zoning administrator, administrative official, or a planning professional’s deputy or assistant, who fails to complete the requisite number of hours of orientation and continuing education required by subsections (1) and (2) of this section in the capacity of a planning professional, zoning administrator, administrative official, or planning professional’s deputy or assistant.

History. Enact. Acts 2001, ch. 50, § 1, effective June 21, 2001.

147A.028. Public purpose — Local government parks and recreational facilities fund established — Distribution of funds by commissioner.

  1. In enacting a parks establishment aid law, it is the intention of the General Assembly to supplement local efforts to establish park and recreational facilities. The inadequacy of present facilities and the high cost of acquisition and establishment of park recreational facilities are hereby declared to be matters of public interest and concern and vital to the promotion of the health, welfare, and industrial development of the inhabitants of the Commonwealth.
  2. The commissioner of the Department for Local Government shall cause to be established in the Treasury a special fund to be known as the local government parks and recreational facilities fund, to be administered by the commissioner. The fund shall be comprised of grants, contributions, appropriations, and intergovernmental transfers. Moneys in the fund shall not lapse at the end of the fiscal year.
  3. The commissioner may, when he determines that a proposed local government plan for a park or other recreational facility would serve the public interest, use moneys from the local government parks and recreational facilities fund to aid local governmental units in their acquisition and establishment of local parks and recreational facilities, provided that local governmental units must provide matching funds for the project. The Department for Local Government may grant an amount up to five hundred thousand dollars ($500,000) for any one (1) project, which amount shall not exceed fifty percent (50%) of the cost of the entire project. For the purposes of this section, local governmental units shall mean county governments, urban-county government, and governments of cities of any class. Title to parks and recreational facilities acquired by the use of funds authorized by this section shall vest in the local governmental unit which proposed the project and provided the matching funds.
  4. In September of each year, the commissioner shall determine the amount of funds available for distribution by December 31 of that same year. The commissioner may prescribe standards for determining the amounts to be granted for local projects and any administrative regulations as may be necessary to implement the provisions of this section. Funds granted by the Department for Local Government shall be spent by the local governing authorities only for the acquisition and establishment of parks and recreational facilities or major improvements or additions to existing parks and shall not be used for operating or maintenance expenses.

History. Enact. Acts 1982, ch. 162, § 1, effective July 15, 1982; 1998, ch. 69, § 56, effective July 15, 1998; 1998, ch. 597, § 3, effective July 15, 1998; 2007, ch. 47, § 70, effective June 26, 2007; 2010, ch. 117, § 9, effective July 15, 2010.

147A.029. Disbursement of funds for Local Match Participation Program.

  1. The commissioner of the Department for Local Government shall administer and determine the disbursement of funds for the Local Match Participation Program.
  2. Funds appropriated for the Local Match Participation Program may be used as matching funds by local governments for flood-related projects and straight sewage pipe removal projects with:
    1. The United States Army Corps of Engineers;
    2. The Federal Emergency Management Agency (FEMA); and
    3. Other federal government grant and loan programs requiring local matching funds.
  3. Any general fund appropriations made for the Local Match Participation Program may be used for flood control planning and mitigation activities and straight sewage pipe removal and mitigation activities.

History. Enact. Acts 1998, ch. 187, § 1, effective July 15, 1998; 2000, ch. 331, § 1, effective July 14, 2000; 2007, ch. 47, § 71, effective June 26, 2007; 2010, ch. 117, § 10, effective July 15, 2010.

147A.030. Duties of executive department for finance and administration. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 66, § 3; 1974, ch. 74, Art. II, § 9(4); 1976, ch. 299, § 13) was repealed by Acts 1978, ch. 155, § 165, effective June 17, 1978.

147A.031. Procedures for solid waste management conflict resolution.

  1. The Department for Local Government, in cooperation with cities, counties, waste management districts, waste industries, and the Energy and Environment Cabinet shall develop procedures designed to resolve conflicts resulting from municipal solid waste management facility siting and operation. The procedures shall address:
    1. Resolution of conflicts associated with multijurisdictional municipal solid waste management facilities, including the use of such techniques as negotiation, mediation, or arbitration to address issues, including but not limited to host community compensation and collection and disposal fees; and
    2. Resolution of issues, except those relating to permit conditions imposed by the cabinet, resulting from municipal solid waste management facility siting and operation, including the use of such techniques as negotiation, mediation, or arbitration to address concerns of those persons and landowners who are directly affected by the facility’s location and operation. Issues which may be addressed include but are not limited to the following:
      1. Operational issues, such as hours of operation;
      2. Recycling and composting efforts that may be implemented;
      3. Protection of property values;
      4. Traffic routing and road maintenance; and
      5. Establishment of local advisory committees.
  2. The Department for Local Government shall adopt administrative regulations to implement the provisions of subsection (1) of this section.
  3. Nothing in this section shall be construed to abridge any rights or remedies provided by KRS Chapters 109 and 224, or at common law.

HISTORY: Enact. Acts 1991 (1st Ex. Sess.), ch. 12, § 10, effective February 26, 1991; 1998, ch. 69, § 57, effective July 15, 1998; 2007, ch. 47, § 72, effective June 26, 2007; 2010, ch. 24, § 136, effective July 15, 2010; 2010, ch. 117, § 11, effective July 15, 2010; 2017 ch. 117, § 13, effective June 29, 2017.

147A.032. Industrial revenue bond information clearinghouse.

  1. As used in this section, “department” means the Department for Local Government.
  2. The department may, to the extent resources are available, establish an industrial revenue bond information clearinghouse to serve as a central statewide point of contact for the dissemination of information and guidance relating to the issuance and use of industrial revenue bonds by units of local government.
  3. The clearinghouse shall collect and disseminate information and guidance that may be adopted by units of local government seeking to issue industrial revenue bonds, including:
    1. Identification of best practices;
    2. Model ordinances and resolutions;
    3. Proper issuance procedures;
    4. Examples of possible uses of industrial revenue bond proceeds; and
    5. Other model guidelines.
  4. Information provided through the clearinghouse shall be published on a Web site that is accessible to the general public to assist private sector businesses, nonprofit organizations, and others that may benefit from the issuance of industrial revenue bonds.
  5. The Finance and Administration Cabinet, the Cabinet for Economic Development, and the Energy and Environment Cabinet shall assist the department, as needed, in the development of the clearinghouse, to ensure the most complete, accurate, and current information relating to the issuance and possible uses of industrial revenue bonds is available on the Web site.
  6. After the initial development of the clearinghouse is complete, and for as long as it is available, a link to the Web site shall be made available on the one-stop business portal established in KRS 14.250 .

History. Enact. Acts 2014, ch. 131, § 8, effective July 15, 2014.

147A.040. Executive department for finance and administration — Divisions — Duties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 66, § 4; 1974, ch. 74, Art. II, §§ 9(4) and 12) was repealed by Acts 1978, ch. 155, § 165, effective June 17, 1978.

Area Development Districts

147A.050. Area development districts created.

There is hereby created and established in the Commonwealth fifteen (15) area development districts consisting of the following counties:

  1. Purchase Area Development District which shall include the counties of Ballard, Carlisle, Hickman, Fulton, McCracken, Graves, Marshall, and Calloway;
  2. Pennyrile Area Development District which shall include the counties of Livingston, Crittenden, Lyon, Caldwell, Hopkins, Muhlenberg, Trigg, Christian and Todd;
  3. Green River Area Development District which shall include the counties of Union, Henderson, Webster, McLean, Daviess, Ohio and Hancock;
  4. Barren River Area Development District which shall include the counties of Logan, Simpson, Butler, Warren, Edmonson, Hart, Barren, Allen, Metcalfe and Monroe;
  5. Lincoln Trail Area Development District which shall include the counties of Breckinridge, Meade, Grayson, Hardin, Larue, Nelson, Washington, and Marion;
  6. Jefferson Area Development District which shall include the counties of Bullitt, Henry, Jefferson, Oldham, Shelby, Spencer and Trimble;
  7. Northern Kentucky Area Development District which shall include the counties of Boone, Kenton, Campbell, Carroll, Gallatin, Owen, Grant and Pendleton;
  8. Buffalo Trace Area Development District which shall include the counties of Bracken, Mason, Robertson, Fleming and Lewis;
  9. Gateway Area Development District which shall include the counties of Rowan, Bath, Montgomery, Menifee, and Morgan;
  10. Fivco Area Development District which shall include the counties of Greenup, Boyd, Carter, Elliott, and Lawrence;
  11. Big Sandy Area Development District which shall include the counties of Johnson, Magoffin, Martin, Floyd, and Pike;
  12. Kentucky River Area Development District which shall include the counties of Wolfe, Owsley, Lee, Breathitt, Leslie, Perry, Knott, and Letcher;
  13. Cumberland Valley Area Development District which shall include the counties of Jackson, Rockcastle, Laurel, Clay, Knox, Whitley, Bell, and Harlan;
  14. Lake Cumberland Area Development District which shall include the counties of Taylor, Adair, Green, Casey, Russell, Pulaski, Clinton, Cumberland, Wayne, and McCreary; and
  15. Bluegrass Area Development District which shall include the counties of Anderson, Franklin, Woodford, Mercer, Boyle, Lincoln, Garrard, Jessamine, Fayette, Scott, Harrison, Bourbon, Nicholas, Clark, Madison, Powell, and Estill.

History. Enact. Acts 1972, ch. 125, § 1.

NOTES TO DECISIONS

Cited in

N. Ky. Area Dev. Dist. v. Wilson, 612 S.W.3d 916, 2020 Ky. LEXIS 460 ( Ky. 2020 ).

Opinions of Attorney General.

The area development district dealt with in this section through KRS 147A.120 is an independent and autonomous public corporation exercising a function of state government and is not under the day-to-day control of the central state government nor operating on funds drawn from the state treasury and therefore does not fall within the waiver of sovereign immunity granted in KRS chapter 44. OAG 72-366 .

Research References and Practice Aids

Cross-References.

Area development fund, KRS 42.350 .

Kentucky Law Journal.

Abramson, Kentucky’s Future Need For Attorneys, 63 Ky. L.J. 323 (1974-1975).

147A.060. Board of directors for each district — Appointment — Terms — State officers and members of General Assembly may serve only in advisory capacity.

There shall be in each area development district a board of directors. The composition of the board and the terms and appointments of its members in each district shall be specified by administrative regulation promulgated by the Department for Local Government in accordance with KRS Chapter 13A. The designee of a mayor or county judge/executive shall be a member of the designator’s respective legislative body or their staff. Other persons who are not elected officials or members of their staffs may be designated as representatives with the consent of that body. The Department for Local Government, in specifying the composition of the board, shall conform to applicable federal requirements. A person who is a state officer, a deputy state officer, or a member of the General Assembly may serve only in a nonmember advisory capacity to the board of directors of an area development district. An area development district board of directors shall notify legislators of the provisions of this section and of their right to participate in the activities of the area development district. If a legislator chooses to participate in accordance with this section, the area development district shall send meeting notices to that legislator at the same time board members are notified of the meetings.

History. Enact. Acts 1972, ch. 125, § 2; 1974, ch. 74, Art. II, § 9(4); 1978, ch. 155, § 69, effective June 17, 1978; 1984, ch. 187, § 1, effective July 13, 1984; 1998, ch. 69, § 58, effective July 15, 1998; 2000, ch. 450, § 1, effective July 14, 2000; 2007, ch. 47, § 73, effective June 26, 2007; 2010, ch. 117, § 12, effective July 15, 2010.

Opinions of Attorney General.

No conflict of interest arises where a member of the board or one of the advisory committees of an area development district votes for a project which directly benefits the group he represents, although a conflict would arise if he had some special additional personal interest, in which case he would be disqualified from voting on that particular project. OAG 75-260 .

Administrative Regulation 200 KAR 10:010, issued by the Finance and Administration Cabinet pursuant to this section providing that no member of an area development district board would be eligible to serve more than two full terms consecutively in the same office, was effective against a member of the board who was serving in his third consecutive term and he was automatically disqualified. OAG 76-585 .

An area development district is not an agency of state government for purposes of compliance with local planning and zoning requirements, nor does an area development district have authority to operate an offender re-entry program. OAG 13-004 .

147A.070. Appointment of executive director — Election of executive committee, duties — Advertisement of open positions — Employees’ compensation.

  1. Subject to the requirements of subsection (3) of this section, the board of directors in each district may appoint an executive director and deputy executive director and fix the salary for each position. The executive director shall perform, in the name of the board, such functions and duties and may exercise such authority of the board as the board may delegate to the executive director. The deputy executive director, if one is hired, shall perform such functions and duties as designated by the executive director.
  2. The board of directors in each district may elect from its membership an executive committee and delegate to the committee any of the following duties:
    1. To employ such staff members as may be required for the operations of the district;
    2. To manage the financial assets and obligations of the district;
    3. To guide the activities of the district between meetings of the board; and
    4. To perform such other duties as the board might delegate to it.
  3. On or after June 29, 2017, an open position for the executive director or deputy executive director with an area development district shall be advertised by the board of directors in a manner designed to provide adequate notice of the opening and sufficient time for interested applicants to apply. Advertisement of an open position shall, at a minimum, be published on the Web site of the district and published in accordance with KRS Chapter 424 at a minimum for a period of twenty-one (21) days.
  4. Bonuses, awards, one (1) time salary adjustments, special salary enhancements, or severance pay for any employee, unless severance pay is provided pursuant to a contract approved by the board, that do not constitute a permanent change in the employee’s compensation shall not be made or awarded to any employee of a district.

HISTORY: Enact. Acts 1972, ch. 125, § 3; 2017 ch. 33, § 1, effective June 29, 2017.

NOTES TO DECISIONS

1.Arbitration.

Trial court properly denied an employer's motion to compel arbitration because the arbitration agreement executed by the employer, a political subdivision, and an employee as a condition of her employment was unenforceable; the employer had no authority to enter into the arbitration agreement. N. Ky. Area Dev. Dist. v. Snyder, 2017 Ky. App. LEXIS 174 (Ky. Ct. App. May 12, 2017), aff'd on other grounds, 570 S.W.3d 531, 2018 Ky. LEXIS 363 ( Ky. 2018 ).

Authority of the Northern Kentucky Area Development District to enter into an arbitration agreement with an employee, if it existed at all, had to be derived from the enabling legislation because, as a political subdivision of the State, it had only those powers conferred on it by the legislature. N. Ky. Area Dev. Dist. v. Snyder, 2017 Ky. App. LEXIS 174 (Ky. Ct. App. May 12, 2017), aff'd on other grounds, 570 S.W.3d 531, 2018 Ky. LEXIS 363 ( Ky. 2018 ).

Opinions of Attorney General.

Affirming OAG 73-318 , Kentucky area development districts are political subdivisions of the state as borne out by the definition of public agency in KRS 65.230 and at the same time they constitute units of local government and thus qualify under the federal Intergovernmental Personnel Act of 1970 for the receipt of funds under federal programs. OAG 73-529 .

Under this chapter and the bylaws of the area development district, the regular meetings of the district board of directors cannot be set by the executive committee of the board since under subsection (2)(d) of this section and the bylaws there was no express delegation to the executive committee by the board of the power to set regular meetings. OAG 76-482 .

An employee of an area development district would not be prohibited from becoming a candidate for and holding a county or city office and at the same time continuing his employment with the district. OAG 76-662 .

147A.080. Powers of board of directors.

Each board of directors shall have the power and authority to:

  1. Adopt and have a common seal and alter the same at pleasure;
  2. Sue and be sued;
  3. Adopt bylaws and make rules and regulations for the conduct of its business;
  4. Make and enter into all contracts or agreements necessary or incidental to the performance of its duties;
  5. Provide upon request basic administrative, research, and planning services for any planning and development body located within the district;
  6. Accept, receive, and administer loans, grants, or other funds or gifts from public and private agencies including the Commonwealth and the federal government for the purpose of carrying out the functions of the district;
  7. Expend such funds as may be considered by it to be advisable or necessary in the performance of its duties;
  8. Acquire, hold as may be necessary and convenient, encumber, or dispose of real and personal property, except that no board shall have the power of eminent domain;
  9. Charge fees, rents, and otherwise charge for services provided by the board, except that no board shall have any power to levy taxes;
  10. Enter into interlocal agreements or interstate compacts to the extent authorized by laws of the Commonwealth. An area development district organization shall be deemed a “public agency” as defined by the Interlocal Cooperation Act in KRS Chapter 65;
  11. Promote, organize, and advise special districts or other authorities in accordance with laws of the Commonwealth and act as the regional clearinghouse for such programs and projects as prescribed by federal regulation;
  12. Perform such other and further acts as may be necessary to carry out the duties and responsibilities created by KRS 147A.050 to 147A.120 .

History. Enact. Acts 1972, ch. 125, § 4; 1978, ch. 384, § 29, effective June 17, 1978.

NOTES TO DECISIONS

1.Legislative Body.

Northern Kentucky Area Development District (ADD) was not a legislative body for the purpose of the state health plan administration or for any other purpose; therefore, ADD was not appropriate legislative body to support hospital’s application to establish an ambulance service. Northern Ky. Emergency Medical Servs. v. Christ Hosp. Corp., 875 S.W.2d 896, 1993 Ky. App. LEXIS 142 (Ky. Ct. App. 1993).

2.Arbitration.

Trial court properly denied an employer's motion to compel arbitration because the arbitration agreement executed by the employer, a political subdivision, and an employee as a condition of her employment was unenforceable; the employer had no authority to enter into the arbitration agreement. N. Ky. Area Dev. Dist. v. Snyder, 2017 Ky. App. LEXIS 174 (Ky. Ct. App. May 12, 2017), aff'd on other grounds, 570 S.W.3d 531, 2018 Ky. LEXIS 363 ( Ky. 2018 ).

Authority of the Northern Kentucky Area Development District to enter into an arbitration agreement with an employee, if it existed at all, had to be derived from the enabling legislation because, as a political subdivision of the State, it had only those powers conferred on it by the legislature. N. Ky. Area Dev. Dist. v. Snyder, 2017 Ky. App. LEXIS 174 (Ky. Ct. App. May 12, 2017), aff'd on other grounds, 570 S.W.3d 531, 2018 Ky. LEXIS 363 ( Ky. 2018 ).

Cited in

N. Ky. Area Dev. Dist. v. Wilson, 612 S.W.3d 916, 2020 Ky. LEXIS 460 ( Ky. 2020 ).

Opinions of Attorney General.

No conflict of interest arises where a member of the board or one of the advisory committees of an area development district votes for a project which directly benefits the group he represents, although a conflict would arise if he had some special additional personal interest, in which case he would be disqualified from voting on that particular project. OAG 75-260 .

Although this section gives the board of directors power to sue and be sued, there is no waiver of sovereign immunity. OAG 75-458 .

Under this chapter and the bylaws of the area development district, the regular meetings of the district board of directors cannot be set by the executive committee of the board since under subsection (2)(d) of KRS 147A.070 and the bylaws there was no express delegation to the executive committee by the board of the power to set regular meetings. OAG 76-482 .

Under the powers entrusted to the Kentucky River Area Development District, the district may borrow money, contribute it to the county for the construction of a district office building, accept a deed to the property from the county and subsequently encumber the property which it receives. OAG 77-396 .

In contrast to counties, cities, and urban-county governments, the Blue Grass Area Development District does not have the authority to enact ordinances; thus, if the counties which make up the Blue Grass district desire to enact anti-litter container ordinances, the fiscal courts of each county must enact the ordinances on their own and, at the most, the board of directors of the development district might act in an advisory capacity. OAG 80-502 .

There are no powers under this section and KRS 147A.090 to empower an area development district to administer, manage, implement, or directly operate programs developed, since these sections only empower the area development district to engage in the work of program development through administrative, research and planning effort. OAG 81-185 .

This section and KRS 147A.090 authorize area development districts to engage in the work of program development through administrative, research and planning effort. They are not, however, authorized to administer, manage, implement or directly operate such programs once developed. OAG 82-312 .

The General Assembly envisions that area development districts have the power and authority to provide “management assistance” to local governments since a contrary conclusion would be inconsistent with KRS 147A.021(3)(m) (now (3)(k)). OAG 83-460 .

Sections 27 and 28 of the Kentucky Constitution would preclude a member of the General Assembly from serving at the same time as a member of the Board of Directors of an Area Development District. OAG 93-70 .

147A.090. Duties of board of directors.

Each district board of directors shall have the power, duty, and authority to:

  1. Establish such functional advisory committees as may be necessary and advisable. These functional advisory committees shall be organized to meet such guidelines as may be required for federal or state assistance;
  2. Conduct the necessary research and studies and coordinate and cooperate with all appropriate groups and agencies in order to develop, and adopt and revise, when necessary, a district development plan or series of plans, including, but not limited to, the following districtwide plan elements: goals and objectives; water and sewer; land-use; and open space and recreation. Such plans shall serve as a general guide for public and private actions and decisions to assure the development of public and private property in the most appropriate relationships;
  3. Prepare annually a report of its activities to the cities and counties within the district, the legislature, and the Governor. The board shall make copies of the report available to members of the public within the district;
  4. Comply with the provisions of KRS 65A.010 to 65A.090 ; and
  5. Cooperate with the Kentucky Mountain Regional Recreation Authority established in KRS 148.0222 for the purpose of establishing, maintaining, and promoting recreational trails to increase economic development, tourism, and outdoor recreation for Kentucky’s residents and visitors, not only in eastern Kentucky but throughout the Commonwealth.

HISTORY: Enact. Acts 1972, ch. 125, § 5; 2013, ch. 40, § 56, effective March 21, 2013; 2017 ch. 164, § 8, effective June 29, 2017.

Opinions of Attorney General.

No conflict of interest arises where a member of the board or one of the advisory committees of an area development district votes for a project which directly benefits the group he represents, although a conflict would arise if he had some special additional personal interest, in which case he would be disqualified from voting for that particular project. OAG 75-260 .

Where two men were appointed to two year terms on an advisory council to an area development district on September 14, 1976, and October 21, 1976, and no bylaw provision of the council allows such appointees to serve until their successors are appointed, vacancies automatically were created September 14, 1978 and October 21, 1978, respectively; but any actions performed by the two in the interim have been under color of title to the office and are valid. OAG 79-364 .

There are no powers under KRS 147A.080 and this section to empower an area development district to administer, manage, implement, or directly operate programs developed, since these sections only empower the area development district to engage in the work of program development through administrative, research and planning effort. OAG 81-185 .

KRS 147A.080 and this section authorize area development districts to engage in the work of program development through administrative, research and planning effort. They are not, however, authorized to administer, manage, implement or directly operate such programs once developed. OAG 82-312 .

The General Assembly envisions that area development districts have the power and authority to provide “management assistance” to local governments since a contrary conclusion would be inconsistent with KRS 147A.021(3)(m) (now (3)(k)). OAG 83-460 .

147A.100. Allocation of funds.

The Finance and Administration Cabinet shall, subject to the availability of funds, allocate funds to each district for the purpose of carrying out the district’s responsibilities and for matching federal and local funds.

History. Enact. Acts 1972, ch. 125, § 6; 1974, ch. 74, Art. II, § 9(4).

Opinions of Attorney General.

Where some employees of an area development district do not join a group medical plan, the premium money that would have otherwise been payable by the district on behalf of those employes could not be applied to the premium on life insurance. OAG 77-533 .

147A.110. District projects and property exempt from taxation.

As a public body, no area development district board shall be required to pay taxes or assessments upon any project or upon any property acquired or used by it or upon the income or proceeds therefrom.

History. Enact. Acts 1972, ch. 125, § 7.

Opinions of Attorney General.

The Gateway Area Development District was created as a public body and, as such, would be a political subdivision of the state. OAG 73-318 .

147A.115. Annual reports of receipt and expenditure of state and federal fundings.

  1. By December 31 of each year beginning in 2017, the Cabinet for Health and Family Services and the Education and Workforce Development Cabinet shall, following any year in which the cabinet awarded federal or state funds to an area development district, prepare and submit a detailed report to the Legislative Research Commission and area development district board members. The report shall include the total amount of state and federal funds distributed to each area development district, broken down by funding source and program from the preceding fiscal year.
  2. By December 31 of each year beginning in 2017, each area development district shall, following any year in which the area development district receives state or federal funds, prepare and submit a detailed report to the Legislative Research Commission and area development board members. The report shall include the following financial information from the preceding fiscal year:
    1. For each allocation, distribution, award, or grant of state or federal funds, the total amount, the percentage of the total amount, and a description of the specific types of expenditures made for or allocated to:
      1. Administrative costs;
      2. Direct expenditures; and
      3. Indirect expenditures;
    2. Allocation, distribution, award, or grant funds not expended, and an explanation of why the funds were not expended;
    3. The total amount of reserves carried forward by the area development district, identification of the source of those funds, and an explanation of why the funds are being carried forward; and
    4. For each program:
      1. A list of direct services provided by the district;
      2. A list of service providers contracted by the district and the services provided by those providers;
      3. The number of eligible persons for the program, number of persons served by the program, and, if applicable, number of people on waiting lists for the program; and
      4. The performance measures required by the contract used to evaluate the area development district’s actions.
  3. The Legislative Research Commission shall distribute the report to the appropriate interim joint committees and to the budget review subcommittee that has jurisdiction over the Cabinet for Health Family Services or the Education and Workforce Development Cabinet.

HISTORY: 2017 ch. 33, § 2, effective June 29, 2017.

147A.116. Required compliance with laws governing open meetings and records, procurement, a code of ethics, conflicts of interest, whistleblower protections, and compensation.

  1. By January 1, 2018, each area development district and any board, committee, or other organization created by an area development district shall:
    1. Comply with the provisions of KRS 61.870 to 61.884 ;
    2. Comply with the provisions of KRS 61.800 to 61.850 ;
    3. Comply with state and federal procurement statutes and administrative regulations, as applicable;
    4. Comply with and be subject to the provisions of KRS 65A.070 by either adopting a code of ethics or abiding by the applicable code of ethics pursuant to KRS 65A.070 ;
    5. Adopt policies to address conflicts of interest for employees and board members of the area development districts, which shall include a prohibition on employees and board members having any interest, either direct or indirect, in any contract entered into by the area development district or any agency created by the area development district;
    6. Be subject to the provisions of KRS 61.101 to 61.103 ;
    7. Subject to the provisions of KRS 14A.070(4), adopt, implement, and maintain a detailed and equitable compensation policy for its employees; and
    8. Establish and maintain an independent process to receive, analyze, investigate and resolve concerns relating to the area development district, including alleged violations of the code of ethics or any of the provisions of this section. The process shall include a monthly reporting requirement to the board members of the area development district of any reported concerns or alleged violations. If the process finds a reasonable likelihood that a violation exists, then that alleged violation shall be reported to the Department for Local Government, the Auditor of Public Accounts, and the Attorney General; and
  2. By July 1, 2020, each area development district and any board, committee, or other organization created by an area development district shall provide public access to financial information in compliance with the provisions of KRS 65.312(4).

HISTORY: 2017 ch. 33, § 3, effective June 29, 2017.

147A.117. Contract for audit by certified public accountant or firm instead of the Auditor of Public Accounts — Conditions for.

  1. No area development district shall enter into any contract with a certified public accountant or firm to perform an audit unless the Auditor of Public Accounts has declined in writing to perform the audit or has failed to respond within thirty (30) days of receipt of a written request. The area development district shall furnish the Auditor of Public Accounts with a comprehensive statement of the scope and nature of the proposed audit. The actual expense of an audit performed by the Auditor of Public Accounts shall be billed to the audited area development district.
  2. Any contract with a certified public accountant or firm entered into as a result of the Auditor of Public Accounts either declining to perform the audit or failing to respond within thirty (30) days of receipt of a written request for an audit shall specify the following:
    1. That the certified public accountant shall forward a copy of the audit report and management letters to the Auditor of Public Accounts for review;
    2. That the Auditor of Public Accounts shall have the right to review the certified public accountant or firm’s work papers before and after the release of the audit; and
    3. That after review of the certified public accountant or firm’s work papers, should discrepancies be found, the Auditor of Public Accounts shall notify the audited entity of the discrepancies. If the certified public accountant or firm does not correct these discrepancies prior to the release of the audit, the Auditor of Public Accounts may conduct its own audit to verify the findings of the certified public accountant’s report.
  3. If an audit verifying the findings of the certified public accountant or firm’s report is conducted by the Auditor of Public Accounts, the actual expense of the audit shall be billed to the area development district.

HISTORY: 2017 ch. 33, § 4, effective June 29, 2017.

147A.120. Limitation on districts’ functions, powers and duties.

Nothing in KRS 147A.050 to 147A.120 shall be deemed to limit or authorize the limitation in any manner of the functions, powers, or duties of any department or agency of the Commonwealth or of any political subdivision. Nor shall anything in KRS 147A.050 to 147A.120 authorize the Finance and Administration Cabinet or an area development district to perform or discharge any powers, duties, or functions now reposed, or which may hereinafter be reposed, by law in the Kentucky Department of Education, local school districts, or other educational institutions.

History. Enact. Acts 1972, ch. 125, § 8; 1974, ch. 74, Art. II, § 9(4).

NOTES TO DECISIONS

1.Certificate of Need.

Northern Kentucky Area Development District (ADD) was not a legislative body for the purpose of the state health plan administration or for any other purpose; therefore, ADD was not appropriate legislative body to support hospital’s application to establish an ambulance service. Northern Ky. Emergency Medical Servs. v. Christ Hosp. Corp., 875 S.W.2d 896, 1993 Ky. App. LEXIS 142 (Ky. Ct. App. 1993).

147A.125. Regional planning council.

  1. Except as set forth in subsection (8) of this section, each area development district shall establish a regional planning council to act in an advisory capacity on planning matters throughout the district.
  2. The regional planning council shall be composed of one (1) representative from each planning unit in the area development district. Each representative shall be appointed annually by the planning commission of each planning unit in the district. To be eligible for appointment to the council, a person shall be a member of the planning commission, or the planning commission’s professional staff.
  3. At its first regular meeting in each year, the council shall elect from its membership a president and vice president. The vice president shall have the authority to act as president of the council during the absence or disability of the president.
  4. The council shall meet at the call of the president, but at least quarterly in each year.
  5. To insure compatible treatment of planned development throughout the district, the council may review comprehensive plans of planning units within the district for regional impact, may develop regional transportation, infrastructure, and land use plans for the district, and may make recommendations regarding the regional impact of proposed comprehensive plans and plan amendments of planning units within the district.
  6. The area development district shall provide staff and technical support as requested by the council. Existing land use planning services and functions of the area development district shall be placed under the direction and control of the council.
  7. The council may offer training and education opportunities in the area of planning and zoning matters to planning commission members and staff in the district.
  8. The requirements of this section shall not apply to any area development district in which fifty percent (50%) or more of the population resides in cities or counties which participate in a regional planning authority, council of governments, or other agency which is authorized to perform regional planning functions as described in this section.

History. Enact. Acts 1990, ch. 362, § 9, effective July 13, 1990.

147A.130. Fee to cover administrative costs of health care trusts — Referral fees prohibited. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 482, § 22, effective July 13, 1990) was repealed by Acts 2000, ch. 521, § 30, effective July 14, 2000.

147A.140. District preparation of solid waste management plan.

In addition to its other powers, each area development district may prepare a solid waste management plan emphasizing regional alternatives for reduction, collection, transportation, and disposal for a local government which authorizes the preparation of the plan, but shall not have authority to implement the area plan.

History. Enact. Acts 1991 (1st Ex. Sess.), ch. 12, § 7, effective February 26, 1991.

Research References and Practice Aids

Kentucky Law Journal.

Cox, What May States Do About Out-of-State Waste in Light of Recent Supreme Court Decisions Applying the Dormant Commerce Clause? Kentucky As Case Study in the Waste Wars, 83 Ky. L.J. 551 (1994-95).

Gas System Restoration Project

147A.200. Gas system restoration and development project account — Review board — Loan applications.

  1. The Department for Local Government is authorized and directed to apply for and receive federal funds to be placed in a state account called the gas system restoration and development project account, and to provide staff to administer said funds. The funds in this account may be used in any gas system restoration or development project approved by the Gas System Restoration and Development Project Account Review Board.
  2. A Gas System Restoration and Development Project Account Review Board is established and shall consist of eight (8) members appointed by the Governor. The board shall be chaired by the commissioner of the Department for Local Government and shall include representatives of the Public Service Commission, state fire marshal, Department for Local Government, Kentucky Infrastructure Authority, banking and finance industry, commercial or industrial consumers, Kentucky Gas Association, and low-income or minority group consumers. Members shall be reimbursed for necessary expenses in attending meetings.
  3. The review board shall meet as necessary and shall establish rules for conducting its business. The review board shall consider applications for loans from the account and approve or disapprove loan applications. No loan shall be considered unless the applicant has complied with all construction and securities requirements of the Public Service Commission. In reviewing loan applications, the review board may request the testimony of the county judge/executive of an affected county and any other witnesses deemed appropriate.

History. Enact. Acts 1980, ch. 295, § 20, effective July 15, 1980; 1998, ch. 69, § 59, effective July 15, 1998; 1998, ch. 551, § 1, effective July 15, 1998; 2007, ch. 47, § 3, effective June 26, 2007; 2010, ch. 24, § 137, effective July 15, 2010; 2010, ch. 117, § 13, effective July 15, 2010.

Legislative Research Commission Note.

(7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 117, which do not appear to be in conflict and have been codified together.

147A.250. Railtrail Development Office — Authority to apply for grants.

A Railtrail Development Office is hereby created within the Department for Local Government. The Department for Local Government shall ensure that the office has the necessary expertise to carry out the requirements imposed upon it by this section. Among other railtrail functions and duties which may be assigned to it, the Railtrail Development Office shall carry on at least the following responsibilities:

  1. The office shall monitor the proceedings of the United States Department of Transportation’s Surface Transportation Board and shall disseminate to interested entities in Kentucky information regarding those proceedings of interest to railtrail conversion or policy in the Commonwealth. If a railroad applies to the Surface Transportation Board for authority to discontinue service over or abandon a railroad corridor in the Commonwealth, the office shall immediately notify those political subdivisions through which the corridor passes and any interested state agency of the proceedings and the potential for trail development of the corridor. Notice shall also be sent to the county judge/executive of each county through which the proposed abandonment passes, who shall distribute copies of the notice to each member of the chief legislative body of the county government at the next regularly scheduled meeting of that legislative body. The office shall also send a copy of the notice to each soil and water conservation district through which the abandonment passes. If time is of the essence and it appears that the corridor is a suitable candidate for conversion to a railtrail and that no other railtrail interested entity will be participating in the federal proceeding, the office shall take those steps necessary to cause a railbanking or public use condition to be imposed in the federal proceeding;
  2. The office shall assist any requesting political subdivision or agency of state government with assistance on any application to the Surface Transportation Board regarding an abandoned or about-to-be-abandoned railroad corridor, including any requests for railbanking or imposition of public use conditions;
  3. The office shall coordinate and promote railtrail development efforts among the various agencies of state government, including the Department of Parks and the Transportation Cabinet. While this subsection does not confer upon the office any powers beyond those that it may ordinarily possess, every entity of state government shall cooperate with the office to the extent practicable under the circumstances;
  4. The office shall furnish to requesting political subdivisions assistance in applying to available federal, state, or local funding sources for funds to be used for the process of converting railroad corridors into public use trails; and
  5. The office may apply for federal, state, or private grants or other forms of financial assistance to carry on its mission.

History. Enact. Acts 2000, ch. 338, § 1, effective July 14, 2000; 2007, ch. 47, § 74, effective June 26, 2007; 2010, ch. 117, § 14, effective July 15, 2010.

Endow Kentucky Program

147A.300. Short title for KRS 147A.300 to 147A.330.

KRS 147A.300 to 147A.330 shall be known as the “Endow Kentucky Program.”

History. Enact. Acts 2010, ch. 71, § 1, effective July 15, 2010.

147A.305. Purpose of KRS 147A.300 to 147A.330.

The purpose of KRS 147A.300 to 147A.330 is to enhance the quality of life for citizens of the Commonwealth through increased philanthropic activity by providing capital to new and existing citizen groups of the Commonwealth organized as community foundations and working to establish endowment funds that will address community needs, and also to encourage individuals, businesses, and organizations to give to community foundations.

History. Enact. Acts 2010, ch. 71, § 2, effective July 15, 2010.

147A.310. Definitions for KRS 147A.300 to 147A.330.

As used in KRS 147A.300 to 147A.330 , unless the context requires otherwise:

  1. “Affiliate community foundation” means a philanthropic foundation organized or operating to serve an identified geographic area within the Commonwealth, and which:
    1. Is affiliated with a qualified community foundation; and
    2. Is certified by the commission pursuant to KRS 147A.325 ;
  2. “Commission” means the Endow Kentucky Commission established in KRS 147A.330 ;
  3. “County-specific component fund” means a fund of a qualified community foundation that is restricted to serve an individual county;
  4. “Endowment gift” means an irrevocable contribution to a permanent endowment held by a qualified community foundation, county-specific component fund, or affiliate community foundation;
  5. “Fund” means the community endowment fund established by KRS 147A.315 ; and
  6. “Qualified community foundation” means a philanthropic foundation organized or operating in the Commonwealth that:
    1. Substantially complies with the national standards for community foundations established by the National Council on Foundations;
    2. Is classified as a 501(c)(3) tax-exempt organization by the Internal Revenue Service; and
    3. Is certified by the commission pursuant to KRS 147A.325 .

History. Enact. Acts 2010, ch. 71, § 3, effective July 15, 2010.

147A.315. Community endowment fund.

  1. The community endowment fund is established as a separate trust and agency account in the State Treasury. The fund shall consist of funds appropriated from the general fund, and any other proceeds from appropriations, contributions, gifts, or grants made available for the purposes of the fund.
  2. Notwithstanding KRS 45.229 , any moneys remaining in the fund at the close of a fiscal year shall not lapse but shall be carried forward to the next fiscal year.
  3. Any interest earnings of the fund shall become a part of the fund and shall not lapse.
  4. The fund shall be administered by the Department for Local Government, and moneys in the fund shall be used to provide grants under KRS 147A.320 .

History. Enact. Acts 2010, ch. 71, § 4, effective July 15, 2010.

Legislative Research Commission Note.

(7/15/2010). A reference to the “Governor’s Office for Local Development” in subsection (4) of this section, as created by 2010 Ky. Acts ch. 71, sec. 4, has been changed in codification to the “Department for Local Government” to reflect the renaming of that agency in Executive Order 2009-540, which was confirmed by the General Assembly in 2010 Ky. Acts ch. 117. This change was made by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 117, sec. 90.

147A.320. Capacity building grant program — Challenge grant program — Administrative regulations — Annual report.

  1. The Department for Local Government may:
    1. Establish a capacity building grant program, through which it may provide qualified community foundations, county-specific component funds, and affiliate community foundations with grants from the fund for the purpose of developing and enhancing the receiving foundation’s capacity to operate and execute its mission, subject to the following restrictions:
      1. No qualified community foundation, county-specific component fund, or affiliate community foundation may receive more than one (1) capacity building grant during any fiscal year;
      2. No single capacity building grant shall exceed fifty thousand dollars ($50,000); and
      3. At least forty percent (40%) of funds awarded as capacity building grants shall be provided to newly established or emerging qualified community foundations, county-specific component funds, or affiliate community foundations that specifically seek to address the needs of rural areas of the Commonwealth;
    2. Establish a challenge grant program, through which it may provide qualified community foundations, county-specific component funds, and affiliate community foundations with grants from the fund for the purpose of building community-based unrestricted endowment funds by encouraging individuals, businesses, and other organizations to provide endowment gifts, subject to the following restrictions:
      1. No qualified community foundation, county-specific component fund, or affiliate community foundation may receive more than one (1) challenge grant during any fiscal year;
      2. Challenge grants may be provided in amounts not to exceed fifty percent (50%) of the amount of privately donated endowment gifts provided to the receiving qualified community foundation, county-specific component fund, or affiliate community foundation during the one (1) year period preceding the grant award. However, no single challenge grant shall exceed five hundred thousand dollars ($500,000); and
      3. At least forty percent (40%) of funds awarded as challenge grants shall be provided to newly established or emerging qualified community foundations, county-specific component funds, or affiliate community foundations that specifically seek to address the needs of rural areas of the Commonwealth; and
    3. Promulgate administrative regulations in accordance with KRS Chapter 13A to administer this section.
  2. Upon the establishment of any grant program under this section, the Department for Local Government shall provide an annual report to the commission, which shall include:
    1. The total number of grant requests submitted during the year, along with the amount of funds requested and the identity of the foundation making the request; and
    2. Information regarding all grants actually awarded during the year.

History. Enact. Acts 2010, ch. 71, § 5, effective July 15, 2010.

Legislative Research Commission Note.

(7/15/2010). References to the “Governor’s Office for Local Development” in subsections (1) and (2) of this section, as created by 2010 Ky. Acts ch. 71, sec. 5, have been changed in codification to the “Department for Local Government” to reflect the renaming of that agency in Executive Order 2009-540, which was confirmed by the General Assembly in 2010 Ky. Acts ch. 117. These changes were made by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 117, sec. 90.

147A.325. Certification of qualified community foundation, county-specific component, or affiliate community foundation — Commission to maintain and publish list of certified entities — Biennial review — Administrative regulations.

  1. In order to receive grants from the fund under KRS 147A.320 , a qualified community foundation, county-specific component fund, or affiliate community foundation shall substantially comply with the national standards for community foundations established by the National Council on Foundations, and be certified by the commission. The commission may charge a nonrefundable administrative fee to cover the costs associated with the certification process, not to exceed one thousand dollars ($1,000) per certification application.
  2. The commission shall:
    1. Maintain a current list of all qualified community foundations, county-specific component funds, and affiliate community foundations which are certified. This list shall be:
      1. Published on a Web site which is accessible to the general public; and
      2. Provided to the Department for Local Government and the Department of Revenue; and
    2. Perform a biennial review of each qualified community foundation, county-specific component fund, and affiliate community foundation which has been certified to ensure that it remains in compliance with all requirements mandated by this section or by administrative regulation.
  3. The commission may promulgate administrative regulations in accordance with KRS Chapter 13A to administer this section.

History. Enact. Acts 2010, ch. 71, § 6, effective July 15, 2010.

Legislative Research Commission Note.

(7/15/2010). A reference to the “Governor’s Office for Local Development” in subsection (2) of this section, as created by 2010 Ky. Acts ch. 71, sec. 6, has been changed in codification to the “Department for Local Government” to reflect the renaming of that agency in Executive Order 2009-540, which was confirmed by the General Assembly in 2010 Ky. Acts ch. 117. This change was made by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 117, sec. 90.

147A.330. Endow Kentucky Commission — Duties — Membership — Meetings.

  1. There is hereby established the Endow Kentucky Commission, which shall be responsible for the planning, implementation, and direction of a strategic and collaborative philanthropic partnership to focus on building endowment funds that will address community needs through community foundations.
  2. The commission shall be attached to the Department for Local Government for administrative purposes.
  3. The duties of the commission shall include but not be limited to the following:
    1. Explore opportunities for funding for the community endowment fund established by KRS 147A.315 ;
    2. Consult and advise the Governor and the agencies, departments, boards, and commissions of the Commonwealth, as well as local governments, on matters pertaining to philanthropy;
    3. Provide technical assistance to qualified community foundations and affiliate community foundations; and
    4. Review and certify community foundations pursuant to KRS 147A.325 .
  4. The membership of the commission shall consist of:
    1. The secretary of the Cabinet for Economic Development, or his or her designee;
    2. One (1) citizen member engaged in private rural development philanthropy, or who represents private rural development philanthropic interests, to be appointed by the Governor;
    3. One (1) representative of each community foundation that is organized or operating in the Commonwealth and in compliance with the national standards for community foundations established by the National Council on Foundations, to be appointed by the Governor; and
    4. One (1) representative from the area development districts appointed by the Governor from a list of names submitted by the executive directors of the area development districts.
  5. The Governor shall appoint members for a term of two (2) years, and any member may be reappointed. The members shall designate the chair of the commission from among the membership.
  6. Members shall serve without compensation, but shall be reimbursed for their actual expenses incurred in the performance of commission duties in accordance with KRS 45.101 and administrative regulations promulgated thereunder.
  7. The commission shall meet upon the call of the chair, but not less than twice each year.

History. Enact. Acts 2010, ch. 71, § 7, effective July 15, 2010.

Legislative Research Commission Note.

(7/15/2010). A reference to the “Governor’s Office for Local Development” in subsection (2) of this section, as created by 2010 Ky. Acts ch. 71, sec. 7, has been changed in codification to the “Department for Local Government” to reflect the renaming of that agency in Executive Order 2009-540, which was confirmed by the General Assembly in 2010 Ky. Acts ch. 117. This change was made by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 117, sec. 90.

CHAPTER 147B Financial Policy

147B.010. Establishment of Kentucky Council of Economic Advisers. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 164, para. (1)) was repealed by Acts 1986, ch. 370, § 5, effective July 15, 1986.

147B.015. Membership of council — Terms of office — Vacancies. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 164, para. (2); 1978, ch. 155, § 73, effective June 17, 1978; 1980, ch. 295, § 21, effective July 15, 1980) was repealed by Acts 1986, ch. 370, § 5, effective July 15, 1986.

147B.020. Duties of council. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 164, para. (3)) was repealed by Acts 1986, ch. 370, § 5, effective July 15, 1986.

147B.025. Council’s annual report to Governor — Content. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 164, para. (4)) was repealed by Acts 1986, ch. 370, § 5, effective July 15, 1986.

147B.030. Office for research, college of business and economics to conduct studies for council — Executive director of council. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 164, para. (5); 1974, ch. 74, Art. II, § 9(1); 1978, ch. 155, § 74, effective June 17, 1978; 1980, ch. 295, § 22, effective July 15, 1980) was repealed by Acts 1986, ch. 370, § 5, effective July 15, 1986.

147B.035. Disbursement of funds by Council — Compensation of members. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 164, para. (6); 1978, ch. 154, § 6, effective June 17, 1978; 1978, ch. 155, § 75, effective June 17, 1978; 1982, ch. 450, § 66, effective July 1, 1983) was repealed by Acts 1986, ch. 370, § 5, effective July 15, 1986.

147B.100. Governor’s Financial Policy Council — Purpose — Members — Meetings — Reimbursement.

  1. There is recognized as established the Governor’s Financial Policy Council. The purpose of the council shall be to advise the Governor on economic and financial matters relating to revenue, budgetary, and financial management policies.
  2. The council shall consist of the secretary of Finance and Administration Cabinet, the state budget director, and four (4) at-large members, appointed by the Governor, who shall be persons that are knowledgeable by reason of their experience and academic training, in the fields of business, financial management or public policy. The Governor shall designate one (1) of the four (4) at-large members to serve as chairman of the council.
  3. The terms of the at-large members shall coincide with the elected term of the Governor who appointed them. Vacancies in the at-large membership of the council shall be filled by appointment by the Governor for the unexpired portion of the vacated member’s term.
  4. The council shall meet at least annually and shall hold other meetings deemed necessary by a majority of the membership or when requested by the Governor.
  5. The members of the Governor’s council shall serve without compensation for their services but shall be reimbursed, subject to the provisions of KRS 45.101 and state travel regulations, for all actual and necessary expenses incurred in the performance of their duties as members of the council.

History. Enact. Acts 1986, ch. 370, § 1, effective July 15, 1986; 2005, ch. 85, § 563, effective June 20, 2005.

147B.110. Duties and functions.

The Governor’s Financial Policy Council shall perform the following duties and functions:

  1. Review the state revenue forecast and official revenue estimates;
  2. Review long-term expenditure patterns;
  3. Review federal economic, taxation, and budget policies and report to the Governor regarding the impact of such policies on the state economy and upon the state’s finances;
  4. Review state infrastructure and capital investment needs and advise the Governor regarding needed changes and revisions;
  5. Review and make recommendations regarding economic issues as are deemed appropriate; and
  6. Provide other financial analyses as requested by the Governor or the Governor’s Office for Policy and Management.

History. Enact. Acts 1986, ch. 370, § 2, effective July 15, 1986.

CHAPTER 148 Parks and Tourism

148.001. Definitions for chapter.

As used in this chapter, unless the context otherwise requires:

  1. “Department” means the Department of Parks;
  2. “Commissioner” means the commissioner of parks;
  3. “Commission” means the State Property and Buildings Commission;
  4. “Livestock” means cattle, sheep, swine, goats, horses, alpacas, llamas, buffaloes, and any other animals of the bovine, ovine, porcine, caprine, equine, or camelid species;
  5. “Prisoner of war” means any regularly appointed, enrolled, enlisted, or inducted member of the military forces of the United States who was captured, separated, and incarcerated by an enemy of the United States;
  6. “Sanctuary” means a place of refuge where wildlife is maintained and protected from depredation and destruction; and
  7. “Wildlife” means all living things that are neither human nor domesticated, including but not limited to mammals, reptiles, amphibians, birds, fishes, crustaceans, mollusks, trees, shrubs, vines, wildflowers, and nonflowering plants.

HISTORY: Enact. Acts 1964, ch. 157, § 1; 1972, ch. 189, § 1; 1988, ch. 95, § 2, effective July 15, 1988; 2017 ch. 129, § 3, effective June 29, 2017.

148.010. Department of Parks may accept park property; title in state. [Repealed.]

Compiler’s Notes.

This section (3766d-3) was repealed by Acts 1964, ch. 157, § 18.

148.011. Department of Parks created — Commissioner — Appointment — Divisions.

  1. There shall be established in the state government a Department of Parks, a statutory administrative department within the meaning of KRS Chapter 12, the executive head of which shall be the commissioner of parks.
  2. The commissioner of parks shall be appointed by the Governor as provided in KRS 12.040 for the heads of statutory administrative departments and shall receive an annual salary not to exceed the amount provided in KRS 64.640(2) relating to compensation for the heads of other statutory administrative departments.
  3. The commissioner of parks may establish divisions in accordance with the terms of KRS 12.050 .
  4. The heads of the divisions in the Department of Parks shall be appointed by the commissioner of parks in accordance with the provisions of KRS 12.050 .

History. Enact. Acts 1964, ch. 157, § 2; 1980, ch. 188, § 109, effective July 15, 1980.

Compiler’s Notes.

Conveyance of title to the United States of the Blue Licks Battlefield State Park was authorized by Acts 1944, ch. 177.

Research References and Practice Aids

Cross-References.

Finance and Administration Cabinet, power to acquire park property, KRS chs. 42, 45, 56.

Governor’s cabinet to plan parkway development, KRS 147.070 to 147.120 .

Grant to United States of lands and rights to acquire, KRS ch. 3.

Natural Resources, KRS ch. 146.

State flag, display at state parks, KRS 2.030 .

State lands, KRS 56.020 to 56.060 .

State theatre of Kentucky, KRS 153.110 to 153.140 .

Title to state property, KRS 56.030 .

148.020. Department may acquire, improve and operate parks; fees and charges. [Repealed.]

Compiler’s Notes.

This section (3766d-3a, 3766d-3c, 3766d-7: amend. Acts 1948, ch. 227, § 1) was repealed by Acts 1964, ch. 157, § 18.

148.021. Functions, powers, duties of department.

  1. The Department of Parks shall exercise all administrative functions of the state relating to the operation of state parks, shrines, monuments, and museums except those allocated to the historical society.
  2. The department may request acquisition, subject to the provisions of KRS Chapters 42, 45, 45A, 56, and the provisions made in this chapter, of lands by purchase, lease, or otherwise, on which to operate state parks.
  3. The department may improve said parks by constructing and equipping improvements or facilities in said parks.
  4. The department may operate said parks, fix fees and charges for the use of said parks and the improvements and facilities constructed therein, and provide for the collection of said fees and charges and the proper accounting therefor, except that:
    1. The department shall not impose boat launching fees at any boat ramp over which it has authority and control; and
    2. The department shall not allow, grant permission to, or permit any individual, sole proprietorship, partnership, corporation, limited liability company, or other form of business arrangement to which the department has granted a rental or leasehold interest or has engaged to manage or operate facilities that include a public boat launching ramp, to charge a boat launching fee at any boat ramp.
  5. The Department of Parks is authorized to enter into any agreement with the Breaks Interstate Park Commission for the operation of any facilities in the Breaks Interstate Park.
  6. The Department of Parks is authorized to accept, for deposit in a trust and agency fund account in accordance with KRS 45.253 , on behalf of the state any grant or contribution, federal or otherwise, to assist in meeting the cost of carrying out the functions assigned to the Department of Parks.
  7. Notwithstanding any provision in KRS Chapter 41, 45, 45A, or 47 to the contrary, there may be established separate cash funds and depositories at each state park from which immediate payment of refunds may be made to a patron or guest of such state park of any unearned money advanced or paid by such guest or patron. The department may accept from a guest or patron an amount which includes the fee for the service rendered plus a gratuity for the waitress or other designated person and remit the gratuity directly from the depository or cash fund to the designated recipient thereof. Such funds or depositories shall be governed by regulations established by the Department of Parks and approved by the Finance and Administration Cabinet.
  8. The commissioner may promulgate administrative regulations in accordance with provisions of KRS Chapter 13A in order to carry out the provisions of this section.

History. Enact. Acts 1964, ch. 157, § 3; 1966, ch. 173; 1968, ch. 126, § 1; Acts 1974, ch. 74, Art. II, § 9(1); 1978, ch. 384, § 30, effective June 17, 1978; 1982, ch. 450, § 67, effective July 1, 1983; 1990, ch. 496, § 40, effective July 13, 1990; 1992, ch. 424, § 1, effective July 14, 1992; 2006, ch. 232, § 1, effective July 12, 2006.

Legislative Research Commission Note.

(7/12/2006). 2006 Ky. Acts ch. 232, sec. 2, provides that “[a]ny person who has purchased and has in their possession evidence of the purchase of an annual ramp pass from the Department of Parks may apply for an shall receive a prorated refund for the cost of the unexpired portion of the annual ramp pass.”

NOTES TO DECISIONS

1.Maintenance, Repair and Insurance Costs.

The procurement and maintenance of public parks were governmental functions and the provision for payment of maintenance, repair, and insurance costs of the state park system did not constitute the creation of a debt in violation of the debt limitation provisions of the Const., §§ 49, 50 and 177. Kentucky Lake Vacation Land, Inc. v. State Property & Bldgs. Com., 333 S.W.2d 779, 1960 Ky. LEXIS 212 ( Ky. 1960 ) (decided under prior law).

2.Fees and Charges.

Charges might have been made for the use of certain facilities at state parks while other facilities might have been free to the public and although it was customary that fees were paid for the use of rooms at park hotels and cabins, for the use of golf courses, and other privileges, and that the use of certain swimming and beach facilities might have been free, there was no valid reason advanced why all facilities made available to the general public should not have borne a reasonable charge for their use since law that provided for operation of state parks and fixing of fees and charges for the use of the parks contained no exclusions. Kentucky Lake Vacation Land, Inc. v. State Property & Bldgs. Com., 333 S.W.2d 779, 1960 Ky. LEXIS 212 ( Ky. 1960 ) (decided under prior law).

Opinions of Attorney General.

The Commonwealth of Kentucky has the authority to lease out of state lands for park purposes from the United States Corps of Engineers. OAG 70-328 .

Research References and Practice Aids

Cross-References.

State Property and Buildings Commission to control acquisition of real estate for state purposes, and capital outlay projects, KRS 56.460 to 56.550 .

148.0211. Resident veteran who was a prisoner of war exempt from camping fees.

  1. Any veteran who has been a prisoner of war, was honorably discharged from the military forces, and is a resident of this state is exempt from camping fees in parks or campgrounds owned or operated by the Commonwealth of Kentucky.
  2. To claim the exemption provided for by subsection (1) of this section, a veteran shall forward:
    1. A copy of his separation form from military service; or
    2. A letter from one (1) of the military forces or the United States Department of Veterans Affairs; and
    3. Written proof of residence to the Department of Parks. The department shall mail a card to the veteran certifying that he is exempt from the fees specified in subsection (1) of this section.

HISTORY: Enact. Acts 1988, ch. 95, § 1, effective July 15, 1988; 2017 ch. 42, § 5, effective June 29, 2017.

148.0212. Permanently and totally resident veteran exempt from overnight accommodation rate at Kentucky state parks — Maximum number of stays — Peak periods — Administrative regulations.

  1. A Kentucky resident shall be exempt from the relevant overnight accommodations rate at any Kentucky state park if he or she is:
    1. A permanently and totally disabled veteran with a one hundred percent (100%) service-connected disability, regardless of wartime service; or
    2. A permanently and totally disabled member of the Kentucky National Guard or Reserve Component injured while on state active duty, active duty training, or inactive duty training.
  2. To be entitled to the exemption under this section, a veteran must be a Kentucky resident and must be rated one hundred percent (100%) permanently and totally disabled, as the result of an injury suffered while on active duty, by the United States Department of Veterans Affairs or the Department of Defense. Members of the Kentucky National Guard or Reserve Component must be rated one hundred percent (100%) permanently and totally disabled as provided in KRS Chapter 342.
  3. The exemption shall be made available to qualified Kentucky residents as described in this section for a maximum of three (3) overnight stays per calendar year at any Kentucky state park. Each stay shall be limited to a maximum of three (3) days, subject to availability. During peak periods, as defined elsewhere in this section, stays are to be taken during the Sunday through Thursday five (5) day period only. Outside of peak periods, stays are available at any time.
  4. The Department of Parks shall promulgate any administrative regulations necessary to carry out this section, including but not limited to:
    1. Defining peak periods, which shall be no longer than the days between Memorial Day and Labor Day and the month of October;
    2. Establishing the ten (10) day window during which reservations by residents under this section may be made;
    3. Establishing those accommodations which qualify for the exemption; and
    4. Delineating the types of proof acceptable for establishing eligibility for persons entitled to the exemption provided for in this section, while working in conjunction with the Kentucky Department of Veterans’ Affairs.
  5. The exemption described in this section shall not limit the benefits of a qualified Kentucky resident if he or she is also eligible for benefits under KRS 148.0211 .

HISTORY: Enact. Acts 2010, ch. 3, § 1, effective July 15, 2010; 2017 ch. 42, § 6, effective June 29, 2017.

148.022. Outdoor recreation programs administered by Department for Local Government — Breaks Interstate Park functions.

  1. The Department for Local Government shall administer and operate the outdoor recreation programs of the state and shall be responsible for developmental planning and the administration of United States Bureau of Outdoor Recreation funds.
  2. All functions of the Commonwealth relating to the Breaks Interstate Park shall be attached to the Tourism, Arts and Heritage Cabinet for administrative purposes.

History. Enact. Acts 1974, ch. 74, Art. VIII, C. § 1; 1982, ch. 396, § 14, effective July 15, 1982; 1992, ch. 424, § 2, effective July 14, 1992; 1998, ch. 48, § 6, effective July 15, 1998; 1998, ch. 69, § 60, effective July 15, 1998; 2005, ch. 95, § 15, effective June 20, 2005; 2007, ch. 47, § 75, effective June 26, 2007; 2009, ch. 16, § 16, effective June 25, 2009; 2010, ch. 117, § 72, effective July 15, 2010.

148.0221. KRS 148.0221 to 148.0225.

As used in KRS 148.0221 to 148.0225 , unless the context requires otherwise:

  1. “Authority” or “KMRRA” means the Kentucky Mountain Regional Recreation Authority established in KRS 148.0222 ;
  2. “Board” means the board of directors of KMRRA;
  3. “County” means a county, charter county, urban-county government, unified local government, or consolidated local government;
  4. “Kentucky Mountain Recreational Area” or “KMRA” means lands on which there is a system of recreational trails, including streams, rivers, and other waterways, and appurtenant facilities, including trailhead centers, parking areas, camping facilities, picnic areas, recreational areas, historic or cultural interpretive sites, and other facilities in Kentucky and designated by the KMRRA as a part of the KMRA;
  5. “Land” means roads, water, watercourses, buildings, structures, and machinery or equipment thereon when attached to the realty;
  6. “Landowner” means a tenant, lessee, occupant, or person in control of the premises;
  7. “Participating county” means a county that has qualified under KRS 148.0222(5);
  8. “Participating landowner” means a landowner who owns land in a participating county and has a contractual agreement with the KMRRA for trail development as part of the KMRA;
  9. “Recreational purposes” means all-terrain vehicle riding, bicycling, canoeing, hiking, horseback riding, hunting, kayaking, motorcycle riding, rock climbing, fishing, swimming, archaeological activities, nature study, off-highway vehicle driving, pleasure driving, watersports, winter sports, visiting or viewing historical or scenic sites, and otherwise using land for purposes pertaining to recreation or trail activities; and
  10. “Target county” means Bell, Boyd, Breathitt, Carter, Clay, Clinton, Elliott, Estill, Floyd, Greenup, Harlan, Jackson, Johnson, Knott, Knox, Laurel, Lawrence, Lee, Leslie, Letcher, Lewis, Madison, Magoffin, Martin, McCreary, Menifee, Morgan, Owsley, Perry, Pike, Powell, Pulaski, Rockcastle, Rowan, Wayne, Whitley, or Wolfe County.

HISTORY: 2017 ch. 164, § 3, effective June 29, 2017; 2018 ch. 124, § 4, effective July 14, 2018; 2019 ch. 170, § 1, effective June 27, 2019.

148.0222. Kentucky Mountain Regional Recreation Authority — Creation — Status — Powers — Purpose — Governance — Operation — Membership — Employees.

  1. The Kentucky Mountain Regional Recreation Authority is hereby created and established as an independent, de jure municipal corporation and political subdivision of the Commonwealth and shall exercise all of the powers that a corporation may lawfully exercise under the laws of the Commonwealth. The authority shall be a public body corporate and politic and an instrumentality of the Commonwealth, established with all the general corporate powers incidental thereto. The authority shall be attached to the Kentucky Department for Local Government for administrative purposes only. The authority shall be reauthorized for five (5) years from June 27, 2019, and may be renewed by the General Assembly. The authority may adopt bylaws and administrative regulations, subject to KRS Chapter 13A, for the orderly conduct of its affairs.
  2. The purpose of the authority is to establish, maintain, and promote a recreational trail system throughout the KMRA to increase economic development, tourism, and outdoor recreation for residents and visitors. The recreational trail system shall be located with significant portions of the system situated on private property made available for use through lease, license, easement, or other appropriate legal form by willing landowners.
  3. The authority shall be governed by a board of directors consisting of representatives from participating counties and the Commonwealth as provided in this section.
  4. The authority and board shall become operational when sixteen (16) target counties complete the requirements established by subsection (5)(a) of this section. When at least sixteen (16) target counties become participating counties, the commissioner of the Department for Local Government shall notify the county judge/executive of each of the participating counties, as well as the board members described in subsection (6) of this section, that the requirements have been met for the authority and board to become operational. The commissioner shall also establish a date, time, and place for an initial organizational meeting of the board, and shall serve as interim chair of the initial organizational meeting until such time as a chair is elected. The chair shall be a resident of a participating county.
  5. Any target county may become a participating county upon adoption of a resolution or ordinance by the governing body of the county specifically approving the county’s participation in the KMRRA and submission of the adopted resolution or ordinance to:
    1. The commissioner of the Department for Local Government if the resolution or ordinance is adopted prior to the KMRRA becoming operational pursuant to subsection (4) of this section; or
    2. The KMRRA if the resolution or ordinance is adopted after KMRRA becomes operational.
  6. The KMRRA board shall consist of the following members:
    1. The secretary of the Tourism, Arts and Heritage Cabinet or his or her designee;
    2. The commissioner of the Department for Local Government or his or her designee;
    3. The commissioner of the Department of Fish and Wildlife Resources or his or her designee;
    4. If an executive director of the authority has been employed under subsection (10) of this section, he or she shall serve as a nonvoting member, except in the event of a tie vote of the board;
    5. One (1) representative selected for each of the nine (9) participating counties as provided in subsection (8) of this section, who shall be either:
      1. The county judge/executive; or
      2. The county judge/executive’s designee, who shall be an individual involved with economic development, tourism, recreation, or a related area within the county;
    6. One (1) state Representative who is from the KMRRA region shall serve as a nonvoting member, appointed to a two (2) year term by the Speaker of the Kentucky House of Representatives, and shall not serve another term consecutively with a prior term; and
    7. One (1) state Senator who is from the KMRRA region shall serve as a nonvoting member, appointed to a two (2) year term by the President of the Kentucky Senate, and shall not serve another term consecutively with a prior term.
  7. The board membership of each county judge/executive or his or her designee shall:
    1. Begin with the county judge/executive’s term of office; and
    2. End with the county judge/executive’s term of office.

      If a county judge/executive ceases to serve as the county judge/executive prior to the end of his or her term, he or she shall be removed from the board, and his or her replacement as county judge/executive shall serve on the board for the remainder of the term.

    1. The twelve (12) voting members of the board shall be: (8) (a) The twelve (12) voting members of the board shall be:
      1. The nine (9) county judges/executive, or their designees, from different KMRRA participating counties as described in subsection (6)(e) of this section;
      2. The secretary of the Tourism, Arts and Heritage Cabinet or his or her designee;
      3. The commissioner of the Department for Local Government or his or her designee; and
      4. The commissioner of the Department of Fish and Wildlife Resources or his or her designee.
    2. The nine (9) initial county representatives shall be the county judges/executive of Breathitt, Martin, Perry, Knott, Leslie, Letcher, Pike, Magoffin, and Floyd Counties or their designees in that order. The first three (3) representatives listed shall serve a three (3) year term as voting members, the next three (3) representatives shall serve a two (2) year term as voting members, and the remaining three (3) representatives shall serve a one (1) year term as voting members.
    3. After each term ends, the voting county representative shall be replaced by one (1) of the county judges/executive or his or her designee from one (1) of the target counties whose representative has not yet served as a voting member.
    4. After the third year of operation, each new voting member shall serve a term of three (3) years, then step down and let a representative from the next county in line alphabetically whose representative has not served as a voting member take his or her place.
    5. Once representatives from all participating counties within KMRA have each served one (1) term, the rotation shall begin again.
    1. The board shall meet at least once annually to elect officers, establish a regular meeting schedule, and perform other duties as may be prescribed in the authority’s bylaws. The board chair may call special meetings at any time. (9) (a) The board shall meet at least once annually to elect officers, establish a regular meeting schedule, and perform other duties as may be prescribed in the authority’s bylaws. The board chair may call special meetings at any time.
    2. Notice of each meeting shall be made both in writing and electronically and delivered to board members at least seven (7) days before the scheduled meeting date. Electronic mail alone is an acceptable form of notice of special meetings, so long as it is sent to directors at least seven (7) days before the scheduled meeting date.
    3. Accommodations shall be made for remote attendance of each board meeting, whether regular or special, through means such as video conferencing, conference call, or similar services.
    4. The presence of a majority of the total voting members of the KMRRA board, whether in person or remote, shall constitute a quorum. Vacant board positions shall be counted against the quorum total necessary for board action.
    5. Board meetings shall be held exclusively within KMRRA participating counties, and each meeting shall be held in a different participating county until every participating county has hosted a meeting, at which time the cycle shall begin again.
  8. The KMRRA board:
    1. Shall elect a chair, vice chair, secretary, treasurer, and any other officers as established in the bylaws of the board;
    2. May appoint temporary and standing committees to accomplish the purposes of KRS 148.0221 to 148.0225 and shall clearly describe the role, responsibilities, and tenure of each committee so created;
    3. Shall adopt bylaws for the management and regulation of its affairs and all other matters necessary to effect proper management and accountability of the board. The bylaws shall include, at a minimum, the following:
      1. The powers and duties of the board’s members and the manner and number of officers to be elected from among the board members; and
      2. The terms, conditions, and manner in which a board member will be removed;
    4. Shall review and approve an annual budget;
    5. Shall annually procure an audit of the authority’s financial systems, conducted in accordance with generally accepted auditing standards. The Auditor of Public Accounts shall perform the audit. A copy of the audit shall be sent to the Legislative Research Commission and the Department for Local Government within ten (10) days of receipt by the board;
    6. Shall ensure that all administrative costs for operating the authority are paid from funds accruing to the authority. The authority, its board, and its staff shall incur no liability or obligation beyond the extent to which revenues have been provided under KRS 148.0221 to 148.0225 ;
    7. May seek administrative and management assistance through written agreement with state agencies, local area development districts, or local governing bodies until such time as the board has secured sufficient funding through grants, loans, fee systems, or any other funding source to hire staff; and
    8. Shall employ an executive director to act as its chief executive officer to serve at its will and pleasure once it is financially possible to do so.
  9. The executive director:
    1. Shall be a person who is domiciled in a KMRRA participating county;
    2. May, with permission of the board and approval of the commissioner of the Department for Local Government or his or her designee, employ any other hourly personnel considered necessary and retain temporary services. Pay raises for any personnel shall require approval of the board and the commissioner of the Department for Local Government or his or her designee;
    3. Shall carry out plans to implement KRS 148.0221 to 148.0225 and to exercise those powers enumerated in the bylaws of the board;
    4. Shall, along with any staff with responsibilities so delegated by the executive director, ensure that all minutes, records, and orders of the authority and its board are complete and available for public inspection, if necessary;
    5. Shall prepare narrative and financial reports of the authority’s fiscal obligations and submit these reports to the board at regularly scheduled meetings or as otherwise directed; and
    6. May cast a tiebreaking vote in board decisions, but shall not be permitted to cast a vote under any other circumstances. Until such time as an executive director is hired, the chairperson of the board shall make the final determination in the event of a tie vote of the board.
  10. The executive director, all full-time or part-time personnel, all seasonal employees, and all contractual employees, if any, shall be paid from funds accruing to the authority and authorized in a budget approved by the board, unless the Department for Local Government has temporarily taken on the responsibility of paying any of those employees.
  11. Board members shall serve without compensation, but may be reimbursed for actual and necessary travel expenses incurred in the performance of their duties, subject to Finance and Administration Cabinet administrative regulations. Board members may have their lodging reimbursed by KMRRA. Any reimbursement requests exceeding five hundred dollars ($500) per person shall be submitted to the Department for Local Government for approval.

HISTORY: 2017 ch. 164, § 4, effective June 29, 2017; 2019 ch. 170, § 2, effective June 27, 2019.

148.0223. Duties of authority — Prioritizing contractual obligations — Authorized functions — No waiver of sovereign immunity.

  1. The KMRRA shall:
    1. Supervise the design and construction of trail systems within the KMRA and provide all management functions for the trails and for any other property built, acquired, or leased pursuant to its powers under KRS 148.0221 to 148.0225 ;
    2. Construct, develop, manage, maintain, operate, improve, renovate, finance, or otherwise provide for recreational and trail-related activities and facilities on designated public lands and private lands of participating landowners who have voluntarily entered into use agreements with the board;
    3. Promote the growth and development of the trail system, tourism, and the hotel, restaurant, and entertainment industry within the KMRA and the Commonwealth, through marketing KMRA to enhance local economic and tourism development;
    4. Establish agreements with other persons, businesses, agencies, organizations, or any other entity to levy a surcharge on tickets for events, activities, festivals, or functions that are cosponsored with other entities and contribute to the authority’s operating revenue; and
    5. Procure insurance against any losses in connection with its property, licenses, easements, or contracts, including hold-harmless agreements, operations, or assets in such amounts and from such insurers as the board considers desirable.
  2. The board’s management program shall prioritize contractual arrangements with private landowners to use land for recreational purposes, which shall not diminish the participating landowner’s interest, control, or profitability of the land. If necessary to implement a comprehensive trail system, the board may also contract with public landowners through contractual agreements that recognize the primary mission for which the public entity controls and manages the land.
  3. The board may carry out any of the following to accomplish the purposes of KRS 148.0221 to 148.0225 :
    1. Acquire, own, and hold property, and all interests therein, by deed, purchase, gift, devise, bequest, or lease, or by transfer from the State Property and Buildings Commission, except that the authority shall not acquire property through the exercise of the power of eminent domain;
    2. Dispose of any property acquired in any manner provided by law;
    3. Lease property, whether as lessee or lessor, and acquire or grant through easement, license, or other appropriate legal form, the right to develop and use property and open it to the use of the public;
    4. Mortgage or otherwise grant security interests in its property;
    5. Maintain sinking funds and reserves as the board determines appropriate for the purposes of meeting future monetary obligations and needs of the authority; however, contributions to a sinking fund during a fiscal year shall not exceed ten percent (10%) of the total fees collected during the prior year;
    6. Sue and be sued, plead and be impleaded, and complain and defend in any court;
    7. Make contracts and execute instruments necessary for carrying on its business, including contracts with any Kentucky state agency, the federal government, or any person, individual, partnership, or corporation to effect any or all of the purposes of KRS 148.0221 to 148.0225 , as follows:
      1. Contracts shall go through a public bidding process;
      2. Contracts for one thousand dollars ($1,000) or more shall be sent, with at least three (3) bids from separate entities, to the Department for Local Government for review and final approval;
      3. Bids from entities within KMRRA participating counties are to be given preference over competing bidders from outside of KMRRA participating counties; and
      4. If the Department for Local Government has not given a response in the form of an approval or rejection after five (5) business days from the date the department received the contract to be reviewed, it shall be considered approved;
    8. Accept grants and loans from and enter into contracts and other transactions with any federal agency, regional commission, or state agency for accomplishing the purposes of KRS 148.0221 to 148.0225;
    9. Borrow money and issue bonds, security interests, or notes;
    10. Provide for and secure the payment of the bonds, security interests, or notes;
    11. Provide for the rights of the holders of the bonds, security interests, or notes;
    12. Purchase, hold, and dispose of any of its bonds, security interests, or notes;
    13. Accept gifts or grants of property, security interests, money, labor, supplies, or services from any governmental unit or from any person, firm, or corporation;
    14. Establish a regional recreational trail system based upon contracts and agreements with participating landowners. The board may enter into contracts with landowners, and other persons holding an interest in the land being used for its recreational facilities, to hold those landowners harmless with respect to any claim in tort growing out of the use of the land for public recreation or growing out of the recreational activities operated or managed by the board from any claim, except a claim for damages proximately caused by the willful or malicious conduct of the landowner or any of his or her agents or employees;
      1. Establish a fee-based system of permits, user registrations, or other trail or facility access mechanisms. (o) 1. Establish a fee-based system of permits, user registrations, or other trail or facility access mechanisms.
      2. The fees may be imposed for access to and use of the trails, parking facilities, visitor centers, or other trail-related recreational purpose facilities or recreation activities that are part of the KMRA or as an admission to an event.
      3. The fees shall be decided by the board.
      4. The KMRRA shall retain and use the revenue from fees for any purposes consistent with KRS 148.0221 to 148.0225 and within the guidelines in subsection (4) of this section;
    15. Promulgate administrative regulations in accordance with KRS Chapter 13A to govern use and maintenance of the KMRA and any other matters for effective management of the KMRA;
    16. Cooperate and contract with the regional recreation authorities of Tennessee, Virginia, West Virginia, and other contiguous states to connect the trails in Kentucky with similar recreation facilities in those states; and
    17. Exercise all of the powers that a corporation may lawfully exercise under the laws of the Commonwealth.
  4. The fees collected by the KMRRA are to be used within the following guidelines:
    1. To pay the salary of the executive director and all staff of the KMRRA;
    2. To reimburse travel expenses of board members including lodging, subject to Finance and Administration Cabinet administrative regulations;
    3. To fund the construction, maintenance, and all necessary expenses of the KMRRA trail system;
    4. To maintain a sinking fund with contributions to the fund during a fiscal year not to exceed ten percent (10%) of the total fees collected during the prior year and the total fund not to exceed a balance of one million dollars ($1,000,000) at the end of any fiscal year; and
    5. Any remaining moneys not already appropriated in accordance with KRS 148.0221 to 148.0225 at the end of the fiscal year are to be sent to the Department for Local Government to be placed into an account to be used exclusively for economic development grants in KMRRA participating counties. These grants shall give preference to projects in economically distressed counties, then to at-risk counties, and then to transitional counties, as defined by the Appalachian Regional Commission.
  5. Nothing in this section shall be construed as a waiver of sovereign immunity.

HISTORY: 2017 ch. 164, § 5, effective June 29, 2017; 2019 ch. 170, § 3, effective June 27, 2019.

148.0224. Revenue bonds and revenue refunding bonds.

  1. Revenue bonds and revenue refunding bonds of the authority issued under KRS 148.0221 to 148.0225 do not constitute a debt of the Commonwealth or of any political subdivision of the Commonwealth or a pledge of the faith and credit of the Commonwealth or of any political subdivision, but the bonds shall be payable solely from the funds provided for in KRS 148.0221 to 148.0225 from revenues resulting from the issuance of bonds.
  2. All bonds shall contain on the face of the bond a statement to the effect that neither the Commonwealth nor any political subdivision of the Commonwealth is obligated to pay the bond or the interest on the bond, except from revenues of the recreational project or projects for which they are issued, and that neither the faith or credit nor the taxing power of the Commonwealth or any political subdivision of the Commonwealth is pledged to the payment of the principal or the interest on the bonds.

HISTORY: 2017 ch. 164, § 6, effective June 29, 2017.

148.0225. No waiver of landowner protections of KRS 411.190.

A participating landowner who has a contractual agreement with the KMRRA for use of private land as part of the KMRA does not waive any protection granted to the landowner by KRS 411.190 .

HISTORY: 2017 ch. 164, § 7, effective June 29, 2017.

148.026. Employees — Contract for services.

The commissioner of parks may employ or contract with such other persons, firms or corporations as he may deem necessary or desirable to accomplish the duties and functions assigned by law to the Department of Parks; may fix the compensation and the terms of employment or contract of those employed or contracted with; and may assign to them such duties and responsibilities as he may determine; provided, however, that any contract shall be approved by the Finance and Administration Cabinet before it shall become effective. Individuals employed by the commissioner of parks on a temporary basis for specific construction projects under KRS 56.491(5) or for maintenance projects shall be exempt from the requirements of KRS 18A.005 to 18A.200 .

History. Enact. Acts 1964, ch. 157, § 7; 1974, ch. 74, Art. III, § 9(2); 1980, ch. 331, § 2, effective July 15, 1980; 1982, ch. 448, § 68, effective July 15, 1982.

148.028. Determination of need for state park — Request for acquisition.

The Department of Parks, may, through its commissioner, determine the need for lands or waters, or any interest or estate therein, located in Kentucky, having scenic beauty, material or recreational utility, historic interest, natural phenomena or other unusual features which should be acquired, preserved and maintained as a part of the state park system of Kentucky. If a determination is made that any such property or interest therein should be acquired for use in the state park system, the finding of such determination by the commissioner of parks shall be conveyed in writing to the Finance and Administration Cabinet. Such written notification shall apprise the Finance and Administration Cabinet of the interest sought to be acquired and shall serve as a request that the Finance and Administration Cabinet proceed, pursuant to the powers vested in the Finance and Administration Cabinet by KRS Chapters 42, 45 and 56, to acquire the property or interest therein sought for use of the Department of Parks.

History. Enact. Acts 1968, ch. 126, § 2; 1974, ch. 74, Art. II, § 9(1).

148.029. Recreation areas designated wildlife sanctuaries — Wildlife protected — Permits for scientific collecting — Duties of department.

  1. All areas controlled by the Department of Parks and designated as camping, hiking, or other family-oriented recreation areas are designated wildlife sanctuaries for the purpose of affording protection to the wildlife thereon as natural, integrated, interrelated, ecological communities.
  2. No unauthorized person shall enter a wildlife sanctuary and take, damage, injure, kill, destroy, or unduly disturb the wildlife therein except as provided in this section.
  3. The department may issue to any person a permit for the scientific collection of wildlife provided the applicant for such permit holds a current state scientific collecting permit issued by the Department of Fish and Wildlife Resources.
  4. This section does not apply to fish taken pursuant to KRS Chapter 150 and all rules and regulations promulgated by the Department of Parks and the Department of Fish and Wildlife Resources.
  5. The department may authorize the Department of Fish and Wildlife Resources to administer a wildlife management plan that may include the implementation of any management method provided in KRS Chapter 150 in the course of operating and administering the parks; and in so doing shall consider the ecological impact on the sanctuary as a whole.

History. Enact. Acts 1972, ch. 189, § 2(1) to (5); 2000, ch. 87, § 1, effective July 14, 2000.

148.030. Financing acquisition and improvement of parks; revenue bonds; uniting parks in one bond issue; operating expenses; operation by management corporation. [Repealed.]

Compiler’s Notes.

This section (3766d-3b: amend. Acts 1948, ch. 227) was repealed by Acts 1964, ch. 157, § 18. A portion of this section was previously repealed by Acts 1964, ch. 7, § 12.

148.031. Manner of payment of cost of acquisition and construction — Revenue bonds.

  1. The cost of acquiring parks and constructing improvements and facilities therein and equipping same may be defrayed by funds received from general expenditure fund appropriations, gifts, the use of money received as fees and charges for the use of said parks and facilities, or by the issuance of revenue bonds, or by a combination of such sources of funds.
  2. In the event revenue bonds are issued to defray all or any part of such costs, said revenue bonds shall be issued pursuant to the terms of KRS 58.010 to 58.140 .
  3. The Department of Parks may unite into one (1) project for financing purposes all or as many parks, and the improvements therein, or to be constructed, enlarged or improved, as it deems practicable, so that the fees and charges and other revenue or receipts from every source whatsoever from the parks thus united shall be used for the payment of the principal and interest of all bonds which may be issued. Such united receipts shall continue until all bonds issued have been paid in full. The lien of the bonds for such united project shall be a lien upon the gross income and revenue of all parks thus united into a project.
  4. All parks in which improvements and facilities are constructed and equipped by the issuance of revenue bonds shall be maintained and operated by the Department of Parks until the bonds are paid, and the cost of operation and maintenance shall be paid out of appropriations and receipts received by the Department of Parks.

History. Enact. Acts 1964, ch. 157, § 11.

NOTES TO DECISIONS

1.Revenue Bonds.

Though law that provided for financing, acquisition and improvement of parks gave the division of parks (now Department of Parks) authority to finance acquisition and improvement of park property by issuing revenue bonds pursuant to KRS ch. 58, the State Property and Buildings Commission was also given the same authority under the later provisions of KRS ch. 56 which in effect provided an alternate procedure for financing by means of revenue bonds. Kentucky Lake Vacation Land, Inc. v. State Property & Bldgs. Com., 333 S.W.2d 779, 1960 Ky. LEXIS 212 ( Ky. 1960 ) (decided under prior law).

Research References and Practice Aids

Cross-References.

State Property and Buildings Commission to control capital outlay projects, KRS 56.460 to 56.550 .

148.040. Regulations for parks; accounting system. [Repealed.]

Compiler’s Notes.

This section (3766d-3c: amend. Acts 1948, ch. 227) was repealed by Acts 1964, ch. 157, § 18.

148.041. Regulations — Accounting system.

The department shall adopt regulations necessary for the operation, maintenance and use of state parks. These regulations shall include the setting up of an accounting system to properly show the receipts and expenditures of the parks operated by the department, and shall provide for the setting aside and pledging of sufficient revenue to secure the payment of all bonds and the interest thereon which may be issued.

History. Enact. Acts 1964, ch. 157, § 4.

148.050. Rules to be posted and obeyed. [Repealed.]

Compiler’s Notes.

This section (3766d-4) was repealed by Acts 1964, ch. 157, § 18.

148.051. Regulations to be posted.

  1. All regulations adopted by the department for the purpose of protecting and maintaining the property under the control of the department and devoted to public park purposes, shall be printed and posted at the main entrance to the parks and at three (3) or more public places within the park.
  2. All persons using, occupying or going upon any property held by or controlled by the Department of Parks shall comply with all the regulations made by the department.

History. Enact. Acts 1964, ch. 157, § 5.

Research References and Practice Aids

Cross-References.

Injury of flora or scattering of debris in parks prohibited, KRS 433.750 .

148.055. Commissioning park custodians and employes as peace officers. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 205, § 1) was repealed by Acts 1964, ch. 157, § 18.

148.056. Commissioner of parks may commission park rangers — Powers as peace officers.

  1. The commissioner of parks, in his discretion, may employ and commission park rangers as the commissioner deems necessary to secure the parks and property of the Department of Parks and to maintain law and order and such employees, when so commissioned, shall have all of the powers of peace officers and shall have on all parks property and on public highways transversing such property in all parts of the state the same powers with respect to criminal matters and enforcement of the laws relating thereto as sheriffs, constables and police officers in their respective jurisdictions, and shall possess all the immunities and matters of defense now available or hereafter made available to sheriffs, constables and police officers in any suit brought against them in consequence of acts done in the course of their employment.
  2. The designation of any such employee as a peace officer shall be governed by the provisions of KRS 61.300 except that he shall not be required to have resided in the county wherein he is to serve for a period of at least two (2) years, and he shall be required to file his photograph and affidavit only with the Franklin county clerk.
  3. Any employee so commissioned shall be required to execute bond, subject to the provisions of KRS 62.170 , for the faithful and lawful performance of his duties.

History. Enact. Acts 1964, ch. 157, § 6; 1972, ch. 217, § 1; 1980, ch. 188, § 111, effective July 15, 1980; 1980, ch. 295, § 23, effective July 15, 1980; 1982, ch. 343, § 21, effective July 15, 1982.

NOTES TO DECISIONS

1.Improper Stop.

Where park ranger stopped defendant approximately four miles outside the park, and where ranger was not in hot pursuit of someone who had committed a crime within the park nor did exigent circumstances exist, the stop occurred outside the park ranger’s jurisdiction and was, therefore, improper. Churchwell v. Commonwealth, 843 S.W.2d 336, 1992 Ky. App. LEXIS 213 (Ky. Ct. App. 1992).

Opinions of Attorney General.

The only limitations imposed on the powers and duties of park rangers are those set out in KRS 16.120 (repealed) in the same manner as an officer of the state police, pursuant to KRS 16.060 , who have for a number of years carried concealed deadly weapons on and off duty throughout the Commonwealth, except in those cities which have specifically excluded them from jurisdiction, so that duly sworn park rangers may carry concealed weapons on or off park property and need not be on duty or in uniform. (To the extent this opinion differs from OAG 89-28 concerning the jurisdiction of a park ranger, it is modified accordingly.) OAG 73-210 .

Since park rangers have jurisdiction in all parts of the State, the rangers could patrol state and county roads adjacent to park property. (To the extent this opinion differs from OAG 89-28 concerning the jurisdiction of a park ranger, it is modified accordingly.) OAG 77-566 .

The Legislature has limited the jurisdiction and authority of a park ranger, as a peace officer, to all parks property in the state and public highways transversing such property; an exception to this limitation would be a hot pursuit situation where the park ranger is in pursuit of a person fleeing the park who has committed a violation of law within the powers of the park ranger to enforce; to the extent that prior opinions of this office, OAG 73-210 and OAG 77-566 (which preceded the 1982 amendment to this section), differ from this opinion concerning the jurisdiction of a park ranger, they are hereby modified accordingly. OAG 89-28 .

Research References and Practice Aids

Cross-References.

Bonds of state employees, KRS 62.170 .

148.060. Department may condemn lands; contracts in name of Commonwealth. [Repealed.]

Compiler’s Notes.

This section (3766e-26) was repealed by Acts 1964, ch. 157, § 18.

148.061. Acquisition of property by condemnation; titles, approval. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1964, ch. 157, § 9) was repealed by Acts 1968, ch. 126, § 3.

148.066. Acceptance of park property — Title — Use.

  1. The Department of Parks shall accept for the state any real estate or personal property conveyed or dedicated for public park purposes to the state or to the department or to its predecessor, but the department is not compelled to accept any such property if it deems it unwise to do so.
  2. The title to all property that has been, or shall be, acquired by the Commonwealth or its agency for public park purposes shall be vested in the Commonwealth. Such property shall be managed, maintained, and improved by the Department of Parks for public park purposes.

History. Enact. Acts 1964, ch. 157, § 8.

NOTES TO DECISIONS

1.Title.

Commonwealth and decedent’s heirs held land as tenants in common where decedent, who had offered to dedicate his interest to Commonwealth for a park on condition his sister who was his cotenant would also dedicate her interest to Commonwealth for a park, died prior to conveying his interest but his sister after her brother’s death conveyed her interest to the Commonwealth. Givens v. Commonwealth, 244 S.W.2d 740, 1951 Ky. LEXIS 1236 ( Ky. 1951 ) (decided under prior law).

2.Taking Land Without Compensation.

Kentucky State Park Commission (now Department of Parks) was suable for taking land for public use as state park without just or any compensation; action being against state agency for wrongful taking of property in violation of Ky. Const., §§ 13 and 242. Kentucky State Park Com. v. Wilder, 256 Ky. 313 , 76 S.W.2d 4, 1934 Ky. LEXIS 401 ( Ky. 1934 ); aff’d, Kentucky State Park Com. v. Wilder, 260 Ky. 190 , 84 S.W.2d 38, 1935 Ky. LEXIS 437 ( Ky. 1935 ) (decided under prior law).

Although action against park commission by persons claiming an undivided interest in lands theretofore conveyed to state for park purposes, for sale of such indivisible land and distribution of proceeds, would have been, in effect, action against state, and hence not maintainable, appropriate action would have lain against state for damages because of its taking, injuring or destroying private property for public purposes. Kentucky State Park Com. v. Wilder, 256 Ky. 313 , 76 S.W.2d 4, 1934 Ky. LEXIS 401 ( Ky. 1934 ), aff’d, Kentucky State Park Com. v. Wilder, 260 Ky. 190 , 84 S.W.2d 38, 1935 Ky. LEXIS 437 ( Ky. 1935 ) (decided under prior law).

Opinions of Attorney General.

The Commonwealth of Kentucky has the authority to lease out of state lands for park purposes from the United States Corps of Engineers. OAG 70-328 .

Research References and Practice Aids

Cross-References.

Attorney general to inspect abstracts of lands paid for by state funds, KRS 56.040 .

State agencies to acquire or dispose of land, powers limited, KRS 56.500 .

Titles to be in name of Commonwealth, KRS 56.030 .

148.070. Attorney General to institute condemnation proceedings. [Repealed.]

Compiler’s Notes.

This section (3766e-27, 3766e-28) was repealed by Acts 1964, ch. 157, § 18.

148.071. Attorney General to prosecute condemnation suits; parties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1964, ch. 157, § 10) was repealed by Acts 1968, ch. 126, § 3.

148.080. My Old Kentucky Home. [Repealed.]

Compiler’s Notes.

This section (2739f-4) was repealed by Acts 1964, ch. 157, § 18.

148.085. Boonesboro State Park. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956, ch. 104, §§ 1, 2) was repealed by Acts 1964, ch. 157, § 18.

148.090. Kentucky National Park Commission; powers. [Repealed.]

Compiler’s Notes.

This section (3766e-1, 3766e-11, 4618-124) was repealed by Acts 1960, ch. 68, Art. X, § 7.

148.100. Membership and organization of National Park Commission. [Repealed.]

Compiler’s Notes.

This section (3766e-2) was repealed by Acts 1960, ch. 68, Art. X, § 7.

148.110. Parks Board to acquire lands and convey them to United States. [Repealed.]

Compiler’s Notes.

This section (3766e-3) was repealed by Acts 1964, ch. 157, § 18.

148.111. State Property and Buildings Commission to promote national parks — Agreements — Powers.

The State Property and Buildings Commission is hereby authorized and directed to further the establishment of national parks in such areas in Kentucky as the Congress of the United States designates. To accomplish that purpose, the commission may enter into agreements with the United States relating to the survey, location, and conveyance of property acquired by the commission for that purpose. It may fully cooperate with the United States and do all necessary acts to provide for the establishment of national parks under such terms as are provided by any relative Act of Congress. To accomplish this end the commission shall acquire land, caves, cave rights, leasehold interests, money and other property for public park purposes and to convey them to the United States for the establishment of national parks. The commission may do such other acts necessary to promote and accomplish its purpose. The acts of the commission shall be the acts of the state.

History. Enact. Acts 1964, ch. 157, § 13.

NOTES TO DECISIONS

1.Action for Possession.

National Park Commission (now State Property and Building Commission), after conveying park property to the United States, could have still maintained forcible detainer action in its own name against original vendor of property who had reserved right of possession until conveyance to the United States. Demunbrun v. Kentucky Nat'l Park Com., 278 Ky. 521 , 128 S.W.2d 963, 1939 Ky. LEXIS 459 ( Ky. 1939 ). (decided under prior law)

2.Right to Contest Tax Lien.

Commission (now State Property and Buildings Commission) having acquired in January, 1932 from Mammoth Cave Development Company land which was subject to July 1, 1931 lien for taxes, on joining its vendor as party, could have attacked the lien or assessment on which it was based, and contended that increase in assessed valuation made in February, 1932 was void as against it for want of notice to it and its vendor. Kentucky Nat'l Park Ass'n v. Reed, 250 Ky. 525 , 63 S.W.2d 614, 1933 Ky. LEXIS 735 ( Ky. 1933 ) (decided under prior law).

148.120. Parks Board may condemn property. [Repealed.]

Compiler’s Notes.

This section (3766e-4, 3766e-5, 3766e-10: amend. Acts 1944, ch. 22) was repealed by Acts 1964, ch. 157, § 18.

148.121. Condemnation of land designated by United States for parks — Procedure.

  1. The commission may condemn any land or any interest in land within areas designated by the United States for park sites. Condemnation proceedings shall be exercised in accordance with the Eminent Domain Act of Kentucky. No condemnation proceedings shall impose on the state any liability for which provision has not previously been made. The commission shall also pay the expenses of condemnation proceedings, judgments and awards in condemnation proceedings, and other expenses necessary to acquire property.
  2. The action shall be brought in the Circuit Court where the property lies by the Attorney General, and the county attorney of that county at the direction of the Attorney General shall assist in the prosecution of said action.
  3. It shall not be mandatory for the commission to take the property at the price fixed by the jury or court judgment. However, in case the commission does not take the property, and perform all requirements of the judgment rendered by the court, then and in that event said commission shall pay the property owner all expenses as he may have incurred incident to the law suit, including attorney’s fees, and the property owner may have judgment in the original action upon filing proper proof thereof with the court.

History. Enact. Acts 1964, ch. 157, § 14; 1976 (Ex. Sess.), ch. 14, § 160, effective January 2, 1978.

NOTES TO DECISIONS

1.Construction.

Law that provided that land could be condemned for park sites and that such condemnation did not impose any liability on state for which provision had not previously been made merely declared when the Commonwealth would have been liable and not when commission might institute actions. J. F. Schneider & Son, Inc. v. Watt, 252 S.W.2d 898, 1952 Ky. LEXIS 1040 ( Ky. 1952 ) (decided under prior law).

2.Application.

Law that provided that it was not mandatory for the commission to take the property at the price fixed by the jury or court judgment granted relief only after an award and judgment and after the condemnor refused to take the property at the price fixed in the judgment. J. F. Schneider & Son, Inc. v. Watt, 252 S.W.2d 898, 1952 Ky. LEXIS 1040 ( Ky. 1952 ) (decided under prior law).

3.Action by United States.

Where condemnation proceedings were brought by the United States at the formal request of the commission, the provisions of law that condemnation proceedings be brought in county where property lies were not applicable. J. F. Schneider & Son, Inc. v. Watt, 252 S.W.2d 898, 1952 Ky. LEXIS 1040 ( Ky. 1952 ) (decided under prior law).

Research References and Practice Aids

Cross-References.

Department of Fish and Wildlife Resources may condemn property, KRS 150.024 .

Eminent Domain Act, KRS 416.540 to 416.680 .

148.130. Parks Board may receive donations and collect subscriptions. [Repealed.]

Compiler’s Notes.

This section (3766e-6) was repealed by Acts 1964, ch. 157, § 18.

148.131. Commission may accept property for national park purposes.

The commission may receive by gift or purchase and hold any property or money for the purpose of establishing national parks, and may use such gifts in the purchase of real estate interests therein needed for proposed national parks. It may also dispose of any property so accepted by it, and use the proceeds or consideration received, in the acquisition of other real estate for national park purposes. The commission may also take over assets assigned to it by any private corporation formed and conducted for the purpose of acquiring and establishing national parks. The commission may collect any delinquent contributions or subscriptions or other obligations turned over to it, whether they have been made directly to the commission or acquired by assignment to it.

History. Enact. Acts 1964, ch. 157, § 15.

Research References and Practice Aids

Cross-References.

Commonwealth to be named as grantee, KRS 56.030 .

148.140. Conveyances to the United States. [Repealed.]

Compiler’s Notes.

This section (3766e-7) was repealed by Acts 1964, ch. 157, § 18.

148.141. Conveyances to the United States, conditions.

Conveyances to the United States shall be made on the condition that the government of the United States administer, protect and develop the property for national park purposes, in accordance with federal laws regulating national parks.

History. Enact. Acts 1964, ch. 157, § 16.

NOTES TO DECISIONS

1.Right of Possession.

National Park Commission (now State Property and Buildings Commission) after conveying park property to the United States, could still maintain forcible detainer action in its own name against original vendor of property who had reserved right of possession until conveyance to the United States. Demunbrun v. Kentucky Nat'l Park Com., 278 Ky. 521 , 128 S.W.2d 963, 1939 Ky. LEXIS 459 ( Ky. 1939 ) (decided under prior law).

Research References and Practice Aids

Cross-References.

Grant to United States of lands and rights to acquire, KRS ch. 3.

148.150. Parks Board may adopt regulations. [Repealed.]

Compiler’s Notes.

This section (3766e-8) was repealed by Acts 1964, ch. 157, § 18.

148.151. Regulations for handling national park property.

The commission may adopt and enforce lawful regulations for the proper administration and disposition of any property to which it may acquire title or over which it may gain control previous to the conveyance thereof to the United States.

History. Enact. Acts 1964, ch. 157, § 17.

Research References and Practice Aids

Cross-References.

Injury of flora or scattering of debris in parks prohibited, KRS 433.750 .

148.160. Condemnation of land by association for memorial purposes. [Repealed.]

Compiler’s Notes.

This section (2739d-1) was repealed by Acts 1964, ch. 157, § 18.

148.161. Civil War cemeteries, maintenance, acquisition by department — Expenditures limited.

  1. Upon the request of the public body or private entity owning or controlling a Civil War cemetery, the Department of Parks may, as to a cemetery other than those mentioned in subsection (2) of this section, maintain a cemetery in an appropriate manner and may take title in the name of the Commonwealth to such cemetery by a deed of conveyance, subject to the appropriate sections of KRS Chapters 45 and 56. As used herein, the term, “Civil War cemetery” means a cemetery, or separate part of a cemetery, in which twenty-five (25) or more soldiers who fought in the war between the states are interred.
  2. The Department of Parks shall maintain or take title to any of the following cemeteries upon formal request of the owning or controlling entity:

    Pewee Valley Confederate Cemetery, Oldham County.

    Goodnight Farm Confederate Cemetery, Boyle County.

    Zollicoffer Park Confederate Cemetery, Pulaski County.

    Camp Beauregard Cemetery, Graves County.

  3. Expenditures by the Department of Parks for the purposes of this section shall not exceed twelve hundred dollars ($1,200) annually.

History. Enact. Acts 1968, ch. 18, §§ 1 to 3.

148.163. Title to and maintenance of covered wooden bridges. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1976, ch. 170, § 4; 1978, ch. 284, § 1) was repealed by Acts 1980, ch. 323, § 3, effective July 15, 1980.

148.170. Appropriations by counties to World War memorial. [Repealed.]

Compiler’s Notes.

This section (2739d-2) was repealed by Acts 1964, ch. 157, § 18.

148.171. State aid for establishment of county and city parks, limits — Use of funds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1968, ch. 79, §§ 1 to 3; 1978, ch. 384, § 565, effective June 17, 1978) was repealed by Acts 1982, ch. 162, § 2, effective July 15, 1982.

148.180. Acquisition of Simon Bolivar Buckner Farm for state park; appropriation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1944, ch. 91) was repealed by Acts 1964, ch. 157, § 18.

148.190. Acquisition of Francis Berry house for removal to Lincoln Homestead Park; appropriation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1944, ch. 137) was repealed by Acts 1964, ch. 157, § 18.

148.200. Maintenance of grounds of Old State Capitol. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 41, §§ 1-3; 1950, ch. 193) was repealed by Acts 1960, ch. 68, Art. X, § 7.

148.210. Old Governor’s Mansion, restoration and use as museum. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 195) was repealed by Acts 1956, ch. 24, § 1.

148.220. Compact with Virginia for Breaks Interstate Park.

History. Enact. Acts 1954, ch. 82, § 1; 1964, ch. 98, § 1; 1994, ch. 22, § 1, effective July 15, 1994.

The Governor is hereby authorized and directed to execute, on behalf of the Commonwealth of Kentucky, the following compact with the Commonwealth of Virginia which is hereby approved, ratified and enacted into law:

BREAKS INTERSTATE PARK COMPACT

Pursuant to authority granted by an Act of the 83rd Congress of the United States, being Public Law 275, approved August 14, 1953, the Commonwealth of Kentucky and the Commonwealth of Virginia do hereby covenant and agree as follows:

ARTICLE I.

The Commonwealth of Kentucky and the Commonwealth of Virginia agree to create, develop and operate an interstate park to be known as The Breaks Interstate Park, which shall be located along the Russell Fork of the Levisa Fork of the Big Sandy River and on adjacent areas in Pike County, Kentucky, and Dickenson and Buchanan counties, Virginia. Said park shall be of such area and of such character as may be determined by the commission created by this compact.

ARTICLE II.

There is hereby created The Breaks Interstate Park Commission, which shall be a body corporate with the powers and duties set forth herein and such additional powers as may be conferred upon it by subsequent action of the appropriate authorities of Kentucky and Virginia. The commission shall consist of the Director of the Virginia Department of Conservation and Recreation or his designee and the Commissioner of the Kentucky Department of Parks or his designee as voting, ex officio members and three commissioners from each of the two states, each of whom shall be a citizen of the state he shall represent. Members of the commission shall be appointed by the Governor. Vacancies shall be filled by the Governor for the unexpired term. The term of the commissioners appointed by the Governor shall be for four years. Each commissioner shall hold office until his successor is appointed and qualified. An officer or employee of the state, a political subdivision or the United States government may be appointed a commissioner under this compact.

ARTICLE III.

The commission created herein shall be a joint corporate instrumentality of both the Commonwealth of Kentucky and the Commonwealth of Virginia for the purpose of effecting the objects of this compact, and shall be deemed to be performing governmental functions of the two states in the performance of its duties hereunder. The commission shall have power to sue and be sued, to contract and be contracted with, to use a common seal and to make and adopt suitable bylaws, rules and regulations. The commission shall have the authority to acquire by gift, purchase or otherwise real estate and other property, and to dispose of such real estate and other property. Each Commonwealth agrees that it will authorize the commission to exercise the right of eminent domain to acquire property located within each Commonwealth required by the commission to effectuate the purposes of this compact.

ARTICLE IV.

The commission shall select from among its members a chairman and a vice chairman, and may select from among its members a secretary and treasurer or may designate other persons to fill these positions. It may appoint, and at its pleasure remove or discharge, such officers and legal, clerical, expert and other assistants and employees as may be required to carry the provisions of this compact into effect, and shall fix and determine their duties, qualifications and compensation. It may establish and maintain one or more offices for the transaction of its business, and may meet at any time or place. A majority of the commissioners present shall constitute a quorum for the transaction of business. The commissioners shall serve without compensation, but shall be paid their expenses incurred in and incident to the performance of their duties. They shall take the oath of office required of officers of their respective states.

ARTICLE V.

Each Commonwealth agrees that the officers and departments of each will be authorized to do all things falling within their respective jurisdictions necessary or incidental to the carrying out of the compact in every particular. The commission shall be entitled to the services of any state officer or agency in the same manner as any other department or agency of this state. The commission shall keep accurate records, showing in full its receipts and disbursements, and said records shall be open at any reasonable time to the inspection of such representatives of the two Commonwealths as may be duly constituted for that purpose. The commission shall submit annually and at other times as required such reports as may be required by the laws of each Commonwealth or by the Governor thereof.

ARTICLE VI.

The cost of acquiring land and other property required in the development and operation of The Breaks Interstate Park and constructing, maintaining and operating improvements and facilities therein and equipping same may be defrayed by funds received from appropriations, gifts, the use of money received as fees or charges for the use of said park and facilities, or by the issuance of revenue bonds, or by a combination of such sources of funds. The commission may charge for admission to said park, or make other charges deemed appropriate by it and shall have the use of funds so received for park purposes. The commission is authorized to issue revenue bonds, which shall not be obligations of either state, pursuant to procedures which shall be in substantial compliance with the provisions of laws of either or both states governing the issuance of revenue bonds by governmental agencies.

ARTICLE VII.

All money, securities and other property, real and personal, received by way of gift or otherwise or revenue received from its operations may be retained by the commission and used for the development, maintenance and operation of the Park or for other Park purposes.

The commission shall not pledge the credit of either Commonwealth except by and with the authority of the General Assembly thereof.

ARTICLE VIII.

This compact may be amended from time to time by the concurrent action of the two Commonwealth parties hereto.

Legislative Research Commission Note.

(8/16/95). The Commonwealth of Virginia approved changes in the Breaks Interstate Park Compact that were substantially the same as those adopted in 1994 Ky. Acts ch. 22. See Virginia Acts of Assembly, 1994 Session, Chapter 622 (approved April 10, 1994, effective upon approval of same amendments by the Commonwealth of Kentucky). Thus, pursuant to 1994 Ky. Acts ch. 22, sec. 3, the 1994 amendment of this statute became effective July 15, 1994, the normal effective date for legislation enacted during the 1994 Regular Session of the Kentucky General Assembly.

148.225. Lieutenant Governor to be member of board.

One (1) of the four (4) members of the Breaks Interstate Park Commission appointed by the Governor pursuant to Article II of the compact set forth in KRS 148.220 shall be the Lieutenant Governor.

History. Enact. Acts 1980, ch. 141, § 10, effective July 15, 1980; 1994, ch. 22, § 2, effective July 15, 1994.

Legislative Research Commission Note.

(8/16/95). The Commonwealth of Virginia approved changes in the Breaks Interstate Park Compact that were substantially the same as those adopted in 1994 Ky. Acts ch. 22. See Virginia Acts of Assembly, 1994 Session, Chapter 622 (approved April 10, 1994, effective upon approval of same amendments by the Commonwealth of Kentucky). Thus, pursuant to 1994 Ky. Acts ch. 22, sec. 3, the 1994 amendment of this statute became effective July 15, 1994, the normal effective date for legislation enacted during the 1994 Regular Session of the Kentucky General Assembly.

148.230. State agencies to cooperate with Breaks Interstate Park Commission — Powers of State Property and Buildings Commission.

  1. All governmental agencies of the Commonwealth of Kentucky are authorized to cooperate with the Breaks Interstate Park Commission created by the compact approved by KRS 148.220 , it being the policy of this Commonwealth to perform and carry out the compact and to accomplish the purposes thereof.
  2. The Finance and Administration Cabinet is authorized to allot funds appropriated by the General Assembly and the State Property and Buildings Commission is authorized to make appropriations to the Breaks Interstate Park Commission for the same purposes it is authorized to make expenditures for other state agencies. Either the State Property and Buildings Commission or the Breaks Interstate Park Commission may exercise the right of eminent domain on behalf of the Commonwealth of Kentucky in acquiring land or other property required in the establishment or enlargement of the Breaks Interstate Park.

History. Enact. Acts 1954, ch. 82, § 2; 1964, ch. 98, § 2; 1964, ch. 157, § 18; 1968, ch. 152, § 111; 1974, ch. 74, Art. II, §§ 9(1).

148.231. State agencies to cooperate with Breaks Interstate Park Commission, powers of agencies. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1964, ch. 157, § 12) was repealed by Acts 1968, ch. 152, § 168.

148.235. Breaks Interstate Park Commission may condemn land — Conveyances by state to commission.

The Breaks Interstate Park Commission may acquire by condemnation in the manner provided in the Eminent Domain Act of Kentucky such lands lying within this state as may be necessary to be acquired for purposes of the Breaks Interstate Park. Deeds to land in this state comprising the Breaks Interstate Park shall be in the name of the Breaks Interstate Park Commission, KRS 56.030 notwithstanding. Subject to the approval of the Governor, the State Property and Buildings Commission is hereby empowered to convey by deed to the Breaks Interstate Park Commission all right, title and interest of the Commonwealth in and to all real property now held in behalf of this Commonwealth and comprising the Breaks Interstate Park.

History. Enact. Acts 1964, ch. 99; 1976, ch. 140, § 64.

Research References and Practice Aids

Cross-References.

Eminent Domain Act of Kentucky, KRS 416.540 to 416.680 .

148.240. Statue of Alben W. Barkley. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 79, §§ 1, 2) was repealed by Acts 1964, ch. 157, § 18.

148.241. Compact for Falls of the Ohio Interstate Park.

The Falls of the Ohio Interstate Park Compact is hereby enacted into law and entered into by this state with the state of Indiana, in the form substantially as follows:

History. Enact. Acts 1968, ch. 8, § 1.

FALLS OF THE OHIO INTERSTATE PARK COMPACT

ARTICLE I.

The State of Indiana and the Commonwealth of Kentucky agree to create, develop and operate an interstate park to be known as Falls of the Ohio Interstate Park, which shall be located along the Ohio River at the Falls of the Ohio and on adjacent areas in Clark and Floyd Counties, Indiana, and Jefferson County, Kentucky. Said park shall be of such area and of such character as may be determined by the commission created by this compact.

ARTICLE II.

There is hereby created The Falls of the Ohio Interstate Park Commission, which shall be a body corporate with the powers and duties set forth herein and such additional powers as may be conferred upon it by subsequent action of the appropriate authorities of Indiana and Kentucky. The commission shall consist of three commissioners from each of the two states, each of whom shall be a citizen of the state he shall represent. Members of the commission shall be appointed by the Governor. Vacancies shall be filled by the Governor for the unexpired term. The term of one of the first commissioners appointed shall be for two years, the term of another for three years, and the term of the third for four years. Their successors shall be appointed for terms of four years each. Each commissioner shall hold office until his successor is appointed and qualified. An officer or employee of the state, a political subdivision or the United States government may be appointed a commissioner under this compact.

ARTICLE III.

The commission created herein shall be a joint corporate instrumentality of both the State of Indiana and the Commonwealth of Kentucky for the purpose of effecting the objects of this compact, and shall be deemed to be performing governmental functions of the two states in the performance of its duties hereunder. The commission shall have power to sue and be sued, to contract and be contracted with, to use a common seal and to make and adopt suitable bylaws, rules and regulations. The commission shall have the authority to acquire by gift, purchase or otherwise real estate and other property, and to dispose of such real estate and other property. Each state agrees that it will exercise the right of eminent domain to acquire property located within each state required by the commission to effectuate the purposes of this compact.

ARTICLE IV.

The commission shall select from among its members a chairman and a vice chairman, and may select from among its members a secretary and treasurer or may designate other persons to fill these positions. It may appoint, and at its pleasure remove or discharge, such officers and legal, clerical, expert and other assistants and employees as may be required to carry the provisions of this compact into effect, and shall fix and determine their duties, qualifications and compensation. It may establish and maintain one or more offices for the transaction of its business, and may meet at any time or place. A majority of the commissioners present shall constitute a quorum for the transaction of business. The commissioners shall serve without compensation, but shall be paid their expenses incurred in and incident to the performance of their duties. They shall take the oath of office required of officers of their respective states.

ARTICLE V.

Each state agrees that the officers and departments of each will be authorized to do all things falling within their respective jurisdictions necessary or incidental to the carrying out of the compact in every particular. The commission shall be entitled to the services of any state officer or agency in the same manner as any other department or agency of this state. The commission shall keep accurate records, showing in full its receipts and disbursements, and said records shall be open at any reasonable time to the inspection of such representative of the two states as may be duly constituted for that purpose. The commission shall submit annually and at other times as required such reports as may be required by the laws of each state or by the Governor thereof.

ARTICLE VI.

The cost of acquiring land and other property required in the development and operation of the Falls of the Ohio Interstate Park and constructing, maintaining and operating improvements and facilities therein and equipping same may be defrayed by funds received from appropriations, gifts, the use of money received as fees or charges for the use of said park and facilities, or by the issuance of revenue bonds, or by a combination of such sources of funds. The commission may charge for admission to said park, or make other charges deemed appropriate by it and shall have the use of funds so received for park purposes. The commission is authorized to issue revenue bonds, which shall not be obligations of either state, pursuant to procedures which shall be in substantial compliance with the provisions of laws of either or both states governing the issuance of revenue bonds by governmental agencies.

ARTICLE VII.

All money, securities and other property, real and personal, received by way of gift or otherwise or revenue received from its operations may be retained by the commission and used for the development, maintenance and operation of the park or for other park purposes.

The commission shall not pledge the credit of either state except by and with the authority of the General Assembly thereof.

ARTICLE VIII.

This compact may be amended from time to time by the concurrent action of the two states parties hereto.

The compact approved herein shall become effective upon ratification and approval of the compact by the General Assembly of the State of Indiana and upon approval of this compact by the Congress of the United States.

148.242. Lieutenant Governor to be member of board.

One (1) of the three (3) members of the Falls of the Ohio Interstate Park Commission appointed by the Governor pursuant to Article II of the compact set forth in KRS 148.241 shall be the Lieutenant Governor.

History. Enact. Acts 1980, ch. 141, § 10, effective July 15, 1980.

148.250. Thoroughbred State Park.

There may be a state park at a site to be selected by the commissioner of parks in Fayette County, Kentucky, which park shall be known as Thoroughbred State Park. It shall be developed for recreational and educational purposes, in commemoration of the influence of the Thoroughbred horse industry on the history and traditions of the Commonwealth. It shall include restaurant facilities for visitors and a museum of the Thoroughbred industry.

History. Enact. Acts 1970, ch. 179, § 1.

Legislative Research Commission Note.

(2005) Acts 1970, ch. 179, §§ 2, 3 provide for a site selection committee which shall report its recommendations to the commissioner of parks by July 1, 1971, and for the acquisition of property necessary to construct and equip the facility.

148.255. Legislative approval required for disposal of certain park property.

No interest in real property that is located in a county containing a consolidated local government and that is owned by the Commonwealth and managed by the Kentucky Department of Parks and having a value greater than four hundred thousand dollars ($400,000) shall be sold, traded, or otherwise disposed of without prior authorization by the General Assembly.

History. Enact. Acts 2005, ch. 145, § 1, effective June 20, 2005.

Legislative Research Commission Note.

(6/20/2005). Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section.

148.257. Interim state employees designated as craftspersons — Permission to sell.

  1. Notwithstanding KRS 11A.020 , 11A.040 , and 45A.340 , or any other law to the contrary, the commissioner may designate as a craftsperson any interim state employee whose duties consist primarily of craft-making demonstrations and who has been juried by a craft jury.
  2. Persons designated as craftspersons under subsection (1) of this section may sell craft products to gift shops operated by the Department of Parks, provided that the products are made from materials that have not been purchased with state funds.

History. Enact. Acts 2006, ch. 68, § 3, effective July 12, 2006.

Kentucky Horse Park Commission

148.258. Definition.

As used in KRS 148.260 to 148.320 the term “commission” shall mean the “Kentucky Horse Park Commission” unless the context clearly indicates otherwise.

History. Enact. Acts 1986, ch. 96, § 1, effective July 15, 1986.

148.260. Kentucky Horse Park Commission — Members — Terms — Meetings — Reimbursement for expenses — Bylaws — Advisory committee.

  1. There is hereby created and established an agency of state government to be known as the Kentucky Horse Park Commission, which shall constitute a separate administrative body of state government within the meaning of KRS 12.010(8) and under the provisions of KRS 12.015 shall be attached to the Tourism, Arts and Heritage Cabinet for administrative purposes.
  2. The commission shall be composed of the following fifteen (15) members:
    1. Thirteen (13) members appointed by the Governor who possess the ability to provide broad management expertise and direction in the operation of the Kentucky Horse Park and , to the extent possible, represent the diverse interests of the Kentucky horse industry, four (4) or more of whom represent the equine industry and four (4) or more of whom are active in industry, tourism, or commerce. The members of the commission appointed under this paragraph shall serve for a term of four (4) years, except that initial appointments shall be as follows:
      1. Four (4) members shall serve for a term of two (2) years;
      2. Five (5) members shall serve for a term of three (3) years; and
      3. Four (4) members shall serve for a term of four (4) years; and
    2. The secretary of the Cabinet for Economic Development and the secretary of the Tourism, Arts and Heritage Cabinet, who shall serve as ex officio members with full voting rights.
  3. The Governor shall designate one (1) member of the commission to serve as chairperson and one (1) member of the commission to serve as vice chairperson, both of whom shall serve at the pleasure of the Governor. The vice chairperson shall preside over meetings in the absence of the chairperson.
  4. The commission shall meet quarterly, and the chairperson shall preside over the meetings. The chairperson may call special meetings of the commission upon a request of the majority of the members of the commission, or upon request of the Governor.
  5. Members shall be reimbursed only for expenses incurred in the discharge of official business, subject to regulations established by the Finance and Administration Cabinet. All expenses reimbursed to members shall be paid from operating funds of the Kentucky Horse Park.
  6. The commission shall establish and maintain an office at the Kentucky State Horse Park for the transaction of its business and shall not establish any branch office. The commission may hold meetings at any other place when the convenience of the commission requires.
  7. The commission shall be authorized to adopt bylaws providing for the call of its meetings, which shall be held at least quarterly, and for its operating procedures. A quorum of the commission shall consist of eight (8) members, and a quorum of members present at any duly-called meeting may act upon any matter before it for consideration. Each member shall have one (1) vote.
  8. The Governor may establish an advisory committee to advise in the administration, development, and operation of the Kentucky Horse Park or other functions, activities, and programs provided for or authorized by KRS 148.260 to 148.320 .

HISTORY: Enact. Acts 1979 (Ex. Sess.), ch. 6, § 1, effective July 1, 1979; 1980, ch. 295, § 24, effective July 15, 1980; 1982, ch. 396, § 15, effective July 15, 1982; 1984, ch. 404, § 12, effective July 13, 1984; 1986, ch. 96, § 2, effective July 15, 1986; 1988, ch. 205, § 9; 1994, ch. 196, § 1, effective July 15, 1994; 1998, ch. 48, § 7, effective July 15, 1998; 1998, ch. 70, § 1, effective July 15, 1998; 2005, ch. 95, § 16, effective June 20, 2005; 2009, ch. 16, § 17, effective June 25, 2009; 2017 ch. 73, § 1, effective June 29, 2017.

Opinions of Attorney General.

Pursuant to KRS 12.025 (repealed), a Governor’s executive order may supersede state law in matters relating to reorganization of agencies, departments, administrative bodies, etc., where such reorganization is necessary to promote greater economy, efficiency, and improved administration in establishing more effective organizational patterns. OAG 80-399 .

Pursuant to the executive order of June, 1980 the Kentucky State Horse Park Board, now the State Horse Park Advisory Board, has no authority or control over the state department of parks personnel employed at the Kentucky State Horse Park since all authority over park employees has been transferred to the horse park management board. OAG 80-399 .

Pursuant to the reorganization accomplished by executive order of June 30, 1980 the managerial and administrative functions of the Kentucky State Horse Park Board (KSHPB) have been transferred to the Kentucky Horse Park Management Board and control of the Kentucky State Horse Park has been transferred to the management board as a function of the transfer of all statutory management authority originally placed with the KSHPB pursuant to KRS Chapter 148 by the executive order; accordingly, once the management board members have been appointed and that board is in functioning order, control of the park is to be transferred to that board. OAG 80-399 .

The Governor has the power to abolish the Kentucky State Horse Park Board as such so long as the statutory functions vested in that body are retained and transferred to another body by way of a reorganization to promote greater efficiency, economy and improved administration pursuant to KRS 12.025 (repealed). OAG 80-399 .

Where a reorganization has transferred the functions of the Kentucky State Horse Park Board so that the board as such has no further functions, termination of the board members would be “for cause” if the Governor bears the burden of proving the reorganization which results in the board member’s termination is valid and necessary. OAG 80-399 .

148.270. Corporate powers of commission — Appointment of executive director — Duties — Additional staff.

  1. The commission shall be a body corporate with usual corporate powers. Full minutes and records shall be kept of all meetings of the board and all official actions shall be recorded.
  2. The commission shall appoint an executive director, who shall hold office during its pleasure and shall devote his entire time to the duties of his office. The executive director shall be the chief administrative officer and secretary of the commission and shall provide the staff direction and coordination in implementing the program and discharging the duties of the commission. The executive director shall serve as the administrative head of the Kentucky State Horse Park, thereby overseeing daily operations of the park. The secretary shall keep a full and true record of all the proceedings of the commission, of all books and papers ordered filed by the commission, and of all orders made by the commission or approved and confirmed by it and ordered filed, and shall be responsible to it for the safe custody and preservation of all such documents in its office. All documents shall be subject to the open records provisions of KRS 61.870 to 61.884 . The commission shall designate from time to time staff persons to perform the duties of the executive director during his absence, and during the absence, the persons so designated shall possess the same powers as their principal.
  3. The commission acting through the executive director may employ such additional staff as necessary to perform the duties and exercise the powers conferred upon it by the provisions of KRS 148.260 to 148.320 .

History. Enact. Acts 1979 (Ex. Sess.), ch. 6, § 2, effective July 1, 1979; 1982, ch. 396, § 16, effective July 15, 1982; 1986, ch. 96, § 3, effective July 15, 1986.

148.280. Functions of commission — Acquisition, control, and use of property — Holding of events — Contracts.

  1. The commission:
    1. Shall have the authority and control of such property as now is under its custody and control, and of such property as may hereafter be placed under its control or transferred to it by the State Property and Buildings Commission, for any purpose mentioned in this section;
    2. May erect and repair buildings on the State Horse Park and make any and all necessary or proper improvements, and generally carry on a program of development and extension of facilities designed to accomplish the objectives defined in this section;
    3. Shall promote the progress of the state and stimulate public interest in the advancement and development of the state by providing the facilities of the State Horse Park for exhibitionary, competitive, and other events relative to various aspects of the horse industry and other functions calculated to advance and enhance the tourist industry, economy, entertainment, cultural, and educational interests of the public.
  2. The commission may take, acquire, and hold property, and all interest herein, by deed, gift, devise, bequest, lease, or by transfer from the state property so acquired in the manner provided by law.
  3. The commission may enact by administrative regulation as provided in KRS Chapter 13A, rules governing the operation, maintenance, or use of property under its custody and control.
  4. The commission may employ or contract with other persons, firms, or corporations the commission may deem necessary or desirable to accomplish its duties and functions; may fix the compensation and the terms of employment or contract of those employed or contracted with; and may assign to them duties and responsibilities the commission may determine, including the responsibility of actual operation of any or all of the facilities under the control of the commission.

History. Enact. Acts 1979 (Ex. Sess.), ch. 6, § 3, effective July 1, 1979; 1982, ch. 396, § 17, effective July 15, 1982; 1986, ch. 96, § 4, effective July 15, 1986; 1994, ch. 196, § 2, effective July 15, 1994.

148.285. Duties of commission.

The commission shall:

  1. Formulate policies and procedures as necessary to carry out the provisions of KRS 148.260 to 148.320 ;
  2. Promulgate rules and regulations as necessary to carry out the provisions of KRS 148.260 to 148.320 ;
  3. Annually provide the Governor a report by January 30 and provide the General Assembly a report by January 30 showing the status of the horse industry within the Commonwealth and recommend any action necessary to preserve and strengthen that industry; and
  4. Employ staff personnel, if any, as it may deem necessary to implement the business of the commission and the intent of KRS 148.260 to 148.320 . The commission shall fix the compensation of such employees and any employee of the commission shall be reimbursed for expenses paid or incurred in the discharge of official business when approved by the commission.

History. Enact. Acts 1986, ch. 96, § 9, effective July 15, 1986.

148.290. Policing of State Horse Park — Speed limits.

  1. The commission may enter into agreements with the law enforcement agency of any urban-county or counties in which the State Horse Park is located or in any adjacent county or with the Department of Kentucky State Police for proper policing of the State Horse Park. If authorized to do so by the commission and subject to KRS 61.300 , the executive director may commission employees of the park as patrol officers. These patrol officers shall have all the powers of peace officers upon the property of the State Horse Park and the public property and roads traversing or immediately adjacent thereto.
  2. The commission is authorized to establish by resolution speed limits governing the operation of motor vehicles on horse park property. Notice to the public of such speed limits shall be posted by signs or markings.
  3. The commission may by administrative regulation establish restrictions on the use, including the operation, parking, impoundment, and removal, of golf cart-type vehicles, all-terrain vehicles as defined by KRS 189.010(24), horse trailers, and automobiles operated on State Horse Park property. The commission may prohibit the use of all-terrain vehicles on State Horse Park property.
  4. The commission may by administrative regulation establish a permit system, including a fee schedule, for golf cart-type vehicles, require owners to purchase usage permits, and require that the usage permit be displayed on the vehicle when operated on State Horse Park property.
  5. The commission may by administrative regulation establish a trailer permit system, including a fee schedule, for horse owners participating in events but not renting stalls at the State Horse Park.

HISTORY: Enact. Acts 1979 (Ex. Sess.), ch. 6, § 4, effective July 1, 1979; 1982, ch. 396, § 18, effective July 15, 1982; 1986, ch. 96, § 5, effective July 15, 1986; 2002, ch. 330, § 1, effective July 15, 2002; 2007, ch. 85, § 161, effective June 26, 2007; 2008, ch. 22, § 1, effective July 15, 2008; 2017 ch. 73, § 2, effective June 29, 2017.

148.300. Control of activities on park grounds — Liens against exhibitors and others — Enforcement of liens.

  1. The commission shall have exclusive control of concessions, exhibitions, shows, entertainments and attractions at any place on the State Horse Park grounds, and may under the direction of the commission operate any or all of such activities, by law.
  2. The commission shall have a prior lien upon the property of any concessionaire, exhibitor or person, immediately upon its coming or being brought on the grounds to secure existing or future indebtedness.
  3. Any designated employee or agent of the commission may sell the property to satisfy the indebtedness after giving ten (10) days’ notice to the owner or agent of the owner or, if notice cannot be given to the owner, after a notice is posted for ten (10) days in the office of the commission on the grounds, announcing that the property is to be sold. The commission through its designated agent, may bid on and buy the property offered for sale for the use and benefit of the State Horse Park.

History. Enact. Acts 1979 (Ex. Sess.) ch. 6, § 5, effective July 1, 1979; 1982, ch. 396, § 19, effective July 15, 1982; 1984, ch. 111, § 81, effective July 13, 1984; 1986, ch. 96, § 6, effective July 15, 1986.

148.310. Provisions of KRS Chapter 137 and KRS 92.280 not to apply.

None of the provisions of KRS Chapter 137 and none of the provisions of KRS 92.280(2) shall apply to any operations on State Horse Park grounds wherein the commission shares in the receipts and proceeds of such operations.

History. Enact. Acts 1979 (Ex. Sess.), ch. 6, § 6, effective July 1, 1979; 1982, ch. 396, § 20, effective July 15, 1982; 1986, ch. 96, § 7, effective July 15, 1986.

148.320. Use of revenues — Deposit of funds — Accounts and reports.

  1. All revenues derived by the commission from the use of properties and facilities under its custody and control shall be used exclusively for the purpose of defraying the expenses of the commission, the cost of the management and operation of such properties and facilities, the payment of interest and principal upon any indebtedness incurred by the commission for such properties and facilities, the creation of adequate reserves for the repair and replacement thereof and for the financing of further extensions, improvements, and additions thereto. Included in the cost of operation may be such promotional activities as the commission may determine upon as calculated to stimulate and increase the use and the revenues of such facilities, and to increase and stimulate the interest and usefulness of the State Horse Park.
  2. The commission shall generally cause its funds to be deposited in the State Treasurer’s office to be withdrawn on appropriate vouchers approved by the commission.
  3. An annual accounting of the funds of the commission shall be made by the Auditor of Public Accounts and reported to the Governor for the benefit of the Governor and the General Assembly.

History. Enact. Acts 1979 (Ex. Sess.), ch. 6, § 7, effective July 1, 1979; 1982, ch. 396, § 21, effective July 15, 1982; 1986, ch. 96, § 8, effective July 15, 1986.

Opinions of Attorney General.

The Legislature has intended by this section for the Kentucky State Horse Park to be independent and self-sufficient; beyond that, the only obligation the state would have for the support of the park is that which the Legislature, as the controller of the state’s purse strings, deems appropriate. OAG 80-399 .

My Old Kentucky Home State Park

148.400. My Old Kentucky Home Endowment Fund.

There is established in the State Treasury “My Old Kentucky Home Endowment Fund” which shall be administered by the park superintendent at My Old Kentucky Home State Park under the supervision of the commissioner of the Department of Parks.The fund may receive state appropriations, federal funds, and private donations. The fund shall be used for maintenance, furnishings, and repairs of My Old Kentucky Home House Museum and maintenance of the grounds of My Old Kentucky Home State Park.

HISTORY: Enact. Acts 1986, ch. 189, § 1, effective July 15, 1986; 1994, ch. 176, § 7, effective July 15, 1994; 2017 ch. 80, § 5, effective June 29, 2017.

148.510. Establishment of department; commissioner; organization. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 68, Art. X, § 1) was repealed by Acts 1964, ch. 157, § 18.

148.520. Establishment of Parks Board; membership. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 68, Art. X, § 2) was repealed by Acts 1964, ch. 157, § 18.

Tourism, Arts and Heritage Cabinet

148.522. Organization of Tourism, Arts and Heritage Cabinet.

  1. The Tourism, Arts and Heritage Cabinet shall consist of the Office of the Secretary, the Office of Legal Affairs, the Office of Finance, the Office of Government Relations and Administration, the Office of Human Resources, the Office of Public Affairs and Constituent Services, the Office of Arts and Cultural Heritage, the Kentucky Department of Tourism, the Kentucky Department of Parks, the Tourism Development Finance Authority, and such other divisions and sections as are from time to time deemed necessary for the proper and efficient operation of the cabinet subject to the provisions of KRS Chapter 12.
  2. The Office of Legal Affairs shall be headed by a general counsel appointed by the secretary pursuant to KRS 12.210 , shall provide legal services for the cabinet, and shall be directly responsible to the secretary.
  3. The Kentucky Department of Tourism shall be headed by a commissioner appointed by the Governor pursuant to the provisions of KRS 12.040 . The commissioner shall have the authority and responsibility for the promotion, development, and support services for the tourism industry within the Commonwealth.
  4. The Divisions of Tourism Services, Marketing and Administration, and Communications and Promotions are created within the Kentucky Department of Tourism. Each division shall be headed by a division director who shall be appointed by the commissioner of the department pursuant to the provisions of KRS 12.050 .

History. Enact. Acts 1984, ch. 404, § 11, effective July 13, 1984; 1992, ch. 13, § 7, effective July 14, 1992; 1992, ch. 159, § 3, effective July 14, 1992; 1992, ch. 424, § 3, effective July 14, 1992; 1998, ch. 48, § 8, effective July 15, 1998; 2001, ch. 1, § 10, effective June 21, 2001; 2005, ch. 95, § 17, effective June 20, 2005; 2006, ch. 152, § 6, effective July 12, 2006; 2009, ch. 16, § 18, effective June 25, 2009; 2010, ch. 65, § 3, effective July 15, 2010; 2018 ch. 69, § 3, effective July 14, 2018; 2018 ch. 124, § 2, effective July 14, 2018; 2021 ch. 156, § 23, effective March 29, 2021.

Legislative Research Commission Notes.

(7/14/2018). This statute was amended by 2018 Ky. Acts chs. 69 and 124, which do not appear to be in conflict and have been codified together.

148.525. Functions of divisions.

  1. The Division of Tourism Services shall operate the highway welcome centers, conduct a hospitality education program for the tourism industry, coordinate the provision of mail and telephone information services to visitors, and generate sales revenue to the tourism industry of the Commonwealth through participation in trade shows and markets.
  2. The Division of Marketing and Advertising shall be responsible for state tourism advertising, the state matching fund tourism advertising program, the development and maintenance of a marketing and research database on tourism, market survey programs, and special studies related to the tourism industry.
  3. The commissioner of tourism may promulgate administrative regulations in accordance with provisions of KRS Chapter 13A in order to carry out the provisions of KRS 148.522 and this section.

History. Enact. Acts 1992, ch. 424, § 4, effective July 14, 1992.

148.527. Kentucky Certified Retirement Community Program.

  1. The Kentucky Department of Travel and Tourism of the Tourism, Arts and Heritage Cabinet shall, after appropriate research has been conducted, establish and maintain a Kentucky Certified Retirement Community Program whereby retirees and those planning to retire are encouraged to make their homes in Kentucky communities that have met certain criteria to be certified by the Tourism, Arts and Heritage Cabinet as a Kentucky certified retirement community. In support of this program, the Kentucky Department of Travel and Tourism shall identify certain issues of interest to retirees or potential retirees in order to inform them of the benefits of living in Kentucky. Issues of interest to retirees may include but are not limited to:
    1. Kentucky’s state and local tax structure;
    2. Housing opportunities and cost;
    3. Climate;
    4. Personal safety;
    5. Working opportunities;
    6. Health care services and other services along the continuum of services, including but not limited to home and community based services;
    7. Transportation;
    8. Continuing education;
    9. Leisure living;
    10. Recreation;
    11. The performing arts;
    12. Festivals and events;
    13. Sports at all levels; and
    14. Other services and facilities that are necessary to enable persons to age in the community and in the least restrictive environment.
  2. The mission of the Kentucky Certified Retirement Community Program shall be to:
    1. Promote the state as a retirement destination to retirees and those persons and families who are planning retirement both in and outside of Kentucky;
    2. Assist Kentucky communities in their efforts to market themselves as retirement locations and to develop communities that retirees would find attractive for a retirement lifestyle;
    3. Assist in the development of retirement communities and lifecare communities for economic development purposes and as a means of providing a potential workforce and enriching Kentucky communities; and
    4. Encourage tourism to Kentucky in the form of mature market travel to Kentucky in reference to retirement desirability for the future, and for the visitation of those who have chosen to retire in Kentucky.
  3. The Tourism, Arts and Heritage Cabinet shall coordinate the development and planning of the Kentucky Certified Retirement Community Program with the Cabinet for Economic Development, the Department for Aging and Independent Living in the Cabinet for Health and Family Services, the Kentucky Commission on Military Affairs, the Department of Veterans’ Affairs, and other state and local groups interested in participating in and promoting the program.
  4. To obtain certification as a Kentucky certified retirement community, the following requirements shall be met:
    1. Official community support. A resolution by the governing authority endorsing the local retirement recruitment effort is required;
    2. Designation of a sponsor. The program shall have an official sponsoring organization that shall appoint an individual who will be accountable to the community and to the state;
    3. Funding. The sponsoring organization must commit a minimum of ten thousand dollars ($10,000) per year for the local program;
    4. Health services. There shall be a hospital and emergency medical services that are readily accessible to the community;
    5. Available housing. The community shall maintain information on both resale housing and rental housing to ensure that the quantity is sufficient to meet the needs of potential new retiree residents;
    6. Retiree desirability assessment. The community shall conduct a retiree desirability assessment that shall focus on a number of factors including, but not limited to, medical services, adult education opportunities, shopping, recreation, cultural opportunities, safety, aging services, and a continuum of care including home and community based services, housing for the elderly, assisted living, personal care, and nursing care facilities;
    7. Establishment of subcommittees. Each locality shall have a general retiree attraction committee and a minimum of four (4) subcommittees as follows:
      1. Community inventory/assessment subcommittee. This subcommittee shall conduct an unbiased inventory and assessment of whether the community can offer the basics that retirees demand and develop a professional portfolio containing brief biographies of professionals in the community;
      2. Community relations/fundraising subcommittee. This subcommittee shall locate retirees living in the community, act as salespersons for the program, raise funds necessary to run the program, recruit subcommittee members, organize special events, and promote and coordinate the program with local entities;
      3. Marketing and promotion subcommittee. This subcommittee shall establish a community image, evaluate target markets, develop and distribute promotional material, and coordinate advertising and public relations campaigns; and
      4. Ambassadors subcommittee. This subcommittee shall be the first contact with prospective retirees and provide tour guides when prospects visit the community. The subcommittee shall respond to inquiries, log contacts made, provide tours, invite prospects to special community events, and maintain continual contact with prospects until the time that the prospect makes a retirement location decision;
    8. Community profile. The sponsor shall develop a community profile similar to that used by many chambers of commerce. It will include factors such as crime statistics, tax information, recreational opportunities, and housing availability; and
    9. Written marketing plan. The retiree attraction committee shall submit a marketing plan that shall detail the mission, the target market, the competition, an analysis of the community’s strengths, weaknesses, opportunities and threats, and the strategies the program will employ to attain its goals.
  5. During the certification process, a representative of the retirement attraction committee shall attend state training meetings.
  6. The retiree attraction committee shall work to gain the support of churches, clubs, businesses, and the local media, as this support is necessary for the success of the program.
  7. Within ninety (90) days of certification, the locality shall submit a complete retiree attraction package to the Kentucky Department of Travel and Tourism.
  8. Before certification is awarded, the retiree attraction committee shall submit a written three (3) year commitment to the program and a long-term plan outlining steps the community will undertake to maintain its desirability as a destination for retirees. The long-range plan shall outline plans to correct any facility and service deficiencies identified in the retiree desirability assessment required by subsection (4)(f) of this section. The written commitment and long-range plan shall be forwarded to the Kentucky Department of Travel and Tourism of the Tourism, Arts and Heritage Cabinet.
  9. Upon being certified as a Kentucky certified retirement community, the Tourism, Arts and Heritage Cabinet shall provide the following assistance to the community:
    1. Assistance in the training of local staff and volunteers;
    2. Ongoing oversight and guidance in marketing, plus updating on national retirement trends;
    3. Inclusion in the state’s national advertising and public relations campaigns and travel show promotions, including a prominent feature on the cabinet’s Internet Web site;
    4. Eligibility for state financial assistance for brochures, support material, and advertising; and
    5. An annual evaluation and progress assessment on maintaining and improving the community’s desirability as a home for retirees.
  10. The Tourism, Arts and Heritage Cabinet shall promulgate administrative regulations to implement the provisions of this section.

History. Enact. Acts 2001, ch. 78, § 1, effective June 21, 2001; 2005, ch. 95, § 18, effective June 20, 2005; 2005, ch. 99, § 120, effective June 20, 2005; 2007, ch. 24, § 3, effective June 26, 2007; 2009, ch. 16, § 19, effective June 25, 2009; 2010, ch. 65, § 4, effective July 15, 2010.

Compiler's Notes.

Section 2 of Chapter 78 of the Acts of the 2001 Regular Session read: “Section 1 of this Act shall be implemented by the Tourism Development Cabinet to the extent that appropriations from the General Assembly are available for the purposes set forth in Section 1.”

Legislative Research Commission Note.

(6/29/2017). Under the authority of KRS 7.136(2), one or more references to the "Kentucky Department of Travel and Tourism" in this statute have been changed in codification to the "Kentucky Department of Tourism" to reflect the reorganization of certain parts of the Executive Branch, as set forth in Executive Order 2016-856 and confirmed by the General Assembly in 2017 Ky. Acts ch. 110.

148.530. Functions of board. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 68, Art. X, §§ 3, 4) was repealed by Acts 1964, ch. 157, § 18.

148.531. [Renumbered as 154.29-010.]

Legislative Research Commission Note.

(7/15/96). The statute originally assigned this number in the tables for the 1996 Kentucky Acts was renumbered as KRS 154.29-010 in codification.

(6/29/2017). Under the authority of KRS 7.136(2), one or more references to the "Kentucky Department of Travel and Tourism" in this statute have been changed in codification to the "Kentucky Department of Tourism" to reflect the reorganization of certain parts of the Executive Branch, as set forth in Executive Order 2016-856 and confirmed by the General Assembly in 2017 Ky. Acts ch. 110.

148.532. [Renumbered as 154.29-020.]

Legislative Research Commission Note.

(7/15/96). The statute originally assigned this number in the tables for the 1996 Kentucky Acts was renumbered as KRS 154.29-020 in codification.

148.534. [Renumbered as 154.29-030.]

Legislative Research Commission Note.

(7/15/96). The statute originally assigned this number in the tables for the 1996 Kentucky Acts was renumbered as KRS 154.29-030 in codification.

148.536. [Renumbered as 154.29-040.]

Legislative Research Commission Note.

(7/15/96). The statute originally assigned this number in the tables for the 1996 Kentucky Acts was renumbered as KRS 154.29-040 in codification.

148.538. [Renumbered as 154.29-050.]

Legislative Research Commission Note.

(7/15/96). The statute originally assigned this number in the tables for the 1996 Kentucky Acts was renumbered as KRS 154.29-050 in codification.

148.539. [Renumbered as 154.29-060.]

Legislative Research Commission Note.

(7/15/96). The statute originally assigned this number in the tables for the 1996 Kentucky Acts was renumbered as KRS 154.29-060 in codification.

148.540. Functions of department. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 68, Art. X, § 5; 1962, ch. 130) was repealed by Acts 1964, ch. 157, § 18.

Film Industry Incentives

148.542. Definitions for KRS 148.542 to 148.546. [Repealed effective January 1, 2022]

As used in KRS 148.542 to 148.546 :

  1. “Above-the-line production crew” means employees involved with the production of a motion picture or entertainment production whose salaries are negotiated prior to commencement of production, such as actors, directors, producers, and writers;
  2. “Animated production” means a nationally distributed feature-length film created with the rapid display of a sequence of images using 2-D or 3-D graphics of artwork or model positions in order to create an illusion of movement;
  3. “Approved company” means an eligible company approved for incentives provided under KRS 141.383 and 148.544 ;
  4. “Below-the-line production crew” means employees involved with the production of a motion picture or entertainment production except above-the-line production crew. “Below-the-line production crew” includes but is not limited to:
    1. Casting assistants;
    2. Costume design;
    3. Extras;
    4. Gaffers;
    5. Grips;
    6. Location managers;
    7. Production assistants;
    8. Set construction staff; and
    9. Set design staff;
  5. “Cabinet” means the Finance and Administration Cabinet;
  6. “Commonwealth” means the Commonwealth of Kentucky;
  7. “Compensation” means compensation included in adjusted gross income as defined in KRS 141.010 ;
  8. “Documentary” means a production based upon factual information and not subjective interjections;
  9. “Eligible company” means any person that intends to film or produce a motion picture or entertainment production in the Commonwealth;
  10. “Employee” has the same meaning as in KRS 141.010 ;
  11. “Enhanced incentive county” has the same meaning as in KRS 154.32-010 ;
  12. “Feature-length film” means a live-action or animated production that is:
    1. More than thirty (30) minutes in length; and
    2. Produced for distribution in theaters or via digital format, including but not limited to DVD, Internet, or mobile electronic devices;
  13. “Industrial film” means a business-to-business film that may be viewed by the public, including but not limited to videos used for training or for viewing at a trade show;
  14. “Kentucky-based company” has the same meaning as in KRS 164.6011 ;
    1. “Motion picture or entertainment production” means: (15) (a) “Motion picture or entertainment production” means:
      1. The following if filmed in whole or in part, or produced in whole or in part, in the Commonwealth:
        1. A feature-length film;
        2. A television program;
        3. An industrial film; or
        4. A documentary; or
      2. A national touring production of a Broadway show produced in Kentucky;
    2. “Motion picture or entertainment production” does not include the filming or production of obscene material or television coverage of news or athletic events;
  15. “Obscene” has the same meaning as in KRS 531.010 ;
  16. “Office” means the Kentucky Film Office in the Tourism, Arts and Heritage Cabinet;
  17. “Person” has the same meaning as in KRS 141.010 ;
    1. “Qualifying expenditure” means expenditures made in the Commonwealth for the following if directly used in or for a motion picture or entertainment production: (19) (a) “Qualifying expenditure” means expenditures made in the Commonwealth for the following if directly used in or for a motion picture or entertainment production:
      1. The production script and synopsis;
      2. Set construction and operations, wardrobe, accessories, and related services;
      3. Lease or rental of real property in Kentucky as a set location;
      4. Photography, sound synchronization, lighting, and related services;
      5. Editing and related services;
      6. Rental of facilities and equipment;
      7. Vehicle leases;
      8. Food; and
      9. Accommodations.
    2. “Qualifying expenditure” does not include Kentucky sales and use tax paid by the approved company on the qualifying expenditure;
  18. “Qualifying payroll expenditure” means compensation paid to above-the-line crew and below-the line crew while working on a motion picture or entertainment production in the Commonwealth if the compensation is for services performed in the Commonwealth;
  19. “Resident” has the same meaning as in KRS 141.010 ;
  20. “Secretary” means the secretary of the Tourism, Arts and Heritage Cabinet;
  21. “Tax incentive agreement” means the agreement entered into pursuant to KRS 148.546 between the office and the approved company; and
  22. “Television program” means any live-action or animated production or documentary, including but not limited to:
    1. An episodic series;
    2. A miniseries;
    3. A television movie; or
    4. A television pilot;

that is produced for distribution on television via broadcast, cable, or any digital format, including but not limited to cable, satellite, Internet, or mobile electronic devices.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 43, effective June 26, 2009; 2015 ch. 74, § 1, effective June 24, 2015; 2018 ch. 171, § 61, effective April 14, 2018; 2018 ch. 207, § 61, effective April 27, 2018.

Legislative Research Commission Notes.

(6/29/2017). Under the authority of KRS 7.136(1), a reference to “KRS 131.990 (2)” in subsection (1)(b)5. of this statute has been changed to “KRS 131.990 (1)” by the Reviser of Statutes following the enactment of 2017 Ky. Acts ch. 74, sec. 67, which deleted subsection (1) of KRS 131.990 and renumbered the subsequent subsections, but did not amend this statute to conform.

148.542. Definitions for KRS 148.542 to 148.546. [Repealed effective January 1, 2022]

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 43, effective June 26, 2009; 2015 ch. 74, § 1, effective June 24, 2015; 2018 ch. 171, § 61, effective April 14, 2018; 2018 ch. 207, § 61, effective April 27, 2018; repealed by 2021 ch. 156, § 35, effective January 1, 2022.

148.544. Purposes of KRS 141.383 and 148.542 to 148.546 — Kentucky Film Office — Eligibility for refundable motion picture or entertainment production tax incentives — Incentives available. [Repealed effective January 1, 2022]

  1. The purposes of KRS 141.383 and 148.542 to 148.546 are to:
    1. Encourage the film and entertainment industry to choose locations in the Commonwealth for the filming and production of motion picture or entertainment productions;
    2. Encourage the development of a film and entertainment industry in Kentucky;
    3. Encourage increased employment opportunities for the citizens of the Commonwealth within the film and entertainment industry; and
    4. Encourage the development of a production and postproduction infrastructure in the Commonwealth for film production and touring Broadway show production facilities containing state-of-the-art technologies.
  2. The Kentucky Film Office is hereby established in the Tourism, Arts and Heritage Cabinet to administer, together with the Finance and Administration Cabinet and the Tourism Development Finance Authority, the tax incentive established by KRS 141.383 and 148.542 to 148.546 .
  3. To qualify for the tax incentive provided in subsection (5) of this section, the following requirements shall be met:
    1. For an approved company that is also a Kentucky-based company that:
      1. Films or produces a feature-length film, television program, or industrial film in whole or in part in the Commonwealth, the minimum combined total of qualifying expenditures and qualifying payroll expenditures shall be one hundred twenty-five thousand dollars ($125,000);
      2. Produces a national touring production of a Broadway show in whole or in part in the Commonwealth, the minimum combined total of qualifying expenditures and qualifying payroll expenditures shall be twenty thousand dollars ($20,000); or
      3. Films or produces a documentary in whole or in part in the Commonwealth, the minimum combined total of qualifying expenditures and qualifying payroll expenditures shall be ten thousand dollars ($10,000); and
    2. For an approved company that is not a Kentucky-based company that:
      1. Films or produces a feature-length film, television program, or industrial film in whole or in part in the Commonwealth, the minimum combined total of qualifying expenditures and qualifying payroll expenditures shall be two hundred fifty thousand dollars ($250,000); or
      2. Films or produces a documentary in whole or in part in the Commonwealth or that produces a national touring production of a Broadway show, the minimum combined total of qualifying expenditures and qualifying payroll expenditures shall be twenty thousand dollars ($20,000).
    1. Beginning on the April 27, 2018, the total tax incentive approved under KRS 141.383 and 148.542 to 148.546 shall be limited to one hundred million dollars ($100,000,000) for calendar year 2018 and each calendar year thereafter. (4) (a) Beginning on the April 27, 2018, the total tax incentive approved under KRS 141.383 and 148.542 to 148.546 shall be limited to one hundred million dollars ($100,000,000) for calendar year 2018 and each calendar year thereafter.
    2. On April 27, 2018, if applications have been approved during the 2018 calendar year which exceed the amount in paragraph (a) of this subsection, the office shall immediately cease in approving any further applications for tax incentives for that calendar year.
    1. The incentive available under KRS 141.383 and 148.542 to 148.546 is: (5) (a) The incentive available under KRS 141.383 and 148.542 to 148.546 is:
      1. A refundable credit for applications approved prior to April 27, 2018; and
      2. A nonrefundable and nontransferable credit for applications approved on or after April 27, 2018; against the Kentucky income tax imposed under KRS 141.020 or 141.040 , and the limited liability entity tax imposed under KRS 141.040 1, as provided in KRS 141.383.
      1. For a motion picture or entertainment production filmed or produced in its entirety in an enhanced incentive county, the amount of the incentive shall be equal to thirty-five percent (35%) of the approved company’s: (b) 1. For a motion picture or entertainment production filmed or produced in its entirety in an enhanced incentive county, the amount of the incentive shall be equal to thirty-five percent (35%) of the approved company’s:
        1. Qualifying expenditures;
        2. Qualifying payroll expenditures paid to resident and nonresident below-the-line production crew; and
        3. Qualifying payroll expenditures paid to resident and nonresident above-the-line production crew not to exceed one million dollars ($1,000,000) in payroll expenditures per employee.
        1. To the extent the approved company films or produces a motion picture or entertainment production in part in an enhanced incentive county and in part a Kentucky county that is not an enhanced incentive county, the approved company shall be eligible to receive the incentives provided in this paragraph for those expenditures incurred in the enhanced incentive county and all other expenditures shall be subject to the incentives provided in paragraph (c) of this subsection. 2. a. To the extent the approved company films or produces a motion picture or entertainment production in part in an enhanced incentive county and in part a Kentucky county that is not an enhanced incentive county, the approved company shall be eligible to receive the incentives provided in this paragraph for those expenditures incurred in the enhanced incentive county and all other expenditures shall be subject to the incentives provided in paragraph (c) of this subsection.
        2. The approved company shall track the requisite expenditures by county. If the approved company can demonstrate to the satisfaction of the cabinet that it is not practical to use a separate accounting method to determine the expenditures by county, the approved company shall determine the correct expenditures by county using an alternative method approved by the cabinet.
    2. For a motion picture or entertainment production filmed or produced in whole or in part in any Kentucky county other than in an enhanced incentive county, the amount of the incentive shall be equal to:
      1. Thirty percent (30%) of the approved company’s:
        1. Qualifying expenditures;
        2. Qualifying payroll expenditures paid to below-the-line production crew that are not residents; and
        3. Qualifying payroll expenditures paid to above-the-line production crew that are not residents, not to exceed one million dollars ($1,000,000) in payroll expenditures per employee; and
      2. Thirty-five percent (35%) of the approved company’s:
        1. Qualifying payroll expenditures paid to resident below-the-line production crew; and
        2. Qualifying payroll expenditures paid to resident above-the-line production crew not to exceed one million dollars ($1,000,000) in payroll expenditures per employee.
    3. Prior to June 1, 2019, the office and the Department of Revenue shall work jointly to provide the following information for each approved motion picture or entertainment production project to the Interim Joint Committee on Appropriations and Revenue by taxable year for all years that a credit under KRS 141.383 is or has been claimed:
      1. The name of the approved company and whether it is Kentucky-based or not;
      2. A brief description of the motion picture or entertainment production project;
      3. The amount of qualifying expenditures and the amount of qualifying payroll expenditures included in the agreement;
      4. The amount of qualifying expenditures and the amount of qualifying payroll expenditures paid to below-the-line production crew and paid to above-the-line production crew in an enhanced incentive county;
      5. The amount of qualifying expenditures and the amount of qualifying payroll expenditures paid to below-the-line production crew and paid to above-the line production crew in a county other than an enhanced incentive county; and
      6. The total amount of the tax credit claimed on a return by tax type, any amount denied, any amount applied against a tax liability, any amount refunded, and any amount remaining that may be claimed on a return filed in the future.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 44, effective June 26, 2009; 2014, ch. 102, § 12, effective July 15, 2014; 2015 ch. 74, § 2, effective June 24, 2015; 2018 ch. 171, § 62, effective April 14, 2018; 2018 ch. 207, § 62, effective April 27, 2018.

Legislative Research Commission Notes.

(6/29/2017). Under the authority of KRS 7.136(1), a reference to “KRS 131.990 (2)” in subsection (1)(b)5. of this statute has been changed to “KRS 131.990 (1)” by the Reviser of Statutes following the enactment of 2017 Ky. Acts ch. 74, sec. 67, which deleted subsection (1) of KRS 131.990 and renumbered the subsequent subsections, but did not amend this statute to conform.

148.544. Purposes of KRS 141.383 and 148.542 to 148.546 — Kentucky Film Office — Eligibility for refundable motion picture or entertainment production tax incentives — Incentives available. [Repealed effective January 1, 2022]

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 44, effective June 26, 2009; 2014, ch. 102, § 12, effective July 15, 2014; 2015 ch. 74, § 2, effective June 24, 2015; 2018 ch. 171, § 62, effective April 14, 2018; 2018 ch. 207, § 62, effective April 27, 2018; repealed by 2021 ch. 156, § 35, effective January 1, 2022.

148.545. Acquisition of land for Cumberland Gap National Historical Park. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 189, § 1) was repealed by Acts 1964, ch. 157, § 18.

148.546. Application for motion picture or entertainment production tax incentives — Tax incentive agreement — Required terms — Administrative fee — Review — Verification of expenditure reports — Annual reports. [Repealed effective January 1, 2022]

  1. An eligible company shall, at least thirty (30) days prior to incurring any expenditure for which recovery will be sought, file an application for tax incentives with the office. The application shall include:
    1. The name and address of the applicant;
    2. Verification that the applicant is a Kentucky-based company;
    3. The production script or a detailed synopsis of the script;
    4. The locations where the filming or production will occur;
    5. The anticipated date on which filming or production shall begin;
    6. The anticipated date on which the production will be completed;
    7. The total anticipated qualifying expenditures;
    8. The total anticipated qualifying payroll expenditures for resident and nonresident above-the-line crew by county;
    9. The total anticipated qualifying payroll expenditures for resident and nonresident below-the-line crew by county;
    10. The address of a Kentucky location at which records of the production will be kept;
    11. An affirmation that if not for the incentive offered under KRS 148.542 to 148.546 , the eligible company would not film or produce the production in the Commonwealth; and
    12. Any other information the office may require.
  2. The office shall notify the eligible company within thirty (30) days after receiving the application of its status.
    1. Upon review of the application and any additional information submitted, the office shall present the application and its recommendation to the Tourism Development Finance Authority established by KRS 148.850 which may, by resolution, authorize the execution of a tax incentive agreement between the Tourism Development Finance Authority and the approved company. (3) (a) Upon review of the application and any additional information submitted, the office shall present the application and its recommendation to the Tourism Development Finance Authority established by KRS 148.850 which may, by resolution, authorize the execution of a tax incentive agreement between the Tourism Development Finance Authority and the approved company.
      1. The total amount of tax credits authorized by the Tourism Development Finance Authority during fiscal year 2010-2011 shall not exceed five million dollars ($5,000,000). (b) 1. The total amount of tax credits authorized by the Tourism Development Finance Authority during fiscal year 2010-2011 shall not exceed five million dollars ($5,000,000).
      2. The total amount of tax credits authorized by the Tourism Development Finance Authority during the fiscal year 2011-2012 shall not exceed seven million five hundred thousand dollars ($7,500,000).
  3. The tax incentive agreement shall include the following provisions:
    1. The duties and responsibilities of the parties;
    2. A detailed description of the motion picture or entertainment production for which incentives are requested;
    3. The anticipated qualifying expenditures and qualifying payroll expenditures for resident and nonresident above-the-line and below-the-line crews by county;
    4. The minimum combined total of qualifying expenditures and qualifying payroll expenditures necessary for the approved company to qualify for incentives;
    5. That the approved company shall have no more than two (2) years from the date the tax incentive agreement is executed to start the motion picture or entertainment production;
    6. That the approved company shall have no more than four (4) years from the execution of the tax incentive agreement to complete the motion picture or entertainment production;
    7. That the motion picture or entertainment production shall not include obscene materials and shall not negatively impact the economy or the tourism industry of the Commonwealth;
    8. That the execution of the agreement is not a guarantee of tax incentives and that actual receipt of the incentives shall be contingent upon the approved company meeting the requirements established by the tax incentive agreement;
    9. That the approved company shall submit to the office within one hundred eighty (180) days of the completion of the motion picture or entertainment production a detailed cost report of the qualifying expenditures, qualifying payroll expenditures, and final script;
    10. That the approved company shall provide the office with documentation that the approved company has withheld income tax as required by KRS 141.310 on all qualified payroll expenditures for which an incentive under KRS 141.383 and 148.544 is sought;
    11. That, if the office determines that the approved company has failed to comply with any of its obligations under the tax incentive agreement:
      1. The office may deny the incentives available to the approved company;
      2. Both the office and the cabinet may pursue any remedy provided under the tax incentive agreement;
      3. The office may terminate the tax incentive agreement; and
      4. Both the office and the cabinet may pursue any other remedy at law to which it may be entitled;
    12. That the office shall monitor the tax incentive agreement;
    13. That the approved company shall provide to the office and the cabinet all information necessary to monitor the tax incentive agreement;
    14. That the office may share information with the cabinet or any other entity the office determines is necessary for the purposes of monitoring and enforcing the terms of the tax incentive agreement;
    15. That the motion picture or entertainment production shall contain an acknowledgment that the motion picture or entertainment production was produced or filmed in the Commonwealth of Kentucky;
    16. That the approved company shall include screen credits in its final production that:
      1. Indicate that the approved company received tax incentives from the Commonwealth of Kentucky; and
      2. Display the “Unbridled Spirit” logo;
    17. Terms of default;
    18. The method and procedures by which the approved company shall request and receive the incentive provided under KRS 141.383 and 148.544 ;
    19. That the approved company may be required to pay an administrative fee as authorized under subsection (5) of this section; and
    20. Any other provisions deemed necessary or appropriate by the parties to the tax incentive agreement.
  4. The office may require the approved company to pay an administrative fee, the amount of which shall be established by administrative regulation promulgated in accordance with KRS Chapter 13A. The administrative fee shall not exceed one-half of one percent (0.5%) of the estimated amount of tax incentive sought or five hundred dollars ($500), whichever is greater.
  5. Prior to commencement of activity as provided in a tax incentive agreement, the tax incentive agreement shall be submitted to the Government Contract Review Committee established by KRS 45A.705 for review, as provided in KRS 45A.695 , 45A.705 , and 45A.725 .
  6. The office shall notify the cabinet upon approval of an approved company. The notification shall include the name of the approved company, the name of the motion picture or entertainment production, the estimated amount of qualifying expenditures, the estimated date on which the approved company will complete filming or production, and any other information required by the cabinet.
  7. Within one hundred eighty days (180) days of completion of the motion picture or entertainment production, the approved company shall submit to the office a detailed cost report of:
    1. Qualifying expenditures;
    2. Qualifying payroll expenditures for resident and nonresident above-the-line crew by county;
    3. Qualifying payroll expenditures for resident and nonresident below-the-line crew by county; and
    4. The final script.
    1. The office, together with the secretary, shall review all information submitted for accuracy and shall confirm that all relevant provisions of the tax incentive agreement have been met. (9) (a) The office, together with the secretary, shall review all information submitted for accuracy and shall confirm that all relevant provisions of the tax incentive agreement have been met.
    2. Upon confirmation that all requirements of the tax incentive agreement have been met, the office, and the secretary shall review the final script, and if they determine that the motion picture or entertainment production does not:
      1. Contain visual or implied scenes that are obscene; or
      2. Negatively impact the economy or the tourism industry of the Commonwealth;

        the office shall forward the detailed cost report to the cabinet for calculation of the refundable credit.

  8. The cabinet shall verify that the approved company withheld the proper amount of income tax on qualifying payroll expenditures, and the cabinet shall notify the office of the total amount of refundable credit available on qualifying expenditures and qualifying payroll expenditures.
  9. On or before October 1, 2010, and on or before each October 1 thereafter, for the immediately preceding fiscal year, the office shall report to the Tourism Development Finance Authority:
    1. The number of tax incentive agreements that have been executed;
    2. The estimated amount of tax incentives that have been requested under KRS 141.383 and 148.542 to 148.546 ; and
    3. The amount of tax incentives approved under KRS 139.538 , 141.383 , and 148.542 to 148.546 .
    1. By November 1 of each year, the authority shall prepare an annual report. The report shall be posted on the Tourism, Arts and Heritage Cabinet’s Web site. (12) (a) By November 1 of each year, the authority shall prepare an annual report. The report shall be posted on the Tourism, Arts and Heritage Cabinet’s Web site.
    2. The report shall include information for all motion picture or entertainment production projects approved.
    3. The report shall include the following information:
      1. For each approved motion picture or entertainment production project:
        1. The name of the approved company and a brief description of the project;
        2. The amount of approved costs included in the agreement; and
        3. The total amount recovered under the tax incentive agreement;
      2. The number of applications for projects submitted during the prior fiscal year;
      3. The number of projects finally approved during the prior fiscal year; and
      4. The total dollar amount approved for recovery for all projects approved during the prior fiscal year, and cumulatively under KRS 141.383 and 148.542 to 148.546 since its inception, by year of approval.
    4. The information required to be reported under this section shall not be considered confidential taxpayer information and shall not be subject to KRS Chapter 131 or any other provisions of the Kentucky Revised Statutes prohibiting disclosure or reporting of information.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 45, effective June 26, 2009; 2010 (1st Ex. Sess.), ch. 2, § 7, effective June 4, 2010; 2014, ch. 134, § 2, effective July 15, 2014; 2015 ch. 74, § 3, effective June 24, 2015; 2018 ch. 199, § 6, effective July 14, 2018.

148.546. Application for motion picture or entertainment production tax incentives — Tax incentive agreement — Required terms — Administrative fee — Review — Verification of expenditure reports — Annual reports. [Repealed effective January 1, 2022]

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 45, effective June 26, 2009; 2010 (1st Ex. Sess.), ch. 2, § 7, effective June 4, 2010; 2014, ch. 134, § 2, effective July 15, 2014; 2015 ch. 74, § 3, effective June 24, 2015; 2018 ch. 199, § 6, effective July 14, 2018; repealed by 2021 ch. 156, § 35, effective January 1, 2022.

148.548. Kentucky Film Commission — Functions and purpose — Members — Meetings — Nonvoting ex officio members. [Repealed effective January 1, 2022]

  1. The Kentucky Film Commission is hereby established and administratively attached to the Office of the Secretary, Tourism, Arts and Heritage Cabinet.
  2. The functions and purpose of the Kentucky Film Commission shall be:
    1. To serve in an advisory capacity to support the Tourism, Arts and Heritage Cabinet in:
      1. Promoting the growth of the film, television, and video production industry within the Commonwealth;
      2. Marketing and promoting Kentucky as a location destination for motion picture productions throughout the Commonwealth for the express purpose of economic development; and
      3. Providing a broad base of industry-specific demographic, economic, and informational support to the Tourism, Arts and Heritage Cabinet; and
    2. To advise the Governor and members of the General Assembly on issues relating to the Commonwealth’s development and implementation of programs to attract and encourage film, television, and video production in the Commonwealth.
    1. The commission shall consist of fifteen (15) members who shall be appointed by the Governor. (3) (a) The commission shall consist of fifteen (15) members who shall be appointed by the Governor.
    2. Initially, the Governor shall appoint:
      1. Not more than four (4) members for a term of one (1) year;
      2. Not more than four (4) members for a term of two (2) years;
      3. Not more than four (4) members for a term of three (3) years; and
      4. Not more than three (3) members for a term of four (4) years.
    3. Thereafter, the Governor shall make all appointments for a term of four (4) years.
    4. The Governor shall appoint a chairman from among the members.
  3. The members of the commission shall serve without compensation but shall be reimbursed for necessary travel expenses.
  4. The commission shall meet at the call of the chairman at locations within the Commonwealth designated by the chairman.
  5. The commission, by majority vote, may appoint other nonvoting ex officio members within the Commonwealth to assist the commission in achieving its functions and purpose as described in subsection (2) of this section.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 46, effective June 26, 2009.

148.548. Kentucky Film Commission — Functions and purpose — Members — Meetings — Nonvoting ex officio members. [Repealed effective January 1, 2022]

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 46, effective June 26, 2009; repealed by 2021 ch. 156, § 35, effective January 1, 2022.

148.550. Transfer of funds and facilities to department. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 68, Art. X, § 6) was repealed by Acts 1964, ch. 157, § 18.

Appalachian/Kentucky Artisans Gateway Center Authority

148.560. Definitions for KRS 148.560 to 148.569.

As used in KRS 148.560 to 148.569 , unless the context indicates otherwise:

  1. “Authority” means the Appalachian/Kentucky Artisans Gateway Center Authority;
  2. “Board” means the board of directors of the Appalachian/Kentucky Artisans Gateway Center Authority; and
  3. “Center” means the Appalachian/Kentucky Artisans Gateway Center.

History. Enact. Acts 2000, ch. 22, § 1, effective July 14, 2000.

148.561. Appalachian/Kentucky Artisans Gateway Center Authority.

The Appalachian/Kentucky Artisans Gateway Center Authority is created and established as an independent, de jure municipal corporation and political subdivision of the Commonwealth that shall be a public body corporate and politic. The authority shall develop, operate, and manage the Appalachian/Kentucky Artisans Gateway Center funded by 1998 Ky. Acts ch. 615, Part X, under the reference “Artisans Center — Berea.” The authority shall be attached to the Tourism, Arts and Heritage Cabinet for administrative purposes.

History. Enact. Acts 2000, ch. 22, § 2, effective July 14, 2000; 2005, ch. 95, § 19, effective June 20, 2005; 2009, ch. 16, § 20, effective June 25, 2009.

148.562. Board of directors — Appointment — Terms — Removal.

  1. The authority shall be governed by a board of directors consisting of thirteen (13) members as follows:
    1. Secretary of the Tourism, Arts and Heritage Cabinet, or his or her designee;
    2. Secretary of the Transportation Cabinet, or his or her designee;
    3. Secretary of the Education and Workforce Development Cabinet, or his or her designee;
    4. Secretary of the Finance and Administration Cabinet, or his or her designee;
    5. Three (3) members appointed by the Governor, one (1) to be a representative of the Kentucky Arts Council, and two (2) to be at-large members; and
    6. Six (6) members appointed by the mayor of the city of Berea to include two (2) representatives of Berea city government, two (2) representatives of Berea College recommended by the president of Berea College, one (1) representative of Eastern Kentucky University recommended by the president of Eastern Kentucky University, and one (1) at-large member.
  2. Members shall serve for staggered terms of four (4) years beginning August 1, 2000, except that of the initial appointments:
    1. One (1) appointment by the Governor and two (2) appointments by the mayor of the city of Berea shall each serve a term of four (4) years;
    2. Two (2) appointments by the mayor of the city of Berea and one (1) appointment by the Governor shall each serve a term of three (3) years;
    3. One (1) appointment by the Governor and one (1) appointment by the mayor of the city of Berea shall each serve a term of two (2) years; and
    4. One (1) appointment by the mayor of the city of Berea shall serve a term of one (1) year.
  3. The Governor shall appoint a chair from among the members of the board.
  4. A quorum of the board shall consist of seven (7) members, with a majority of members present authorized to act upon any matter legally before the authority.
  5. A member may be removed by the appointing authority only for neglect of duty, misfeasance, or malfeasance, and after being afforded an opportunity for a hearing in accordance with KRS Chapter 13B, relating to administrative hearings.

History. Enact. Acts 2000, ch. 22, § 3, effective July 14, 2000; 2005, ch. 95, § 20, effective June 20, 2005; 2006, ch. 211, § 19, effective July 12, 2006; 2009, ch. 11, § 12, effective June 25, 2009; 2009, ch. 16, § 21, effective June 25, 2009.

Legislative Research Commission Note.

(6/25/2009). This section was amended by 2009 Ky. Acts chs. 11 and 16, which do not appear to be in conflict and have been codified together.

148.563. Executive Director — Appointment — Duties — Staff.

  1. An executive director shall be appointed in accordance with KRS 12.050 .
    1. The executive director shall at all times attempt to accommodate the desires expressed by the board of directors.
    2. The executive director shall keep all minutes, records, and orders of the authority and shall be responsible for the preservation of all the documents. The documents shall be public records subject to KRS 61.870 to 61.884 , relating to open records.
  2. The staff of the authority, including its executive director, shall be employees of the Tourism, Arts and Heritage Cabinet.

History. Enact. Acts 2000, ch. 22, § 4, effective July 14, 2000; 2005, ch. 95, § 21, effective June 20, 2005; 2009, ch. 16, § 22, effective June 25, 2009.

148.564. Articles of incorporation — Executive committee of board — Authority to act on board’s behalf — Bylaws.

  1. The board shall develop articles of incorporation and appropriate documentation to establish its existence as a nonprofit corporation under KRS 58.180 .
  2. The board may establish from among its membership an executive committee, which shall have full authority to act between board meetings to the extent delegated by the board.
  3. The board may enact bylaws concerning the election of officers and other administrative procedures it deems necessary.

History. Enact. Acts 2000, ch. 22, § 5, effective July 14, 2000.

148.566. Authority’s powers and duties — Compensation of board members.

The authority shall have the following duties and authorities:

  1. The authority shall supervise the design, construction, and operation of the center and shall provide all management functions for the facility and for any other property acquired or leased under its powers established by law.
  2. The authority shall promote the growth and development of statewide tourism related to arts and crafts destinations throughout the state and shall ensure that its efforts conform to marketing and promotion strategies devised by the Tourism, Arts and Heritage Cabinet.
  3. The authority shall have the exclusive control of scheduling all exhibitions, performances, retail activities, and concessions in the center. The authority shall have a prior lien upon the property of any private exhibitor, concessionaire, or other person holding an exhibition or performance or operating a concession in the center and may sell the property upon ten (10) days’ notice to satisfy any indebtedness.
  4. The authority shall participate with local hotels and the travel industry to develop tourist packages and additional services to attract events, conferences, and conventions to the region.
  5. The authority may take, acquire, and hold property, and all interests therein, by deed, purchase, gift, devise, bequest, or lease, or by transfer from the State Property and Buildings Commission and may dispose of any property so acquired in any manner provided by law.
  6. The authority may adopt administrative regulations in accordance with KRS Chapter 13A only for governing the operation, maintenance, or use of property under its custody and control.
  7. The authority may levy a surcharge on tickets for functions held within the center to contribute to operating revenue.
  8. The authority may sue and be sued and maintain and defend legal actions in its name.
  9. Members of the authority shall serve without compensation, but shall be reimbursed for actual and necessary travel expenses incurred in the performance of their duties. The reimbursement shall be in accordance with administrative regulations promulgated under KRS Chapter 13A by the Finance and Administration Cabinet.

History. Enact. Acts 2000, ch. 22, § 6, effective July 14, 2000; 2005, ch. 95, § 22, effective June 20, 2005; 2009, ch. 16, § 23, effective June 25, 2009.

148.569. Revenues derived by authority — Permitted uses.

All revenues derived by the authority from the use of the center and from contributions to the center from other sources, and any additional revenues derived by the authority from any other source, shall be used solely for the expenses of the center, including payment on debt; the cost of management and operation of its facilities; the creation of an adequate reserve for repair, replacement, debt service, and capital improvements; the procurement of insurance; and promotional activities.

History. Enact. Acts 2000, ch. 22, § 7, effective July 14, 2000.

Kentucky Center for African-American Heritage

148.570. Kentucky Center for African-American Heritage — Purpose — Members — Meetings — Powers and duties.

  1. The Kentucky Center for African-American Heritage is hereby created to educate the public and to preserve and research the cultural heritage of African-Americans by establishing a center to showcase the contributions of Kentucky African-Americans to the Commonwealth, the nation, and the world. In addition to exhibit space, the center shall provide performance space for activities, such as but not limited to plays, poetry readings, and concerts.
  2. The Kentucky Center for African-American Heritage shall be governed by a board of directors who represent various African-American heritage interests. The board shall also reflect significant membership from the African-American community. On June 8, 2011, the board of directors of the African-American Heritage Foundation, Inc., the secretary of the Tourism, Arts and Heritage Cabinet or his or her designee, and the chair of the Kentucky African-American Heritage Commission shall be the initial board of directors of the center, and shall serve four (4) year terms. Upon the expiration of the four (4) year term of the initial board of directors, the membership of the board of directors shall be as follows:
    1. The secretary of the Tourism, Arts and Heritage Cabinet or the secretary’s designee;
    2. The chair of the Kentucky African-American Heritage Commission;
    3. One (1) member from an institution of higher learning;
    4. One (1) member who is an expert in African-American history;
    5. One (1) member from the arts community;
    6. Four (4) members with expertise in Kentucky, United States, or world history with an emphasis on the African-American experience. Of the four (4) members required by this paragraph, there shall be one (1) from central Kentucky, one (1) from northern Kentucky, one (1) from western Kentucky, and one (1) from eastern Kentucky;
    7. One (1) member at large with expertise in Kentucky, United States, or world history with an emphasis on the African-American experience;
    8. Five (5) members from the metro Louisville area. The mayor of Louisville shall submit five (5) separate lists of three (3) names for each of the appointments provided for in this paragraph. One (1) member shall be appointed from each list of names. At least one (1) of the members appointed from the mayor’s lists shall have experience in Kentucky, United States, or world history with an emphasis on the African-American experience; and
    9. Ten (10) members from the public at large.
  3. Members listed in subsection (2)(c) to (i) of this section shall be appointed by the Governor. Twelve (12) of the Governor’s initial appointees shall serve two (2) year terms. Eleven (11) of the Governor’s initial appointees shall serve four (4) year terms. Subsequent appointments by the Governor shall be for four (4) year terms, and members may be reappointed for subsequent terms. Any vacancy shall be filled by appointment of the Governor for the remainder of the unexpired term.
  4. Board members shall serve without compensation but may be reimbursed for actual and necessary expenses incurred in the performance of their duties.
  5. The board shall elect by a majority vote a chair, a vice chair, and any other officers deemed necessary.
  6. The board shall meet at least three (3) times per year. Notice of the time and location of each meeting shall be provided in writing to each member at least ten (10) days in advance of the meeting.
  7. A majority of the members shall constitute a quorum.
  8. Committees may be formed at the direction of the chair.
  9. The Kentucky Center for African-American Heritage may seek and accept grants or raise funds from any available source, public or private, to accomplish its responsibilities and achieve its objectives.
  10. The Kentucky Center for African-American Heritage shall be attached for administrative purposes to the Tourism, Arts and Heritage Cabinet, whose responsibilities shall include but are not limited to designating a staff person to coordinate board needs and providing other staff and services requested by the board to achieve its objectives under KRS 148.572 .

History. Enact. Acts 2011, ch. 84, § 1, effective June 8, 2011.

148.572. Objectives of Kentucky Center for African-American Heritage.

The objectives of the Kentucky Center for African-American Heritage, through the programs and activities of the center, shall be to:

  1. Educate the public and school-age children on the cultural, historical, political, and artistic contributions that African-Americans have made to the Commonwealth;
  2. Cooperate with the Kentucky Heritage Council, the Kentucky African-American Heritage Commission, and the Kentucky General Assembly on matters relating to Kentucky African-American heritage;
  3. Promote Kentucky African-American heritage by working with educational, arts, and humanities organizations;
  4. Recognize and sanction projects that advance wider knowledge of Kentucky African-Americans’ contributions to, and influence and impact on, life in Kentucky; and
  5. Support the mission of the Kentucky African-American Heritage Commission.

History. Enact. Acts 2011, ch. 84, § 2, effective June 8, 2011.

Iraq/Afghanistan War Memorial

148.580. Iraq/Afghanistan War Memorial Committee — Purpose — Members — Duties — Responsibilities of cabinet.

  1. There is established an Iraq/Afghanistan War Memorial Committee for the purpose of creating an Iraq/Afghanistan War Memorial in the city of Frankfort, Kentucky, or another location within the Commonwealth deemed more appropriate by the committee. Members of the committee shall include:
    1. The Governor or his or her designee;
    2. The secretary of the Tourism, Arts and Heritage Cabinet or his or her designee;
    3. The commissioner of the Kentucky Department of Veterans’ Affairs or his or her designee;
    4. The Adjutant General of the Kentucky Department of Military Affairs or his or her designee; and
    5. A member recommended by the Joint Executive Council of Veterans Organizations to be appointed by the Governor.
  2. The Iraq/Afghanistan War Memorial Committee shall be charged with the following duties:
    1. Choosing a design for the memorial;
    2. Determining a location for the memorial;
    3. Collecting the names of fallen service men and women to be included on the memorial;
    4. Requesting proposals for the construction of the memorial;
    5. Making recommendations on an entity to oversee the installation of the memorial;
    6. Making recommendations on an entity that will be responsible for maintenance and day-to-day upkeep of the memorial; and
    7. Seeking appropriations, gifts, grants, federal funds, and any other funds, both public and private, to assist with the costs associated with the establishment of the memorial, which shall be deposited in the Iraq/Afghanistan War Memorial fund established in KRS 148.582 .
  3. The Iraq/Afghanistan War Memorial Committee shall complete the requirements of subsection (2)(a) to (f) of this section no later than October 1, 2012. The committee shall produce a written report to be provided to the Governor, the secretary of the Tourism, Arts and Heritage Cabinet, the President of the Senate, and the Speaker of the House of Representatives. The report shall include, at a minimum, the following information:
    1. The results of the Iraq/Afghanistan War Memorial Committee’s work with regard to the requirements of subsection (2)(a) to (f) of this section;
    2. An update on the costs required to complete the Iraq/Afghanistan War Memorial; and
    3. The amount of money raised for the Iraq/Afghanistan War Memorial at the date the report is due.
  4. The Tourism, Arts and Heritage Cabinet shall have the following responsibilities related to the Iraq/Afghanistan War Memorial and the committee established to create the memorial:
    1. Provision of staff and administrative resources, not including reimbursement for any expense related to the committee’s work, for the committee; and
    2. Administration of the Iraq/Afghanistan War Memorial fund established in KRS 148.582 .

History. Enact. Acts 2012, ch. 67, § 1, effective July 12, 2012.

148.582. Iraq/Afghanistan War Memorial fund.

  1. The Iraq/Afghanistan War Memorial fund is hereby created as a separate trust fund in the State Treasury. The Iraq/Afghanistan War Memorial fund shall consist of amounts received from appropriations and any other proceeds from gifts, grants, federal funds, or any other funds, both public and private, made available for the purposes of KRS 148.580 and this section.
  2. The Iraq/Afghanistan War Memorial fund shall be administered by the Tourism, Arts and Heritage Cabinet.
  3. Amounts deposited in the Iraq/Afghanistan War Memorial fund shall be used only for the purpose of the establishment of the Iraq/Afghanistan War Memorial as provided in KRS 148.580 .
  4. Notwithstanding KRS 45.229 , Iraq/Afghanistan War Memorial fund amounts not expended at the close of a fiscal year shall not lapse but shall be carried forward into the next fiscal year.
  5. Any interest earnings of the Iraq/Afghanistan War Memorial fund shall become a part of the Iraq/Afghanistan War Memorial fund and shall not lapse.
  6. Moneys deposited in the fund are hereby appropriated for the purposes set forth in this section and shall not be appropriated or transferred by the General Assembly for any other purposes.

History. Enact. Acts 2012, ch. 67, § 2, effective July 12, 2012.

Legislative Research Commission Note.

(7/12/2012). The internal numbering of this statute has been modified by the Reviser of Statutes from the way it appeared in 2012 Ky. Acts ch. 67, sec. 2, under the authority of KRS 7.136(1). The words in the text were not changed.

Kentucky Sports Authority

148.590. Kentucky Sports Authority — Membership — Chairperson — Executive director — Functions. [Repealed]

HISTORY: Enact. Acts 2005, ch. 10, § 1, effective June 20, 2005; 2009, ch. 16, § 24, effective June 25, 2009; 2010, ch. 24, § 138, effective July 15, 2010; 2010, ch. 44, § 1, effective July 15, 2010; 2017 ch. 70, § 22, effective June 29, 2017; repealed by 2018 ch. 124, § 5, effective July 14, 2018.

Kentucky Trails System

148.610. Purpose of trails system.

  1. In order to provide for the ever-increasing outdoor recreation needs of an expanding population and in order to promote public access to, travel within, and enjoyment and appreciation of the outdoor, natural and remote areas of the state, trails should be established in natural, scenic areas of the state, and in and near urban areas.
  2. The purpose of KRS 148.610 to 148.780 is to provide the means for attaining these objectives by instituting a state system of scenic and recreation trails and by prescribing the methods and standards by which trails may be added to the system.

History. Enact. Acts 1974, ch. 288, § 2.

148.620. Definitions.

Except as otherwise required by the context, the following terms when used in KRS 148.610 to 148.780 shall be construed respectively to mean:

  1. “Commissioner” means the commissioner of the Department of Parks.
  2. “Department” means the Department of Parks.
  3. “System” means the “Kentucky Trails System” as established in KRS 148.610 to 148.780 and including all trails and trail segments, together with their rights-of-way.
  4. “Scenic easement” means a perpetual easement in land which is held for the benefit of the people of Kentucky, is specifically enforceable by its holder or beneficiary, and limits or obligates the holder of the servient estate, his heirs, and assigns with respect to their use and management of land and activities conducted thereon, the object of such limitations and obligations being the maintenance or enhancement of the natural beauty of the land in question or of areas affected by it.
  5. “Political subdivision” means any county, incorporated city, or other political subdivision of the state.

History. Enact. Acts 1974, ch. 288, § 3.

148.630. Classes of trails established.

The state system of trails shall be composed of:

  1. State scenic trails, which will be extended trails so located as to provide maximum potential for the appreciation of natural areas and for the conservation and enjoyment of the significant scenic, historic, natural, ecological, geological, and cultural qualities of the areas through which such trails pass. Each of these trails will be limited exclusively to foot use, except that the use of horses or off-road motorized vehicles or nonmotorized bicycles may also be permitted on segments of scenic trails where specifically designated by the department. Because of their extended length, the state scenic trails shall be supplemented by support facilities but only on that part of a trail which is in a state park or recreation area. Such support facilities may include, where deemed necessary and feasible, primitive shelters, fireplaces, safe water supply, and other related public-use facilities. These facilities shall comply with the state’s health standards. No open wood fires shall be permitted on state scenic trails except in areas with support facilities specifically designated for such purpose.
  2. State recreation trails, which will provide a variety of outdoor recreation uses in or reasonably accessible to urban areas. These trails may be of the following types: foot, horse, off-road motorized vehicles or nonmotorized bicycles as specifically designated by the department.
  3. Connecting or side trails, which will provide additional points of public access to state recreation trails, state scenic trails, or which will provide connections between such trails. They shall be of the nature of the trails they serve.

History. Enact. Acts 1974, ch. 288, § 4.

148.640. Criteria for various classes of trails.

Criteria for establishing the different classes of trails named in KRS 148.630 shall be as follows:

  1. State scenic trails shall traverse mostly scenic and natural areas and shall be of sufficient length that they cannot be travelled in one (1) day or less. Scenic trails shall be narrow paths causing the minimum disturbance to the natural environment and shall be restricted to foot travel with all other modes of locomotion prohibited, except as set forth in KRS 148.630(1) and 148.720 .
  2. Horse and bicycle trails shall have a surface and overhead clearance appropriate for their designated mode of locomotion. Motorized vehicles of any kind shall be barred from foot, horse, and bicycle trails, except as set forth in KRS 148.720 .

History. Enact. Acts 1974, ch. 288, § 5.

148.650. Establishment and designation of trails.

  1. State scenic trails shall be established and designated by the department on lands administered by the department and on lands under the jurisdiction of a state department, political subdivision, or private lands providing:
    1. Such trails are not located in nor traverse any state-owned wildlife management area; and
    2. Such trails meet the criteria established in KRS 148.610 to 148.780 and supplementary criteria as may be prescribed by the department.
  2. The department may establish and designate state recreation trails on lands administered by the department and on lands under the jurisdiction of a state department, political subdivision, or private lands providing:
    1. Such trails are not located in nor traverse any state-owned wildlife management area;
    2. Such trails are reasonably accessible to urban areas;
    3. Such trails meet the criteria established in KRS 148.610 to 148.780 and supplementary criteria as may be prescribed by the department; and
    4. Fee simple, scenic easements, or other rights are obtained from private landowners through which a state recreation trail may pass. The department may establish and designate state recreation trails on lands under the jurisdiction of a federal agency, when in the opinion of the federal agency and the commissioner such lands may be so developed under the provisions of federal law and the provisions of paragraphs (b) and (c) of this subsection.
  3. As provided in this section, trails within park, forest, recreation areas, state natural areas, or any other public area excluding state-owned wildlife management areas may be established and designated state recreation trails by the department.
  4. Connecting or side trails within park, forest, recreation areas, or natural areas may be established, designated, and marked as components of a state recreation or state scenic trail.

History. Enact. Acts 1974, ch. 288, § 6.

148.660. Proposals for additions to system.

The commissioner shall study and from time to time submit to the Governor and the General Assembly proposals for additions to the state scenic trails system and recreation trails that have been designated by the department, regarding rights-of-way that have been established and on the program for implementing KRS 148.610 to 148.780 . Each proposal shall include a short statement on the significance of the various trails to the system.

History. Enact. Acts 1974, ch. 288, § 7; 1998, ch. 373, § 1, effective July 15, 1998.

148.670. Process of locating routes of trails.

The process of locating routes of trails in the system shall be as follows:

  1. For state scenic trails, the department shall select a route. The selected route shall be compatible with the preservation and enhancement of the environment it traverses. Reasonable effort shall be made to minimize any adverse effects upon adjacent landowners and users. Notice of the selected route shall be published by the department in a newspaper of general circulation in the area in which the trail is located, together with appropriate maps and descriptions.
  2. For state recreation trails and for connecting or side trails, the department shall select the route; provided, however, that when a route shall traverse land within the jurisdiction of a governmental unit or political subdivision, the department shall consult with such unit or such subdivision prior to its final determination for the location of the route.
  3. In selecting routes and implementing KRS 148.610 to 148.780 , the department is encouraged to confer with the recognized and established organizations primarily interested in trail development, conservation, and outdoor recreation. Furthermore, the General Assembly encourages citizen participation in trail acquisition, construction, development, and maintenance where such activities will not conflict with the purpose of KRS 148.610 to 148.780 .
  4. In the selection of the route for any trail, when the trail reaches an area of crop or fenced pasture land, the trail shall be so located as not to interfere in the growing of crops, or with the livestock, or pasture land, and such trail may then follow existing farm roads. The owner of such farm lands may enter a written agreement with the department to grant permission for the crossing of such crop or pasture land.

History. Enact. Acts 1974, ch. 288, § 8.

148.680. Information forwarded by state agencies.

All state agencies shall inform the commissioner of any proceedings, studies, or other activities which may affect any component of the system.

History. Enact. Acts 1974, ch. 288, § 9.

148.690. Determination of boundaries of abandoned rights-of-way and abandoned railroad corridors — Evaluation of potential for conversion to railtrail.

  1. The department shall review all formal declarations of railroad right-of-way abandonments by the Surface Transportation Board or other agency with jurisdiction and may review former railroad corridors for possible inclusion in the state trails system. The commissioner shall, within three (3) years after the route of a trail or trail segment included in the system has been located, determine the boundaries of the right-of-way to be associated with that trail. Such boundaries shall be established in such a manner that they protect the scenic value of the trail.
  2. The commissioner is authorized to develop effective procedures to assure that, wherever practicable, utility rights-of-way, abandoned railroad corridors, or similar properties having value for trail purposes may be made available for such use; however, the commissioner shall take into consideration the rights of adjacent property owners in the development of any such procedures. Other departments of state government having jurisdiction, control over, or information concerning the use, abandonment, or disposition of rights-of-way, railroad corridors, and similar properties that may be suitable for trail purposes shall cooperate with the commissioner in the transfer of these rights for trail use. These procedures shall include, at a minimum, that, for every railroad corridor that is the subject of a request for federal authority to discontinue service or for federal regulatory abandonment, the commissioner shall evaluate the potential of converting that corridor into a railtrail. The commissioner shall cause a preliminary review to be completed within thirty (30) days of the publication of the request for federal authority in the Federal Register. The commissioner shall cause a final review to be completed ninety (90) days after the publication of the request for federal authority in the Federal Register. The commissioner shall timely transmit copies of these reviews to the Legislative Research Commission and to the Commonwealth’s Railtrail Development Office in the Department for Local Government as they are completed. If either review indicates the possibility of converting the corridor into a railtrail, the commissioner may participate in the federal proceeding to request that the corridor be railbanked in accordance with federal law or to request the imposition of a public use condition.

History. Enact. Acts 1974, ch. 288, § 10; 1998, ch. 373, § 2, effective July 15, 1998; 2000, ch. 338, § 5, effective July 14, 2000; 2007, ch. 47, § 76, effective June 26, 2007; 2010, ch. 117, § 73, effective July 15, 2010.

148.700. Acquisition of land or interest in land.

Within the exterior boundaries of the right-of-way, the commissioner may acquire, on behalf of the state, lands in fee title, or interest in land in the form of scenic easements, or cooperative agreements. Acquisition of land or of interest therein may be by gift, purchase with donated funds, funds appropriated by the General Assembly, proceeds from the sale of bonds, exchange, assumption of property tax payments, or otherwise. Acquisition of land or interest therein shall be accomplished with all possible speed. Such acquisition should not interfere with the growing of crops, or with the livestock, or pasture land on the remaining property of the farm owner.

History. Enact. Acts 1974, ch. 288, § 11.

148.710. Preservation of natural vegetation, etc.

Within the exterior boundaries of the right-of-way, the natural vegetation shall be kept undisturbed except for any clearing required for construction of the trail, occasional vistas, or trail-use facilities described in KRS 148.750 . The department shall make every effort to avoid any use of the right-of-way that is incompatible with the purposes for which the trails were established. Development and management of each segment of the state trails system shall be designed to harmonize with and complement any established multiple-use plans for that specific area in order to insure continual maximum benefits from the land. Other uses along the trail which will not substantially interfere with the nature and purposes of the trail may be permitted by the department; provided, that the owner of real property adjacent to any part of the system may hunt on that portion of the system which is adjacent to his property.

History. Enact. Acts 1974, ch. 288, § 12.

148.720. Limitation on use of motorized vehicles.

The use of motorized vehicles by the general public within the right-of-way of any state scenic or recreation trail shall be prohibited and nothing in KRS 148.610 to 148.780 shall be construed as authorizing the use of motorized vehicles in these rights-of-way; provided, that the department shall establish regulations which shall authorize the use of motorized vehicles when such vehicles are required to meet emergencies where life or health is at risk, for the maintenance of established trails, or to enable present or adjacent landowners or land users to have access to their lands or timber rights where no reasonable alternative method of access exists or could be constructed. Prosecution for violation of this section may be initiated by a peace officer who witnessed an offense in violation of this section or by any private citizen who witnessed any violation of this section who is willing to make the initial charge and testify for the state.

History. Enact. Acts 1974, ch. 288, § 13.

148.730. Effect of statutes on lands which are a part of more than one system.

Any component of the system that is a part of any state park, recreation area, or similar area shall be subject to the provisions of KRS 148.610 to 148.780 and the acts under which the other areas are administered, and in the case of conflict between the provisions of these acts the more restrictive provisions shall apply.

History. Enact. Acts 1974, ch. 288, § 14.

148.740. Trail markers.

The department, in consultation with appropriate governmental agencies, and public and private organizations, shall establish a marker for trails contained in the system. An additional appropriate symbol characterizing specific trails may be included on the marker. The markers shall be placed at all access points, together with signs indicating the modes of locomotion that are prohibited for the trail; provided, that where the trail constitutes a portion of a national scenic trail, use of the national scenic trail uniform marker shall be considered sufficient. The route of the trail and the boundaries of the right-of-way shall be marked with paint or other simple means.

History. Enact. Acts 1974, ch. 288, § 15.

148.750. Administration of system — Responsibility.

The Kentucky Trails System shall be administered by the department according to the policies and criteria set forth in KRS 148.610 to 148.780 . The department shall have the responsibility for maintaining the trails and building bridges, campsites, shelters, and related public-use facilities where required. The department shall establish a trails coordinator to carry out the purposes of KRS 148.610 to 148.780 .

History. Enact. Acts 1974, ch. 288, § 16; 1998, ch. 373, § 3, effective July 15, 1998.

148.760. Procedure for relocation.

Segments of the state trails may be relocated when such relocation is deemed necessary to preserve or enhance the values for which the trails were established. Relocation may be accomplished by the department after consultation with other governmental agencies involved and following publication of notice in a newspaper of general circulation, together with maps and descriptions. In establishing the new location and right-of-way the procedures set forth in KRS 148.670 through 148.710 , inclusive, shall be followed.

History. Enact. Acts 1974, ch. 288, § 17.

148.770. Coordination with national trails system.

Nothing in KRS 148.610 to 148.780 shall preclude a component of the state trails system from becoming a part of the national trails system. The commissioner shall coordinate the state trails system with the national trails system and is directed to encourage and assist any federal studies for inclusion of the state’s trails in the national trails system. The commissioner may enter into written cooperative agreements for joint federal-state administration of a state component of the national trails system, provided such agreements for administration of land uses are not less restrictive than those set forth in KRS 148.610 to 148.780 .

History. Enact. Acts 1974, ch. 288, § 18.

148.775. Coordination of efforts to develop bicycling opportunities.

The department shall coordinate its efforts with and work with the Transportation Cabinet in so far as the provisions of KRS 148.610 to 148.780 and the provisions of KRS 174.100 , 174.120 , and 174.125 can be used to develop bicycling opportunities in the state.

History. Enact. Acts 1998, ch. 373, § 4, effective July 15, 1998.

148.780. Owner’s consent required for access to or use of premises.

Nothing in KRS 148.610 to 148.780 shall be construed as authorizing any person to enter upon or use the land in any manner without the consent of the owner.

History. Enact. Acts 1974, ch. 288, § 19.

148.790. Citation of KRS 148.610 to 148.780.

KRS 148.610 to 148.780 may be cited as the “Kentucky Trails System Act.”

History. Enact. Acts 1974, ch. 288, § 1.

Kentucky Recreational Trails Authority

148.795. Kentucky Recreational Trails Authority — Purpose — Membership — Meetings — Land use agreements for recreational purposes — General use permits — Authority may hold property for public use — Proceeds. [Repealed]

History. Enact. Acts 2006, ch. 152, § 11, effective July 12, 2006; 2008, ch. 70, § 1, effective July 15, 2008; 2009, ch. 16, § 25, effective June 25, 2009; 2010, ch. 24, § 139, effective July 15, 2010; 2010, ch. 65, § 5, effective July 15, 2010; repealed by 2017 ch. 164, § 9, effective June 29, 2017.

Compiler's Notes

This section was (Enact. Acts 2006, ch. 152, § 11, effective July 12, 2006; 2008, ch. 70, § 1, effective July 15, 2008; 2009, ch. 16, § 25, effective June 25, 2009; 2010, ch. 24, § 139, effective July 15, 2010; 2010, ch. 65, § 5, effective July 15, 2010) was repealed by Acts 2017, ch. 164, § 9, effective June 29, 2017.

148.796. Strategy to increase recreational activity on private land — Landowner’s permission required for entry on private land. [Repealed]

History. Enact. Acts 2008, ch. 70, § 2, effective July 15, 2008; repealed by 2017 ch. 164, § 9, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 2008, ch. 70, § 2, effective July 15, 2008) was repealed by Acts 2017, ch. 164, § 9, effective June 29, 2017.

State Parks Capital Maintenance and Renovation

148.800. Park capital maintenance and renovation fund.

There is hereby established in the State Treasury a separate trust and agency account to be known as the “Park Capital Maintenance and Renovation Fund” to be administered by the Department of Parks, with the approval of the Governor’s Office for Policy and Management, for the purposes provided for in KRS 148.800 to 148.810 . The balance of any moneys accruing to this fund in any fiscal year shall not lapse but shall be carried forward to the next fiscal year or biennium.

History. Enact. Acts 1994, ch. 433, § 1, effective July 15, 1994.

148.805. Moneys attributable to increases in fees and charges after August 1, 1994, to be deposited in fund.

  1. On or after August 1, 1994, there shall be deposited in the fund created in KRS 148.800 , the moneys attributable to any increase in fees and charges at the state’s parks made by the department and designated by the commissioner as an increase for the purpose of KRS 148.800 to 148.810 .
  2. Any increase in fees and charges made pursuant to subsection (1) of this section shall be used to supplement rather than to replace other anticipated department funding sources or budgeted expenditure accounts.

History. Enact. Acts 1994, ch. 433, § 2, effective July 15, 1994.

148.810. Use of moneys in fund.

  1. Funds in the park capital maintenance and renovation fund shall be used for the maintenance and renovation of park facilities. Maintenance shall include equipment purchases, used primarily in the maintenance of infrastructure and park facilities, and expenditures related to preventative maintenance of capital assets. Renovation includes the replacement of depreciable assets, including furnishings, and purchase of depreciable assets which enhance the quality of the parks.
  2. In no case shall the moneys from the fund be expended on:
    1. New capital project construction;
    2. Any new maintenance or renovation project estimated to cost four hundred thousand dollars ($400,000) or more in cash or other consideration; or
    3. Any new item of equipment estimated to cost one hundred thousand dollars ($100,000) or more in cash or other consideration.
  3. Moneys in the park capital maintenance and renovation fund may be used to provide additional funding for any capital project, as defined in KRS 45.750 , that received line item authorization from the General Assembly in any executive branch budget bill only if the state budget director or the director’s designee submits the proposed allocation to the Capital Projects and Bond Oversight Committee at least fourteen (14) days prior to the committee meeting, in accordance with the provisions of KRS 45.800 .
  4. Notwithstanding the provisions of KRS 45.760(6), moneys in the park capital maintenance and renovation fund shall not be used to provide additional funding for any capital project, as defined in KRS 45.750 , that received line item authorization from the General Assembly in any executive branch budget bill, and that has already received maximum additional funding as permitted by KRS 45.760(6) unless the state budget director or the director’s designee submits the proposed allocation to the Capital Projects and Bond Oversight Committee at least fourteen (14) days prior to the committee meeting, in accordance with the provisions of KRS 45.800 . In addition to the requirements of KRS 45.800 , the submission shall include a written certification that:
    1. Due to extraordinary circumstances, which shall be described, additional funds are necessary for the project to be completed in a manner that will allow it to serve its intended purpose; and
    2. The use of funds from the parks capital maintenance and renovation fund do not unduly compromise the routine maintenance and renovation needs that the fund was created to address.
  5. The commissioner shall, by September 1 of each year, report to the Legislative Research Commission the receipts, expenditures, and any amounts carried forward for the fiscal year ending on June 30 of that year from the fund established in KRS 148.800 .

History. Enact. Acts 1994, ch. 433, § 3, effective July 15, 1994; 1998, ch. 26, § 1, effective July 15, 1998; 2009, ch. 78, § 38, effective June 25, 2009.

Research References and Practice Aids

2020-2022 Budget Reference.

See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, M, 4, (1) at 901.

148.815. State Parks Commission. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 433, § 4, effective July 15, 1994) was repealed by Act 2005, ch. 95, § 54, effective June 20, 2005.

148.820. Meetings of commission — Duties of commission. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 433, § 5, effective July 15, 1994) was repealed by Act 2005, ch. 95, § 54, effective June 20, 2005.

148.825. Inspection of state park facilities by commission — Access to grounds, buildings, and records. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 433, § 6, effective July 15, 1994) was repealed by Act 2005, ch. 95, § 54, effective June 20, 2005.

Promotion of Kentucky Products

148.830. Program to promote sale of Kentucky-grown products in state resort parks — Administrative regulations.

The Department of Parks shall establish a promotion program within the Department of Parks to promote the sale of Kentucky-grown agricultural products, as defined in KRS 260.016 , in state resort park restaurants, gift shops, concessions, and golf courses. The promotion program shall operate in conjunction with the Kentucky Proud™ Program in accordance with KRS 260.017 . The commissioner of the Department of Parks shall promulgate administrative regulations in accordance with KRS Chapter 13A to implement the promotion program no later than October 1, 2011.

History. Enact. Acts 2002, ch. 344, § 3, effective July 15, 2002; 2008, ch. 154, § 2, effective July 15, 2008; 2011, ch. 19, § 2, effective June 8, 2011.

148.832. State resort park contracts to promote sale of Kentucky-grown products.

  1. Any contract for the provision and sale of food services and agricultural products in state resort park restaurants, gift shops, concessions, and golf courses shall promote the sale of Kentucky-grown agricultural products under the Kentucky Proud™ Program in accordance with KRS 45A.645 , 148.830 , 148.835 , and 260.017 .
  2. Only contracts entered into or renewed after June 8, 2011, shall be required to comply with the provisions of this section.

History. Enact. Acts 2011, ch. 19, § 1, effective June 8, 2011.

148.835. Promotion program requiring state parks to purchase Kentucky agricultural products — Administrative regulations.

The Department of Parks shall establish a promotion program within the Department of Parks to require that if purchasing agricultural products, state parks purchase Kentucky-grown agricultural products if the purchasing officer determines that they are available, can be priced on the menu to encourage their sale, and meet the quality standards set by the Department of Parks. The commissioner of the Department of Parks shall promulgate administrative regulations in accordance with KRS Chapter 13A to implement the promotion program as set forth in this section no later than October 1, 2011.

History. Enact. Acts 2002, ch. 344, § 4, effective April 23, 2002; 2011, ch. 19, § 3, effective June 8, 2011.

148.840. Steering committee to assist in promotion — Recommendation — Reports — Termination.

  1. The Department of Parks shall establish a steering committee which shall consist of:
    1. The secretary of the Finance and Administration Cabinet, or a designee;
    2. The Commissioner of Agriculture, or a designee;
    3. The commissioner of the Department of Parks, or a designee;
    4. The director of the Agriculture Development Board, or a designee;
    5. The coordinator of the Kentucky State University Aquaculture Program, or a designee;
    6. The chairperson of the horticulture department at the University of Kentucky, or a designee; and
    7. Two (2) members of organizations and associations representing the Kentucky farming community, appointed by the Commissioner of Agriculture.
  2. The steering committee shall plan and assist in the implementation of the promotion program identified in KRS 148.830 and 148.835 .
  3. The steering committee shall recommend by October 1, 2011, the structure and objectives of the promotion program identified in KRS 148.830 and 148.835 .
  4. Upon implementation of the promotion program identified in KRS 148.830 and 148.835 , the steering committee shall evaluate the promotion program and submit an initial report to the Governor, the secretary of the Finance and Administration Cabinet, and the Legislative Research Commission no later than July 1, 2012, and subsequent annual reports no later than July 1 of each year thereafter.
  5. The steering committee shall continue to meet at least once each year at a date and location to be determined by its members to ensure the continuation of the promotion program.

History. Enact. Acts 2002, ch. 344, § 5, effective July 15, 2002; 2011, ch. 19, § 4, effective June 8, 2011.

Financing of Tourism Development

148.850. Tourism Development Finance Authority created — Members — Terms — Conflicts of interest — Powers.

  1. The Tourism Development Finance Authority is created within the Tourism, Arts and Heritage Cabinet. The authority shall consist of nine (9) members appointed by the Governor, at least one (1) of whom shall represent individuals with professional experience in financial management or economic development. The members of the authority shall serve without compensation but shall be entitled to reimbursement for their necessary expenses incurred in performing their duties. Of the members initially appointed to the authority, two (2) members shall be appointed for terms of one (1) year, three (3) members shall be appointed for terms of two (2) years, and two (2) members shall be appointed for terms of three (3) years. Thereafter, the members of the authority shall be appointed for terms of four (4) years.
  2. The Governor shall appoint one (1) member as chairperson of the Tourism Development Finance Authority. The members of the authority may elect other officers as they deem necessary.
  3. No member of the Tourism Development Finance Authority shall either directly or indirectly be a party to, or be in any manner interested in, any contract or agreement with the authority for any matter, cause, or thing that creates any liability or indebtedness against the authority.
  4. The Tourism Development Finance Authority shall have the powers necessary to carry out the purposes of this section, KRS 139.536 , and KRS 148.851 to 148.860 , including but not limited to the power to:
    1. Employ fiscal consultants, attorneys, appraisers, and other agents on behalf of the authority whom the authority deems necessary or convenient for the preparation and administration of agreements and documents necessary or incidental to any project. The fees for the services provided by persons employed on behalf of the authority shall be paid by the beneficiary of a loan under this program directly to the person providing consultation, advisory, legal, or other services; and
    2. Impose and collect fees and charges in connection with any transaction and provide for reasonable penalties for delinquent payment of fees and charges.

History. Enact. Acts 2001, ch. 1, § 1, effective June 21, 2001; 2005, ch. 95, § 23, effective June 20, 2005; 2009, ch. 16, § 26, effective June 25, 2009; 2017 ch. 132, § 2, effective June 29, 2017; 2021 ch. 156, § 24, effective March 29, 2021.

148.851. Definitions for KRS 148.851 to 148.860.

As used in 148.851 to 148.860 , unless the context clearly indicates otherwise:

  1. “Agreement” means the tourism development agreement entered into between the authority and an approved company;
  2. “Approved company” means any eligible company that has received final approval to receive incentives provided under KRS 148.853 ;
  3. “Approved costs” means the amount of eligible costs approved by the authority upon completion of the project;
  4. “Authority” means the Kentucky Tourism Development Finance Authority as set forth in KRS 148.850 ;
  5. “Cabinet” means the Tourism, Arts and Heritage Cabinet;
  6. “Crafts and products center” means a facility primarily devoted to the display, promotion, and sale of Kentucky products, and at which a minimum of eighty percent (80%) of the sales occurring at the facility are of Kentucky arts, crafts, or agricultural products;
  7. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity operating or intending to operate a tourism development project;
  8. “Eligible costs” means:
    1. Obligations incurred for labor and amounts paid to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the acquisition, construction, equipping, and installation of a tourism development project;
    2. The costs of acquiring real property or rights include the acquisition of real property by a leasehold interest with a minimum term of ten (10) years, and any costs incidental thereto;
    3. The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of the acquisition, construction, equipping, and installation of a tourism development project which is not paid by the vendor, supplier, deliveryman, contractor, or otherwise provided;
    4. All costs of architectural and engineering services, including but not limited to estimates, plans and specifications, preliminary investigations, and supervision of construction and installation, as well as for the performance of all the duties required by or consequent to the acquisition, construction, equipping, and installation of a tourism development project;
    5. All costs required to be paid under the terms of any contract for the acquisition, construction, equipping, and installation of a tourism development project;
    6. All costs required for the installation of utilities, including but not limited to water, sewer, sewer treatment, gas, electricity and communications, and including off-site construction of the facilities paid for by the approved company; and
    7. All other costs comparable with those described in this subsection, excluding costs subject to refund under KRS 154.20-202 , 154.20-204 , 154.20-206 , 154.20-208 , and 154.20-210 or Subchapter 31 of KRS Chapter 154;
  9. “Enhanced incentive county” has the same meaning as in KRS 154.32-010 ;
  10. “Entertainment destination center project” means a facility that meets the requirements of KRS 148.853(2)(b);
  11. “Final approval” means the action taken by the authority authorizing the eligible company to receive incentives under KRS 139.536 and 148.851 to 148.860 ;
  12. “Full-service lodging facility” means a facility that provides overnight sleeping accommodations, including private bathrooms and all of the following:
    1. On-site dining facilities;
    2. Room service;
    3. Catering: and
    4. Meeting space;
  13. “Incentives” means the Kentucky sales tax refund as prescribed in KRS 139.536 ;
  14. “Kentucky sales tax” means the sales tax imposed by KRS 139.200 ;
  15. “Lodging facility project” means a full-service lodging facility that:
    1. Is located on recreational property owned or leased by the Commonwealth or the federal government;
    2. Involves the restoration or rehabilitation of a structure that:
      1. Is listed individually on the National Register of Historic Places; or
      2. Is located in the National Register Historic District; and is certified by the Kentucky Heritage Council as contributing to the historic significance of the district, and the rehabilitation or restoration of the structure has been approved in advance by the Kentucky Heritage Council;
    3. Is an integral part of a major convention or sports facility;
    4. Is located:
      1. Within a fifty (50) mile radius of a property listed on the National Register of Historic Places with a current function of recreation and culture; and
      2. In any of the one hundred (100) least-populated counties in the Commonwealth, in terms of population density, according to the most recent census;
    5. Is located on property:
      1. Owned by the Commonwealth, or leased by the Commonwealth from the federal government;
      2. Acquired for use in the state park system pursuant to KRS 148.028 ; and
      3. Operated by the Kentucky Department of Parks pursuant to KRS 148.021 or the Kentucky Horse Park Commission pursuant to KRS 148.258 to 148.320 ;
    6. Is located on property:
      1. Owned or leased by the federal government and under the control of the Department of the Interior; or
      2. Owned by the Commonwealth and in the custody of the State Fair Board as provided in KRS 247.140 ;
    7. Is part of a tourism attraction project, entertainment destination center project, or theme restaurant destination attraction project and the full-service lodging facility represents less than fifty percent (50%) of the total eligible costs; or
    8. Has not less than five hundred (500) guest rooms:
  16. “Net positive fiscal impact” means the amount by which increased state tax revenues will exceed the incentives given;
  17. “Preliminary approval” means the action taken by the authority conditionally approving an eligible company for the incentives under KRS 139.536 and 148.851 to 148.860 ;
  18. “Recreational facility” means a structure or outdoor area that:
    1. Provides visitors recreational opportunities, including but not limited to amusement parks, boating, hiking, horseback riding, hunting, fishing, camping, wildlife viewing, live theater, rock climbing, and all-terrain vehicle trails; and
    2. Serves as a likely destination where individuals who are not residents of the Commonwealth would remain overnight in commercial lodging at or near the recreational facility;
  19. “Theme restaurant destination attraction project” means a restaurant facility that meets the requirements for incentives under KRS 148.853(2)(c);
    1. “Tourism attraction project” means: (20) (a) “Tourism attraction project” means:
      1. A cultural or historical site;
      2. A recreational facility;
      3. An entertainment facility;
      4. An area of natural phenomenon or scenic beauty; or
      5. A Kentucky crafts and products center;
    2. “Tourism attraction project” does not include facilities that are primarily devoted to the retail sale of goods, other than a Kentucky crafts and products center, or a tourism attraction where the sale of goods is a secondary and subordinate component of the attraction; and
  20. “Tourism development project” means:
    1. A tourism attraction project;
    2. A theme restaurant destination attraction project;
    3. An entertainment destination center project; or
    4. A lodging facility project.

History. Repealed, reenact. and amend., Acts 2001, ch. 1, § 2, effective June 21, 2001; 2002, ch. 338, § 43, effective April 11, 2002; 2003, ch. 73, § 3, effective March 18, 2003; 2004, ch. 105, § 23, effective July 13, 2004; 2005, ch. 95, § 24, effective June 20, 2005; 2005, ch. 168, § 46, effective June 20, 2005; 2005, ch. 184, § 15, effective June 20, 2005; 2006, ch. 149, § 206, effective July 12, 2006; 2009, ch. 16, § 27, effective June 25, 2009; 2009 (1st Ex. Sess.), ch. 1, § 36, effective June 26, 2009; 2014, ch. 104, § 1, effective July 15, 2014.

Legislative Research Commission Note.

(6/26/2009). For the purpose of clarification and after consultation with the drafter, the internal numbering of renumbered subsection (14) of this statute has been changed by the Reviser of Statutes from the way it appeared in 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 36, subsec. (13), under the authority of KRS 7.136 .

(6/26/2009). In 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 36, because of a manifest clerical or typographical error, the definition of “authority,” referring to the Kentucky Tourism Development Finance Authority, was inadvertently deleted from this statute. It has been restored in codification by the Reviser of Statutes under the authority of KRS 7.136 and subsequent subsections have been renumbered accordingly.

(3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that the amendments to KRS 148.851 in 2005 Ky. Acts ch. 168, sec. 46, “relating to income tax changes and incentives, shall apply to tax years beginning on or after January 1, 2005.”

(6/21/2001). This is former KRS 154.29-010 as amended by 2001 Ky. Acts ch. 1, sec. 2, and renumbered by the Reviser of Statutes under KRS 7.136(1).

148.853. Legislative findings — Qualifications for incentives — Incentives available.

  1. The General Assembly finds and declares that:
    1. The general welfare and material well-being of the citizens of the Commonwealth depend in large measure upon the development of tourism in the Commonwealth;
    2. It is in the best interest of the Commonwealth to provide incentives for the creation of new tourism attractions and the expansion of existing tourism attractions within the Commonwealth in order to advance the public purposes of relieving unemployment by preserving and creating jobs that would not exist if not for the incentives offered by the authority to approved companies, and by preserving and creating sources of tax revenues for the support of public services provided by the Commonwealth;
    3. The authorities granted by KRS 148.851 to 148.860 are proper governmental and public purposes for which public moneys may be expended; and
    4. That the creation or expansion of tourism development projects is of paramount importance mandating that the provisions of KRS 139.536 and KRS 148.851 to 148.860 be liberally construed and applied in order to advance public purposes.
  2. To qualify for incentives provided in KRS 139.536 and 148.851 to 148.860 , the following requirements shall be met:
    1. For a tourism attraction project:
      1. The total eligible costs shall exceed one million dollars ($1,000,000), except for a tourism attraction project located in a county designated as an enhanced incentive county at the time the eligible company becomes an approved company as provided in KRS 148.857(6), the total eligible costs shall exceed five hundred thousand dollars ($500,000);
      2. In any year, including the first year of operation, the tourism attraction project shall be open to the public at least one hundred (100) days; and
      3. In any year following the third year of operation, the tourism attraction project shall attract at least twenty-five percent (25%) of its visitors from among persons who are not residents of the Commonwealth;
    2. For an entertainment destination center project:
      1. The total eligible costs shall exceed five million dollars ($5,000,000);
      2. The facility shall contain a minimum of two hundred thousand (200,000) square feet of building space adjacent or complementary to an existing tourism attraction project or a major convention facility;
      3. The incentives shall be dedicated to a public infrastructure purpose that shall relate to the entertainment destination center project;
      4. In any year, including the first year of operation, the entertainment destination center project shall:
        1. Be open to the public at least one hundred (100) days per year;
        2. Maintain at least one (1) major theme restaurant and at least three (3) additional entertainment venues, including but not limited to live entertainment, multiplex theaters, large-format theater, motion simulators, family entertainment centers, concert halls, virtual reality or other interactive games, museums, exhibitions, or other cultural and leisure-time activities; and
        3. Maintain a minimum occupancy of sixty percent (60%) of the total gross area available for lease with entertainment and food and drink options not including the retail sale of tangible personal property; and
      5. In any year following the third year of operation, the entertainment destination center project shall attract at least twenty-five percent (25%) of its visitors from among persons who are not residents of the Commonwealth;
    3. For a theme restaurant destination attraction project:
      1. The total eligible costs shall exceed five million dollars ($5,000,000);
      2. In any year, including the first year of operation, the attraction shall:
        1. Be open to the public at least three hundred (300) days per year and for at least eight (8) hours per day; and
        2. Generate no more than fifty percent (50%) of its revenue through the sale of alcoholic beverages;
      3. In any year following the third year of operation, the theme restaurant destination attraction project shall attract a minimum of fifty percent (50%) of its visitors from among persons who are not residents of the Commonwealth; and
      4. The theme restaurant destination attraction project shall:
        1. At the time of final approval, offer a unique dining experience that is not available in the Commonwealth within a one hundred (100) mile radius of the attraction;
        2. In any year, including the first year of operation, maintain seating capacity of four hundred fifty (450) guests and offer live music or live musical and theatrical entertainment during the peak business hours that the facility is in operation and open to the public; or
        3. Within three (3) years of the completion date, the attraction shall obtain a top two (2) tier rating by a nationally accredited service and shall maintain a top two (2) tier rating through the term of the agreement;
    4. For a lodging facility project:
        1. The eligible costs shall exceed five million dollars ($5,000,000) unless the provisions of subdivision b. of this subparagraph apply. 1. a. The eligible costs shall exceed five million dollars ($5,000,000) unless the provisions of subdivision b. of this subparagraph apply.
          1. If the lodging facility is an integral part of a major convention or sports facility, the eligible costs shall exceed six million dollars ($6,000,000); and b. i. If the lodging facility is an integral part of a major convention or sports facility, the eligible costs shall exceed six million dollars ($6,000,000); and
          2. If the lodging facility includes five hundred (500) or more guest rooms, the eligible costs shall exceed ten million dollars ($10,000,000); and
      1. In any year, including the first year of operation, the lodging facility shall:
        1. Be open to the public at least one hundred (100) days; and
        2. Attract at least twenty-five percent (25%) of its visitors from among persons who are not residents of the Commonwealth;
    5. Any tourism development project shall not be eligible for incentives if it includes material determined to be lewd, offensive, or deemed to have a negative impact on the tourism industry in the Commonwealth; and
    6. An expansion of any tourism development project shall in all cases be treated as a new stand-alone project.
  3. The incentives offered under the Kentucky Tourism Development Act shall be as follows:
    1. An approved company may be granted a sales tax incentive based on the Kentucky sales tax imposed on sales generated by or arising at the tourism development project; and
      1. For a tourism development project other than a lodging facility project described in KRS 148.851(14)(e) or (f), or a tourism attraction project described in subparagraph 2. of this paragraph: (b) 1. For a tourism development project other than a lodging facility project described in KRS 148.851(14)(e) or (f), or a tourism attraction project described in subparagraph 2. of this paragraph:
        1. A sales tax incentive shall be allowed to an approved company over a period of ten (10) years, except as provided in subparagraph 5. of this paragraph; and
        2. The sales tax incentive shall not exceed the lesser of the total amount of the sales tax liability of the approved company and its lessees or a percentage of the approved costs as specified by the agreement, not to exceed twenty-five percent (25%);
      2. For a tourism attraction project located in an enhanced incentive county at the time the eligible company becomes an approved company as provided in KRS 148.857(6):
        1. A sales tax incentive shall be allowed to the approved company over a period of ten (10) years; and
        2. The sales tax incentive shall not exceed the lesser of the total amount of the sales tax liability of the approved company and its lessees or a percentage of the approved costs as specified by the agreement, not to exceed thirty percent (30%);
      3. For a lodging facility project described in KRS 148.851(14)(e) or (f):
        1. A sales tax incentive shall be allowed to the approved company over a period of twenty (20) years; and
        2. The sales tax incentive shall not exceed the lesser of total amount of the sales tax liability of the approved company and its lessees or a percentage of the approved costs as specified by the agreement, not to exceed fifty percent (50%);
      4. Any unused incentives from a previous year may be carried forward to any succeeding year during the term of the agreement until the entire specified percentage of the approved costs has been received through sales tax incentives; and
      5. If the approved company is an entertainment destination center that has dedicated at least thirty million dollars ($30,000,000) of the incentives provided under the agreement to a public infrastructure purpose, the agreement may be amended to extend the term of the agreement up to two (2) additional years if the approved company agrees to:
        1. Reinvest in the original entertainment destination project one hundred percent (100%) of any incentives received during the extension that were outstanding at the end of the original term of the agreement; and
        2. Report to the authority at the end of each fiscal year the amount of incentives received during the extension and how the incentives were reinvested in the original entertainment destination project.

HISTORY: Repealed, reenact., and amend. Acts 2001, ch. 1, § 3, effective June 21, 2001; 2009 (1st Ex. Sess.), ch. 1, § 37, effective June 26, 2009; 2014, ch. 104, § 2, effective July 15, 2014; 2017 ch. 132, § 3, effective June 29, 2017.

Compiler’s Notes.

This section was formerly compiled as KRS 154.29-020 .

Legislative Research Commission Notes.

(6/27/2019). This statute was amended in 2019 Ky. Acts ch. 151, sec. 60 (HB 354). Although HB 354 was enacted, 2019 Ky. Acts ch. 196, sec. 16 (HB 458) repealed certain sections of that prior Act, including Section 60, and directed the Reviser of Statutes to not codify them. Therefore, the amendment to this statute in 2019 Ky. Acts ch. 151, sec. 60, was not codified.

(6/26/2009). In codification, the Reviser of Statutes has corrected a manifest clerical or typographical error in 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 37, subsection (3)(b)1. and 2. (this statute), by replacing an incorrect reference to “KRS 148.851(13)(e) or (f)” with the correct reference to “KRS 148.851(14)(e) or (f).”

(1/25/2009). This is former KRS 154.29-020 as amended by 2001 Ky. Acts ch. 1, sec. 3, and renumbered by the Reviser of Statutes under KRS 7.136(1).

148.8531. Application period for sales tax incentive under KRS 148.853(3)(b)2.

New applications shall not be accepted or considered before August 1, 2014, or after May 1, 2018, for the sales tax incentive provided in KRS 148.853(3)(b)2. All projects with preliminary or final approval under KRS 148.851 to 148.860 on July 31, 2018, shall continue to be governed by KRS 148.851 to 148.860 .

History. Enact. Acts 2014, ch. 104, § 3, effective July 15, 2014.

148.854. Legacy expansion projects — Purpose — Eligibility for incentives — Incentives available — Application, approval, and monitoring process — Term of agreement — Analysis of positive fiscal impact — Legislative findings.

  1. As used in this section:
    1. “Legacy expansion project” means an expansion project approved under this section; and
    2. “Premier event” means a sports event that:
      1. Is in the premier series or top sanctioned level of all similar types of events staged on a national basis; and
      2. Is broadcast nationally.
  2. The purpose of this section is to encourage the location of premier events in the Commonwealth.
  3. To qualify for incentives under this section, an eligible company or its assignee shall:
    1. Have an existing project under KRS 148.851 to 148.860 that was approved prior to June 26, 2009;
    2. Invest a minimum of thirty million dollars ($30,000,000) in the expansion of the previously approved project;
    3. Present one (1) or more new premier events on an annual basis at the legacy expansion project site. As used in this paragraph, “new premier event” means a premier event that was not presented at the existing project prior to approval of the legacy expansion project; and
    4. Include a facility with a permanent seating capacity of sixty-five thousand (65,000) or more, where premier events will be held.
  4. An approved company meeting the requirements established by subsection (3) of this section shall be eligible to recover the following:
    1. Up to twenty-five percent (25%) of the approved costs expended for the legacy expansion project; and
    2. One hundred percent (100%) of any amounts outstanding under the agreement for the original project between the approved company, or any assignee of the approved company, and the authority.
  5. To obtain the incentives authorized pursuant to this section, an eligible company that meets the requirements of subsection (3) of this section shall file an application for a legacy expansion project with the authority. The legacy expansion project shall be reviewed and evaluated as a new project under KRS 148.851 to 148.860 , and the application and review process established in KRS 148.851 to 148.860 shall apply, except as otherwise provided in this section. The cabinet may establish requirements and guidelines for the review and approval of projects under this section that are different from, or in addition to the requirements and guidelines established for the review of projects in general under KRS 148.851 to 148.860.
    1. The application required under subsection (5) of this section shall include a plan describing the eligible company’s efforts to promote the hiring of Kentucky residents to be employed in the construction and operation of the legacy expansion project. (6) (a) The application required under subsection (5) of this section shall include a plan describing the eligible company’s efforts to promote the hiring of Kentucky residents to be employed in the construction and operation of the legacy expansion project.
      1. The plan shall be submitted in a format, and with sufficient detail to demonstrate that the eligible company has evaluated the following factors in the development of its plan:
        1. An analysis of its specific need to employ particular occupations, skills, trades, and technical expertise in the construction and operation of the legacy expansion project;
        2. An estimate of the total number of individuals expected to be employed in the construction and operation of the legacy expansion project, which shall include a categorization of construction phase and operational phase employment projections;
        3. An analysis of the specific need to employ individuals skilled in specialized tasks or in the operation of specialized equipment unique to the construction or operation of the legacy expansion project, together with an evaluation of the availability of sufficiently skilled laborers within the Commonwealth who may be employed to perform the specialized tasks identified or to work with particular specialized equipment;
        4. An analysis of the labor market conditions in Kentucky counties in the vicinity of the legacy expansion project at the time construction of the project is ongoing and during the time at which operations at the project commence, which shall include the eligible company’s estimates of the availability of Kentucky laborers of sufficient skill, training, and expertise to perform the work the company requires, during both the construction and operational phases of the project; and
        5. An analysis of any other factor the authority and the eligible company may agree upon.
      2. The plan may include any other items the authority and the eligible company may agree upon.
        1. The plan may include an expression of hiring targets and preferences for Kentucky residents in a format and with the detail that the authority and eligible company may agree upon. 3. a. The plan may include an expression of hiring targets and preferences for Kentucky residents in a format and with the detail that the authority and eligible company may agree upon.
        2. The benchmark hiring target for the construction phase shall be to hire one hundred percent (100%) of contractors from contractors with facilities in Kentucky, and the benchmark hiring target for the operations phase shall be the employment of workers, of whom at least seventy-five percent (75%) are Kentucky residents.
        3. Notwithstanding the benchmark targets established by subdivision b. of this subparagraph, the authority and eligible company may agree upon specific hiring targets after consideration of the analyses required by subparagraph 1. of this paragraph.
        4. The plan may set forth preferences for use of materials manufactured in Kentucky, so long as they are competitively priced.
        5. In no event shall hiring benchmarks, hiring targets, or any preferences take precedence over the results of a competitive bidding process.
    2. The authority shall not approve the application required by subsection (5) of this section until the eligible company has submitted the plan required by this subsection, and the plan has been evaluated and approved by the authority.
    3. An approved company shall report annually to the authority concerning its compliance with the terms of its plan.
    4. The authority shall review the annual reports filed by an approved company in relation to an approved company’s approved plan to determine compliance with the plan. If the authority determines that the approved company has substantially failed to comply with the terms of its plan, the authority may take reasonably necessary measures to ensure compliance with the plan, including but not limited to the withholding of the incentives authorized by this section. If the authority has determined that the approved company has substantially failed to comply with the terms of its plan, it shall provide the eligible company with written notice of this determination, and the eligible company shall be provided a reasonable opportunity to cure any deficiencies prior to the withholding of any incentives.
    1. The initial term of an agreement entered into under this section shall be ten (10) years. During each year of the agreement term, the approved company shall be eligible to recover one-tenth (1/10) of the total incentives approved by the authority. (7) (a) The initial term of an agreement entered into under this section shall be ten (10) years. During each year of the agreement term, the approved company shall be eligible to recover one-tenth (1/10) of the total incentives approved by the authority.
    2. If, at the end of the original ten (10) year term of the legacy expansion project agreement, the approved company has not claimed all of the approved incentives available under the legacy expansion project agreement, the authority shall extend the term of the agreement by one (1) year for each year during the original ten (10) year term of the agreement that the approved company met or exceeded the requirements established by subsection (3)(c) of this section. The term of the legacy expansion project agreement, including all extensions, shall not exceed twenty (20) years, and the amount of recovery during each year that the agreement is extended shall be determined on a pro rata basis, based upon the total number of years for which the agreement is extended.
  6. The Kentucky General Assembly recognizes that the benefits accruing to the Commonwealth from a legacy expansion project include benefits beyond those that would typically be considered in making the determination required by KRS 148.855(4)(c). Therefore, the analysis of positive fiscal impact required by KRS 148.855(4)(c) and (5) shall include an accounting of the following social benefits:
    1. The positive impact that the legacy expansion project will have on the existing tourism attraction project;
    2. The positive impact the legacy expansion project will have on other tourism attractions that will receive increased visitation due to the existence of the legacy expansion project; and
    3. The positive impacts that will accrue to the economy of the Commonwealth from the national and international exposure the legacy expansion project is expected to provide.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 55, effective June 26, 2009.

148.855. Evaluation standards — Tourism attraction project applications — Consulting services — Optional interagency review — Cabinet recommendations.

  1. The cabinet shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish standards for the making of applications for incentives and the recommendation of eligible companies and their tourism development projects to the authority.
  2. The cabinet shall consult with the authority when establishing standards to ensure that standards established pursuant to subsection (1) of this section and KRS 148.857(1) do not conflict.
    1. The application for incentives shall be filed with the cabinet and shall include: (3) (a) The application for incentives shall be filed with the cabinet and shall include:
      1. The name of the applicant;
      2. Marketing plans for the tourism development project that target individuals who are not residents of the Commonwealth;
      3. A description and location of the tourism development project;
      4. Capital and other anticipated expenditures for the tourism development project that indicate that the total cost of the project shall exceed the minimum required costs as provided in KRS 148.853 , and the anticipated sources of funding therefor;
      5. The anticipated employment and wages to be paid at the tourism development project;
      6. Business plans which indicate the average number of days in a year in which the tourism development project will be in operation and open to the public;
      7. The anticipated revenues and expenses generated by the tourism development project;
      8. If the tourism development project is an entertainment destination center project, the application shall include the public infrastructure purpose; and
      9. Any other information as required by the cabinet.
    2. Based upon a review of these materials, if the cabinet determines that the eligible company and the proposed tourism development project appears to meet the requirements established by KRS 148.853 , and that the proposed tourism development project may reasonably satisfy the criteria for final approval in subsection (4) of this section, the secretary of the cabinet may submit a written request to the authority for a preliminary approval of the eligible company and the tourism development project.
  3. The authority may review the request submitted by the secretary, including all relevant materials, and may, based upon that review, grant preliminary approval to an eligible company. Upon a preliminary approval by the authority, the cabinet shall engage the services of a competent consulting firm to analyze the data made available by the eligible company and to collect and analyze additional information necessary to determine that, in the independent judgment of the consultant, the proposed tourism development project:
    1. Will attract, in all years following the third year of operation, at least twenty-five percent (25%) of its visitors from among persons who are not residents of the Commonwealth, except for a theme restaurant destination attraction project, which shall attract, in all years following the third year of operation, a minimum of fifty percent (50%) of its visitors from among persons who are not residents of the Commonwealth;
    2. Will have costs in excess of the minimum amount required by KRS 148.853 ;
      1. Will have a net positive fiscal impact on the Commonwealth considering, among other factors, the extent to which the proposed tourism development project will compete directly with existing tourism attractions or previously approved tourism development projects in the Commonwealth and the amount by which increased tax revenues from the tourism development project will exceed the incentives given to the approved company at the maximum level of recovery of approved costs as provided in KRS 148.853 ; or (c) 1. Will have a net positive fiscal impact on the Commonwealth considering, among other factors, the extent to which the proposed tourism development project will compete directly with existing tourism attractions or previously approved tourism development projects in the Commonwealth and the amount by which increased tax revenues from the tourism development project will exceed the incentives given to the approved company at the maximum level of recovery of approved costs as provided in KRS 148.853; or
      2. If the independent consultant determines that the proposed tourism development project cannot produce a net positive fiscal impact to the Commonwealth at the maximum level of recovery of approved costs as provided in KRS 148.853, the independent consultant shall determine the level of recovery, if any, at which the proposed tourism development project can meet those standards;
    3. Will produce sufficient revenues and public demand to be operating and open to the public for a minimum of one hundred (100) days per year, except for a theme restaurant destination attraction, which shall be operating and open to the public for a minimum of three hundred (300) days per year;
    4. Will not adversely affect existing employment in the Commonwealth; and
    5. Meets all other requirements of KRS 148.851 and 148.853.
  4. The independent consultant, in determining the amount of net positive fiscal impact to the Commonwealth for a new proposed tourism development project that is an expansion of an existing tourism development project shall not consider positive fiscal impacts from the following sources:
    1. Increased operations at the previously approved tourism development project that is being expanded by the proposed tourism development project;
    2. Increased operations at any other tourism development project approved for incentives provided under KRS 148.853 ; or
    3. Increased operations at any project approved for tax increment financing that includes state revenues approved pursuant to Subchapter 30 of KRS Chapter 154.
    1. The independent consultant shall consult with the authority, the Office of the State Budget Director and the Finance and Administration Cabinet in the development of a report on the proposed tourism development project. (6) (a) The independent consultant shall consult with the authority, the Office of the State Budget Director and the Finance and Administration Cabinet in the development of a report on the proposed tourism development project.
    2. The Office of the State Budget Director and the Finance and Administration Cabinet shall agree as to the methodology to be used and assumptions to be made by the independent consultant in preparing its report.
    3. On the basis of the independent consultant’s report and prior to any final approval of a project by the authority, the Office of the State Budget Director and the Finance and Administration Cabinet shall certify to the authority whether there is a projected net positive fiscal impact to the Commonwealth and the expected amount of incremental state revenues from the tourism development project. A final approval shall not be granted if it is determined that there is no projected net positive fiscal impact to the Commonwealth.
  5. The eligible company shall pay for the cost of the consultant’s report and shall cooperate with the consultant and provide all of the data that the consultant deems necessary to make its determination under subsection (4) of this section.
  6. In lieu of the independent consultant analysis required in subsection (4) of this section, if the eligible company is exempt from income tax under Section 501(c)(3) of the Internal Revenue Code and the estimated approved costs are less than ten million dollars ($10,000,000), the cabinet shall have the option of performing an interagency review to analyze the data made available by the eligible company and to collect and analyze additional information necessary to determine that the proposed tourism development project meets the requirements set forth in subsection (4)(a) of this section. The cabinet shall comply with the same consulting and reporting requirements as an independent consultant.
  7. After a review of relevant materials, the consultant’s report, and completion of other inquiries, the secretary shall, by written notification to the authority, provide a recommendation to the authority regarding final approval of the tourism development project.

History. Repealed, reenact., and amend. Acts 2001, ch. 1, § 4, effective June 21, 2001; 2003, ch. 73, § 4, effective March 18, 2003; 2005, ch. 85, § 564, effective June 20, 2005; 2005, ch. 95, § 25, effective June 20, 2005; 2009, ch. 16, § 28, effective June 25, 2009; 2009 (1st Ex. Sess.), ch. 1, § 38, effective June 26, 2009.

Compiler’s Notes.

This section was formerly compiled as KRS 154.29-030 .

Section 501(c)(3) of the Internal Revenue Code referenced herein, is compiled as 26 USCS § 501(c)(3).

Legislative Research Commission Note.

(1/25/2009). This is former KRS 154.29-030 as amended by 2001 Ky. Acts ch. 1, sec. 4, and renumbered by the Reviser of Statutes under KRS 7.136(1).

148.857. Preliminary and final approval of companies and projects — Meetings of authority.

  1. The authority shall establish standards for preliminary approval and final approval of eligible companies and their projects by the promulgation of administrative regulations in accordance with KRS Chapter 13A.
  2. The authority shall consult with the secretary when establishing standards to ensure that standards established pursuant to KRS 148.855(1) and subsection (1) of this section do not conflict.
  3. After the authority’s preliminary approval, an agent designated by the cabinet shall hold at least one (1) public hearing to solicit public comments regarding the designation of an eligible company as a preliminarily approved company. Notice of the public hearing shall be given in accordance with KRS Chapter 424.
  4. The authority shall review the report of the consultant prepared pursuant to KRS 148.855(4), the recommendation of the secretary, the report prepared by the agent documenting all comments, both written and oral, received at the public hearing required by subsection (3) of this section, and other information that has been made available to the authority in order to assist the authority in determining whether the tourism development project will further the purposes of KRS 148.851 to 148.860 .
  5. The criteria for final approval of eligible companies and tourism development projects shall include but not be limited to the criteria set forth in KRS 148.855(4). Final approval shall not be granted if it is determined that there is no projected net positive fiscal impact to the Commonwealth.
  6. After a review of the consultant’s report, the recommendation of the secretary, and other information made available to the authority, the authority, by resolution, may grant to the eligible company the status of an approved company and authorize the execution of a tourism development project agreement as provided in KRS 148.859 . The decision reached by the authority shall be final and no appeal shall be granted.
  7. All meetings of the authority shall be held in accordance with KRS 61.805 to 61.850 . The authority may, pursuant to KRS 61.815 , hold closed sessions of its meetings to discuss matters exempt from the open meetings law and pertaining to an eligible company.

History. Repealed, reenact., and amend. Acts 2001, ch. 1, § 5, effective June 21, 2001; 2005, ch. 95, § 26, effective June 20, 2005; 2009, ch. 16, § 29, effective June 25, 2009; 2009 (1st Ex. Sess.), ch. 1, § 39, effective June 26, 2009.

Compiler’s Notes.

This section was formerly compiled as KRS 154.29-040 .

Legislative Research Commission Note.

(6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 39, made changes to subsections (3) and (4) of this section. It is apparent from consultation with the drafter and from context that the second use of the word “company” should not have been deleted from subsection (4), now subsection (3) of that section. The Reviser of Statutes has restored this word under the authority of KRS 7.136 .

(1/25/2009). This is former KRS 154.29-040 as amended by 2001 Ky. Acts ch. 1, sec. 5, and renumbered by the Reviser of Statutes under KRS 7.136(1).

148.859. Agreement between authority and approved company.

  1. The authority, upon adoption of its final approval, may enter into a tourism development agreement with any approved company. The terms of the agreement shall be negotiated between the authority and the approved company and shall include but not be limited to:
    1. The amount of approved costs;
    2. That any increase in approved costs incurred by the approved company and agreed to by the authority shall apply retroactively for purposes of calculating the carry forward for unused incentives;
    3. A date certain by which the approved company shall have completed the tourism development project;
    4. That the authority may grant an extension or change, which in no event shall exceed three (3) years from the date of final approval, to the completion date as specified in the agreement of an approved company;
    5. That within three (3) months of the completion date, the approved company shall document the actual cost of the tourism development project through a certification of the costs to be provided by an independent certified public accountant acceptable to the authority;
    6. The term of the tourism development agreement and the maximum amount of recovery;
    7. That within forty-five (45) days after the end of each fiscal year of the approved company, during the term of the agreement, the approved company shall supply the authority with reports and certifications as the authority may request demonstrating to the satisfaction of the authority that the approved company is in compliance with the provisions of KRS 139.536 and KRS 148.851 to 148.860 ;
    8. That the approved company shall notify the authority if any change in ownership of the tourism attraction is contemplated. The authority shall reserve the option to renegotiate the terms of the agreement or, if the change in ownership is detrimental to the Commonwealth, the authority may terminate the agreement;
    9. That the approved company shall not receive a sales tax incentive as prescribed by KRS 139.536 with respect to any fiscal year if the requirements of KRS 148.853(2) have not been met;
    10. That the authority may grant an extension of up to three (3) years to the completion date in addition to the extension provided for in paragraph (d) of this subsection, to an approved company that has completed at least fifty percent (50%) of an entertainment destination center project;
    11. That in no event shall the completion date be more than six (6) years from the date of final approval; and
    12. That the extension provided for in paragraph (j) of this subsection shall be subject to the following conditions:
      1. The approved company shall have spent or have contractually obligated to spend an amount equal to or greater than the amount of approved costs set forth in the initial agreement;
      2. The term of the agreement shall not be extended, except as provided in KRS 148.853(3)(b)4.; and
      3. The scope of the entertainment destination center project, as set forth in the initial agreement, shall not be altered to include new or additional entertainment and leisure options.
  2. The agreement, including the incentives provided under KRS 148.853 , shall not be transferable or assignable by the approved company without the written consent of the authority and a passage of a resolution approving the proposed assignee of the incentives as an approved company.

History. Repealed, reenact., and amend. Acts 2001, ch. 1, § 6, effective June 21, 2001; 2003, ch. 73, § 5, effective March 18, 2003; 2005, ch. 85, § 565, effective June 20, 2005; 2005, ch. 173, Pt. XXIV, § 2, effective March 20, 2005; 2005, ch. 184, § 16, effective June 20, 2005; 2009 (1st Ex. Sess.), ch. 1, § 40, effective June 26, 2009.

Compiler’s Notes.

This section was formerly compiled as KRS 154.29-050 .

Legislative Research Commission Note.

(1/25/2009). This is former KRS 154.29-050 as amended by 2001 Ky. Acts ch. 1, sec. 6, and renumbered by the Reviser of Statutes under KRS 7.136(1).

148.8591. Annual report of tourism development project applications, approvals, and funding.

  1. By November 1 of each year, the authority shall prepare an annual report. The report shall be posted to the Tourism, Arts and Heritage Cabinet’s Web site.
  2. The report shall include information for all projects approved after June 26, 2009.
  3. The report shall include the following information:
    1. For each approved project:
      1. The name of the approved company and a brief description of the project;
      2. The amount of approved costs included in the agreement;
      3. The maximum amount of incentives the approved company may recover over the term of the agreement;
      4. The term of the agreement; and
      5. The total amount recovered under the agreement, reported for both the prior fiscal year and cumulatively;
    2. The number of applications for projects submitted during the prior fiscal year;
    3. The number of projects finally approved during the prior fiscal year; and
    4. The total dollar amount approved for recovery for all projects approved during the prior fiscal year, and cumulatively under the Tourism Development Act since its inception, by year of approval.
  4. The information required to be reported under this section shall not be considered confidential taxpayer information and shall not be subject to KRS Chapter 131 or any other provision of the Kentucky Revised Statutes prohibiting disclosure or reporting of information.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 41, effective June 26, 2009; 2014, ch. 134, § 3, effective July 15, 2014; 2018 ch. 199, § 7, effective July 14, 2018.

148.860. Short title for KRS 139.536 and KRS 148.851 to 148.860.

KRS 139.536 and KRS 148.851 to 148.860 shall be known as the Kentucky Tourism Development Act.

History. Repealed, reenact., and amend. Acts 2001, ch. 1, § 7, effective June 21, 2001.

Compiler’s Notes.

This section was formerly compiled as KRS 154.29-060 .

Legislative Research Commission Note.

(1/25/2009). This is former KRS 154.29-060 as amended by 2001 Ky. Acts ch. 1, sec. 7, and renumbered by the Reviser of Statutes under KRS 7.136(1).

Pine Mountain Trail

148.870. Legislative recognition and purpose.

  1. The General Assembly recognizes that the ridge top of Pine Mountain is a unique area desirable for the creation of a trail. Therefore, it is hereby declared that in order to afford the citizens of the Commonwealth an opportunity to enjoy this natural area, to attract out-of-state visitors, to ensure the well-being of our tourism industry, to preserve for future generations the beauty of certain areas untrammeled by man, to provide for the ever-increasing outdoor recreation needs of an expanding population, and to promote the preservation of, public access to, travel within, and enjoyment and appreciation of the outdoor areas and historic resources of the Commonwealth, there is hereby established a certain defined area in the southeastern part of the Commonwealth for ultimate designation as the Pine Mountain State Scenic Trail, with land in the defined area owned or leased by the Commonwealth or on which the Commonwealth has obtained an easement comprising the initial state park.
  2. It is the intent of KRS 148.870 to 148.892 to assure preservation of the scenic, ecological, and other values within the boundaries of the trail and to provide proper management of the recreational, wildlife, water, and other resources within those boundaries. It is further the intent of KRS 148.870 to 148.892 to impose reasonable policies governing the use of land within the authorized boundaries of the trail, except for the restrictions set forth in KRS 148.870 to 148.892, for the general welfare of the people of the Commonwealth and, where necessary, to enable the Commonwealth or any of its agencies to acquire fee title or lesser interests in land within the boundaries of the trail, in order to maintain the public trust in this unique area.
  3. The General Assembly recognizes the valuable contributions that volunteers and private, nonprofit groups have made to the development and maintenance of trails throughout the Commonwealth. In recognition of these contributions, it is further the purpose of KRS 148.870 to 148.892 to encourage and assist volunteer citizen and nonprofit group involvement in the planning, development, maintenance, and management, where appropriate, of the trail.
  4. The General Assembly recognizes that the establishment of Pine Mountain State Scenic Trail is not intended to create a one hundred twenty (120) mile linear barrier around southeastern Kentucky. The General Assembly further recognizes that to ensure the continued economic development of the area, provisions shall be made for means of ingress and egress for owners of property and those with property rights affected by the creation of the trail, and for new road construction, utility facilities, and pipelines that may cross the trail.

History. Enact. Acts 2002, ch. 118, § 1, effective July 15, 2002; 2010, ch. 87, § 1, effective July 15, 2010.

148.872. Definitions for KRS 148.870 to 148.892.

As used in KRS 148.870 to 148.892 , unless the context otherwise requires:

  1. “Department” means the Kentucky Department of Parks within the Tourism, Arts and Heritage Cabinet;
  2. “Person” means an individual, trust, firm, estate, joint stock company, corporation, nonprofit corporation, government corporation, limited liability company, partnership, association, organization, government unit or agency whether federal, state, city, commission, or other political subdivision of the Commonwealth, any interstate body, group of persons acting in concert, or other legal entity;
  3. “Secretary” means the secretary of the Tourism, Arts and Heritage Cabinet of the Commonwealth of Kentucky; and
  4. “Trail” means the Pine Mountain State Scenic Trail, as established in KRS 148.870 .

History. Enact. Acts 2002, ch. 118, § 2, effective July 15, 2002; 2005, ch. 95, § 27, effective June 20, 2005; 2009, ch. 16, § 30, effective June 25, 2009; 2010, ch. 87, § 2, effective July 15, 2010.

148.874. Pine Mountain State Scenic Trail — Boundaries — Connecting or side paths — Support facilities — Limit to nonmotorized uses — Cemeteries and burial grounds.

  1. There is hereby designated a linear state park, the boundaries of which shall be determined by the department in accordance with this section known as the Pine Mountain State Scenic Trail, a trail of approximately one hundred twenty (120) miles in length, located exclusively within the boundaries of Kentucky beginning along the border of Kentucky and Virginia at or near Breaks Interstate Park, and extending generally south-southwest along the crest of Pine Mountain to the vicinity of Pine Mountain State Resort Park and continuing south to the Cumberland Gap National Park on the vicinity thereof. Insofar as practicable, the boundaries of the trail from the Breaks Interstate Park to Bad Branch State Nature Preserve shall be a one thousand (1,000) foot corridor, the center of which shall be the crest of Pine Mountain, to the extent that the corridor does not encroach upon the territory of the Commonwealth of Virginia. Insofar as practicable, the boundaries of the trail from the Bad Branch State Nature Preserve to the Pine Mountain State Resort Park shall be a corridor one hundred (100) to two hundred fifty (250) feet along the level top of Pine Mountain. The route of the trail from Pine Mountain State Resort Park to Cumberland Gap National Park shall be a corridor no wider than two hundred fifty (250) feet to be determined by the department. Notwithstanding these boundary limitations, the department may through negotiations with the land owner acquire additional land outside the boundary limitations. The trail shall be depicted on the “Pine Mountain State Scenic Trail Map,” which shall be on file and available for public inspection in the office of the commissioner of the department. The trail map shall delineate those portions of the trail that are owned or leased by the Commonwealth or on which the Commonwealth has obtained an easement and shall be updated periodically solely for the purpose of reflecting additions to those specific areas.
  2. The department may designate connecting or side paths which shall provide additional points of public access to the trail or access to points of interest, and which shall be of the same scenic nature as the trail, except that connecting or side paths shall not be acquired through eminent domain.
  3. Because of its extended length, the department may supplement the trail by support facilities located on certain designated parts of the trail or outside the trail. These support facilities may include, as the department deems necessary and feasible, primitive shelters, fireplaces, safe water supplies, and other related public-use facilities that shall meet department standards. No open wood fires shall be permitted on the trail except in areas with support facilities specifically designated for that purpose.
  4. The trail shall be a state scenic trail, so chosen because of its unique location. It shall be limited to foot use and other nonmotorized uses as permitted on segments where deemed appropriate by the department, and as set forth in KRS 148.878 .
  5. The department shall, no later than June 30, 2003, determine the boundaries of the trail. In determining the boundaries of the trail the department shall not encroach upon any privately owned dwelling, or areas designated for residential structures and their surrounding properties, but shall route the trail around a privately owned dwelling or areas designated for a residential structure.
  6. The department shall not acquire through eminent domain any cemetery or its surrounding property which is designated as a cemetery or burial ground on July 15, 2002.

History. Enact. Acts 2002, ch. 118, § 3, effective July 15, 2002; 2010, ch. 87, § 3, effective July 15, 2010.

148.876. Acquisition of land.

  1. The power of eminent domain may only be exercised to acquire land in fee within the boundaries of the trail, except that the power of eminent domain shall not be exercised to acquire any privately owned dwelling, areas designated for residential structures and their surrounding properties, or property owned or leased, including adjacent or contiguous tracts of land leased or owned or which may be acquired, for the purposes of operating an oil or gas well, surface or underground coal mine operation, or surface or underground mineral quarrying operation, if the person holds a state permit or license issued by the Energy and Environment Cabinet, Division of Mine Permits or Division of Mine Safety.
  2. Within the boundaries of the trail, the department may acquire, on behalf of the Commonwealth, fee title or lesser interests in land. Acquisition of land may be by gift, by purchase with donated funds, by funds appropriated by the General Assembly, by the use of proceeds from the sale of bonds, by exchange, by assumption of property tax payments, or by other authorized means. Notwithstanding the provisions in KRS 350.085(3) and 353.610 , in acquiring any interests the Commonwealth or its agencies shall waive the three hundred (300) foot restriction contained in KRS 350.085(3) and boundary restrictions for a well set forth in KRS 353.610 .

History. Enact. Acts 2002, ch. 118, § 4, effective July 15, 2002; 2005, ch. 123, § 17, effective June 20, 2005; 2015 ch. 87, § 3, effective June 24, 2015; 2010, ch. 24, § 140, effective July 15, 2010.

148.878. Limitations on activities within boundaries of trail — Motorized vehicles — Permissible land uses — Ingress and egress — Roads — Rights of persons from whom property acquired — Permit for change of use.

  1. Within the boundaries of the trail, as designated by the department and once acquired:
    1. The natural vegetation shall be kept undisturbed except for any clearing required for construction of the trail, occasional vistas, or trail-use facilities described in KRS 148.870 to 148.892 , except as provided under paragraph (c) of subsection (3) of this section. Development and management of each segment of the trail shall be designed to harmonize with and complement any established multiple-use plans for that specific area in order to ensure continual maximum benefits from the land;
    2. Hunting of wild game shall be permitted only on or along areas as identified and permitted in administrative regulations as promulgated by the Department of Fish and Wildlife Resources after consultation with the Department of Parks, and as permitted under paragraph (c) of subsection (3) of this section; and
    3. The use of motorized vehicles by the general public within the boundaries of the trail shall be limited, and nothing in KRS 148.870 to 148.892 shall be construed as authorizing the use of motorized vehicles in this area, except upon existing or newly constructed public roadways within the boundaries of the trail and as provided under paragraph (c) of subsection (3) of this section.
  2. The department may promulgate administrative regulations authorizing the use of motorized vehicles on areas other than public roadways, when these vehicles are required to meet emergencies where life or health is at risk, or to enable adjacent landowners to have access to their lands or mineral rights, as provided under paragraphs (a) and (c) of subsection (3) of this section.
    1. Except as expressly authorized in KRS 148.870 to 148.892 or in the administrative regulations promulgated by the department, or as may be allowed under a change of use permit issued by the department, permissible land uses within the boundaries of the trail as designated by the department shall be as set forth in this section. Uses that lawfully existed on July 15, 2002, may continue. After the trail boundaries are designated, new or additional uses shall be in compliance with the policy and purposes of KRS 148.870 to 148.892 and shall minimize disturbance to the trail. Above-ground blasting operations authorized under the provisions of KRS 351.315 to 351.375 , except those operations conducted on sites utilizing no more than a total of ten thousand (10,000) pounds of explosives or the equivalent on the site, shall be prohibited for new or additional uses within an area of one thousand two hundred fifty (1,250) feet outward from the crest of Pine Mountain on the portion of the trail from Breaks Interstate Park to Bad Branch State Nature Preserve and within an area of five hundred (500) feet outward from the boundary of the trail on the portion of the trail from Bad Branch State Nature Preserve to Pine Mountain State Resort Park. Select cutting of timber or other resources removal may be allowed pursuant to KRS 148.870 to 148.892 and administrative regulations promulgated by the department upon the issuance of a change of use permit. Unless the property is purchased by the department, any net revenue from the cutting of timber or other resources removal shall inure to the benefit of the owner of the property or property rights from which the Commonwealth acquired the property. In promulgating administrative regulations related to KRS 148.870 to 148.892 and in developing the management plan as set forth in KRS 148.882 , the department shall schedule public hearings in the county in which the trail lies that is affected by the administrative regulations and management plan. (3) (a) Except as expressly authorized in KRS 148.870 to 148.892 or in the administrative regulations promulgated by the department, or as may be allowed under a change of use permit issued by the department, permissible land uses within the boundaries of the trail as designated by the department shall be as set forth in this section. Uses that lawfully existed on July 15, 2002, may continue. After the trail boundaries are designated, new or additional uses shall be in compliance with the policy and purposes of KRS 148.870 to 148.892 and shall minimize disturbance to the trail. Above-ground blasting operations authorized under the provisions of KRS 351.315 to 351.375 , except those operations conducted on sites utilizing no more than a total of ten thousand (10,000) pounds of explosives or the equivalent on the site, shall be prohibited for new or additional uses within an area of one thousand two hundred fifty (1,250) feet outward from the crest of Pine Mountain on the portion of the trail from Breaks Interstate Park to Bad Branch State Nature Preserve and within an area of five hundred (500) feet outward from the boundary of the trail on the portion of the trail from Bad Branch State Nature Preserve to Pine Mountain State Resort Park. Select cutting of timber or other resources removal may be allowed pursuant to KRS 148.870 to 148.892 and administrative regulations promulgated by the department upon the issuance of a change of use permit. Unless the property is purchased by the department, any net revenue from the cutting of timber or other resources removal shall inure to the benefit of the owner of the property or property rights from which the Commonwealth acquired the property. In promulgating administrative regulations related to KRS 148.870 to 148.892 and in developing the management plan as set forth in KRS 148.882 , the department shall schedule public hearings in the county in which the trail lies that is affected by the administrative regulations and management plan.
    2. In the development of management plans as set forth in KRS 148.882, the department shall include provisions to allow for means of ingress and egress as provided in paragraph (c) of this subsection by owners of property rights affected by the creation of the trail, and for the construction of new roads, utility facilities, and pipelines that would encroach upon the trail. The department shall promulgate administrative regulations setting forth the procedures required to establish means of ingress and egress relating to obtaining rights-of-way, easements, and permits necessary for the construction of new roads, utility facilities, and pipelines that encroach upon the trail.
    3. When the Commonwealth acquires land for the trail authorized by KRS 148.870, regardless of whether the trail property is acquired by purchase, eminent domain, donation, or otherwise restricted, the person from whom the property is acquired or restricted or their successor in title shall have the following rights with regard to the property which has been acquired or restricted by the Commonwealth:
      1. Ingress, egress, and access to trail property for purposes specified in this section or any other provision of law;
      2. An easement to use trail property for the purpose of access to adjacent land of the same property owner or their successor, including but not limited to motorized travel;
      3. To hunt, fish, or trap on that portion of trail property formerly owned, in accordance with applicable law and administrative regulations;
      4. To gather and remove edible, medicinal, or ornamental plants and herbs from that portion of the trail property formerly owned, in accordance with applicable law and administrative regulations; and
      5. To access and maintain a cemetery and burial grounds on that portion of trail property formerly owned.
    4. The rights specified in this section or other provisions of law or administrative regulation shall be included in any judgment when property or an interest therein is taken or restricted by eminent domain and shall be included in any contract for purchase, donation, or other acquisition of the property or an interest therein unless voluntarily waived in that document.
  3. Any person owning property or property rights within the boundaries of the trail may apply to the department for a change of use permit. The secretary or the secretary’s designee shall hold a public hearing after public notice on the application within sixty (60) days. Any person shall be allowed to present evidence as to whether the use proposed by the applicant is in accordance with the management plan developed pursuant to the provisions of KRS 148.870 to 148.892 , the administrative regulations promulgated pursuant to KRS 148.870 to 148.892 , and other applicable law.
  4. The secretary shall, within sixty (60) days after a hearing, issue an order and accompanying opinion granting the permit, denying the permit, or recommending an alternative use to which the land may be put that is more consistent with the provisions of KRS 148.870 to 148.892 than the use for which the application was made. Any aggrieved party to the hearing shall have the right to petition the local Circuit Court in which the property lies within thirty (30) days after issuance of the secretary’s order.

History. Enact. Acts 2002, ch. 118, § 5, effective July 15, 2002.

148.880. Pine Mountain State Scenic Trail fund.

A fund for the purpose of carrying out the provisions of KRS 148.870 to 148.892 is hereby created, to be designated as the Pine Mountain State Scenic Trail fund, and shall consist of all revenues derived from privileges, concessions, contracts, or otherwise, and all moneys received by gifts, contributions, donations, and grants from public or private sources. This shall be a trust and agency fund account maintained and disbursed by the Tourism, Arts and Heritage Cabinet to carry out the purposes of KRS 148.870 to 148.892 , after appropriations are made for administration and other expenses and purposes provided in KRS 148.870 to 148.892. It shall not lapse, and interest earnings shall accrue to the fund.

History. Enact. Acts 2002, ch. 118, § 6, effective July 15, 2002; 2005, ch. 95, § 28, effective June 20, 2005; 2009, ch. 16, § 31, effective June 25, 2009; 2010, ch. 87, § 4, effective July 15, 2010.

148.882. Duties of Department of Parks — Management plan — Administrative regulations — Trail maintenance.

  1. The trail shall be administered by the department according to the policies and criteria set forth in KRS 148.870 to 148.892 . Within six (6) months of the designation of the trail boundary, the department shall consider the needs of local area citizens and develop a management plan for the trail and shall publicize and hold public hearings and record the views expressed on the management plan in the county in which the trail lies that is affected by the management plan. Within twelve (12) months of development of the management plan, the department shall promulgate administrative regulations that are necessary for the preservation and enhancement of the trail and to carry out the purposes of KRS 148.870 to 148.892 , and for control of recreational, educational, scientific, and other uses of these areas in a manner that shall not impair them.
  2. The department shall be responsible for maintaining the trail, building bridges, campsites, shelters, and related public-use facilities where required, to the extent funds are available therefor. The department may enter into written agreements as it relates to any of these functions to one (1) or more nonprofit entities or other persons.

History. Enact. Acts 2002, ch. 118, § 7, effective July 15, 2002.

148.884. Construction of KRS 148.870 to 148.892 relating to use of private land.

Nothing in KRS 148.870 to 148.892 shall be construed to confer upon any member of the public the right to use or enter upon private lands adjacent to the boundaries of the trail, or to confer on any member of the public the right to enter upon or use any private lands designated as part of the trail until such time as the department has delineated that area as being subject to an easement, purchase, or lease by the Commonwealth under KRS 148.874(1).

History. Enact. Acts 2002, ch. 118, § 8, effective July 15, 2002.

148.886. Legal actions.

It shall be the duty of the department or, upon the secretary’s request, the duty of the Attorney General to bring an action for the recovery of the penalties provided for in KRS 148.888 , or to bring an action for a restraining order or temporary or permanent injunction to prevent or correct a condition that constitutes or threatens to constitute a violation of any of the provisions of KRS 148.870 to 148.892 . All actions for injunctive relief shall be brought in the name of the Commonwealth of Kentucky and shall be filed in the local Circuit Court in which the property lies.

History. Enact. Acts 2002, ch. 118, § 9, effective July 15, 2002.

148.888. Penalties.

  1. Any person, corporation, city, county, or other governmental subdivision who violates any of the provisions of KRS 148.870 to 148.892 shall be liable for a civil penalty not to exceed five hundred dollars ($500) per day for any violation, and in addition may be enjoined from continuing the violation. Each day upon which any violation occurs or continues shall constitute a separate offense.
  2. No person shall trespass on private land adjacent to or within the boundaries of the trail. Any person who:
    1. Unintentionally violates the provisions of this section shall be subject to a prepayable fine of one hundred dollars ($100);
    2. Intentionally violates the provisions of this section shall be subject to a prepayable fine of two hundred dollars ($200); and
    3. Continues to trespass or intentionally violates the provisions of this section and causes damage to the private property may be prosecuted under the provisions of KRS Chapter 512.

History. Enact. Acts 2002, ch. 118, § 10, effective July 15, 2002.

148.890. Use of lands adjacent to or visible from trail — Legislative findings.

  1. Subject to the provisions of KRS 148.878(3)(a), nothing in KRS 148.870 to 148.892 shall be construed or interpreted as affecting, in any way, the legitimate use of surface and subsurface property adjacent to or visible from the trail, whether such use was in effect upon the designation of the trail or not, including but not limited to timbering, oil and gas operations, mining, both by surface and underground mining means, or any other legitimate use of surface or mineral property adjacent to or within view of the trail.
  2. Use of the lands outside of the boundary of the trail shall not be limited or restricted because the lands may be viewed from the trail. The viewshed of the trail shall be limited to the trail boundary for any land use regulation of lands outside the boundary of the trail.
  3. The General Assembly finds that the boundaries for the trail prescribed in KRS 148.870 to 148.892 are adequate and sufficient to protect areas inside the trail that may contain fragile or historic lands; or which may have important historic, cultural, scientific, aesthetic values and natural systems; or that may be renewable resource lands which have importance in terms of long-range productivity of water supply, food, or fiber products; or which could be considered natural hazard lands, including lands subject to frequent flooding, areas of unstable geology, or areas in which the health, safety, or welfare of people, property, or the environment is threatened due to surface coal mining or similar activities conducted outside of the trail boundaries.

History. Enact. Acts 2002, ch. 118, § 11, effective July 15, 2002.

148.892. Short title for KRS 148.870 to 148.892.

KRS 148.870 to 148.892 may be cited as the Pine Mountain State Scenic Trail Act.

History. Enact. Acts 2002, ch. 118, § 12, effective July 15, 2002; 2010, ch. 87, § 5, effective July 15, 2010.

Penalties

148.990. Penalty. [Repealed.]

Compiler’s Notes.

This section (3766d-4: amend. Acts 1948, ch. 205, § 2) was repealed by Acts 1964, ch. 157, § 18.

148.991. Penalties.

  1. Any person who violates subsection (2) of KRS 148.051 shall be fined not less than ten dollars ($10) nor more than one hundred dollars ($100), or imprisoned in jail for not less than one (1) day nor more than ten (10) days or both.
  2. Any person who violates KRS 148.029 shall be fined not less than ten dollars ($10) nor more than one hundred dollars ($100).
  3. Whoever violates, fails, neglects or refuses to obey any provision of KRS 148.610 to 148.780 , or regulation, or order of the commissioner may be compelled to comply with or obey the same by injunction, mandamus, or other appropriate remedy; and provided, further, that whoever violates, fails, neglects, or refuses to obey any provision of KRS 148.610 to 148.780 , or regulation, or order of the commissioner shall be punished by a fine of not more than fifty dollars ($50) for each day of such violation.
  4. Any person who violates any provision of KRS 148.290 shall be fined not less than ten dollars ($10) nor more than one hundred dollars ($100).
  5. Any person who violates KRS 148.290(3), (4), or (5) governing golf cart-type vehicles, all-terrain vehicles, and horse trailers, including administrative regulations promulgated pursuant to that statute, forfeits the rights and privileges, as granted by the commission, of using the vehicle or trailer on State Horse Park property. The executive director of the State Horse Park shall ensure that vehicles or trailers in violation are impounded to the nearest licensed tow company. The owner or operator of such a vehicle or trailer shall pay any and all expenses related to the vehicle’s or trailer’s towing and impoundment.

History. Enact. Acts 1964, ch. 157, § 19; 1972, ch. 189, § 2(6); 1974, ch. 288, § 20; 1979 (Ex. Sess.), ch. 6, § 8, effective July 1, 1979; 2008, ch. 22, § 2, effective July 15, 2008.

CHAPTER 149 Forestry

149.005. Kentucky Forest Resource Council. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 138, § 1, effective July 15, 1996) was repealed by Acts 2001, ch. 18, § 1, effective June 21, 2001.

149.010. Division of Forestry created — Powers — Rules and regulations.

  1. There is hereby created and there shall be maintained within the Department for Natural Resources in the Energy and Environment Cabinet a Division of Forestry to supervise all forestry property and advance forest interests of the state through development of such property and interests. It shall initiate such projects as will promote public appreciation of forest protection and of reforestation; encourage tree planting in general and on the public highways in particular; grow, collect and distribute seedlings; form and foster junior forestry clubs; cooperate with local civic organizations in the care of trees and planting of more trees; provide for organized forest fire protection; cooperate with the federal government, state departments and landowners in the perpetuation of forests, the promotion of tree growth and the redemption of wasteland for agricultural purposes; and encourage an interest in forestry by correspondence, press, pamphlets, reports, moving pictures and organizations.
  2. The director of the Division of Forestry with the approval of the secretary for energy and environment shall adopt and enforce such rules and regulations as may be necessary to carry out the functions assigned the cabinet by law.

History. 2007h-2: amend. Acts 1966, ch. 23, § 40; 1974, ch. 74, Art. III, § 13(3); 1982, ch. 142, § 17, effective July 15, 1982; 2010, ch. 24, § 141, effective July 15, 2010.

Research References and Practice Aids

Cross-References.

Acquisition and development of public projects by governmental units and agencies through revenue bonds, KRS ch. 58.

Fire prevention and protection, KRS ch. 227.

Fish and wildlife resources, KRS ch. 150.

Legal notices, KRS ch. 424.

Natural Resources and Environmental Protection Cabinet, KRS ch. 146.

Quicksand substation to make forestry experiments, KRS 247.040 .

Parks, Department of, KRS ch. 148.

Sanitation districts, KRS ch. 220.

Soil and water conservation, KRS ch. 262.

149.015. Cabinet’s duties concerning blight-resistant chestnut tree seedlings.

There shall be established and maintained within the nursery or nurseries of the Energy and Environment Cabinet a section or sections for the propagation of blight-resistant chestnut tree seedlings. Such seedlings shall be distributed to landowners and citizens of the Commonwealth at reasonable cost and under and subject to such rules and regulations as may be established by the secretary for energy and environment.

History. Enact. Acts 1956, ch. 122, § 1, effective May 18, 1956; 1974, ch. 74, Art. III, § 13(3); 1982, ch. 142, § 1, effective July 15, 1982; 2010, ch. 24, § 142, effective July 15, 2010.

Legislative Research Commission Note.

(7/15/2010). A reference to the “secretary for environmental and public protection” in this section, as amended by 2010 Ky. Acts ch. 24, sec. 142, has been changed in codification to the “secretary for energy and environment” to reflect the reorganization of certain parts of the Executive Branch, as set forth in Executive Order 2009-535 and confirmed by the General Assembly in 2010 Ky. Acts ch. 24. This change was made by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.

149.020. Cabinet may acquire and dispose of land.

  1. The Energy and Environment Cabinet may receive by donation, purchase, or lease lands for forestry purposes, and may convey, exchange, or lease said lands and may sell timber or other forest products thereon. In exercising this function the cabinet shall be exempted from any provision of KRS 45.301 or 45A.045 , except with respect to the purchase, conveyance, exchange, or inventory of lands.
  2. No land shall be purchased, leased, or received as a donation unless the title thereto is merchantable and has been approved by the Attorney General.

History. 2007i-17, 2007-18: amend. Acts 1948, ch. 201, § 1; 1966, ch. 255, § 142; 1974, ch. 74, Art. III, § 13(3); 1982, ch. 226, § 3, effective July 15, 1982; 1982, ch. 450, § 68, effective July 1, 1983; 1990, ch. 496, § 41, effective July 13, 1990; 2010, ch. 24, § 143, effective July 15, 2010.

Legislative Research Commission Note.

Pursuant to 1982 Acts Chapter 450, § 68, effective July 1, 1983, the reference to KRS 42.030 in subsection (1) of this section is deleted and KRS 45.301 inserted in lieu thereof.

Research References and Practice Aids

Cross-References.

Commonwealth to be named grantee, KRS 56.030 .

Lease or conveyance of real estate is subject to approval of State Property and Buildings Commission, KRS 56.460 , 56.500 .

State Property and Buildings Commission has exclusive power to acquire real estate for state purposes, KRS 56.460 , 56.500 .

Title examination and certification by Finance and Administration Cabinet or Transportation Cabinet, KRS 56.040 .

149.030. Cabinet may establish reserves and lease land.

The Energy and Environment Cabinet may establish forest reserves in places where the land is suitable for the growth of timber and for the propagation of wild animal life. It may lease lands suitable for the purpose of growing timber and adapted to the propagation of game and wild animals. Such leases shall be for a term of not less than twenty (20) nor more than one hundred (100) years, and the rental shall not exceed the amount of state, county and school taxes on the property. The rentals shall be paid not later than December 31 in each year, out of funds accruing to the Energy and Environment Cabinet. All taxes shall be paid by the owners of the property prior to or at the time the rentals are paid by the Energy and Environment Cabinet.

History. 2007-18: amend. Acts 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 144, effective July 15, 2010.

Research References and Practice Aids

Cross-References.

State Property and Buildings Commission to control acquisition or leasing or real estate, KRS 56.460 , 56.500 .

Titles to be approved by Attorney General, KRS 56.040 .

149.040. Control over property — No adverse possession — Cooperation with governmental agencies.

  1. The Energy and Environment Cabinet has complete control over all property acquired or leased by it. It may post all forest reserves and may eject all trespassers from property under its control.
  2. No person shall injure any property under its control, or interfere in any manner with the management and supervision of the property.
  3. No person shall acquire title by adverse possession to any property under control of the cabinet.
  4. The cabinet may cooperate with any department of the state or the federal government, for the purpose of protecting and propagating fish and game.

History. 2007i-17, 2007i-23, 2007i-24, 2007i-26: amend. Acts 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 145, effective July 15, 2010.

Research References and Practice Aids

Treatises

Caldwell’s Kentucky Form Book, 5th Ed., Practice Context for Adverse Possession, § 303.00.

149.050. Leasing and subleasing of lands by cabinet.

  1. The cabinet may lease or rent portions of lands acquired by it to responsible persons, for cultivation and grazing, but in no event shall it lease or rent lands the use of which would be detrimental to the growth of timber or destructive of game or wild animal life. Proceeds resulting from the leasing of such lands shall be deposited into the State Treasury.
  2. The cabinet may, with the consent of the owner of lands leased to it, sublease or rent any of the leased lands in a manner that will not interfere with the growth of timber or the propagation of game and wild animal life. If the lands are subleased or rented under these conditions, the cabinet and the owner shall divide the proceeds arising from the use of the lands, on a fifty-fifty basis, the cabinet’s one-half (1/2) shall be deposited into the State Treasury.
  3. In exercising the functions of this section the cabinet shall be exempted from any provision of KRS 45.301 or 45A.045 .

History. 2007i-21, 2007i-22: amend. Acts 1948, ch. 201, § 2; 1968, ch. 152, § 112; 1974, ch. 74, Art. III, § 13(3); 1982, ch. 142, § 2, effective July 15, 1982; 1982, ch. 450, § 69, effective July 1, 1983; 1990, ch. 496, § 42, effective July 13, 1990.

Legislative Research Commission Note.

Pursuant to 1982 Acts Chapter 450, § 69, effective July 1, 1983, the reference to KRS 42.030 in subsection (3) of this section is deleted and KRS 45.301 inserted in lieu thereof.

Research References and Practice Aids

Cross-References.

Leases are subject to approval of State Property and Buildings Commission, KRS 56.460 , 56.500 .

149.060. Sale of timber from leased lands.

If merchantable timber is taken from land leased to the Energy and Environment Cabinet, one-half (1/2) of the stumpage value of the timber shall be paid into the State Treasury and the other half (1/2) shall be paid to the lessor or his assigns. The sale of timber grown upon leased lands shall be made only by consent of all parties interested in the land or by court order. If all interested parties do not agree to sell the timber, the cabinet may, by a suit in equity, to which all persons interested shall be made parties, obtain an order directing the cabinet to sell merchantable timber on any leased lands.

History. 2007i-19: amend. Acts 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 146, effective July 15, 2010.

149.070. Counsel for cabinet.

When any action is instituted on behalf of the Energy and Environment Cabinet, the county and Commonwealth’s attorney shall represent it in the county in which the action is brought. The Attorney General shall have supervisory authority over all actions instituted for or against the cabinet.

History. 2007i-25: amend. Acts 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 147, effective July 15, 2010.

Research References and Practice Aids

Cross-References.

Attorney General, duties as to state litigation, KRS 15.020 .

State agencies may employ attorneys, KRS 12.210 .

149.080. Forest wardens — Duties — Appointment — Deputies.

Forest wardens employed by the Energy and Environment Cabinet, shall assist in preventing, controlling and extinguishing forest fires, under direction of the cabinet. A forest warden must be a full-time employee of the Energy and Environment Cabinet who has been appointed by the secretary. A deputy forest warden can be a full-time or part-time employee of the cabinet or a non-employee who has been appointed by the secretary to have the same rights and privileges of a forest warden except the issuing of citations or arrests for violations of this chapter or collection of suppression costs.

History. 2007j-1: amend. Acts 1970, ch. 92, § 26; 1974, ch. 74, Art. III, § 13(3); 1982, ch. 142, § 3, effective July 15, 1982; 2010, ch. 24, § 148, effective July 15, 2010.

Research References and Practice Aids

Cross-References.

Employees of administrative departments, KRS 12.060 .

Employment of wardens by Department of Fish and Wildlife Resources and Division of Forestry, KRS 149.010 .

149.083. Interference with forestry officer or employee.

No person shall resist, obstruct, interfere with or threaten, or attempt to intimidate, or in any other manner interfere with any officer or employee of the Energy and Environment Cabinet in the discharge of his duties under the provisions of KRS Chapter 149.

History. Enact. Acts 1966, ch. 23, § 51(1); 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 149, effective July 15, 2010.

149.087. Auto insurance for forestry employees.

  1. The Energy and Environment Cabinet may secure such automobile liability insurance as will reasonably protect the interest of employees of the cabinet, particularly those employees driving trucks or heavy equipment in the conduct of official business.
  2. Policies authorized by this section shall be purchased only in accordance with regulations prescribed by the commissioner of insurance and the secretary of the Finance and Administration Cabinet.

History. Enact. Acts 1966, ch. 23, § 54; 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 150, effective July 15, 2010.

149.090. Arrests — No trespass actions — Summoning help and equipment.

  1. A forest warden, for violation of laws for the protection of the forest of the state, has the following arrest powers:
    1. With a warrant;
    2. Without a warrant any person he observes committing a misdemeanor or a felony; and
    3. Without a warrant when he has reasonable grounds to believe that the person being arrested has committed a felony. No action for trespass shall lie against any forest warden, or person summoned by him, for crossing or working upon lands of another in connection with his duties as forest warden.
  2. A forest warden may summon any resident of the state over eighteen (18) years of age who is physically able to assist in extinguishing forest fires. Inability or failure to pay such persons does not bar the authority of the warden to summon them.
  3. A forest warden may require the use of horses, automobiles, tools and other equipment needed in extinguishing fires. Owners of said required equipment and materials shall receive reasonable compensation therefor, as determined by the forest warden. In case of disagreement upon the terms of compensation, the dispute shall be referred to the secretary for energy and environment, who shall make the final decision.

History. 2007j-2, 2007j-4: amend. Acts 1974, ch. 74, Art. III, § 13(3); 1982, ch. 142, § 4, effective July 15, 1982; 2010, ch. 24, § 151, effective July 15, 2010.

Opinions of Attorney General.

A forest warden may arrest without warrant any person whom he observes committing in his presence a violation of any law enacted for the protection of forests of this state. OAG 63-323 .

Within the state forests a forest warden is authorized to exercise powers of a peace officer so far as concerns any violation of laws enacted for the protection of the forests. OAG 63-323 .

This section states in effect that forest wardens and their assistants are not trespassers when they are carrying out their statutory duties but the immunity granted does not extend to the negligent conduct of such persons while performing their duty which causes damage to the personal and real property of another. OAG 68-570 .

A forest warden may act as a peace officer for the protection of the forests of the state by enforcing KRS 433.753 and 433.757 , but he may not act as a peace officer in enforcing these laws if the littering is not directly related to the protection of the forests of the state. OAG 70-550 .

A forest warden’s power of arrest includes only arrests for violations which can reasonably be expected to injure the forests. OAG 70-550 .

Since a forest warden is authorized by statute to exercise the powers of a peace officer and since KRS 61.300(1) provides that no one shall serve as a non-elective peace officer unless he is 21 years of age or over, the minimum age requirement for a state forest warden is 21 years of age. OAG 73-142 .

149.093. Citation or ticket given violators in lieu of arrest.

If the violation of any section of this chapter is a misdemeanor and is committed in the presence of a forest warden or other law enforcement officer, and there are reasonable grounds to believe that the person being cited will appear to answer the charge, the warden or officer may, in lieu of a physical arrest directed by KRS 149.090 , issue a citation as authorized by KRS 431.015 , 431.450 , 431.452 , and 431.455 . The warden or officer may issue a warning without a penalty in lieu of a citation if the suspected offense is one cited in KRS 149.370 , 149.375 , 149.385 , 149.390 , 149.395 , 149.400 , 149.401 , or 149.405 .

History. Enact. Acts 1966, ch. 23, § 53; 1974, ch. 74, Art. III, § 13(3); 1990, ch. 207, § 1, effective July 13, 1990; 1998, ch. 169, § 4, effective July 15, 1998; 2000, ch. 512, § 13, effective July 14, 2000.

149.097. Rewards for apprehension of persons setting fires.

The secretary for energy and environment may offer rewards out of moneys, appropriated to the Energy and Environment Cabinet, for information leading to the apprehension and conviction of persons violating the laws relating to the setting of fires and forest fire control.

History. Enact. Acts 1966, ch. 23, § 52; 1974, ch. 74, Art. III, § 13(3); 1982, ch. 393, § 50(3); 2010, ch. 24, § 152, effective July 15, 2010.

149.100. Construction of KRS 149.110 and 149.120. [Repealed.]

Compiler’s Notes.

This section (2007j-4a-4, 2007j-4a-5: amend. Acts 1946, ch. 205, § 1) was repealed by Acts 1958, ch. 139, § 11.

149.110. Owner to provide forest fire patrol, or pay cost of; effect of residence on land. [Repealed.]

Compiler’s Notes.

This section (2007j-4a-2, 2007j-4a-3: amend. Acts 1946, ch. 205, § 2; 1948, ch. 202, § 2) was repealed by Acts 1958, ch. 139, § 11.

149.120. Patrol by state; liability of owner. [Repealed.]

Compiler’s Notes.

This section (2007j-4a-1: amend. Acts 1946, ch. 205, § 3; 1948, ch. 202, § 3) was repealed by Acts 1958, ch. 139, § 11.

149.130. Federal forest reserve appropriations for county roads and schools.

  1. All moneys paid to the state under an Act of Congress of May 23, 1908 (35 Stat. 260) as amended, and arising from any national forest reserve created in the state by the federal government, shall be paid over to the Finance and Administration Cabinet and be turned into the State Treasury. The Finance and Administration Cabinet shall keep a separate account of all funds so received.
  2. The treasurer of each county in which there is situated any part of a forest reserve owned by the United States shall ascertain and report to the Finance and Administration Cabinet the name and area of that part of each reserve located in his county. The Finance and Administration Cabinet shall apportion the amount received by reason of each reserve among the counties in which the reserve is located, according to the area of the reserve in each county. If a fund is received from a reserve which lies in only one (1) county, it shall all be apportioned to that county. The Finance and Administration Cabinet shall draw a warrant on the State Treasury in favor of the treasurer of each county for the amount apportioned to that county.
  3. The county treasurer shall place one-half (1/2) of the funds to the credit of the public roads of his county and the other half (1/2) shall be distributed among the school districts in the county according to the area of the reserve in each school district.

History. 2007L-1 to 2007L-4; repealed and reenact., Acts 1990, ch. 476, Pt. V, § 362, effective July 13, 1990.

Compiler’s Notes.

The Act of Congress of May 23, 1908 (35 Stat. 260) referred to in subsection (1) is compiled as 16 USCS § 500.

Research References and Practice Aids

Cross-References.

Consent to acquisition of national forest reserves, KRS 3.080 .

149.135. Definition of “timberland” as used in KRS 149.140 to 149.190. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 202, § 1) was repealed by Acts 1958, ch. 139, § 11.

149.140. Counties may cooperate with Division of Forestry in forest fire control; effect on other laws. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 204, § 1, 1948, ch. 202, § 4) was repealed by Acts 1958, ch. 139, § 11.

149.150. Establishment of county-wide forest fire protection. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 204, § 2) was repealed by Acts 1958, ch. 139, § 11.

149.151. County may pay cost of county-wide fire protection out of general fund or levy assessment on timberland. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 202, § 5) was repealed by Acts 1958, ch. 139, § 11.

149.152. Assessment of timberland; listing with tax commissioner. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 202, § 6) was repealed by Acts 1958, ch. 139, § 11.

149.153. Timberland to be entered on regular tax roll. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 202, § 7) was repealed by Acts 1958, ch. 139, § 11.

149.154. Computation of assessments; placing on tax bills. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 202, § 8) was repealed by Acts 1958, ch. 139, § 11.

149.155. Collection of assessments; receipts; when due; penalties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 202, § 9; 1950, ch. 93, § 2) was repealed by Acts 1958, ch. 139, § 11.

149.156. County Forest Fire Protection Fund; use. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 202, § 10) was repealed by Acts 1958, ch. 139, § 11.

149.157. Protest against listing of property as timberland; hearing. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 202, § 11) was repealed by Acts 1958, ch. 139, § 11.

149.160. Duties of fire wardens — Account of expenses — Payment.

When the Energy and Environment Cabinet determines that a danger of forest fire exists in a county in which the statewide system of forest fire protection has been established under KRS 149.510 to 149.600 , the cabinet shall respond to the forest fire danger and employ those persons and means as, in its judgment, are expedient and necessary to respond to the forest fire danger or to extinguish the fire, within the limits of the expense that it has been authorized to incur in its instructions from the secretary for energy and environment. The cabinet shall keep an itemized account of all expenses thus incurred and immediately send the account verified by affidavit to the secretary for energy and environment for examination. Upon approval by the secretary for energy and environment, the account shall be paid from such fund or funds as are available to the cabinet for such purpose. No such payment shall be made to any person who has intentionally started the fire or to any person whose negligence caused or contributed to the setting of the fire.

History. Enact. Acts 1946, ch. 204, § 3; 1966, ch. 23, § 41; 1974, ch. 74, Art. III, § 13(3); 1998, ch. 169, § 6, effective July 15, 1998; 2010, ch. 24, § 153, effective July 15, 2010.

149.170. No liability for trespass.

No action for trespass shall lie against the secretary for energy and environment, or any agent or employee of the Energy and Environment Cabinet, or any forest warden on account of lawful acts done in legal performance of their duties.

History. Enact. Acts 1946, ch. 204, § 4; 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 154, effective July 15, 2010.

Opinions of Attorney General.

This section and KRS 149.090 state in effect that forest wardens and their assistants are not trespassers when they are carrying out their statutory duties but the immunity granted does not extend to the negligent conduct of such persons while performing their duty which causes damage to the personal and real property of another. OAG 68-570 .

149.175. Exemption from chapter’s requirements for persons certified by the Kentucky Prescribed Fire Council’s Burn Boss Program — Exceptions.

  1. The Division of Forestry may exempt any person certified by the Kentucky Prescribed Fire Council’s Burn Boss Program from the requirements of this chapter, except that fires set under this section shall be in accordance with KRS 149.375 and shall not be conducted under a local burn ban or under a red flag warning day as determined by the National Weather Service.
  2. Persons exempted under this section who set prescribed fires shall give notification of the burn to the Division of Forestry at least twenty-four (24) hours prior to the burn, and notify adjacent landowners and local emergency dispatch the day of the burn.

HISTORY: 2016 ch. 30, § 1, effective July 15, 2016.

149.180. Collection of costs of firefighting from person responsible for fire — Disposition.

Whenever possible, the secretary for energy and environment shall collect the costs of firefighting done and approved as provided in KRS 149.160 , from the person responsible for the origin of the fire by his negligence or intent. The recovered costs shall be deposited in a special fund in the Energy and Environment Cabinet. The recovered costs shall be repaid to the county in which the costs were incurred, if such county has fully paid its annual assessment to the statewide system as provided for in KRS 149.540 for the year in which the fire suppression costs were incurred. If a county is not eligible to receive the recovered costs, the money shall be used by the Division of Forestry to improve fire protection services. The funds so repaid to the county shall be placed in the county forest fire protection fund provided for in KRS 149.590 . Any money in the Energy and Environment Cabinet’s, or its predecessor’s, special fund upon July 15, 1998, that were not repaid to a county for having failed to fully pay its annual assessment, shall be used by the Division of Forestry to improve fire protection services. In the event the suppression cost is not collected, the Commonwealth’s attorney of the county in which the fire occurred shall institute and prosecute the necessary proceedings. Costs recovered under this section shall be ordered to be paid directly to the Energy and Environment Cabinet. The court shall not direct that the costs be paid through the circuit clerk.

History. Enact. Acts 1946, ch. 204, § 5; 1948, ch. 202, § 12; 1966, ch. 23, § 42; 1974, ch. 74, Art. III, § 13(3); 1982, ch. 142, § 5, effective July 15, 1982; 1998, ch. 169, § 5, effective July 15, 1998; 2002, ch. 183, § 11, effective August 1, 2002; 2010, ch. 24, § 155, effective July 15, 2010.

149.190. Payments by counties to Division of Forestry; computation; crediting and use; liability of county; settlement of disputes as to acreage. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 204, § 6; 1948, ch. 202, § 13) was repealed by Acts 1958, ch. 139, § 11.

149.200. Power of county to acquire public forest. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 93, § 1) was repealed by Acts 1978, ch. 118, § 19.

149.210. Notice of meeting of fiscal court to consider acquisition of forest. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 93, § 2; 1966, ch. 239, § 142) was repealed by Acts 1978, ch. 118, § 19.

149.220. Order for purchase of forest lands — Source of payment. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 93, § 3) was repealed by Acts 1978, ch. 118, § 19.

149.230. Tax levy — Appropriations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 93, § 4; 1960, ch. 219, § 1) was repealed by Acts 1978, ch. 118, § 19.

149.240. Acceptance of gift or devise of lands for forest. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 93, § 5) was repealed by Acts 1978, ch. 118, § 19.

149.250. Planting of trees — Use of revenue from sale of timber. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 93, § 6; 1960, ch. 219, § 2) was repealed by Acts 1978, ch. 118, § 19.

149.260. Preservation of forest — Use for recreational purposes. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 93, § 7; 1960, ch. 219, § 3) was repealed by Acts 1978, ch. 118, § 19.

149.270. Supervision of county forest — Employees — Cooperation of division of forestry — Cost of operation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 93, § 8; 1960, ch. 219, § 4) was repealed by Acts 1978, ch. 118, § 19.

149.280. Forestry management under cooperative agreements — Payment of cost of services — Use of proceeds.

  1. The secretary for energy and environment, or his authorized agent, may, upon request, and whenever he deems it essential to the best interests of the people of the Commonwealth, cooperate with counties, cities, corporations, institutions or individuals in preparing plans for the protection, management and replacement of trees, woodlands and timber tracts, under an agreement that the parties obtaining such assistance pay at least the field expenses of the men employed in preparing said plans. Services rendered under this cooperative plan may include the designation of trees for sale or removal, measuring or estimating the commercial volume contained in the trees designated, marketing advice, and general forestry advice concerning the management of the landowner’s forest.
  2. When services are rendered under this section, the landowner or his agent, upon presentation of a statement, shall pay to the Energy and Environment Cabinet, within thirty (30) days of receipt of the statement, the amount due. The amounts so collected by the Energy and Environment Cabinet shall be paid into the State Treasury and shall be credited to a special fund for forest management and marketing, and, with such other funds as may be appropriated by the General Assembly, or contributed by the United States or any governmental or private agency for such purposes, shall be used and disbursed by the Energy and Environment Cabinet for such purpose.

History. Enact. Acts 1948, ch. 204; 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 156, effective July 15, 2010.

149.290. Fires not to be set without taking precautions to prevent spread. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 203, § 1) was repealed by Acts 1964, ch. 158, § 21.

149.300. Fires not to be set near woodland or brushland during certain months except during certain hours; exceptions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 203, §§ 2, 3; 1950, ch. 91) was repealed by Acts 1964, ch. 158, § 21.

149.305. Emergency proclamations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 94, § 1) was repealed by Acts 1964, ch. 158, § 21.

149.310. Southeastern Interstate Forest Fire Protection Compact.

The Governor, on behalf of the Commonwealth of Kentucky, is hereby authorized to execute a compact in substantially the following form, with any one or more of the States of Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West Virginia, and the General Assembly hereby signifies in advance its approval and ratification of such compact:

History. Enact. Acts 1954, ch. 100, § 1.

SOUTHEASTERN INTERSTATE FOREST FIRE PROTECTION COMPACT

ARTICLE I.

The purpose of this compact is to promote effective prevention and control of forest fires in the Southeastern region of the United States by the development of integrated forest fire plans, by the maintenance of adequate forest fire fighting services by the member states, by providing for mutual aid in fighting forest fires among the compacting states of the region and with states which are party to other Regional Forest Fire Protection compacts or agreements, and for more adequate forest protection.

ARTICLE II.

This compact shall become operative immediately as to those states ratifying it whenever any two or more of the States of Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia, which are contiguous have ratified it and Congress has given consent thereto. Any state not mentioned in this article which is contiguous with any member state may become a party to this compact, subject to approval by the legislature of each of the member states.

ARTICLE III.

In each state, the state forester or officer holding the equivalent position who is responsible for forest fire control shall act as compact administrator for that state and shall consult with like officials of the other member states and shall implement cooperation between such states in forest fire prevention and control.

The compact administrators of the member states shall coordinate the services of the member states and provide administrative integration in carrying out the purposes of this compact.

There shall be established an advisory committee of legislators, forestry commission representatives, and forestry or forest products industries representatives which shall meet from time to time with the compact administrators. Each member state shall name one member of the Senate and one member of the House of Representatives who shall be designated by that state’s commission on interstate cooperation, or if said commission cannot constitutionally designate the said members, they shall be designated in accordance with laws of that state; and the Governor of each member state shall appoint two representatives, one of whom shall be associated with forestry or forest products industries to comprise the membership of the advisory committee. Action shall be taken by a majority of the compacting states, and each state shall be entitled to one vote.

The compact administrators shall formulate and, in accordance with need, from time to time, revise a regional forest fire plan for the member states.

It shall be the duty of each member state to formulate and put in effect a forest fire plan for that state and take such measures as may be necessary to integrate such forest fire plan with the regional forest fire plan formulated by the compact administrators.

ARTICLE IV.

Whenever the state forest fire control agency of a member state requests aid from the state forest fire control agency of any other member state in combating, controlling or preventing forest fires, it shall be the duty of the state forest fire control agency of that state to render all possible aid to the requesting agency which is consonant with the maintenance of protection at home.

ARTICLE V.

Whenever the forces of any member states are rendering outside aid pursuant to the request of another member state under this compact, the employees of such state shall, under the direction of the officers of the state to which they are rendering aid, have the same powers (except the power of arrest), duties, rights, privileges and immunities as comparable employees of the state to which they are rendering aid.

No member state or its officers or employees rendering outside aid pursuant to this compact shall be liable on account of any act or omission on the part of such forces while so engaged, or on account of the maintenance, or use of any equipment or supplies in connection therewith: provided, that nothing herein shall be construed as relieving any person from liability for his own negligent act or omission, or as imposing liability for such negligent act or omission upon any state.

All liability, except as otherwise provided hereinafter, that may arise either under the laws of the requesting state or under the laws of the aiding state or under the laws of a third state on account of or in connection with a request for aid, shall be assumed and borne by the requesting state.

Any member state rendering outside aid pursuant to this compact shall be reimbursed by the member state receiving such aid for any loss or damage to, or expense incurred in the operation of any equipment answering a request for aid, and for the cost of all materials, transportation, wages, salaries, and subsistence of employees and maintenance of equipment incurred in connection with such request: provided, that nothing herein contained shall prevent any assisting member state from assuming such loss, damage, expense or other cost or from loaning such equipment or from donating such service to the receiving member state without charge or cost.

Each member state shall provide for the payment of compensation and death benefits to injured employees and the representatives of deceased employees in case employees sustain injuries or are killed while rendering outside aid pursuant to this compact, in the same manner and on the same terms as if the injury or death were sustained within such state.

For the purposes of this compact the term employee shall include any volunteer or auxiliary legally included within the forest firefighting forces of the aiding state under the laws thereof.

The compact administrators shall formulate procedures for claims and reimbursement under the provisions of this article, in accordance with the laws of the member states.

ARTICLE VI.

Ratification of this compact shall not be construed to affect any existing statute so as to authorize or permit curtailment or diminution of the forest firefighting forces, equipment, services or facilities of any member state.

Nothing in this compact shall be construed to limit or restrict the powers of any state ratifying the same to provide for the prevention, control and extinguishment of forest fires, or to prohibit the enactment or enforcement of state laws, rules or regulations intended to aid in such prevention, control and extinguishment in such state.

Nothing in this compact shall be construed to affect any existing or future cooperative relationship or arrangement between any federal agency and a member state or states.

ARTICLE VII.

The compact administrators may request the United States Forest Service to act as a research and coordinating agency of the Southeastern Interstate Forest Fire Protection Compact in cooperation with the appropriate agencies in each state, and the United States Forest Service may accept responsibility for preparing and presenting to the compact administrators its recommendations with respect to the regional fire plan. Representatives of any federal agency engaged in forest fire prevention and control may attend meetings of the compact administrators.

ARTICLE VIII.

The provisions of Articles IV and V of this compact which relate to mutual aid in combating, controlling or preventing forest fires shall be operative as between any state party to this compact and any other state which is party to a regional forest fire protection compact in another region: provided, that the legislature of such other state shall have given its assent to such mutual aid provisions of this compact.

ARTICLE IX.

This compact shall continue in force and remain binding on each state ratifying it until the legislature or the Governor of such state, as the law of such state shall provide, takes action to withdraw therefrom. Such action shall not be effective until six months after notice thereof has been sent by the chief executive of the state desiring to withdraw to the chief executives of all states then parties to the compact.

149.315. Operative date of compact — Exchange of official documents.

When the Governor shall have executed a compact, as authorized by KRS 149.310 , on behalf of the Commonwealth of Kentucky and shall have caused a verified copy thereof to be filed with the Secretary of State, and when said compact shall have been ratified by one or more of the states named in KRS 149.310 , then said compact shall become operative and effective as between the Commonwealth of Kentucky and such other state or states. The Governor is hereby authorized and directed to take such action as may be necessary to complete the exchange of official documents between the Commonwealth of Kentucky and any other state ratifying said compact.

History. Enact. Acts 1954, ch. 100, § 2.

149.320. Assent by General Assembly to mutual aid provisions of compacts.

The General Assembly hereby gives its assent to the mutual aid provisions of Articles IV and V of the South Central Interstate Forest Fire Protection Compact in accordance with Article VIII of that compact relating to interregional mutual aid; and the General Assembly also hereby gives its assent to the mutual aid provisions of Articles IV and V of the Middle Atlantic Interstate Forest Fire Protection Compact in accordance with Article VIII of that compact relating to interregional mutual aid.

History. Enact. Acts 1954, ch. 100, § 3.

149.325. Compact administrator.

The secretary for energy and environment shall be the compact administrator representing the Commonwealth of Kentucky as provided for in Article III of the compact approved by KRS 149.310 . The Energy and Environment Cabinet is hereby authorized to do any and all things required to make effective the provisions of the compact.

History. Enact. Acts 1954, ch. 100, § 4; 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 157, effective July 15, 2010.

Forest Conservation

149.330. Definitions for KRS 149.330 to 149.355.

As used in KRS 149.330 to 149.355 , unless the context requires otherwise:

  1. “Best management practices” means effective, practical, economical, structural, or nonstructural methods that prevent or reduce the movement of sediment, nutrients, pesticides, and other pollutants from the land to surface or groundwater, or that otherwise protect water quality from potential adverse effects of timber harvesting operations as developed by the Division of Forestry and approved by the Agriculture Water Quality Authority;
  2. “Cabinet” means the Energy and Environment Cabinet;
  3. “Director” means the director of the Division of Forestry;
  4. “Division” means the Division of Forestry;
  5. “Logger” means any person who conducts timber harvesting operations for commercial purposes;
  6. “Operator” means any person who operates or exercises control over any timber harvesting operations;
  7. “Person” means any natural person or any director, officer, or agent of a partnership, corporation, association, society, joint stock company, firm, company, or business organization. “Person” also means any agency or instrumentality of federal, state, or local government, including any publicly-owned utility or any publicly-owned corporation of federal, state, or local government;
  8. “Timber harvesting operations” means activities directly related to the cutting or removal of trees from the forest as a raw material for commercial processes or purposes, including timber preharvesting and postharvesting activities associated with the implementation of appropriate best management practices. “Timber harvesting operations” does not include:
    1. The cutting of firewood;
    2. The cutting of evergreens grown for and cut for the traditional Christmas holiday season;
    3. The removal of trees incidental to clearing for coal mining or farm purposes or incidental to ground-disturbing construction activities, including well sites, and access roads and gathering lines for oil and natural gas operations;
    4. The cutting of trees for maintaining existing, or during construction of, rights-of-way for public highways or public utilities, unless those trees are being sold or provided as raw material for commercial wood product purposes; or
    5. The cutting of trees by an individual, nonindustrial landowner on his own property, if the cutting is performed by the individual, nonindustrial landowner; and
  9. “Water pollution” has the same meaning as in KRS 224.1-010 .

HISTORY: Enact. Acts 1998, ch. 555, § 1, effective July 15, 1998; 2010, ch. 24, § 158, effective July 15, 2010; 2015 ch. 41, § 1, effective June 24, 2015.

149.332. Legislative findings and declarations — Purpose — Construction with other laws.

The General Assembly finds, determines, and declares as follows:

  1. Healthy, sustainable forests that are ecologically sound provide economic opportunities and benefit the overall quality of life for all Kentuckians;
  2. High quality forests provide clean air and water and biodiversity;
  3. A diverse forest economy must include forest product industries, recreation, and tourism;
  4. Timber harvesting operations must be conducted in an ecologically sound manner;
  5. Kentucky must promote the stewardship of its public and private forest lands while recognizing the rights and responsibilities of private landowners;
  6. Comprehensive continuous forest inventories are needed to provide information to make decisions to meet present and future needs;
  7. Increased awareness of the economic, social, and ecological importance of Kentucky’s forests is needed to:
    1. Educate the public and industry in order to make wise decisions for the future of the forest resource; and
    2. Recognize and respond to threats to the forest resource;
  8. It is the purpose of KRS 149.330 to 149.355 to provide private landowners and loggers with education, technical assistance, and incentives that encourage them to manage their properties and carry out timber harvesting operations that will assure sustainable forests in the Commonwealth; and
  9. KRS 149.330 to 149.355 shall not be construed as affecting the requirements of any other laws of the Commonwealth relating to environmental protection, including water quality or forestry.

History. Enact. Acts 1998, ch. 555, § 2, effective July 15, 1998.

149.334. Powers and duties of cabinet as to forest conservation — Authority for administrative regulations.

In addition to any other powers and duties vested in it by law, the cabinet has the authority, power, and duty to:

  1. Promote the sustainability of Kentucky’s forest ecosystems;
  2. Improve, maintain, and protect the health and condition of Kentucky’s forest resources;
  3. Promote the most efficient utilization of forest resources;
  4. Provide educational opportunities to increase landowner, logger, and public appreciation, awareness, and knowledge of Kentucky’s forests; and
  5. Promulgate administrative regulations under KRS Chapter 13A to accomplish the purposes of KRS 149.330 to 149.355 .

History. Enact. Acts 1998, ch. 555, § 3, effective July 15, 1998.

149.336. Information and education program.

  1. There is established within the division an information and education program for the following purposes:
    1. To develop public awareness of the importance of the forests of Kentucky;
    2. To promote forest stewardship and sound forest utilization practices of private woodland owners and the forest industry; and
    3. To coordinate with other agencies and organizations to assure effective, long-term forest conservation programs.
  2. The division shall implement an educational program that emphasizes sustainable forests and the full range of economic, ecological, and social opportunities provided by privately owned forests by:
    1. Sponsoring field days that enable individual woodland owners to recognize and resolve problems that they encounter in dealing with their woodland resources;
    2. Developing demonstration programs involving forests and management of forest ecosystems including urban forests;
    3. Developing and implementing programs that give special attention to educational needs of small, private, nonindustrial forest landowners; and
    4. Supporting the Kentucky Cooperative Extension Service in promoting and conducting technology transfer education programs specifically for woodland owners.

History. Enact. Acts 1998, ch. 555, § 4, effective July 15, 1998.

149.338. Inventory of Kentucky forests to be maintained — Assistance with implementation of surveys.

  1. The division shall maintain an inventory of Kentucky’s forests and provide a report on the status of Kentucky’s forests on a biennial basis. The status report shall address, at a minimum, timber growth and removal, commercial species composition, timber quality, market information, forest health, and industry activity. The division shall cooperate with the United States Forest Service in carrying out the provisions of this subsection.
  2. In order to have accurate, current, and complete information and data, the division shall:
    1. Assist the implementation of the Southern Annual Forest Inventory System by supplying five (5) two-person crews to perform annual data collection;
    2. Develop and implement annual surveys of mills, landowners, timber buyers, and other appropriate entities to determine levels of harvesting and timber and log prices; and
    3. Use Geographic Information System (GIS) technology and ensure coordination with statewide GIS efforts.

History. Enact. Acts 1998, ch. 555, § 5, effective July 15, 1998.

149.340. Forest stewardship incentives fund — Use.

There is established a forest stewardship incentives fund to be administered by the division. Moneys from the fund shall be used for cost-share programs to provide financial assistance to landowners for the development of stewardship plans, and for stewardship practices, including, but not limited to, reforestation and afforestation, forest improvement, soil and water protection and improvement, riparian and wetland protection and improvement, wildlife habitat improvement and permanent wildlife planting, and forest recreation enhancement.

History. Enact. Acts 1998, ch. 555, § 6, effective July 15, 1998.

149.342. Timber harvesting operations — Master logger training and educational requirements — Temporary master logger designation.

  1. After two (2) years from July 15, 1998, no person shall conduct timber harvesting operations within the Commonwealth unless there is on the site during the timber harvesting operations at least one (1) logger in charge of the harvest who has successfully completed the Master Logger Program or who has received a temporary master logger designation in accordance with the cabinet requirements as provided for in subsection (4) of this section.
  2. After successful completion of the Master Logger Program, continuing education shall be required of the loggers every three (3) years.
  3. The cabinet shall specify the education and training requirements for the Master Logger Program as developed by the University of Kentucky, the Kentucky Forest Industries Association, and the division, shall specify the requirements for continuing education, and, may establish a basic fee for the program that bears a reasonable relationship to the cost of training.
  4. The cabinet shall specify requirements for a temporary master logger designation, which shall be valid for four (4) months.
  5. A logger or operator who uses a temporary master logger shall notify the division prior to beginning the timber harvesting operation on which a temporary master logger is on site and in charge.
  6. The division shall maintain a current list of all loggers who have successfully completed the Master Logger Program and required continuing education, and shall make the list available to the public. All master loggers shall provide the cabinet with a published phone number.
  7. Loggers who have previously completed the Kentucky Master Logger Program are considered to be in compliance with subsection (1) of this section.
  8. Any logger who primarily uses mules or horses in the logging operation shall be exempt from the Master Logger Program.
  9. After two (2) years from July 15, 1998, all state parks shall have on staff at least one (1) employee who has completed the Master Logger Program.

History. Enact. Acts 1998, ch. 555, § 7, effective July 15, 1998; 2005, ch. 39, § 1, effective June 20, 2005.

149.344. Use of appropriate best management practices — Violation — Noncompliance — Administrative regulations governing bad actor designation — Procedure after multiple violations — Opportunity for administrative hearing.

  1. Any logger or operator engaged in the conduct of any timber harvesting operations shall use appropriate best management practices.
  2. No logger or operator shall conduct any timber harvesting operations in a manner that is causing or will likely cause water pollution.
  3. If the cabinet determines that a logger or operator engaged in timber harvesting operations has failed to use the appropriate best management practices or is causing water pollution, the cabinet shall give the logger or operator a written warning of the facts alleged to constitute the failure to use the best management practice or the water pollution, and a reasonable period for abatement and compliance.
  4. If, after the time for abatement in the written warning, the cabinet determines that the logger or operator has failed to implement the appropriate best management practices or has failed to abate the water pollution, the logger or operator will be provided an opportunity for an informal conference with the regional forester. After the opportunity for an informal conference, if the cabinet determines that the logger or operator has failed to implement the appropriate best management practices or has failed to abate the water pollution, the cabinet shall issue a notice of violation stating the best management practice that the logger or operator has failed to implement or the facts alleged to constitute the water pollution, and order the logger or operator to implement corrective measures within a specified period of time.
  5. If, after the issuance of a notice of violation, the logger or operator fails to implement the best management practice or corrective measures, the cabinet shall issue a special order mandating the logger or operator to immediately implement the best management practice or the corrective measures. The cabinet may also order the logger or operator to cease all or a portion of the timber harvesting operation constituting the violation, and if the cabinet does so, the logger or operator shall cease all or a portion of the timber harvesting operation, until an inspection determines that the violation has been abated. At the time the special order is issued, the cabinet shall notify the logger or operator of the opportunity for an administrative hearing under KRS 149.346(2), to be held within five (5) working days of the receipt of a written request made by the logger or operator.
  6. If the cabinet finds that any logger or operator is conducting any timber harvesting operations in violation of KRS 149.342(1) or in a manner that is causing or is likely to cause water pollution that is presenting or will likely present an imminent and substantial danger to the public health, safety, or welfare, or to the health of animals, fish, or aquatic life, or to a public water supply, or to recreational, commercial, agricultural, or industrial uses, the cabinet may issue an emergency order directing the logger or operator to immediately cease the activity and implement corrective measures within a reasonable time, and the logger or operator shall immediately cease the activity and implement corrective measures. At the time the order is issued, the cabinet shall also notify the logger or operator of the opportunity for an administrative hearing under KRS 149.346(2) to be held within five (5) working days of the receipt of a written request. The commencement of proceedings by the cabinet under subsection (3), (4), (5), or (10) of this section shall not preclude the cabinet from issuing an emergency order under this subsection.
  7. Notification under this section shall be by certified mail, return receipt requested, sent to the last known address of the logger or operator, or by hand delivery by the cabinet.
  8. If the logger or operator fails or refuses to cease activity or comply with and implement the best management practices or corrective measures in a special order issued under subsection (5) of this section or fails to cease activity and implement corrective measures in an emergency order under subsection (6) of this section, unless extended by the cabinet, the logger or operator shall be deemed a bad actor and shall be subject to civil penalties under KRS 149.348 after an opportunity for a hearing under KRS 149.346 . The cabinet shall have the authority to remove or terminate bad actor designations from loggers or operators that demonstrate adherence to implementing best management practices, have paid all fines and penalties imposed by the cabinet, and have completed corrective action on sites with violations.
  9. The cabinet may promulgate administrative regulations to establish rules and procedures to remove or terminate the bad actor designation from a logger or operator that was previously designated a bad actor under subsection (8) of this section.
  10. If the cabinet determines that a logger or operator engaged in timber harvesting operations has failed to use the appropriate best management practices in violation of this section, and the logger or operator has been issued two (2) or more bad actor designations under KRS 149.346 , the cabinet shall immediately issue a warning and, if the violations are not corrected after a period defined by the warning but no longer than one (1) week, shall issue an order directing the logger or operator to immediately cease the activity and implement corrective measures within a reasonable time, and the logger or operator shall immediately cease the activity and implement corrective measures. At the time the order is issued, the cabinet shall also notify the logger or operator of the opportunity for an administrative hearing under KRS 149.346 (2) to be held within five (5) working days of the receipt of a written request.
    1. Any logger or operator who has been designated a bad actor under subsection (8) of this section shall provide prior notice to the appropriate regional office or offices of the division before engaging in any timber harvesting operation regulated by the cabinet until he or she has paid all civil penalties and performed all of the site remediation required by the cabinet. (11) (a) Any logger or operator who has been designated a bad actor under subsection (8) of this section shall provide prior notice to the appropriate regional office or offices of the division before engaging in any timber harvesting operation regulated by the cabinet until he or she has paid all civil penalties and performed all of the site remediation required by the cabinet.
    2. The cabinet shall promulgate administrative regulations in accordance with KRS Chapter 13A to set forth the form and manner of the notification required by this subsection. The notification requirements of this subsection shall take effect on the effective date of the administrative regulations required by this paragraph.
  11. Beginning on January 1, 2016, if the cabinet finds that any logger or operator has three (3) or more bad actor designations under subsection (8) of this section, the cabinet shall issue an emergency order directing the logger or operator to immediately cease all timber harvesting operations in the Commonwealth. Upon receiving the emergency order, the logger or operator shall cease all timber harvesting operations in the Commonwealth until he or she has performed all of the site remediation required by the cabinet and has either paid all civil penalties or remains up to date on a payment plan for civil penalties with the cabinet. At the time the order is issued, the cabinet shall also notify the logger or operator of the opportunity for an administrative hearing under KRS 149.346(2) to be held within five (5) working days of the receipt of a written request. The commencement of proceedings by the cabinet under subsection (3), (4), (5), or (10) of this section shall not preclude the cabinet from issuing an emergency order under this subsection. A logger or operator who otherwise complies with the requirements of this subsection shall not be required to remove any of his or her bad actor designations as a condition of being allowed to restart timber harvesting operations in the Commonwealth.
  12. All bad actor designations issued under subsection (8) of this section, including those issued prior to June 24, 2015, shall be included in determining the applicability of this section to any logger or operator.

History. Enact. Acts 1998, ch. 555, § 8, effective July 15, 1998; 2005, ch. 39, § 2, effective June 20, 2005; 2006, ch. 43, § 1, effective July 12, 2006; 2015 ch. 41, § 2, effective June 24, 2015.

149.346. Administrative hearings.

  1. If the cabinet has evidence that a violation of KRS 149.342(1) or 149.344(11) has occurred, or has deemed a logger or operator to be a bad actor under KRS 149.344(8), the cabinet shall serve written notice of the determination and the provision alleged to have been violated, and the cabinet shall require the person complained against to answer the charges at an administrative hearing to be held not less than twenty-one (21) days after the date of the notice, unless the person complained against waives the twenty-one (21) day period.
  2. Any person not previously heard who considers himself aggrieved by any determination of the cabinet under KRS 149.330 to 149.355 may file a petition alleging that the determination is contrary to law or fact and is injurious to him, citing the grounds and reasons therefor, and demanding an administrative hearing. Unless the cabinet considers the petition frivolous, it shall schedule an administrative hearing before the cabinet not less than ninety (90) days after the date of the notice, unless the person complained against waives the ninety (90) day period, except that hearings requested under KRS 149.344(5) and (6) shall be held within five (5) working days of receipt of a petition. The right to demand a hearing under this subsection shall be limited to a period of thirty (30) days after the petitioner has had actual notice of the determination complained of, or could have had notice. The cabinet shall be represented at the administrative hearing by the Office of Legal Services.
  3. All hearings under KRS 149.330 to 149.355 shall be conducted under KRS 224.10-440 . Appeals may be taken from all final orders under KRS 224.10-470 .

HISTORY: Enact. Acts 1998, ch. 555, § 9, effective July 15, 1998; 2015 ch. 41, § 3, effective June 24, 2015; 2018 ch. 29, § 48, effective July 14, 2018.

149.348. Assessment of civil penalties — Personal liability.

  1. Any operator or logger who is deemed by the cabinet to be a bad actor under KRS 149.344(8) or who violates KRS 149.342(1) or 149.344(11) may, after an opportunity for an administrative hearing, be assessed a civil penalty not to exceed one thousand dollars ($1,000) for each violation. In determining the amount of the penalty, consideration shall be given to the operator’s or logger’s history of noncompliance; the seriousness of the violation and any damage caused, including any irreparable harm to the environment or hazard to public health or safety or the health and safety of animals, fish, or aquatic life; the degree of fault and whether the conduct was intentional or negligent; and the demonstrated good faith in remedying the pollution. The penalties shall be recoverable in an action brought in the name of the Commonwealth of Kentucky by the cabinet’s Office of Legal Services. All sums recovered shall be deposited in the Forest Stewardship Incentives Fund. The Circuit Court in the county in which the violation occurred shall have concurrent jurisdiction and venue of all civil and injunctive actions instituted by the cabinet for the enforcement of the provisions of KRS 149.330 to 149.355 or the orders and administrative regulations promulgated by the cabinet.
  2. Notwithstanding KRS Chapters 271B to 275 or any other provision of law to the contrary, any director, officer, or agent of an operator or logger doing business as a partnership, corporation, association, society, joint stock company, firm, company, or business organization shall be personally liable, jointly and severally, for the civil penalties incurred by the operator or logger under this section.

HISTORY: Enact. Acts 1998, ch. 555, § 10, effective July 15, 1998; 2015 ch. 41, § 4, effective June 24, 2015; 2018 ch. 29, § 49, effective July 14, 2018.

149.350. Forestry Best Management Practices Board.

  1. There is hereby established a Forestry Best Management Practices Board consisting of thirteen (13) members for the purposes of updating Kentucky’s forest practice guidelines for water quality management and the Division of Forestry’s administrative regulations regarding timber harvesting operations, and supervising the implementation of forestry best management practices and timber harvesting operations regulations by the Division of Forestry. The offices of the board shall be maintained at a place designated by the board.
  2. The initial appointments to the board shall be made within one (1) year of July 15, 1998, and the appointments shall be for staggered terms to assure continuity. The Governor shall appoint members to the board representing the following:
    1. Five (5) members who are farmers or woodland owners with at least fifty (50) acres of woodland and who are actively engaged in woodland management:
      1. One (1) of these members from a list of three (3) persons nominated by the Kentucky Woodland Owners Association;
      2. One (1) of these members from a list of three (3) persons nominated by the Kentucky Department of Agriculture;
      3. One (1) of these members from a list of three (3) persons nominated by the Kentucky Farm Bureau Federation; and
      4. Two (2) of these members shall be farmers at large;
    2. One (1) logger in good standing;
    3. One (1) member of the Department of Forestry of the University of Kentucky;
    4. One (1) member of the Kentucky Division of Forestry;
    5. Three (3) members of a Kentucky wood industry; and
    6. Two (2) members at large who are woodland owners.
  3. Except for initial staggered appointments, board memberships shall be for a period of four (4) years, and members may be appointed to no more than two (2) full consecutive terms. Appointments to the board shall be made consistent with subsection (2) of this section.
  4. The chair of the board shall be chosen from the members selected to meet the criteria in subsection (2) of this section.
  5. The board shall review existing forestry best management practices within one (1) year after establishment of the board and shall conduct periodic reviews for rewriting the best management practices regulations no sooner than every five (5) years thereafter.
  6. The board shall oversee implementation of best management practice education and enforcement by the Division of Forestry.
  7. The board shall meet at least once a year for the purpose of conducting its oversight responsibilities.
  8. The board shall be attached to the division for administrative purposes. The division shall provide funds necessary for board meetings, travel expenses, and other administrative support, including but not limited to staff assistance at meetings, report preparation, and record keeping.
  9. The board shall present its findings and recommendations to the Office of the Governor and the Legislative Research Commission when the board deems appropriate or when the Office of the Governor specifically requests a report. The board shall provide a summary report of its findings and recommendations to the Office of the Governor every five (5) years and to the Legislative Research Commission, if deemed appropriate.

History. Enact. Acts 1998, ch. 555, § 11, effective July 15, 1998; 2006, ch. 56, § 1, effective July 12, 2006.

149.355. Short title for KRS 149.330 to 149.355.

KRS 149.330 to 149.355 may be cited as the “Kentucky Forest Conservation Act.”

History. Enact. Acts 1998, ch. 555, § 12, effective July 15, 1998.

Forest Fire Prevention

149.360. Public policy declared.

The General Assembly of the Commonwealth of Kentucky declares as a public policy of the Commonwealth the prevention and control of forest fires on or threatening the forest land within the Commonwealth in order to preserve forest and other natural resources, enhance the growth and maintenance of forests, conserve forest cover on watersheds, protect recreational, wildlife and other values, promote stability of forest-using industries, and prevent loss of life and damage to property from wildfires and other conflagrations.

History. Enact. Acts 1964, ch. 158, § 1.

NOTES TO DECISIONS

1.Discretionary Acts.

While a division of forestry had a ministerial duty to fight a forest fire under KRS 149.360 , the methods used to fight that fire, including determinations that the fire had been contained and it was appropriate to leave the area, were discretionary; therefore, the division was not liable for negligence for a burned garage. Under KRS 44.073(2), the Kentucky Board of Claims had jurisdiction over claims involving the negligent performance of ministerial acts. Energy & Env't Cabinet v. Robinson, 363 S.W.3d 24, 2012 Ky. App. LEXIS 51 (Ky. Ct. App. 2012).

149.365. Definitions for KRS 149.360 to 149.430 and 149.991.

As used in KRS 149.360 to 149.430 and 149.991 , unless the context requires otherwise:

  1. “Secretary” means the secretary for energy and environment.
  2. “Cabinet” means the Energy and Environment Cabinet.
  3. “Person” means an individual, corporation, partnership, association, municipality, state and federal government, or other public body or other legal entity, or any officer, employee or agent of any of the foregoing.
  4. “Timberland” means any land which has enough timber or woody brush, standing or down, to constitute a fire menace to itself or adjoining lands, but does not include lands under cultivation or entirely in grass, nor land that is an isolated fire risk unless a fire on it would imperil the lands of an adjoining landowner.
  5. “Flammable material” shall include but is not limited to refuse, debris, waste forest material, brush, stumps, logs, rubbish, fallen timber, grass, stubble, leaves, slash, and grain.

History. Enact. Acts 1964, ch. 158, § 2; 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 159, effective July 15, 2010.

NOTES TO DECISIONS

1.“Timberland.”

Evidence that: (1) fire was extinguished by two men who identified themselves as part-time forestry workers, (2) much of the county was included in a National Forest, (3) the land was referred to as “your timberland or your land up there” in a question by the Commonwealth’s Attorney to the owner, and (4) the location of the land was testified to by the owner, was insufficient to prove that the land burned was timberland as defined in the statute. Coomer v. Commonwealth, 694 S.W.2d 471, 1985 Ky. App. LEXIS 624 (Ky. Ct. App. 1985).

149.370. Acts creating fire hazards in forests prohibited.

No person shall:

  1. Within or adjacent to timberland, dispose of a lighted match, cigarette, cigar, ashes, or other flaming or glowing substance, or any other substance or thing in such condition that it is likely to ignite a forest, brush, grass, or woods fire, or throw or drop any of the aforesaid objects or substances from a moving vehicle or drop or leave any of the aforesaid objects or substances within the limits of the right-of-way of any road or highway in such timberland. The driver of a moving vehicle shall be deemed prima facie liable where it cannot be determined which of the occupants of the moving vehicle threw or dropped any of the aforesaid objects or substances.
  2. Smoke in timberland during an emergency period of fire danger as proclaimed in KRS 149.405 .
  3. Within or adjacent to timberland, set a backfire or cause a backfire to be set, except under the direct supervision of the Energy and Environment Cabinet, or unless it can be established that the setting of such backfire is necessary for the purpose of saving life or valuable property.
  4. Without authority, destroy, deface, or remove any notice, sign, or poster of the Energy and Environment Cabinet, posted for the better protection of wood lots, forests, or wild lands from fire or trespass.
  5. Use or operate within or adjacent to timberland a welding torch, tarpot, or other device which may cause a fire, without clearing flammable material surrounding the operation or without taking such other reasonable precautions necessary to ensure against the starting and spreading of fire.
  6. Discharge or cause to be discharged a gun firing incendiary or tracer bullets or tracer charge or combustible gun wadding onto or across any timberland.
  7. Have in his possession on timberland any incendiary or tracer bullet or tracer charge, except in the course of transporting the same in conformity with law.
  8. In or adjacent to timberland, set fire or direct another to set fire to any flammable material for debris removal, cooking, heating, or to provide light without first obtaining permission from the landowner and taking necessary precautions to prevent the fire from spreading to adjacent lands. All burning materials shall be attended until extinguished.

History. Enact. Acts 1964, ch. 158, § 3; 1966, ch. 23, § 43; 1974, ch. 74, Art. III, § 13(3); 1998, ch. 169, § 1, effective July 15, 1998; 2010, ch. 24, § 160, effective July 15, 2010.

149.375. Setting fire on own land regulated.

It shall be unlawful, within or adjacent to timberland, for any person to set fire to, or to procure another to set fire to, any flammable material upon land owned or leased by him unless he previously shall have taken all reasonable care and precaution, by carefully clearing around the flammable material as necessary to prevent the escape or spread of fire to lands other than those owned or leased by him. It shall also be unlawful for any employee of any such owner or lessee of land to set fire to any flammable material, upon such land unless he shall have taken similar precautions to prevent the spread of such fire to any other land. All fires shall be attended until extinguished.

History. Enact. Acts 1964, ch. 158, § 4; 1966, ch. 23, § 44; 1982, ch. 142, § 6, effective July 15, 1982; 1998, ch. 169, § 2, effective July 15, 1998.

149.380. Setting fire on land owned by another, prohibited.

No person shall:

  1. Willfully, maliciously, or wantonly set on fire or cause or procure to be set on fire any timberland, or flammable material on such land, which land is not owned, leased or controlled by him.
  2. Willfully, maliciously, or wantonly allow a fire to escape from his land and burn the land or property of another.
  3. Willfully, maliciously, or wantonly set, throw or place any device, instrument or paraphernalia in or adjacent to any timberland with intent to set fire to such land, or which in the natural course of events would result in fire being set to such timberland.

History. Enact. Acts 1964, ch. 158, § 5; 1966, ch. 23, § 45.

NOTES TO DECISIONS

1.“Timberland.”

Evidence that: (1) fire was extinguished by two men who identified themselves as part-time forestry workers, (2) much of the county was included in a National Forest, (3) the land was referred to as “your timberland or your land up there” in a question by the Commonwealth’s Attorney to the owner, and (4) the location of the land was testified to by the owner, was insufficient to prove that the land burned was timberland as defined in the statute. Coomer v. Commonwealth, 694 S.W.2d 471, 1985 Ky. App. LEXIS 624 (Ky. Ct. App. 1985).

149.385. Wood, saw or processing mills and railroads, regulation.

  1. Any person operating or responsible for the operation of a sawmill, stavemill, heading mill, or other woodworking mill, or any manufacturing or processing establishment not entirely enclosed with fireproof or fire resistant walls or other fireproof or fire resistant shielding, shall if such mill or establishment is in or adjacent to timberland, maintain a cleared area of at least one hundred fifty feet (150’) in all directions from any fires maintained in or about or in connection with the operation of such mill or establishment, and for a distance of one hundred feet (100’) in all directions from any sawdust pile, slab pile, or any other flammable material accumulated from the operation of such mill or establishment.
  2. Each railroad company shall place in, on or around the top of the chimney of each of its locomotives a screen, fender, damper or other appliance that will prevent as far as possible sparks of fire escaping from the chimney within or adjacent to timberland.
  3. Each railroad company within or adjacent to timberland shall keep its right-of-way clear and free from weeds, high grass and decayed timber that is likely to take and communicate fire from passing trains to abutting or adjacent property.

History. Enact. Acts 1964, ch. 158, § 6; 1966, ch. 23, § 46.

NOTES TO DECISIONS

1.In General.

Intention of enacting provision requiring device to prevent sparks of fire from escaping was to protect adjoining property from large cinders escaping from smokestacks and not to protect persons from injuries caused by cinders small enough to enter an eye. Louisville & N. R. Co. v. Sloan, 287 Ky. 663 , 155 S.W.2d 23, 1941 Ky. LEXIS 623 ( Ky. 1941 ) (decided under prior law).

The purpose of law requiring device on chimney to prevent escape of sparks or fire was to prevent fires by passing trains; it did not impose liability for the railroad’s permitting accumulation of combustible material on its right-of-way unless it also appeared that the material was ignited by a passing train. Louisville & N. R. Co. v. Turner, 379 S.W.2d 749, 1964 Ky. LEXIS 263 ( Ky. 1964 ) (decided under prior law).

2.Liability of Railroad.

Even though engine was equipped with best screen or spark arrester known to science and practical use, railroad was liable if train and engine were handled in such a negligent manner that sparks escaped therefrom and caused fire. Louisville & N. R. Co. v. Dalton, 102 Ky. 290 , 43 S.W. 431, 19 Ky. L. Rptr. 1318 , 1897 Ky. LEXIS 107 ( Ky. 1897 ) (decided under prior law).

Where fire is shown to have been caused by escaping sparks, the railroad must then show that locomotives were equipped as required by law. Cincinnati, N. O. & T. P. R. Co. v. Falconer, 97 S.W. 727, 30 Ky. L. Rptr. 152 , 1906 Ky. LEXIS 346 ( Ky. 1906 ) (decided under prior law).

If railroad permitted combustible material to accumulate on its right-of-way and an otherwise harmless spark from one of its engines ignited the material, railroad was liable for damage to adjoining property even though it was using best type of spark arrester and operating trains prudently. Terhune v. Louisville & N. R. Co., 184 Ky. 670 , 212 S.W. 915, 1919 Ky. LEXIS 120 ( Ky. 1919 ) (decided under prior law). See Ohio & K. R. Co. v. Whitt, 180 Ky. 418 , 202 S.W. 899, 1918 Ky. LEXIS 87 ( Ky. 1918 ) (decided under prior law).

Railroad was liable for damage caused by fire originating from its engines: (1) if it failed to have its smokestack equipped with the most modern type of spark arresters; (2) if it failed to keep the spark arrester properly adjusted; (3) if it operated its trains in a negligent manner so as to cause the engines to emit live sparks and cinders; or (4) if it allowed combustible matter to accumulate and remain upon its right-of-way. Terhune v. Louisville & N. R. Co., 184 Ky. 670 , 212 S.W. 915, 1919 Ky. LEXIS 120 ( Ky. 1919 ) (decided under prior law).

Where combustible materials permitted to accumulate on right-of-way caught fire and the fire destroyed property on adjoining land, the railroad was not liable unless the fire was started by a passing train. Mobile & O. R. Co. v. Mathis, 188 Ky. 47 , 220 S.W. 1068, 1920 Ky. LEXIS 228 ( Ky. 1920 ) (decided under prior law).

When combustible material was allowed to accumulate along right-of-way and set on fire by engine the railroad was liable for damages that resulted regardless of the size of the sparks. Akers v. Illinois C. R. Co., 207 Ky. 379 , 269 S.W. 311, 1925 Ky. LEXIS 89 ( Ky. 1925 ) (decided under prior law).

Compliance with provision of law requiring engines to be equipped with device to prevent sparks or escape of fire from chimney did not conclusively relieve railroad from liability for damages caused by fire alleged to have been ignited by spark from locomotive, however, evidence of compliance tended to rebut violation of law. Louisville v. N. R. Co. v. Rains, 230 Ky. 132 , 18 S.W.2d 954, 1929 Ky. LEXIS 31 ( Ky. 1929 ) (decided under prior law).

Railroad company was liable if it left combustible material on its right-of-way and same was set afire by its engines, notwithstanding engines had proper spark arresters. Cincinnati, N. O. & T. P. R. Co. v. Snow, 284 Ky. 58 , 143 S.W.2d 863, 1940 Ky. LEXIS 442 ( Ky. 1940 ) (decided under prior law).

Where a contract for spur track service required manufacturer served by spur track to keep track free from rubbish, railroad was not liable for damages from fire starting in rubbish along track, although railroad was negligent in not using adequate spark arresters. Thurmond v. Nashville, C. & S. L. Ry., 293 Ky. 716 , 170 S.W.2d 7, 1943 Ky. LEXIS 685 ( Ky. 1943 ) (decided under prior law).

3.— Evidence.

Where evidence was presented that locomotive in question and others on same part of track emitted large quantities of sparks there was a jury question as to whether spark arrester was out of order. Louisville & N. R. Co. v. Samuel's Ex'rs, 57 S.W. 235, 22 Ky. L. Rptr. 303 , 1900 Ky. LEXIS 632 (Ky. Ct. App. 1900) (decided under prior law).

Notwithstanding testimony that spark arresters of the best type were used the jury could determine as a question of fact whether or not railroad was negligent in its operation of train and as to the proper position and condition of arresters where there was evidence of other fires in the vicinity. Illinois C. R. Co. v. Scheible, 72 S.W. 325, 24 Ky. L. Rptr. 1708 (1903) (decided under prior law).

Evidence that sparks had been seen flying in large showers was sufficient to prove that spark arrester was out of proper order, or was improperly adjusted. Cincinnati, N. O. & T. P. R. Co. v. Winkle, 148 Ky. 726 , 147 S.W. 746, 1912 Ky. LEXIS 535 ( Ky. 1912 ) (decided under prior law).

Where petition alleged negligence in failure to provide spark arresters and failed to allege failure to keep right-of-way clear plaintiff whose only proof was as to failure to keep right-of-way clear cannot recover. Louisville & N. R. Co. v. Haggard, 161 Ky. 317 , 170 S.W. 956, 1914 Ky. LEXIS 73 ( Ky. 1914 ) (decided under prior law).

Proof that a fire started on the railroad right-of-way is not sufficient to warrant a recovery on the ground that the engine was not properly equipped with spark arresters without some evidence of negligence. Louisville & N. R. Co. v. Haggard, 161 Ky. 317 , 170 S.W. 956, 1914 Ky. LEXIS 73 ( Ky. 1914 ) (decided under prior law).

Failure to provide proper spark arresters may be proved by circumstantial evidence. Chesapeake & O. R. Co. v. Snyder, 164 Ky. 432 , 175 S.W. 640, 1915 Ky. LEXIS 378 ( Ky. 1915 ) (decided under prior law). See Ohio & K. R. Co. v. Whitt, 180 Ky. 418 , 202 S.W. 899, 1918 Ky. LEXIS 87 ( Ky. 1918 ); Illinois C. R. Co. v. Bell Union Coal & Mining Co., 238 Ky. 630 , 38 S.W.2d 707, 1931 Ky. LEXIS 308 ( Ky. 1931 ) (decided under prior law).

Where plaintiff shows that fire was started because of large sparks from locomotive, railroad must show that locomotive was equipped with spark arrester. Louisville & N. R. Co. v. Deaton, 219 Ky. 715 , 294 S.W. 149, 1927 Ky. LEXIS 403 ( Ky. 1927 ) (decided under prior law).

In action based solely on alleged defective condition of spark arrester, evidence of combustible material on railroad right-of-way was inadmissible. Louisville & N. R. Co. v. Deaton, 219 Ky. 715 , 294 S.W. 149, 1927 Ky. LEXIS 403 ( Ky. 1927 ) (decided under prior law).

Evidence warranted conclusion that locomotive was not equipped with spark arresters and that property was burned because of sparks from locomotive, there being no other reasonable explanation. Big S. & K. R. R. Co. v. Allen, 222 Ky. 527 , 1 S.W.2d 964, 1928 Ky. LEXIS 191 ( Ky. 1928 ) (decided under prior law).

It was not necessary to prove the emission of firebrands in unusual quantities in order to sustain allegation of loss by reason of failure to equip locomotive with proper spark arresters. Louisville v. N. R. Co. v. Rains, 230 Ky. 132 , 18 S.W.2d 954, 1929 Ky. LEXIS 31 ( Ky. 1929 ) (decided under prior law).

Evidence of fires ignited by railroad engines other than fire in question, was admissible as tending to show negligent habit or custom. Illinois C. R. Co. v. Bell Union Coal & Mining Co., 238 Ky. 630 , 38 S.W.2d 707, 1931 Ky. LEXIS 308 ( Ky. 1931 ) (decided under prior law).

To recover for damage by fire allegedly started by sparks from locomotive, plaintiff must offer some proof of defective equipment or improper operation, since fire even though produced by sparks did not create presumption of negligence. Clemons v. Dawkins Log & Mill Co., 266 Ky. 157 , 98 S.W.2d 472, 1936 Ky. LEXIS 624 ( Ky. 1936 ) (decided under prior law).

In action against railroad company for negligently causing, on its right-of-way, a fire which spread to adjoining farms, evidence of several witnesses that they saw smoke rising from right-of-way immediately after train passed was sufficient to make jury question in view of other testimony that railroad negligently permitted combustible debris to remain on right-of-way. Cincinnati, N. O. & T. P. R. Co. v. Snow, 284 Ky. 58 , 143 S.W.2d 863, 1940 Ky. LEXIS 442 ( Ky. 1940 ) (decided under prior law).

Circumstantial evidence may be sufficient to support a verdict in cases of railroad fires but a claim for damages to timber must find foundation in some negligence of the railroad company proximately causing the claimed damage and where there was no showing that a diesel was throwing out soot or fire nor that it ever had and no showing that any of the train crew had tossed anything out of the train to set the leaves on fire judgment should have been entered for defendant on motion for judgment n.o.v. Louisville & N. R. Co. v. Turner, 379 S.W.2d 749, 1964 Ky. LEXIS 263 ( Ky. 1964 ) (decided under prior law).

4.— — Negligence.

Permitting inflammable material to accumulate upon railroad right-of-way was prima facie negligence. Ohio & K. R. Co. v. Whitt, 180 Ky. 418 , 202 S.W. 899, 1918 Ky. LEXIS 87 ( Ky. 1918 ) (decided under prior law).

Where plaintiff presented evidence fairly negativing any source of fire other than defendant’s engine, evidence that spark arrester was in good condition and was properly adjusted was not conclusive of the defendant’s question of negligence but presented an issue for the jury. Frankfort & C. R. Co. v. Marshall, 236 Ky. 404 , 33 S.W.2d 353, 1930 Ky. LEXIS 781 ( Ky. 1930 ) (decided under prior law).

Where the law has been complied with a railroad company cannot be held liable for fire without proof of negligent operation. Louisville & N. R. Co. v. Bean, 273 Ky. 454 , 116 S.W.2d 989, 1938 Ky. LEXIS 660 ( Ky. 1938 ) (decided under prior law).

It was a fundamental rule that a claimant for fire damage must make a prima facie showing of defective equipment or improper operation; the mere fact of a fire, even though produced by sparks from an engine, was not in itself sufficient to create a presumption of negligence. Louisville & N. R. Co. v. Turner, 379 S.W.2d 749, 1964 Ky. LEXIS 263 ( Ky. 1964 ) (decided under prior law).

5.— Procedure.

In action against railroad for negligent burning of property, railroad need not plead that its engines were screened as this was mere evidence relevant to question of negligence. Louisville & N. R. Co. v. Beeler, 126 Ky. 328 , 103 S.W. 300, 31 Ky. L. Rptr. 750 , 1907 Ky. LEXIS 42 ( Ky. 1907 ) (decided under prior law).

Instruction, making it clear that the only appliance necessary under law requiring device on chimney to prevent escape of sparks was a single appliance constituting a spark arrester, was not erroneous. Cincinnati, N. O. & T. P. R. Co. v. Winkle, 148 Ky. 726 , 147 S.W. 746, 1912 Ky. LEXIS 535 ( Ky. 1912 ) (decided under prior law).

An instruction which placed upon railroad the requirement to use ordinary care in cleaning off its right-of-way was proper. Louisville & N. R. Co. v. Howe, 243 S.W.2d 905, 1951 Ky. LEXIS 1178 ( Ky. 1951 ) (decided under prior law).

6.Spark Arresters.

Under provision of law requiring spark arresters a railroad must provide the best and most effective spark arresters available and not merely ones considered safe and approved. Mills v. Louisville & N. R. Co., 116 Ky. 309 , 76 S.W. 29, 25 Ky. L. Rptr. 488 , 1903 Ky. LEXIS 189 ( Ky. 1903 ) (decided under prior law). See Frankfort & C. R. Co. v. Marshall, 236 Ky. 404 , 33 S.W.2d 353, 1930 Ky. LEXIS 781 ( Ky. 1930 ) (decided under prior law).

Where fire was shown to have come from locomotive it became necessary for railroad to show that locomotive was equipped as the law required. Cincinnati, N. O. & T. P. R. Co. v. Falconer, 97 S.W. 727, 30 Ky. L. Rptr. 152 , 1906 Ky. LEXIS 346 ( Ky. 1906 ) (decided under prior law).

Law that required railroad to have a device on the chimney of the locomotive to prevent sparks or fire was intended to prevent injuries from sparks or fire and not intended to apply to cinders small enough to enter a human eye. Cincinnati, N. O. & T. P. R. Co. v. Baxter, 110 S.W. 248, 33 Ky. L. Rptr. 305 (1908) (decided under prior law).

Locomotives must be equipped with most efficient spark arresters in practical use, and equipment must be kept in good order, and if railroad complies with these requirements it cannot be held liable for fire without proof of negligent operation. Louisville & N. R. Co. v. Bean, 273 Ky. 454 , 116 S.W.2d 989, 1938 Ky. LEXIS 660 ( Ky. 1938 ) (decided under prior law). See Louisville & N. R. Co. v. Samuel's Ex'rs, 57 S.W. 235, 22 Ky. L. Rptr. 303 , 1900 Ky. LEXIS 632 (Ky. Ct. App. 1900); Cincinnati, N. O. & T. P. R. Co. v. Sadieville Milling Co., 137 Ky. 568 , 126 S.W. 118, 1910 Ky. LEXIS 600 ( Ky. 1910 ); Hartford Fire Ins. Co. v. Cincinnati, N. O. & T. P. R. Co., 182 Ky. 295 , 206 S.W. 628, 1918 Ky. LEXIS 381 ( Ky. 1918 ); Illinois C. R. Co. v. Bell Union Coal & Mining Co., 238 Ky. 630 , 38 S.W.2d 707, 1931 Ky. LEXIS 308 ( Ky. 1931 ) (decided under prior law).

149.390. Fires to capture or destroy game prohibited.

No person shall willfully or knowingly set fire to any timberland not his own, or hollow trees or stumps of flammable material on timberland not his own to capture or destroy wild birds or quadrupeds or to destroy feeding or breeding grounds thereon.

History. Enact. Acts 1964, ch. 158, § 7; 1966, ch. 23, § 47.

149.395. Operation of waste management facilities or open dumps regulated.

Any municipality, public institution or agency, or any persons maintaining or operating a waste management facility or open dump as defined in KRS 224.1-010 in any location where fire may spread to timberland shall provide such devices and conditions therefor as will reasonably promote the safe operation thereof and guard against the escape of fire therefrom. The cabinet shall have power to make rules and regulations for the implementation of this section.

History. Enact. Acts 1964, ch. 158, § 8; 1974, ch. 74, Art. III, § 13(3); 1982, ch. 142, § 7, effective July 15, 1982.

Compiler’s Notes.

This section is set out above to reflect a correction to the section reference appearing in section from 224.01-010 to 224.1-010 due to renumbering by the state reviser effective in 2013.

149.400. Fire hazard seasons — Fires prohibited — Exceptions.

  1. The periods commencing on February 15 and ending on April 30 and commencing on October 1 and ending on December 15 of each year are hereby declared to be and established as the fire hazard seasons. During the fire hazard seasons, even though the precautions required by KRS 149.375 shall have been taken, it shall be unlawful for any person to set fire to, or to procure another to set fire to, any flammable material capable of spreading fire, located in or within one hundred fifty feet (150’) of any woodland or brushland, except between the hours of 6:00 p.m. and 6:00 a.m., prevailing local time, or when the ground is covered with snow.
  2. This section shall not apply to fires which may be set for the purpose of burning plant beds.
  3. This section shall not apply to fires which may be set by competent and qualified employees of railroad, utility, or pipeline companies in connection with the construction, operation, or maintenance of railroads, pipelines, powerlines, or other projects in the public interest on rights-of-way used for such railroads, pipelines, powerlines, or other projects, and such fires shall be attended at all times and be extinguished before the employees of such railroad, utility, or pipeline companies leave the vicinity of the fire.
  4. This section shall not apply to fires set by trained and qualified employees of a state government agency on land owned by the state or leased or managed by the state under a written agreement with the landowner and set for the specific purpose of wildlife or plant habitat improvement, ecological site restoration, site preparation for natural or artificial regeneration or fuel reduction. Nongovernmental organizations and other governmental agencies may apply to the Division of Forestry for written approval to set fires under this subsection. Fires set under this subsection shall be in accordance with KRS 149.375 . Persons who set such fires shall give written notification of the burn to the local Division of Forestry district office at least twenty-four (24) hours in advance and obtain the approval of the district office.

History. Enact. Acts 1964, ch. 158, § 9; 1966, ch. 23, § 48; 1982, ch. 142, § 8, effective July 15, 1982; 1998, ch. 169, § 3, effective July 15, 1998; 2003, ch. 47, § 1, effective June 24, 2003.

149.401. City or county ordinance banning open burning during fire hazard periods.

  1. Without limiting the general authority granted to a county by KRS 67.083 and the general authority granted to a city by KRS 82.082 , a city or county may enact an ordinance banning all open burning during periods of extraordinary forest fire hazard or fire occurrence. Such ordinance may authorize the implementation of such a ban by executive order of the chief executive officer upon notice by the Division of Forestry that a period of extraordinary forest fire hazard or fire occurrence exists.
  2. Any ordinance promulgated by a city or county pursuant to subsection (1) of this section may establish penalties for violation of the ordinance not to exceed the penalties set forth in KRS 149.990(2).
  3. Any ordinance promulgated by a city or county pursuant to subsection (1) of this section may be enforced by the promulgating body, or by the cabinet, and referred to the appropriate county or Commonwealth attorney for prosecution.

History. Enact. Acts 1986, ch. 17, § 1, effective July 15, 1986.

149.405. Entry in forest lands during drought — Emergency proclamation — Notice.

  1. It shall be unlawful, when the forest lands, brush lands and fields in this state or any part thereof have become so dry or parched as to create an extraordinary fire hazard endangering lives and property, for any person, except the owner, tenant or owner’s authorized agent, persons regularly engaged in cutting, processing, or moving forest products, persons engaged in constructing, maintaining, and operating utility or pipeline rights-of-way, or persons on official duty, to enter or travel in any state, county, municipal or private forest lands, brush lands, fields or idle or abandoned lands in the area so affected except on public highways or well defined private roads.
  2. When such an emergency is found to exist by the secretary for energy and environment, the Governor may proclaim such a condition to exist in the Commonwealth or any described part thereof. The provisions of subsection (1) shall be effective only during the time such proclamation is in force and only in the area where such emergency is declared to exist.
  3. The Secretary of State shall cause notice of such proclamation or any amendments or rescission thereof to be published in a newspaper or newspapers of general circulation in the area affected.

History. Enact. Acts 1964, ch. 158, § 10; 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 161, effective July 15, 2010.

149.410. Commonwealth’s attorney to prosecute abatement proceedings.

The Commonwealth’s attorney or county attorney shall initiate and prosecute appropriate abatement proceedings by injunction or otherwise, for the prevention or correction of any condition constituting or threatening to constitute a violation of KRS 149.360 to 149.430 . The institution or pendency of a proceeding pursuant to this section shall not bar the imposition of any penalties or the securing of any other relief provided by KRS 149.360 to 149.430 , 149.991 , 277.990 , 512.020 to 512.040 , or administrative regulations promulgated thereunder.

History. Enact. Acts 1964, ch. 158, § 11; 1980, ch. 188, § 113, effective July 15, 1980; 1988, ch. 365, § 18, effective July 15, 1988.

Research References and Practice Aids

Kentucky Law Journal.

Underwood, Part-Time Prosecutors and Conflicts of Interest: A Survey and Some Proposals, 81 Ky. L.J. 1 (1993).

149.415. Energy and Environment Cabinet to administer law — Investigations.

The Energy and Environment Cabinet shall administer KRS 149.360 to 149.430 and shall have power to issue, amend and revise such rules and regulations as may be authorized hereby or as may reasonably be necessary to implement the same. The cabinet is authorized to make, conduct or participate in any investigations and surveys designed to establish the cause of and responsibility for a particular forest fire or forest fire conditions generally and to cooperate with any and all law enforcement officers of or in this state in the apprehension and prosecution of persons violating this law. Nothing contained in KRS 149.360 to 149.430 shall be construed to limit or otherwise impair the jurisdiction or powers of any other department, agency or officer of or in this state to investigate, apprehend, prosecute or punish violations of law.

History. Enact. Acts 1964, ch. 158, § 12; 2010, ch. 24, § 162, effective July 15, 2010.

149.420. State inspection of premises.

In connection with the administration of KRS 149.360 to 149.430 and any rule or regulation pursuant hereto, any duly authorized officer, employee or agent of the cabinet and any law enforcement officer or fire protection officer having jurisdiction to enforce any provisions of KRS 149.360 to 149.430 shall have power to enter upon or into any premises at any time in order to inspect the same and to ascertain the degree of compliance with KRS 149.360 to 149.430, and with such rule or regulation promulgated hereunder.

History. Enact. Acts 1964, ch. 158, § 13; 1974, ch. 74, Art. III, § 13(3).

149.425. Warning signs on highway.

The state Department of Highways is authorized to purchase and erect warning signs along the roads and highways of this state advising the public of the provisions of subsection (1) of KRS 149.370 and the penalty for violation thereof.

History. Enact. Acts 1964, ch. 158, § 14; 1974, ch. 74, Art. IV, § 20(1).

149.430. Liability of violator for state and private damages — Disposition of damages.

  1. If any forest fire shall originate as a result of the violation by any person of any provision of KRS 149.360 to 149.430 , such person shall be, in addition to the penalty prescribed under KRS 149.991 , liable to the state and to each county for the full amount of all expenses incurred by the state and county respectively in suppressing each fire, such amounts to be recoverable by action brought by the secretary for energy and environment in the name of the Commonwealth on behalf of the Commonwealth and by the county attorney on behalf of the county.
  2. In addition to any penalty pursuant to KRS 149.991 , any person violating any of the provisions of KRS 149.360 to 149.430 shall be answerable in damages to any persons suffering such damage for the cost incurred in the suppression of any fire resulting from such violation and for damage to property resulting from such fires.
  3. Damages assessed under this section shall be ordered to be paid directly to the Energy and Environment Cabinet or to any other injured person or organization specified by written order of the court. The court shall not direct that the damages be paid through the circuit clerk.

History. Enact. Acts 1964, ch. 158, § 17; 1974, ch. 74, Art. III, § 13(3); 1982, ch. 142, § 9, effective July 15, 1982; 2002, ch. 183, § 12, effective August 1, 2002; 2010, ch. 24, § 163, effective July 15, 2010.

Statewide System of Forest Fire Protection

149.510. Definitions for KRS 149.510 to 149.600.

As used in KRS 149.510 to 149.600 , unless the context requires otherwise:

  1. “Secretary” means the secretary for energy and environment;
  2. “Cabinet” means the Energy and Environment Cabinet;
  3. “Timberland” means any land which has enough timber or woody brush, standing or down, to constitute a fire menace to itself or adjoining lands, but does not include lands under cultivation or entirely in grass, nor land that is an isolated fire risk unless a fire on it would imperil the lands of an adjoining landowner.

History. Enact. Acts 1958, ch. 139, § 1, effective June 19, 1958; 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 164, effective July 15, 2010.

149.520. Establishment of statewide system of forest fire prevention.

  1. It shall be the duty of the cabinet to establish and maintain a statewide system of forest fire prevention, detection and suppression.
  2. The cabinet shall formulate a plan and program subject to the approval of the secretary for energy and environment to extend forest fire protection to all counties not now participating in the state program. The plan shall provide for the establishment of such protection in all the counties of the state on or before January 1, 1964.

History. Enact. Acts 1958, ch. 139, § 2, effective June 19, 1958; 1974, ch. 74, Art. III, §§ 1, 13(3); 2010, ch. 24, § 165, effective July 15, 2010.

149.530. Termination of voluntary county participation — Notice to nonparticipating counties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 139, § 3, effective June 19, 1958; 1974, ch. 74, Art. III, § 13(3); 1976 (Ex. Sess.), ch. 20, § 6, effective January 2, 1978) was repealed by Acts 1982, ch. 142, § 18, effective July 15, 1982.

149.540. County payments to statewide system — Power to require owners to participate — Adjustments in acreage.

  1. After January 1, 1959, all counties receiving state forest fire protection and all counties having received notice of the intended establishment of such service shall annually pay to the cabinet a sum equivalent to two cents ($0.02) per acre of privately owned timberlands according to the most current United States Forest Service Survey of Kentucky subject to additions and deductions of acreage since the making of such study. Such payments shall be due and payable on September 15 following the assessment.
  2. Contributions may be met out of the general funds of the county and in addition the fiscal court may require each owner of timberland in the county to participate directly by paying into a special county forest fire protection fund an assessment not exceeding three cents ($0.03) per year for each acre of timberland of which he is the owner.
  3. In any case in which the cabinet and the governing body of any county cannot agree upon the additions or deductions to privately owned forest acreage in a particular county, or to changes in forest acreage from year to year, the question shall be submitted to the judge of the Circuit Court of the county by a summary and informal proceeding, and a decision of the judge, certified to the governing body and to the cabinet respectively, shall be conclusive and final.

History. Enact. Acts 1958, ch. 139, § 4; 1966, ch. 23, § 49; 1974, ch. 74, Art. III, § 13(3); 1976 (Ex. Sess.), ch. 14, § 161, effective January 2, 1978; 1982, ch. 142, § 10, effective July 15, 1982.

Opinions of Attorney General.

Once the assessment date for ad valorem property taxes had passed, the Marshall County Fiscal Court had no authority to order the assessment of timberland in the county for that year for the tax permitted by this section. OAG 62-569 .

When state forest fire protection has been afforded, the contribution by the county to the Division of Forestry (now Natural Resources and Environmental Protection Cabinet) is mandatory and must be paid by the county whether or not it levies the tax against the timberland owners. OAG 70-403 .

The Legislature obviously anticipated the potential for collection shortfalls due to various causes by allowing counties to levy timberland assessments of up to three cents (3¢) per acre, when the maximum amount due to the cabinet could only be two cents (2¢) per acre and no other purpose can be assumed for this assessment authority, since under KRS 149.590 assessments collected can only be used for making payments to the department pursuant to this section. OAG 79-38 .

The sheriff collects timberland assessments on behalf of the county, and if, for whatever reason, the assessments collected from timberland owners and deposited in the county forest fire protection fund are insufficient to cover the amount due to the cabinet from the county, the county is obligated to make up the difference from general funds of the county. OAG 79-38 .

149.550. County assessment rate — Owners’ duties.

  1. If the county governing body requires the owners to participate, it shall determine the amount of the assessment for each acre, and shall order the assessment to be paid into the county treasury by the owners of all timberland located in the county.
  2. It shall be the duty of each owner of timberland situated in the county to list or have listed such property with the property valuation administrator within the time provided for assessing property for state and county ad valorem taxes.
  3. Timberland shall be listed by the owner of the first freehold estate therein, and it shall be listed without reference to conflicting title. The listing shall be made at the same time and in the same manner in which declarations of real property owned are made with the property valuation administrator for assessment purposes. If the owner fails to list the timberland, the property valuation administrator shall list it. The property valuation administrator shall have the power to swear witnesses in order to ascertain the person in whose name to make the list.
  4. All persons in whose name the timberland acreage is properly listed shall remain bound for the assessment, notwithstanding they may have sold or parted with it.

History. Enact. Acts 1958, ch. 139, § 5; 1974, ch. 308, § 31.

149.560. Tax roll record of timberland acreage.

The property valuation administrator shall include on the regular property tax roll an accurate record of the acreage of timberland listed in the name of each owner in the county.

History. Enact. Acts 1958, ch. 139, § 6, effective June 19, 1958.

149.570. Computation of timberland assessment — Delivery of tax bills.

  1. When the property tax rolls are delivered to the county clerk by the property valuation administrator, as required by law, the county clerk shall compute the assessment due the county from each owner of timberland in accordance with the rate fixed by the county governing body and the amount of timberland acreage indicated on the property tax roll.
  2. The computation shall be made on the regular tax bills in such manner as may be directed by regulation of the Department of Revenue.
  3. The county clerk shall deliver these bills to the sheriff for collection as provided in KRS 133.220(3).

History. Enact. Acts 1958, ch. 139, § 7, effective June 19, 1958; 2005, ch. 85, § 566, effective June 20, 2005.

149.580. Collection of timberland assessment.

  1. The sheriff shall collect the assessment at the same time and in the same manner in which he or she collects the state and county ad valorem tax. He or she shall issue a receipt to the taxpayer, report to the county judge/executive, and make his or her annual and final settlements with the fiscal court at the same time and in the same manner provided by law for his or her report and settlement of county and state taxes.
  2. Such assessments shall become due and payable on the date, and subject to the same discounts, delinquency date, and penalties provided in KRS 134.015 for state, county, and district taxes.

History. Enact. Acts 1958, ch. 139, § 8, effective June 19, 1958; 1978, ch. 384, § 287, effective June 17, 1978; 2009, ch. 10, § 63, effective January 1, 2010.

149.590. County forest fire protection fund.

A separate fund shall be maintained by the county treasurer to be known as the county forest fire protection fund. The assessments collected from each timberland owner, together with penalties, shall constitute the fund and it shall be used only for making payments to the cabinet in accordance with provisions of KRS 149.540 .

History. Enact. Acts 1958, ch. 139, § 9, effective June 19, 1958; 1974, ch. 74, Art. III, § 13(3).

149.600. Appeal from listing of property as timberland.

  1. Any person aggrieved by a listing of any portion of his property as timberland by the property valuation administrator may file a protest with the county judge/executive, provided the protest is in writing and is made within thirty (30) days of receipt of notice of the listing. Protest may be made on the ground that the land or any portion so listed is not timberland, or that the timberland so listed will not be benefited by the forest fire protective system then in effect, or benefited by the proposed forest fire protective system if the assessment is being made for the first time in that county.
  2. The county judge/executive shall hear all protests properly filed. Protests shall be heard within a reasonable time after the filing thereof, and reasonable notice shall be given to the protestant and the secretary for energy and environment as to the time and place of the hearing. The county judge/executive shall have authority to issue subpoenas to compel the attendance of any witness desired by any interested party, and he shall be authorized to administer the oath to any witness.
  3. Proceedings for hearing any protest shall be summary and the findings of the county judge/executive shall be final, and an order shall be entered either dismissing the protest or directing the proper county officials to alter their records in accordance with the findings.

History. Enact. Acts 1958, ch. 139, § 10, effective June 19, 1958; 1974, ch. 74, Art. III, § 13(3); 1976 (Ex. Sess.), ch. 20, § 6, effective January 2, 1978; 2010, ch. 24, § 166, effective July 15, 2010.

Forest Pest Control

149.610. Purpose of KRS 149.610 to 149.680.

The purpose of KRS 149.610 to 149.680 is to place in the Energy and Environment Cabinet, the authority and responsibility to control infestations or infections by insects or disease, which are hereby declared to be a public nuisance, in order to protect and preserve forest resources, enhance the growth and maintenance of forests, promote stability of forest-using industries, aid in fire control by reducing the menace created by dying and dead trees, conserve forest cover on watersheds, and protect recreational, wildlife and other values of the forests of the Commonwealth.

History. Enact. Acts 1960, ch. 95, § 1, effective June 16, 1960; 1974, ch. 74, Art. III, § 13(3); 1982, ch. 142, § 11, effective July 15, 1982; 2010, ch. 24, § 167, effective July 15, 2010.

Opinions of Attorney General.

Under Ky. Const., § 231, the Division of Forestry (now Natural Resources and Environmental Protection Cabinet), acting under its statutory authorization to control forest pests and infestations pursuant to this section, would be immune from liability for damages resulting from the recommendation of the use of approved pesticides or the use of pesticides no longer recommended for use, except where that immunity has been waived as provided in KRS 217.540 to 217.640 (now repealed) which restricts the use of DDT. OAG 70-373 .

149.620. Duty of secretary for energy and environment.

The secretary for energy and environment shall make surveys and investigations to determine the threat or presence of infestations and control of forest pests. For this purpose duly designated representatives of the secretary may enter at reasonable times on public and private lands for the purpose of conducting such surveys, investigations and controls.

History. Enact. Acts 1960, ch. 95, § 2, effective June 16, 1960; 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 168, effective July 15, 2010.

149.630. Control zone to be prescribed — Notice required.

Whenever the secretary for energy and environment finds that any forest area is infested, threatened to be infested, infected, or threatened to be infected with insects or disease, he shall determine whether measures of control are needed and are available and the area over which the control measures shall be applied. He shall prescribe the proposed zone in which control measures are to be applied, and shall publish notice of the proposal, as required by law. Such notice shall include a brief description of the location of the proposed zone of infestation or infection and the approximate time when control measures will be executed.

History. Enact. Acts 1960, ch. 95, § 3, effective June 16, 1960; 1974, ch. 74, Art. III, § 13(3); 1982, ch. 142, § 12, effective July 15, 1982; 2010, ch. 24, § 169, effective July 15, 2010.

149.640. Control measures may be applied — Agreements with landowners — Cost.

The secretary for energy and environment may apply measures of infestation and infection control on public and private forests and other lands anywhere in the Commonwealth, to any trees, timber, plants or shrubs thereon harboring or which may harbor any insects or disease. The secretary may enter into agreements with owners of such lands covering the control work on their lands, and fix the pro rata basis on which the cost of such work will be shared between the Commonwealth and said owner; provided, that the failure of the secretary to offer an agreement to or execute an agreement with any owner shall not impair the right of the secretary’s representatives to enter on the lands of said owner to conduct control operations.

History. Enact. Acts 1960, ch. 95, § 4, effective June 16, 1960; 1982, ch. 142, § 13, effective July 15, 1982; 2010, ch. 24, § 170, effective July 15, 2010.

149.650. Authority to control other holdings — Cost.

The secretary for energy and environment is authorized to carry out control work on other adjacent or interior holdings, which, if uncontrolled, would cause a reinfestation or reinfection of the controlled area, and to contract with owners of land in the affected area relative to payment of the cost of such work.

History. Enact. Acts 1960, ch. 95, § 5, effective June 16, 1960; 1982, ch. 142, § 14, effective July 15, 1982; 2010, ch. 24, § 171, effective July 15, 2010.

149.660. Cooperation with other agencies.

The secretary for energy and environment may cooperate with the federal government or agencies thereof, other agencies of the Commonwealth, county or municipal governments, agencies of neighboring states, or other public or private organizations, or individuals and may accept such funds, equipment, supplies or services from cooperators and others as may be deemed appropriate. The secretary may provide in agreements with the federal government or its agencies for matching of federal funds as required under federal laws relating to forest pests.

History. Enact. Acts 1960, ch. 95, § 6, effective June 16, 1960; 2010, ch. 24, § 172, effective July 15, 2010.

149.670. Revolving fund account provided.

All moneys collected under the provisions of KRS 149.610 to 149.680 , including such as may be contributed or paid by the federal government or any other public or private agency, organization or individual, shall be placed in the State Treasury to the credit of a revolving , trust or agency fund account for use by the Energy and Environment Cabinet in carrying out the purposes of KRS 149.610 to 149.680 .

History. Enact. Acts 1960, ch. 95, § 7, effective June 16, 1960; 2010, ch. 24, § 173, effective July 15, 2010.

149.680. Personnel — Equipment — Regulations.

The secretary for energy and environment is authorized as required by law, to employ necessary personnel, procure necessary equipment, supplies and services; to enter into contracts in the name of the secretary and to provide funds to any agency of the United States for work or services under the forest pest control program. The secretary for energy and environment may prescribe rules and regulations for carrying out the purposes of KRS 149.610 to 149.680 .

History. Enact. Acts 1960, ch. 95, § 8, effective June 16, 1960; Acts 1974, ch. 74, Art. III, § 13(3); 2010, ch. 24, § 174, effective July 15, 2010.

Penalties

149.990. Penalties.

  1. Any person who violates subsection (2) of KRS 149.040 shall be fined not less than five hundred dollars ($500), or confined in jail for not less than thirty (30) nor more than one hundred (100) days, or both.
  2. Any physically able resident of this state above the age of eighteen (18) who refuses or neglects to assist in extinguishing forest fires, when summoned by a warden as authorized by KRS 149.090(2), and any person who refuses to allow the use of required equipment or materials authorized by KRS 149.090(3), shall be fined not less than fifty ($50) nor more than five hundred dollars ($500).
  3. Any person who violates KRS 149.083 shall be fined not less than one hundred ($100) nor more than one thousand dollars ($1,000), or imprisoned for not less than ninety (90) days nor more than twelve (12) months, or both.

History. 2007i-26, 2007j-3: amend. Acts 1948, ch. 203, § 4; 1960, ch. 94, § 2; 1964, ch. 158, § 21; 1966, ch. 23, §§ 50, 51 (2); 1982, ch. 142, § 15, effective July 15, 1982.

Opinions of Attorney General.

In a prosecution for violation of KRS 149.300 (now repealed) it was essential for the Commonwealth to produce evidence that the fire was set at a place within 200 feet of woodland or brushland. OAG 64-351 .

149.991. Penalties for violation of KRS 149.360 to 149.430.

  1. Any person who violates any of the provisions of KRS 149.360 to 149.430 except KRS 149.380 shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500) or imprisoned for not more than six (6) months, or both such fine and imprisonment.
  2. Any person who violates any of the provisions of KRS 149.380 shall be fined not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000) or imprisoned for not more than five (5) years, or both such fine and imprisonment.

History. Enact. Acts 1964, ch. 158, § 18; 1982, ch. 142, § 16, effective July 15, 1982.

CHAPTER 150 Fish and Wildlife Resources

150.010. Definitions for chapter.

As used in this chapter, unless the context otherwise requires:

  1. “Administrative regulation” means a written regulation promulgated, pursuant to KRS Chapter 13A, by the commissioner with the approval of the commission;
  2. “Angling” means the taking or attempting to take fish by hook and line in hand, rod in hand, jugging, setline, or sport fishing trotline;
  3. “Buy” includes offering to buy, acquiring, or possessing through purchase, barter, exchange, or trade;
  4. “Cervid” means a hoofed mammal from the family Cervidae, including but not limited to white-tailed deer, mule deer, elk, moose, and caribou;
  5. “Commercial trotline” means a line to which are attached more than fifty (50) single or multibarbed baited hooks, which shall not be placed closer than eighteen (18) inches;
  6. “Commission” means the Department of Fish and Wildlife Resources Commission;
  7. “Commissioner” means the commissioner of the Department of Fish and Wildlife Resources;
  8. “Conservation officer” means any member of the Kentucky Department of Fish and Wildlife Resources Law Enforcement Division, pursuant to KRS 150.090 , who possesses the powers of a peace officer;
  9. “Daylight hours” means the period from one-half (1/2) hour before sunrise to one-half (1/2) hour after sunset;
  10. “Device” means any article, instrument, or equipment of whatever nature or kind which may be used to take wild animals, wild birds, or fishes;
  11. “Department” means the Department of Fish and Wildlife Resources;
  12. “Fishing” means to take or attempt to take in any manner, whether the fisherman has fish in possession or not;
  13. “Gigging” means the taking of fish by spearing or impaling on any pronged or barbed instrument attached to the end of any rigid object;
  14. “Grabbing” means the taking of fish, frogs, or turtles directly by hand or with the aid of a handled hook;
  15. “Hunting” means to take or attempt to take in any manner, whether the hunter has game in possession or not;
  16. “Identification tag” means a marker made of specified material upon which a name and address or number is placed and attached to unattended gear to designate ownership or responsible operator;
  17. “Impounded waters” means any public waters backed up behind a dam and includes all water upstream from the dam to the first riffle or shoal;
  18. “Jugging” means a means of fishing by which a single baited line is attached to any floating object;
  19. “License” means any document issued by the department authorizing its holder to perform acts authorized by the license and includes any other form of authorization in addition to or in lieu of an actual document which may be authorized by the department by administrative regulation;
  20. “Light geese” means snow geese and Ross’s geese;
  21. “Light geese conservation order” means a wildlife management action needed to control populations of light geese for a period of time established pursuant to 50 C.F.R. sec. 21.60;
  22. “Livestock” means cattle, sheep, swine, goats, horses, alpacas, llamas, buffaloes, and any other animals of the bovine, ovine, porcine, caprine, equine, or camelid species;
  23. “Migratory shore or upland game birds” means all species of migratory game birds except waterfowl;
  24. “Minnows” means all fish under six (6) inches in length, except basses, either largemouth, smallmouth or Kentucky; rock bass or goggle-eye; trout; crappie; walleye; sauger; pike; members of the striped bass family; and muskellunge;
  25. “Navigable waters” means any waters within this state under lock and dam;
  26. “Nonresident” means a person who has not established a permanent domicile in this state and has not resided in this state for thirty (30) days immediately prior to his or her application for a license;
  27. “Permit” means any document issued by the department authorizing its holder to perform acts authorized by the permit and includes tags or devices as evidence of holding a permit and includes any other form of authorization in addition to or in lieu of an actual document authorized by the department by administrative regulation;
  28. “Possess” means the act of having or taking into control;
  29. “Prescribed by the department” means established by an administrative regulation;
  30. “Processed wildlife” means any wildlife specimen or parts thereof that have been rendered into a permanently preserved state;
  31. “Protected wildlife” means all wildlife except those species declared unprotected by administrative regulations promulgated by the department;
  32. “Public roadway” includes rural roads, highways, bridges, bridge approaches, city streets, viaducts, and bridges which are normally traveled by the general public and are under the jurisdiction of a state, federal, county, or municipal agency;
  33. “Public waters” means all waters within the state flowing in a natural stream channel or impounded on a natural stream;
  34. “Raw fur” means a hide, fur, or pelt of a fur-bearing animal which has not been processed. Skinning, stretching, oiling, or coloring of the pelt of the animal shall not be considered processing;
  35. “Resident” means any person who has established permanent domicile and legal residence and has resided in this state for thirty (30) days immediately prior to his or her application for a license. All other persons shall be classed as nonresidents, except students enrolled for at least six (6) months in an educational institution as full-time students and military personnel of the United States who are under permanent assignment, shall be classified as residents while so enrolled or assigned in this state;
  36. “Resist” means to leave the scene, intimidate or attempt to intimidate in any manner, or further interfere in any manner with any officer in the discharge of his or her duties;
  37. “Rough fish” means all species of fishes other than those species designated by administrative regulation as sport fishes;
  38. “Sell” includes offering to sell, having or possessing for sale, barter, exchange, or trade;
  39. “Setline” means a line to which is attached one (1) single or multibarbed hook. This line may be attached to a tree limb, tree trunk, bank pole, or other stationary object, on the bank of a stream or impoundment;
  40. “Snagging” means the taking of fish or other aquatic animals through the use of a hand-held pole and attached line with single or multiple fish hooks in which the fish is hooked by a rapid drawing motion rather than enticement by bait;
  41. “Sports fishing trotline” means a line to which are attached no more than fifty (50) single or multibarbed baited hooks which shall not be placed closer together than eighteen (18) inches;
  42. “Take” includes pursue, shoot, hunt, wound, catch, kill, trap, snare, or capture wildlife in any way and any lesser act designed to lure, attract, or entice for these purposes; and to place, set, aim, or use any device, animal, substance, or agency which may reasonably be expected to accomplish these acts; or to attempt to do these acts or to assist any other person in the doing of or the attempt to do these acts;
  43. “Tenant” means any resident sharecropper, lessee, or any other person actually engaged in work upon a farm or lands and residing in a dwelling on the farms or lands including noncontiguous lands, but shall not include any other employee or tenant unless actually residing on the property and engaged or employed as above mentioned;
  44. “Transport” means to carry, move, or ship wildlife from one (1) place to another;
  45. “Waterfowl” means all species of wild ducks, geese, swans, mergansers, and coots; and
  46. “Wildlife” means any normally undomesticated animal, alive or dead, including without limitations any wild mammal, bird, fish, reptile, amphibian, or other terrestrial or aquatic life, whether or not possessed in controlled environment, bred, hatched, or born in captivity and including any part, product, egg, or offspring thereof, protected or unprotected by this chapter.

History. 1893d-10, 1954-2: amend. Acts 1942, ch. 68, § 1; 1944, ch. 6, § 2; 1944, ch. 124, § 1; 1946, ch. 84, § 1; 1948, ch. 78, § 2; 1952, ch. 200, § 1; 1956, ch. 115, § 1; 1968, ch. 38, § 1; 1972, ch. 273, § 1; 1978, ch. 178, § 1, effective June 17, 1978; 1986, ch. 265, § 1, effective July 15, 1986; 1988, ch. 365, § 1, effective July 15, 1988; 1990, ch. 474, § 1, effective July 13, 1990; 1994, ch. 239, § 3, effective July 15, 1994; 1996, ch. 268, § 1, effective July 15, 1996; 1998, ch. 512, § 1, effective July 15, 1998; 2017 ch. 129, § 4, effective June 29, 2017; 2019 ch. 115, § 1, effective June 27, 2019; 2019 ch. 167, § 1, effective June 27, 2019; 2020 ch. 115, § 2, effective July 15, 2020.

Legislative Research Commission Notes.

(7/15/2020). Under the authority of KRS 7.136(1), the Reviser of Statutes has altered the format of this statute during codification to place the terms in alphabetical order. The words in the text were not changed.

NOTES TO DECISIONS

Cited:

Kentucky Straight Creek Coal Co. v. Commonwealth, 304 Ky. 247 , 200 S.W.2d 470, 1947 Ky. LEXIS 622 ( Ky. 1947 ).

Opinions of Attorney General.

A motel guest is not a “tenant” as the term is defined in subsection (30) (now subsection (38)) of this section and consequently is not within the exception of KRS 150.170(3) (now 150.170(4)) and must have a state fishing license in order to fish in a small lake on motel property which has been stocked by the motel owner at his own expense. OAG 62-568 .

Hunting includes the pursuit of game as well as the killing or capturing of game so that a license is required to chase red fox with dogs at night for the sport of the chase with no intent to kill or capture the fox. OAG 62-1053 .

A resident hunting license could be issued to a person who was temporarily residing in another state if he has a permanent home in Kentucky to which he plans to return and if he can prove that he resided in Kentucky for the six months just prior to the application. OAG 68-440 .

The thirty-day residency requirement for voters is completely unrelated to the six-month residency requirement for a license under this section. OAG 72-450 .

The residency provisions of subsections (15) and (22) (now subsections (20) and (30)) of this section do not render the section unconstitutional in the absence of a showing by any challenger that the differential treatment of $5.00 for a resident license and $10.00 for a nonresident license is arbitrary or in the absence of a showing that the statute’s discrimination is so potently without reason that no conceivable situation of fact can be found to justify it. OAG 74-510 .

Subject to license and regulations, dogs alone may be used to hunt, wound, and kill opossum and raccoon. Opossum and raccoon fighting against the dogs “may reasonably be expected to accomplish these acts.” So, participation in shakeout seasons as it is regulated by the department at 301 KAR 2:110, is statutorily authorized by this chapter. OAG 91-43 .

Research References and Practice Aids

Cross-References.

Appointments to boards and commissions, general provisions concerning, KRS 12.070 .

Authority of highway department to condemn property for highways and materials; title to property, conclusiveness of official order, KRS 177.081 .

Natural Resources and Environmental Protection Cabinet, KRS ch. 146.

Sanitation districts, KRS ch. 220.

Special and local legislation on game and fish forbidden, Ky. Const., § 59(23).

Kentucky Law Journal.

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

150.015. Purpose of 1952 Act amending game and fish laws — Policy of state as to wildlife — Liberal construction — Promotion of hunger relief through wildlife management and conservation.

  1. The declared purpose of Acts 1952, ch. 200, and the policy of the Commonwealth of Kentucky, is to protect and conserve the wildlife of this Commonwealth so as to insure a permanent and continued supply of the wildlife resources of this state for the purpose of furnishing sport and recreation for the present and for the future residents of this state; to promote the general welfare of the Commonwealth; to provide for the prudent taking and disposition of wildlife within reasonable limits, based upon the adequacy of the supply thereof; to protect the food supply of this state, and to insure the continuation of an important part of the commerce of this state which depends upon the existence of its wildlife resources. It is further the declared purpose of Acts 1952, ch. 200, and the policy of this Commonwealth, that an adequate and flexible system be installed to accomplish the aforesaid purposes. All of the provisions of Acts 1952, ch. 200, shall be liberally construed in such manner as most effectually to carry out its purposes and intent.
  2. The commission shall establish a program to promote hunger relief through specific wildlife management and conservation efforts and shall utilize the funds derived from the sources outlined in KRS 150.150(3).

History. Enact. Acts 1948, ch. 78, § 1; 1952, ch. 200, § 2; 2006, ch. 57, § 1, effective July 12, 2006.

NOTES TO DECISIONS

1.In General.

The general scheme of fish and game laws was to preserve from extinction useful fish in the waters of the Commonwealth for the welfare of the general public and reasonable regulations in respect to fish and game were constitutional. Draffen v. Black, 302 Ky. 775 , 196 S.W.2d 362, 1946 Ky. LEXIS 746 ( Ky. 1946 ) (decided under prior law).

2.Duties of Department.

Department of Fish and Wildlife Resources, pursuant to duties under this section, was allowed to maintain locked gates on wildlife management area at certain times of the year so long as man, who was relative of persons buried in graveyard on this federal land licensed to department and who sued to enjoin department from preventing his access to graveyard, and other heirs were furnished with a key so that they had free access to the graveyard at any time. Department of Fish & Wildlife Resources v. Garner, 896 S.W.2d 10, 1995 Ky. LEXIS 46 ( Ky. 1995 ).

Cited:

Murray v. Commonwealth, 584 S.W.2d 403, 1979 Ky. App. LEXIS 427 (Ky. Ct. App. 1979).

Opinions of Attorney General.

Lectures presented by conservation officers to students on the subject of conservation of fish and game resources are consistent with the intent of the statute and such practice is not violative of the limitation placed on the expenditure of the game and fish fund. OAG 63-37 .

The Department of Fish and Wildlife Resources can spend its funds to propagate game and fish and release same on private property regarding which the general public may not have hunting or fishing rights. OAG 64-162 .

The state has not delegated any of its authority in the area of conservation of fish and wildlife resources to local governments; the state, pursuant to this chapter, has established a statutory scheme of control and regulation relative to fish and wildlife resources and, if the statutes are inadequate or incomplete, the General Assembly will have to enact corrective legislation or the department will have to adopt regulations, where permissible. OAG 83-46 .

The Commonwealth’s duty to protect and conserve wildlife does not include a common law duty to safeguard the public against damages that result from wild deer crossing roadways or marauding crops. OAG 90-70 .

There being no legislative waiver of the Commonwealth’s immunity from suit for damage by wild deer, and there being no legal duty of the Commonwealth to prevent wild deer from damaging persons or property such as would give rise to a Board of Claims action sounding in negligence, the Commonwealth of Kentucky, Department of Fish and Wildlife Resources, incurs no legal liability as a result of wild deer injuring persons or damaging property. OAG 90-70 .

Research References and Practice Aids

Kentucky Law Journal.

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

150.018. Department not subject to inclusion within agency by executive order. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 106, Art. XVI) was repealed by Acts 1976, ch. 86, § 15.

150.020. Division of Game and Fish; director; commission. [Repealed.]

Compiler’s Notes.

This section (1954d-3, 4618-123: amend. Acts 1942, ch. 68, § 2) was repealed by Acts 1944, ch. 6, § 3.

150.021. Department of Fish and Wildlife Resources — Assessment of fee for debt service on radio system capital project.

  1. The Department of Fish and Wildlife Resources shall constitute a department of state government within the meaning of KRS Chapter 12. The department shall consist of a commissioner, a Fish and Wildlife Resources Commission, the Division of Law Enforcement, and other agents and employees provided for in this chapter. The department shall enforce the laws and regulations adopted under this chapter relating to wildlife and shall exercise all powers necessarily incident thereto.
  2. Except with regard to the commission’s authority to appoint and compensate a commissioner under Section 2 of this Act, any powers conferred by this chapter upon the Department of Fish and Wildlife Resources, the Fish and Wildlife Resources Commission, or the commissioner of the Department of Fish and Wildlife Resources, and any powers conferred by KRS Chapter 235 shall be exercised subject to the provisions of KRS Chapters 42, 45, 45A, 56, and 64, which chapters in all respects are controlling.
    1. The Finance and Administration Cabinet shall assess the Department of Fish and Wildlife Resources each fiscal year a fee in an amount equal to five percent (5%) of the debt service associated with all phases and implementation of the capital project to replace, repair, or maintain the two (2) way radio system utilized by the Department of Kentucky State Police. (3) (a) The Finance and Administration Cabinet shall assess the Department of Fish and Wildlife Resources each fiscal year a fee in an amount equal to five percent (5%) of the debt service associated with all phases and implementation of the capital project to replace, repair, or maintain the two (2) way radio system utilized by the Department of Kentucky State Police.
    2. The fee shall be assessed on each phase of the implementation of the two (2) way radio system and shall continue to be assessed until all debt for the system has been retired.

History. Enact. Acts 1944, ch. 6, § 1; 1948, ch. 78, § 3; 1952, ch. 200, § 3; 1966, ch. 255, § 143; 1990, ch. 496, § 43, effective July 13, 1990; 1994, ch. 118, § 9, effective July 15, 1994; 1998, ch. 23, § 14, effective July 15, 1998; 2018 ch. 171, § 10, effective April 13, 2018; 2018 ch. 207, § 10, effective April 26, 2018; 2021 ch. 161, § 1, effective March 29, 2021.

Legislative Research Commission Notes.

(6/29/2017). Under the authority of KRS 7.136(1), a reference to “KRS 131.990 (2)” in subsection (1)(b)5. of this statute has been changed to “KRS 131.990 (1)” by the Reviser of Statutes following the enactment of 2017 Ky. Acts ch. 74, sec. 67, which deleted subsection (1) of KRS 131.990 and renumbered the subsequent subsections, but did not amend this statute to conform.

NOTES TO DECISIONS

1.Construction.

Even though KRS 150.018 (now repealed) exempts the Department of Fish and Wildlife Resources from operation of KRS 12.025 (now repealed), since this section provides that the department is a department within KRS chapter 12 and since KRS 150.018 (now repealed) and this section are not inconsistent KRS 12.210 is applicable to the department, and the Department of Fish and Wildlife Resources must obtain approval of the Governor to employ attorneys at public expense. Pritchett v. Marshall, 375 S.W.2d 253, 1963 Ky. LEXIS 187 ( Ky. 1963 ).

2.Official Action.

The commissioner and the members of the commission of fish and wildlife resources are the chief officers of the Department of Fish and Wildlife Resources and whatever official action they are authorized to and do take with respect to KRS 18.270 (now see KRS 18A.095 ) and 12.210 becomes the action of the department. Pritchett v. Marshall, 375 S.W.2d 253, 1963 Ky. LEXIS 187 ( Ky. 1963 ).

3.Purchase of Land.

The Division of Game and Fish under the Department of Conservation was composed of the director, and advisory members, and the director alone had no authority to contract for the purchase of land for a game preserve. Tipton v. Brown, 277 Ky. 625 , 126 S.W.2d 1067, 1939 Ky. LEXIS 690 ( Ky. 1939 ) (decided under prior law).

A motion passed by a majority of the commission of the Division of Game and Fish to set aside $20,000 for the purchase of land did not authorize the director of the division to purchase a specific parcel for $26,927.50. Tipton v. Brown, 277 Ky. 625 , 126 S.W.2d 1067, 1939 Ky. LEXIS 690 ( Ky. 1939 ) (decided under prior law).

The Kentucky Real Estate Board had no authority to approve the purchase of land by the Division of Game and Fish. Tipton v. Brown, 277 Ky. 625 , 126 S.W.2d 1067, 1939 Ky. LEXIS 690 ( Ky. 1939 ) (decided under prior law).

Cited:

Ex parte Auditor of Public Accounts, 609 S.W.2d 682, 1980 Ky. LEXIS 274 ( Ky. 1980 ).

Opinions of Attorney General.

The Department of Fish and Wildlife Resources is an agency of the Commonwealth with power of eminent domain to acquire land deemed necessary to protect or conserve wildlife and, specifically, to establish and maintain public shooting areas. OAG 76-308 .

The Department of Fish and Wildlife Resources has the authority to adopt regulations governing the use of shooting ranges at all wildlife areas in the Commonwealth and has the authority to enforce these regulations; however, these regulations must be uniform in that they apply to every wildlife area in the state where shooting takes place and unless a certain wildlife area is in a class by itself, no regulations may be adopted specifically for that area. OAG 76-617 .

The Department of Fish and Wildlife Resources can require all persons to pass a safety course prior to using shooting ranges at all wildlife areas in the Commonwealth as part of its police power in promoting the general welfare of the Commonwealth. OAG 76-617 .

The authority of the Department of Fish and Wildlife Resources to establish programs for the conservation of resident endangered wildlife is included without specification in the general authority granted by KRS 150.023(2) and subsection (1) of this section. OAG 84-214 .

150.022. Department of Fish and Wildlife Resources Commission — Definition of “sportsman”.

  1. The Department of Fish and Wildlife Resources Commission shall consist of nine (9) members, one (1) from each wildlife district, as set out by the commissioner with the approval of the commission, and not more than five (5) of the same political party.
  2. The Governor shall appoint the members of the commission subject to confirmation by the Senate. Each of the members shall be appointed for a term of four (4) years and may be reappointed only once. No person who has been convicted of a felony offense, in Kentucky or under the law of any other state, or any other law of the United States shall be eligible to serve on the commission.
  3. Vacancies through the expiration of terms of the members of the commission shall be filled by appointment by the Governor from a list of five (5) names from each wildlife district, recommended and submitted by the sportsmen of each respective district. When the term of a member expires, the commissioner shall call a meeting of the sportsmen in that district not later than thirty (30) days prior to the expiration of the member’s term. Notice of the meeting shall be given by publication pursuant to KRS Chapter 424. At the meeting, the sportsmen in attendance shall select and submit to the Governor a list of five (5) residents and citizens of the district who are well informed on the subject of wildlife conservation and restoration. Each sportsman may vote for one (1) candidate only, and the list submitted to the Governor shall be made up of the names of the five (5) candidates receiving the five (5) highest vote totals. The Governor shall appoint a successor to the member whose term is about to expire within sixty (60) days following the submission to him of the list referred to in this subsection, and in no event later than August 13.
  4. Upon appointment to the commission of the Department of Fish and Wildlife Resources, each commissioner shall execute a bond of one thousand dollars ($1,000) in favor of the Department of Fish and Wildlife Resources, the premium on this bond to be paid out of department funds.
  5. In the event of vacancies other than by expiration, the Governor shall fill the vacancy for the unexpired part of the term from the names remaining on the list previously submitted for the district from which the vacancy arose.
  6. Each member of the commission shall take the constitutional oath of office.
  7. The Governor shall remove any member of the commission for cause under subsection (2) of this section and may remove any member of the commission for inefficiency, neglect of duty, or misconduct in office; but shall first deliver to the member a copy of all charges in writing and afford to him an opportunity of being publicly heard in person or by counsel in defense of the charges, upon not less than ten (10) days’ notice. If a member shall be removed, the Governor shall file in the office of the Secretary of State a complete statement of all charges made against the member and his findings thereon, together with a complete record of the proceedings.
  8. Each member of the commission shall be entitled to reimbursement for actual and necessary traveling and other expenses incurred by him in the discharge of his official duties and to be paid from the game and fish fund.
  9. A majority of the commission shall constitute a quorum for the transaction of any business, for the performance of any duty or for the exercise of any power vested in the commission.
  10. The department shall have its principal office in Franklin County, and is authorized to purchase all supplies, equipment, and printed forms and to issue any notices and publications as the commissioner may deem necessary to carry out the provisions of this chapter.
  11. The word “sportsman” as used in this section shall mean a resident hunter or fisherman who has been licensed in Kentucky for each of the past two (2) consecutive years.

History. Enact. Acts 1944, ch. 6, § 1; 1952, ch. 200, § 4; 1956, ch. 115, § 2; 1966, ch. 239, § 143; 1978, ch. 178, § 2, effective June 17, 1978; 1980, ch. 336, § 1, effective July 15, 1980; 1998, ch. 296, § 1, effective July 15, 1998; 2010, ch. 158, § 5, effective July 15, 2010.

NOTES TO DECISIONS

1.Chief Officers.

The commissioner and the members of the Commission of Fish and Wildlife Resources and the chief officers of the Department of Fish and Wildlife Resources and whatever official action they are authorized to and do take with respect to KRS 18.270 (now see 18A.095 ) and 12.210 becomes the acts of the department. Pritchett v. Marshall, 375 S.W.2d 253, 1963 Ky. LEXIS 187 ( Ky. 1963 ).

Cited:

Elrod v. Willis, 305 Ky. 225 , 203 S.W.2d 18, 1947 Ky. LEXIS 778 ( Ky. 1947 ).

Opinions of Attorney General.

The passage of a motion to “assume” that everyone present was qualified constituted an agreement to waive inquiry into qualifications and was contrary to the intent of the statute. OAG 65-520 .

Those in attendance at a meeting called by the commissioner of the Department of Fish and Wildlife Resources who meet the qualifications of this section may vote in the election of candidates to serve as members of the Department of Fish and Wildlife Resources Commission. OAG 72-306 .

Those persons exempted by KRS 150.170 from purchasing a fishing or hunting license may vote in the election for persons to serve as members of the Department of Fish and Wildlife Resources Commission if they certify by notarized statement or affidavit that they have hunted or fished in Kentucky for each of the last two consecutive years. OAG 72-306 .

Persons who serve as members of the Fish and Wildlife Resources Commission may not also serve in any state, county, city, town, municipal or federal office. OAG 72-354 .

Membership on the state Game and Fish Commission would constitute a state office. OAG 72-808 .

It is acceptable for the commissioner to permit the sportsmen to conduct their own selection process in each district after the commissioner has given proper notice of the meeting. OAG 79-615 .

It is acceptable for the sportsmen in each district at each meeting to determine the method and manner in which they will select the five individual names to be submitted to the governor, including determining at the meeting the number of votes which each member attending shall have during the meeting. OAG 79-615 .

The Department of Fish and Wildlife Resources could promulgate regulations, pursuant to KRS 150.025(2)(g) (now 150.025(1)(h)) and 150.021(1), to establish more clearly the selection process as long as they do not contradict what is already statutorily required. OAG 79-615 .

Research References and Practice Aids

Cross-References.

Appointments to boards and commissions, general provisions concerning, KRS 12.070 .

Bonds of commission members, amount and conditions, KRS 62.160 , 62.180 .

Forestry division, cooperation with, KRS 149.010 .

150.023. Meetings and functions of commission.

  1. The members of the commission shall meet in Frankfort, quarterly, upon a date to be determined and fixed by the commissioner, or as often as may be necessary for the transaction of business, upon reasonable notice to each member of such meetings. Committees created by the commission may meet as often as necessary to conduct their assigned business at locations throughout the Commonwealth. Committees must provide public notice of each meeting including date, time, and location information. Public notice shall be provided no less than seven (7) days before the meeting date.
  2. The commission shall at all times keep a watchful eye upon the Department of Fish and Wildlife Resources, and advise the commissioner to take such action as may be beneficial to the department and in the interest of wildlife and conservation of natural resources.
  3. The commissioner, with the approval of the commission, shall authorize such scientific and other studies as he deems necessary, and shall collect, classify and disseminate such statistics, data and information as in his discretion will tend to promote the objects of this chapter.
  4. The commissioner, with the approval of the commission, shall have the exclusive power to expend for the protection, conservation, propagation and restoration, and taking and harvesting of all wildlife all funds of the state acquired for the protection, conservation, propagation or restoration of all wildlife arising from licenses, gifts or otherwise.

History. Enact. Acts 1944, ch. 6, § 1; 1952, ch. 200, § 5; 1956, ch. 115, § 3; 1960, ch. 63, § 25; 1986, ch. 265, § 2, effective July 15, 1986; 2019 ch. 115, § 2, effective June 27, 2019.

NOTES TO DECISIONS

Cited:

Pritchett v. Marshall, 375 S.W.2d 253, 1963 Ky. LEXIS 187 ( Ky. 1963 ).

Opinions of Attorney General.

The provision of subsection (1) of this section requiring meetings of the Fish and Wildlife Resources Commission to be held in Frankfort is mandatory as far as quarterly meetings are concerned, but it does not require that other meetings of the commission be held in Frankfort. OAG 62-1168 .

The Department of Fish and Wildlife Resources can spend its funds to propagate game and fish and release same on private property regarding which the general public may not have hunting or fishing rights. OAG 64-162 .

This section authorizes only the commissioner of the Department of Fish and Wildlife Resources to call either the regularly scheduled quarterly meeting or any special meeting of the commission. OAG 72-638 .

The authority of the Department of Fish and Wildlife Resources to establish programs for the conservation of resident endangered wildlife is included without specification in the general authority granted by KRS 150.021(1) and subsection (2) of this section. OAG 84-214 .

The authority of the Department of Fish and Wildlife Resources to conduct investigations is clearly stated in subsection (3) of this section. OAG 84-214 .

Research References and Practice Aids

Cross-References.

Bonds to be required of employees who handle money, KRS 62.170 .

Department staffs, general provisions concerning, KRS 12.060 .

150.024. Power to acquire property — Condemnation.

The department shall have the right to acquire such property as may be necessary to carry out the purpose of this chapter, and it shall have the right of eminent domain as provided in the Eminent Domain Act of Kentucky.

History. Enact. Acts 1944, ch. 6, § 1; 1952, ch. 200, § 6; 1976, ch. 140, § 65.

NOTES TO DECISIONS

1.Purchase of Land.

The Division of Game and Fish, under the Department of Conservation, was composed of the director, and advisory members, and the director alone had no authority to contract for the purchase of land for a game preserve. Tipton v. Brown, 277 Ky. 625 , 126 S.W.2d 1067, 1939 Ky. LEXIS 690 ( Ky. 1939 ) (decided under prior law).

A motion passed by a majority of the advisory commission of the Division of Game and Fish to set aside $20,000 for the purchase of land did not authorize the director of the division to purchase a specific parcel for $26,927.50. Tipton v. Brown, 277 Ky. 625 , 126 S.W.2d 1067, 1939 Ky. LEXIS 690 ( Ky. 1939 ) (decided under prior law).

The Kentucky Real Estate Board had no authority to approve the purchase of land by the Division of Game and Fish. Tipton v. Brown, 277 Ky. 625 , 126 S.W.2d 1067, 1939 Ky. LEXIS 690 ( Ky. 1939 ) (decided under prior law).

Opinions of Attorney General.

Although conservation officers are peace officers to the extent of the fish and game laws, a conservation officer is not a “peace officer” in the full sense of the term and a county judge (now county judge/executive) would have no authority to appoint a fish and wildlife officer as a peace officer. OAG 76-74 .

Research References and Practice Aids

Cross-References.

Eminent Domain Act of Kentucky, KRS 416.540 to 416.680 .

150.0241. Access to and use of commission-managed lands for hunting — Duties of commission and other state agencies — Reports.

  1. As used in this section unless the context otherwise requires:
    1. “Commission” has the same meaning as in KRS 150.010 ;
    2. “Commission-managed lands” means those lands owned by the commission, those lands owned by the Commonwealth over which the commission holds management authority, or those privately owned lands that are leased or managed by the commission; and
    3. “Hunting” means the lawful pursuit, trapping, shooting, capture, collection, or killing of wildlife or the lawful attempt to do the same.
  2. Commission-managed lands shall be open to access and use for hunting except as limited by the commission for reasons of fish or wildlife management, or as otherwise limited by a statute outside KRS Chapter 150 or 235.
  3. The commission, in exercising its authority under the Constitution of the Commonwealth of Kentucky and statutes, shall exercise its authority consistent with subsection (2) of this section, in a manner that supports, promotes, and enhances hunting opportunities to the extent authorized by law.
  4. Commission land management decisions and actions, including decisions made by private owners to close land managed by the commission, shall not result in any net loss of habitat land acreage available for hunting opportunities on commission-managed lands that exists on July 15, 2010. The commission shall expeditiously find replacement acreage for hunting to compensate for closures of any existing hunting land. Replacement lands shall, to the greatest extent possible, be located within the same wildlife district and shall be consistent with the hunting discipline that the commission allowed on the closed land.
  5. Any state agency that owns or manages lands shall assist and coordinate and cooperate with the commission to allow hunting on these lands if the lands are determined by the commission and that agency to be suitable for hunting. To ensure no net loss of land acreage available for hunting, state agencies shall cooperate with the commission to open new, additional hunting lands to replace lost hunting acreage. Lands officially designated as units within the state park system may be considered for replacement hunting lands and may be open for hunting when necessary as a wildlife control or management tool as determined by the Department of Parks.
  6. By October 1 of each year, the commissioner shall submit to the Legislative Research Commission and the Interim Joint Committee on Natural Resources and Environment a written report describing:
    1. The acreage managed by the commission that was closed to hunting during the previous fiscal year and the reasons for the closures; and
    2. The acreage managed by the commission that was opened to hunting to compensate for closures of existing land pursuant to subsection (4) of this section.
  7. By October 1 of each year, any state agency that owns or manages lands shall submit a written report to the commission, the Legislative Research Commission, and the Interim Joint Committee on Natural Resources and Environment describing:
    1. A list of properties that were open for hunting during the previous fiscal year;
    2. A list of properties that were not open for hunting during the previous fiscal year; and
      1. The acreage for each property and the county where each property is located, including lands on which a right-of-way exists which make the lands unsuitable for hunting, and an explanation of why the right-of-way makes the land unsuitable for hunting; and (c) 1. The acreage for each property and the county where each property is located, including lands on which a right-of-way exists which make the lands unsuitable for hunting, and an explanation of why the right-of-way makes the land unsuitable for hunting; and
      2. Parcels under fifty (50) acres. No agency shall subdivide land it owns or manages into parcels under fifty (50) acres in an attempt to avoid compliance with the provisions of this section.
  8. The first report under this section shall be due no later than October 1, 2010.

History. Enact. Acts 2010, ch. 158, § 4, effective July 15, 2010.

150.025. Power of department to make administrative regulations as to game and fish, including seasons and limits — Inclusion of administrative regulations on department’s Web site.

  1. In carrying out the provisions of this chapter the department may, by administrative regulations promulgated under the provisions of KRS Chapter 13A:
    1. Fix, close, terminate, shorten, or divide open season, or make open seasons conditional;
    2. Regulate bag or creel limits and possession limits;
    3. Regulate buying, selling, or transporting;
    4. Regulate the size or type of any device used for taking, and regulate any method of taking;
    5. Regulate or restrict the places where taking is permitted;
    6. Regulate taking, or the opening or closing of seasons, in waters in which the department is conducting experiments or making improvements for the purpose of promoting the conservation of wildlife and increasing the supply thereof;
    7. Make administrative regulations apply to a limited area or to the entire state; and
    8. Promulgate any other administrative regulations reasonably necessary to implement or carry out the purposes of this chapter.
  2. The commissioner shall cause the text of every administrative regulation to be made available electronically on the department’s Web site within five (5) working days of filing. The commissioner shall also cause to be prepared news releases concerning all new or amended administrative regulations for distribution to radio, television, and newspaper media.
  3. This section shall apply to KRS Chapter 150 and no other KRS chapter pertaining to this subject shall apply to KRS Chapter 150.

History. Enact. Acts 1948, ch. 78, § 4; 1952, ch. 200, § 7; 1956, ch. 208; 1966, ch. 239, § 144; 1968, ch. 38, § 2; 1978, ch. 384, § 288, effective June 17, 1978; 1996, ch. 83, § 1, effective July 15, 1996; 2006, ch. 127, § 2, effective July 12, 2006; 2009, ch. 20, § 1, effective June 25, 2009.

NOTES TO DECISIONS

1.In General.

This section does not require a regulation to contain a recital of facts on which it is based. Commonwealth v. Moyers, 272 S.W.2d 670, 1954 Ky. LEXIS 1125 ( Ky. 1954 ).

2.Commercial Fishing Gear.

Regulation of Department of Conservation (now Natural Resources and Environmental Protection Cabinet) forbidding fishing with certain commercial fishing gear in a portion of the Tennessee River does not violate Ky. Const., § 59 as it is not arbitrary or unreasonable so as to exclude one (1) or more of a class without reasonable basis and it is not “local” or “special” legislation because it does not relate to the entire state or to the general public. Commonwealth v. Moyers, 272 S.W.2d 670, 1954 Ky. LEXIS 1125 ( Ky. 1954 ).

Opinions of Attorney General.

Under subsection (2)(a) (now (1)(a)) of this section the Department of Fish and Wildlife Resources may by regulation set seasons which would include Sundays but such would not have the effect of authorizing persons to hunt on Sundays in violation of KRS 436.160(6) (deleted by amendment). OAG 63-846 .

The Department of Fish and Wildlife Resources has authority to promulgate a regulation setting a size limit on largemouth bass in a particular lake provided there is some reasonable basis for differentiating between this body of water and others throughout the state and making the regulation apply only to the taking of fish in this lake. OAG 61-815 .

A fine for violation of a regulation regulating horse power of motors on state-owned lakes adopted pursuant to this section is from a source connected with the administration of KRS Chapter 150 and should be paid to the State Treasurer for deposit in the game and fish fund. OAG 71-253 .

The Department of Fish and Wildlife Resources has the authority to promulgate regulations governing the size and type of any device used for taking wild game. OAG 76-393 .

The Department of Fish and Wildlife Resources has the authority to adopt regulations governing the use of shooting ranges at all wildlife areas in the Commonwealth and has the authority to enforce these regulations; however, these regulations must be uniform in that they apply to every wildlife area in the state where shooting takes place and unless a certain wildlife area is in a class by itself, no regulations may be adopted specifically for that area. OAG 76-617 .

The Department of Fish and Wildlife Resources cannot require a person to be a member of a nonprofit corporation as a prerequisite to using the shooting ranges at a certain wildlife area for such requirement would be an unlawful endorsement of this nonprofit corporation to the exclusion of other private corporations, commercial or nonprofit, and would be illegal and in violation of the Constitution; moreover, since there is no basis for such a classification, such requirement would be unconstitutional as a violation of §§ 59 and 60 of the Kentucky Constitution. OAG 76-617 .

The Department of Fish and Wildlife Resources can prescribe the content of a safety course that it requires all persons to pass prior to using shooting ranges at wildlife areas in the Commonwealth and it can certify a nonprofit corporation to administer the course; but it cannot, by its regulations, provide that this nonprofit corporation has the exclusive right to administer the course. OAG 76-617 .

Research References and Practice Aids

Cross-References.

Filing administrative regulations, KRS ch. 13A.

150.026. Transfer of property, funds, employes of Division of Game and Fish and preservation of civil service status. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1952, ch. 200, § 73) was repealed by Acts 1966, ch. 255, § 283.

150.027. Hearing required before promulgation, amendment, or repeal of administrative regulations affecting property owners or occupants of property adjacent to a lake or other real property owned or controlled by the department.

  1. Not less than sixty (60) days nor more than ninety (90) days prior to the submission of a proposed administrative regulation, proposed amendment to an administrative regulation, or proposed repeal of an administrative regulation to the Administrative Regulation Review Subcommittee which affects property owners or occupants of property adjacent to any lake or other real property owned or controlled by the department, the department shall:
    1. Hold a public hearing at a time and location most convenient to the public at a location within ten (10) miles of the boundary of the lake so that the public can make comments about the proposed administrative regulation, proposed amendment to an administrative regulation, or proposed repeal of an administrative regulation. Copies of the proposed administrative regulation, proposed amendment to an administrative regulation, or proposed repeal of an administrative regulation shall be distributed to members of the public attending the meeting without cost;
    2. Advertise the hearing in accordance with KRS Chapter 424;
    3. Electronically record the hearing and the comments made at the hearing; and
    4. Within thirty (30) days of the close of the hearing, file a statement of consideration with the Administrative Regulation Review Subcommittee summarizing the comments made at the hearing and the department’s response thereto containing the information required by KRS 13A.010 .
  2. The Administrative Regulation Review Subcommittee shall find deficient any proposed administrative regulation, proposed amendment to an administrative regulation, or proposed repeal of an administrative regulation covered by this section which does not comply with the provisions of this section.

History. Enact. Acts 2010, ch. 158, § 12, effective July 15, 2010.

150.028. Required administrative regulations.

The department shall promulgate administrative regulations regarding:

  1. Specific permitted and prohibited uses of department-owned property and activities on department-owned property;
  2. For a violation of an administrative regulation promulgated under subsection (1), (4), or (5) of this section relating to prohibited uses of department-owned property and prohibited activities thereon, offenses and penalties which do not authorize imprisonment, and for which the offense and the penalty are not established by statute;
  3. The issuance of licenses or permits for the use of and conduct of activities on department-owned property, including but not limited to docks on department-owned lakes;
  4. The revocation or suspension, following a hearing pursuant to KRS Chapter 13B, of a license or permit issued pursuant to this section; and
  5. Specific permitted and prohibited uses of a department-owned or controlled buffer zone on land adjacent to a department-owned lake, including sanctions which do not authorize imprisonment for violation of the administrative regulations where a statute does not provide an offense and does not provide a penalty.

History. Enact. Acts 2010, ch. 158, § 13, effective July 15, 2010.

150.030. Expenses of commission. [Repealed.]

Compiler’s Notes.

This section (1954d-4: amend. Acts 1942, ch. 68, § 3) was repealed by Acts 1944, ch. 6, § 3.

150.040. Offices and meetings of commission. [Repealed.]

Compiler’s Notes.

This section (1954d-6, 1954d-7: amend. 1942, ch. 68, § 4) was repealed by Acts 1944, ch. 6, § 3.

150.050. Officers of commission. [Repealed.]

Compiler’s Notes.

This section (1954d-7: amend. Acts 1942, ch. 68, § 5) was repealed by Acts 1944, ch. 6, § 3.

150.060. Oath and bond of director. [Repealed.]

Compiler’s Notes.

This section (1954d-8: amend. 1942, ch. 68, § 6) was repealed by Acts 1944, ch. 6, § 3.

150.061. Commissioner — Appointment — Qualifications — Term — Removal — Compensation — Oath — Bond — Duties — Annual report — Authority to appoint additional employees if grant funds available.

  1. Notwithstanding any provisions of KRS Chapter 18A, 42, 45, 45A, 56, or 64 to the contrary, the commission shall have the sole authority to appoint a commissioner of the Department of Fish and Wildlife Resources, who shall be a person with knowledge of and experience in the requirements for the protection, conservation and restoration of the wildlife resources of the state. The commission shall be the sole contracting body for the purposes of KRS Chapter 45A and shall submit any proposed personal service contract with a commissioner to the Government Contact Review Committee for its review pursuant to KRS 45A.690 to 45A.725 . The commissioner shall serve for a defined employment contract term not to exceed four (4) years and shall be subject to:
    1. Annual review by the commission in closed, executive session;
    2. Removal by the commission for the same cause and in the same manner in which the Governor may remove a member of the commission; and
    3. Reappointment by the commission.
  2. The commissioner shall receive such compensation as the commission may solely determine, and shall be reimbursed for all actual and necessary travel and other expenses incurred by him in the performance of his official duties.
  3. Before entering upon the duties of his office, the commissioner shall take and subscribe to the constitutional oath of office, and shall, in addition thereto, swear or affirm that he holds no other public office, nor any position upon or under any political committee or party. Upon appointment by the commission, the commissioner shall execute a bond of five thousand dollars ($5,000) in favor of the Department of Fish and Wildlife Resources, the premium on said bond to be paid out of department funds.
  4. The commissioner shall have general supervision and control of all activities, functions, appointments, and employees of the Department of Fish and Wildlife Resources. He shall enforce all provisions of the laws of the state relating to wild animals, birds, fish and amphibians, and shall exercise all powers necessarily incident thereto not specifically conferred on the commission. The commissioner shall make an annual report of all receipts and disbursements and file same with the Secretary of State of the Commonwealth of Kentucky.
  5. If federal or other grant funds become available to pay their salaries, the commissioner may appoint and employ other persons that he may deem necessary or desirable to accomplish the purposes of this chapter. The commissioner shall determine the compensation, duties, and terms of employment of these employees, and grant funded, time-limited positions shall be approved by the commission as needed. Employees whose salaries are funded through federal or other grant funds shall not be counted in any tally of permanent employees made for employee cap or budgetary purposes.

History. Enact. Acts 1944, ch. 6, § 1; 1952, ch. 200, § 8; 1956, ch. 115, § 4; 1974, ch. 386, § 28; 2003, ch. 170, § 1, effective June 24, 2003; 2010, ch. 158, § 7, effective July 15, 2010; 2021 ch. 161, § 2, effective March 29, 2021.

NOTES TO DECISIONS

Cited:

Pritchett v. Marshall, 375 S.W.2d 253, 1963 Ky. LEXIS 187 ( Ky. 1963 ).

Opinions of Attorney General.

In the Department of Fish and Wildlife Resources the officer authorized to make appointments is the commissioner and not the commission. OAG 63-140 .

A new commissioner could not be hired on a one-year probationary basis followed by a four-year contract but must be hired on an indefinite basis. OAG 71-334 .

If the commission attempts to remove the commissioner from office, he must be afforded the opportunity for a full public hearing. OAG 71-334 .

Under subsection (1) of this section, the commissioner of the Department of Fish and Wildlife Resources serves for an indefinite term and is subject to removal by the Department of Fish and Wildlife Resources Commission for inefficiency, neglect of duty, or misconduct in office; thus, the commissioner of that department cannot be removed at any time at the pleasure of the Department of Fish and Wildlife Resources Commission but can only be removed for one of the specific causes stated. OAG 83-295 .

150.065. Temporary employees.

The commissioner may employ temporarily such other persons as he may deem necessary or desirable to accomplish the duties and functions assigned by law to the Department of Fish and Wildlife Resources; may fix the compensation and the terms of employment of those employed; and may assign to them such duties and responsibilities as he may determine.

History. Enact. Acts 1982, ch. 439, § 1, effective July 15, 1982.

150.070. Director’s power and duties. [Repealed.]

Compiler’s Notes.

This section (1954d-9, 1954d-20: amend. Acts 1942, ch. 68, § 7) was repealed by Acts 1944, ch. 6, § 3.

150.071. Civil service examinations; regulations pertaining to employes; eligible lists. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1944, ch. 6, § 1; 1952, ch. 200, § 9; 1956, ch. 115, § 5) was repealed by Acts 1960, ch. 63, § 26, effective July 1, 1960.

150.072. Appointments from eligible lists; emergency appointments. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1944, ch. 6, § 1; 1952, ch. 200, § 10) was repealed by Acts 1960, ch. 63, § 26, effective July 1, 1960.

150.080. Conservation officers; appointment. [Repealed.]

Compiler’s Notes.

This section (1954d-9, 1954d-24: amend. Acts 1942, ch. 68, § 8; 1944, ch. 6, § 4; 1946, ch. 27, § 28; 1952, ch. 200, § 11) was repealed by Acts 1960, ch. 63, § 26, effective July 1, 1960.

150.081. Political activity forbidden.

While retaining the right to vote as he may please and to express privately his opinion of all political subjects and issues, no employee or officer of the department including the commissioner, shall take any active part in political management or political campaigns, nor shall he use his office or influence for the purpose of interfering in any election or affecting the results thereof, or for the purpose of coercing the political action of any body or person or for the purpose of directly or indirectly influencing any person in the selection or appointment of a member to the commission.

History. Enact. Acts 1944, ch. 6, § 1; 1952, ch. 200, § 12; 1982, ch. 106, § 1, effective July 15, 1982.

Research References and Practice Aids

Cross-References.

Assessment of state employees for political purposes forbidden, KRS 121.320 .

150.083. Suspension, fine, demotion or dismissal of employes; decrease of number of employes. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1944, ch. 6, §§ 1, 9; 1952, ch. 200, § 13; 1956, ch. 115, § 6) was repealed by Acts 1960, ch. 63, § 26.

150.090. Commissioner’s power and duty to appoint all conservation officers considered to be necessary for the efficient administration of the department — Each conservation officer is individually vested with the powers of a peace officer in all parts of the state.

  1. The commissioner shall appoint, promote, or take other employment actions to the ranks, grades, and positions of the department conservation officers who are considered by the commissioner to be necessary for the efficient administration of the department.
  2. Conservation officers appointed by the commissioner shall have full powers as peace officers for the enforcement of all of the laws of the Commonwealth, including the administrative regulations promulgated pursuant to KRS Chapters 150 and 235 and to serve process.
  3. Each conservation officer is individually vested with the powers of a peace officer and shall have in all parts of the state the same powers with respect to criminal matters and enforcement of the laws relating thereto as sheriffs, constables, and police officers in their respective jurisdictions, and shall possess all the immunities and matters of defense now available or hereafter made available to sheriffs, constables, and police officers in any suit brought against them in consequence of acts done in the course of their employment and within the scope of their duties. Any warrant of arrest may be executed by any officer of the department.
  4. Conservation officers charged with the enforcement of this chapter and the administrative regulations issued thereunder shall have the right to go upon the land of any person or persons whether private or public for the purpose of the enforcement of laws or orders of the department relating to game or fish, while in the normal, lawful and peaceful pursuit of such investigation or work or enforcement, may enter upon, cross over, be upon, and remain upon privately owned lands for such purposes, and shall not be subject to arrest for trespass while so engaged or for such cause thereafter. They may arrest on sight, without warrant, any person detected by them in the act of violating any of the provisions of this chapter. They shall have the same rights as sheriffs to require aid in arresting with or without process any person found by them violating any of the provisions of this chapter and may seize without process anything declared by this chapter to be contraband. No liability shall be incurred by any person charged or directed in the enforcement of this chapter.
  5. Conservation officers and other officers charged with the enforcement of this chapter, shall have the authority to call for and inspect the license or tag, bag or creel of any person engaged in any activity for the performance of which a license is required under this chapter, and shall also have the authority to take proper identification of any person, or hunter, or fisherman who is actually engaged in any of these activities, and to call for and inspect any and all firearms and any other device that may be used in taking wildlife and is in the possession of any person so engaged.
  6. No person shall resist, obstruct, interfere with or threaten or attempt to intimidate or in any other manner interfere with any officer in the discharge of his duties under the provisions of this chapter. This subsection shall not apply to a criminal homicide or an assault upon such officer. An assault upon such officer shall be deemed an offense under KRS Chapter 507 or 508, as appropriate.

History. 1954d-9: amend. Acts 1942, ch. 68, § 9; 1952, ch. 200, § 14; 1956, ch. 115, § 7; 1968, ch. 38, § 3; 1986, ch. 424, § 1, effective July 15, 1986; 2019 ch. 167, § 2, effective June 27, 2019.

NOTES TO DECISIONS

1.Arrest Without a Warrant.

Game wardens have a right to make an arrest without a warrant if the offense is committed in their presence. Commonwealth v. Hoover's Adm'r, 274 Ky. 472 , 118 S.W.2d 741, 1938 Ky. LEXIS 278 ( Ky. 1938 ).

Conservation Officer had the authority to stop and arrest defendant for DUI. Mercer v. Commonwealth, 880 S.W.2d 899, 1994 Ky. App. LEXIS 49 (Ky. Ct. App. 1994).

2.Entrance on Private Property.

This section does not clothe conservation officers with blanket authority to enter upon or pass over private property without the consent of the owner. Commonwealth v. Carr, 312 Ky. 393 , 227 S.W.2d 904, 1950 Ky. LEXIS 655 ( Ky. 1950 ).

3.Lawful Arrest.

While an arrestee’s statements criticizing conservation officers were protected by the First Amendment, because probable cause supported the arrestee’s indictment, arrest, and prosecution for interfering with a conservation officer in violation of KRS 150.090(6), the arrestee’s 42 U.S.C.S. § 1983 claims for retaliatory arrest and prosecution failed as a matter of law; pointing a gun at an officer in a manner that created a substantial danger of injury clearly established probable cause for a charge under KRS 150.090(6). Barnes v. Wright, 449 F.3d 709, 2006 FED App. 0187P, 2006 U.S. App. LEXIS 13610 (6th Cir. Ky. 2006 ).

Opinions of Attorney General.

Although conservation officers cannot act as teachers, they may act as guest lecturers on conservation without being licensed as teachers if a certified teacher remains in the classroom and maintains control of the class. OAG 63-37 .

In the Department of Fish and Wildlife Resources the officer authorized to make appointments is the commissioner and not the commission. OAG 63-140 .

A conservation officer may issue a citation as authorized by KRS 431.015 instead of making an arrest for a misdemeanor committed in the officer’s presence. OAG 63-516 .

Conservation officers are peace officers to the extent of the enforcement of the fish and game laws, and they have express statutory authority to arrest without a warrant any citizen whom they observe in the act of violating such laws. OAG 63-516 .

Regulations made by the Department of Fish and Wildlife Resources governing the use of shooting ranges at all wildlife areas in the Commonwealth, including a requirement that all persons using the course pass a safety course, are enforceable by the Kentucky state police as well as the department. OAG 76-617 .

A person could hold office on the county board of education and at the same time serve as state conservation officer. OAG 78-773 .

Under subsection (1) of this section, conservation officers of the Department of Fish and Wildlife Resources are peace officers to the extent of the enforcement of fish and game laws and they have express statutory authority to arrest without a warrant any citizen whom they observe in the act of violating such laws. Since, under KRS 431.015(1), a peace officer may issue a citation instead of making an arrest for a misdemeanor committed in his presence, if there are reasonable grounds to believe the person cited will appear to answer the charge, a conservation officer may issue a citation, as authorized by KRS 431.015(1) and (2), instead of making an arrest for a misdemeanor committed in the officer’s presence. OAG 83-287 .

Depending upon the facts, the presence of probable cause, and in the open fields of private property, game wardens may enter private property without a warrant in order to enforce state game laws without being in violation of the Fourth Amendment of the Constitution of the United States. OAG 88-26 .

The commissioner of fish and wildlife may issue a comprehensive directive authorizing conservation officers to exercise full powers as peace officers to enforce all laws of the Commonwealth in life threatening situations. OAG 90-3 .

Another law enforcement agency may make a comprehensive request to the commissioner of fish and wildlife for conservation officers to assist them with full powers as peace officers to enforce all laws of the Commonwealth. OAG 90-3 .

Under KRS 446.080(1), this section must be liberally construed with a view to promoting its objects and giving effect to the Legislature’s intent. OAG 90-3 .

A life threatening situation arises for a conservation officer when he finds himself in a situation where human life clearly appears to be placed at imminent and grave risk by conduct of an intentional, negligent or wanton nature. OAG 90-3 .

Research References and Practice Aids

Cross-References.

Forestry division, cooperation with, KRS 149.010 .

Warrant, proceedings of arrest made without, RCr 3.02.

Warrant, when peace officer may arrest without, KRS 431.005 .

150.091. Enforcement of KRS 148.795 and 148.796 by conservation officers. [Repealed]

History. Enact. Acts 2008, ch. 70, § 3, effective July 15, 2008; 2009, ch. 16, § 32, effective June 25, 2009; repealed by 2017 ch. 164, § 9, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 2008, ch. 70, § 3, effective July 15, 2008; 2009, ch. 16, § 32, effective June 25, 2009) was repealed by Acts 2017, ch. 164, § 9, effective June 29, 2017.

150.092. Consent requirement for entry upon lands of another person — Private lands incentive programs — Arrest and citation authority.

  1. Persons shall not enter upon the lands of another to shoot, hunt, trap, or fish, or for other wildlife-related recreational purposes, without the oral or written permission of the landowner, tenant, or person who has authority to grant permission.
  2. The department may promulgate administrative regulations pursuant to KRS Chapter 13A to establish private lands incentive programs encouraging voluntary access to private lands for hunting, fishing, or other wildlife-related recreation, while at the same time protecting the rights of private property owners. Participation in these programs shall not waive any protection granted to the landowner by KRS 150.645 or 411.190 .
  3. A fish and wildlife law enforcement officer may arrest or issue a citation to any person who is in violation of this section or the administrative regulations adopted thereunder.
  4. Persons who enter upon the lands of another to shoot, hunt, trap, or fish, or for other wildlife-related recreational purposes, shall not, through their actions, cause damage to any buildings, fences, crops, livestock or domestic animals, machinery, or other property while upon these lands.
  5. Nothing in this section shall be construed to limit the existing powers of peace officers.

History. Enact. Acts 1960, ch. 74, § 2, effective June 16, 1960; 1976, ch. 227, § 3; 1988, ch. 365, § 2, effective July 15, 1988; 1990, ch. 474, § 2, effective July 13, 1990; 1996, ch. 250, § 1, effective July 15, 1996.

Opinions of Attorney General.

For the purpose of the written consent requirement contained within subsection (1) of this section, there is no justifiable basis on which the Legislature could have created the classification of deer and turkey hunters in contradistinction to hunters of the various other game species. OAG 90-137 .

Land owners, tenants or occupants of land who freely give their permission to persons to enter onto their land to hunt do not thereby increase their legal duty or, therefore, their liability toward those persons. OAG 90-137 .

Subsection (1) of this section, to the extent that it creates the classification of “deer or turkey” hunters who are compelled to obtain written consent of an owner or tenant of land before entering the land to hunt those animals, is violative of Ky. Const., § 59; as such, that portion of the law is arbitrary and violative of Ky. Const., § 2, which prohibits the exercise of arbitrary power over the life and liberty of free persons. OAG 90-137 .

The only liability to which a land owner is exposed when he or she freely gives permission to another to come onto his or her land to hunt or trap is that which already otherwise exists, and that includes liability as a result of willful and malicious failure to guard, or to warn, against a dangerous condition, use, structure or activity. OAG 90-137 .

150.095. Conservation officers may bear arms.

Conservation officers are authorized to keep and bear arms upon their person, concealed or otherwise, in the same manner as all other peace officers, and to exercise the use of such arms to such extent as the same may be necessary in the discharge of their duties.

History. Enact. Acts 1944, ch. 6, § 1; 1952, ch. 200, § 15; 1968, ch. 38, § 4; 2019 ch. 115, § 3, effective June 27, 2019.

Opinions of Attorney General.

Conservation officers are authorized to keep and bear arms upon their person. OAG 63-516 .

Conservation officers may carry weapons concealed only when necessary for their protection in the discharge of their official duties. OAG 63-516 .

Subsection (2) of this section was neither repealed nor amended by Acts 1970, ch. 93 and conservation officers may continue to be authorized by the commissioner to use sirens and suitable flashing lights on vehicles used in the performance of their duties. OAG 70-434 .

There is no conflict between this section which sets out a specific exception to a general rule and KRS 189.910 and 189.920 which set out a general rule. OAG 72-695 .

150.097. Indemnification by the Commonwealth of conservation officer who is sued in his or her individual capacity and personally suffers financial loss — Indemnification contingent upon findings that the act or omission which resulted in liability was lawful and proper and within the officer’s scope and course of employment — Indemnification does not abrogate, limit, or constitute a waiver of any privilege, immunity, or matter of defense otherwise available to the conservation officer.

  1. Any conservation officer who is sued for any act or omission in the line of duty and who has a judgment for monetary damages rendered against him or her in his or her individual capacity, and who personally suffers actual financial loss, unreimbursed from any source, by the enforcement and satisfaction of the judgment, including any costs or attorney fees awarded pursuant thereto, shall be indemnified by the Commonwealth, from funds appropriated to the fish and game fund for the payment of judgments, to the extent of his or her actual financial loss.
  2. The indemnification shall be contingent upon an express determination by the commissioner that the act or omission which resulted in liability was within the scope and course of employment of the conservation officer, and occurred during the performance of duty, and was committed or omitted in the good faith belief that the act or omission was lawful and proper.
  3. The indemnification shall not be construed to abrogate or limit any privilege, immunity, or matter of defense otherwise available to the conservation officer and shall not constitute a waiver of any privilege, immunity, or matter of defense, including the sovereign immunity of the Commonwealth.

HISTORY: 2019 ch. 167, § 3, effective June 27, 2019.

150.100. Execution of process by commissioner, department personnel and persons appointed by commissioner.

The commissioner, all personnel of the department and all officers and other persons appointed by the commissioner may execute any process issued by a court, enforcing the provisions of this chapter or any law relating to the propagation or protection of fish and wildlife in the same manner as any constable or sheriff. To accomplish that purpose they may call any peace officer or other person to their aid.

History. 1954d-23: amend. Acts 1942, ch. 68, § 10; 1952, ch. 200, § 16.

Opinions of Attorney General.

In the Department of Fish and Wildlife Resources the officer authorized to make appointments is the commissioner and not the commission. OAG 63-140 .

150.105. Destruction or control of animals causing damage.

Notwithstanding any other provisions of this chapter, the commissioner may, with the approval of the commission, authorize conservation officers or any other persons to destroy or bring under control in such manner as he deems necessary any wild animal, fish or wild birds, protected or unprotected which are causing damage to persons, property or other animals, fish or birds or spreading diseases and which in his judgment should be eliminated or controlled to prevent further damage.

History. Enact. Acts 1944, ch. 6, § 1; 1952, ch. 200, § 17; 1956, ch. 115, § 8, effective May 18, 1956.

150.110. Enforcement of law as to mussels.

The commissioner and conservation officers may arrest without warrant anyone violating any of the provisions of KRS 150.520 or any of the rules and regulations made by the department for the protection of mussels under this chapter. They may inspect mussels in any warehouse, boat, store, car or receptacle when they have good cause to believe that any of the provisions of KRS 150.520 or any of the rules or regulations made thereunder have been or are being violated. This authority does not include the right to enter any dwelling house without a search warrant. When the officers find mussels in the possession of anyone in violation of this chapter, the mussels shall be confiscated and sold in the manner provided by KRS 150.120 for the sale of confiscated wildlife.

History. 1954d-50: amend. Acts 1942, ch. 68, § 11; 1952, ch. 200, § 18; 1966, ch. 255, § 144; 1968, ch. 38, § 5; 1978, ch. 384, § 31, effective June 17, 1978; 1986, ch. 265, § 3, effective July 15, 1986; 1994, ch. 413, § 2, effective July 15, 1994.

150.120. Seizure and sale of contraband.

  1. The commissioner, all conservation officers, persons appointed by the commissioner, and all peace officers and their deputies shall seize and take possession of any and all furs, wildlife, guns, dogs, instruments, boats or devices which have been taken, used, transported or possessed contrary to any law or regulation adopted under this chapter. Upon complaint showing probable cause for believing that any of the wildlife protected by any law or regulation are illegally kept in any building, car or receptacle, any court having jurisdiction may issue a search warrant and cause the same to be searched. Any wildlife, furs, guns, dogs, instruments, or devices seized in accordance with this section shall be impounded by the arresting officer and shall be taken before the court trying the person arrested.
  2. Upon conviction, the court trying the case shall have the discretion of determining whether or not any of the things seized under the provisions of subsection (1) of this section shall be declared contraband. Any wildlife, fur or dog taken, and any device used or possessed contrary to the provisions of this chapter, or any regulations adopted hereunder, is subject to being declared contraband. When any such item is declared contraband, the court shall enter an order accordingly. A copy of the order shall be forwarded to the commissioner and the contraband shall be placed in the custody of the arresting officer, to be delivered to the commissioner.
  3. The commissioner may sell to the residents of this state, at the highest market price obtainable, with the approval of the Governor and the Finance and Administration Cabinet all contraband which comes to his possession under the order of any court, or which has been seized under this chapter and declared to be contraband under any law relating to fish or wildlife. All proceeds arising from the sale of contraband articles shall be paid into the game and fish fund. A record of the sale, including the name of the purchaser and the price paid, shall be kept by the commissioner.
  4. Any device or contrivance, the use of which is not expressly recognized and sanctioned by the provisions of this chapter for the taking of wildlife, is hereby declared to be an illegal device. No person shall have in his possession any illegal device or other thing prohibited by law or by any regulation adopted under this chapter for the taking of wildlife.

History. 1954d-21, 1954d-27: amend. Acts 1942, ch. 68, § 12; 1948, ch. 78, § 5; 1952, ch. 200, § 19; 1956, ch. 115, § 9; 1986, ch. 265, § 4, effective July 15, 1986.

NOTES TO DECISIONS

1.Confiscation of Guns.

Where justice of peace had fined hunter $15.00 on charge of hunting with an unplugged shotgun in violation of KRS 150.310 (now repealed) and declared the gun contraband under this section and ordered it turned over to the conservation officers who made the arrest for delivery to the commissioner of fish and wildlife resources, he could not without notice and solely on his own motion, set aside the portion of the judgment declaring the shotgun contraband and order it redelivered to his court based on an affidavit that the gun had been purchased on a conditional sales contract from a store who held title to it under the contract, and that it had been stolen by the hunter. Commonwealth v. Dummitt, 237 S.W.2d 544, 1951 Ky. LEXIS 773 ( Ky. 1951 ).

2.— Recovery.

Hunter who had pleaded guilty to hunting without a license and who had his gun confiscated under this section could not maintain a claim and delivery action against the commissioner of fish and wildlife resources to recover the gun following his appeal of the confiscation to the Circuit Court and a judgment by the Circuit Court that the confiscation order of the justice of peace was void. Wallace v. Sowards, 313 Ky. 360 , 231 S.W.2d 10, 1950 Ky. LEXIS 863 ( Ky. 1950 ).

3.— Appeal.

Where hunter pleaded guilty to hunting without a license and was fined $15.00 and costs and his shotgun confiscated by justice of peace who turned it over to the commissioner of fish and wildlife resources, he could appeal the judgment of confiscation since it was severable from the judgment for payment of the fine and satisfaction of one (1) part did not constitute satisfaction of the other part. Wallace v. Sowards, 313 Ky. 360 , 231 S.W.2d 10, 1950 Ky. LEXIS 863 ( Ky. 1950 ).

4.— Failure of Commissioner to Obey Court Order.

Where Circuit Court declared judgment of justice of peace confiscating hunter’s gun void and directed, by judgment, the commissioner of fish and wildlife resources, who was not and could not be a party to the appeal, to return the gun to the court, he had a positive duty to comply with the judgment when he was given actual notice of it by service of the judgment on him by the sheriff and upon his refusal to comply the court could proceed against him for contempt. Wallace v. Sowards, 313 Ky. 360 , 231 S.W.2d 10, 1950 Ky. LEXIS 863 ( Ky. 1950 ).

5.Seizure of Wild Birds.

It is not unreasonable seizure denounced by Const., § 10 for game warden, acting under statutory authority, to seize without process quails possessed by hunter who did not exhibit license, and carry them before magistrate for trial and condemnation. Manning v. Roberts, 179 Ky. 550 , 200 S.W. 937, 1918 Ky. LEXIS 248 ( Ky. 1918 ).

Cited:

C. J. Hendry Co. v. Moore, 318 U.S. 133, 63 S. Ct. 499, 87 L. Ed. 663, 1943 U.S. LEXIS 1122 (1943).

Opinions of Attorney General.

Although a juvenile may not be fined or jailed for a violation of the fish and game laws, if a violation thereof is proved by the Commonwealth beyond a reasonable doubt in a hearing as provided for in KRS 208.060 (now repealed), the judge of the juvenile court may lawfully confiscate a gun in the possession of the juvenile. OAG 75-92 .

All evidence and materials declared contraband pursuant to this section are to be delivered to the commissioner of fish and wildlife resources and disposed of in accordance with this section. OAG 75-426 .

150.130. County and Commonwealth’s attorneys to enforce laws and regulations.

All county attorneys and Commonwealth’s attorneys shall enforce the provisions of this chapter and all regulations adopted hereunder.

History. 1954d-22: amend. Acts 1942, ch. 68, § 13; 1948, ch. 78, § 6; 1952, ch. 200, § 20; 1976 (Ex. Sess.), ch. 17, § 44, effective January 1, 1978.

Research References and Practice Aids

Cross-References.

Attorneys for state agencies, employment of, KRS 12.210 .

Kentucky Law Journal.

Underwood, Part-Time Prosecutors and Conflicts of Interest: A Survey and Some Proposals, 81 Ky. L.J. 1 (1993).

150.140. Report and payment of moneys by circuit clerk.

Each circuit clerk responsible for the court before whom any prosecution under this chapter for the violation of any law or regulation for the protection of wildlife may be commenced or shall go on appeal shall, within ten (10) days after the end of each month, report in writing to the commissioner the result of the prosecution, the amount of fine collected or penalty imposed, if any. All moneys collected as fines or penalties for the violation of any law or regulation which, according to law, goes to the game and fish fund, shall be paid to the State Treasurer within ten (10) days after the end of each month and the same shall be paid by the State Treasurer into the game and fish fund within thirty (30) days thereafter.

History. 1954d-12: amend. Acts 1942, ch. 68, § 14; 1952, ch. 200, § 21; 1978, ch. 178, § 3, effective June 17, 1978; 1978, ch. 384, § 32, effective June 17, 1978; 1986, ch. 265, § 5, effective July 15, 1986.

Opinions of Attorney General.

If a judge of the juvenile court unlawfully imposed a fine or jail sentence on a juvenile for a violation of the fish and game laws, any legal action against him personally probably would be subject to the defense of judicial immunity and any action for the recovery of a fine probably would be complicated by the provisions of this section and KRS 150.160 . OAG 75-92 .

150.150. Game and fish fund — Mussel beds — Funds for hunger relief — Accounting and report — Contribution to Becoming an Outdoors-Woman Program.

    1. Except as provided in this chapter, all moneys derived from the sale of licenses or from any other source connected with the administration of this chapter shall be promptly paid over to the State Treasurer, who shall deposit such moneys in a special fund, known as the game and fish fund, except that the moneys shall be entered under separate restricted fund accounts, not commingled, and maintained according to generally accepted accounting principles. (1) (a) Except as provided in this chapter, all moneys derived from the sale of licenses or from any other source connected with the administration of this chapter shall be promptly paid over to the State Treasurer, who shall deposit such moneys in a special fund, known as the game and fish fund, except that the moneys shall be entered under separate restricted fund accounts, not commingled, and maintained according to generally accepted accounting principles.
    2. Moneys derived from the sale of licenses issued under this chapter shall be under separate restricted fund account from any other proceeds derived from this chapter or from proceeds obtained under any other chapter.
    3. The game and fish fund:
      1. Shall be used to:
        1. Carry out the purposes of this chapter and any law or regulation for the protection of wildlife; and
        2. Pay the annual supplement provided in KRS 15.460(1)(e) and
      2. Shall not be used for any other purpose.
  1. All funds received under KRS 150.110 and 150.520 shall be used by the department for the purpose of enforcing those sections and for the protection and propagation of mussel beds. Any surplus remaining in the fund at the close of each calendar year shall be turned into the general fund of the department.
  2. In addition to the funds derived pursuant to KRS 186.050(15), the department shall, beginning August 1, 2006, and each fiscal year thereafter, set aside not less than twenty-five thousand dollars ($25,000) from the game and fish fund for the purpose of promoting hunger relief through specific wildlife management and conservation efforts. The department shall provide for a separate accounting of these funds and shall, by October 1, 2007, and annually thereafter, report on the expenditures made pursuant to this subsection to the Governor and the Legislative Research Commission.
  3. The department shall prescribe a method to allow any applicant for a license required under KRS 150.175 to make, at the time of application, a voluntary contribution in the amount of two dollars ($2) for the Becoming an Outdoors-Woman Program or other hunter and angler recruitment and retention program. The voluntary contribution shall be deposited into a separate, restricted account within the game and fish fund. The Becoming an Outdoors-Woman Program shall encourage women in developing skills for outdoor recreational activities including but not limited to hunting and angling. The voluntary contribution shall be automatically added to the cost of the license at the time of sale.

HISTORY: 1954d-10, 1954d-48: amend. Acts 1942, ch. 68, § 15; 1952, ch. 200, § 22; 1968, ch. 38, § 6; 1978, ch. 384, § 33, effective June 17, 1978; 1986, ch. 265, § 6, effective July 15, 1986; 1994, ch. 413, § 3, effective July 15, 1994; 2006, ch. 57, § 2, effective July 12, 2006; 2010, ch. 158, § 6, effective July 15, 2010; 2018 ch. 89, § 14, effective July 1, 2018.

NOTES TO DECISIONS

1.Use of Fund.

Where the Department of Fish and Wildlife Resources stated that it would serve no fishing or wildlife purpose to reconstruct the dam, the fund could not be used for the reconstruction of the dam. Shelbyville ex rel. Shelbyville Municipal Water & Sewer Com. v. Commonwealth, Natural Resources & Environmental Protection Cabinet, 706 S.W.2d 426, 1986 Ky. App. LEXIS 1070 (Ky. Ct. App. 1986).

Opinions of Attorney General.

The Department of Fish and Wildlife Resources can spend its funds to propagate game and fish and release same on private property regarding which the general public may not have hunting or fishing rights. OAG 64-162 .

A county clerk was individually liable to the State Treasurer for money derived from the sale of hunting and fishing licenses by a grocery store to which the clerk had assigned licenses, where the store sold the licenses but because of bankruptcy failed to pay over the license money to the clerk. OAG 76-41 .

Interest on funds deposited on behalf of the Department of Fish and Wildlife Resources should be credited on a pro rata basis to the game and fish fund to be used to carry out the purposes of KRS Chapter 150 as directed by this section. OAG 78-761 .

Interest earned on the investment of excess cash in the form of federal moneys received by the Department of Fish and Wildlife Resources should be credited to the game and fish fund to be used to carry out the purposes of KRS Chapter 150 and for no other purpose. OAG 82-457 .

150.152. Report of audit of department by Auditor of Public Accounts.

Each year when the Auditor of Public Accounts conducts the statewide single audit of the Commonwealth of Kentucky, the Auditor of Public Accounts shall with respect to the Department of Fish and Wildlife Resources:

  1. Examine the separate revenue streams of each account within the game and fish fund to ensure compliance with the prohibition against commingling of funds;
  2. Disaggregate and report the revenue and expenditures, by type, within the program income fund of the fish and game fund;
  3. Identify internal controls, weaknesses, operating inefficiencies, and make recommendations for improvements; and
  4. Submit a written report to the Interim Joint Committee on Natural Resources and Environment in conjunction with the release of the statewide single audit of the Commonwealth of Kentucky.

History. Enact. Acts 2010, ch. 158, § 1, effective July 15, 2010.

150.160. Disposition of fines.

Sixty percent (60%) of a fine imposed for the violation of this chapter or KRS Chapter 235 shall, when collected, be paid into the game and fish fund.

History. 1954d-25, 1954d-26: amend. Acts 1942, ch. 68, § 16; 1952, ch. 200, § 23; 1976 (Ex. Sess.), ch. 17, § 45, effective January 1, 1978; 1998, ch. 275, § 2, effective July 15, 1998.

NOTES TO DECISIONS

1.Appeal by Commonwealth.

As the punishment for violation of a regulation put into effect under subsection (2)(d) (now (1)(d)) of KRS 150.025 can only be a fine, the Commonwealth has the right to appeal from a judgment of acquittal based on directed verdict for defendant by Circuit Court and upon the judgment being reversed by Court of Appeals there may be a new trial despite the former judgment of acquittal. Commonwealth v. Moyers, 272 S.W.2d 670, 1954 Ky. LEXIS 1125 ( Ky. 1954 ).

Cited:

Miller v. Robertson, 306 Ky. 653 , 208 S.W.2d 977, 1948 Ky. LEXIS 631 ( Ky. 1948 ).

Opinions of Attorney General.

Since under this section a portion of the fine for violations of the fish and game laws contained in this chapter is paid to the fish and game fund in the State Treasury, the tax imposed by KRS 142.030 (now repealed) is applicable and should be made part of the costs assessed against the convicted defendant. OAG 63-271 . (Decision prior to 1967 amendment.)

Pursuant to this section, the 40 percent fee of the county attorney for prosecutions of fish and game violations is paid directly and only the remaining 60 percent is sent to the commissioner of fish and wildlife resources. OAG 67-14 . (Decision prior to 1967 amendment.)

If a judge of the juvenile court unlawfully imposed a fine or jail sentence on a juvenile for a violation of the fish and game laws, any legal action against him personally probably would be subject to the defense of judicial immunity and any action for the recovery of a fine probably would be complicated by the provisions of KRS 150.140 and this section. OAG 75-92 .

Research References and Practice Aids

Kentucky Law Journal.

Vanlandingham, The Fee System in Kentucky Counties, 40 Ky. L.J. 275 (1952).

150.165. Nongame fish and wildlife fund.

  1. There is established a special fund to be known as the “Nongame Fish and Wildlife Fund” which shall be under the control of the Department of Fish and Wildlife Resources Commission for the purpose of protecting and preserving nongame fish and wildlife and their habitat.
  2. The nongame fish and wildlife fund shall consist of all moneys transferred to it under KRS 141.465 , appropriations, donations, federal funds, other revenues designated for the fund from any source whatever, and all interest earned thereon.
  3. Moneys contained in the nongame fish and wildlife fund shall be deemed a trust and agency account and shall not lapse and moneys contained in the fund shall be continuously appropriated for the purposes specified in this section.
  4. The Department of Fish and Wildlife Resources Commission shall have access to and control of the moneys held in the nongame fish and wildlife fund, but shall expend such moneys only to protect and preserve nongame fish and wildlife and their habitat.

History. Enact. Acts 1980, ch. 121, § 5, effective July 15, 1980.

150.170. Requirement of hunting, fishing, trapping, or guide’s license — Exceptions — Killing of wildlife causing damage — Reporting requirements — Reciprocity with adjoining states — Exception for active duty or reserve members on military property.

  1. Except as provided in the following subsections of this section, and subject to administrative regulations promulgated under this chapter, no person, resident, or nonresident shall do any act authorized by any kind of license or permit or assist in any way any person in doing any act provided for in this chapter with respect to wildlife unless he holds the kind of license or permit, resident or nonresident, that authorizes the act. It shall be the specific purpose of this chapter to prohibit the taking or pursuing of any wildlife, protected or unprotected, or the fishing in any stream or body of water whether public or private, without first procuring the license provided for in KRS 150.175 , except to the extent as may be otherwise provided in this section.
  2. A person under sixteen (16) years of age may, without a sport fishing license, take fish by angling, or take minnows by the use of a minnow seine, minnow trap, or dip net.
  3. A person under twelve (12) years of age shall be exempt from being required to obtain a sport hunting or sport trapping license as required by this chapter.
  4. The resident owner of farmlands or his or her spouse or dependent children shall, without procuring any sport hunting or sport fishing licenses, have the right to take fish or hunt during the open season, except trapping, on the farmlands of which they are bona fide owners. Tenants or their dependent children residing upon these farmlands shall have the same privilege.
  5. Residents or nonresidents observing and participating in field trials, training exercises, or other competitions as authorized by the department may observe and participate without obtaining a hunting or guide’s license so long as game is not taken.
  6. Any resident serviceman on furlough of more than three (3) days in this state may, without any Kentucky sport hunting or sport fishing licenses, do any act authorized by the licenses, but while so doing he shall carry on his person proper identification and papers showing his furlough status.
  7. Landowners, their spouses or dependent children, or their designee who must be approved by the commissioner, who kill or trap on their lands any wildlife causing damage to the lands or any personal property situated thereon shall not be required to have a hunting or trapping license and may do so during periods other than the open season for the particular species without a tag and dispose of the carcass on-site. Tenants, their spouses, their dependent children, or other persons approved by the commissioner, shall also have the same privilege. Upon destruction of any wildlife by the above-specified individuals, the act shall be reported to a conservation officer within twenty-four (24) hours of the kill. Individuals wishing to transport the carcass from the property upon which it was killed shall contact personnel of the department to request a disposal tag or other authorization. Inedible parts from wildlife taken under the authorization of this section shall not be utilized for any purpose and shall be destroyed or left afield. The department shall promulgate administrative regulations establishing procedures for the designee appointment process, including request and approval deadlines.
  8. If a reciprocal agreement is entered into by the commissioner, with the approval of the commission, and promulgated as an administrative regulation by the department and similar action is taken by the appropriate authority in Missouri, Tennessee, Virginia, West Virginia, Indiana, Ohio, or Illinois, persons holding a resident or nonresident fishing or a resident or nonresident hunting license issued in these states shall be permitted to perform the acts authorized by the license upon certain contiguous waters and land areas adjacent to the common boundaries of the above-mentioned states and the State of Kentucky. A resident of the State of Kentucky shall purchase a proper Kentucky license to conform with the reciprocal agreement.
  9. Any member of the Kentucky Army or Air National Guard, active duty or Reserve Component, in any branch in the United States Armed Forces that is based in the Commonwealth of Kentucky, shall have the right to take fish or hunt on any military property belonging to the Commonwealth without procuring any sport hunting or sport fishing license.

History. 1954d-13: amend. Acts 1942, ch. 68, § 17; 1944, ch. 110; 1944, ch. 124, § 2; 1946, ch. 84, § 2; 1948, ch. 78, § 7; 1952, ch. 200, § 24; 1956, ch. 115, § 10; 1966, ch. 256; 1968, ch. 38, § 7; 1968, ch. 95, § 1; 1970, ch. 92, § 27; 1972, ch. 273, § 2; 1974, ch. 386, § 29; 1984, ch. 320, § 1, effective July 13, 1984; 1986, ch. 7, § 1, effective July 15, 1986; 1986, ch. 265, § 7, effective July 15, 1986; 1986, ch. 273, § 1, effective July 15, 1986; 1990, ch. 40, § 1, effective July 13, 1990; 1990, ch. 90, § 1, effective July 13, 1990; 1992, ch. 353, § 1, effective July 14, 1992; 1994, ch. 181, § 99, effective April 4, 1994; 1996, ch. 112, § 1, effective July 15, 1996; 1996, ch. 133, § 1, effective July 15, 1996; 1998, ch. 274, § 1, effective March 1, 1999; 2002, ch. 173, § 1, effective July 15, 2002; 2008, ch. 42, § 1, effective July 15, 2008; 2011, ch. 12, § 1, effective June 8, 2011; 2014, ch. 19, § 1, effective July 15, 2014.

NOTES TO DECISIONS

1.Resident Owners.

The Legislature has the right, which it has exercised by KRS 150.470 to restrict the number and size of fish taken by the public from private ponds as well as public streams and to require anglers to procure state fishing licenses as a prerequisite to their right to fish in private pond although it has exempted owners as it has under KRS 150.170(3). Draffen v. Black, 302 Ky. 775 , 196 S.W.2d 362, 1946 Ky. LEXIS 746 ( Ky. 1946 ) (Decision prior to enactment of KRS 150.650 , 150.660 and 150.670 ).

Even if patrons of a private pay lake who paid $1.00 per day for “lease” to fish were true lessees they are not resident lessees or lessees on the land of the resident landowner within the meaning of this section. Holland v. Flora, 284 S.W.2d 824, 1955 Ky. LEXIS 52 ( Ky. 1955 ) (Decision prior to enactment of KRS 150.650 (now repealed), 150.660 and 150.670 (now repealed)).

2.— Lessees.

To become a lessee protected by the terms of this section from license requirements, some sort of tenancy issuing out of real estate must be obtained by the alleged lessee from his lessor giving the former some sort of exclusive privilege over the portion of the estate so leased and a bare verbal license revocable at any time to engage in the privilege of fishing from the shore is not such a lessee as this section contemplates. Giannini v. Garland, 296 Ky. 361 , 177 S.W.2d 133, 1944 Ky. LEXIS 537 ( Ky. 1944 ).

Patrons who paid $1.00 per day for a “lease” to fish in a private pay lake were covered by this section and required to obtain licenses. Holland v. Flora, 284 S.W.2d 824, 1955 Ky. LEXIS 52 ( Ky. 1955 ) (Decision prior to enactment of KRS 150.650 (now repealed), 150.660 and 150.670 (now repealed)).

Cited:

Ex parte Auditor of Public Accounts, 609 S.W.2d 682, 1980 Ky. LEXIS 274 ( Ky. 1980 ).

Opinions of Attorney General.

Subsection (2) of this section is applicable to nonresidents. OAG 62-334 .

A motel guest is not a “tenant” as the term is defined in subsection (30) (now subsection (38)) of KRS 150.010 and consequently is not within the exception of subsection (3) (now (4)) of this section and must have state fishing license in order to fish in a small lake located on motel property which has been stocked by the motel owner at his own expense. OAG 62-568 .

There is no provision permitting a child under 16 to hunt without a license but he may obtain a junior hunting license pursuant to KRS 150.175(12) (now KRS 150.175(8)). OAG 62-1053 .

It was proper for conservation officers to arrest a man who was hunting on his father-in-law’s farm without a license and who was a resident of another county. OAG 63-14 .

Only the owner, his wife and children who actually reside on the farm may hunt thereon without a license. OAG 63-14 .

A person engaged in hunting red fox with dogs for sport and not to kill is required to have the hunting license provided for by KRS 150.175(11) (now KRS 150.175(7)). OAG 63-603 .

KRS 150.370(2) does not provide an exception to the requirement of license in order to engage in hunting foxes with dogs. OAG 63-603 .

A license is required of each person engaging in hunting red fox with dogs for sport and not to kill even though no gun is carried and the fox is not harmed. OAG 63-603 .

A resident of Kentucky who is 65 years of age or older may, without a statewide hunting license, engage in hunting deer, but such person must obtain a deer hunting permit required by KRS 150.175 (r) (see now game license under 150.175 (17)). OAG 64-15 .

The department of fish and wildlife may, in its discretion, provide that those persons under 16 or over 65 years of age and landlords and tenants actually residing on the land may be exempted from a regulation providing for the purchase of a trout stamp. OAG 71-142 .

Deer tags and trout stamps are “sport hunting or sport fishing licenses” for the purposes of subsections (3), (5) and (6) of this section. OAG 72-774 .

A farm tenant, though he works and farms more than one farm of his landlord, is permitted to hunt and fish only upon the land on which he actually lives and may not hunt and fish on any other farmland owned by his landlord without obtaining a license. OAG 75-119 .

A resident owner of farmlands, to qualify for the exemption in subsection (3) (now (4)) of this section, must actually reside on the farmlands in question. OAG 79-127 .

Because Illinois limits the number of deer hunting permits issued to nonresident hunters, Kentucky should not issue permits to Illinois hunters. OAG 80-600 .

KRS 150.175(1)(q), (s), and (w) (now (17), (19), and (20)), by their plain meaning alone would render untenable any position that would hold the taking of trout, waterfowl or big game as activities included within those allowed by the holders of only the sport fishing and sport hunting licenses. OAG 90-114 .

The exemptions to the normal license requirements found at subsections (5) through (8) of this section make it permissible for the classes of persons therein named to perform all acts permitted by a sport fishing or sport hunting license without purchasing same, but those permitted acts do not include taking or pursuing deer, bear or wild turkey (for which they must purchase a big game permit); taking trout (for which they must purchase a trout stamp); or, taking or pursuing migratory waterfowl (for which they must purchase a Kentucky waterfowl stamp); in addition to the above, all other legal requirements, including the purchase of any other normally required permits, stamps or tags, must be fulfilled to do any of these acts, with the only exception being that residents of the Commonwealth who are 65 years of age or older are not required to purchase a Kentucky waterfowl stamp. OAG 90-114 .

The statutory language in subsections (5) through (8) of this section makes it consistently clear that in each case the extent of the exemption reaches only so far as to cover those acts authorized by the licenses (sport hunting or sport fishing). OAG 90-114 .

There is a distinction between a hunting license and a permit, as the license authorizes the hunter to take or pursue all permissible wild animals, while in order to hunt deer, the hunter must also have a permit, and OAGs 71-142 and 72-774, insofar as they have become inconsistent with subsequent statutory amendment regarding exemptions for hunters, are hereby withdrawn. OAG 90-114 .

The exception in former subsection (8) of this section cannot be applied to one declared totally and permanently disabled under the Federal Railroad Retirement System. OAG 91-142 .

The legislative intent behind former subsection (8) of this section, as well as its effect, is to exempt from the otherwise required sport hunting and sport fishing licenses those persons who are either: 1) declared to be totally and permanently disabled by the state Workers’ Compensation Board; or 2) declared to be disabled by the Social Security Administration. OAG 91-169 .

Research References and Practice Aids

Cross-References.

Pay lakes, KRS 150.660 .

Kentucky Law Journal.

Mann, Draffen v. Black — The State’s Power to Regulate Fishing in Private Ponds, 36 Ky. L.J. 225 (1948).

150.172. Possession and use of firearm for self-defense and defense of others while hunting or trapping — Exceptions — Administrative regulations.

  1. Any person who is not prohibited by state or federal law from possessing a firearm may carry a firearm and ammunition for that firearm for purposes of self-defense and defense of others while hunting, fishing, trapping, or engaging in any other activity not constituting a crime under KRS Chapter 218A or Chapters 500 to 534, and may do so on any public lands under the control of the department and on any private land under the control of the department, unless the owner of the private land has posted notice that concealed deadly weapons are not allowed in a building where they may be prohibited pursuant to KRS 237.110 or 237.115.
    1. A person may use a firearm, if he or she is not prohibited by state or federal law from possessing a firearm, or may use any other deadly weapon, at any time and during any season to: (2) (a) A person may use a firearm, if he or she is not prohibited by state or federal law from possessing a firearm, or may use any other deadly weapon, at any time and during any season to:
      1. Kill or attempt to kill an animal, whether protected or unprotected, in self-defense or defense of another person; or
      2. Kill or attempt to kill an injured animal for humane purposes; and

        in either event, reports the kill or attempted kill to a conservation officer before midnight of the same day as the kill or attempted kill.

    2. An investigation by the department shall be authorized to substantiate and provide evidence on whether the kill or attempted kill of the animal is in violation of paragraph (a) of this subsection or if the animal presents a threat to public health and safety. If no violation is shown to exist, and if there is no threat to public health and safety, then the animal or parts thereof shall:
      1. Remain the property and in the possession of the person taking the animal; or
      2. If the animal or parts thereof were surrendered to the department, be immediately returned to the person.
    3. An arrest shall not be made, except upon a warrant issued by a judge of a court of competent jurisdiction, and a citation shall not be issued by a peace officer if an animal is killed under circumstances described in paragraph (a) of this subsection.
    4. A citation may be issued by a peace officer who witnesses the killing of an animal in violation of a statute or federal regulation under circumstances different from those described in paragraph (a) of this subsection.
    5. An arrest warrant or a summons may be issued by a judge of a court of competent jurisdiction, upon application of the appropriate county attorney, if the court believes that there is sufficient cause to doubt the claim that the animal was killed under circumstances described in paragraph (a) of this subsection.
  2. In cases where an animal is killed and there is a claim that the animal was killed under circumstances described in paragraph (a) of subsection (2) of this section, the department shall provide competent evidence as to how the animal was killed and the circumstances surrounding the event.
  3. The department shall not promulgate administrative regulations restricting any right provided by this section or the spirit thereof.
  4. This section shall not apply to the killing, wounding, or other prohibited act relating to specific wildlife which are protected by the federal Endangered Species Act, 16 U.S.C. secs. 1531 to 1544; federal Migratory Bird Treaty Act, 16 U.S.C. secs. 703 to 712; or federal Bald and Golden Eagle Protection Act, 16 U.S.C. secs. 668 to 668d.
  5. The principles contained in KRS Chapter 503 relating to the use of force and deadly force against human beings shall apply to acts where wildlife is involved.

History. Enact. Acts 2010, ch. 158, § 3, effective July 15, 2010; 2019 ch. 115, § 4, effective June 27, 2019.

150.175. Kinds of licenses and tags — Multiyear licenses or permits.

The kinds of licenses and tags authorized by this chapter, and the acts authorized to be performed under the licenses and tags, subject to the other provisions of this chapter and subject to administrative regulations promulgated under this chapter, shall be as follows:

  1. Statewide resident sport fishing license, which authorizes the holder to take fishes by angling, or take crayfish by a minnow seine, or by hand, to take minnows by the use of a minnow seine, minnow trap, or dip net, or to take fishes by grabbing, gigging, snagging, snaring, jugging, and bow and arrow, and to take frogs and turtles from any waters in any county of this state open for such purposes and subject to the limitations in this chapter and additional limitations that the department may from time to time prescribe. This license shall not authorize the holder to sell fish;
  2. A short-term sport fishing license, which authorizes the holder to perform all acts authorized by a statewide sport fishing license and subject to the same limitations or prescribed administrative regulations. This license shall not authorize the holder to sell fish;
  3. A resident commercial fishing license and a nonresident commercial fishing license, which authorize a holder to perform any act authorized by a sport fishing license and to take rough fishes from the waters of the state by the use of commercial fishing gear as prescribed by administrative regulation. The license shall also authorize the holder to sell rough fishes, other than those protected by administrative regulation;
  4. A commercial fishing gear tag, which shall be attached to each piece of commercial fishing gear including hoop nets, slat traps, trotline, wing nets, and to each one hundred (100) feet of linear gear or portion thereof in use, including commercial seines, gill nets, or trammel nets. Commercial gear tags may be issued only to a person holding a resident or nonresident commercial fishing license;
  5. Live fish and bait dealer’s licenses, resident and nonresident, which authorize the holder to sell bait and live fish as may be prescribed by administrative regulation;
  6. Musseling licenses, resident and nonresident, which authorize the holder to take mussels for commercial purposes as may be prescribed by administrative regulation;
  7. A statewide resident hunting license, which authorizes the holder to take or pursue wild animals, wild birds, frogs, and turtles with gun, bow and arrow, dog, or falcon, or to participate in a fox-hunting party engaged in the hunting or pursuing of foxes with dogs for sport, according to the provisions of the laws and administrative regulations of the department;
  8. A junior statewide hunting license, which may be issued to a person before he or she has reached his or her sixteenth birthday, and which authorizes the holder to exercise all the privileges authorized by a statewide hunting license. No junior hunting license shall be issued without the written permission of parent, guardian, or person having custody of the person under sixteen (16) years of age;
  9. Trapping licenses, resident and nonresident, which authorize the holder to take wild animals by trapping upon his or her own lands or upon the lands of another person, if the holder of the license has first obtained oral or written consent as provided in KRS 150.092 and administrative regulation;
  10. A taxidermist license, which authorizes the holder to engage in the act of preparing, stuffing, and mounting the skins of wildlife;
  11. A commercial guide’s license, which authorizes the holder to guide hunting and fishing parties according to the provisions of the laws and administrative regulations of the department;
  12. Fur buyer’s licenses, resident and nonresident, which authorize the holder to buy raw furs from licensed trappers and hunters and to sell raw furs so purchased. Applicants for the license shall state the number of premises to be used and shall display at each a copy of the license as furnished by the department, except that the commissioner may limit the number of copies furnished and may revoke the license for violation;
  13. A fur processor’s license, which may be issued only to a resident, a partnership, firm, or corporation of this state and which authorizes the holder to buy raw furs when in legal possession for processing, manufacture, or retention in cold storage or for resale;
  14. A nonresident sport fishing license, which authorizes the holder to perform any act authorized by a resident statewide sport fishing license. This license shall not authorize the holder to sell fish;
  15. A nonresident annual hunting license, which authorizes the holder to perform any act authorized by a resident statewide hunting license;
  16. Shoot-to-retrieve field trial permits, four (4) day and single day, which authorize a permit holder to conduct a shoot-to-retrieve field trial on private or government-owned lands. With a four (4) day permit, all participants, whether residents or nonresidents, shall not be required to possess any other license to participate in the permitted field trial, and the permit shall expire four (4) days after the date on which the field trial began. With the single day permit, the permit is valid for one (1) day and all participants shall have a valid resident or nonresident annual Kentucky hunting license. A permit is not required to conduct a shoot-to-retrieve field trial on a licensed shooting preserve; however, all participants that take or attempt to take game shall have in their possession a resident or nonresident annual Kentucky hunting license;
  17. Game permits and junior game permits, which, in combination with a valid statewide hunting license or a valid junior statewide hunting license, authorize the holder to take or pursue the specified game species in any designated open area of this state, during the open season and according to the provisions of the laws and administrative regulations governing the hunting;
  18. A combination hunting and fishing license, which authorizes only resident holders to perform all acts valid under either a sport fishing or hunting license;
  19. A trout permit, which in combination with a valid statewide fishing license, authorizes the holder to take trout by angling or as may be prescribed by administrative regulation;
  20. A commercial waterfowl permit, which authorizes the holder to establish and operate a commercial waterfowl hunting preserve;
  21. A short-term hunting license, which authorizes the holder to perform all acts authorized by a statewide hunting license according to the provisions of the laws and administrative regulations of the department;
  22. A joint statewide resident sport fishing license issued to a husband and wife which authorizes them to take fish as provided in subsection (1) of this section. The license fee for this joint license shall be ten percent (10%) less than the license fee set by the commission for two (2) statewide resident sport fishing licenses;
  23. A Kentucky migratory bird permit, which in combination with a valid statewide hunting license and compliance with applicable federal law, authorizes the holder to take or pursue waterfowl and migratory shore or upland game birds;
  24. A pay lake license which authorizes the holder to operate privately owned impounded waters for fishing purposes for which a fee is charged;
  25. A senior combination hunting and fishing license, which authorizes the holder to perform all acts valid under a sport fishing license, a sport hunting license, or a state permit to take deer, turkey, trout, waterfowl, or migratory shore or upland game birds, and which shall be available to a Kentucky resident who is sixty-five (65) years of age or older.

    The senior combination license shall not be valid unless the holder carries proof of residency and proof of age , as the department may require by administrative regulation, on his or her person while performing an act authorized by the license;

  26. A senior lifetime combination hunting and fishing license, which remains valid until the death of the holder and authorizes the holder to perform all acts valid under a sport fishing license, a sport hunting license, and a state permit to take deer, turkey, trout, waterfowl, and migratory shore and upland game birds, and which shall be available to a Kentucky resident who is sixty-five (65) years of age or older;
  27. A disabled combination hunting and fishing license, which authorizes the holder to perform all acts valid under a sport fishing license, a sport hunting license, and a state permit to take deer, turkey, trout, waterfowl, and migratory shore and upland game birds, and which shall be available to a Kentucky resident who is:
    1. An American veteran at least fifty percent (50%) disabled as a result of a service-connected disability; or
    2. Declared permanently and totally disabled by the federal Social Security Administration, the United States Office of Personnel Management, the Kentucky Teachers’ Retirement System, the Department of Workers’ Claims or its equivalent from another state, or the United States Railroad Retirement Board.

      The disabled combination license shall not be valid unless the holder carries proof of residency and proof of disability, as the department may require by administrative regulation, on his or her person while performing an act authorized by the license;

  28. A sportsman’s license for residents that includes an annual hunting and fishing license and such permits as allowed by administrative regulations promulgated by the department; and
  29. A special license for residents and nonresidents for the purpose of hunting on licensed shooting areas. This license shall be valid only for the shooting areas for which it was issued and shall remain in effect for one (1) year. If the hunter holds either a nonresident or resident statewide hunting license for the current year, the special license shall not be required.

The department may offer multiyear licenses or permits for any of the annual licenses or permits authorized in subsections (1), (7), (9), (14), (15), (17), (18), (19), (23), and (28) of this section. A multiyear license or permit shall authorize the holder to perform all acts authorized by the same license or permit if purchased annually and shall be issued in accordance with the provisions of this chapter and the administrative regulations promulgated hereunder. Any multiyear licenses or permits offered by the department relating to the annual licenses or permits authorized in subsections (1), (7), (9), (14), (15), (17), (18), (19), (23), and (28) of this section shall be implemented by administrative regulation and may be discontinued at any time.

History. Enact. Acts 1946, ch. 84, § 3; 1948, ch. 76, § 1; 1948, ch. 77, § 3; 1948, ch. 78, § 8; 1952, ch. 200, § 25; 1956, ch. 115, § 11; 1958, ch. 166, § 1; 1968, ch. 38, § 8; 1972, ch. 273, § 3; 1978, ch. 178, § 4, effective June 17, 1978; 1978, ch. 384, § 34, effective June 17, 1978; 1980, ch. 351, § 1, effective July 15, 1980; 1984, ch. 111, § 82, effective July 13, 1984; 1984, ch. 220, § 1, effective July 13, 1984; 1988, ch. 365, § 3, effective July 15, 1988; 1990, ch. 474, § 3, effective July 13, 1990; 1992, ch. 353, § 2, effective July 14, 1992; 1994, ch. 239, § 4, effective July 15, 1994; 1996, ch. 268, § 2, effective July 15, 1996; 1998, ch. 274, § 2, effective March 1, 1999; 2000, ch. 35, § 3, effective July 14, 2000; 2000, ch. 459, § 1, effective July 14, 2000; 2006, ch. 212, § 1, effective July 12, 2006; 2008, ch. 42, § 2, effective July 15, 2008; 2009, ch. 20, § 2, effective June 25, 2009; 2010, ch. 24, § 175, effective July 15, 2010; 2013, ch. 50, § 1, effective June 25, 2013.

Legislative Research Commission Note.

(10/6/2005). Under the authority of KRS 7.136(1), the Reviser of Statutes has changed the internal numbering system in this statute, inserting subsection numbers [(1), (2), etc.] in place of paragraph designations [(a), (b), etc.] and deleting the subsection number at the beginning of the statute. The words in the text were not changed.

Opinions of Attorney General.

There is no provision permitting a child under 16 to hunt without a license but he may obtain a junior hunting license pursuant to subsection (12) (now subsection (8)) of this section. OAG 62-1053 .

A person possessing a resident live bait dealer’s license is not required to have separate licenses of such nature issued to him for each motor vehicle which he owns or operates in connection with the transportation of minnows. OAG 63-193 .

A person engaged in hunting red fox with dogs for sport and not to kill is required to have the hunting license provided for by subsection (11) (now subsection (7)) of this section. OAG 63-603 .

KRS 150.370(2) does not provide an exception to the requirement of license in order to engage in hunting foxes with dogs. OAG 63-603 .

A license is required of each person engaging in hunting red fox with dogs for sport and not to kill even though no gun is carried and the fox is not harmed. OAG 63-603 .

A resident of Kentucky who is 65 years of age or older may, without a statewide hunting license, engage in hunting deer, but such person must obtain a deer hunting permit required by subsection (21) (see now game permit under subsection (17)) of this section. OAG 64-15 .

A person who procures a junior statewide hunting license under subsection (12) (now subsection (8)) of this section shortly before reaching his sixteenth birthday may hunt under such license after he becomes sixteen and until the license expires at the end of the calendar year for which it was issued. OAG 65-861 .

A holder of a commercial fishing license under subsection (3) of this section has a limited right to sell his production without further permission from the division of fisheries and the extent of this right is defined in subsection (3) of this section. OAG 72-775 .

A holder of a commercial fishing license under subsection (3) of this section need not have an additional transportation permit if he is in legal possession of rough fishes, other than those protected by regulation. OAG 72-775 .

Because Illinois limits the number of deer hunting permits issued to nonresident hunters, Kentucky should not issue permits to Illinois hunters. OAG 80-600 .

Subdivisions (1)(q), (s), and (w) (now (17), (19), and (20)), by their plain meaning alone would render untenable any position that would hold the taking of trout, waterfowl or big game as activities included within those allowed by the holders of only the sport fishing and sport hunting licenses. OAG 90-114 .

150.176. Licenses to nonresidents conditioned on reciprocity. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 84, § 4; 1952, ch. 200, § 26) was repealed by Acts 1986, ch. 265, § 27, effective July 15, 1986.

150.177. Special permit for incorporated nonprofit wildlife conservation organization.

In addition to the game permits issued under KRS 150.175 , the commission may issue a special permit to an incorporated nonprofit wildlife conservation organization. The commission shall promulgate administrative regulations governing the number of special permits to be issued per year per species for which a game permit is required. An organization that receives a special permit issued under this section may sell and transfer the permit if all proceeds of the sale are used in Kentucky for wildlife management.

History. Enact. Acts 2000, ch. 35, § 1, effective July 14, 2000; 2004, ch. 85, § 2, effective July 13, 2004; 2006, ch. 127, § 3, effective July 12, 2006; 2007, ch. 110, § 2, effective June 26, 2007.

150.178. Cooperator permits — Administrative regulations.

In addition to the game permits issued under KRS 150.175 , the commission may promulgate administrative regulations allowing the issuance of cooperator permits to individuals or entities who enroll land with the department for public hunting and meet all applicable regulatory requirements. An individual or entity that receives a cooperator permit issued under this section may sell or transfer the permit.

History. Enact. Acts 2007, ch. 110, § 1, effective June 26, 2007.

Legislative Research Commission Note.

(6/26/2007). The words “cooperative permit” in the second sentence of this section have been changed in codification by the Reviser of Statutes to “cooperator permit” under the authority of KRS 7.136(1)(h). 2007 Ky. Acts ch. 110, sec. 2, amended KRS 150.177 to delete references to administrative regulations regarding “cooperator permits,” and 2007 Ky. Acts ch. 110, sec. 1, created this section to include language similar to the deleted language. The use of “cooperative” instead of “cooperator” was a manifest clerical or typographical error.

150.179. Waiver of license requirement and discounting of licenses or permits for event supporting a recreational activity — Free-fishing weekend.

  1. In this section, “recreational activity” means hunting, fishing, or trapping for sport.
  2. For an event or program supporting a recreational activity, the commission may waive the requirement that participants hold licenses, or may discount licenses or permits, required under this chapter if the commission finds that:
    1. The special event or program will provide education in or appreciation of the recreational activity; and
    2. The waiver of the license requirement will not result in a substantial loss of revenue to the department.
  3. The department shall, for one (1) weekend each year, suspend enforcement of the requirement that persons fishing in the waters of the Commonwealth buy and hold a license.

History. Enact. Acts 2000, ch. 35, § 2, effective July 14, 2000; 2009, ch. 20, § 3, effective June 25, 2009.

150.180. Buying, selling, or transporting protected wildlife, mussels and fishes, raw fur, or processed wildlife.

  1. Except as otherwise provided for in this chapter, and subject to regulations adopted under this chapter, no person, for himself or as the agent or employee of another shall buy, or sell, or attempt to buy, or sell, barter, exchange, or trade, or have in possession for the purpose of selling, bartering, or trading any protected wildlife or part thereof, raw fur or processed wildlife, no matter where or when caught or killed, whether caught or killed in this state or in any other state or other country.
  2. Mussels and fishes, other than sport fishes as designated by departmental regulations, and all fishes, regardless of species, raised by licensed propagation permittees may be bought, sold, and transported, if in legal possession.
  3. Raw furs, if in legal possession, may be sold, transported, or shipped, by a licensed trapper or licensed hunter to a licensed fur buyer (resident or nonresident), and by a licensed fur buyer to a licensed fur processor or to another fur buyer if in legal possession. A fur processor may hold raw furs or sell to another licensed fur processor at any time.
  4. Subject to regulations adopted under this chapter, a person who has been issued a license under this chapter and who has the license on his person may transport anywhere as a part of his personal baggage any protected wildlife legally taken by him under such license, not in excess of the number that the law or regulation permits him to have in possession at any one (1) time.
  5. A person who has legally taken any protected wildlife in another state and who has in his possession the license which authorizes such taking may, if the same be dead, transport the same in this state, as part of his personal baggage at any time during the open season for the particular species in the state in which taken or within ten (10) days after the close of such season. Any person may ship dead game or dead fish so taken subject to the provisions of the laws of the state in which the same was taken and the laws and regulations of the United States relating thereto.
  6. No person shall import or transport into the State of Kentucky or receive shipment in the state from without the state, any live fish or wildlife without first procuring from the department a written fish transportation permit or wildlife transportation permit. If it is determined upon inspection that such fish or wildlife would not constitute a menace to the state and are free from disease and other undesirable physical characteristics, the commissioner shall issue a permit for a fee to be determined by the Fish and Wildlife Commission by administrative regulation, pursuant to KRS Chapter 13A. A fish transportation permit shall be valid for one (1) year from the date of issuance, and a wildlife transportation permit shall be valid for specific dates as indicated on the permit.
  7. No person may at any time stock any species of fish secured from any source into the public waters of the Commonwealth without first securing a permit from the commissioner.
  8. This section shall not in any way interfere with the transportation of any fish or wildlife by authorized personnel of the department.
  9. Federal and state regulations shall govern the transportation of all migratory wild birds.

History. 1893d-11, 1954d-14: amend. Acts 1942, ch. 68, § 18; 1944, ch. 124, § 3; 1946, ch. 84, § 5; 1948, ch. 77, § 4; 1948, ch. 78, § 9; 1952, ch. 200, § 27; 1956, ch. 115, § 12; 1968, ch. 38, § 9; 1978, ch. 178, § 5, effective June 17, 1978; 1988, ch. 365, § 4, effective July 15, 1988; 1992, ch. 353, § 3, effective July 14, 1992; 2006, ch. 127, § 4, effective July 12, 2006.

NOTES TO DECISIONS

Cited:

United States v. Kepler, 531 F.2d 796, 1976 U.S. App. LEXIS 12343 (6th Cir. 1976).

Opinions of Attorney General.

A fish transportation permit is not required in order to transport minnows by truck. OAG 63-193 .

If a farmer is stocking game to be shot for a fee he must obtain the permit provided by KRS 150.240(2) and Regulation G-28. OAG 64-162 .

A farmer who charges for the privilege of hunting on his private land is not operating a shooting preserve or commercial shooting area and need not have a permit for same where he does not put in or release pen-reared birds to be killed but merely permits persons to hunt whatever game be found in the natural state on his land. OAG 64-162 .

Fish that are subject to year-round open season and are unprotected during that season, remain, in essence, unprotected throughout the year and this section, which pertains only to protected wildlife, is not applicable to fishing of these species. OAG 78-442 .

Tournament fishing does not constitute “buying and selling, or attempting to buy or sell, barter, exchange, or trade or have in possession for the purpose of selling, bartering, or trading.” OAG 78-442 .

150.183. Importing, transporting or possessing endangered species of wildlife.

  1. No person shall import, transport, possess for resale or sell any endangered species of wildlife, the hides, skins, or other parts thereof, or any article made in whole or in part from the skin, hide, or other parts of any species of wildlife designated as an endangered species by regulation promulgated by the Department of Fish and Wildlife Resources except as provided in subsection (3) of this section. As used in this section, the term “endangered species” means any species of wildlife seriously threatened with worldwide extinction or in danger of being extirpated from the Commonwealth of Kentucky.
  2. The regulation or regulations promulgated pursuant to subsection (1) of this section shall include, but not be limited to, all species of wildlife designated as endangered species by the United States Secretary of the Interior on January 1, 1973.
  3. The Department of Fish and Wildlife Resources may permit, under such terms and conditions as it may prescribe, the importation, transportation, possession, or sale of any species of wildlife otherwise prohibited pursuant to this section for zoological, educational, or scientific purposes, and for the propagation of such wildlife in captivity for preservation purposes except as otherwise prohibited by law.

History. Enact. Acts 1972, ch. 40, § 1(1) to (3), effective January 1, 1973; 1978, ch. 384, § 35, effective June 17, 1978; 1986, ch. 265, § 8, effective July 15, 1986.

Opinions of Attorney General.

Since the name Yacare is the common name of Caiman and Yacare in the United States is on the list of endangered foreign fish and wildlife in part 17 of title 50 of the Code of Federal Regulations, appendix A (volume 50, page 60), and this animal is found in Bolivia, Argentina, Peru and Brazil, the sale of articles containing any part of the skin of Caiman may not take place in Kentucky. OAG 73-245 .

The authority of the Department of Fish and Wildlife Resources to promulgate regulations designating endangered species granted by this section clearly indicates an intent to include endangered wildlife within the department’s jurisdiction. OAG 84-214 .

150.185. Rabbits not to be bought or sold. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 77, §§ 1, 2; 1956, ch. 115, § 13) was repealed by Acts 1968, ch. 38, § 30.

150.186. Release of hog or pig into the wild prohibited — Importing, possessing, or transporting wild or feral pig or boar prohibited — Accidental escape of livestock exempted.

  1. No person shall release a hog or pig from the family Suidae into the wild.
  2. No person shall import, possess, or transport in Kentucky any wild or feral pig, Eurasian or Russian boar, or any hybrid of these, whether born in the wild or captivity.
  3. This section shall not apply to the accidental escape of animals of the porcine species raised as livestock as defined in KRS 246.010 .

History. Enact. Acts 2012, ch. 82, § 1, effective July 12, 2012.

150.190. Commercial guide’s license.

  1. Any applicant for a commercial guide’s license shall be required to present proof to the satisfaction of the commissioner, in accordance with regulations the commissioner may prescribe with the approval of the commission, that he is qualified to act as a commercial guide.
  2. Any applicant for a fur processor’s license shall be required to present proof to the satisfaction of the commissioner, in accordance with regulations the commissioner may prescribe with the approval of the commission, that he has sufficient equipment and facilities to engage in the business of processing, manufacture, and storage of raw furs.
  3. A commercial guide’s license shall not be required of residents or nonresidents who are participating in field trials, training exercises, or other competitions where no game is harvested.

History. 1954d-15: amend. Acts 1942, ch. 68, § 19; 1946, ch. 84, § 6; 1952, ch. 200, § 28; 1956, ch. 115, § 14; 1958, ch. 166, § 2; 1968, ch. 38, § 10; 1972, ch. 273, § 4; 1978, ch. 178, § 6, effective June 17, 1978; 1978, ch. 384, § 36, effective June 17, 1978; 1986, ch. 265, § 9, effective July 15, 1986; 1990, ch. 474, § 4, effective July 13, 1990; 1994, ch. 239, § 5, effective July 15, 1994; 2002, ch. 173, § 2, effective July 15, 2002.

Opinions of Attorney General.

A county clerk is liable for payment to the State Treasurer of money constituting receipts from the sale of hunting and fishing licenses where he permitted a deputy to keep the licenses at a business establishment to be sold there, and the receipts from such sales were stolen from the deputy’s place of business. OAG 63-17 .

The licenses to be sold by the county clerk must be sold only by the clerk or his lawful deputies and only in the county in which the clerk was elected. OAG 75-343 ; OAG 78-739 .

A county clerk was individually liable to the State Treasurer for money derived from the sale of hunting and fishing licenses by a grocery store to which the clerk had assigned licenses, where the store sold the licenses but because of bankruptcy failed to pay over the license money to the clerk. OAG 76-41 .

An individual may inspect the records of the Department of Fish and Wildlife Resources in order to compile a list of licensed trappers, since the records of the department are opened to inspection by subsection (2) of this section and trapper’s licenses are not made confidential by any statute. OAG 81-362 .

150.195. Design, issuance, and distribution of licenses and permits — Administrative regulations.

  1. The department shall by administrative regulation provide for the control of the design, issuance, distribution, and other matters relating to all licenses and permits issued by the department.
  2. The department shall name each county clerk not granted an exemption from selling licenses or permits by the commissioner as an agent for the sale of licenses and permits or other items. The county clerk shall not appoint any other person or organization, other than a paid deputy clerk, to sell licenses and permits. A county clerk may, at any time during his term of office, apply in writing to the commissioner for an exemption from the requirement that he sell licenses and permits or other items for the department. The commissioner shall then grant the exemption until the clerk requests otherwise in writing.
  3. The department shall sell its own licenses or permits and may name any other person or organization meeting the requirements specified by statute and by the department by administrative regulation as an agent for the sale of specified licenses and permits or other items for the department.
  4. The department shall, by administrative regulation, determine:
    1. The number and distribution of agents in a county;
    2. Which licenses and permits or other items shall be sold by the department and agents of the department;
    3. The requirements for persons or organizations, other than county clerks, to sell licenses and permits or other items issued by the department;
    4. The fees allowed to be retained by agents of the department;
    5. Matters relating to the remittance of license and permit fees and proceeds of the sale of other items, procedures for accountability for licenses and permits, and accountability for license and permit fees and proceeds of the sales of other items;
    6. The license and permit term, and the date of expiration of licenses and permits; and
    7. The manner in which the licenses, permits, and other items issued by the department are designed, issued, and sold, and details relating to the application for and sale of licenses, permits, and other items, the reporting of license, permit, and other sales, and other matters deemed necessary by the department for the proper administration and operation of a program relating to the design, issuance, and sale of licenses, permits, and other items issued by the department.
  5. No person shall make a false statement or provide any false information when applying for a license or permit.
  6. Unless permitted to do so by administrative regulation, no person shall alter or modify a license or permit in any manner.
  7. No employee of the department, no agent designated by the department, or no employee of an agent designated by the commissioner shall knowingly make a false entry upon a license or permit, license or permit record, or an application or report required by this chapter or by an administrative regulation issued thereunder.
  8. The department and each agent designated by the commissioner shall keep a correct and complete record of all licenses and permits applied for or issued, and all other records required to be kept by statute or by the department by administrative regulation. License and permit records shall be public records and shall be open to public inspection in the manner provided by KRS 61.870 to 61.884 .
  9. No fee for the issuance of a license or permit issued by or on behalf of the department shall be charged or collected by the department or agent of the department other than the amount specified by administrative regulation. Tie-in sales required to obtain a license or permit are prohibited.
  10. The department shall by administrative regulation develop a procedure for suspending or revoking the agent status of a person or organization violating any provision of this chapter, or the administrative regulations promulgated thereunder, relating to the sale, reporting of, or financial accountability for the sale of licenses or permits which the agent is authorized to sell on behalf of the department.
    1. The initial determination to suspend or revoke an agent’s status shall be made by the commissioner, or by his designee; and the agent shall be informed of the decision in writing.
    2. A decision of the commissioner or his designee may be appealed to the commission in writing and received by the department within ten (10) days of receipt of the commissioner’s notice. Hearings of appeals shall be conducted in accordance with KRS Chapter 13B.
    3. Appeals from a final order of the commission shall be to the Franklin Circuit Court in accordance with KRS Chapter 13B.
  11. Penalties which the commissioner, his designee in writing, or the commission may assess are:
    1. A suspension of the agent’s status for not less than one (1) nor more than five (5) years; or
    2. Revocation of the agent’s status permanently, if a natural person, or for not less than ten (10) years to permanently, if an organization.
  12. Suspension periods shall not be waived, probated, or delayed by the commissioner, his designee in writing, or the commission. The commission or the Franklin Circuit Court, as appropriate, may reduce a suspension period ordered by the commissioner or his designee in writing, but to not less than one (1) year, and may reduce a revocation to a suspension.
  13. The department may experiment with computerized, electronic, or other improved forms of license and permit sales by the department and its agents. Experiments may be conducted on a regional or other basis. The commission shall implement any improved method of license and permit sales finally selected, on a statewide basis by administrative regulation.

History. Enact. Acts 1994, ch. 239, § 1, effective July 15, 1994; 1996, ch. 83, § 2, effective July 15, 1996; 1996, ch. 318, § 40, effective July 15, 1996.

Compiler's Notes.

The section appears to incorporate a correction from the Reviser of Statutes in (4)(f).

Legislative Research Commission Note.

(7/15/96). This section was amended by 1996 Ky. Acts chs. 83 and 318 which are in conflict. Under KRS 446.250 , Acts ch. 318, which was last enacted by the General Assembly, prevails.

150.200. Licenses and forms furnished to county clerk by commissioner. [Repealed.]

Compiler’s Notes.

This section (1954d-18: amend. Acts 1942, ch. 68, § 20; 1952, ch. 200, § 29; 1984, ch. 111, § 83, effective July 13, 1984; 1988, ch. 365, § 5, effective July 15, 1988) was repealed by Acts 1994, ch. 239, § 11, effective July 15, 1994.

150.210. Printing of licenses and tags — Expense of. [Repealed.]

Compiler’s Notes.

This section (1954d-19: amend. Acts 1942, ch. 68, § 21; 1952, ch. 200, § 30; 1968, ch. 152, § 113) was repealed by Acts 1994, ch. 239, § 11, effective July 15, 1994.

150.220. License fees. [Repealed.]

Compiler’s Notes.

This section (1954d-16, 1954d-28: amend. Acts 1942, ch. 68, § 22) was repealed by Acts 1958, ch. 166, §§ 31/2, 5.

150.221. Duplicate license or tag when original lost or destroyed. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1952, ch. 101, § 1) was repealed by Acts 1956, ch. 115, § 24.

150.225. Prescription of license, permit, and registration fees — Fiduciary capacity of person who collects, receives, possesses, or manages fees.

  1. The Department of Fish and Wildlife Resources shall, by its commission and through administrative regulation promulgated in accordance with KRS Chapter 13A, prescribe reasonable fees for the licenses, permits, and registrations authorized by KRS Chapters 150 and 235.
  2. A person who collects, receives, possesses, or manages fees for the department’s licenses and permits acts in a fiduciary capacity for the Commonwealth, and all moneys collected from the sale of licenses and permits, except agent fees for selling licenses or permits, shall be held in trust for the department.

History. Enact. Acts 1958, ch. 166, § 3, effective June 19, 1958; 1988, ch. 365, § 6, effective July 15, 1988; 1998, ch. 275, § 3, effective July 15, 1998.

150.230. Fees for issuance of licenses and tags. [Repealed.]

Compiler’s Notes.

This section (1954d-17: amend. Acts 1942, ch. 68, § 23; 1946, ch. 84, § 8; 1948, ch. 78, § 12; 1952, ch. 200, § 32; 1978, ch. 84, § 4, effective June 17, 1978; 1978, ch. 178, § 7, effective June 17, 1978; 1988, ch. 365, § 7, effective July 15, 1988; 1990, ch. 474, § 5, effective July 13, 1990) was repealed by Acts 1994, ch. 239, § 11, effective July 15, 1994.

150.235. License or permit required — To be carried on person — Nonresidents — Effect of revocation or suspension of license or permit.

  1. No person shall perform any act authorized to be performed by any of the various licenses or permits provided for in this chapter without first procuring the type of license which authorizes the performance of the act and unless at the time of the performance of the act he has the license on his person, except that in the case of a fur processor it shall be sufficient if the license is posted in a conspicuous place upon the licensed premises.
  2. Wherever in this chapter reference is made to the “holder” of a license, or permit, it means the person in whose name the license or permit was issued. No person to whom a license or permit has been issued under this chapter may authorize or permit any other person to carry his license or permit. No person shall present the license of another person for inspection.
  3. No nonresident shall perform any act under this chapter without first procuring the proper nonresident license or permit.
  4. No person who has had his privilege to perform an act authorized under this chapter revoked or suspended shall possess the kind of license or permit that would otherwise permit the act for the period of the suspension.

History. Enact. Acts 1946, ch. 84, § 9; 1948, ch. 77, § 6; 1952, ch. 200, § 33; 1968, ch. 38, § 11; 1978, ch. 178, § 8, effective June 17, 1978; 1988, ch. 365, § 8, effective July 15, 1988; 1994, ch. 239, § 6, effective July 15, 1994.

Opinions of Attorney General.

A person possessing a resident live bait dealer’s license is not required to have separate licenses of such nature issued to him for each motor vehicle which he owns or operates in connection with the transportation of minnows. OAG 63-193 .

150.236. Effect of revocation or suspension of license by another jurisdiction in United States or Canada.

A person whose privilege to hunt or fish has been suspended or revoked by any jurisdiction within the United States or Canada shall not purchase or possess a license to hunt or fish, nor shall that person perform any act permitted by the license in Kentucky during the period of suspension or revocation.

History. Enact. Acts 1998, ch. 275, § 1, effective July 15, 1998.

150.237. Short term nonresident hunting license. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 81, § 1; 1972, ch. 113, § 1) was repealed by Acts 1990, ch. 474, § 12, effective July 13, 1990.

150.238. Reciprocal agreements with other states relating to violations of hunting and fishing laws — Administrative regulations.

  1. The department may enter into reciprocal agreements with one (1) or more states relating to violations of hunting and fishing laws. Upon entering into such an agreement, the department shall promulgate an administrative regulation adopting the provisions of the agreement and incorporating the entire document by reference.
  2. The department may, pursuant to a reciprocal agreement and administrative regulation authorized by subsection (1) of this section, deny, suspend, revoke, or reinstate:
    1. A hunting, fishing, or trapping license; or
    2. A privilege, in the case of an individual who is license-exempt.

History. Enact. Acts 2006, ch. 94, § 1, effective July 12, 2006.

150.240. Contract for game refuge — Public or commercial shooting areas.

  1. The commissioner, with the approval of the commission, may contract with any landowner of the state, for a specified term of years, to set aside and maintain land as a game refuge. Any such contracts may be recorded in the county clerk’s office of the county in which the land is situated.
  2. The commissioner, with the approval of the commission, may issue permits for public or commercial shooting areas, and shall adopt regulations governing same.

History. 1954d-30: amend. Acts 1942, ch. 68, § 24; 1944, ch. 6, § 5; 1952, ch. 200, § 34; 1978, ch. 384, § 289, effective June 17, 1978.

Opinions of Attorney General.

If a farmer is stocking game to be shot for a fee he must obtain the permit provided by this section and Regulation G-28. OAG 64-162 .

A farmer who charges for the privilege of hunting on his private land is not operating a shooting preserve or commercial shooting area and need not have a permit for same where he does not put in or release pen-reared birds to be killed but merely permits persons to hunt whatever game may be found in the natural state on his land. OAG 64-162 .

150.250. Contract for wildlife preservation or propagation.

The department, with the approval of the secretary of the Finance and Administration Cabinet and the consent of the Governor, may enter into any contract with the United States government, or any department or agency thereof, or with any individual in regard to the preservation, protection and propagation of wildlife which it may deem to the advantage of the state to enter into.

History. 1954d-37: amend. Acts 1942, ch. 68, § 25; 1952, ch. 200, § 35; 1986, ch. 265, § 10, effective July 15, 1986.

Opinions of Attorney General.

The Department of Fish and Wildlife Resources may enter a Full Authorities Endangered Species Cooperative Agreement with the United States Fish and Wildlife Service. OAG 84-214 .

Research References and Practice Aids

Cross-References.

The Natural Resources and Environmental Protection Cabinet may cooperate in establishing game reserves and in propagation of game and fish, KRS 149.030 , 149.040 .

150.255. Wetland or stream compensatory mitigation projects — Mitigation fund — Purposes.

  1. Upon request of any state agency or any other entity, the department may contract with the agency or party to undertake any compensatory mitigation project, including, but not limited to, wetland or stream mitigation.
  2. The department may establish and manage wetland or stream compensatory mitigation banks, the purpose of which shall be to restore, create, or enhance wetlands and streams as compensatory mitigation where a state agency or other party is required to provide compensatory mitigation, and where the use of banked mitigation is approved by the agency requiring mitigation. The department may create the bank in advance of requests for banked mitigation credits.
  3. There is established and created in the State Treasury the “Kentucky Wetland and Stream Mitigation Fund” for the purpose of restoring, creating, enhancing, or preserving the Commonwealth’s wetlands or streams that may be damaged or destroyed due to any project, recovering costs associated with performing these projects, and administering these programs. The fund shall be deemed a trust and agency fund account and made available solely for the purposes and benefits of the Kentucky wetland and stream mitigation projects. The fund may receive state appropriations, gifts, grants, federal funds, revolving funds, and any other funds both public and private. Money deposited in the fund shall be disbursed by the State Treasurer upon the request of the commissioner with the approval of the commission. Any unallocated or unencumbered balance in the fund shall be invested as provided in KRS 42.500(9), and any income earned from the investments, along with the unallocated or unencumbered balance in the fund, shall not lapse.

History. Enact. Acts 2000, ch. 284, § 1, effective July 14, 2000.

150.260. Wildlife restoration in cooperation with federal government.

Kentucky assents to the provisions of acts of Congress which provide that the United States shall aid the states in wildlife restoration projects, and for other purposes, as approved September 2, 1937, and August 9, 1950, as well as other acts related to wildlife. The department shall supervise and/or carry out such programs as may be necessary to the establishment and conduct of cooperative wildlife restoration projects in compliance with said acts and with rules and regulations promulgated thereunder by the Secretary of the Interior or other secretaries dealing with matters related to wildlife. No game and fish funds accruing to the department shall be diverted to any objective other than the purposes as outlined in this chapter and more particularly defined in KRS 150.015 .

History. 1954d-35: amend. Acts 1942, ch. 68, § 26; 1952, ch. 200, § 36; 1968, ch. 38, § 12.

Opinions of Attorney General.

Interest earned on the investment of excess cash in the form of federal moneys received by the Department of Fish and Wildlife Resources should be credited to the game and fish fund to be used to carry out the purposes of KRS Chapter 150 and for no other purpose. OAG 82-457 .

150.265. Cooperation with Federal Government in fish restoration and management projects; no diversion of license fees. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 78, § 13) was repealed by Acts 1952, ch. 200, § 74.

150.270. Consent to acquisition by United States of migratory bird reservations.

  1. Kentucky consents to the acquisition by the United States by purchase, gift, devise or lease of such areas in Kentucky as the United States may deem necessary for the establishment of migratory bird reservations in accordance with the Migratory Bird Conservation Act, approved February 18, 1929 (45 Stat. 1222).
  2. Kentucky reserves complete jurisdiction and authority in and over all such areas not incompatible with the administration, maintenance, protection, and control thereof by the United States under the terms of Acts of Congress. This section shall in no wise deprive the courts of Kentucky of jurisdiction to try and punish all violations of any of the criminal or penal statutes of Kentucky in such areas.

History. 1954d-36: amend. Acts 1942, ch. 68, § 27; 1952, ch. 200, § 37.

Compiler’s Notes.

The Migratory Bird Conservation Act referred to in subsection (1) of this section is compiled as 16 USCS §§ 715 to 715s.

NOTES TO DECISIONS

1.Permitting Livestock to Stray upon Reserve.

Owner of farm adjoining migratory bird reserve created under this section can be enjoined from permitting his livestock to stray upon the reserve. United States v. Travis, 66 F. Supp. 413, 1946 U.S. Dist. LEXIS 2543 (D. Ky. 1946 ).

150.275. Permit to take and transport wildlife for commercial nuisance wildlife control, scientific, or educational purposes — Fees to be set by administrative regulation.

  1. The commissioner may issue to any qualified person a permit to take and transport wildlife at any time for commercial nuisance wildlife control, scientific, or educational purposes; such permits shall be valid at the discretion of the commissioner and shall show upon their face the period of their validity.
  2. The Fish and Wildlife Commission may set fees, by administrative regulation pursuant to KRS Chapter 13A, for the issuance of permits authorized by subsection (1) of this section.

History. Enact. Acts 1946, ch. 84, § 10; 1952, ch. 200, § 38; 1978, ch. 178, § 9, effective June 17, 1978; 1986, ch. 265, § 11, effective July 15, 1986; 1992, ch. 353, § 4, effective July 14, 1992.

NOTES TO DECISIONS

Cited:

Cummings v. Commonwealth, 255 S.W.2d 997, 1953 Ky. LEXIS 696 ( Ky. 1953 ).

150.280. Propagation and holding of protected wildlife — Permits — Revocation for violation of state or federal law.

  1. Except as provided by administrative regulation, a person shall not propagate or hold protected wildlife without obtaining a permit to do so from the department. The department shall promulgate administrative regulations governing all such activity and prescribing permit fees. Any permit issued pursuant to this section may be revoked for a violation by the holder thereof of any of the provisions of this chapter, any administrative regulation of the department, or hunting, fishing, or wildlife laws of the federal government.
  2. The department shall by administrative regulation identify species of wildlife potentially damaging to native ecosystems and shall prohibit the transporting or holding of these wildlife.

History. 1954d-31: amend. Acts 1942, ch. 68, § 28; 1948, ch. 78, § 14; 1952, ch. 200, § 39; 1968, ch. 38, § 13; 1978, ch. 178, § 10, effective June 17, 1978; 1992, ch. 353, § 5, effective July 14, 1992; 1998, ch. 512, § 2, effective July 15, 1998; 2006, ch. 94, § 2, effective July 12, 2006.

NOTES TO DECISIONS

Cited:

Cummings v. Commonwealth, 255 S.W.2d 997, 1953 Ky. LEXIS 696 ( Ky. 1953 ).

Opinions of Attorney General.

A holder of a permit under this section has a limited right to sell his production without further permission from the Division of Fisheries subject to the provisions of KRS 150.290 and 150.485 . OAG 72-775 .

A person holding a permit under this section need not obtain a permit to transport his stock if such transportation is only for purposes of propagation but if he transports for any purpose other than those enumerated in KRS 150.290 , he is required to obtain a permit. OAG 72-775 .

Research References and Practice Aids

Cross-References.

Game enclosure, breaking or entering, KRS 150.690 .

150.290. Sale and transportation of wildlife by breeders.

  1. Any breeder may sell and transport wildlife alive for propagation, and for food purposes, or minnows for bait, during seasons prescribed by the commission. Such wildlife shall be identified either by marking their container or by individual tagging, as the commissioner may prescribe.
  2. No breeder shall sell wildlife procured from other than a licensed propagation farm.

History. 1954d-32, 1954d-33: amend. Acts 1942, ch. 68, § 29; 1952, ch. 200, § 40; 1978, ch. 178, § 11, effective June 17, 1978; 1986, ch. 265, § 12, effective July 15, 1986.

150.300. Poaching — Destroying or defacing signs and notices.

  1. No person shall, without first securing the permission of the commissioner, enter upon the premises of a propagation farm, game farm or game refuge, or fish hatchery and take wildlife; or, without the consent of the property owner, enter upon any pond and take wildlife or foul the waters of any pond or farm with a substance injurious to life or growth of wildlife, or break or destroy any dam, reservoir, or embankment or divert the waters or otherwise willfully damage the farm or pond.
  2. It is unlawful for any person to mar, deface, destroy or in any wise damage, or attempt to mar, deface, destroy or damage any sign or posted notice upon any game farm, game or wildlife refuge or fish hatchery in the state.

History. 1954d-34: amend. Acts 1942, ch. 68, § 30; 1952, ch. 200, § 41; 1986, ch. 265, § 13, effective July 15, 1986; 2000, ch. 35, § 4, effective July 14, 2000.

150.305. Possession of wildlife or raw fur out of season — Inspection of commercial frozen food lockers.

  1. Subject to regulations adopted under this chapter and except as otherwise provided in this section, no person shall have in his possession any wildlife protected by this chapter, or any raw fur, except during the open season for the particular species, unless such person be the holder of a valid permit issued pursuant to the provisions of KRS 150.275 or 150.280 .
  2. Any person who has legally taken any wildlife may possess same in cold storage. If possessed in a commercial locker plant, the name of the taker, his license number, the date of taking, and the number and species of wildlife must be marked on the package in which the same is stored. Legally imported wildlife from other states or countries may be similarly held.
  3. Federal regulations shall govern the possession of migratory wild birds.
  4. To facilitate the enforcement of subsection (2) of this section, the commissioner, or such agents and employees of the department as may be designated by him, shall have authority to inspect all commercial frozen food lockers within the State of Kentucky at such periods and intervals as the commissioner shall, in the exercise of a reasonable discretion, fix and determine. No search warrant or other legal process shall be required of any properly authorized person as a condition precedent to the making of the inspections herein authorized.

History. Enact. Acts 1946, ch. 84, § 11; 1948, ch. 78, § 15; 1952, ch. 200, § 42; 1968, ch. 38, § 14; 1986, ch. 265, § 14, effective July 15, 1986.

NOTES TO DECISIONS

1.Application.

A person, who does not have a permit to keep wild animals for educational or scientific purposes or as a propagationist, in possession of a raccoon is guilty of violating this section, although the animal was born in captivity and the person had come into possession of the animal prior to the enactment of this section. Cummings v. Commonwealth, 255 S.W.2d 997, 1953 Ky. LEXIS 696 ( Ky. 1953 ).

150.310. Birds to be taken only with bow and arrow or certain type gun; plugging of gun; lights prohibited. [Repealed.]

Compiler’s Notes.

This section (1954d-51, 1954d-52: amend. Acts 1942, ch. 68, § 31; 1944, ch. 124, § 5; 1946, ch. 84, § 12; 1952, ch. 200, § 43) was repealed by Acts 1968, ch. 38, § 30.

150.320. Birds not protected — Nests and eggs.

  1. No person shall take any wild bird except game birds or live raptors for which there is an open season, either under the laws of Kentucky and the regulations of the department or the laws of the United States, except those birds mentioned in subsection (2) of this section.
  2. This chapter does not protect or in any way limit the taking of the starling or the English sparrow, but any persons taking any of them must have a hunting license.
  3. No person shall take, disturb, or destroy the nest or eggs of any wild birds except for raptors as prescribed by regulation.

History. 1954d-53: amend. Acts 1942, ch. 68, § 32; 1948, ch. 78, § 16; 1952, ch. 200, § 44; 1968, ch. 38, § 15; 1978, ch. 178, § 12, effective June 17, 1978; 2006, ch. 127, § 5, effective July 12, 2006.

150.330. Migratory birds — Waterfowl.

  1. No person shall take, pursue, possess, transport, purchase or sell or attempt to do so, any migratory birds, except as authorized by the Migratory Bird Treaty Act (40 Stat. 755) as amended and regulations under it.
  2. No person sixteen (16) years of age or older shall hunt any waterfowl unless, at the time, in addition to the appropriate state hunting license and current migratory bird/waterfowl permit, he has on his person a valid migratory bird hunting stamp of current issue as required by the Migratory Bird Hunting Stamp Act (48 Stat. 451) as amended.

History. 1954d-54: amend. Acts 1942, ch. 68, § 33; 1944, ch. 124, § 6; 1946, ch. 84, § 13; 1948, ch. 78, § 17; 1952, ch. 200, § 45; 1964, ch. 143, § 1; 1968, ch. 38, § 16; 1988, ch. 365, § 9, effective July 15, 1988; 2019 ch. 115, § 5, effective June 27, 2019.

Compiler’s Notes.

The Migratory Bird Treaty Act referred to in subsection (1) and the Migratory Bird Hunting Stamp Act referred to in subsection (2) are compiled as 16 USCS §§ 703-712 and 16 USCS §§ 718a-718k, respectively.

Opinions of Attorney General.

A person who is exempt from the requirement of a statewide hunting license by virtue of being over 65 years of age must nevertheless have a migratory bird stamp. OAG 64-15 .

Migratory birds or waterfowl and wild turkey may not be hunted with slugs. OAG 64-15 .

Research References and Practice Aids

Cross-References.

Cruelty to animals, KRS 525.130 .

Open season for migratory birds regulated by United States Secretary of Agriculture, 40 Stat. 755, 16 USCS § 704.

150.340. Bag and creel limits — Limit on possession — Migratory birds.

  1. No person shall take more wildlife in any one (1) day than the bag or creel limit prescribed for the species by the department.
  2. A person who has hunted two (2) or more days in succession may transport as personal baggage a total of not more than three (3) times the bag limit as set by the regulations for any one (1) day.
  3. Federal and state regulations shall apply to all migratory birds and waterfowl.

History. 1954d-55: amend. Acts 1942, ch. 68, § 34; 1944, ch. 124, § 7; 1946, ch. 84, § 32; 1948, ch. 78, § 18; 1952, ch. 200, § 46; 1960, ch. 125; 1968, ch. 38, § 17; 2019 ch. 115, § 6, effective June 27, 2019.

150.350. Bird dogs not to run at large, when. [Repealed.]

Compiler’s Notes.

This section (1954d-52a to 1954d-52c: amend. Acts 1942, ch. 68, § 35) was repealed by Acts 1944, ch. 124, § 8.

150.355. Ferrets.

  1. No person shall use ferrets in hunting. No person shall keep a ferret which was born in the wild as a pet or for any purpose, unless he has procured a ferret permit from the commissioner. A permit must be obtained within ten (10) days after the person acquires possession of a ferret and one (1) permit shall entitle the holder to keep any number of ferrets. If the owner of any ferret uses it contrary to the provisions of this chapter, the commissioner may revoke his permit and confiscate all of his ferrets. Each use of a ferret in hunting shall constitute a separate offense.
  2. The provisions of subsection (1) of this section shall not apply to a ferret which has been born and raised in captivity nor to a ferret born and raised in captivity which was obtained from a pet store or private vendor. Except for the prohibition on using a ferret for hunting, no permit shall be necessary to keep a ferret which was born and raised in captivity and a ferret born and raised in captivity shall be exempt from regulation under this chapter or administrative regulations promulgated thereunder.

History. Enact. Acts 1942, ch. 68, § 36; 1952, ch. 200, § 47, effective June 19, 1952; 1998, ch. 356, § 1, effective July 15, 1998.

150.360. Restrictions on taking of wildlife — Discharge of weapon across public roadway prohibited.

  1. No person shall take any wildlife, whether protected by this chapter or not, except by trapping, snaring, gig, crossbow, bow and arrow, hook and line, nets, gun, gun and dog, dog, falconry, or as expressly prescribed by regulation.
  2. Shotguns used in the taking of wildlife, protected or unprotected, shall not be larger than 10-gauge and shall be fired from the shoulder. No wildlife, except deer or light geese during a light geese conservation order, protected or unprotected, shall be taken with or by means of any automatic loading or hand-operated repeating shotgun capable of holding more than three (3) shells, the magazine of which has not been cut off or plugged with a one (1) piece filler incapable of removal through the loading end, in such manner as to reduce the capacity of the gun to not more than three (3) shells at one (1) time in the magazine and chamber combined.
  3. No person shall take or attempt to take any wildlife, protected or unprotected, from an automobile, or other vehicle, unless prescribed by regulation. Boats may be used except as prohibited by state or federal regulation.
  4. No person shall discharge any firearm, bow and arrow, crossbow or other similar device, upon, over, or across any public roadway.
  5. No person shall take wildlife, except opossum, raccoon, fishes and frogs, with lights or other means designed to make wildlife visible at night.
  6. Coyotes may be taken at night with or without the use of lights or other means designed to make wildlife visible at night, as established by administrative regulation.

History. 1954d-56, 1954d-60: amend. Acts 1942, ch. 68, § 37; 1944, ch. 124, § 9; 1946, ch. 84, § 14; 1952, ch. 200, § 48; 1968, ch. 38, § 18; 1978, ch. 178, § 13, effective June 17, 1978; 1986, ch. 265, § 15, effective July 15, 1986; 1990, ch. 474, § 6, effective July 13, 1990; 2013, ch. 29, § 1, effective June 25, 2013; 2019 ch. 115, § 7, effective June 27, 2019.

Opinions of Attorney General.

The fiscal court does not have the authority to enact ordinances concerning the protection and conservation of fish and wildlife resources, specifically the enactment of an ordinance dealing with the spotlighting of deer, where the enactment of such ordinances would produce a conflict with, additions to or subtractions from the terms, provisions and requirements of state statutes. OAG 83-46 .

Subject to license and regulations, dogs alone may be used to hunt, wound, and kill opossum and raccoon. Opossum and raccoon fighting against the dogs “may reasonably be expected to accomplish these acts.” So, participation in shakeout seasons as it is regulated by the department at 301 KAR 2:110, is statutorily authorized by this chapter. OAG 91-43 .

Research References and Practice Aids

Cross-References.

Game enclosure, breaking or entering, KRS 150.690 .

150.361. Taking game with a firearm during bow season prohibited.

  1. Except as provided in this section, no person shall knowingly take game with a firearm during bow season.
  2. This section shall not apply to a person who:
    1. Uses a firearm permitted by law to take game permitted by law to be taken during bow season; or
    2. Kills, attempts to kill, wounds, or attempts to wound an animal in self-defense, in defense of another person, or in defense of property, or as provided in KRS 150.172 .

History. Enact. Acts 2010, ch. 158, § 2, effective July 15, 2010.

150.362. Prohibition against taking wildlife by person under influence of alcohol or controlled substance.

  1. A person shall not take or attempt to take wildlife with a firearm, bow, or crossbow, if the person is manifestly under the influence of alcohol or any controlled substance, and the person:
    1. May endanger himself or herself or other persons or property; or
    2. Is engaging in any behavior specified in subsection (1)(a) to (d) of KRS 525.060 .
  2. A peace officer may arrest a person for violating subsection (1) of this section.

History. Enact. Acts 1998, ch. 606, § 168, effective July 15, 1998.

150.363. Computer-assisted remote hunting unlawful — Citizens with disabilities.

  1. For purposes of this section, “computer-assisted remote hunting” means the use of a computer or any other device, equipment, or software to remotely control the aiming and discharge of a rifle, shotgun, handgun, bow and arrow, crossbow, or any other implement to hunt or harvest wildlife in the Commonwealth.
  2. It shall be unlawful for any person to hunt or harvest wildlife in the Commonwealth by means of computer-assisted remote hunting.
  3. It shall be unlawful for any person to provide or operate a facility that allows others to engage in computer-assisted remote hunting of wildlife in the Commonwealth.
  4. The provisions of this section shall not be construed to limit or prohibit the hunting rights or privileges provided to citizens with disabilities pursuant to KRS 150.025 , the Americans with Disabilities Act, and Kentucky administrative regulations. Additionally, this section shall not be construed to prohibit a person who is physically impaired, to the degree that he or she cannot operate a device allowed for taking of game under Kentucky law, from taking game, subject to administrative regulations, with a device which is in the immediate vicinity of the permittee and which the permittee operates using remote-control technology other than the Internet.

History. Enact. Acts 2006, ch. 209, § 1, effective July 12, 2006.

150.365. Fire, explosives, electric devices, gas, smoke to take wildlife prohibited.

No wildlife may be taken as the result of a fire, or any type of explosive, or with the aid of any mechanical, electric or hand operated sonic recording devices, except as specified by regulation. No person shall use smoke or gas or in any other way molest or destroy the den, hole or nest of any wildlife, nor shall any person burn a field for the purpose of driving game, except employees or agents of the department in carrying out investigational, research or improvement projects.

History. Enact. Acts 1946, ch. 84, § 15; 1952, ch. 200, § 49; 1956, ch. 115, § 16; 1968, ch. 38, § 19; 1972, ch. 273, § 5; 1986, ch. 265, § 16, effective July 15, 1986.

150.370. Open season for wildlife — Exceptions.

  1. No person shall take any wildlife except during the open season for the particular species as prescribed by the department.
  2. Subsection (1) of this section shall not apply to persons who hunt red fox at night with dogs for sport and not to kill; and who during daylight or night hours exercise and train rabbit dogs, raccoon dogs, bird dogs, and retrievers, but not to kill. The department may, however:
    1. Regulate training seasons for rabbit dogs, raccoon dogs, bird dogs, and retrievers in such manner as not to discriminate against one (1) type of animal over any other nor as to unduly limit such activities; and
    2. Permit rabbit dog, raccoon dog, bird dog, fox dog, and retriever meets held by organized clubs, regardless of any hunting season, with the prior approval of the department provided said approval was requested at least thirty (30) days prior to the meet.

History. 1954d-57, 1954d-58, 1954d-70: amend. Acts 1942, ch. 68, § 38; 1944, ch. 124, § 10; 1946, ch. 84, § 16; 1948, ch. 78, § 19; 1952, ch. 200, § 50; 1964, ch. 143, § 2; 1968, ch. 38, § 20; 1972, ch. 273, § 6; 1978, ch. 178, § 14, effective June 17, 1978; 1986, ch. 265, § 17, effective July 15, 1986; 2006, ch. 127, § 6, effective July 12, 2006.

NOTES TO DECISIONS

1.Appeal by Commonwealth.

The Commonwealth may appeal from a judgment of acquittal for violation of this section and KRS 150.390(2) and upon reversal have a new trial notwithstanding the former verdict and judgment of acquittal by the trial court which found the evidence shy because conservation officer could not identify which of two individuals fired the shot and picked up the rabbit as the circumstantial evidence was sufficient to sustain a conviction on either or both charges and the violations are punishable by fine only under KRS 150.990(2) and (8) (now (6)). Commonwealth v. Devine, 396 S.W.2d 60, 1965 Ky. LEXIS 96 ( Ky. 1965 ).

Opinions of Attorney General.

Subsection (2) of this section does not provide an exception to the requirement of license in order to engage in hunting foxes with dogs. OAG 63-603 .

A license is required of each person engaging in hunting red fox with dogs for sport and not to kill even though no gun is carried and the fox is not harmed. OAG 63-603 .

A person engaged in hunting red fox with dogs for sport and not to kill is required to have the hunting license provided for by KRS 150.175(11) (now KRS 150.175(7)). OAG 63-603 .

150.380. Bag limits of animals; limits on possession. [Repealed.]

Compiler’s Notes.

This section (1954d-59: amend. Acts 1942, ch. 68, § 39; 1946, ch. 84, § 17; 1948, ch. 77, § 7; 1948, ch. 78, § 20; 1952, ch. 200, § 51) was repealed by Acts 1968, ch. 38, § 30.

150.390. Restrictions on hunting wild elk, deer, wild turkey, or bear — Depredation permits — Administrative regulations — Methods to reduce deer and elk populations that threaten agriculture or health and human safety.

  1. No person shall possess, take, pursue, or attempt to take or pursue or otherwise molest any wild elk, deer, wild turkey, or bear in any manner contrary to any provisions of this chapter or its regulations.
  2. No person shall use a dog to chase or molest wild elk or deer in any manner, at any time, or at any place. Any conservation officer, peace officer, sheriff, or constable may take necessary steps to stop, prevent, or bring under control any dog or dogs found chasing or molesting wild elk or deer at any time.
  3. The department shall establish by administrative regulation the conditions under which depredation permits may be issued without cost to persons suffering damage from wild elk to allow the taking of wild elk.
  4. If Kentucky’s wild elk population reaches a level that will sustain limited hunting, the department may establish by administrative regulations the conditions and permits that would allow the controlled taking of wild elk.
  5. The department shall identify areas where deer and elk pose a significant threat to agriculture or to health and human safety from automobile accidents and may take necessary steps to reduce the deer and elk population in those areas. Methods to reduce the deer and elk population may include but are not limited to the following:
    1. Special hunts;
    2. Increasing the doe harvest; and
    3. Working with the Transportation Cabinet to make vegetation along highways unpalatable to deer and elk.

HISTORY: 1954d-61: amend. Acts 1942, ch. 68, § 40; 1952, ch. 200, § 52; 1956, ch. 115, § 17; 1968, ch. 38, § 21; 1978, ch. 181, § 1, effective June 17, 1978; 1986, ch. 265, § 18, effective July 15, 1986; 1988, ch. 365, § 10, effective July 15, 1988; 1990, ch. 474, § 7, effective July 13, 1990; 1998, ch. 24, § 1, effective March 4, 1998; 2017 ch. 124, § 1, effective June 29, 2017.

NOTES TO DECISIONS

1.Constitutionality.

This section is constitutionally defective because it is overbroad on its face. Singleton v. Commonwealth, 740 S.W.2d 159, 1986 Ky. App. LEXIS 1484 (Ky. Ct. App. 1986) (decision prior to the 1988 amendment).

2.Appeal by Commonwealth.

The Commonwealth may appeal from a judgment of acquittal for violation of subsection (2) of this section and KRS 150.370 and upon reversal have a new trial notwithstanding the former verdict and judgment of acquittal by the trial court which found the evidence shy because conservation officer could not identify which of two (2) individuals fired the shot and picked up the rabbit since the circumstantial evidence was sufficient to sustain a conviction on either or both charges and the violations are punishable by fine only under KRS 150.990(2) and (8) (now (6)). Commonwealth v. Devine, 396 S.W.2d 60, 1965 Ky. LEXIS 96 ( Ky. 1965 ) (decided under prior law).

Opinions of Attorney General.

Although a juvenile may not be fined or jailed for a violation of this section or other fish and game laws, if a violation is proved by the Commonwealth beyond a reasonable doubt in a hearing as provided for in KRS 208.060 (now repealed), the judge of the juvenile court may lawfully confiscate a gun in the possession of the juvenile pursuant to KRS 150.120 . OAG 75-92 .

Causing a deer to bolt by use of an artificial light, even without control of a weapon, constitutes a molesting of deer, in violation of subsection (1) of this section, unless a deer hunting season is in progress. OAG 79-638 .

The fiscal court does not have the authority to enact ordinances concerning the protection and conservation of fish and wildlife resources, specifically the enactment of an ordinance dealing with the spotlighting of deer, where the enactment of such ordinances would produce a conflict with, additions to or subtractions from the terms, provisions and requirements of state statutes. OAG 83-46 .

150.395. Prohibition against use of artificial light.

  1. No person or group of persons may deliberately cast the rays of a spotlight or other artificial light into any field, pasture, woodlands, or forest, whether public or private, where wildlife or domestic livestock may reasonably be expected to be located, or into any inhabited building. This section shall not apply to the rays of headlights of vehicles engaged in a normal course of travel; to employees or agents of the department while on official business; to peace officers in the line of duty; to those engaged in legitimate agricultural activities; or to anyone involved in activities legitimate to his business, occupation, or circumstances including lawful hunting and fishing activities, or any landowner, his immediate family, or any paid employee while working on his land at that time.
  2. Any person who violates the provisions of this section shall be fined one hundred fifty dollars ($150), which shall be prepayable.

History. Enact. Acts 1990, ch. 473, § 1, effective July 13, 1990; 2000, ch. 168, § 1, effective July 14, 2000.

150.398. Regulations as to traps and trapping. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 52, § 4) was repealed by Acts 1952, ch. 200, § 74.

150.399. Traps illegally set or used — Seizure or treatment as contraband.

Any trap set, used, or maintained in violation of the provisions of KRS 150.400 or 150.410 shall be subject to confiscation as contraband under the provisions of KRS 150.120 , except that any trap set, used, or maintained without the tag required by subsection (1) of KRS 150.410 is hereby declared contraband and shall be so treated without any order of court so declaring.

History. Enact. Acts 1948, ch. 52, § 3; 1952, ch. 200, § 53; 1992, ch. 353, § 6, effective July 14, 1992.

150.400. Traps — Approval — Prohibition — New design.

  1. No person shall set, use or maintain, for the purpose of taking wildlife, any steel trap unless the size and type of the trap has been approved by the commissioner and the commission by regulation.
  2. The commissioner may approve, by regulation, any commercially manufactured trap which is designed to take wildlife alive and unhurt or to kill instantly.
  3. Subject to the provisions of KRS 150.410 it shall be lawful to use snares, deadfalls, wire cage or box traps, but no person shall set, use or maintain a snare large enough to take deer, elk or bear.
  4. Any manufacturer designing a new trap may send a sample to the commissioner for approval or disapproval.

History. 1954d-62a to 1954d-62c: amend. Acts 1942, ch. 68, § 41; 1948, ch. 52, § 1; 1952, ch. 200, § 54; 1960, ch. 126; 1986, ch. 265, § 19, effective July 15, 1986.

150.410. Tagging of traps — Visiting trap line — Protection of domestic animals.

  1. No person shall set, use, or maintain a trap for the purpose of taking wildlife unless there is attached thereto a metal tag giving either the name and address of, or the wildlife identification number as prescribed in administrative regulation that corresponds to, the person setting, using, or maintaining the trap.
  2. Each person who sets a trap for the purpose of taking wildlife shall visit the same at least once every twenty-four (24) hours and remove any wildlife found therein.
  3. No person shall set a trap in such manner as unreasonably to endanger the life or safety of any domestic animal.

History. 1954d-62: amend. Acts 1942, ch. 68, § 42; 1948, ch. 52, § 2; 1952, ch. 200, § 55; 1986, ch. 265, § 20, effective July 15, 1986; 1988, ch. 365, § 11, effective July 15, 1988; 1992, ch. 353, § 7, effective July 14, 1992; 2009, ch. 20, § 4, effective June 25, 2009.

150.411. Taxidermist’s records — Mounting.

  1. Every licensed taxidermist shall keep a suitable record for five (5) years in which shall be entered the species of each wildlife mounted by him and the name and address of the person for whom the mounting was done.
  2. Any legally taken wildlife may be mounted, provided the wildlife bears identification with the name and address of the owner and date and place taken until such time as it is mounted.
  3. A fish and wildlife disposal permit, signed by a conservation officer, must be attached to wildlife taken other than during a legally open hunting season. Such permit will substitute for the identification required in subsection (2) of this section.

History. Enact. Acts 1946, ch. 84, § 18; 1952, ch. 200, § 56; 1978, ch. 178, § 15, effective June 17, 1978; 1986, ch. 265, § 21, effective July 15, 1986; 1988, ch. 141, § 2, effective July 15, 1988.

150.4111. Sale of legally taken wildlife.

  1. Any person may sell the inedible parts of any legally taken wildlife to a licensed taxidermist for the purpose of mounting. A licensed taxidermist may buy or sell the inedible parts of any legally taken wildlife for the purpose of mounting, except as otherwise prohibited by federal law. Any person may purchase from or sell to a licensed taxidermist any legally mounted specimen.
  2. Within ten (10) days after the end of each month, a licensed taxidermist shall send to the department a report indicating the number and name of the wildlife of each species which he purchased during the preceding month and the name and address of the person from whom he purchased the wildlife.

History. Enact. Acts 1988, ch. 141, § 1, effective July 15, 1988.

150.4112. Administrative regulations to allow resident nonprofit 501(c)(3) institution to sell donated mounted wildlife specimen.

  1. As used in this section, “mounted wildlife specimen” means:
    1. A legally taken animal, including the skin of the head, cape, or the entire skin, mounted in a lifelike representation of the animal or any part thereof; or
    2. A European mount in which the horns or antlers and the skull or a portion of the skull are mounted for display.
  2. Notwithstanding KRS 150.180 and no later than January 1, 2014, the department shall promulgate administrative regulations to allow a resident nonprofit charitable, religious, or educational institution which has qualified for exemption from income taxation under Section 501(c)(3) of the Internal Revenue Code to sell mounted wildlife specimens, except as prohibited by federal law, that have been donated to that institution.
  3. The administrative regulations promulgated under this section shall establish a means by which each transaction for the sale of donated mounted wildlife specimens for white-tailed deer, elk, bears, turkeys, and bobcats allowed under subsection (2) of this section shall be recorded by the department. The department shall make the recording of each transaction as reasonably convenient for all parties to the transaction as possible, which may include but not be limited to allowing telephone and Internet recording of sales.
  4. Licensed taxidermists subject to the reporting requirements under KRS 150.4111 shall be exempt from the requirements of subsection (3) of this section.

History. Enact. Acts 2013, ch. 13, § 1, effective June 25, 2013.

150.4113. Administrative regulations to allow sale and purchase of mounted wildlife specimens — Recording of sales.

  1. As used in this section, “mounted wildlife specimen” means:
    1. A legally taken animal, including the skin of the head, cape, or the entire skin, mounted in a lifelike representation of the animal or any part thereof; or
    2. A European mount in which the horns or antlers and the skull or a portion of the skull are mounted for display.
  2. Notwithstanding KRS 150.180 and no later than January 1, 2014, the department shall promulgate administrative regulations to allow any person or entity to sell or buy mounted wildlife specimens, except as prohibited by federal law.
  3. The administrative regulations promulgated under this section shall establish a means by which each transaction for the sale of mounted wildlife specimens for white-tailed deer, elk, bears, turkeys, and bobcats shall be recorded by the department. The department shall make the recording of each transaction as reasonably convenient for all parties to the transaction as possible, which may include but not be limited to allowing telephone and Internet recording of sales.
  4. Mounted wildlife specimens purchased from or sold to a licensed taxidermist under KRS 150.4111 shall be exempt from the requirements of this section.

History. Enact. Acts 2013, ch. 92, § 1, effective June 25, 2013.

150.412. Restriction on commercial guide’s participation in taking of wildlife or fish while providing guide services.

  1. While providing the services of a commercial guide, a guide already possessing the applicable sport hunting licenses and permits may participate in the taking of wildlife protected by this chapter up to the bag limit set forth in administrative regulations.
  2. While providing the services of a commercial guide, a guide already possessing the applicable sport fishing licenses and permits may participate in the taking of fish protected by this chapter up to the creel limit set forth in administrative regulations.

History. Enact. Acts 1946, ch. 84, § 19; 1952, ch. 200, § 57; 1986, ch. 265, § 22, effective July 15, 1986; 2006, ch. 127, § 7, effective July 12, 2006.

150.415. Fur buyer — Receipts for purchases.

Every licensed fur buyer shall, upon purchasing any raw fur, issue a receipt to the trapper or hunter from whom he has purchased such furs, setting forth the number and kind of furs, the date of the purchase, the price paid for each fur and the license number of the trapper’s or hunter’s license. The buyer shall make out a duplicate receipt at the same time and obtain the signature and address on such duplicate of the trapper or hunter from whom the furs were purchased. Not later than March 15 of each year every licensed fur buyer shall submit to the department a complete report of all furs purchased during the previous buying season. The report shall contain the total number and value of each type of fur purchased. Failure on the part of any buyer to comply with the provisions of this section shall bar the licensee from obtaining a license for the following year.

History. Enact. Acts 1946, ch. 84, § 20; 1952, ch. 200, § 58.

150.416. Fur processor — Receipts and inventory.

Every licensed fur processor shall, within fifteen (15) days after January 1 and July 1 of each year file with the department an inventory of furs in his possession as of such dates. Every licensed fur processor shall also issue receipts for the total number of furs purchased from fur buyers, each of which shall show the license number of the fur buyer from whom purchased. Duplicates of such receipts shall be sent to the department with the inventory report.

History. Enact. Acts 1946, ch. 84, § 21; 1952, ch. 200, § 59.

150.417. Nonresident accompanying resident fur buyer — Presumption from.

In any prosecution of a nonresident from buying raw fur or furs without a fur buyer’s license, proof that such person was in the company of a resident fur buyer at the time the latter purchased a raw fur shall constitute a prima facie evidence that such nonresident was engaged in the business of buying raw furs without a license.

History. Enact. Acts 1946, ch. 84, § 22; 1952, ch. 200, § 60.

150.420. Fur buyer’s license; receipts for furs purchased. [Repealed.]

Compiler’s Notes.

This section (1954d-63, 1954d-64, 1954d-66, 1954d-67: amend. Acts 1942, ch. 68, § 43; 1944, ch. 124, § 16) was repealed by Acts 1946, ch. 84, § 23.

150.425. Bounty on beaver.

  1. Upon adoption of a resolution by the fiscal court that beaver exist within the county in such quantities that they present a threat to the preservation of farmland, trees, and other property, the fiscal court may request the department to pay a bounty on beaver. Upon receipt of the resolution, a bounty on beaver of ten dollars ($10) for each beaver shall be paid in the following manner. Upon the presentation of the tail of any beaver, any conservation officer of the department shall issue a receipt, in the form as prescribed by the commission, to the person presenting the tail. The department shall redeem the receipts by paying to such person the sum of ten dollars ($10) for each receipt as bounty. The redemption of receipts shall be paid only from funds especially appropriated for this purpose and it is expressly provided that no bounty shall be paid from any regular receipts, funds, or appropriations of the department. However, the department may charge a maximum of one dollar ($1) against the appropriation for bounties for each bounty paid as reimbursement for the expense of administering the bounty program.
  2. No bounty shall be paid when funds, personnel, or equipment of any governmental unit are used in capturing and killing beaver.
  3. Upon receipt of an adopted resolution from a fiscal court stating that beaver no longer present a threat to property within the county, the department shall cease paying the bounty.

History. Enact. Acts 1978, ch. 264, § 1, effective June 17, 1978.

150.430. Purchasing and shipping pelts; license required when. [Repealed.]

Compiler’s Notes.

This section (1954d-65, 1954d-68: amend. Acts 1942, ch. 68, § 44) was repealed by Acts 1946, ch. 84, § 23.

150.440. Open season and creel limits for rough fish.

  1. The open season for taking rough fish by gigging, grabbing, snaring, and snagging shall be prescribed by the department, by regulation.
  2. Creel limits for rough fish taken by gigging, grabbing, snaring, and snagging shall be set by the department, by regulation.

History. 1954d-38, 1954d-42: amend. Acts 1942, ch. 68, § 45; 1944, ch. 124, § 11; 1946, ch. 84, § 24; 1948, ch. 78, § 21; 1952, ch. 200, § 61; 1978, ch. 178, § 16, effective June 17, 1978.

NOTES TO DECISIONS

Cited:

Commonwealth v. Hoover’s Adm’r, 274 Ky. 472 , 118 S.W.2d 741, 1938 Ky. LEXIS 278 ( Ky. 1938 ).

Research References and Practice Aids

Kentucky Law Journal.

Mann, Draffen v. Black — The State’s Power to Regulate Fishing in Private Ponds, 36 Ky. L.J. 225 (1948).

150.445. Fish not to be taken other than by pole and line near dams.

No person shall take fish by any method other than pole and line in hand, for two hundred (200) yards below any dam on or across any stream except as otherwise provided by administrative regulation.

History. Enact. Acts 1944, ch. 124, § 12; 1946, ch. 84, § 25; 1948, ch. 38, § 1; 1948, ch. 78, § 22; 1952, ch. 200, § 62; 1968, ch. 38, § 22; 1986, ch. 265, § 23, effective July 15, 1986.

150.450. Use, operation, and possession of certain fishing gear.

  1. The department shall promulgate reasonable regulations governing the taking of minnows and crayfish from the waters of the Commonwealth. The regulations shall prescribe the type of gear to be used, and shall prescribe the types of minnows and crayfish that may be taken and the purposes for which they may be used.
  2. Any person possessing a commercial fishing license may take rough fishes, by the use of commercial fishing gear, the types and specifications of which shall be prescribed by the department by regulation.
  3. No person shall operate any commercial fishing gear as prescribed by regulation unless he has procured a commercial fishing license and a tag for the use of each piece of commercial fishing gear and has complied with the provisions of this chapter or the regulations of the department. The tags shall be affixed to and displayed on each piece of commercial fishing gear in use. This section shall not be construed to require retail or wholesale dealers, or manufacturers to obtain licenses and tags for commercial fishing gear in their possession.

History. 1893d-10, 1954d-40, 1954d-41: amend. Acts 1942, ch. 68, § 46; 1944, ch. 124, § 13; 1946, ch. 84, § 26; 1948, ch. 38, § 2; 1952, ch. 200, § 63; 1956, ch. 115, § 18; 1958, ch. 166, § 4; 1968, ch. 38, § 23; 1990, ch. 474, § 8, effective July 13, 1990; 1992, ch. 353, § 8, effective July 14, 1992.

150.460. Use of certain substances and devices in public waters prohibited — Use of explosives and firearms prohibited.

  1. No person, firm or corporation, whether acting in a private or public capacity, shall place or cause to be placed in any public waters any substance that might injure, interfere with, or cause the waters to be unfit for the support of wildlife. When any employee of a person, firm or corporation, in the course of his employment, places or causes to be placed any such substance in any public waters, his act shall be prima facie evidence of the guilt of both the employee and the employer, and either one (1) or both may be punished as provided in subsection (7) of KRS 150.990 . Each day that this section is violated shall constitute a separate offense. This section does not apply to employees or agents of the department acting in an official capacity.
  2. No person shall use, or attempt to use any electrical device, fish-finding devices excepted, of any type, such as telephone, or electrical leads from a magneto, or battery, or motor, or any other type of electrical equipment, in any stream or body of water. This does not prevent the authorized employees or agents of the department from using this or any devices in research or investigational work.
  3. No person, except employees or agents of the department, shall willfully place or attempt to place in any of the public waters of the state any substance which has a poisonous or intoxicating effect upon wildlife.
  4. No person shall kill, injure, shock, or stun or attempt to kill, injure, shock, or stun any fishes by any explosive agent, firearm, or other device. This provision shall not apply to employees or agents of the department acting in an official capacity.

History. 1253, 1954d-29, 1954d-38, 1954d-39: amend. Acts 1942, ch. 68, § 47; 1944, ch. 124, § 14; 1952, ch. 200, § 64; 1956, ch. 115, § 19; 1968, ch. 38, § 24; 1978, ch. 384, § 37, effective June 17, 1978; 1986, ch. 265, § 24, effective July 15, 1986; 1988, ch. 365, § 12, effective July 15, 1988; 1990, ch. 474, § 9, effective July 13, 1990.

NOTES TO DECISIONS

1.Common-law Offense.

An indictment for maintaining a nuisance by pollution of a stream and killing fish therein is a valid common-law charge even though it describes the statutory offense provided by this section since in Kentucky the common law as to crime is in force. Commonwealth v. Wiman, 308 Ky. 565 , 215 S.W.2d 283, 1948 Ky. LEXIS 1004 ( Ky. 1948 ).

2.Jurisdiction.

The Circuit Court in Jessamine County had jurisdiction of an offense under this section where the pollution of the stream originated in Fayette County and was carried into Jessamine County and there created a public nuisance. Lexington v. Cox, 481 S.W.2d 645, 1972 Ky. LEXIS 252 (Ky. Ct. App. 1972).

3.Sufficiency of Indictment.

An indictment which charges a distiller with intentionally running a substance commonly known as “distillery slop” which is injurious to aquatic life, into the public waters in the county on a specified date within 12 months before the date the indictment is returned is sufficient to charge offense under this section. Commonwealth v. Brown Forman Distillers Corp., 307 Ky. 597 , 211 S.W.2d 858, 1948 Ky. LEXIS 800 ( Ky. 1948 ).

4.Evidence.

Pollution of a river itself is prima facie evidence of the violation of the law. Murray v. Commonwealth, 584 S.W.2d 403, 1979 Ky. App. LEXIS 427 (Ky. Ct. App. 1979).

5.Strict Liability.

The trial judge did not commit reversible error in determining that subsection (1) of this section imposes strict liability, disallowing the defense of reasonable care. Murray v. Commonwealth, 584 S.W.2d 403, 1979 Ky. App. LEXIS 427 (Ky. Ct. App. 1979).

Where the defendant’s sewage lift station had malfunctioned and raw sewage passed through the discharge valve polluting a river, this section specifically prohibited such action without regard to whether there was any negligence. Murray v. Commonwealth, 584 S.W.2d 403, 1979 Ky. App. LEXIS 427 (Ky. Ct. App. 1979).

6.Jury Instructions.

The trial judge was correct in instructing the jury using the language of this section. Murray v. Commonwealth, 584 S.W.2d 403, 1979 Ky. App. LEXIS 427 (Ky. Ct. App. 1979).

Cited:

Little v. Commonwealth, 289 Ky. 475 , 158 S.W.2d 955, 1941 Ky. LEXIS 32 ( Ky. 1941 ).

Research References and Practice Aids

Kentucky Law Journal.

Mann, Draffen v. Black — The State’s Power to Regulate Fishing in Private Ponds, 36 Ky. L.J. 225 (1948).

Kentucky Law Survey, Connelly, Torts, 68 Ky. L.J. 709 (1979-1980).

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

150.470. Creel and size limits for fish.

  1. No person shall take or have in his or her possession in any one (1) day more fish than the creel limit prescribed in the regulation. The regulation shall also provide the possession limit.
  2. No person shall take or have in his or her possession any fish smaller than the size limit prescribed in the regulation.

History. 1893d-9, 1954d-43: amend. Acts 1942, ch. 68, § 48; 1944, ch. 124, § 15; 1946, ch. 84, § 27; 1948, ch. 78, § 23; 1952, ch. 200, § 65.

NOTES TO DECISIONS

1.Private Waters.

This section applies to fish taken from private waters as well as from public waters. Draffen v. Black, 302 Ky. 775 , 196 S.W.2d 362, 1946 Ky. LEXIS 746 ( Ky. 1946 ) (Decision prior to enactment of KRS 150.650 (now repealed), 150.660 , and 150.670 (now repealed)).

Anglers in private ponds, who are not the owner, his resident children, or his lessees, are required to procure a state fishing license, and are regulated in the size and number of fish they may catch, and game conservators have the right to enter private property to enforce the law. Draffen v. Black, 302 Ky. 775 , 196 S.W.2d 362, 1946 Ky. LEXIS 746 ( Ky. 1946 ) (decision prior to enactment of KRS 150.650 (now repealed), 150.660 , and 150.670 (now repealed)).

Research References and Practice Aids

Kentucky Law Journal.

Mann, Draffen v. Black — The State’s Power to Regulate Fishing in Private Ponds, 36 Ky. L.J. 225 (1948).

150.480. Fish ladders or roads. [Repealed.]

Compiler’s Notes.

This section (1392a-1, 1392a-2: amend. Acts 1942, ch. 68, § 49) was repealed by Acts 1952, ch. 200, § 74.

150.485. Live fish and bait dealers.

No person shall sell live crayfish, mud eels, spring lizards, fish, aquatic invertebrates, or amphibians for bait to be used in taking fishes, nor live fishes for stocking or fishing purposes unless he has obtained a live fish and bait dealer’s license.

History. Enact. Acts 1942, ch. 68, § 50; 1952, ch. 200, § 66; 1968, ch. 38, § 25; 1994, ch. 239, § 7, effective July 15, 1994.

150.490. License for musseling. [Repealed.]

Compiler’s Notes.

This section (1954d-44, 1954d-45: amend. Acts 1942, ch. 68, § 51; 1944, ch. 174) was repealed by Acts 1946, ch. 84, § 28.

150.500. Musseling operations. [Repealed.]

Compiler’s Notes.

This section (1954d-46: amend. Acts 1942, ch. 68, § 52; 1952, ch. 200, § 67) was repealed by Acts 1968, ch. 38, § 30.

150.510. Report of musseling operations. [Repealed.]

Compiler’s Notes.

This section (1954d-47: amend. Acts 1942, ch. 68, § 53; 1946, ch. 84, § 29; 1952, ch. 200, § 68; 1968, ch. 38, § 26) was repealed by Acts 1994, ch. 413, § 6, effective July 15, 1994.

150.520. Department may regulate musseling.

The department shall make such requirements by administrative regulations governing the taking, selling, and buying of mussels and the reporting of musseling operations as it may deem best for the proper enforcement of this chapter. To prevent depletion of the mussel beds and to insure proper propagation of the mussels, the department may close any beds to operators at any time and for such length of time as it deems necessary. During such closed season on any bed no one shall take mussels therefrom. When an order is issued closing any mussel bed, due notice of the same shall be published pursuant to KRS Chapter 424.

History. 1954d-49: amend. Acts 1942, ch. 68, § 54; 1952, ch. 200, § 69; 1966, ch. 239, § 145; 1988, ch. 365, § 13, effective July 15, 1988; 1994, ch. 413, § 1, effective July 15, 1994.

Opinions of Attorney General.

Since state statutes and regulations have preempted the field of musseling in Kentucky, county and city local musseling ordinances were invalid. OAG 93-1 .

150.525. License for buying mussel shells or mussels in the shell.

No person may engage in the buying of mussel shells or mussels in the shell in this state unless he has in his possession a license authorizing him to do so.

History. Enact. Acts 1948, ch. 50, § 1(1); 1952, ch. 200, § 70; 1978, ch. 384, § 290, effective June 17, 1978; 1988, ch. 365, § 14, effective July 15, 1988; 1994, ch. 239, § 8, effective July 15, 1994.

150.530. Kentucky Sportsmen’s Voluntary Fund. [Repealed.]

Compiler’s Notes.

This section (1954d-74; 1954d-80) was repealed by Acts 1942, ch. 68, § 59.

150.540. Special licenses for donations to fund. [Repealed.]

Compiler’s Notes.

This section (1954d-75) was repealed by Acts 1942, ch. 68, § 59.

150.550. Lifetime hunting and fishing licenses. [Repealed.]

Compiler’s Notes.

This section (1954d-78) was repealed by Acts 1942, ch. 68, § 59.

150.560. Fund earmarked; uses. [Repealed.]

Compiler’s Notes.

This section (1954d-79) was repealed by Acts 1942, ch. 68, § 59.

150.570. County clerks to explain purpose of contribution. [Repealed.]

Compiler’s Notes.

This section (1954d-76) was repealed by Acts 1942, ch. 68, § 59.

150.580. Fees to clerks; prizes. [Repealed.]

Compiler’s Notes.

This section (1954d-77) was repealed by Acts 1942, ch. 68, § 59.

150.590. Possession of illegal nets, seines or steel traps; exceptions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 84, § 30; 1952, ch. 200, § 71) was repealed by Acts 1968, ch. 38, § 30.

150.600. Regulation of the taking of waterfowl.

The commissioner, with the approval of the commission, shall have the authority to regulate the taking of waterfowl within the state and shall further have the power to establish waterfowl refuges and waterfowl shooting grounds, regulate distance of pits and shooting from refuges, either on public or private lands, where hunting or shooting is permitted; to build shooting pits or blinds and make charges for their use; and do anything else necessary to control or improve the conservation or hunting of waterfowl not contrary to federal regulations.

History. Enact. Acts 1956, ch. 115, § 22; 1972, ch. 43, § 1; 1978, ch. 384, § 38, effective June 17, 1978; 2019 ch. 115, § 8, effective June 27, 2019.

Opinions of Attorney General.

The correct interpretation of this section is that it applies to both private and commercial hunting areas. OAG 71-143 .

150.603. Migratory bird/waterfowl permit required — Exceptions — Use of revenue generated by sale of migratory bird/waterfowl permit.

  1. Any person required to possess a hunting license under the provisions of KRS 150.170 , except children under sixteen (16) years of age, taking or attempting to take waterfowl within the state shall, in addition to the appropriate hunting license, possess a current migratory bird/waterfowl permit. The permit shall be carried while hunting waterfowl.
  2. Any person required to possess a hunting license under the provisions of KRS 150.170 , except children under sixteen (16) years of age, taking or attempting to take migratory shore or upland game birds within the state shall, in addition to the appropriate hunting license, possess a current migratory bird/waterfowl permit. The permit shall be carried while hunting migratory shore or upland game birds.
  3. The Fish and Wildlife Commission shall administer all revenues generated by the sale of the permits. The revenue from the sale of current migratory bird/waterfowl permits shall be expended for waterfowl projects for the purpose of protecting and propagating migratory waterfowl and for the development, restoration, maintenance, and preservation of wetlands within the state. The intent of this section is to expand waterfowl research and management and increase waterfowl populations in the state without detracting from other programs. The expenditures of funds generated under the provisions of this section shall be included in the annual report provided for in KRS 150.061 .

History. Enact. Acts 1984, ch. 166, § 1, effective July 1, 1985; 1986, ch. 265, § 25, effective July 15, 1986; 1994, ch. 239, § 9, effective July 15, 1994; 1996, ch. 268, § 3, effective July 15, 1996; 2013, ch. 50, § 2, effective June 25, 2013; 2019 ch. 115, § 9, effective June 27, 2019.

150.605. Contract for commissioning painting to be used as state waterfowl stamp — Use of revenue from sale of painting. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1984, ch. 166, § 2, effective July 1, 1985) was repealed by Acts 2013, ch. 50, § 3, effective June 25, 2013.

150.610. Issuance of revenue bonds for purpose of establishing public shooting areas, wildlife refuges, public fishing lakes or other projects — Pledging of revenue — Liens.

The commissioner of the Department of Fish and Wildlife Resources, with approval of the commission, may call for the issuance of revenue bonds pursuant to the entire terms of KRS 58.010 through 58.140 for the purpose of establishing public shooting areas, waterfowl or other wildlife refuges, public fishing lakes or the establishment of other projects of public benefit in the interest of fish and game and may unite into one (1) project for financing purposes all revenue as may be pledged by the commissioner. From every source whatsoever these revenues thus united shall be used for the payment of the principal and interest of all bonds which may be issued. Such united receipts, unless otherwise agreed upon by the commissioner and bonding company, shall continue until all bonds issued have been paid in full. The lien of the bonds from such limited project shall be a lien upon the united gross income and revenue as specified in the original terms ascribed to by the commissioner with the concurrence of the commission.

History. Enact. Acts 1956, ch. 115, § 25, effective May 18, 1956.

Research References and Practice Aids

Kentucky Law Journal.

Martin, Administrative Action for Efficient Debt Management: The Kentucky Case, 49 Ky. L.J. 505 (1961).

150.620. Acquisition of lands for establishment and maintenance of public shooting, fishing, and other recreational areas — Operation of facilities and lands — Subleasing of land.

For the purpose of encouraging and developing public interest in wildlife and carrying out the policy of the Commonwealth of Kentucky under KRS Chapter 150, the Department of Fish and Wildlife Resources Commission, as a state agency, and based upon investigations and recommendations of the commission, is hereby authorized to acquire lands including any improvements thereon by purchase, condemnation or lease from the State Property and Buildings Commission or from others, and partly by any or all of such means, and to thereafter establish, improve, maintain, and operate public shooting and fishing grounds and similar or related recreational facilities thereon, and for the purpose of paying the cost of any such purchase or condemnation and the maintenance and operation expenses may use and apply any funds available for that purpose. The payments under each such lease shall be deemed an administrative and operating expense of the department, and such payments may be secured by a pledge of and made from all or any part of the funds coming under the control of the department including the game and fish fund, as may be provided and specified in the lease. The commissioner, with the approval of the commission may sublease any lands and improvements thereon acquired under the provisions of this chapter for agricultural and for any purpose deemed by the commission to be incidental or beneficial to the maintenance and operation of the balance of said lands and improvements for the purpose herein stated. The commission may impose and enforce special regulations in the maintenance and operation of the facilities and lands acquired under the provisions of this section or lands that are managed by the department under a cooperative agreement and charge such rates as may be deemed fair and reasonable for the use of and participation of the public in the facilities and lands and lease payments aforesaid may be made a first charge on the income and revenues from the maintenance and operation of the facilities and lands and from the sublease of any portion thereof, to be supplemented with any other funds available for that purpose.

History. Enact. Acts 1956, ch. 115, § 26, effective May 18, 1956; 1988, ch. 365, § 15, effective July 15, 1988; 2000, ch. 35, § 5, effective July 14, 2000.

Opinions of Attorney General.

Fishing in a lake acquired pursuant to this section may be regulated by the Department of Fish and Wildlife Resources by any means authorized by KRS 150.025 and a regulation prohibiting fishing in the lake is applicable to all citizens including abutting property owners. OAG 62-376 .

No regulation of the Department of Fish and Wildlife Resources could authorize conservation officers to arrest for such offenses as gambling, disorderly conduct and intoxication even though such prohibited acts occurred on the departmental facilities. OAG 69-545 .

150.625. Highway construction lakes.

  1. The Department of Highways is authorized to construct fills, made necessary by road construction, so that such will impound water.
  2. The Department of Fish and Wildlife Resources and the Department of Highways shall decide whether the creation of a lake in any one (1) particular spot is deemed reasonable and beneficial. The Department of Fish and Wildlife Resources shall do everything necessary to insure good fishing and may regulate boating and other recreational interest so that there may be the least amount of interference.
  3. The Department of Fish and Wildlife Resources may, if the site is suitable, assist the local party or parties in obtaining deeds or easements where necessary. Interested local parties may obtain title to excess land required and deed it to the Commonwealth for creation of a public fishing lake. A parking lot at or near the fill may be created on land deeded free of charge to the Commonwealth.
  4. Surrounding landowners may by permission irrigate from said lake providing that there is no adverse affect on the lake itself.
  5. Parking shall be regulated to prevent obstruction of the highway.

History. Enact. Acts 1958, ch. 115, effective June 19, 1958.

150.630. Violations of law pertaining to shooting or hunting preserves — Cancellation or revocation of license.

No person shall violate any law or regulations relating to licensed shooting preserves, or licensed hunting preserves. Any owner or operator who permits any person to hunt on his or her licensed shooting preserve without the required license may have his or her license canceled or revoked by the commissioner of the Department of Fish and Wildlife Resources.

History. Enact. Acts 1956, ch. 115, § 20, effective May 18, 1956.

150.640. Acts of depredation prohibited while hunting, fishing or trapping — Domestic livestock roaming on department lands prohibited.

  1. No person engaged in hunting, fishing or trapping upon either public or private property shall commit any acts of depredation, such as setting of fires, destruction of fences, shooting of livestock or poultry, theft or causing damage to any property in any manner.
  2. No person shall knowingly permit domestic livestock to feed or roam free upon lands owned, licensed or leased by the department except as provided by regulations or authorized by the commissioner.

History. Enact. Acts 1956, ch. 115, § 21, effective May 18, 1956; 1978, ch. 178, § 17, effective June 17, 1978.

150.645. Liability of landowner consenting to hunting, fishing, trapping, camping, or hiking on premises — Claims for property damage by state employees participating in wildlife management practices. [Effective until June 29, 2021]

  1. An owner, lessee or occupant of premises who gives permission to another person to hunt, fish, trap, camp or hike upon the premises shall owe no duty to keep the premises safe for entry or use by the person or to give warning of any hazardous conditions on the premises, and the owner, lessee, or occupant, by giving his permission, does not thereby extend any assurance that the premises are safe for such purpose, or constitute the person to whom permission is granted an invitee to whom a duty of care is owed. The owner, lessee, or occupant giving permission for any of the purposes stated above shall not be liable for any injury to any person or property caused by the negligent acts of any person to whom permission is granted. This section shall not limit the liability which would otherwise exist for willful and malicious failure to guard or to warn against a dangerous condition, use, structure, or activity; or for injury suffered in any case where permission to hunt, fish, trap, camp, or hike was granted for a consideration other than the consideration, if any, as set forth in KRS 411.190(1)(d), paid to said owner, lessee, or occupant by the state. The word “premises” as used in this section includes lands, private ways, and any buildings and structures thereon. Nothing in this section limits in any way any liability which otherwise exists.
  2. Department employees who participate in bona fide wildlife management practices are agents of the department and state and, in the event property damage does occur, a claim for property damages may only be brought in the Kentucky Claims Commission pursuant to KRS 49.040 to 49.180 .

History. Enact. Acts 1968, ch. 38, § 29; 1998, ch. 275, § 4, effective July 15, 1998; 2004, ch. 85, § 1, effective July 13, 2004; 2017 ch. 74, § 89, effective June 29, 2017.

NOTES TO DECISIONS

1.Liability.

In a wrongful death action, the property’s owner’s invited guests were not entitled to summary judgment, because they were in no way in control of the condition of the property but were merely guests who had invited more guests and thus, not entitled to the protections of this section. Estate of David v. Pounds, 553 S.W.3d 262, 2018 Ky. App. LEXIS 184 (Ky. Ct. App. 2018).

In a wrongful death action, summary judgment was properly granted to the property owner, because this section protected the property owner, who had invited guests to fish on his property, from liability and did not required that the property owner warn of the boat or provide life jackets. Estate of David v. Pounds, 553 S.W.3d 262, 2018 Ky. App. LEXIS 184 (Ky. Ct. App. 2018).

Opinions of Attorney General.

Land owners, tenants or occupants of land who freely give their permission to persons to enter onto their land to hunt do not thereby increase their legal duty or, therefore, their liability toward those persons. OAG 90-137 .

The only liability to which a land owner is exposed when he or she freely gives permission to another to come onto his or her land to hunt or trap is that which already otherwise exists, and that includes liability as a result of willful and malicious failure to guard, or to warn, against a dangerous condition, use, structure or activity. OAG 90-137 .

150.645. Liability of landowner consenting to hunting, fishing, trapping, camping, or hiking on premises — Claims for property damage by state employees participating in wildlife management practices. [Effective June 29, 2021]

  1. An owner, lessee or occupant of premises who gives permission to another person to hunt, fish, trap, camp or hike upon the premises shall owe no duty to keep the premises safe for entry or use by the person or to give warning of any hazardous conditions on the premises, and the owner, lessee, or occupant, by giving his permission, does not thereby extend any assurance that the premises are safe for such purpose, or constitute the person to whom permission is granted an invitee to whom a duty of care is owed. The owner, lessee, or occupant giving permission for any of the purposes stated above shall not be liable for any injury to any person or property caused by the negligent acts of any person to whom permission is granted. This section shall not limit the liability which would otherwise exist for willful and malicious failure to guard or to warn against a dangerous condition, use, structure, or activity; or for injury suffered in any case where permission to hunt, fish, trap, camp, or hike was granted for a consideration other than the consideration, if any, as set forth in KRS 411.190(1)(d), paid to said owner, lessee, or occupant by the state. The word “premises” as used in this section includes lands, private ways, and any buildings and structures thereon. Nothing in this section limits in any way any liability which otherwise exists.
  2. Department employees who participate in bona fide wildlife management practices are agents of the department and state and, in the event property damage does occur, a claim for property damages may only be brought in the Board of Claims pursuant to KRS 49.040 to 49.180 .

HISTORY: Enact. Acts 1968, ch. 38, § 29; 1998, ch. 275, § 4, effective July 15, 1998; 2004, ch. 85, § 1, effective July 13, 2004; 2017 ch. 74, § 89, effective June 29, 2017; 2021 ch. 185, § 80, effective June 29, 2021.

150.650. “Pay lakes” defined. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956, ch. 93, § 1, effective May 18, 1956) was repealed by Acts 1992, ch. 353, § 11, effective July 14, 1992.

150.660. Establishment of pay lakes, authority of commissioner concerning — Stocking requirement — Permits — Revocation of license.

  1. Any person may establish a pay lake subject to the approval of the commissioner of the Department of Fish and Wildlife Resources, who shall have the authority to approve or reject the establishment of pay lakes and issue to the owners or lessees of lakes a license for their operation. All pay lakes shall be stocked at least twice per calendar year with not less than five hundred (500) pounds of adult fish per surface acre of water.
  2. When a pay lake is licensed by the department, the commissioner shall issue to the licensee, consecutively numbered permits to be issued, without cost, to pay lake patrons. The permits shall only be valid for fishing any licensed pay lake within the state and shall be valid for one (1) year beginning January 1.
  3. No person, except those exempted elsewhere in this chapter, shall fish in a licensed pay lake without possessing a valid special pay lake permit or a valid statewide fishing license. No owner or operator of a licensed pay lake shall allow any patron to fish who is not properly licensed or permitted.
  4. Any pay lake licensee that fails to comply with the laws or regulations governing the operation of a pay lake may have his operator’s license revoked by the commissioner.

History. Enact. Acts 1956, ch. 93, § 2, effective May 18, 1956; 1988, ch. 365, § 16, effective July 15, 1988; 1992, ch. 353, § 9, effective July 14, 1992.

150.670. Pay lake permits or regular fishing license required — Exceptions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956, ch. 93, § 3, effective May 18, 1956) was repealed by Acts 1992, ch. 353, § 11, effective July 14, 1992.

150.680. Concurrent criminal jurisdiction of portions of Trigg and Lyon Counties within boundaries of Land Between the Lakes ceded to United States.

Kentucky cedes to the United States criminal jurisdiction concurrent with that of Kentucky, solely for the purposes of Section 13 of Title 18 of the United States Code and enforcement proceedings pursuant thereto, over those portions of Trigg and Lyon Counties that lie within the boundaries of the Kentucky portion of Land Between the Lakes and are more specifically described as follows:

  1. Beginning at a point in the Tennessee River at Tennessee River mile 49.2, such being the point of separation between the Kentucky-Tennessee state line and the Trigg County-Calloway County line; thence with the Trigg County-Calloway County line as it meanders northward with the river for a distance of approximately 5.5 miles to a point where the Marshall County-Calloway County line intersects the Trigg County line; thence with the Trigg County-Marshall County line and the river as they meander northward approximately 9 miles to a point where the Trigg County-Lyon County line intersects the Marshall County line; thence with the Lyon County-Marshall County line in a northerly direction to a point in said county line opposite Tennessee River mile 25.7; thence leaving the Lyon County-Marshall County line and running N. 53 deg. 30 min. E. approximately 3,795 feet to U.S. TVA Monument 2CN-6 in the 378-foot contour on the east shore of Kentucky Lake; thence with the 378-foot contour as it meanders northerly to the southwest end of the canal connecting Kentucky Lake and Lake Barkley; thence continuing with the 378-foot contour as it meanders along the southeast shore of the canal in a northeasterly direction to the northeast end of the canal; thence continuing with the 378-foot contour as it meanders eastward and southward to a point where the 378-foot contour intersects the Kentucky-Tennessee state line, said point being located on the west shore of Lake Barkley opposite Cumberland River mile 74.6; thence with the Kentucky-Tennessee state line in a westerly direction for a distance of approximately 8.6 miles to the point of beginning. The combined distance of the calls in the foregoing description that follow the meandering of the 378-foot contour from U.S. TVA Monument 2CN-6 to the Kentucky-Tennessee state line on the west shore of Lake Barkley is approximately 260 miles.
  2. Nothing in this section shall be construed as ceding to the United States any existing legislative or other regulatory jurisdiction of the Commonwealth of Kentucky.

History. Enact. Acts 1974, ch. 43, § 1.

150.690. Wrongfully entering park and injuring or killing deer, elk or buffalo — Treble damages.

Any person who wrongfully breaks or enters a park or other enclosed grounds used for keeping deer, elk or buffalo, or hunts, drives, chases, takes out, maims or kills any deer, elk or buffalo therein shall, in addition to any other penalty, also pay to the person aggrieved treble the amount of damages sustained.

History. Enact. Acts 1980, ch. 49, § 6, effective July 15, 1980.

150.700. Destroying private fish pond — Treble damages.

Any person who breaks or cuts down, cuts out or destroys any head or dam of any pool, pond, moat, slew, stagnet or pit wherein fish are or will be put or stored by the owner or person in possession, shall, in addition to any other penalty, pay the party aggrieved treble the damages sustained.

History. Enact. Acts 1980, ch. 49, § 7, effective July 15, 1980.

150.710. Intentional obstruction of lawful taking of wildlife.

  1. No person shall intentionally obstruct or disrupt the right of a person to lawfully take wildlife by hunting, trapping, or fishing.
  2. The Attorney General or any person directly affected may bring an action to restrain conduct unlawful under this section and may bring an action to recover damages.
  3. The officers of the Department of Fish and Wildlife Resources, or any other peace officer, police officer, state police officer, or sheriff may enforce this section.
  4. This section shall not apply to incidental interference with the taking of wildlife by hunting, trapping, or fishing caused by lawful activities including, but not limited to, farming, mining, or recreation.

History. Enact. Acts 1988, ch. 81, § 1(1)-(4), effective July 15, 1988.

150.720. Administrative regulations relating to cervids — Costs resulting from importation of diseased animal.

  1. The Department of Agriculture in cooperation with the Department of Fish and Wildlife Resources shall promulgate administrative regulations pertaining to health requirements, eradication of diseases, importation and unique individual identification, including visual identification tags, of privately owned and farm raised cervids maintained for the production of meat and other products. Nothing in this section shall limit the authority of the Department of Fish and Wildlife Resources to regulate the unique individual identification, including visual identification, of captive cervids that are not privately owned and farm-raised cervids maintained for the production of meat and other products. The Department of Fish and Wildlife Resources, in cooperation with the Department of Agriculture, shall promulgate administrative regulations pertaining to the holding of cervids.
  2. If any person imports a diseased animal into the Commonwealth in violation of the statutes and administrative regulations, then that person shall be responsible to the Department of Agriculture and the Department of Fish and Wildlife Resources for all costs incurred in the investigation, response, and eradication of that disease.

History. Enact. Acts 2002, ch. 88, § 1, effective March 28, 2002; 2009, ch. 62, § 2, effective June 25, 2009.

150.722. Authorized methods of disposal of cervid carcass material and waste by cervid meat processors, butchers or meat processors, and licensed taxidermists.

  1. As used in this section:
    1. “Butcher or meat processor” means any person or business entity that:
      1. Butchers or makes meat products from meat that is amenable under the Federal Meat Inspection Act, 21 U.S.C. secs. 601 et seq., and is not exempt from mandatory inspection by the United States Department of Agriculture’s Food Safety and Inspection Service; and
      2. Has been inspected and passed under voluntary Food Safety and Inspection Service inspection; and
    2. “Cervid meat processor” means any person or business entity that:
      1. Butchers or makes meat products from meat that is not amenable under the Federal Meat Inspection Act, 21 U.S.C. secs. 601 et seq., and is exempt from mandatory inspection by the United States Department of Agriculture’s Food Safety and Inspection Service;
      2. Has not been inspected and passed under voluntary Food Safety and Inspection Service inspection; and
      3. Is paid to butcher or make meat products for human consumption from ten (10) or more animals that are members of the animal family Cervidae per calendar year.
  2. Cervid meat processors, butchers or meat processors, and licensed taxidermists shall dispose of any unused cervid carcass material or cervid waste produced as a result of butchering, making meat products, or preparing, stuffing, or mounting wildlife by:
    1. Burying the carcass and all of its parts and products in the earth at a point which is never covered with the overflow of ponds or streams and which is not less than one hundred (100) feet distant from any watercourse, sinkhole, well, spring, public highway, residence, or stable. The carcass shall be placed in an opening in the earth at least four (4) feet deep, the abdominal and thoracic cavities opened wide their entire length, and the entire carcass covered with two (2) inches of quicklime and at least three (3) feet of earth;
    2. Removal of the carcass by a duly licensed rendering establishment; or
    3. Deposition of the carcass in a contained landfill approved pursuant to KRS Chapter 224.

HISTORY: 2018 ch. 28, § 1, effective July 14, 2018; 2020 ch. 115, § 1, effective July 15, 2020.

Legislative Research Commission Notes.

(7/15/2020). Under the authority of KRS 7.136(1), the Reviser of Statutes has altered the format of subsection (1) of this statute during codification to place the terms in alphabetical order. The words in the text were not changed.

Captive Cervid Permits

150.725. Definitions for KRS 150.725 to 150.735.

As used in KRS 150.725 to 150.735 :

  1. “Permit” means a permit to hold captive cervids;
  2. “Applicant” means a person or entity who has applied to the department for a permit to hold captive cervids;
  3. “Application” means an application to obtain a permit to hold captive cervids;
  4. “Hold” means to confine to a facility regulated under KRS 150.725 to 150.735 ;
  5. “Import” means to knowingly bring a captive cervid into the state for the purpose of that captive cervid remaining in the state or being slaughtered in the state. “Import” shall not include transporting a captive cervid into the state for the purpose of transporting that captive cervid through the state to a location out of the state. A captive cervid specified in this subsection shall be deemed to be in transit; and
  6. “In transit” means to transport a captive cervid through this Commonwealth by a direct route and in a continuous manner from a location out of state to another location out of state.

History. Enact. Acts 2006, ch. 159, § 1, effective July 12, 2006; 2009, ch. 62, § 3, effective June 25, 2009; 2010, ch. 158, § 9, effective July 15, 2010.

Legislative Research Commission Note.

(7/12/2006). Under the authority of KRS 7.136(1), the Reviser of Statutes has changed the internal numbering system in this statute, inserting subsection numbers [(1), (2), and (3)] in place of paragraph designations [(a), (b), and (c)] and deleting the subsection number at the beginning of the statute. The words of the text were not changed.

150.730. Permits to hold captive cervids — Amendments to existing holding and fencing requirements — Duties of department.

  1. Within sixty (60) days of July 12, 2006, the Department of Fish and Wildlife Resources shall promulgate administrative regulations amending existing requirements for a permit to hold captive cervids in accordance with the provisions of KRS 150.725 to 150.735 . All other fencing and holding requirements specified in existing administrative regulation for a permit to hold captive cervids adopted on January 5, 2004, shall not be amended in a manner that is in conflict with KRS 150.725 to 150.735 or that increases the stringency of those requirements, except when as ordered by the state veterinarian for disease control and as provided by law or in administrative regulations for the Department of Fish and Wildlife Resources to control emergency conditions that detrimentally affect wildlife.
  2. The department shall have thirty (30) days from the date it receives a completed application to either issue or deny captive permits for propagation and taking of captive cervids by any legal hunting or slaughter methods. If an application demonstrates that the applicant complies with the statutory and administrative requirements for a permit and the applicant removes all wild cervids from the facility, the department shall issue the permit.

History. Enact. Acts 2006, ch. 159, § 2, effective July 12, 2006.

150.735. Placement of primary containment fence — Expansion of captive cervid facility — Transfer of permits — Violation of captive cervid law or regulation — Rights and potential penalties.

  1. An applicant may place his or her primary containment fence on the property line. The department shall not require applicants to set primary containment fences any distance away from the property line.
  2. Any person who operates a captive cervid facility in accordance with this chapter may petition the department at any time to expand his or her captive cervid facility, provided the expansion is adjacent and connected to his or her existing facility and continues to comply with all applicable statutes and regulations.
  3. A lawful permit for an existing captive cervid facility may be transferred, along with any related benefits, rights, responsibilities, and liabilities, to any person who purchases or otherwise takes ownership of the land area on which the captive cervid facility exists. Within thirty (30) days of the date of any transfer of permits, the party transferring the permit shall notify the department of the following:
    1. Name and address of the party to which the permit is to be transferred;
    2. Permit number;
    3. Deed indicating change of land ownership; and
    4. Any additional information the department deems necessary.
  4. If any person holding captive cervids is determined in violation of Kentucky statute or administrative regulation pertaining to the holding of those cervids, then that person shall have sixty (60) days from when the violation was identified to come into compliance. The permit holder has the following rights and potential penalties during the sixty (60) day period:
    1. During the sixty (60) day period, the permit holder may continue to harvest, sell, or slaughter cervids unless the permit has been suspended in accordance with administrative regulations promulgated by the department;
    2. Failure to come into compliance within sixty (60) days of the notice of violation may result in a citation and cause the captive cervids to be immediately seized by the department or the permit to be suspended; and
    3. The individual whose cervids were seized or whose permit was suspended under paragraph (a) or (b) of this subsection may request an administrative hearing pursuant to KRS Chapter 13B within thirty (30) days of the issuance of a citation or suspension of the permit and may appeal the final decision to Franklin Circuit Court in accordance with KRS Chapter 13B. Pending the final outcome from all appeals, the seized cervids may be disposed of by the department without compensation to the owner.

History. Enact. Acts 2006, ch. 159, § 3, effective July 12, 2006; 2009, ch. 62, § 4, effective June 25, 2009.

150.740. Ban on live Cervidae importation except under certain conditions — Penalties — Reports on chronic wasting disease to be submitted to Interim Joint Committees annually — Authority of department to seize captive cervids — Hearing — Appeal.

  1. There shall be a ban on the importation of live members of the animal family Cervidae into the Commonwealth that have not been subject to a program of surveillance and identification for cervid chronic wasting disease (CWD) that meets or exceeds:
    1. The requirements of the Kentucky Cervid CWD Surveillance and Identification (CCWDSI) Program set forth in this section and in administrative regulations promulgated by the Kentucky Department of Agriculture; and
    2. Any other health requirements as regulated by the Kentucky Department of Agriculture or the United States Department of Agriculture for cervids.
  2. The Kentucky Department of Agriculture shall be responsible for authorizing importation of the members of the animal family Cervidae into the Commonwealth that have been subject to a program of surveillance and identification for cervid CWD that meets or exceeds:
    1. The requirements of the Kentucky CCWDSI Program set forth in this section and in administrative regulations promulgated by the Kentucky Department of Agriculture; and
    2. Any other health requirements as regulated by the Kentucky Department of Agriculture or the United States Department of Agriculture for cervids.
  3. Members of the animal family Cervidae shall not be eligible for importation into the Commonwealth unless the program of surveillance and identification for cervid CWD to which they have been subject:
    1. Has been certified by the exporting state’s state veterinarian or agency having jurisdiction over that state’s surveillance and identification program;
    2. Has been approved by the Kentucky state veterinarian as meeting or exceeding the standards imposed under the Kentucky CCWDSI Program; and
    3. Meets, at minimum, the following requirements:
      1. The program shall require cervid owners to obtain identification and laboratory diagnosis from brain tissue as directed by the exporting state’s state veterinarian or agency with jurisdiction for cervids twelve (12) months of age or greater that:
        1. Display clinical signs of CWD;
        2. Die, including deaths by slaughter or by hunting, including hunting on hunting preserves; or
        3. Are ill or injured regardless of whether the illness or injury results in death; and
      2. The program shall require cervid owners to obtain cervids from herds that have been monitored for at least five (5) years and that have complied with the standards contained in the Kentucky CCWDSI Program.
  4. Cervids originating from a state that has reported a confirmed case of CWD in wild or captive cervids shall not be imported into Kentucky until The United States Department of Agriculture approves:
    1. Regulations that allow importation from those states; and
    2. A live test for CWD that is available for live testing of cervids.
  5. Importation of members of the animal family Cervidae into the Commonwealth shall be consistent with this section and with administrative regulations promulgated by the Kentucky Department of Agriculture in cooperation with the Kentucky Department of Fish and Wildlife Resources.
  6. A person shall be guilty of a Class D felony upon conviction for violating this section. Upon conviction of a second violation of this section and in addition to all other penalties, a person shall be permanently ineligible for renewal of a captive cervid permit. On or before November 1 of each year, the Department of Fish and Wildlife Resources and the Department of Agriculture, Office of the State Veterinarian, respectively shall issue reports to the Interim Joint Committee on Agriculture and the Interim Joint Committee on Natural Resources and Environment on the status of chronic wasting disease, and the reports may include the status of other animal or wildlife diseases in Kentucky and the United States. The reports shall be used for the purpose of determining the need for modifications to the statutory ban on the importation of cervids into the Commonwealth.
  7. The Department of Fish and Wildlife Resources shall have the authority to immediately, and without compensation to the owner, seize captive cervids that have been imported into the Commonwealth contrary to this section. The individual whose cervids were seized may request an administrative hearing pursuant to KRS Chapter 13B within thirty (30) days of the department’s seizure and may appeal the final decision to Franklin Circuit Court in accordance with KRS Chapter 13B. Pending the final outcome of all appeals, the seized cervids may be disposed of by the department without compensation to the owner.
  8. The department shall have the authority to immediately, and without compensation to the owner, seize and destroy captive cervids that are in the process of being imported into the Commonwealth contrary to this section.
  9. A captive cervid originating from outside the Commonwealth of Kentucky which is in transit, as defined in KRS 150.725 and which is being transported through the Commonwealth to another state or nation of destination shall meet the entry requirements of the state or nation of destination.
  10. A person intending to transport a captive cervid through Kentucky shall, prior to the captive cervid entering Kentucky, obtain a transportation permit from the Office of the State Veterinarian. This permit shall specify that:
    1. A captive cervid being transported through Kentucky shall not remain in Kentucky for more than twenty-four (24) hours from the time of entry and, if this requirement cannot be met once the animal is in Kentucky, the Office of the State Veterinarian shall be contacted to secure a variance to the permit;
    2. A captive cervid being transported through Kentucky shall not leave the transport vehicle while in Kentucky; and
    3. The person transporting the captive cervid through Kentucky shall follow the routes specified in the transport permit, if this requirement cannot be met once the animal is in Kentucky, the Office of the State Veterinarian shall be contacted to secure a variance to the permit.

History. Enact. Acts 2006, ch. 159, § 4, effective July 12, 2006; 2009, ch. 62, § 5, effective June 25, 2009; 2010, ch. 135, § 1, effective July 15, 2010; 2010, ch. 158, § 10, effective July 15, 2010.

Legislative Research Commission Note.

(7/15/2010). This section was amended by 2010 Ky. Acts chs. 135 and 158, which do not appear to be in conflict and have been codified together.

NOTES TO DECISIONS

1.In General.

Because a state court had held KRS 150.740 to be unconstitutionally vague, and no state appellate court had reviewed the issue, it was uncertain whether the statute would be enforced by personnel of Kentucky’s Department of Fish and Wildlife Resources if any member of plaintiff deer farmers’ association transported cervids along Kentucky’s roadways; thus, there was no concrete factual context for addressing KRS 150.740 on an as-applied basis, a facial challenge to the statute was premature, and the association’s complaint for declaratory relief was dismissed as unripe. N. Am. Deer Farmers Ass'n v. Gassett, 2008 U.S. Dist. LEXIS 66946 (E.D. Ky. Sept. 2, 2008).

KRS 150.740 is unconstitutional as being void for vagueness; it was reasonable to believe that defendant drove through Kentucky in good faith with no notice that merely driving through Kentucky with deer and elk was a felony; the statute does not define the word “importation” or provide any limitation on the common meaning of importation, there was no administrative regulation construing the statute, and it would be reasonable for a defendant to believe that as long as he does not unload cervids in Kentucky, he will not be importing them. Commonwealth v. Looper, 294 S.W.3d 39, 2009 Ky. App. LEXIS 61 (Ky. Ct. App. 2009).

Penalties

150.990. Penalties.

  1. Each bird, fish, or animal taken, possessed, bought, sold, or transported and each device used or possessed contrary to the provisions of this chapter or any administrative regulation promulgated by the commission thereunder shall constitute a separate offense. The penalties prescribed in this section shall be for each offense.
    1. Any person who fails to appear pursuant to a citation or summons issued by a conservation officer or peace officer of this Commonwealth for violation of this chapter or any administrative regulation promulgated thereunder shall forfeit his or her license or, if that person is license-exempt, shall forfeit the privilege to perform the acts authorized by the license. The individual shall not be permitted to purchase another license or exercise the privileges granted by a license until the citation or summons is resolved. The court shall notify the department whenever a person has failed to appear pursuant to a citation or summons for a violation of this chapter or any administrative regulation promulgated thereunder. (2) (a) Any person who fails to appear pursuant to a citation or summons issued by a conservation officer or peace officer of this Commonwealth for violation of this chapter or any administrative regulation promulgated thereunder shall forfeit his or her license or, if that person is license-exempt, shall forfeit the privilege to perform the acts authorized by the license. The individual shall not be permitted to purchase another license or exercise the privileges granted by a license until the citation or summons is resolved. The court shall notify the department whenever a person has failed to appear pursuant to a citation or summons for a violation of this chapter or any administrative regulation promulgated thereunder.
    2. Any person who violates any of the provisions of this chapter or any administrative regulations promulgated by the commission thereunder may, in addition to the penalties provided in subsections (3), (4), (5), (6), (7), and (8) of this section, forfeit his license or, if that person is license-exempt, may forfeit the privilege to perform the acts authorized by the license and shall not be permitted to purchase another license or exercise the privileges granted by a license during the same license year. No fines, penalty, or judgment assessed or rendered under this chapter shall be suspended, reduced, or remitted otherwise than expressly provided by law. Any person who violates any administrative regulation which has been or may be promulgated by the commission under any provisions of this chapter shall be subject to the same penalty as is provided for the violation of any provisions of this chapter under which the administrative regulation is promulgated.
  2. Any person who violates any of the provisions of KRS 150.120 , 150.170 , 150.235(1), 150.280 , 150.320 , 150.330(2), 150.355 , 150.362 , 150.400 , 150.410 , 150.415 , 150.416 , 150.445 , 150.450 , 150.470 , 150.603 , or 150.722(2), or any of the provisions of this chapter or any administrative regulation promulgated by the commission for which no definite fine or imprisonment is fixed shall be fined not less than fifty dollars ($50) nor more than five hundred dollars ($500).
  3. Any person who violates any of the provisions of KRS 150.290 , 150.300 , 150.340 , 150.360 , 150.362(1), 150.485 , 150.600 , 150.630 , 150.660 , the provisions of KRS 150.195(5) to (8), or KRS 150.660 (3) shall be fined not less than fifty dollars ($50) nor more than five hundred dollars ($500) or be imprisoned for not more than six (6) months, or both. Also, any person violating the provisions of KRS 150.300 shall be assessed treble damages as provided in KRS 150.690 or 150.700 . Damages assessed under this subsection shall be ordered to be paid directly to the department. The court shall not direct that the damages be paid through the circuit clerk.
  4. Any person who violates any of the provisions of KRS 150.411 , 150.412 , or 150.417 shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500).
  5. Any person who violates any of the provisions of KRS 150.183 , 150.305 , 150.365 , 150.370 , 150.330(1), 150.235(2), (3), or (4), or 150.363 shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500) or imprisoned for not more than six (6) months, or both.
  6. Any person who violates any of the provisions of KRS 150.460 shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500) or imprisoned for not more than six (6) months, or both, and in addition to these penalties shall be liable to the department in an amount not to exceed the replacement value of the fish and wildlife which has been killed or destroyed. Costs assessed for the restoration of wildlife under this subsection shall be ordered to be paid directly to the department. The court shall not direct that the costs be paid through the circuit clerk.
  7. Any person who violates the provisions of KRS 150.180 , 150.520 , 150.525 , or administrative regulations issued thereunder shall for the first offense be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000); and shall for a second offense be fined not less than five hundred dollars ($500) nor more than one thousand five hundred dollars ($1,500); and for any subsequent offense, be fined two thousand dollars ($2,000).
  8. Any person who violates the provisions of KRS 150.520 or administrative regulations issued thereunder shall, if the violation relates to methods of taking mussels, for a first offense be imprisoned in the county jail for no more than thirty (30) days; for a second offense be imprisoned in the county jail for no more than six (6) months; and for any subsequent offense be imprisoned in the county jail for no more than one (1) year. The penalties for violation of this subsection shall be in addition to the penalties for violation of subsection (8).
  9. Any person who violates any of the provisions of KRS 150.4111 , 150.640 , or KRS 150.450(2) or (3) shall be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).
  10. Any person who violates any of the provisions of KRS 150.390 or KRS 150.092(4) shall be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) or imprisoned for not less than thirty (30) days nor more than one (1) year, or both. In addition to the penalties prescribed above, he or she shall forfeit his license or, if license-exempt, the privilege to perform the acts authorized by the license for a period of one (1) to three (3) years and shall be liable to the department in an amount reasonably necessary to replace any deer, wild turkey, or bear taken in violation of KRS 150.390 and for violations of KRS 150.092(4) shall be liable to the landowner or occupant for reasonable compensation for damages. Wildlife replacement costs assessed under this subsection shall be ordered to be paid directly to the department. The court shall not direct that the damages be paid through the circuit clerk. Damages assessed under this subsection shall be ordered to be paid directly to the landowner or occupant. The court shall not direct that the damages be paid through the circuit clerk. Any person who possesses, takes, or molests a wild elk in violation of KRS 150.390 or administrative regulations promulgated under authority of that section shall be fined not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000) or imprisoned for up to six (6) months, or both. In addition to these penalties, the person shall pay to the department an amount not to exceed the greater of the replacement cost of the wild elk or double any monetary gain realized from the illegal activity and shall forfeit his or her license or, if license-exempt, the privilege to perform the acts authorized by the license for a period of one (1) to three (3) years.
  11. Any person who violates any of the provisions of KRS 150.090 other than a criminal homicide or an assault against an officer enforcing the provisions of this chapter, KRS Chapter 235, or the administrative regulations issued thereunder shall be guilty of a Class A misdemeanor.
  12. Any person who commits a criminal homicide or an assault against an officer enforcing the provisions of this chapter, KRS Chapter 235, or the administrative regulations issued thereunder shall be subject to the penalties specified for the offense under KRS Chapter 507 or 508, as appropriate.
  13. A person shall be guilty of a Class B misdemeanor upon the first conviction for a violation of KRS 150.710 . A subsequent conviction shall be a Class A misdemeanor.
  14. Any person who violates the provisions of KRS 150.092 or the administrative regulations promulgated thereunder for which no other penalty is specified elsewhere in this section shall for the first offense be fined not less than one hundred dollars ($100) nor more than three hundred dollars ($300); for the second offense, be fined not less than three hundred dollars ($300) nor more than one thousand dollars ($1,000); and for subsequent offenses, shall forfeit the license or, if license-exempt, the privilege to perform the acts authorized by the license, for one (1) year and shall be fined not less than one thousand dollars ($1,000) or be imprisoned in the county jail for up to one (1) year, or both. In addition to the penalties prescribed in this subsection, the violator shall be liable to the landowner or tenant for the replacement cost of any property which was damaged or destroyed by his actions. Damages assessed under this subsection shall be ordered to be paid directly to the landowner or the tenant. The court shall not direct that the damages be paid through the circuit clerk.
    1. Any person who knowingly violates KRS 150.361 shall for a first offense be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) or be imprisoned in the county jail for not more than six (6) months, or both. (16) (a) Any person who knowingly violates KRS 150.361 shall for a first offense be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) or be imprisoned in the county jail for not more than six (6) months, or both.
    2. Any person who knowingly violates KRS 150.361 shall for a second or subsequent offense be fined not less than five hundred dollars ($500) nor more than one thousand five hundred dollars ($1,500) or be imprisoned in the county jail for not more than six (6) months, or both.
    3. In addition to the penalties specified in paragraphs (a), (b), and (d) of this subsection, a person knowingly violating KRS 150.361 shall forfeit his or her hunting license or, if license-exempt, the privilege to perform the acts authorized by the license for a period of not less than one (1) nor more than three (3) years.
    4. In addition to the penalties specified in paragraphs (a), (b), and (c) of this subsection any person knowingly violating KRS 150.361 shall be liable to the department in an amount not to exceed the greater of the replacement value of any wildlife killed or wounded in violation of KRS 150.361 or double the amount of the monetary gain from knowingly violating KRS 150.361.
    5. Wildlife replacement costs or other costs specified in paragraph (d) of this subsection shall be ordered paid directly to the department. The court shall not direct that the replacement costs be paid through the circuit clerk.
  15. Any person convicted of violating KRS 150.186 shall be guilty of a Class A misdemeanor and shall, whether licensed or license-exempt, forfeit his or her right to hunt, fish, trap, or be licensed as a commercial guide for a period of ten (10) years.

HISTORY: 1253, 1392a-3, 1954d-13, 1954d-14, 1954d-16, 1954d-29, 1954d-33, 1954d-34, 1954d-38, 1954d-39, 1954d-41, 1954d-49, 1954d-51, 1954d-52, 1954d-52c, 1954d-53, 1954d-54, 1954d-55, 1954d-56, 1954d-57, 1954d-59, 1954d-60, 1954d-61, 1954d-62, 1954d-62d, 1954d-68, 1954d-69, 1954d-71: amend. Acts 1942, ch. 68, § 55; 1944, ch. 124, § 17; 1946, ch. 84, § 31; 1948, ch. 78, §§ 24, 25, 26; 1948, ch. 77, § 8; 1948, ch. 50, § 1(2); 1952, ch. 200, § 72; 1956, ch. 93, § 4; 1956, ch. 115, § 23; 1968, ch. 38, § 28; 1970, ch. 92, § 28; 1972, ch. 40, § 1(4), effective January 1, 1973; 1978, ch. 178, § 18, effective June 17, 1978; 1978, ch. 181, § 2, effective June 17, 1978; 1978, ch. 384, § 291, effective June 17, 1978; 1980, ch. 49, § 8, effective July 15, 1980; 1984, ch. 194, § 2, effective July 13, 1984, 1986, ch. 265, § 26, effective July 15, 1986; 1986, ch. 424, § 2, effective July 15, 1986; 1988, ch. 81, § 1(5), effective July 15, 1988; 1990, ch. 474, § 11, effective July 13, 1990; 1992, ch. 353, § 10, effective July 14, 1992; 1994, ch. 239, § 10, effective July 15, 1994; 1994, ch. 413, § 5, effective July 15, 1994; 1996, ch. 250, § 2, effective July 15, 1996; 1998, ch. 24, § 2, effective March 4, 1998; 1998, ch. 275, § 5, effective July 15, 1998; 1998, ch. 606, § 169, effective July 15, 1998; 2000, ch. 512, § 2, effective July 14, 2000; 2002, ch. 183, § 13, effective August 1, 2002; 2006, ch. 94, § 3, effective July 12, 2006; 2006, ch. 209, § 2, effective July 12, 2006; 2010, ch. 158, § 11, effective July 15, 2010; 2012, ch. 82, § 2, effective July 12, 2012; 2018 ch. 28, § 2, effective July 14, 2018.

Legislative Research Commission Note.

(7/15/2010). 2010 Ky. Acts ch. 158, sec. 11, amended this section and added the phrase “the knowing violating of” in subsection 16(d). From an examination of the bill and of KRS 501.020 , “Definition of mental states,” it is apparent that the phrase used should have been “knowingly violating.” This change has been made by the Reviser of Statutes under the authority of KRS 7.136 .

NOTES TO DECISIONS

1.Appeal by Commonwealth.

The Commonwealth may appeal from a judgment of acquittal by the trial court for a violation under KRS 150.370 or subsection (2) of KRS 150.390 and upon reversal have a new trial notwithstanding the former verdict and judgment of acquittal since the violations are misdemeanors and the maximum penalties under this section are fines. Commonwealth v. Devine, 396 S.W.2d 60, 1965 Ky. LEXIS 96 ( Ky. 1965 ).

2.Indictment Under the Common Law.

Kentucky is a common-law state and in states where the common law as to crime is in force, if a statute fixing a penalty for an offense does not expressly or by implication cut off the common-law offense, the statute must be taken to intend only a cumulative remedy and the common-law remedy still remains so an indictment under the common law for the public offense of maintaining a nuisance by polluting streams and killing the fish therein is valid even though KRS 150.460 covers the same offense. Commonwealth v. Wiman, 308 Ky. 565 , 215 S.W.2d 283, 1948 Ky. LEXIS 1004 ( Ky. 1948 ).

3.Verdict.

Where the jury heard testimony as to the cost of restocking a river with fish to replace those killed by defendant’s pollution, there was no error either in allowing the testimony, or in a verdict for $2,308, approximately $3,000 less than requested. Murray v. Commonwealth, 584 S.W.2d 403, 1979 Ky. App. LEXIS 427 (Ky. Ct. App. 1979).

Cited:

Commonwealth v. Hoover’s Adm’r, 274 Ky. 472 , 118 S.W.2d 741, 1938 Ky. LEXIS 278 ( Ky. 1938 ); Little v. Commonwealth, 289 Ky. 475 , 158 S.W.2d 955, 1941 Ky. LEXIS 32 ( Ky. 1941 ); Commonwealth v. Brown Forman Distillers Corp., 307 Ky. 597 , 211 S.W.2d 858, 1948 Ky. LEXIS 800 ( Ky. 1948 ).

Opinions of Attorney General.

Subsection (14) (now subsection (2)) of this section is not in conflict with KRS 533.020 , since it expressly notes that no fines assessed under this chapter (150) shall be suspended “otherwise than expressly provided by law” and KRS 533.020 , in permitting probation of fines, is an express provision of law so permitting the suspension of fines. OAG 83-284 .

150.991. Penalty for entry on land without consent. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 74, § 1) was repealed by Acts 1974, ch. 406, § 336, effective January 1, 1975.

150.992. Penalty for use of smoke or explosives to capture game. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts. 1964, ch. 158, § 15) was repealed by Acts 1988, ch. 365, § 20, effective July 15, 1988.

150.993. Penalty for entry on land without consent. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1976, ch. 227, §§ 1, 2; 1984, ch. 194, § 1, effective July 13, 1984; 1986, ch. 477, § 1; effective July 15, 1986) was repealed by Acts 1988, ch. 365, § 20, effective July 15, 1988.

150.995. Violations for which additional restitution shall be paid to department.

  1. As used in this section, “gross score” means the Boone and Crockett score derived by calculating the measurements of the antlers of a white-tailed deer or elk in accordance with subsection (2) of this section.
  2. The gross score of an antlered white-tailed deer or elk shall be calculated in accordance with the Boone and Crockett Club’s “Measuring and Scoring North American Big Game Trophies, Third Edition, 2009” and shall be taken by an official Boone and Crockett Club scorer. Measurements taken for the purpose of calculating the gross score may be taken at any time, with no drying time being required.
  3. A person found guilty of a violation of the provisions of this chapter regarding the taking, buying, selling, transporting, or possessing of an antlered white-tailed deer with a gross score of more than one hundred twenty-five (125) inches shall pay to the department an additional restitution value calculated by squaring the difference between the gross score and one hundred (100) and multiplying the resulting number by one dollar and sixty-five cents ($1.65).
  4. A person found guilty of a violation of the provisions of this chapter regarding the taking, buying, selling, transporting, or possessing of an antlered elk with a gross score of more than two hundred eighty (280) inches shall pay to the department an additional restitution value calculated by squaring the difference between the gross score and two hundred fifty-five (255) and multiplying the resulting number by one dollar and sixty-five cents ($1.65).
  5. A person found guilty of a violation of the provisions of this chapter regarding the taking, buying, selling, transporting, or possessing of a bear shall pay to the department an additional restitution value of one thousand dollars ($1,000).
  6. A person found guilty of a violation of the provisions of this chapter regarding the taking, buying, selling, transporting, or possessing of a turkey shall pay to the department an additional restitution value of five hundred dollars ($500).
  7. A person found guilty of a violation of the provisions of this chapter regarding the taking, buying, selling, transporting, or possessing of a bobcat shall pay to the department an additional restitution value of five hundred dollars ($500).
  8. The commissioner or designee may bring a civil action to recover the restitution value owed to the department under subsection (3), (4), (5), (6), or (7) of this section. A person who owes restitution to the department under subsection (3), (4), (5), (6), or (7) of this section shall forfeit his or her hunting license or, if license-exempt, the privilege to perform the hunting acts authorized by the license until the restitution owed has been paid.
  9. The restitution required by this section shall be in addition to all other restitution, replacement costs, and civil or criminal penalties authorized by this chapter and the administrative regulations promulgated hereunder.

History. Enact. Acts 2013, ch. 92, § 2, effective June 25, 2013.

150.999. Prepayment of fines subject to certain conditions.

  1. All offenses classified as violations under this chapter shall be prepayable except for:
    1. An offense where evidence of the commission of the offense, or of another offense, or a deadly weapon or dangerous instrument as defined in KRS 500.080 is seized and the citation is so marked and a court date set;
    2. An offense is cited with another offense that is not prepayable and the citation is so marked and a court date set; or
    3. An arrest is made under KRS 431.015 .
  2. In the event that a prepayable offense is cited with another offense that is not prepayable, a court appearance shall be required on all of the offenses as required by KRS 431.452 .

History. Enact. Acts 2000, ch. 512, § 1, effective July 14, 2000.

CHAPTER 151 Geology and Water Resources

151.010. Establishment and personnel of survey.

There is hereby established and shall be maintained within the University of Kentucky a bureau of geological research and information to be known and designated as the Kentucky Geological Survey. The survey shall be under the direction of a person who shall be designated director of the survey and who shall be appointed in the same manner as other staff members of the university. The survey shall have a nonteaching staff to be appointed in the same manner as other staff members of the university. The director or a member of the nonteaching staff shall be designated state geologist and all members of the survey shall be employees of the University of Kentucky within the provisions of KRS 164.220 to 164.230 , inclusive.

History. Enact. Acts 1948, ch. 224, § 2; 1958, ch. 122, § 1.

Research References and Practice Aids

Cross-References.

Development, Department of, KRS ch. 154.

Mines and minerals, KRS Tit. XXVIII.

Natural Resources and Environmental Protection Cabinet, KRS ch. 146.

State universities and colleges, regional education; archaeology, KRS ch. 164.

Kentucky Law Journal.

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

151.020. Other departments of university to cooperate.

The other departments of the University of Kentucky, and the teaching staff of the department of geology, shall furnish cooperative services in carrying out the functions of the Kentucky Geological Survey.

History. Enact. Acts 1948, ch. 224, § 2.

151.030. Duties and functions of survey.

The Kentucky Geological Survey shall make a continuing geological study of the state and perform such other functions as are directed toward the development of the mineral resources of the state.

History. Enact. Acts 1948, ch. 224, § 3.

151.035. Official repository for groundwater information.

  1. The Kentucky Geological Survey shall be designated as the Commonwealth’s official repository for all information relating to the occurrence and quality of groundwater as defined in KRS 151.100 .
  2. The Energy and Environment Cabinet, the Cabinet for Health and Family Services, and any other cabinet, department, commission, board, or governmental agency, except as provided in subsection (4) of this section, that, by statute, administrative regulation, or as part of its routine activities, collects or generates information about groundwater, shall transmit or cause to be transmitted that information to the Kentucky Geological Survey within ninety (90) days of receipt or generation, or a time determined between the Geological Survey and the other party.
  3. The information to be transmitted may include:
    1. Drillers logs and completion reports of wells drilled or dug for the purpose of producing, testing, or monitoring groundwater;
    2. Geophysical logs of water wells;
    3. Water quality analyses of both organic and inorganic constituents;
    4. Results of all pump, extraction, and injection tests;
    5. Flow determinations of surface discharges of groundwater; and
    6. Any additional data as the Kentucky Geological Survey shall require.
  4. All institutions of higher learning shall be encouraged, but not required, to submit to the Kentucky Geological Survey copies of all research data, including theses and dissertations relating to the occurrence or quality of groundwater.

History. Enact. Acts 1990, ch. 416, § 1, effective July 13, 1990; 1998, ch. 426, § 105, effective July 15, 1998; 2005, ch. 99, § 121, effective June 20, 2005; 2010, ch. 24, § 176, effective July 15, 2010.

151.040. Reports and publications.

The Kentucky Geological Survey shall report periodically on its findings to the Governor and General Assembly and such reports shall be available to the public. It shall at all times furnish cooperative services to the Cabinet for Economic Development and such other state agencies as may request its services, and make available to those agencies such information and data as are at the disposal of the survey. The survey may issue reports, maps, and other publications for sale at a price prescribed by the governing authorities of the University of Kentucky.

History. Enact. Acts 1948, ch. 224, § 4; 1958, ch. 122, § 2; 1982, ch. 396, § 22, effective July 15, 1982; 1992, ch. 105, § 66, effective July 14, 1992.

151.050. Transfer of facilities of former Division of Geology. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1948, ch. 224, § 5) was repealed by Acts 1966, ch. 255, § 283.

151.100. Definitions for KRS 151.110 to 151.460 and 151.990.

As used in KRS 151.110 to 151.460 and 151.990 , the words listed herein shall have the following respective meanings, unless another or different meaning or intent shall be clearly indicated by the context:

  1. The word “authority” shall mean the Water Resources Authority of Kentucky;
  2. The word “cabinet” shall mean the Energy and Environment Cabinet;
  3. The word “stream” or “watercourse” shall mean any river, creek or channel, having well defined banks, in which water flows for substantial periods of the year to drain a given area, or any lake or other body of water in the Commonwealth;
  4. The word “diffused surface water” shall mean that water which comes from falling rain or melting snow or ice, and which is diffused over the surface of the ground, or which temporarily flows vagrantly upon or over the surface of the ground as the natural elevations and depressions of the surface of the earth may guide it, until such water reaches a stream or watercourse;
  5. The word “ground water” or “subterranean water” shall mean all water which fills the natural openings under the earth’s surface including all underground watercourses, artesian basins, reservoirs, lakes, and other bodies of water below the earth’s surface;
  6. The word “floodway” shall mean that area of a stream or watercourse necessary to carry off flood water as determined by the secretary;
  7. The word “floodplain” shall mean the area in a watershed that is subject to inundation;
  8. The word “watershed” shall mean all the area from which all drainage passes a given point downstream;
  9. The word “domestic use” shall mean the use of water for ordinary household purposes, and drinking water for poultry, livestock, and domestic animals;
  10. The word “water resources project” or “project” shall mean any structural or nonstructural study, plan, design, construction, development, improvement or any other activity including programs for management, intended to conserve and develop the water resources of the Commonwealth and shall include all aspects of water supply, flood damage abatement, navigation, water-related recreation, and land conservation facilities and measures;
  11. The word “withdraw” or “withdrawal of water” shall mean the actual removal or taking of water from any stream, watercourse or other body of public water;
  12. The word “dam” shall mean any artificial barrier, including appurtenant works, which does or can impound or divert water, and which either:
    1. Is or will be twenty-five (25) feet or more in height from the natural bed of the stream or watercourse at the downstream toe of the barrier, as determined by the cabinet; or
    2. Has or will have an impounding capacity at maximum water storage elevation of fifty (50) acre-feet or more;
  13. “Embankment dam” shall mean any dam constructed of excavated natural materials or of industrial waste materials;
  14. “Gravity dam” shall mean a dam constructed of concrete or masonry that relies on its weight for stability;
  15. The word “person” shall mean any individual, public or private corporation, political subdivision, government agency, municipality, copartnership, association, firm, trust, estate, or other entity whatsoever;
  16. “Secretary” shall mean the secretary of the Energy and Environment Cabinet;
  17. “Authorized representative” shall mean an individual specifically authorized by the secretary to act in his behalf;
  18. The word “reservoir” shall mean any basin which contains or will contain the water impounded by a dam;
  19. “Owner” shall mean any person who owns an interest in, controls, or operates a dam; and
  20. “Livestock” shall mean cattle, sheep, swine, goats, horses, alpacas, llamas, buffaloes, and any other animals of the bovine, ovine, porcine, caprine, equine, or camelid species.

HISTORY: Enact. Acts 1966, ch. 23, § 1; 1974, ch. 74, Art. III, § 13(9); 1974, ch. 285, § 1; 1982, ch. 214, § 1, effective July 15, 1982; 1984, ch. 111, § 84, effective July 13, 1984; 1984, ch. 216, § 1, effective July 13, 1984; 1988, ch. 405, § 1, effective July 15, 1988; 2010, ch. 24, § 177, effective July 15, 2010; 2017 ch. 129, § 5, effective June 29, 2017.

NOTES TO DECISIONS

1.Duty of Dam Owner.

A dam owner who creates an artificial lake does not have a duty to maintain the water levels for the benefit of upper riparian owners. Green v. City of Williamstown, 848 F. Supp. 102, 1994 U.S. Dist. LEXIS 3796 (E.D. Ky. 1994 ).

Opinions of Attorney General.

The assurances executed by the water resources authority to the United States of America, in connection with the construction of water storage capacity in the Red River Lake project, do not adequately set out the manner and means of payment necessary to make the assurances binding. OAG 73-576 .

The water resources authority of Kentucky is not legally bound by the assurances executed in favor of the United States of America on April 29, 1971, in connection with the construction of water storage capacity in the Red River Lake project. OAG 73-576 .

Research References and Practice Aids

Kentucky Law Journal.

Ausness, Water use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

151.110. Water resources policy — Duties of cabinet.

    1. The conservation, development, and proper use of the water resources of the Commonwealth of Kentucky have become of vital importance as a result of population expansion and concentration, industrial growth, technological advances, and an ever increasing demand for water for varied domestic, agricultural, industrial, municipal, and recreational uses. It is recognized by the General Assembly that excessive rainfall during certain seasons of the year causes damage from overflowing streams. However, prolonged droughts at other seasons curtail industrial, municipal, agricultural, and recreational uses of water and seriously threaten the continued growth and economic well-being of the Commonwealth. The advancement of the safety, happiness, and welfare of the people and the protection of property require that the power inherent in the people be utilized to promote and to regulate the conservation, development, and most beneficial use of the water resources. It is hereby declared that the general welfare requires that the water resources of the Commonwealth be put to the beneficial use to the fullest extent of which they are capable, that the waste or nonbeneficial use of water be prevented, and that the conservation and beneficial use of water be exercised in the interest of the people. Therefore, it is declared the policy of the Commonwealth to actively encourage and to provide financial, technical, or other support for projects that will control and store our water resources in order that the continued growth and development of the Commonwealth might be assured. To that end, it is declared to be the purpose of KRS Chapters 146, 149, 151, 224, 262, and KRS 350.029 and 433.750 to 433.757 for the Commonwealth to permit, regulate, and participate in the construction or financing of facilities to store surplus surface water for future use; to conserve and develop the ground water resources of the Commonwealth; to require local communities to develop long range water supply plans; to protect the rights of all persons equitably and reasonably interested in the use and availability of water; to prohibit the pollution of water resources and to maintain the normal flow of all streams so that the proper quantity and quality of water will be available at all times to the people of the Commonwealth; to provide for the adequate disposition of water among the people of the Commonwealth entitled to its use during severe droughts or times of emergency; to prevent harmful overflows and flooding; to regulate the construction, maintenance, and operation of all dams and other barriers of streams; to prevent the obstruction of streams and floodways by the dumping of substances therein; to keep accurate records on the amount of water withdrawal from streams and watercourses and reasonably regulate the amount of withdrawal of public water; and to engage in other activities as may be necessary to conserve and develop the water resources of the Commonwealth of Kentucky, and to ensure adequate supply of water for domestic, agricultural, recreational, and economic development uses. (1) (a) The conservation, development, and proper use of the water resources of the Commonwealth of Kentucky have become of vital importance as a result of population expansion and concentration, industrial growth, technological advances, and an ever increasing demand for water for varied domestic, agricultural, industrial, municipal, and recreational uses. It is recognized by the General Assembly that excessive rainfall during certain seasons of the year causes damage from overflowing streams. However, prolonged droughts at other seasons curtail industrial, municipal, agricultural, and recreational uses of water and seriously threaten the continued growth and economic well-being of the Commonwealth. The advancement of the safety, happiness, and welfare of the people and the protection of property require that the power inherent in the people be utilized to promote and to regulate the conservation, development, and most beneficial use of the water resources. It is hereby declared that the general welfare requires that the water resources of the Commonwealth be put to the beneficial use to the fullest extent of which they are capable, that the waste or nonbeneficial use of water be prevented, and that the conservation and beneficial use of water be exercised in the interest of the people. Therefore, it is declared the policy of the Commonwealth to actively encourage and to provide financial, technical, or other support for projects that will control and store our water resources in order that the continued growth and development of the Commonwealth might be assured. To that end, it is declared to be the purpose of KRS Chapters 146, 149, 151, 224, 262, and KRS 350.029 and 433.750 to 433.757 for the Commonwealth to permit, regulate, and participate in the construction or financing of facilities to store surplus surface water for future use; to conserve and develop the ground water resources of the Commonwealth; to require local communities to develop long range water supply plans; to protect the rights of all persons equitably and reasonably interested in the use and availability of water; to prohibit the pollution of water resources and to maintain the normal flow of all streams so that the proper quantity and quality of water will be available at all times to the people of the Commonwealth; to provide for the adequate disposition of water among the people of the Commonwealth entitled to its use during severe droughts or times of emergency; to prevent harmful overflows and flooding; to regulate the construction, maintenance, and operation of all dams and other barriers of streams; to prevent the obstruction of streams and floodways by the dumping of substances therein; to keep accurate records on the amount of water withdrawal from streams and watercourses and reasonably regulate the amount of withdrawal of public water; and to engage in other activities as may be necessary to conserve and develop the water resources of the Commonwealth of Kentucky, and to ensure adequate supply of water for domestic, agricultural, recreational, and economic development uses.
    2. The cabinet shall:
      1. Provide leadership in water use efficiency for all water uses;
      2. Promote conservation;
      3. Offer technical assistance and conduct research;
      4. Be the lead agency with other state and local agencies to incorporate conservation measures and incentives into their programs;
      5. Sponsor “technology transfer sessions” on water conservation to commercial and industrial operations;
      6. Provide leadership to communities looking for information and methods for coping with the issues of growth and water supply;
      7. Provide leadership for on-farm and rural community drought and water assessment, monitoring, and improvement for agricultural purposes; and
      8. Have the authority to receive and disperse federal, state, and other funds for the purpose of on-farm and community drought and water assessment, monitoring, and improvements.
    3. Subsection (1)(b) shall not be construed as changing the relationship between the cabinet and the Kentucky River Authority and their respective responsibilities for oversight of the Kentucky River as set out in KRS 151.700 and 151.720 .
  1. It is a finding of the General Assembly that groundwater is an important but vulnerable natural resource of this state, that the majority of rural Kentuckians rely exclusively on groundwater for drinking, and that groundwater is inextricably linked to surface waters which may also serve as a drinking water resource. It is also a finding that groundwater is a resource equally vital for agricultural, commercial, and industrial purposes and that useable groundwater is critical to the future development of these industries. Therefore, it shall be the policy of this state to manage groundwater for the health, welfare, and economic prosperity of all citizens.

History. Enact. Acts 1966, ch. 23, § 2; 1978, ch. 384, § 39, effective June 17, 1978; 1986, ch. 367, § 1, effective July 15, 1986; 1990, ch. 307, § 1, effective July 13, 1990; 1990, ch. 410, § 1, effective July 13, 1990; 1992, ch. 239, § 1, effective July 14, 1992; 2016 ch. 39, § 2, effective July 15, 2016.

NOTES TO DECISIONS

Cited:

Shelbyville ex rel. Shelbyville Municipal Water & Sewer Com. v. Commonwealth, Natural Resources & Environmental Protection Cabinet, 706 S.W.2d 426, 1986 Ky. App. LEXIS 1070 (Ky. Ct. App. 1986).

Research References and Practice Aids

Journal of Natural Resources & Environmental Law.

Notes and Comments, Kentucky’s Efforts to Protect Its Groundwater: Uniqueness and Uniformity Among States, 10 J. Nat. Resources & Envtl. L. 371 (1994-95).

Kentucky Law Journal.

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

151.112. Planning process for management and development of water resources.

  1. The cabinet shall develop a comprehensive and systematic planning process for the long-range management and orderly development of the Commonwealth’s water resources. The planning process shall generate over each biennium a plan for the implementation of specific goals and management objectives for the cabinet to achieve in meeting the Commonwealth’s water needs. The biennial plan shall serve as the basis for the cabinet’s budgeting process in allocating resources to the state’s water resource programs. The planning process shall be developed to:
    1. Protect, conserve, develop, and utilize the water resource in a manner consistent with the Commonwealth’s duties for management of natural resources, the public’s right to clean water, and the preservation of the natural, scenic, cultural, historic, and aesthetic values of the environment;
    2. Provide a coordinated framework for cooperation among federal, interstate, state, and local government agencies in the planning and management of water resources, in a manner consistent with KRS Chapter 147 and KRS 224.10-100 (13);
    3. Be both anticipatory of future needs and reactive to problems;
    4. Provide for public involvement in the establishment of the comprehensive and systematic planning process, in plan development and implementation, and the allocation and prioritizing of resources for water resource management and development; and
    5. Establish a process for the collection and coordination of data regarding surface and ground water availability and quality, including the presence of point and nonpoint sources of pollution, instream flow information, withdrawal and use information, an assessment of flood damage and storm water management problems, and an identification and assessment of future data needs.
  2. The continuous planning process shall include goals and objectives for ground and surface water quantity and quality management in order to assess the effectiveness of current programs in addressing the comprehensive water needs of the Commonwealth and to gauge the need for new or different programs to recommend to the General Assembly for legislation.

History. Enact. Acts 1986, ch. 367, § 2, effective July 15, 1986.

151.113. Kentucky Water Resources Board.

  1. The Kentucky Water Resources Board is hereby created for the purposes of assisting the cabinet in the implementation of KRS 151.110 and 151.112 . The board shall be attached to the cabinet for administrative purposes.
  2. The Kentucky Water Resources Board shall:
    1. Assist the cabinet in conducting research and developing recommendations to enhance the quality of water resources accessible for agricultural production in the state;
    2. Research emerging water resources issues, including the adequacy of water supplies available for agricultural production and in rural Kentucky;
    3. Examine potential actions to address deficiencies in water supplies identified by the board;
    4. Make recommendations for developing new and reliable water sources for key areas of farm production in Kentucky;
    5. Develop and provide the cabinet with recommendations regarding water use efficiency for all agricultural water uses;
    6. Develop recommendations for a strategy to promote water conservation in agricultural uses;
    7. Develop and provide recommendations to the cabinet, the Department of Agriculture, and the Soil and Water Conservation Commission regarding on-farm and rural community drought and water assessment, monitoring, and improvements for agricultural purposes; and
    8. Request technical assistance from the following groups in order to establish a process for the collection and coordination of data on surface and ground water availability, water quality, the presence of point and nonpoint sources of pollution, instream flow, water withdrawal and use, flood damage and storm water management, and the identification and assessment of future data needs:
      1. Kentucky Geological Survey;
      2. United States Geological Survey;
      3. Kentucky Water Resources Institute;
      4. Interagency Technical Advisory Committee on Groundwater;
      5. Soil and Water Conservation Commission; and
      6. Any other water group the board deems necessary.
  3. The Kentucky Water Resources Board shall consist of eleven (11) members as follows:
    1. The secretary of the cabinet or the secretary’s designee, who shall serve as chair;
    2. The Commissioner of the Kentucky Department of Agriculture or the Commissioner’s designee, who shall serve as vice chair;
    3. The dean of the University of Kentucky College of Agriculture, Food, and Environment or the dean’s designee;
    4. Six (6) members appointed by the Governor as follows:
      1. One (1) member selected from a list of three (3) submitted by the Kentucky Association of Conservation Districts, who shall serve an initial term of four (4) years;
      2. One (1) member selected from a list of three (3) submitted by the Kentucky Chamber of Commerce, who shall serve an initial term of four (4) years;
      3. One (1) member selected from a list of three (3) submitted by the Kentucky County Judge/Executive Association, who shall serve an initial term of three (3) years;
      4. One (1) member selected from a list of three (3) submitted by the Kentucky Farm Bureau, who shall serve an initial term of three (3) years;
      5. One (1) member selected from a list of three (3) submitted by the Kentucky League of Cities, who shall serve an initial term of two (2) years; and
      6. One (1) member selected from a list of three (3) submitted by the Kentucky Rural Water Association, who shall serve an initial term of two (2) years; and
    5. The board shall have two (2) nonvoting liaisons who are members of the General Assembly, one (1) of whom shall be a member of the House of Representatives appointed by the Speaker of the House of Representatives, and one (1) of whom shall be a member of the Senate appointed by the President of the Senate.
  4. Members appointed under subsection (3)(d) of this section shall serve a term of four (4) years and may be reappointed. A person appointed to fill a vacancy occurring prior to the expiration of a term shall be appointed for the remainder of that term.
    1. The Kentucky Water Resources Board shall meet at the call of the chair, and members shall not receive compensation for serving on the board. (5) (a) The Kentucky Water Resources Board shall meet at the call of the chair, and members shall not receive compensation for serving on the board.
    2. Six (6) members shall constitute a quorum for the purposes of conducting business.

HISTORY: 2016 ch. 39, § 1, effective July 15, 2016.

Legislative Research Commission Note.

(7/15/2016). During codification, the Reviser of Statutes has combined the duties of the Kentucky Water Resources Board that appeared in subsections (2) and (6) of 2016 Ky. Acts ch. 39 into one list of duties in subsection (2) of this statute under the authority of KRS 7.136 (1)(a).

151.114. Long range water supply plans.

  1. The cabinet shall administer a program for the purpose of developing long range water supply plans for each county and its municipalities and public water systems or for a region composed of more than one (1) county. The plans to be developed shall include an assessment of the existing public and private water resources, both surface and groundwater, of the study area, an examination of present water use in the area, projections of future water requirements, and a determination of possible alternative approaches that can be taken in order to meet future water supply needs.
  2. The plans may be developed by area development districts in conjunction with the counties and its municipalities and public water systems within each district. A county and its municipalities and public water systems may require that the plan be developed for its jurisdictional area only or, if there is agreement between two (2) or more counties, that the plan be developed jointly with other counties.
  3. The plans shall be subject to approval by the cabinet. The cabinet is authorized to approve any water supply plan developed outside of this program which meets the guidelines set out in KRS 151.110 and 151.114 to 151.118 and the criteria established by cabinet regulations.

History. Enact. Acts 1990, ch. 410, § 2, effective July 13, 1990.

151.116. Regulations.

The cabinet shall promulgate regulations to carry out the program and shall consult with the Cabinet for Economic Development in developing those regulations. The regulations shall set out the details which are to be included in the water supply plans, the procedure for counties and their municipalities and public water systems to apply for financial assistance to pay for the plans, and the criteria and process by which the cabinet will approve plans. The cabinet shall assemble all information in a uniform database available to all agencies and concerned entities.

History. Enact. Acts 1990, ch. 410, § 3, effective July 13, 1990.

151.118. Financing development of water supply plans.

  1. The cabinet, in conjunction with a county and its municipalities and public water systems, shall finance the development of the water supply plans and encourage multicounty cooperation. The county and its municipalities and public water systems shall pay up to twenty percent (20%) of the total cost of plan development. A county and its municipalities and public water systems shall be given credit toward its share of the plan’s cost for in-kind services performed.
  2. The financial assistance of the cabinet shall be available until July 15, 1999.
  3. After July 15, 1999, the full cost of water supply plan development will be the responsibility of any county and its municipalities and public water systems which has not had a plan approved by the cabinet.
  4. After July 15, 1999, the cabinet shall not endorse projects that impact water under the Kentucky intergovernmental review process for any county and its municipalities and public water systems which does not have an approved water supply plan.

History. Enact. Acts 1990, ch. 410, § 4, effective July 13, 1990; 1998, ch. 374, § 1, effective July 15, 1998.

151.120. Public water of Commonwealth, what constitutes.

  1. Water occurring in any stream, lake, ground water, subterranean water or other body of water in the Commonwealth which may be applied to any useful and beneficial purpose is hereby declared to be a natural resource and public water of the Commonwealth and subject to control or regulation for the public welfare as provided in KRS Chapters 146, 149, 151, 262 and 350.029 and 433.750 to 433.757 .
  2. Diffused surface water which flows vagrantly over the surface of the ground shall not be regarded as public water, and the owner of land on which such water falls or flows shall have the right to its use. Water left standing in natural pools in a natural stream when the natural flow of the stream has ceased, shall not be regarded as public water and the owners of land contiguous to that water shall have the rights to its use.

History. Enact. Acts 1966, ch. 23, § 16.

NOTES TO DECISIONS

1.Municipal Use.

Although flowage easement did not expressly grant the Commonwealth any right to withdraw water for use as a water supply, city did not violate the easement by withdrawing lake water for public consumption where city had received a permit to withdraw 1.5 million gallons per day from the lake. Green v. City of Williamstown, 848 F. Supp. 102, 1994 U.S. Dist. LEXIS 3796 (E.D. Ky. 1994 ).

Research References and Practice Aids

Kentucky Law Journal.

Tarlock, Preservation of Scenic Rivers, 55 Ky. L.J. 745 (1967).

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

Treatises

Caldwell’s Kentucky Form Book, 5th Ed., Complaint for Injury by Surface Water, Form 353.02.

Caldwell’s Kentucky Form Book, 5th Ed., Practice Context for Water Resources, § 353.00.

151.125. Authority and powers of secretary.

The secretary shall exercise the following authority and powers:

  1. To administer and enforce the provisions of this chapter and all rules and regulations and orders promulgated thereunder;
  2. To conduct or obtain investigations, research, experiments, training programs and demonstrations, and to collect and disseminate information relating to the safe construction, operation, or maintenance of dams and reservoirs;
  3. To adopt, after giving public notice and affording an opportunity to all interested persons to appear and offer evidence at a public hearing in connection therewith, general rules and regulations for flood control and water resources which he deems necessary to accomplish the purposes of this chapter. Such rules and regulations, which shall have the force and effect of law, shall be of uniform application as far as practicable, but they may take proper account of differences in topography, geology, soil conditions, climate, hydrology, and use of the reservoir and the lands lying in the floodplain downstream from the dam;
  4. To adopt, without notice or hearing, rules and regulations with respect to procedural aspects of hearings, the filing of reports and orders, the issuance of certificates of inspection, construction permits, water withdrawal permits, and other procedural matters;
  5. To issue orders requiring the adoption by an owner of remedial measures necessary for the safety of life, or public or private property, or for carrying out the provisions of this chapter, or rules and regulations issued thereunder;
  6. To examine and approve or disapprove applications for construction permits for the construction, enlargement, repair, or alteration of a dam;
  7. To establish standards for the safe construction, enlargement, repair, alteration, maintenance, or operation of a dam or reservoir. Such standards shall be issued in the form of regulations as described in subsection (3) of this section;
  8. To make such investigations or inspections as necessary to determine the condition of a dam to insure compliance with any provisions of this chapter, including the right to enter at any time upon an area affected for such purposes and the right of ingress and egress across intervening properties;
  9. To order the suspension or revocation, after warning, of any certificate of inspection, construction permit, or water withdrawal permit for failure to comply with any of the provisions of this chapter or with any rules, regulations or orders adopted pursuant thereto, or with any of the conditions contained in or attached to the certificate of inspection, construction permits, or water withdrawal permits;
  10. To order the immediate cessation of any act that is started or continued without a construction permit or water withdrawal permit as required by the provisions of this chapter;
  11. To institute and prosecute all such court actions as may be necessary to obtain the enforcement of any order issued by the cabinet in carrying out the provisions of this chapter.

History. Enact. Acts 1974, ch. 285, § 2; 1974, ch. 74, Art. III, § 13(9).

Legislative Research Commission Note.

(10/29/96). Pursuant to KRS 7.136(2), the original reference to “department” in subsection (11) of this statute has been changed to “cabinet” to reflect reorganizations relating to the former Department for Natural Resources and Environmental Protection. See 1974 Ky. Acts, ch. 74, Art. III, sec. 13; 1982 Ky. Acts, ch. 393, sec. 50(3).

Research References and Practice Aids

Kentucky Law Journal.

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

Northern Kentucky Law Review.

Elliot, Kentucky’s Environmental Self-Audit Privilege: State Protection Or Increased Federal Scrutiny?, 23 N. Ky. L. Rev. 1 (1995).

151.130. Division of water of department of natural resources created — Director, appointment — Personnel. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 17) was repealed by Acts 1974, ch. 74, Art III, § 14.

151.140. Withdrawal of water from public waters, permit required — Exceptions.

No person, business, industry, city, county, water district, or other political subdivision shall have the right to withdraw, divert, or transfer public water from a stream, lake, ground water source or other body of water, unless such person, business, industry, city, county, water district or other political subdivision has been granted a permit by the cabinet for such withdrawal, diversion, or transfer of water. Provided, however, no permit shall be required for and nothing herein shall interfere with the use of water for agricultural and domestic purposes including irrigation; and no permit shall be required if the amount of water withdrawn, diverted or transferred is less than the amount established by regulation and no permit shall be required for water used in the production of steam generating plants of companies whose retail rates are regulated by the Kentucky Public Service Commission or for which plants a certificate of environmental compatibility from such commission is required by law, or water injected underground in conjunction with operations for the production of oil or gas.

History. Enact. Acts 1966, ch. 23, § 18; 1972, ch. 213, § 1; 1974, ch. 285, § 3; 1978, ch. 266, § 1, effective June 17, 1978.

NOTES TO DECISIONS

1.Municipal Use.

Although flowage easement did not expressly grant the Commonwealth any right to withdraw water for use as a water supply, city did not violate the easement by withdrawing lake water for public consumption where city had received a permit to withdraw 1.5 million gallons per day from the lake. Green v. City of Williamstown, 848 F. Supp. 102, 1994 U.S. Dist. LEXIS 3796 (E.D. Ky. 1994 ).

Research References and Practice Aids

Kentucky Law Journal.

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

Tarlock, Supplemental Groundwater Irrigation Law: From Capture to Sharing, 73 Ky. L.J. 695 (1984-85).

Treatises

Caldwell’s Kentucky Form Book, 5th Ed., Practice Context for Water Resources, § 353.00.

151.150. Application for permit — Withdrawal of water from public waters.

  1. Any person, business, industry, city, county, water district or other political subdivision desiring to withdraw, divert, or transfer public water must register with the cabinet and submit an application for a permit on a form to be supplied by the cabinet.
  2. Any person, business, industry, city, county, water district or other political subdivision withdrawing, transferring or diverting public water from a stream, lake, ground water source, or other body of public water within or along the borders of the Commonwealth without a permit as required in KRS 151.140 shall be subject to the penalties provided in KRS 151.990 .

History. Enact. Acts 1966, ch. 23, § 19.

Opinions of Attorney General.

Under this section and KRS 151.370 , 151.380 , 151.430 and 151.440 (all four sections now repealed), the water resources authority cannot levy charges based on the excess usage of public water over the quantity specified at the time of the passage of the water withdrawal permit statute, can only levy charges or fees for the use of water resulting from its projects and not for the use of any other public water of the Commonwealth, and if the authority, having established the water supply in a project, releases some part of this water in order to maintain the level of streams set by the project, then a charge for the water release could be levied against and apportioned among the downstream users, but, if the normal flow of the rivers concerned would sustain the level in those rivers without the need of such release, no charge could be levied by the authority for the downstream users. The authority is not empowered to levy charges on the use of any public water not directly associated with the operation of a water resource project which the authority has undertaken or in which it has an interest. OAG 73-528 .

Research References and Practice Aids

Kentucky Law Journal.

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

Treatises

Caldwell’s Kentucky Form Book, 5th Ed., Practice Context for Water Resources, § 353.00.

151.160. Record and report of water withdrawn under permit — Effect of noncompliance.

  1. All public water withdrawn, diverted or transferred pursuant to a permit under KRS 151.140 must be recorded and a report thereof submitted to the cabinet in a manner prescribed by the cabinet.
  2. The willful failure to keep accurate records of the withdrawal, diversion or transfer of public water or the failure to submit reports as prescribed by the cabinet shall subject the permit holder to the provisions of KRS 151.990 and possible revocation of the permit.

History. Enact. Acts 1966, ch. 23, § 20; 1974, ch. 285, § 4.

151.170. Permits to be specific — Issuance — Amendment.

  1. All permits issued under KRS 151.140 shall be specific in terms of quantity, time, place and rate of diversion, transfer or withdrawal of public water. Such permits represent a limited right of use and do not vest ownership nor an absolute right to withdraw or use the water.
  2. The cabinet shall issue a permit to the applicant if an investigation by the cabinet reveals that the quantity, time, place or rate of withdrawal of public water will not be detrimental to the public interests or rights of other public water users. No permit shall be denied to a responsible applicant who has established an amount of water for which he has a need for a useful purpose, provided the requested amount of water is available.
  3. A permit may be issued for an amount of water withdrawal less than that applied for, if found by the cabinet to be in the best interests of the public or other water users.
  4. Permits for the withdrawal, transfer, or diversion of public water may be amended at any time upon application to the cabinet by the withdrawer, or by the cabinet when the reports indicate that the withdrawer is using a substantially different amount than permitted.

History. Enact. Acts 1966, ch. 23, § 21; 1974, ch. 285, § 5; 1984, ch. 111, § 85, effective July 13, 1984.

Research References and Practice Aids

Kentucky Law Journal.

Tarlock, Preservation of Scenic Rivers, 55 Ky. L.J. 745 (1967).

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

Treatises

Caldwell’s Kentucky Form Book, 5th Ed., Practice Context for Water Resources, § 353.00.

151.180. Petition for hearing — Notice — Conduct of hearing — Findings — Appeal. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 22; 1974, ch. 74, Art. III, § 13; 1974, ch. 285, § 6) was repealed by Acts 1980, ch. 253, § 4, effective July 15, 1980.

151.182. Notice of violation and hearing thereon — Demand for hearing on denial, modification or revocation of permit.

  1. Whenever the cabinet has reason to believe that a violation of any of the provisions of this chapter or any regulation promulgated pursuant thereto has occurred, it may issue and serve upon the person complained against a written notice of the provision of this chapter or the regulation alleged to have been violated and the facts alleged to constitute the violation thereof. Further, this notice shall require the person so complained against to answer the charges set out in the notice at a hearing before the cabinet at a time not less than thirty (30) days after the date of notice unless the person complained against waives in writing the thirty (30) day period.
  2. Except as provided in KRS 151.297 regarding emergency situations, any person not previously heard in connection with the issuance of any order or the making of any final determination by which he considers himself aggrieved may file with the cabinet a petition alleging that the order or final determination is contrary to law or fact and is injurious to him, alleging the grounds and reasons therefor, and demand a hearing. An order or final determination includes, but is not limited to, the issuance, denial, modification, or revocation of a permit, but does not include the issuance of a notice of violation, the issuance of a letter identifying deficiencies in an application for a permit, a registration or a certification, or other nonfinal determinations. Unless the cabinet considers that the petition is frivolous, it shall serve written notice of the petition on each person named therein and shall schedule a hearing before the cabinet not less than thirty (30) days after the date of such notice, or unless the person complained against waives in writing the thirty (30) day period. The right to demand a hearing pursuant to this section shall be limited to a period of thirty (30) days after the petitioner has had actual notice of the order or final determination complained of, or could reasonably have had such notice.

History. Enact. Acts 1980, ch. 253, § 1, effective July 15, 1980; 1992, ch. 215, § 3, effective July 14, 1992.

151.184. Hearing conducted by hearing officer — Final determination by secretary — Use of counsel — Subpoena power — Hearings to be public.

  1. All hearings under this chapter shall be held before a qualified hearing officer, who may be a full-time employee of the cabinet, serve by contract, or be paid on a per diem basis at the discretion of the cabinet. After the conclusion of the hearing, the hearing officer shall within thirty (30) days make a report to the secretary and a recommended order which shall contain a finding of fact and a conclusion of law. If the secretary finds upon written request of the hearing officer that additional time is needed, then the secretary may grant an extension. The hearing officer shall serve a copy of his report and recommended order upon all parties of record to the proceeding and they shall be granted the right to file within fourteen (14) days of receipt exceptions thereto. The secretary shall consider the report, exceptions, and recommended order and decide the case. The decision shall be served by mail upon all parties and shall be a final order of the cabinet.
  2. Any party to a hearing conducted pursuant to this chapter may be represented by counsel, make oral or written argument, offer testimony, cross-examine witnesses, or take any combination of such actions. The record of the hearing shall be open to public inspection, and copies thereof shall be made available to any person upon payment of the actual cost of reproducing the original.
  3. In connection with a hearing the cabinet shall issue subpoenas in response to any reasonable request by any party to the hearing requiring the attendance and testimony of witnesses and the production of evidence relevant to any matter involved in the hearing. In case of refusal to obey a subpoena issued to any person, the Franklin Circuit Court, upon application by the cabinet, may issue to that person an order requiring him to appear before the cabinet, there to produce documentary evidence if so ordered or to give evidence touching the matter under investigation or in question; and any failure to obey the order of the court may be punished by the court as a contempt of court.
  4. All hearings conducted pursuant to this chapter shall be open to the public.

History. Enact. Acts 1980, ch. 253, § 2, effective July 15, 1980; 1992, ch. 215, § 4, effective July 14, 1992.

NOTES TO DECISIONS

1.Discharge of Duties.

The administrative order appealed from was rendered, for the purpose of determining the 30-day period for appeal under KRS 151.186 , when the agency finally discharged its duties as prescribed by this section, which included the signing and filing of the order along with mailing to interested parties. Commonwealth, Transp. Cabinet, Dep't of Highways v. Campbellsville, 740 S.W.2d 162, 1987 Ky. App. LEXIS 530 (Ky. Ct. App. 1987).

151.186. Appeals from final orders.

  1. Appeals may be taken from all final orders of the cabinet. Within thirty (30) days from entry of the final order the appeal shall be taken to the Circuit Court of the county where the structure or activity which is the subject of the order is located. The party or parties affected by the final order shall file in the Circuit Court a petition which states fully the grounds upon which a review is sought and assign all errors relied on. The cabinet shall be named respondent, and service shall be had on the secretary. Summons shall be issued upon the petition directing the cabinet to send its entire record, properly bound, to the clerk of the Circuit Court after certifying that such record is its entire original record or a true copy thereof, which shall be filed by the clerk of the Circuit Court and considered by the Circuit Court on the review. After the case has been properly docketed in the Circuit Court, any party directly affected by the issues on appeal may, upon notice to the parties and upon proper showing and in the discretion of the court, be permitted to intervene. Upon hearing of the appeal, the findings of the cabinet shall be prima facie evidence of the facts found therein. The court shall review the entire record and the findings and final order of the cabinet.
  2. Appeals to the Court of Appeals from orders of the Circuit Court shall be taken in the manner provided in the Kentucky Rules of Civil Procedure.

History. Enact. Acts 1980, ch. 253, § 3, effective July 15, 1980; 1992, ch. 215, § 5, effective July 14, 1992.

NOTES TO DECISIONS

1.Jurisdiction.

Violations of Chapters 223 and 224 are to be appealed to the Franklin Circuit Court, while violations of Chapter 151 are to be appealed to the Circuit Court where the structure or activity which is the subject of the order is located. Shewmaker v. Commonwealth, 30 S.W.3d 807, 2000 Ky. App. LEXIS 104 (Ky. Ct. App. 2000).

2.Period for Appeal.

The administrative order appealed from was rendered, for the purpose of determining the 30-day period for appeal under this section, when the agency finally discharged its duties as prescribed by KRS 151.184 , which included the signing and filing of the order along with mailing to interested parties. Commonwealth, Transp. Cabinet, Dep't of Highways v. Campbellsville, 740 S.W.2d 162, 1987 Ky. App. LEXIS 530 (Ky. Ct. App. 1987).

3.Service upon Secretary.

Issuance of summons upon the Attorney General commenced the appeal to the Circuit Court from the order of the administrative agency; once commenced, the mere delay in serving the secretary did not defeat the action. Commonwealth, Transp. Cabinet, Dep't of Highways v. Campbellsville, 740 S.W.2d 162, 1987 Ky. App. LEXIS 530 (Ky. Ct. App. 1987).

Neither the issuance of summons nor actual service of same upon the secretary is a condition precedent to the commencement of an action challenging an order of the cabinet. Commonwealth, Transp. Cabinet, Dep't of Highways v. Campbellsville, 740 S.W.2d 162, 1987 Ky. App. LEXIS 530 (Ky. Ct. App. 1987).

Research References and Practice Aids

Northern Kentucky Law Review.

A Survey of Kentucky Environmental Law, 29 N. Ky. L. Rev. 1 (2002).

151.190. Judicial review on appeal — Procedure. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 23) was repealed by Acts 1980, ch. 253, § 4, effective July 15, 1980.

151.200. Temporary allocation of water supply among users — Permit for transfer or diversion of water between streams or watersheds.

  1. Notwithstanding the existence of any permits for the withdrawal, diversion, or transfer of public water, in times of drought, emergency, or other similar situations requiring a balancing of the rights and available water between water users, the cabinet, upon declaration of a water emergency by the Governor, may temporarily allocate the available public water supply among water users and restrict the water withdrawal rights of permit holders, until such time as the condition is relieved and the best interests of the public are served.
  2. The cabinet, with the approval of the secretary, may issue a permit for the transfer or diversion of public water from one (1) stream or watershed area to another, where such transfer is consistent with the wise use of the public water of the Commonwealth and is in the best interests of the public. Prior to issuance of the permit the applicant shall publish a public notice soliciting written comments on the proposed permit in the newspaper or newspapers having greatest circulation in the area of the stream reach from which the withdrawal is taken. The applicant shall also send written notice to water withdrawal permit holders that might be affected by the permit. Thirty (30) days shall be allowed for public comments on the proposed permit.

History. Enact. Acts 1966, ch. 23, § 24; 1986, ch. 183, § 1, effective July 15, 1986.

Research References and Practice Aids

Kentucky Law Journal.

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

151.210. Use of water by landowner for domestic purposes — Impounding and conserving water, permitted when.

  1. Any owner of land contiguous to public water shall at all times have the right to the use of water therefrom to satisfy his needs for domestic purposes, which shall include water for household purposes, drinking water for poultry, livestock and domestic animals. The use of water for such domestic purposes shall have priority and be superior to any and all other uses.
  2. An owner or group of owners of land contiguous to public water, operating under a withdrawal permit, shall have the right to impound and conserve water for their use by impounding such water behind a dam in the natural stream bed or on their land, when the flow of the stream or level of the lake is such that the impounding will not impair existing uses, or will not unreasonably interfere with a beneficial use by other water users. An obstruction placed across a natural stream shall be approved by the cabinet as provided in KRS 151.250 , and shall provide an outlet for the release of water which the owner is not entitled to use or withdraw under KRS Chapters 146, 149, 151, 262, 350.029 and 433.750 to 433.757 , and the owner shall operate the outlet in accordance with this provision.

History. Enact. Acts 1966, ch. 23, § 25.

151.220. Water resources studies.

The cabinet shall:

  1. Undertake for and as the official agency of the state, such studies and prepare such reports and recommendations as may be necessary to establish a statewide program of flood control (including major drainage), and a statewide program for the development of water resources;
  2. Study and review for the state as its official agency, all survey reports, engineering reports, and other reports concerning or affecting water related projects within the state which are proposed for construction by the federal government, the state government or any agency or subdivision thereof, or which will involve the expenditure of federal or state funds, and which might affect flood control or the development of water resources of the state, and to act as the official representative of the state in any representations, recommendations, or requests to Congress or the General Assembly concerning such projects or the priority which should be accorded them with relation to the statewide program;
  3. Make a continuous water resources study of data from other existing state or federal agencies and such other sources as may be available. From such studies, the cabinet shall formulate conclusions and recommendations for use by the Commonwealth in assuring the maximum beneficial use of the water resources of the Commonwealth;
  4. Cooperate with any local, state or federal agency, or the agencies of any other state engaged or proposing to engage in any work which will affect or be affected by the functions of the cabinet and may lend to or receive from any such agency such financial assistance as may be necessary within the limits of authorized expenditure;
  5. Have, for flood control and water resources development purposes, jurisdiction over all streams within or bordering upon the state. The cabinet shall have the authority to establish and enforce floodways along such streams;
  6. Have authority to accept and use gifts, contributions, donations and grants;
  7. Be the official state agency for determination of stream mileage.

History. Enact. Acts 1966, ch. 23, § 26; 1974, ch. 285, § 7.

Research References and Practice Aids

Kentucky Law Journal.

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

151.230. Minimum standards for flood plain management to be set by administrative regulation — Local application and effect.

  1. The cabinet may establish minimum standards by administrative regulation for floodplain management. Except in local governments containing a city of the first class, local governments may establish their own standards by ordinance.
  2. In counties containing a city of the first class that have adopted a floodplain ordinance, standards relating to substantial improvements to a structure damaged by flood waters shall not be more restrictive than that prescribed by the cabinet.
  3. For purposes of county administrative regulations and ordinances relating to floodplain management, “substantial improvement” as used in subsection (2) of this section shall mean any combination of repairs, reconstruction, alteration, or improvements to a structure taking place during a one (1) year period in which the cumulative cost equals or exceeds fifty percent (50%) of the market value of the structure.
  4. On March 29, 2000, for purposes of floodplain management, all property shall be assessed by the property valuation administrator at one hundred percent (100%) of its fair market value with no loss of value to land or structures incurred as a result of any previous flood damage prior to March 29, 2000. The fair market value of a structure shall be reestablished as that value calculated by the property valuation administrator on or before December 30 of each year.
  5. The provisions of subsections (3) and (4) of this section shall expire on December 31, 2002, unless reenacted by the local governing body. Nothing in this section shall prohibit a county containing a city of the first class from amending its own floodplain ordinance at any time.

History. Enact. Acts 1966, ch. 23, § 27; 2000, ch. 243, § 1, effective March 29, 2000.

151.232. Participation in development of administrative regulations. [Repealed]

History. Enact. Acts 1990, ch. 307, § 5, effective July 13, 1990; repealed by 2017 ch. 117, § 49, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1990, ch. 307, § 5, effective July 13, 1990) was repealed by Acts 2017, ch. 164, § 9, effective June 29, 2017.

151.240. Surveys of project on behalf of state.

On its own initiative or when so directed by the Governor, the cabinet shall make a preliminary survey and report of any project which involves or might involve expenditure of state funds or construction work by the State of Kentucky in the construction, reconstruction, or maintenance of any flood control works or other works concerning or affecting the development of water resources. If the cabinet, with the approval of the Governor, finds from such preliminary survey that the project is not favorable, no further action shall be taken on such project without specific instructions or authorization by the General Assembly. If the cabinet finds from such preliminary survey that such project is favorable on a basis of need, economic value or future development, it shall, with the approval of the Governor, cause a comprehensive final survey and report to be prepared, and submit such report to the Governor for approval and authority to perform the necessary construction work.

History. Enact. Acts 1966, ch. 23, § 28.

Research References and Practice Aids

Kentucky Law Journal.

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

151.250. Plans for dams, levees, etc. to be approved and permit issued by cabinet — Jurisdiction of Department for Natural Resources.

  1. Notwithstanding any other provision of law, no person and no city, county, or other political subdivision of the state, including levee districts, drainage districts, flood control districts or systems, or similar bodies, shall commence the construction, reconstruction, relocation or improvement of any dam, embankment, levee, dike, bridge, fill or other obstruction (except those constructed by the Department of Highways) across or along any stream, or in the floodway of any stream, unless the plans and specifications for such work have been submitted by the person or political subdivision responsible for the construction, reconstruction or improvement and such plans and specifications have been approved in writing by the cabinet and a permit issued. However, the cabinet by regulation may exempt those dams, embankments or other obstructions which are not of such size or type as to require approval by the cabinet in the interest of safety or retention of water supply.
  2. No person, city, county or other political subdivision of the state shall commence the filling of any area with earth, debris, or any other material, or raise the level of any area in any manner, or place a building, barrier or obstruction of any sort on any area located adjacent to a river or stream or in the floodway of the stream so that such filling, raising or obstruction will in any way affect the flow of water in the channel or in the floodway of the stream unless plans and specifications for such work have been submitted to and approved by the cabinet and a permit issued as required in subsection (1) above.
  3. Nothing in this section is intended to give the cabinet any jurisdiction or control over the construction, reconstruction, improvement, enlargement, maintenance or operation of any drainage district, ditch, or system established for agricultural purposes, or to require approval of the same except where such obstruction of the stream or floodway is determined by the cabinet to be a detriment or hindrance to the beneficial use of water resources in the area, and the person or political subdivision in control thereof so notified. The Department for Natural Resources through KRS Chapter 350 shall have exclusive jurisdiction over KRS Chapter 151 concerning the regulation of dams, levees, embankments, dikes, bridges, fills, or other obstructions across or along any stream or in the floodway of any stream which structures are permitted under KRS Chapter 350 for surface coal mining operations.

History. Enact. Acts 1966, ch. 23, § 29; 1982, ch. 368, § 2, effective April 2, 1982.

Research References and Practice Aids

Kentucky Law Journal.

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

Kentucky Law Survey, Bratt and Brown, Environmental Law, 70 Ky. L.J. 455 (1981-82).

151.260. Applications for permit — Time for approval or rejection.

  1. All applications for permits required by KRS 151.250 shall be in the form and manner prescribed by the cabinet.
  2. Unless waived by the cabinet, all plans and specifications submitted for approval shall be drawn by an engineer, licensed to practice as a professional engineer under the provisions of KRS Chapter 322.
  3. Upon receipt of all plans and specifications, the cabinet shall notify the applicant in writing within twenty (20) working days either that the permit will be issued or denied, or that certain modifications in the plans or specifications must be made before a permit will be issued.

History. Enact. Acts 1966, ch. 23, § 30.

Legislative Research Commission Note.

(10/29/96). Pursuant to KRS 7.136(2), original references to “division” in subsections (1), (2), and (3) of this statute have been changed to “cabinet” to reflect reorganizations relating to the former Division of Water. See 1974 Ky. Acts, ch. 285, sec. 1; 1982 Ky. Acts, ch. 214, secs. 1 & 2; 1982 Ky. Acts, ch. 393, sec. 50(3).

151.270. Judicial review of denial of permit. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 31) was repealed by Acts 1974, ch. 285, § 14.

151.280. Commencement of preparations for project without permit prohibited — Deviation from approved plans.

  1. Any person, county, city or other political subdivision of the state who shall begin on the site preparation for the construction, reconstruction, relocation or improvement of any project prior to the issuance of the permit required in KRS 151.250 shall be considered as commencing without a permit and punishable by penalties provided in KRS 151.990 .
  2. Whenever plans and specifications have been approved in writing and a permit issued by the cabinet, no person, city, county, or other political subdivision shall deviate from the approved plans in the construction, reconstruction, relocation or improvement unless such change is submitted in writing to the cabinet and prior approval is received from the cabinet in writing before proceeding with the work. Any substantial deviation from the approved plans shall be construed as commencing without a permit and punishable by the penalties provided in KRS 151.990 .

History. Enact. Acts 1966, ch. 23, § 32.

151.290. Inspection of dam, embankment or levee — Orders for remedy — Judicial review — Mandatory injunction. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 33; 1974 ch. 315, § 14) was repealed by Acts 1974, ch. 285, § 14.

Legislative Research Commission Note.

This section was amended by 1974 Ky. Acts, ch. 315, sec. 14, which was part of a general amendatory act providing for certified mail delivery. It was specifically repealed by 1974 Ky. Acts, ch. 285, sec. 14, which was passed last by the General Assembly and so stands, even though it was signed by the Governor on the same day.

151.291. Responsibility for safety of water barriers owned by Commonwealth — Transfer of ownership of water barrier — Responsibility for safety after transfer — Approval of transfer.

  1. The cabinet shall enforce compliance with all applicable laws and regulations of all dams, reservoirs, levees, embankments, or other water barriers owned by the Commonwealth.
  2. The cabinet may take whatever action that it deems necessary to maintain, repair or remove dams, reservoirs, levees, embankments, or other water barriers owned, acquired or constructed by the Commonwealth.
  3. Funds expended pursuant to subsection (1) or (2) of this section may not be expended for any aesthetic or functional purposes that are not related to the safety or integrity of the water barrier.
  4. Any person to whom the Commonwealth has transferred ownership of any dam, reservoir, levee, embankment or other water barrier shall maintain it in compliance with all applicable laws and regulations. The Commonwealth shall not expend funds to maintain, repair or remove any structure the ownership of which it has transferred after July 15, 1986, unless otherwise expressly provided by law or written agreement.
  5. The secretary of the cabinet shall review and approve or disapprove every proposed transfer of any water barrier owned by the Commonwealth. No transfer of any water barrier owned by the Commonwealth shall occur except upon approval of the secretary of the cabinet. The secretary shall ensure that every proposed transfer is consistent with the terms and provisions of this section. Nothing herein shall be construed, however, to prevent the transfer of a water barrier by the Commonwealth without first bringing it into compliance with existing laws and regulations.

History. Enact. Acts 1978, ch. 206, § 3, effective June 17, 1978; 1986, ch. 290, § 1, effective July 15, 1986.

151.293. Certificates of inspection.

  1. Within sixty (60) days of completion of an on-site inspection of an existing dam, the cabinet may either grant a certificate of inspection, or deny the certificate of inspection and notify the owner in writing, stating the reasons for denial.
  2. In deciding whether or not a certificate of inspection should be issued, the cabinet shall take into account all pertinent facts and conditions, but shall not issue a certificate unless the following conditions have been met:
    1. The proposed action in the judgment of the cabinet will be conducted in such a way that the safety of the public is adequately provided for;
    2. All information requested by the cabinet has been provided; and
    3. The changed flow of the stream or level of the reservoir will not significantly interfere with a beneficial use by other water users.
  3. In granting a certificate of inspection, the cabinet may impose such conditions relating to the inspection, operation, maintenance, alteration, repair, use, or control of a dam or reservoir as it determines are necessary for the protection of public health, safety or welfare.
  4. The cabinet may establish hazard categories for dams based on downstream floodplain use, size, or type of dam, or other criteria, and may impose different conditions or types of conditions on the approval of dams or reservoirs in the different categories. The hazard categories in all cases shall be based only on the actual risk imposed by the dam.
  5. The cabinet may utilize the results and information provided by or for the United States Army Corps of Engineers pursuant to the provisions of Public Law 92-367 if the information is not more than one (1) year old at the time of use.
  6. Certificates of inspection shall be for a definite period of time, not to exceed five (5) years, as determined by the cabinet and stated on the certificate. In determining the period of inspection, the cabinet may take account of any circumstances pertinent to the situation, including, but not limited to, the size and type of dam, topography, geology, soil conditions, hydrology, climate, use of the reservoir, the lands lying in the floodplain downstream from the dam, and the hazard category of the dam.
  7. The cabinet may modify a certificate of inspection or the conditions attached to it. Such modification shall become effective ninety (90) days following issuance by the cabinet of a revised certificate, except when the cabinet finds that a state of emergency exists and that life or property would be endangered by delay. In case of an emergency declared by the cabinet, the new conditions shall be effective immediately.
  8. Specific guidelines for issuance and renewal of certificate of inspection for earth embankment dams shall be provided by administrative regulations which shall address at least the following areas:
    1. The hydraulic capacity requirements for each category of dam shall be provided. The probable maximum precipitation as determined by the United States Weather Service shall be used only where it can be clearly demonstrated that failure of the dam by overtopping would result in greater loss of life than would occur if the dam did not exist and only for small watersheds, since such large rainfall events are not expected to occur over large areas. The cabinet shall provide a table of factors that reduce this rainfall appropriately for larger watersheds;
    2. Minimum criteria for the embankment stability of the dam, including consideration of such factors as steepness of slopes, strength of materials, and earthquake loadings shall be specified;
    3. Variance procedures for applicable hydraulic and stability considerations shall be included for, but not limited to, variances to hydraulic criteria where only a small number of persons are at risk and where a reliable, effective emergency preparedness system will be installed; where a risk analysis demonstrates that at rainfall levels less than that specified in the administrative regulation there is no risk that actually results from the dam; where an owner can demonstrate that the dam substantially conforms to the criteria in the administrative regulation; and, for dams that pose a risk of economic damages only, where the owner provides indemnification against potential damages;
    4. Before any variance is issued, the affected public shall be notified of the cabinet’s intended action and allowed to make known any objections or concerns that it might have;
    5. Whenever the owner of a dam has requested a variance and the request has not been granted or has not been granted in the manner requested, the owner or aggrieved party may petition the cabinet to have the variance request reviewed and a final determination made by the cabinet. If not satisfied by the final determination of the cabinet , the party may seek administrative remedy from the cabinet under the provisions of KRS 151.182 ;
    6. Items of general maintenance of a dam shall include provisions for at least the following: dams shall be mowed regularly; dams shall be free of trees and brush; animal burrows shall not be allowed on dams; slides, erosion and cracks that could pose problems to dams shall be properly repaired; action shall be taken to alleviate excessive wetness and abnormal seepage; appurtenances that are necessary for the proper operation and maintenance of the dam shall be kept in proper working condition;
    7. Provisions shall be made whereby the cabinet will allow for staged renovation of dams that do not meet the criteria of the administrative regulations and shall clearly identify the circumstances under which staging is allowable and set a maximum time limit that may be allowed for bringing the dam into compliance. Other provisions shall require the owner to develop and maintain an emergency action plan, to provide interim insurance, bonding or other indemnification, and on a frequent basis as specified by the cabinet, to inspect the dam and report to the cabinet the status of any facilities or conditions of concern; and
    8. If the cabinet has previously required a dam to be upgraded to meet a certain dam safety standard, it shall not require that the dam be upgraded again because of a change in the administrative regulation with regard to that same standard. However, if the owner proposes substantial construction on the dam or if the dam must be repaired due to indications of distress or to partial failure, the cabinet may require the owner to bring the dam into full compliance with current standards.
  9. The cabinet shall establish guidelines on a case-by-case basis for gravity dams and other types of dams that are unusual to the Commonwealth, and shall follow recognized engineering practice.
  10. Plans and specifications submitted to the cabinet shall be the responsibility of and signed by an engineer licensed by the Commonwealth and experienced in the design and construction of dams, as determined by the cabinet.

HISTORY: Enact. Acts 1974, ch. 285, § 8; 1978, ch. 206, § 1, effective June 17, 1978; 1988, ch. 405, § 2, effective July 15, 1988; 2017 ch. 117, § 14, effective June 29, 2017.

Compiler’s Notes.

Public Law No. 92-367 referred to in subsection (5) of this section is compiled generally as 33 USCS §§ 467 et seq.

151.295. Regular inspections of dams and reservoirs.

The public safety and welfare requiring it, the secretary shall conduct a program of regular inspections of dams and reservoirs within the state. The frequency of such inspections shall be as determined by the secretary, who may establish different inspection intervals.

History. Enact. Acts 1974, ch. 285, § 9; 1974, ch. 74, Art. III, § 13(9).

151.297. Orders for remedy — Action by cabinet — Contracts or agreements for required work — Hearings.

  1. Whenever the cabinet determines that any person to which a certificate of inspection has been issued has failed to comply with the conditions in said certificate or whenever the cabinet determines that life or property are or may be endangered by the failure or incapacity of any dam, reservoir, levee, embankment, or other water barrier, or by any other cause related to a dam or reservoir, levee, embankment, or other water barrier irrespective of any condition or the lack thereof in the certificate of inspection for said dam or reservoir, or in those instances where no certificate is required on the levee, embankment or other water barrier, the cabinet shall order the owner thereof to take such action as is necessary to render the dam, reservoir, levee, embankment, or other water barrier safe.
  2. When the cabinet determines that the dam, reservoir, levee, embankment, or other water barrier has been abandoned; or where the owner fails, in the judgment of the cabinet, to take satisfactory action toward compliance with an order, issued pursuant to this section; or where an owner fails to maintain a satisfactory rate of progress toward full compliance therewith; or where in the judgment of the cabinet, the danger to life or property will not permit delay, the cabinet shall declare that an emergency exists and shall take such action as it deems necessary to render the dam, reservoir, levee, embankment, or other water barrier safe, which action may include, but is not limited to:
    1. Taking full charge and control of the dam, reservoir, levee, embankment, or other water barrier;
    2. Lowering the water level or emptying the reservoir;
    3. Performing any necessary remedial or protective work at the site;
    4. Taking such other steps as may be necessary to safeguard life and property; or
    5. Removing the dam, reservoir, levee, embankment, or other water barrier.
  3. The cabinet may continue such action until the dam, reservoir, levee, embankment, or other water barrier involved is rendered safe or the emergency requiring the action has ceased. The secretary is authorized to enter into contracts or agreements with other state, local, or federal agencies, or other persons, for work necessary to implement such necessary actions.
  4. Any person to whom an order is directed pursuant to this section shall comply therewith immediately, but, on petition to the cabinet, may within five (5) working days have a hearing thereon.

History. Enact. Acts 1974, ch. 285, § 10; 1974, ch. 74, Art. III, § 13(9); 1978, ch. 206, § 2, effective June 17, 1978.

NOTES TO DECISIONS

1.In General.

This section gives the Natural Resources and Environmental Protection Cabinet the authority to force the owner of a dam to take such action as needed to render a potentially dangerous dam safe. Shelbyville ex rel. Shelbyville Municipal Water & Sewer Com. v. Commonwealth, Natural Resources & Environmental Protection Cabinet, 706 S.W.2d 426, 1986 Ky. App. LEXIS 1070 (Ky. Ct. App. 1986).

151.299. Liability for costs of cabinet emergency work — Action for recovery of costs — Foreclosure sale to satisfy judgment.

Whenever the secretary takes action authorized by KRS 151.297 , the owner or owners of the dam or the dams creating the impoundment, or levee, embankment, or other water barriers at which such action was taken shall be jointly and severally liable for the costs of taking such action, including applicable overheads, and a lien in the amount of such costs shall be automatically created on all property owned by any such owner at or proximate to such dam or reservoir. The secretary shall file an action in the Circuit Court having jurisdiction over any owner or the owner’s property for the recovery of such costs, and may join all other owners in such action irrespective of any statutes to the contrary relating to jurisdiction or venue. Following the conclusion of such action the secretary may make application to the court for foreclosure sale of the property to satisfy any judgment obtained by the secretary.

History. Enact. Acts 1974, ch. 285, § 11; 1974, ch. 74, Art. III, § 13(9).

151.300. Right of entry by division employes. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 34) was repealed by Acts 1974, ch. 285, § 14.

151.310. Deposits in water without permit prohibited.

No person, city, county, or other political subdivision of the state shall deposit or cause to be deposited any matter that will in any way restrict or disturb the flow of water in the channel or in the floodway of any stream except where a permit has been issued for construction under KRS 151.250 , or to encroach on the reservoir area of any dam authorized by the Congress of the United States, or under the jurisdiction of the Commonwealth, or any of its political subdivisions.

History. Enact. Acts 1966, ch. 23, § 35.

151.320. Officers required to enforce law.

  1. The mayor or chief executive officer of each city and the county judge/executive of each county, shall have the concurrent duty of enforcing with the cabinet, within their respective cities and counties, the provisions of KRS 151.250 , 151.280 and 151.310 and rules and regulations issued thereunder.
  2. When a violation of KRS 151.250 , 151.280 or 151.310 within his jurisdiction is brought to the attention of a mayor or chief executive officer of a city or a county judge/executive, he shall immediately notify the cabinet of the location and details of such violation.

History. Enact. Acts 1966, ch. 23, § 36.

151.330. Water resources authority — Membership — Quorum — Officers — Executive board. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 3; 1974, ch. 74, Art. III, § 13(4); 1974, ch. 257, § 3; 1974, ch. 285, § 12; 1976, ch. 210, § 3; 1978, ch. 155, § 41, effective June 17, 1978; 1980, ch. 154, § 3, effective July 15, 1980; 1982, ch. 396, § 23, effective July 15, 1982; 1984, ch. 216, § 2, effective July 13, 1984) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.340. Executive director — Appointment — Duties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 4; 1982, ch. 214, § 2, effective July 15, 1982; 1984, ch. 216, § 2; effective July 13, 1984) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.350. Attorney general as legal officer. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 5) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.360. Contracts with federal government for water resources projects — Participation in projects — Coordination of programs. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 6; 1984, ch. 216, § 4, effective July 13, 1984) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.370. Powers of authority — Land acquisition. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 7; 1984, ch. 111, § 87, effective July 13, 1984; 1984, ch. 216, § 5, effective July 13, 1984) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.380. Water resources fund, creation, uses. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 8) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.390. Loans to governmental agencies for water resources project. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 9; 1984, ch. 216, § 6, effective July 13, 1984) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.400. Loans — Interest rate — Security. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 10) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.410. Application for assistance on water resources projects. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 11; 1984, ch. 216, § 7, effective July 13, 1984) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.420. Revenue bonds for water resources projects — Use of proceeds — Interim receipts on temporary bonds — Tax exemption. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 12; 1982, ch. 214, § 3, effective July 15, 1982) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.430. Payment of revenue bonds, source. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 13) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.440. Revenue bonds, how secured — Trust indenture, contents. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 14) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.450. Rights of holder of bonds or trustee. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, ch. 23, § 15) was repealed by Acts 1988, ch. 124, § 17, effective March 31, 1988.

151.460. Actions for penalties and injunctions.

  1. It shall be the duty of the cabinet’s Office of Legal Services, or upon the secretary’s request, of the Attorney General, to bring an action for the recovery of the penalties herein provided for and to bring an action for a restraining order, temporary or permanent injunction, for the prevention or correction of a condition constituting or threatening to constitute a violation of this chapter, except as provided for in KRS 151.299 .
  2. All actions for penalties and injunctive relief for violations of this chapter shall be brought in the name of the Commonwealth of Kentucky by the cabinet’s Office of Legal Services, or upon the secretary’s request, by the Attorney General in the Circuit Court of the county in which the applicant resides, or in the Circuit Court having jurisdiction of the defendant.

History. Enact. Acts 1966, ch. 23, § 37; 1974, ch. 74, Art. III, § 13(9); 1974, ch. 285, § 13; 1976, ch. 289, § 5; 1984, ch. 216, § 8, effective July 13, 1984; 1990, ch. 399, § 5, effective July 13, 1990.

Legislative Research Commission Note.

(10/6/97). 1996 Ky. Acts ch. 360 confirmed a reorganization by which the Department of Law in the Natural Resources and Environmental Protection Cabinet was changed to that cabinet’s Office of Legal Services. For this reason, under KRS 7.136(2), references to “Department of Law” in subsections (1) and (2) of this statute have been changed to read “Office of Legal Services.”

151.550. Community Flood Damage Abatement Program.

  1. There is hereby created a Community Flood Damage Abatement Program within the Energy and Environment Cabinet.
  2. It is hereby declared to be the purpose of the program to provide funds and technical assistance to local governments to initiate flood control projects and programs.
  3. This program shall be administered by the secretary according to standards designed to promote adequate planning, construction and conservation measures to deal with water drainage problems.
  4. Any local sponsoring community desiring to qualify for funding, must:
    1. Make application to the cabinet which shall be in the form and manner prescribed by the cabinet;
    2. Provide at no expense to the cabinet, all lands and easements necessary for project construction;
    3. Agree to operate and maintain the project in a manner acceptable to the Commonwealth to insure the continued capacity of the project to prevent or minimize flood damages;
    4. Submit evidence of the history of flooding within the last five (5) years;
    5. Submit evidence of flood damage in dollars within the last five (5) years.
  5. The cabinet shall have and exercise the power and authority to annually inspect the completed project to insure compliance with any of the provisions of this section or with any rules, regulations or orders adopted pursuant thereto, or with any of the conditions contained in subsection (4)(c) of this section.

History. Enact. Acts 1978, ch. 293, § 1, effective June 17, 1978; 2010, ch. 24, § 178, effective July 15, 2010.

151.560. Flood Control Advisory Commission. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 154, § 1; 1982, ch. 450, § 70; 1984, ch. 111, § 88; 1988, ch. 110, § 1; 1990, ch. 507, § 21; 1994, ch. 357, § 1; 1998, ch. 69, § 61; 2000, ch. 227, § 1) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

151.570. Duties of commission. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 154, § 2) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

151.580. Negotiation with federal agencies for operation or maintenance of a navigable waterway within Kentucky — Approval of agreement — Appropriation.

The cabinet may negotiate with the appropriate federal agencies for the operation or maintenance of a navigable waterway within the state boundaries. The cabinet shall not initiate negotiation for operation or maintenance of a waterway under federal control unless the lack of an agreement jeopardizes the continued navigation of said waterway. Any agreement negotiated by the cabinet shall be subject to the approval of the Governor and the secretary of the Finance and Administration Cabinet, and, if the negotiated agreement will involve the expenditure of state funds, the General Assembly may appropriate funds to fulfill the terms of the negotiated agreement before the negotiated agreement shall become effective.

History. Enact. Acts 1982, ch. 418, § 1, effective July 15, 1982.

151.600. Public information program for flood plain management and flood hazard mitigation programs.

  1. The water resources authority shall develop a public information program for use by local units of government which will assist them in the development of flood plain management and flood hazard mitigation programs. The authority shall make the public information program available statewide and easily accessible.
  2. The public information program shall be designed to increase public awareness and community responsiveness toward flood plain management and shall include, but not be restricted to, the following:
    1. Flood plain information training workshops for local officials and citizens;
    2. Flood plain information booklets describing flood plain management, including flood warnings, overall preparedness, flood insurance, and flood proofing of buildings; and
    3. Model flood plain development ordinances for adoption by local governmental units.

History. Enact. Acts 1980, ch. 173, § 1, effective July 15, 1980.

151.601. County and multicounty 2020 water management planning councils.

  1. 2020 water management planning councils shall be established for each county with the assistance of the appropriate area development district. Two (2) or more counties may form a multicounty 2020 water management planning council. The planning councils shall, as a minimum, be comprised of the following:
    1. Each county judge-executive or mayor of an urban-county government, or his or her authorized representative;
    2. One (1) representative selected by each community public water system, as defined in 401 KAR 8:010 sec. 1(71)(a), that provides water to persons in the county;
    3. One (1) representative selected by a local health department in the county; and
    4. One (1) representative selected by each city with a population equal to or greater than one thousand (1,000) based upon the most recent federal decennial census that is not a water supplier or distributor, unless that city chooses to be represented by another member of the planning council.
  2. If, after the 2020 water management planning council appointments have been made, a county judge/executive or mayor of an urban-county government determines that any areas of the county or urban county government remain unrepresented on the planning council, the county judge/executive or mayor of the urban-county government may appoint an individual to represent that area.
  3. The county judge/executive or mayor of an urban-county government or the county judge/executive or the mayor’s designated representative shall serve as the chair of the 2020 water management planning council of which either the county judge/executive or the mayor is a member.
  4. Members of the 2020 water management planning councils shall serve without pay but may be reimbursed by counties or appointing agencies for reasonable expenses incurred to carry out the work of the councils.
  5. The area development districts shall develop a forum for the chairpersons of the 2020 water management planning councils or multicounty planning councils to meet on at least a quarterly basis for the purpose of developing regional service strategies consistent with the findings and purpose set out in KRS 224A.300 .

History. Enact. Acts 2000, ch. 529, § 3, effective July 14, 2000; 2014, ch. 92, § 221, effective January 1, 2015.

151.603. Consistency of each council’s long-range water supply plan with other provisions of law — Contents of plan — Function of planning councils.

  1. Each 2020 water management planning council shall by July 1, 2001, develop a plan consistent with the county long-range water supply plan developed under KRS 151.114 and the water supply planning process set out in KRS Chapter 151 and administrative regulations of the cabinet and the purposes set out in KRS 224A.300 . The plan shall include a water needs forecast for the county for dates five (5), ten (10), fifteen (15), and twenty (20) years after the year 2000. The plan shall include a strategy for delivering potable water as needed into the underserved and unserved areas of the county, and shall encourage the merger and consolidation of water systems. The authority may disapprove and direct redevelopment of a plan under this subsection for inconsistencies with the purposes set out in KRS 224A.300 .
  2. The 2020 water management planning councils or multicounty planning councils shall assume the role and function of the planning units established to implement the water supply planning process set out in KRS 151.114 and administrative regulations of the cabinet.

History. Enact. Acts 2000, ch. 529, § 4, effective July 14, 2000.

151.605. Water service coordinators — Supplemental funding — Assistance by state agencies.

  1. The 2020 water management planning councils or multicounty planning councils may employ a water service coordinator. Planning councils may jointly employ a water service coordinator. The water service coordinator shall assume the role and function of the county long-range planning representative appointed under KRS 151.114 and the water supply planning process set out in KRS Chapter 151 and administrative regulations of the cabinet. In addition, water service coordinators shall assist the 2020 water planning councils or multicounty planning councils in developing the plans required under KRS 151.603 .
  2. The Kentucky Infrastructure Authority may establish by administrative regulations a program to provide or supplement funding for a multicounty planning council water service coordinator for a period of three (3) years from July 14, 2000. There shall be no more than one (1) position funded per area development district.
  3. All state agencies shall cooperate with and assist the 2020 water management planning councils as appropriate to accomplish the purposes set out in KRS 224A.300 .

History. Enact. Acts 2000, ch. 529, § 5, effective July 14, 2000.

151.607. Annual review and prioritization of planning councils’ plans.

  1. After July 1, 2001, and annually thereafter, each area development district shall review and prioritize the planning councils’ plans for underserved and unserved areas within the 2020 water management area for that district. The review and prioritization shall be conducted with the assistance and input of the authority and the water management councils for the counties or multicounty areas within a 2020 water management area. These prioritization plans shall be submitted to the authority for review and approval. The authority may suggest changes necessary for the purpose of qualifying for financial assistance from the 2020 water service account of the Kentucky Infrastructure Authority.
  2. Factors to be considered in prioritizing the plans for underserved and unserved areas within a 2020 water management area include:
    1. The current and potential customer base that would benefit from water service;
    2. The adequacy, cost-effectiveness, and dependability of water sources, water treatment capacity, and distribution lines that may be used to provide water service; and
    3. The potential to eliminate or prevent duplication of water distribution lines and facilities that may be used to provide the service.

History. Enact. Acts 2000, ch. 529, § 6, effective July 14, 2000.

Stream Restoration and Mitigation

151.610. Definitions for KRS 151.610 to 151.615.

As used in KRS 151.610 to 151.615 , the following definitions shall apply:

  1. “Compensatory mitigation” means replacement of aquatic resource functions and values adversely impacted by an activity permitted under a Section 404 permit;
  2. “HUC 10 watershed” means a hydrologic unit code (HUC) watershed delineated according to the method of subdivision for the organization of hydrologic data established by the United States Geological Survey (USGS). As used in KRS 151.610 to 151.615 , “watershed” means a HUC 10 watershed;
  3. “Mitigation organization” means an organization that is approved by the USACE as a mitigation bank or to manage or perform third-party compensatory mitigation under the Section 404 permit program; and is approved for such purposes under the Section 401 certification program;
  4. “Mitigation Review Team” means the interagency committee established pursuant to agreement with the USACE pursuant to Section 404 of the Clean Water Act to approve proposed projects for design and construction with in-lieu moneys; and perform annual reviews of ongoing and completed projects;
  5. “Restoration” means restoring an altered, unstable, or converted wetland or stream to a stable condition that improves its geomorphic, biological, and chemical integrity, reduces sedimentation, provides and enhances habitat, improves health of the aquatic community, and restores wetland or stream functions and values;
  6. “Riparian” means the zone of living and nonliving systems that influence or are influenced by a corridor of a river, stream, or waterbody;
  7. “Section 404 permit” means a permit issued by USACE under 33 U.S.C. sec. 1344 et seq. and “Section 401 certification” means a water quality certification issued under 33 U.S.C. sec. 1341 ;
  8. “Stream restoration and mitigation” means restoration of wetlands, streams, or other waterbodies, and mitigation of adverse effects on waterbodies, in a manner consistent with Sections 404 and 401 of the Clean Water Act;
  9. “USACE” means the United States Army Corps of Engineers;
  10. “2020 water management planning council” means the council established under KRS 151.601 ; and
  11. “404 In-lieu Fee Program” means a USACE-approved method for permittee satisfaction of compensatory mitigation requirements under a Section 404 permit. This method allows a permittee to provide funds to a qualified sponsor rather than undertaking a specific mitigation project or purchasing credits from an approved mitigation bank.

History. Enact. Acts 2008, ch. 97, § 1, effective July 15, 2008.

151.611. Stream Restoration and Mitigation Authorities — Powers — Limitation on authority — Legislative preferences on funding uses.

  1. A Stream Restoration and Mitigation Authority may be established for any HUC 10 watershed in the Commonwealth. Each authority formed under this section shall be a public body corporate and politic with the authority to:
    1. Sue and be sued;
    2. Enter into contracts with public and private individuals and corporations and engage in cooperative agreements with federal, state, and local governments or agencies, utilities, special districts, and nonprofit organizations for the performance of its duties and functions under KRS 151.610 to 151.615 ;
    3. Employ personnel as needed, as its fiscal resources may allow, and use the services of volunteers individually or through agreement with governmental agencies, nonprofit organizations, or foundations;
    4. Receive and expend funds from any source, including but not limited to private donations, charitable contributions, public grants, 404 In-lieu Fee Program, and appropriations from the General Assembly; and
    5. Acquire, sell, and hold real interests in property.
  2. Nothing in KRS 151.610 to 151.615 shall be construed to empower or authorize an authority established under KRS 151.610 to 151.615 to exercise regulatory powers with respect to water resources or water quality. An authority established under KRS 151.610 to 151.615 shall not be vested with the power of eminent domain.
  3. It is the preference of the General Assembly that funds contributed by a permittee under a Section 404 Permit into an in-lieu fund for a project designed for stream restoration and mitigation be utilized within the watershed where the adverse effects occur. The General Assembly recognizes that conservation and protection of the water resources of the Commonwealth, including streams, rivers, wetlands, and riparian habitats, may involve, in addition to restoration and enhancement of aquatic and riparian habitat, proper management of wastewater and stormwater, and abatement of pre-existing sources of pollution. Where an authority has been qualified by the USACE to manage an in-lieu fee or other compensatory mitigation arrangement that is approved after July 15, 2008, under Section 404, and to the extent that the USACE and the Mitigation Review Team has approved the use of such funds for elimination of pre-existing sources of pollution, the authority may expend a portion of the funds for those purposes, provided that the:
    1. Funds spent on water quality improvements are a component of a stream or wetland restoration plan for replacement of aquatic resource functions and values;
    2. Project has been reviewed and approved by the USACE and the Division of Water as being consistent with Sections 404 and 401 of the Clean Water Act; and
    3. In-lieu fees shall be available statewide, to all one hundred twenty (120) counties, subject to federal and state regulatory requirements.
  4. Nothing in KRS 151.610 to 151.615 shall preclude the authority, when acting as an approved qualified organization managing an in-lieu fee arrangement approved after July 15, 2008, from combining funding from other sources with in-lieu fees in order to achieve efficiencies in stream restoration or mitigation.

History. Enact. Acts 2008, ch. 97, § 2, effective July 15, 2008; 2018 ch. 171, § 19, effective April 14, 2018; 2018 ch. 207, § 19, effective April 27, 2018.

Compiler's Notes.

Sections 401 and 404 of the Clean Water Act referenced herein are compiled at 33 USCS §§ 1341 and 1344, respectively.

Legislative Research Commission Notes.

(6/29/2017). Under the authority of KRS 7.136(1), a reference to “KRS 131.990 (2)” in subsection (1)(b)5. of this statute has been changed to “KRS 131.990 (1)” by the Reviser of Statutes following the enactment of 2017 Ky. Acts ch. 74, sec. 67, which deleted subsection (1) of KRS 131.990 and renumbered the subsequent subsections, but did not amend this statute to conform.

151.612. Assistance in establishing Stream Restoration and Mitigation Authority.

  1. Any 2020 water management planning council located in a given HUC 10 watershed or portion of a given HUC 10 watershed may contact the water service coordinator in the area development district that serves the council and request assistance with the establishment of a Stream Restoration and Mitigation Authority.
  2. If there is a request by a 2020 water management planning council to develop a Stream Restoration and Mitigation Authority for a HUC 10 watershed, and if that watershed extends through more than one (1) area development district, the water service coordinator shall contact the water service coordinators of the affected area development districts and inform them of the request to form a Stream Restoration and Mitigation Authority.
  3. The water service coordinators shall request the 2020 water management planning councils submit their list of nominees for the Stream Restoration and Mitigation Authority, and the water service coordinator shall forward those lists to the Governor for appointment in accordance with KRS 151.613 .
  4. Any 2020 water management council located in the watershed may elect at any time not to participate in a Stream Restoration and Mitigation Authority by indicating the election in a resolution. However, that election shall not limit the right of any other 2020 water management council to establish a Stream Restoration and Mitigation Authority for that watershed.

History. Enact. Acts 2008, ch. 97, § 3, effective July 15, 2008.

151.613. Authority membership — Qualifications — Terms — Compensation — Officers.

  1. Members of a Stream Restoration and Mitigation Authority established under KRS 151.610 to 151.615 shall reside or have a real property interest in the given watershed and shall serve as ex officio members of the 2020 water management planning councils established under KRS 151.601(1) that lie within a given watershed.
  2. Each authority shall be composed of the following members appointed by the Governor:
    1. If there is a sewer utility or utilities serving all or a portion of the HUC 10 watershed, one (1) representative of these utilities;
    2. If there is a water utility or utilities serving all or a portion of the HUC 10 watershed, one (1) representative of these utilities;
    3. Two (2) representatives of conservation organizations, with one (1) selected from a local watershed organization, if possible;
    4. Three (3) representatives of business or industries with facilities or operations located within the watershed, selected to provide representation from development, manufacturing, and extractive industry sectors, if possible;
    5. Two (2) representatives from the local governments whose jurisdictional boundaries include all or a portion of the watershed, with one (1) representing the largest incorporated municipality in the watershed if any, and the other representing county government; or in the absence of an incorporated municipality whose jurisdictional boundaries include all or a portion of the watershed, two (2) representatives of county government;
    6. One (1) representative of the Soil and Water Conservation District in which the watershed is located;
    7. One (1) representative of an organization representing aquatic recreation interests;
    8. One (1) representative of the agricultural land use sector; and
    9. One (1) representative of a nonprofit organization managing grants affecting all or any portion of the watershed, in order to support local efforts by schools, local governments, nonprofit organizations, and volunteers to accomplish the goals of improving water quality, addressing solid waste problems, and promoting environmental awareness and education.
  3. Members shall serve four (4) year terms, except the first members of the authority shall serve for terms of years as follows:
    1. Four (4) members shall serve for a term of four (4) years;
    2. Four (4) members shall serve for a term of three (3) years; and
    3. The remaining members shall serve for a term of two (2) years.
  4. Members of the authority may be reappointed. A vacancy in an unexpired term shall be filled for the unexpired portion of the term in the same manner as the original appointment to that term.
  5. Members of the authority shall serve without pay but may be reimbursed by the authority, as fiscal resources allow, for reasonable expenses incurred to carry out their work.
  6. Each authority shall elect officers to serve annual terms, adopt bylaws, and establish an annual budget and, when appropriate, may establish advisory committees and policies it deems necessary for the authority’s operation.
  7. The authority may remove any member at the member’s request or due to poor attendance at meetings.
  8. Any organization meeting the following conditions may become a Stream Restoration and Mitigation Authority for the purposes of KRS 151.610 to 151.615 :
    1. The organization was created as an instrumentality of one (1) or more local governments pursuant to KRS Chapter 65 or 273 for the purposes of planning and implementing stream restoration and water quality enhancement projects on a watershed basis;
    2. The organization was established prior to January 1, 2008;
    3. The organization has adopted a resolution by majority vote to become a Stream Restoration and Mitigation Authority, and has informed the water service coordinator or coordinators in the watershed; and
    4. The membership of the organization’s governing body has been expanded to include representatives as identified under subsection (2) of this section. The terms of office for existing members of Stream Restoration and Mitigation Authorities established under this subsection shall continue in the same manner until the date that the term expires. New members shall be appointed in the manner prescribed under subsections (2), (3), and (4) of this section, except that newly appointed members shall serve four (4) year terms.

History. Enact. Acts 2008, ch. 97, § 4, effective July 15, 2008.

151.614. Authority powers and duties — Reports.

  1. Stream Restoration and Mitigation Authorities established under KRS 151.610 to 151.615 shall work in close partnership with local, state, and federal agencies in actively advocating for the restoration, protection, and enhancement of the watershed through stream restoration and mitigation projects. To this end, an authority may:
    1. Recommend proposed stream restoration and mitigation projects to the 404 Mitigation Review Team for its consideration; and
    2. Undertake the management of stream restoration and mitigation projects and may, in accordance with policies and regulations of the USACE, seek approval to be designated by the USACE as a qualified mitigation organization.
  2. Stream Restoration and Mitigation Authorities may:
    1. Establish a technical advisory committee, soliciting participation from representatives of area utilities and water, sewer, and sanitation districts, federal, state, and local governments, and agencies thereof, consultants, colleges, and universities to assist the authority in the prioritization of proposed mitigation projects, the management of mitigation projects and in other efforts to improve watershed management;
    2. Review and comment on plans developed by federal, state, and local government agencies which relate to the watershed management and identify and recommend areas in which improved coordination of planning and project design could, on a case-by-case and a systemic basis, result in greater efficiencies and better outcomes for watershed management and water resource protection;
    3. Initiate, sponsor, and participate in educational programs to increase public awareness and stakeholder involvement in water resources protection and watershed management;
    4. Prepare a six (6) year work plan, with annual review, for improvement of the water resources of the watershed, including the:
      1. Identification and prioritization of site-specific stream restoration projects;
      2. Development of recommendations for coordination of infrastructure improvements and water resource enhancement;
      3. Solicitation of public participation in development of the work plan and of other strategies for water resource improvement and watershed management; and
      4. Description of accomplishment during the previous year and the status of projects undertaken by the authority of other entities within the watershed;
    5. Review project proposals for mitigation or restoration within the watershed to ensure that the appropriate benchmarks and monitoring of preproject and postproject hydrologic and biologic conditions are included in the mitigation and restoration projects in order to measure success in achievement of the project goals;
    6. Conduct pilot or demonstration projects for stream restoration and mitigation; and
    7. Contract for technical assistance in undertaking any of the responsibilities authorized under KRS 151.610 to 151.615 .
  3. Stream Restoration and Mitigation Authorities shall report to the Legislative Research Commission by October 31 of each year on any stream restoration and mitigation work performed by the authority in the watershed, including the amount of mitigation funds received from USACE or from a permittee under a Section 404 permit approved by the USACE, and any funding received from all sources and a listing of upcoming restoration and mitigation projects authorized by the USACE or the Department for Environmental Protection.
  4. When performing any stream restoration or mitigation activity, the authority shall comply with all permitting procedures set out in federal and state statutes and associated regulations of the USACE and the Kentucky Energy and Environment Cabinet, and other local, state, and federal agencies, as appropriate.
  5. The work plan provided for in paragraph (d) of subsection (2) of this section shall not be construed as amending or affecting plans developed under local, state, or federal law, including plans developed under Section 208 of the Federal Water Pollution Act, 33 U.S.C. sec 1288.

History. Enact. Acts 2008, ch. 97, § 5, effective July 15, 2008; 2010, ch. 24, § 179, effective July 15, 2010.

151.615. Authority pilot projects permitted.

  1. Stream Restoration and Mitigation Authorities established under KRS 151.610 to 151.615 may conduct one (1) or more of the following restoration and mitigation activities as pilot projects, identified within its watershed plan:
    1. Restoration and mitigation of impairments or permanent loss of water resources due to mining operations;
    2. Restoration and mitigation of impairment or permanent loss of water resources due to highway or road construction;
    3. Restoration and mitigation of impairment or permanent loss of water resources due to agricultural or sivicultural operations; or
    4. Restoration and mitigation of impairment or permanent loss of water resources due to residential or commercial building construction.
  2. If a Stream Restoration and Mitigation Authority undertakes a project that does not otherwise require development and submittal to a state or federal agency of a plan with standards and criteria for evaluating project success, the authority shall develop standards and criteria for evaluating the project’s success. The authority shall include an account of the pilot projects findings in the report required under KRS 151.614(3).

History. Enact. Acts 2008, ch. 97, § 6, effective July 15, 2008.

Groundwater Monitoring

151.620. Legislative findings.

The General Assembly finds that groundwater makes up over ninety-five percent (95%) of the water resources in Kentucky. Groundwater accounts for over thirty percent (30%) of the public and domestic water supplies in the Commonwealth, and up to ninety percent (90%) of all rural domestic supplies, and is the major source of water to streams. It is imperative that a system for characterizing and monitoring groundwater be developed so that information acquired through various monitoring programs will allow Kentucky to identify and characterize the groundwater resource. The information from the monitoring network can be used to enhance the Kentucky Groundwater Data Repository; identify, characterize, and model groundwater systems; develop community and private water supplies; address resource allocation concerns; set boundaries on wellhead protection areas; recognize groundwater degradation if it occurs; and evaluate and improve the quality and quantity of data collected through all programs.

History. Enact. Acts 1998, ch. 30, § 1, effective July 15, 1998.

151.621. Definitions for KRS 151.620 to 151.629.

As used in KRS 151.620 to 151.629 , unless the context requires otherwise:

  1. “Committee” means the Interagency Technical Advisory Committee on Groundwater as created in KRS 151.629 ;
  2. “Groundwater resource” means groundwater that is currently being used or is capable of being used;
  3. “Groundwater system” means a body of groundwater that is separated from other bodies of groundwater either by flow characteristics including but not limited to flow direction, flow speed, permeability, or storativity, or by water chemistry or layers of rock;
  4. “KGS” means the Kentucky Geological Survey; and
  5. “Monitoring network” means a series of wells, springs, and associated surface water that will be tested on a periodic basis for water level, discharge, and water chemistry.

History. Enact. Acts 1998, ch. 30, § 2, effective July 15, 1998.

151.625. Establishment of long-term groundwater monitoring network — Duties.

  1. The KGS shall, in cooperation with the Interagency Technical Advisory Committee on Groundwater, establish a long-term groundwater monitoring network for the purpose of characterizing the quality, quantity, and distribution of Kentucky’s groundwater resources.
  2. The monitoring network shall include:
    1. Representative sites sampled by various agencies;
    2. Water wells, springs, and surface water associated with wells and springs; and
    3. New monitoring wells installed in areas of demonstrated need.

      This network shall collect information on a statewide basis and provide long-term data collection to determine the quality, quantity, and occurrence of groundwater throughout the Commonwealth.

  3. The KGS shall utilize collected data to support research efforts that develop models for groundwater systems, and to determine and monitor trends of groundwater movement, water quality, and quantity.
  4. The KGS shall provide data from the network to the Kentucky Groundwater Data Repository and make the data readily available to the public, government agencies, industry, and other entities that request access. Analyzed data may be made available in the form of maps, charts, bulletins, and reports.
  5. The KGS shall solicit input from federal, state, and local agencies, and industry, agriculture, universities, and the public to determine priority monitoring locations based on water quality and quantity concerns as the network is developed.
  6. Within ninety (90) days of the end of each state fiscal year, the KGS shall provide to the Governor and the Legislative Research Commission a summary of the groundwater monitoring network data collection and analysis activities.

History. Enact. Acts 1998, ch. 30, § 3, effective July 15, 1998.

151.629. Interagency Technical Advisory Committee on Groundwater — Duties and responsibilities.

  1. There is established an Interagency Technical Advisory Committee on Groundwater to assist the KGS in the development, coordination, and implementation of a groundwater monitoring network for the Commonwealth. The committee shall consist of one (1) representative from each of the following agencies, to be appointed by that agency:
    1. Division of Conservation of the Department for Natural Resources;
    2. Division of Public Health Protection and Safety of the Cabinet for Health and Family Services;
    3. Division of Forestry of the Department for Natural Resources;
    4. Division of Environmental Services of the Department of Agriculture;
    5. Division of Waste Management of the Department for Environmental Protection;
    6. Division of Water of the Department for Environmental Protection;
    7. Department for Environmental Protection;
    8. Department for Natural Resources;
    9. Kentucky Geological Survey;
    10. University of Kentucky College of Agriculture; and
    11. University of Kentucky Water Resources Research Institute.
  2. The committee shall have two (2) nonvoting legislative liaisons who shall be members of the General Assembly. One (1) liaison shall be a House member appointed by the Speaker of the House of Representatives and one (1) liaison shall be a Senate member appointed by the President of the Senate. The chair of the committee shall be the director of the University of Kentucky Water Resources Research Institute. The duties and responsibilities of the committee shall include:
    1. Developing a plan to coordinate agencies for the overall characterization of the state’s groundwater, including occurrence, flow systems, water quantity, and water quality;
    2. Reviewing the data entry process to ensure that all data collected is placed into the Kentucky Groundwater Data Repository;
    3. Establishing a long-term groundwater monitoring plan for the Commonwealth;
    4. Making recommendations for prioritization of the state’s groundwater research needs; and
    5. Annually reviewing and evaluating groundwater data collection and analysis.
  3. In addition to the members identified in subsection (1) or (2) of this section, the committee may have, as one (1) of its members, one (1) nonvoting representative from the United States Geological Survey, appointed by that agency.

History. Enact. Acts 1998, ch. 30, § 4, effective July 15, 1998; 2004, ch. 88, § 2, effective July 13, 2004; 2005, ch. 99, § 122, effective June 20, 2005; 2005, ch. 123, § 18, effective June 20, 2005.

Legislative Research Commission Note.

(6/20/2005). This section was amended by 2005 Ky. Acts chs. 99 and 123, which do not appear to be in conflict and have been codified together.

Improvement of Public Drinking Water Supplies

151.630. Legislative finding — Cabinet’s duty to administer system capacity program — Authority to promulgate administrative regulations.

The General Assembly finds that the Federal Safe Drinking Water Act, as amended by Public Law 104-182, creates an opportunity for Kentucky to improve public drinking water supplies. Therefore, the cabinet shall administer a system capacity program for public water systems consistent with the federal law. For purposes of KRS 151.630 to 151.636 , “system capacity” means the technical, financial, and managerial capacity to operate a public water system in compliance with the Federal Safe Drinking Water Act, as amended by Public Law 104-182. The cabinet may promulgate administrative regulations as necessary to administer KRS 151.630 to 151.636 .

History. Enact. Acts 1998, ch. 311, § 1, effective July 15, 1998.

Compiler’s Notes.

The Federal Safe Drinking Water Act referenced herein is compiled as 42 USCS §§ 300f et seq. The amendments by Public Law 104-182 are found primarily at 42 USCS §§ 300g-1-300g-9, 300h, 300h-5-300h-8, and 300j-300j-25.

151.632. System capacity development strategy — Assistance to existing systems in plan development.

  1. Not later than August 6, 2000, the cabinet shall develop and begin implementing, a strategy to assist public water systems in acquiring and maintaining technical, financial, and managerial system capacity.
  2. In preparing the system capacity development strategy, the cabinet shall solicit and consider public comment on, and incorporate into the strategy as appropriate:
    1. The methods or criteria that the cabinet will use to identify and prioritize public water systems most in need of improving technical, financial, and managerial capacity;
    2. A description of the institutional, regulatory, financial, tax, or legal factors at the federal, state, or local level that encourage or impair system capacity development;
    3. A description of how the cabinet will use the authorities and resources of the Safe Drinking Water Act as amended by PL 104-182, or other means, to assist public water systems in complying with national primary drinking water regulations, to encourage the development of partnerships between public water systems to enhance the system capacity of public water systems, and to assist public water systems in the training and certification of operators;
    4. A description of how the cabinet will establish a baseline against which to measure improvements in system capacity with respect to national primary drinking water regulations, this chapter, KRS 224.10-110 , and administrative regulations promulgated thereunder; and
    5. An identification of the persons that have an interest in and are involved in the development and implementation of the system capacity development strategy, including all appropriate agencies of federal, state, and local governments, private and nonprofit public water systems, and public water system customers.
  3. If the cabinet determines that an existing public water system does not have system capacity, it may assist the public water system in submitting a system capacity development plan as part of the long range water supply plan required by KRS 151.114 . The plan shall contain timetables, goals, and funding sources necessary for the public water system to achieve system capacity.

History. Enact. Acts 1998, ch. 311, § 2, effective July 15, 1998.

Compiler’s Notes.

The Federal Safe Drinking Water Act referenced herein is compiled as 42 USCS §§ 300f et seq. The amendments by Public Law 104-182 are found primarily at 42 USCS §§ 300g-1-300g-9, 300h, 300h-5-300h-8, and 300j-300j-25.

151.634. Requirement for system capacity for new community or nontransient noncommunity public water systems after October 1, 1999.

After October 1, 1999, new community or nontransient noncommunity public water systems, as defined by federal law, shall not be created unless they have system capacity. For new community or nontransient noncommunity public water systems that intend to begin operating after October 1, 1999, the cabinet shall not approve plans pursuant to KRS 224.10-110 and the administrative regulations promulgated pursuant thereto, unless the systems demonstrate to the cabinet that they have system capacity.

History. Enact. Acts 1998, ch. 311, § 3, effective July 15, 1998.

151.636. Cabinet’s requirement to conduct a source water assessment and delineation program.

The cabinet shall conduct a source water assessment and delineation program as described in the 1996 amendments to the Federal Safe Drinking Water Act, Public Law 104-182.

History. Enact. Acts 1998, ch. 311, § 4, effective July 15, 1998.

Compiler’s Notes.

The Federal Safe Drinking Water Act referenced herein is compiled as 42 USCS §§ 300f et seq. The amendments by Public Law 104-182 are found primarily at 42 USCS §§ 300g-1-300g-9, 300h, 300h-5-300h-8, and 300j-300j-25.

West Fork Drakes Creek Dam and Reservoir Interstate Authority

151.650. Authority created — Purposes — Legislative findings.

  1. The West Fork Drakes Creek Dam and Reservoir Interstate Authority is hereby created. The West Fork Drakes Creek Dam and Reservoir Interstate Authority shall be a public body corporate and politic and shall be referred to as the “authority” in KRS 151.650 to 151.664 . The authority shall develop the resources of the region embracing the Tennessee county of Sumner and the Kentucky county of Simpson by means of the construction and maintenance of a dam across the West Fork Drakes Creek and the reservoir created by this dam. The water impounded within this reservoir shall be utilized by the areas encompassing the authority to provide a source of water for both recreation and economic development to be used in industrial, commercial, agricultural, and residential activities. The authority may develop this dam and reservoir for these stated purposes.
  2. The General Assembly hereby finds that the need for the purposes for which this authority is created is evidenced by the effects which the recent droughts have had and continue to have on this area. The General Assembly also finds that an adequate supply of potable water is essential for the continued growth of this area.

History. Enact. Acts 1990, ch. 381, § 1, effective July 13, 1990.

151.652. Board of directors.

  1. The authority shall be governed by a board of directors. The board shall make policy, which shall be implemented.
  2. The membership of the board shall be as follows:
    1. A member of the county legislative body of Sumner County, Tennessee, and Simpson County, Kentucky, chosen by their respective legislative bodies;
    2. The mayors of the cities of Portland, Tennessee, and Franklin, Kentucky;
    3. A member of the city legislative bodies from the cities of Portland, Tennessee, and Franklin, Kentucky, chosen by the respective legislative bodies;
    4. A member of an industrial foundation board or equivalent, if one (1) exists, from Portland, Tennessee, and Franklin, Kentucky, as appointed by the respective boards; and
    5. A commissioner or designee chosen by the board of commissioners of the Simpson County water district.
    1. Each local governmental entity which is authorized to designate one (1) of its members for membership on the board shall designate the member by an appropriate resolution or ordinance. (3) (a) Each local governmental entity which is authorized to designate one (1) of its members for membership on the board shall designate the member by an appropriate resolution or ordinance.
    2. Each participating governmental entity shall adopt an appropriate resolution or ordinance which shall state the intention of the local entity to participate in the authority; the resolution or ordinance shall also include a recitation of the participating entity’s statutory authority for participation.
    3. The authority shall not convene or conduct business until the requirements of this subsection have been met.
  3. Any elected official’s or his designated alternate’s position on the board shall run concurrent with the official’s elected term.
  4. Any nonelected official shall have a term of four (4) years.
  5. If a vacancy occurs on the board, the position shall be filled in the same manner as set forth in the original appointment. A vacancy shall occur when any board member no longer meets the requirements for appointment to the board.
  6. The board shall meet annually at a time and place designated by the board. The time, place, and date of this meeting shall be published in newspapers of general circulation in Sumner and Simpson Counties at least seven (7) days prior to the meeting.
  7. The board at their annual meeting shall adopt or amend bylaws, if any, adopt an annual budget, elect officers, and adopt any policies and work programs necessary for the operation of the authority and fulfillment of the purposes of the authority.
  8. Fifty percent (50%) of the membership of the board shall constitute a quorum for the conduct of the business of the authority.
  9. The act of fifty percent (50%) plus one (1) of all those voting shall be the act of the board for the execution of business.
  10. The board at its annual meeting shall elect as authority officers a chairman, vice chairman, and a secretary-treasurer who shall serve terms of one (1) year. The chairman shall alternate between members from Tennessee and Kentucky. When a member from one (1) of the states sits as chairman, no more than one (1) other member from the state can sit as vice chairman or secretary-treasurer.

History. Enact. Acts 1990, ch. 381, § 2, effective July 13, 1990.

151.654. Powers, functions, and duties.

The authority shall have the following general powers, functions, and duties:

  1. Perpetual succession in the corporate name;
  2. To sue and be sued in the corporate name and to sue and be sued in either Tennessee or Kentucky with the jurisdiction of either state’s courts to be determined by where the cause of action arose;
  3. To adopt, use, and alter a corporate seal, which shall be judicially noticed;
  4. To enter into contracts and cooperative agreements with federal, state, and local governments and agencies thereof, with private individuals, corporations, associations, and with other organizations that the board may deem necessary or convenient in carrying out the purposes of KRS 151.650 to 151.664 ;
  5. To adopt, amend, and repeal bylaws;
  6. To employ an executive director and to appoint managers, officers, employees, attorneys, and agents as the board deems necessary for the transaction of its business, fix their compensation, define their duties, and require bonds of such of them as the board may determine;
  7. To receive and expend funds from any source for staffing and other administrative expenses, research, planning, coordination, and activities deemed necessary to promote and carry out the purposes of the authority;
  8. To cooperate and coordinate its activities with local, regional, and state planning agencies in developing and implementing plans for the development of the projects of the authority;
  9. To cooperate and coordinate its activities with the federal agencies having responsibility for developing natural, human, and physical resources of the region;
  10. To cooperate with local and regional financial institutions in assembling financial resources for commercial, industrial, and other development;
  11. To enter into compacts or contractual arrangements with planning agencies of both states, for the purpose of preparing joint-comprehensive plans for the development and maintenance of the projects of the authority;
  12. To acquire and hold real and personal property or interests therein as necessary to carry out the purposes of KRS 151.650 to 151.664 ; and
  13. To have and exercise other authority deemed necessary by the board to further and promote the purpose of KRS 151.650 to 151.664 .

History. Enact. Acts 1990, ch. 381, § 3, effective July 13, 1990.

151.656. Dam and reservoir construction and operation.

The authority may construct, operate, and maintain a dam and reservoir on the West Fork Drakes Creek and foster recreational and economic developmental projects that would utilize these resources. The construction of this dam and reservoir shall not commence until the authority has first obtained the consent and approval of all necessary regulatory bodies.

History. Enact. Acts 1990, ch. 381, § 4, effective July 13, 1990.

151.658. Bonding authority and procedures.

  1. The authority may issue its bonds from time to time for the purpose of paying in whole or in part the cost of acquiring lands and interests therein and of constructing facilities and improvements subject to the limitations and conditions provided in KRS 151.650 to 151.664 . Any resolution of the board authorizing the sale of bonds shall be submitted to the state funding board established by Tennessee statute and shall become effective only upon approval by that board. If the board refuses approval, it shall state in writing the reasons for the action.
  2. Except as otherwise expressly provided in this section, all bonds issued by the authority shall be payable solely out of the revenues and receipts derived from the authority’s projects or of any as may be designated in the proceeding of the board under which the bonds are authorized to be issued, including debt obligations of the lessee or contracting party obtained from or in connection with the financing of a project. Notes issued in anticipation of the issuance of bonds may be retired out of the proceeds of the bonds. The bonds may be executed and delivered by the authority at any time and from time to time, may be in the form and denominations and of the terms and maturities, may be in registered or bearer form either as to principal or interest or both, may be payable in the installments and at the time or times not exceeding forty (40) years from the date thereof, may be payable at the place or places whether within or without the state, may bear interest at the rate or rates payable at the time or times and at the place or places and evidenced in the manner, may be executed by the officers of the authority, and may contain the provisions not inconsistent herewith, as shall be provided in the proceedings of the board under which the bonds are authorized to be issued. If deemed advisable by the board, there may be retained in the proceedings under which any bonds of the authority are authorized to be issued an option to redeem all or any part thereof as specified in the proceedings, at the price or prices and after the notice or notices and on the terms and conditions as set forth in the proceedings, and as briefly recited on the face of the bonds, but nothing herein contained shall be construed to confer on the authority any right or option to redeem any bonds except as provided in the proceedings under which they are issued. Any bonds of the authority may be sold at public or private sale in the manner, at the price, and from time to time, as determined by the board to be most advantageous, and the authority may pay all expenses, premiums, and commissions which its board deems necessary or advantageous in connection with the issuance thereof. Issuance by the board of one (1) or more series of bonds for one (1) or more purposes shall not preclude it from issuing other bonds in connection with the same project or any other project, but the proceedings under which any subsequent bonds may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds. Proceeds of bonds issued by the authority may be used for the purpose of constructing, acquiring, reconstructing, improving, equipping, furnishing, bettering, or extending any project or projects as authorized by KRS 151.650 to 151.664 , including the payment of interest on the bonds during construction of any project and for two (2) years after the estimated date of completion, and payment of engineering, fiscal, architectural, and legal expenses incurred in connection with the project and the issuance of the bonds and the establishment of a reasonable reserve fund for the payment of principal of and interest on the bonds in the event of a deficiency in the revenues and receipts available for the payment.
  3. Any bonds or notes of the authority at any time outstanding may at any time and from time to time be refunded by the authority by the issuance of its refunding bonds in the amount the board deems necessary, but not exceeding the sum of the following:
    1. The principal amount of the obligations being refinanced;
    2. Applicable redemption premiums thereon;
    3. Unpaid interest on the obligations to the date of delivery or exchange of the refunding bonds.

      If the proceeds from the sale of the refunding bonds are to be deposited in trust, interest shall accrue on obligations from the date of delivery to the first or any subsequent available redemption date or dates selected, in its discretion, by the board or to the date or dates of maturity, whichever shall be determined by the board to be most advantageous or necessary to the authority;

    4. A reasonable reserve for the payment of principal of and interest on the bonds and a renewal and replacement reserve;
    5. If the project to be constructed from the proceeds of the obligations being refinanced has not been completed, an amount sufficient to meet the interest charges on the refunding bonds during the construction of the project and for two (2) years after the estimated date of completion, but only to the extent that interest charges have not been capitalized from the proceeds of the obligations being refinanced; and
    6. Expenses, premiums, and commissions of the authority, including bond discounts, deemed by the board to be necessary for the issuance of the refunding bonds. A determination by the board that any refinancing is advantageous or necessary to the authority, that any of the amounts provided in the preceding sentence should be included in such refinancing, or that any of the obligations to be refinanced should be called for redemption on the first or any subsequent available redemption date permitted to remain outstanding until their respective dates of maturity, shall be conclusive.
  4. Any refund may be made whether the obligations to be refunded shall have then matured or shall thereafter mature, either by the exchange of the refunding bonds for the obligations to be refunded thereby with the consent of the holders of the obligations so to be refunded, or by sale of the refunding bonds and the applications of the proceeds thereof to the payment of the obligations to be refunded thereby, and regardless of whether or not the obligations proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.
  5. Prior to issuance of the refunding bonds, the board shall cause notice of its intention to issue the refunding bonds, identifying the obligations proposed to be refunded and setting forth the estimated date of delivery of the refunding bonds, to be given to the holders of the refunding bonds, to be given to the holders of the outstanding obligations by publication of an appropriate notice one (1) time each in a newspaper having general circulation in the area and in a financial newspaper published in New York, New York, and having national circulation. As soon as practicable after the delivery of the refunding bonds, and whether or not any of the obligations to be refunded are to be called for redemption, the board shall cause notice of the issuance of the refunding bonds to be given in the manner provided in the preceding sentence.
  6. If any of the obligations to be refunded are to be called for redemption, the board shall cause notice of redemption to be given in the manner required by the proceedings authorizing the outstanding obligations.
  7. The principal proceeds from the sale of any refunding bonds shall be applied only as follows:
    1. To the immediate payment and retirement of the obligations being refunded; or
    2. To the extent not required for the immediate payment of the obligations being refunded, the proceeds shall be deposited in trust to provide for the payment and retirement of the obligations being refunded, and to pay any expenses incurred in connection with the refunding, but provision may be made for the pledging and disposition of any surplus, including without limitation, provision for the pledging of any surplus to the payment of the principal of and interest on any issue or series of refunding bonds. Money in any trust fund may be invested in direct obligations of, or obligations the principal of and interest on which are guaranteed, by the United States government, or obligations of any agency or instrumentality of the United States government, or in certificates of deposit issued by a bank or trust company located in the State of Kentucky if the certificates shall be secured by a pledge of any obligations having any aggregate market value, exclusive of accrued interest, equal at least to the principal amount of the certificates so secured. Nothing herein shall be construed as a limitation on the duration of any deposit in trust for the retirement of obligations being refunded which shall not have matured and which shall not be presently redeemable or, if presently redeemable, shall not have been called for redemption.
  8. All bonds, refunding bonds, and the interest coupons applicable thereto shall be construed to be negotiable instruments.
  9. The principal of and interest on any bonds issued by the authority may be secured by a pledge of the revenues and receipts out of which the same shall be made payable, and may be secured by a mortgage or deed of trust covering all or any part of the projects from which the revenues or receipts so pledged may be derived, including any enlargements of and additions to any projects thereafter made, or by an assignment and pledge of all or any part of the authority’s interest in and rights under the leases, sale contracts, or loan agreements relating to the projects, or any thereof. The resolution under which the bonds are authorized to be issued and any mortgage or deed of trust may contain any agreements and provisions respecting the maintenance of the projects covered thereby, the fixing and collection of rents or payments with respect to any projects or portions thereof covered by the resolution, mortgage, or deed of trust, the creation and maintenance of special funds from the revenues and from proceeds of the bonds, and the rights and remedies available in the event of default, as the board shall deem advisable and not in conflict with the provisions of KRS 151.650 to 151.664 . Each pledge, agreement, mortgage, and deed of trust made for the benefit of security of any of the bonds of the authority shall continue effective until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid.

History. Enact. Acts 1990, ch. 381, § 5, effective July 13, 1990.

151.660. Contributions by local governments — State appropriation requests.

  1. The various counties, towns, and incorporated municipalities which are members of the authority may contribute to the work of the authority any amounts of money that their respective governing bodies, acting in their sole discretion, shall approve to be paid from the general fund of the respective county or city. Governing bodies of member local governments in Kentucky may levy any tax for this purpose not in conflict with the statutes of this state.
  2. No later than October of each year, the authority may transmit to the Governors of the Commonwealth of Kentucky and the State of Tennessee a request and an amount of appropriation needed during the next fiscal year for purposes of the authority including administration, operations, and capital improvements, and appropriate justification for use of the appropriation, the amount or other amount deemed appropriate by the Governor to be included in the budget transmitted to the Kentucky or Tennessee General Assembly.

History. Enact. Acts 1990, ch. 381, § 6, effective July 13, 1990.

151.662. Statement of objectives — Annual report — Accounting and auditing.

  1. The board shall annually formulate and issue a statement of objectives, priorities, and programs that it has adopted or envisions to meet these objectives. This statement of objectives shall be included in the annual report.
  2. The board shall report annually to the Governors of the Commonwealth of Kentucky and State of Tennessee, and to the General Assemblies. This report shall also be transmitted to the governing bodies of each county and incorporated municipality of the authority. The report shall include a statement of financial receipts and expenditures, assets and liabilities of the authority, a summary of all activities and accomplishments for the period, and proposed plans for the next year.
  3. The Auditor of Public Accounts shall establish in cooperation with the Comptroller of the Treasury of Tennessee, an acceptable accounting system and an auditing requirement for the authority. Purchasing and contracting procedures adopted by the authority shall not be effective until approved by the Auditor of Public Accounts.

History. Enact. Acts 1990, ch. 381, § 7, effective July 13, 1990.

151.664. State agency cooperation.

All agencies and departments of state government shall extend their cooperation and lend assistance to the authority in the formulation and implementation of the purposes of KRS 151.650 to 151.664 .

History. Enact. Acts 1990, ch. 381, § 8, effective July 13, 1990.

Kentucky River Authority

151.700. Declaration of policy.

  1. The General Assembly declares that based upon an implied contract between the Commonwealth and the United States government through the Secretary of the United States Army and his predecessors, the validity of which is evidenced by over one hundred (100) years of performance by the federal government, it is the responsibility of the United States Army Corps of Engineers and the United States Congress to operate and maintain the locks and dams on the Kentucky River and therefore urges the Congress and the corps to provide the funds necessary to properly maintain the locks and dams, the condition of which the General Assembly finds is deteriorating.
  2. The General Assembly recognizes the historic importance of the Kentucky River locks and dams in providing a source of clean water supply for several hundred thousand citizens of the Commonwealth. Therefore, if the Congress and the corps fail to fulfill their responsibility for the Kentucky River locks and dams as stated in subsection (1) of this section and the Commonwealth thereby must assume ownership of the locks and dams, it shall be the public policy of the Commonwealth to protect the health and welfare of the citizens dependent upon this system of locks and dams for their source of clean water, and to that end, the Commonwealth shall provide for the proper maintenance of the Kentucky River locks and dams through the Kentucky River Authority. It shall be the public policy of the Commonwealth that should the United States Army Corps of Engineers and the United States Congress fail to fulfill their responsibility to maintain and operate the Kentucky River locks and dams, and should all efforts on the part of the Commonwealth fail to force the corps and Congress to fulfill their responsibility, then the Commonwealth shall assume ownership of all United States Army Corps of Engineers property, both real and personal, on or adjacent to the Kentucky River after ninety (90) days from the date on which the corps obtains final authority to dispose of such property. During that ninety (90) day period, the Commonwealth shall publish legal notice of its intention to assume ownership of the property.

History. Enact. Acts 1986, ch. 383, § 1, effective July 15, 1986; 1988, ch. 295, § 1, effective July 15, 1988.

NOTES TO DECISIONS

1.Ownership of Locks and Dams.

Under current law (following 1990 amendment to KRS 151.710 by Acts 1990, ch. 500), ownership of the locks and dams of the Kentucky River is not a statutory prerequisite to the implementation of the Kentucky River Authority’s powers. Kentucky River Auth. v. City of Danville, 932 S.W.2d 374, 1996 Ky. App. LEXIS 112 (Ky. Ct. App. 1996), cert. denied, 520 U.S. 1186, 117 S. Ct. 1469, 137 L. Ed. 2d 682, 1997 U.S. LEXIS 2550 (U.S. 1997).

151.705. Kentucky River Authority — Functions — Public purposes — Management of authority.

The Kentucky River Authority is created to perform the essential governmental functions and public purposes set out in KRS 151.700 to 151.730 . The authority shall be a public corporation and independent governmental agency and instrumentality of the state. The responsibilities of the authority shall be managed and implemented by a board of directors as set out in KRS 151.710 .

History. Enact. Acts 2000, ch. 265, § 2, effective July 14, 2000; 2000, ch. 287, § 2, effective July 14, 2000.

Legislative Research Commission Note.

(7/14/2000). This section was created by 2000 Ky. Acts chs. 265 and 287, which are identical and have been codified together.

151.710. Membership of Kentucky River Authority — Compensation — Meetings — Administrative regulations.

  1. The Governor shall appoint members to the Kentucky River Authority, created to carry out the essential public purpose of protecting the health and welfare of the people of the Commonwealth as declared in KRS 151.700 .
  2. The Governor shall appoint the secretaries of the Finance and Administration Cabinet and the Energy and Environment Cabinet and ten (10) other persons as the members of the authority. The secretaries may designate alternates. Of the ten (10) persons, one (1) shall be a registered engineer, one (1) an expert in water quality, one (1) a mayor, and one (1) a county judge/executive. The mayor and the county judge/executive shall be officers from counties which obtain the major portion of their water supply from the Kentucky River. Five (5) members shall reside in a county adjacent to the main stem of the Kentucky River, one (1) of the five (5) members residing in counties adjacent to locks and dams one (1) through four (4); and one (1) member shall reside in a county adjacent to either the North Fork, Middle Fork, or South Fork of the Kentucky River. Of the twelve (12) members, only one (1) may be an employee of the Energy and Environment Cabinet.
  3. Of the ten (10) members first appointed, two (2) shall continue in office for terms of one (1) year, two (2) for terms of two (2) years, three (3) for terms of three (3) years, and three (3) for terms of four (4) years, as the Governor designates. At the expiration of the original terms and for all succeeding terms, the Governor shall appoint a successor to the authority for a term of four (4) years in each case. Members may be reappointed. A vacancy in an unexpired term shall be filled for the unexpired portion of the term in the same manner as the original appointment to that term. Any member whose term has expired may continue to serve and vote until his or her successor is appointed and qualified.
  4. Each member shall receive as compensation one hundred dollars ($100) per day for attending a meeting of the authority.
  5. Any member who misses three (3) consecutive meetings of the authority shall be deemed to have vacated the office. The authority shall declare the office vacant and the office shall be filled as provided by subsections (2) and (3) of this section.
  6. The authority annually shall elect one (1) of its members as chairman. A quorum for the transaction of business shall be seven (7) members, and a majority of the members present at a meeting may take action on any matter legally before the authority.
  7. Members shall be paid their necessary travel expenses incurred in attending meetings and in the performance of their official duties, in addition to the per diem compensation of one hundred dollars ($100).
  8. The authority shall meet at least quarterly, and may meet upon the call of the chairman.
  9. The chairman shall be paid necessary travel expenses and a one hundred dollar ($100) per diem compensation for conducting official business of the authority.
  10. The authority shall be attached for administrative purposes to the Finance and Administration Cabinet, and the cabinet shall provide the necessary personnel to provide administrative services for the authority.
  11. The necessary travel expenses and per diem compensation of the members of the authority in attending meetings and in the performance of their official duties shall be paid by the authority.
  12. The authority shall promulgate administrative regulations necessary to carry out its duties, and shall report annually to the Governor and the Legislative Research Commission.

History. Enact. Acts 1986, ch. 383, § 2, effective July 15, 1986; 1990, ch. 500, § 1, effective July 13, 1990; 1996, ch. 229, § 1, effective July 15, 1996; 2000, ch. 265, § 3, effective July 14, 2000; 2000, ch. 287, § 3, effective July 14, 2000; 2009, ch. 12, § 42, effective June 25, 2009; 2010, ch. 24, § 180, effective July 15, 2010.

NOTES TO DECISIONS

1.Ownership of Locks and Dams.

Under current law (following 1990 amendment to this section by Acts 1990, ch. 500), ownership of the locks and dams of the Kentucky River is not a statutory prerequisite to the implementation of the Kentucky River Authority’s powers. Kentucky River Auth. v. City of Danville, 932 S.W.2d 374, 1996 Ky. App. LEXIS 112 (Ky. Ct. App. 1996), cert. denied, 520 U.S. 1186, 117 S. Ct. 1469, 137 L. Ed. 2d 682, 1997 U.S. LEXIS 2550 (U.S. 1997).

151.720. Powers of authority.

The Kentucky River Authority is authorized and empowered to:

  1. Construct, reconstruct, provide for the major maintenance, or repair the locks and dams on the Kentucky River and all real and personal property pertaining thereto, as well as maintain the channel;
  2. Acquire by purchase, exercise of the rights of eminent domain, grant, gift, devise, or otherwise, the fee simple title to or any acceptable lesser interest in any real or personal property and by lease or other conveyance, contract for the right to use and occupy any real or personal property selected in the discretion of the authority as constituting necessary, desirable, or acceptable sites to fulfill its statutory authority and power;
  3. Lease its real or personal property to other state agencies, political subdivisions of the Commonwealth, corporations, partnerships, associations, foundations, or persons as the authority deems necessary to carry out the purposes of this section;
  4. Sell or otherwise dispose of its real or personal property in accordance with KRS 56.463 and 45A.045 ;
  5. Collect water use fees from all facilities using water from the Kentucky River basin, except those facilities using water primarily for agricultural purposes. Facilities charged such a fee may pass on all or any part of the fee;
  6. Issue revenue bonds in accordance with KRS 151.730 ;
  7. Employ persons to carry out the authority’s responsibilities with revenue from the water use fees, including an executive director who shall serve at the pleasure of the authority;
  8. Contract for services with other state agencies, political subdivisions of the Commonwealth, corporations, partnerships, associations, foundations, or persons to perform its duties;
  9. Promulgate administrative regulations providing for clean water, which shall not be less stringent than the state and federal regulations for clean water;
  10. Exercise all other powers necessary to perform its public purpose to implement and enforce the plans developed by the authority pursuant to this section and KRS 151.727 and 151.728 , and to enforce administrative regulations promulgated by the authority. The long-range water resource plan and drought response plan shall be implemented for the basin upon the direction of the authority;
  11. Develop comprehensive plans for the management of the Kentucky River within the basin, including a long-range water resource plan and a drought response plan. Each county within the basin shall develop a long-range water resource plan and submit it to the authority. The authority, after consultation with the Energy and Environment Cabinet, shall develop a unified long-range water resource plan for the basin. The unified long-range water resource plan shall be implemented over short-range and long-range time periods. The short-range plan shall be for a period of six (6) years and the long-range plan shall be for a period of twenty (20) years. The authority shall conduct a public hearing on the plan prior to its adoption and amend the plan as appropriate based on the comments received. The Energy and Environment Cabinet shall review the draft unified plan and provide comment during the public comment period concerning the consistency of the plan with the state requirements under KRS Chapters 224 and 151. A drought response plan for the basin shall be developed by the authority and shall be coordinated with the Energy and Environment Cabinet to assure consistency with KRS Chapters 224 and 151, and this plan shall be implemented for the basin upon the direction of the authority;
  12. Develop and promote a plan for the protection and use of groundwater within the basin. Administrative regulations may be promulgated implementing the plan, and these regulations shall not be less stringent than state and federal regulations protecting groundwater;
  13. Promote private investment in the installation of hydroelectric generating units on all existing constructed and reconstructed Kentucky River dams under the jurisdiction of the authority, by developing a standard lease, establishing reasonable financial responsibility requirements, verifying that the proposed installation of the hydroelectric unit will not adversely affect the structural integrity of the dam, and adopting a schedule of reasonable fees for water used in the generation of hydroelectric power;
  14. Develop recreational areas within the basin. These recreational areas may be operated and funded by the state Department of Parks, Office of Kentucky Nature Preserves, or other governmental entity as specifically authorized or permitted within the biennial executive budget. There is hereby created the Kentucky River Park to be located as determined by the authority;
  15. Utilize funds provided for recreational purposes within the biennial executive budget for major or minor maintenance if the authority certifies to the secretary of the Finance and Administration Cabinet that a significant need exists for the repairs and no other funds are available for the maintenance;
  16. Coordinate the Kentucky River basin water resources activities among state agencies;
  17. Report quarterly on all of its activities to the legislative Committee on Appropriations and Revenue;
  18. Receive reports from state agencies on litigation concerning the Kentucky River, which agencies are hereby directed to report to the authority;
  19. Credit to the authority any income derived from the interest earned on the investment of the water use fees collected, which shall be available for the authority’s expenditure; and
  20. Accomplish the watershed management mission of the authority, which is to fulfill the provisions of this section for the Kentucky River basin, the boundary of which shall be defined by a hydrologic map promulgated in an administrative regulation.

HISTORY: Enact. Acts 1986, ch. 383, § 3, effective July 15, 1986; 1990, ch. 496, § 44, effective July 13, 1990; 1990, ch. 500, § 2, effective July 13, 1990; 1992, ch. 453, § 1, effective July 14, 1992; 1996, ch. 229, § 2, effective July 15, 1996; 2000, ch. 265, § 4, effective July 14, 2000; 2000, ch. 287, § 4, effective July 14, 2000; 2008, ch. 139, § 15, effective July 15, 2008; repealed and reenact., Acts 2010, ch. 5, § 15, effective February 25, 2010; 2010, ch. 24, § 181, effective July 15, 2010; 2018 ch. 29, § 50, effective July 14, 2018.

Legislative Research Commission Note.

(2/25/2010). 2010 Ky. Acts ch. 5, sec. 28, provides that the repeal and reenactment of this section in that Act “shall apply retroactively to July 15, 2008.”

(7/15/96). In 1990, KRS 45.360 was repealed, and its provisions on the disposal of state-owned or personal property were incorporated into KRS 45A.045 by amendment of that statute. See 1990 Ky. Acts ch. 496, secs. 67 and 1. Accordingly, pursuant to KRS 7.136(1)(e), the prior reference to the repealed statute in subsection (4) of this section has been replaced with the citation for the current statute.

NOTES TO DECISIONS

1.Locks and Dams.
2.— Ownership.

Because the preservation of the Kentucky River basin is a benefit which obviously accrues to all within it boundaries, fees collected by the Kentucky River Authority from city were not a tax collected in violation of the state Constitution. Kentucky River Auth. v. City of Danville, 932 S.W.2d 374, 1996 Ky. App. LEXIS 112 (Ky. Ct. App. 1996), cert. denied, 520 U.S. 1186, 117 S. Ct. 1469, 137 L. Ed. 2d 682, 1997 U.S. LEXIS 2550 (U.S. 1997).

151.723. Water use fees.

  1. The rate of the water use fees collected by the authority shall be set for each year of the biennium based upon a total amount of funds necessary to carry out only those functions, projects, and expenses authorized by the General Assembly in the authority’s biennial budget.
  2. At the time the authority submits its budget to the Governor’s Office of Policy and Management, it shall certify to the General Assembly the total amount of water use reported for the preceding biennium by users subject to the water use fees. At least thirty (30) days prior to the effective date of the authority’s budget, the authority shall establish a rate for each water use fee based upon an amount of water use projected for each year of the biennium from the amount reported, calculated to generate the amount of funds necessary to carry out the functions, projects, and expenses which have been authorized by the General Assembly to be funded by the fees. The rate shall be an amount for each one thousand (1,000) gallons of water use and shall be effective for at least one (1) year.
  3. The authority shall define by administrative regulation those uses of the Kentucky River or the waters of the Kentucky River basin subject to a water use fee. Water use fees shall not apply to facilities using water for agricultural purposes. The authority shall collect the fees on a quarterly basis and pay the collected fees into the State Treasury to the credit of a restricted fund for use by the authority.

History. Enact. Acts 1996, ch. 229, § 4, effective July 15, 1996; 2000, ch. 265, § 8, effective July 14, 2000; 2000, ch. 287, § 8, effective July 14, 2000.

Legislative Research Commission Note.

(7/14/2000). This section was amended by 2000 Ky. Acts chs. 265 and 287, which are identical and have been codified together.

151.725. Authority’s duty to bring action for penalties or injunctive relief — Venue.

  1. The authority shall bring an action for the recovery of penalties provided for in KRS 151.990 , the payment of fees provided for in KRS 151.720 , or for a restraining order, or a temporary or permanent injunction for the prevention or correction of a condition constituting or threatening to constitute a violation of the administrative regulations promulgated by the authority, the long-range water resource plan, or a drought response plan developed by the authority.
  2. All actions for penalties and injunctive relief for violations of the administrative regulations promulgated by the authority, the long-range water resource plan, or a drought response plan developed by the authority shall be brought by the authority in the:
    1. Circuit Court having jurisdiction of the defendant;
    2. Circuit Court of the county in which the condition constituting or threatening to constitute a violation of the administrative regulations of the authority, the long-range water resource plan or a drought response plan developed by the authority is occurring; or
    3. In the Franklin Circuit Court.

History. Enact. Acts 1992, ch. 453, § 2, effective July 14, 1992; 1996, ch. 229, § 6, effective July 15, 1996.

NOTES TO DECISIONS

Cited:

Kentucky River Auth. v. City of Danville, 932 S.W.2d 374, 1996 Ky. App. LEXIS 112 (Ky. Ct. App. 1996).

151.727. Continuing study of water availability and needs of Kentucky River basin — Biennial estimate on costs of water supply needs of Kentucky River basin.

  1. The Kentucky River Authority shall undertake a continuing study of the water available within the Kentucky River and the water needs within the Kentucky River basin. The study shall focus on necessary capital construction to maintain or increase water availability within the Kentucky River, including bringing existing facilities up to acceptable standards or replacing existing facilities where required.
  2. The Kentucky River Authority shall on a biennial basis provide the General Assembly with an estimate of the cost of maintaining or increasing the water available within the Kentucky River in order to meet the water supply needs of the citizens within the Kentucky River basin.

History. Enact. Acts 2000, ch. 265, § 5, effective July 14, 2000; 2000, ch. 287, § 5, effective July 14, 2000.

Legislative Research Commission Note.

(7/14/2000). This section was created by 2000 Ky. Acts chs. 265 and 287, which are identical and have been codified together.

151.728. Preconstruction and construction reports — Long-range planning document — Execution of funded programs.

  1. Beginning with the 2000-2002 biennium and each biennium thereafter, the authority shall submit to the General Assembly a six (6) year program of preconstruction and construction activities to maintain or increase water available within the Kentucky River. The program shall include a two (2) year construction component that shall be implemented as authorized by the General Assembly in the authority’s biennial budget and a four (4) year preconstruction component that shall advise the General Assembly of the consistency of ongoing and long-term planning with the construction activities funded by the General Assembly.
  2. The program shall be developed by considering, at a minimum, the following factors:
    1. The population to be served by the available water;
    2. The social, economic, and environmental impact of program elements;
    3. The condition of existing facilities critical to water availability;
    4. The cost of maintaining, improving, replacing, or removing facilities; and
    5. The dependence of communities within the river basin on specific Kentucky River dam pools or other sources of water.
  3. The program shall include a four (4) year planning document setting out preconstruction activities that include planning and design and an environmental analysis of projects to maintain or increase water available within the Kentucky River and geotechnical and stability evaluations of the Kentucky River locks and dams.
  4. The authority shall provide to the General Assembly a long-range planning document consisting of twenty (20) years for water supply projects being considered by the authority.
  5. The authority shall be responsible for the execution of each six (6) year program as approved and authorized in the budget by the General Assembly and shall report any anticipated deviations from the authorized construction funding or preconstruction program to the Interim Joint Committee on Appropriations and Revenue.

History. Enact. Acts 2000, ch. 265, § 6, effective July 14, 2000; 2000, ch. 287, § 6 effective July 14, 2000.

Legislative Research Commission Note.

(7/14/2000). This section was created by 2000 Ky. Acts chs. 265 and 287, which are identical and have been codified together.

151.7282. Presession reports to legislative committees.

By July 1 of each year preceding the convening of the General Assembly in even-numbered-year regular session, the authority shall provide the projected six (6) year construction and preconstruction program to the Interim Joint Committee on Natural Resources and Environment, the Capital Planning Advisory Board, and the Interim Joint Committee on Appropriations and Revenue.

History. Enact. Acts 2000, ch. 265, § 7, effective July 14, 2000; 2000, ch. 287, § 7, effective July 14, 2000; 2001, ch. 58, § 15, effective June 21, 2001; 2010, ch. 135, § 2, effective July 15, 2010.

151.729. Authority’s involvement in requested transfer of drinking water between water utilities involving Kentucky River basin watershed.

At the time a water utility requests a state agency to take action required to allow the transfer between water utilities of drinking water within or into the watershed of the Kentucky River basin, the water utility shall notify the authority of the request that has been made for state agency action. The authority shall review the request and comment on the requested transfer to the state agency within the time period for the review by the state agency.

History. Enact. Acts 2000, ch. 265, § 9, effective July 14, 2000; 2000, ch. 287, § 9, effective July 14, 2000.

Legislative Research Commission Note.

(7/14/2000). This section was created by 2000 Ky. Acts chs. 265 and 287, which are identical and have been codified together.

151.730. Revenue bonds.

  1. The authority is hereby authorized to provide, at one (1) time or from time to time, for the issuance of its revenue bonds for the purpose of paying all or any part of the cost of any one (1) or more projects undertaken pursuant to KRS 151.720 . The principal of and the interest on such bonds shall in each instance be payable solely from a special fund provided for the payment, with revenues derived from water use fees collected from all facilities using water from the Kentucky River basin, except those facilities using water primarily for agricultural purposes, pledged to be set aside and deposited in such special fund. The bonds of any issue may be in one (1) or more series and any one (1) or more such series may enjoy equal or subordinate status with respect to the pledge of funds from which they are payable, shall be dated, shall bear interest, shall mature at such time or times not exceeding the thirtieth anniversary of their respective dates, all as may be provided by the authority, and may be made redeemable before maturity, at the option of the authority, at such price or prices and under such terms and conditions as may be fixed by the authority prior to the issuance of the bonds. The authority shall determine the form of bonds including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places for payment of principal and interest, which may be at any bank or trust company within or without the Commonwealth. The bonds shall be signed by the facsimile signature of the chairman of the authority, and the seal of the authority or a facsimile thereof shall be affixed thereto and attested by the manual signature of the treasurer of the authority, and any coupons attached thereto shall bear the facsimile signature of the chairman of the authority. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. All bonds issued under the provisions of this section shall have and are hereby declared to have all qualities and incidents of negotiable instruments under the uniform commercial code of the Commonwealth. The bonds may be issued in coupon or in registered form, or both, as the authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest. The authority may sell such bonds at public sale, and for such price as it may determine will best effect the purposes of KRS 151.720 .
  2. The proceeds of the bonds of each issue shall be used solely for the payment of the cost of the project or projects for which such bonds shall have been issued, and shall be disbursed in such a manner and under such restrictions, if any, as the authority may provide in the proceedings authorizing the issuance of such bonds or in the trust indenture securing the same. If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than such cost, additional bonds may in like manner be issued to provide the amount of such deficit, and, unless otherwise provided in the proceedings authorizing the issuance of such bonds or in the trust indenture securing the same, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued. If the proceeds of the bonds of any issue shall exceed such cost, the surplus shall be deposited to the credit of the sinking fund or funds for such bonds or any account or accounts therein as the authority shall have provided in the proceedings or trust indenture authorizing and securing such bonds.
  3. Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost.
  4. The authority may issue revenue bond anticipation notes.
  5. Any holder of bonds issued under the provisions of this section or any of the coupons appertaining thereto, and the trustee under any trust indenture, except to the extent of the rights given in this section, may be restricted by such trust indenture or proceedings, may, either at law or in equity, by suit, action, mandamus, or other proceedings, protect and enforce any and all rights under the laws of the Commonwealth or granted under this section or under such trust indenture or the proceedings authorizing the issuance of such bonds, and may enforce and compel the performance of all duties required by this section or by such trust indenture or proceedings to be performed by the authority or by any officer or employee thereof.
  6. Revenue bonds issued under the provisions of this section shall not be a debt, liability, or obligation of the Commonwealth or any political subdivision thereof and shall not be a pledge of the faith and credit of the Commonwealth or any political subdivision thereof.
  7. Revenue bonds issued by the authority shall be subject to the jurisdiction and approval of the State Property and Buildings Commission and the Capital Projects and Bond Oversight Committee and shall be subject to review by the Office of Financial Management established in KRS 42.0201 .
  8. The authority shall not be required to pay any taxes and assessments to the Commonwealth or any county, municipality, or other governmental subdivision of the Commonwealth upon any of its property or upon its obligations or other evidences of indebtedness pursuant to the provisions of this section, or upon any moneys, funds, revenues, or other income held or received by the authority and the bonds or notes of the authority and the income therefrom shall at all times be exempt from taxation, except for death and gift taxes and taxes of transfers.
  9. Contractual expenses to construct, reconstruct, provide for the major maintenance, or repair the Kentucky River locks and dams, or to maintain the channel, or to acquire real or personal property pertaining thereto, or to construct, reconstruct, maintain, or repair such property, shall be paid from the proceeds of the revenue bonds. Expenses for administrative services and necessary travel expenses and per diem compensation of authority members, shall not be paid from the proceeds of the revenue bonds. Nor shall the cabinet’s cost of operating the locks be paid from the proceeds of the revenue bonds.

History. Enact. Acts 1986, ch. 383, § 4, effective July 15, 1986; 1996, ch. 229, § 3, effective July 15, 1996; 2000, ch. 46, § 24, effective July 14, 2000; 2005, ch. 85, § 567, effective June 20, 2005.

State Geographer

151.810. State geographer — Appointment — Duties.

  1. There is created the Office of State Geographer. The state geographer shall be appointed by the Governor and shall serve for a term of one (1) year. No one (1) person shall be appointed state geographer for two (2) terms in succession nor shall the state geographer be from the same institution of higher education as the person immediately preceding him as state geographer. The state geographer shall serve without compensation.
  2. The state geographer shall be a person who holds a graduate degree in geography from an accredited college or university and who has demonstrated a professional knowledge of Kentucky geography through his teaching or research activities.
  3. To the extent funds permit, the state geographer shall:
    1. Utilize the facilities of geography departments of major universities in the state;
    2. Advise state officials and agencies on geographic matters;
    3. Serve as a resource for teachers of geography and for publishers of geography textbooks and atlases;
    4. Assist state and local officials with boundary studies;
    5. Advise state and local agencies on mapping and cartographic programs;
    6. Assist state and local officials with planning, zoning and land-use studies;
    7. Cooperate with other states in exchanging geographic information; and
    8. Compile, analyze and disseminate geographic information necessary to perform the foregoing duties.

History. Enact. Acts 1984, ch. 139, § 1, effective July 13, 1984.

Penalties

151.990. Penalties.

  1. Any person, city, county, or other governmental subdivision who violates KRS 151.100 to 151.460 shall be liable to a civil penalty of not more than $1,000 for said violation and in addition may be enjoined from continuing said violation. Each day upon which such violation occurs or continues shall constitute a separate offense.
  2. Any person who violates any determination, permit, administrative regulation, order, long-range water resource plan, or drought response plan of the Kentucky River Authority shall be liable for a civil penalty not to exceed the sum of one hundred dollars ($100) for each day during which the violation continues, and, in addition, may be concurrently enjoined from any violations as provided in KRS 151.725 .

History. Enact. Acts 1966, ch. 23, § 38; 1992, ch. 453, § 4, effective July 14, 1992.

Research References and Practice Aids

Kentucky Law Journal.

Ausness, Water Use Permits in a Riparian State: Problems, 66 Ky. L.J. 191 (1977-1978).

Treatises

Caldwell’s Kentucky Form Book, 5th Ed., Practice Context for Water Resources, § 353.00.

CHAPTER 151B Workforce Education

151B.005. Legislative recognition of need to improve adults’ knowledge, skills, and literacy.

The General Assembly recognizes that many adults need significant improvement in their knowledge and skills to be full participants in Kentucky’s workforce and society, to develop and maintain healthy families, and to continue their education and training as necessary throughout their lifetimes. The General Assembly also recognizes that:

  1. Adult illiteracy is a fundamental barrier to every major challenge facing Kentucky, including early childhood education, education reform, economic development, and improving the health and well-being of Kentucky’s families and communities;
  2. Kentucky must be committed to addressing the low level of education of the adult population from all dimensions of state and local government, all education institutions, business and civic leaders, voluntary organizations, and all others that interact with the problem of adult illiteracy; and
  3. Kentucky must have a multi-faceted strategy to address the diverse needs of the undereducated adult population in all counties and regions of the state.

History. Enact. Acts 2000, ch. 526, § 1, effective July 14, 2000.

151B.010. Definitions for chapter. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 4, effective July 1, 1990; 1992, ch. 417, § 2, effective July 14, 1992; 1994, ch. 363, § 1, effective July 15, 1994; 1994, ch. 469, § 5, effective July 15, 1994; 2000, ch. 526, § 17, effective August 15, 2000; 2003, ch. 29, § 5, effective June 24, 2003; 2006, ch. 211, § 20, effective July 12, 2006) was repealed, reenacted and amended as KRS 156.800 by Acts 2013, ch. 59, § 1, effective June 25, 2013.

151B.020. Education and Workforce Development Cabinet — Major organizational units — Secretary. [Effective until June 29, 2021]

  1. The Education and Workforce Development Cabinet is hereby created, which shall constitute a cabinet of the state government within the meaning of KRS Chapter 12. The cabinet shall consist of a secretary and those administrative bodies and employees as provided by law.
  2. The cabinet, subject to the provisions of KRS Chapter 12, shall be composed of the major organizational units listed below, units listed in KRS 12.020 , and other departments, divisions, and sections as are from time to time deemed necessary for the proper and efficient operation of the cabinet:
    1. The Department of Workforce Investment, which is hereby created and established within the Education and Workforce Development Cabinet. The department shall be directed and managed by a commissioner who shall be appointed by the Governor under the provisions of KRS 12.040 , and who shall report to the secretary of the Education and Workforce Development Cabinet. The department shall be composed of the following offices:
      1. The Office of Vocational Rehabilitation, which is created by KRS 151B.185 ;
      2. The Office of Unemployment Insurance;
      3. The Office of Employer and Apprenticeship Services;
      4. The Office of Career Development;
      5. The Office of Adult Education, which is created by KRS 151B.406
      6. The Unemployment Insurance Commission established by KRS 341.110 ; and
      7. The Kentucky Apprenticeship Council, which shall be attached to the department for administrative purposes only; and
    2. The Early Childhood Advisory Council which is attached to the Office of the Secretary for administrative purposes only.
  3. The executive officer of the cabinet shall be the secretary of the Education and Workforce Development Cabinet. The secretary shall be appointed by the Governor pursuant to KRS 12.255 and shall serve at the pleasure of the Governor. The secretary shall have general supervision and direction over all activities and functions of the cabinet and its employees and shall be responsible for carrying out the programs and policies of the cabinet. The secretary shall be the chief executive officer of the cabinet and shall have authority to enter into contracts, subject to the approval of the secretary of the Finance and Administration Cabinet, when the contracts are deemed necessary to implement and carry out the programs of the cabinet. The secretary shall have the authority to require coordination and nonduplication of services provided under the Federal Workforce Investment Act of 1998, 20 U.S.C. secs. 9201 et seq. The secretary shall have the authority to mandate fiscal responsibility dispute resolution procedures among state organizational units for services provided under the Federal Workforce Investment Act of 1998, 20 U.S.C. secs. 9201 et seq.
  4. The secretary of the Education and Workforce Development Cabinet and the secretary’s designated representatives, in the discharge of the duties of the secretary, may administer oaths and affirmations, take depositions, certify official acts, and issue subpoenas to compel the attendance of witnesses and production of books, papers, correspondence, memoranda, and other records considered necessary and relevant as evidence at hearings held in connection with the administration of the cabinet.
  5. The secretary of the Education and Workforce Development Cabinet may delegate any duties of the secretary’s office to employees of the cabinet as he or she deems necessary and appropriate, unless otherwise prohibited by statute.
  6. The secretary of the Education and Workforce Development Cabinet shall promulgate, administer, and enforce administrative regulations that are necessary to implement programs mandated by federal law, or to qualify for the receipt of federal funds, and that are necessary to cooperate with other state and federal agencies for the proper administration of the cabinet and its programs except for programs and federal funds within the authority of the Department of Education, the Kentucky Board of Education, and the Education Professional Standards Board.

History. Enact. Acts 1990, ch. 470, § 1, effective July 1, 1990; 1992, ch. 395, § 1, effective July 14, 1992; 1994, ch. 469, § 6, effective July 15, 1994; 1996, ch. 134, § 3, effective July 15, 1996; 1996, ch. 217, § 2, effective July 15, 1996; 1996, ch. 261, § 1, effective July 15, 1996; 1996, ch. 271, § 5, effective July 15, 1996; 1998, ch. 50, § 2, effective July 15, 1998; 2000, ch. 156, § 2, effective July 14, 2000; 2000, ch. 199, § 1, effective July 14, 2000; 2001, ch. 38, § 2, effective June 21, 2001; 2002, ch. 300, § 2, effective July 15, 2002; 2003, ch. 29, § 6, effective June 24, 2003; 2003, ch. 31, § 2, effective June 24, 2003; 2006, ch. 211, § 21, effective July 12, 2006; 2009, ch. 11, § 13, effective June 25, 2009; 2013, ch. 15, § 3, effective June 25, 2013; 2013, ch. 59, § 38, effective June 25, 2013; 2019 ch. 146, § 11, effective June 27, 2019; 2019 ch. 173, § 2, effective June 27, 2019.

Legislative Research Commission Notes.

(6/27/2019). This statute was amended by 2019 Ky. Acts chs. 146 and 173, which do not appear to be in conflict and have been codified together.

Research References and Practice Aids

Cross-References.

Local workforce development area governance, 787 KAR 2:040.

151B.020. Education and Workforce Development Cabinet — Major organizational units — Secretary. [Effective June 29, 2021]

  1. The Education and Workforce Development Cabinet is hereby created, which shall constitute a cabinet of the state government within the meaning of KRS Chapter 12. The cabinet shall consist of a secretary and those administrative bodies and employees as provided by law.
  2. The cabinet, subject to the provisions of KRS Chapter 12, shall be composed of the major organizational units listed below, units listed in KRS 12.020 , and other departments, divisions, and sections as are from time to time deemed necessary for the proper and efficient operation of the cabinet:
    1. The Department of Workforce Investment, which is hereby created and established within the Education and Workforce Development Cabinet. The department shall be directed and managed by a commissioner who shall be appointed by the Governor under the provisions of KRS 12.040 , and who shall report to the secretary of the Education and Workforce Development Cabinet. The department shall be composed of the following offices:
      1. The Office of Vocational Rehabilitation, which is created by KRS 151B.185 ;
      2. The Office of Unemployment Insurance;
      3. The Office of Employer and Apprenticeship Services;
      4. The Career Development Office;
      5. The Office of Adult Education, which is created by KRS 151B.406 ;
      6. The Unemployment Insurance Commission established by KRS 341.110 ;
      7. The Kentucky Apprenticeship Council, which shall be attached to the department for administrative purposes only; and
      8. The Division of Technical Assistance; and
    2. The Early Childhood Advisory Council, which is attached to the Office of the Secretary for administrative purposes only.
  3. The executive officer of the cabinet shall be the secretary of the Education and Workforce Development Cabinet. The secretary shall be appointed by the Governor pursuant to KRS 12.255 and shall serve at the pleasure of the Governor. The secretary shall have general supervision and direction over all activities and functions of the cabinet and its employees and shall be responsible for carrying out the programs and policies of the cabinet. The secretary shall be the chief executive officer of the cabinet and shall have authority to enter into contracts, subject to the approval of the secretary of the Finance and Administration Cabinet, when the contracts are deemed necessary to implement and carry out the programs of the cabinet. The secretary shall have the authority to require coordination and nonduplication of services provided under the Federal Workforce Investment Act of 1998, 20 U.S.C. secs. 9201 et seq. The secretary shall have the authority to mandate fiscal responsibility dispute resolution procedures among state organizational units for services provided under the Federal Workforce Investment Act of 1998, 20 U.S.C. secs. 9201 et seq.
  4. The secretary of the Education and Workforce Development Cabinet and the secretary’s designated representatives, in the discharge of the duties of the secretary, may administer oaths and affirmations, take depositions, certify official acts, and issue subpoenas to compel the attendance of witnesses and production of books, papers, correspondence, memoranda, and other records considered necessary and relevant as evidence at hearings held in connection with the administration of the cabinet.
  5. The secretary of the Education and Workforce Development Cabinet may delegate any duties of the secretary’s office to employees of the cabinet as he or she deems necessary and appropriate, unless otherwise prohibited by statute.
  6. The secretary of the Education and Workforce Development Cabinet shall promulgate, administer, and enforce administrative regulations that are necessary to implement programs mandated by federal law, or to qualify for the receipt of federal funds, and that are necessary to cooperate with other state and federal agencies for the proper administration of the cabinet and its programs except for programs and federal funds within the authority of the Department of Education, the Kentucky Board of Education, and the Education Professional Standards Board.

HISTORY: Enact. Acts 1990, ch. 470, § 1, effective July 1, 1990; 1992, ch. 395, § 1, effective July 14, 1992; 1994, ch. 469, § 6, effective July 15, 1994; 1996, ch. 134, § 3, effective July 15, 1996; 1996, ch. 217, § 2, effective July 15, 1996; 1996, ch. 261, § 1, effective July 15, 1996; 1996, ch. 271, § 5, effective July 15, 1996; 1998, ch. 50, § 2, effective July 15, 1998; 2000, ch. 156, § 2, effective July 14, 2000; 2000, ch. 199, § 1, effective July 14, 2000; 2001, ch. 38, § 2, effective June 21, 2001; 2002, ch. 300, § 2, effective July 15, 2002; 2003, ch. 29, § 6, effective June 24, 2003; 2003, ch. 31, § 2, effective June 24, 2003; 2006, ch. 211, § 21, effective July 12, 2006; 2009, ch. 11, § 13, effective June 25, 2009; 2013, ch. 15, § 3, effective June 25, 2013; 2013, ch. 59, § 38, effective June 25, 2013; 2019 ch. 146, § 11, effective June 27, 2019; 2019 ch. 173, § 2, effective June 27, 2019; 2021 ch. 99, § 2, effective June 29, 2021.

151B.022. National and state criminal background check required for all cabinet and affiliated employees with access to or use of federal tax information.

  1. The Education and Workforce  Development Cabinet shall require a national and state criminal background  check for every employee of the cabinet or its agencies, including  contract staff, with access to or use of federal tax information.  The criminal background investigation shall be by means of a fingerprint  check by the Department of Kentucky State Police and Federal Bureau  of Investigation, pursuant to the following requirements:
    1. The cabinet shall require  each employee with access to or use of federal tax information to  submit a complete and legible set of fingerprints to the Department  of Kentucky State Police on a fingerprint card issued by the Federal  Bureau of Investigation;
    2. The Department of Kentucky State Police  shall submit the fingerprint card to the Federal Bureau of Investigation  for a national criminal background check after a state criminal background  check is conducted;
    3. The results of a national and state  criminal background check shall not be distributed or otherwise released  by the cabinet, except that:
      1. The cabinet shall provide an employee  the results of his or her national and state criminal background check  upon request; and
      2. The cabinet may introduce the results,  under seal, as evidence in a legal proceeding which involves a challenge  to any personnel action taken by the cabinet which is based in whole  or in part on information contained in the results; and
    4. Any fee charged by the Department of  Kentucky State Police or the Federal Bureau of Investigation shall  be an amount no greater than the actual cost of processing the request  and conducting the background check.
  2. The cabinet or its agencies shall promulgate  administrative regulations in accordance with this section and KRS Chapter  13A to implement this section.

HISTORY: 2018 ch. 200, § 1, effective April 26, 2018.

151B.023. Department for Adult Education and Literacy. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts1994 Ky. Acts ch. 469, § 1, effective July 15, 1994; 1998, ch. 63, § 1, effective July 15, 1998; 2000, ch. 526, § 8, effective July 14, 2000) was repealed by Acts 2006, ch. 211, § 170, effective July 12, 2006.

151B.0235. State Advisory Council for Adult Education and Literacy. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 469, § 2, effective July 15, 1994; 1998, ch. 426, § 106, effective July 15, 1998) was repealed by Acts 2000, ch. 526, § 30, effective July 14, 2000.

151B.025. Office of Career and Technical Education — Kentucky Workforce Investment Board. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 2, effective July 1, 1990; 1994, ch. 469, § 7, effective July 15, 1994; 1996, ch. 362, § 6, effective July 15, 1996; 1997 (1st Ex. Sess.), ch. 1, § 44, effective May 30, 1997; 2003, ch. 29, § 7, effective June 24, 2003; 2006, ch. 151, § 1, effective July 12, 2006; 2006, ch. 211, § 22, effective July 12, 2006; 2009, ch. 11, § 14, effective June 25, 2009) was repealed, reenacted and amended as KRS 156.802 by Acts 2013, ch. 59, § 3, effective June 25, 2013.

151B.030. Organizational structure of Office of Career and Technical Education — Ombudsman. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 3, effective July 1, 1990; 1994, ch. 469, § 8, effective July 15, 1994; 1997 (1st Ex. Sess.), ch. 1, § 45, effective May 30, 1997; 2000, ch. 33, § 1, effective July 14, 2000; 2003, ch. 29, § 8, effective June 24, 2003; 2006, ch. 211, § 23, effective July 12, 2006; 2009, ch. 11, § 15, effective June 25, 2009) was repealed, reenacted and amended as KRS 156.804 by Acts 2013, ch. 59, § 6, effective June 25, 2013.

151B.035. Personnel of Office of Career and Technical Education — Administrative regulations — Appeals to Kentucky Technical Education Personnel Board. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 5, effective July 1, 1990; 1992, ch. 417, § 3, effective July 14, 1992; 1994, ch. 363, § 2, effective July 15, 1994; 1994, ch. 469, § 9, effective July 15, 1994; 1996, ch. 318, § 41, effective July 15, 1996; 1997 (1st Ex. Sess.), ch. 1, § 46, effective May 30, 1997; 1998, ch. 154, § 78, effective July 15, 1998; 2000, ch. 526, § 18, effective August 15, 2000; 2003, ch. 29, § 9, effective June 24, 2003; 2006, ch. 211, § 24, effective July 12, 2006) was repealed, reenacted and amended as KRS 156.808 by Acts 2013, ch. 59, § 7, effective June 25, 2013.

151B.037. Posting of full-time vacancies. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 475, § 6, effective July 15, 1994) was repealed, reenacted and amended as KRS 156.810 by Acts 2013, ch. 59, § 8, effective June 25, 2013.

151B.040. Employee benefits. [Repealed and reenacted.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 6, effective July 1, 1990; 1994, ch. 405, § 17, effective July 15, 1994; 1994, ch. 469, § 10, effective July 15, 1994; 2000, ch. 526, § 19, effective August 15, 2000; 2006, ch. 211, § 25, effective July 12, 2006) was repealed and reenacted as KRS 156.812 by Acts 2013, ch. 59, § 9, effective June 25, 2013.

151B.045. Personnel files. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 7, effective July 1, 1990; 1994, ch. 469, § 11, effective July 15, 1994; 2000, ch. 526, § 20, effective August 15, 2000; 2006, ch. 211, § 26, effective July 12, 2006; 2009, ch. 11, § 16, effective June 25, 2009) was repealed, reenacted and amended as KRS 156.814 by Acts 2013, ch. 59, § 10, effective June 25, 2013.

151B.050. Grounds for refusal to consider or to disqualify an applicant for, or to remove a person from, a certified or equivalent position. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 8, effective July 1, 1990; 1992, ch. 417, § 4, effective July 14, 1992; 1994, ch. 363, § 3, effective July 15, 1994; 1994, ch. 469, § 12, effective July 15, 1994; 2006, ch. 211, § 27, effective July 12, 2006) was repealed and reenacted as KRS 156.816 by Acts 2013, ch. 59, § 11, effective June 25, 2013.

151B.052. Criminal conviction as grounds for disciplinary action. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 417, § 5, effective July 14, 1992) was repealed, reenacted and amended as KRS 156.818 by Acts 2013, ch. 59, § 12, effective June 25, 2013.

151B.055. Employees with continuing status. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 9, effective July 1, 1990; 1992, ch. 417, § 6, effective July 14, 1992; 1994, ch. 363, § 4, effective July 15, 1994; 1994, ch. 405, § 18, effective July 15, 1994; 1994, ch. 469, § 13, effective July 15, 1994; 1996, ch. 318, § 42, effective July 15, 1996; 2000, ch. 526, § 21, effective August 15, 2000; 2003, ch. 29, § 10, effective June 24, 2003; 2006, ch. 211, § 28, effective July 12, 2006) was repealed, reenacted and amended as KRS 156.820 , effective June 25, 2013.

151B.060. Appeal from final order of board. [Repealed and reenacted.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 10, effective July 1, 1990; 1996, ch. 318, § 43, effective July 15, 1996) was repealed and reenacted as KRS 156.822 by Acts 2013, ch. 59, § 14, effective June 25, 2013.

151B.065. Payment of reinstated employee. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 11, effective July 1, 1990; 1994, ch. 469, § 14, effective July 15, 1994; 2000, ch. 526, § 22, effective August 15, 2000; 2003, ch. 29, § 11, effective June 24, 2003; 2006, ch. 211, § 29, effective July 12, 2006) was repealed, reenacted and amended as KRS 156.824 by Acts 2013, ch. 59, § 15, effective June 25, 2013.

151B.070. Employment status. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 12, effective July 1, 1990; 1992, ch. 417, § 7, effective July 14, 1992; 2000, ch. 526, § 23, effective July 14, 2000) ) was repealed, reenacted and amended as KRS 156.826 by Acts 2013, ch. 59, § 16, effective June 25, 2013.

151B.075. Employee evaluations. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 13, effective July 1, 1990; 1992, ch. 417, § 8, effective July 14, 1992; 1994, ch. 469, § 15, effective July 15, 1994; 1997 (1st Ex. Sess.), ch. 1, § 47, effective May 30, 1997; 2003, ch. 29, § 12, effective June 24, 2003; 2006, ch. 211, § 30, effective July 12, 2006) was repealed, reenacted and amended as KRS 156.828 by Acts 2013, ch. 59, § 17, effective June 25, 2013.

151B.080. Coercion of employees prohibited — Lay-off priorities. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 15, effective July 1, 1990; 1994, ch. 469, § 17, effective July 15, 1994; 2000, ch. 526, § 25, effective August 15, 2000; 2006, ch. 211, § 32, effective July 12, 2006) was repealed, reenacted and amended as KRS 156.830 by Acts 2013, ch. 59, § 19, effective June 25, 2013.

151B.085. Procedures for lay-offs. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 15, effective July 1, 1990; 1994, ch. 469, § 17, effective July 15, 1994; 2000, ch. 526, § 25, effective August 15, 2000; 2006, ch. 211, § 32, effective July 12, 2006) was repealed, reenacted and amended as KRS 156.832 by Acts 2013, ch. 59, § 19, effective June 25, 2013.

151B.086. Appeal to board of lay-off by continuing status employee. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 475, § 4, effective July 15, 1994) was repealed, reenacted and amended as KRS 156.834 by Acts 2013, ch. 59, § 20, effective June 25, 2013.

151B.087. Appeal of board’s final order relating to lay-off of continuing status employee. [Repealed and reenacted.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 475, § 5, effective July 15, 1994; 1996, ch. 318, § 44, effective July 15, 1996) was repealed and reenacted as KRS 156.836 by Acts 2013, ch. 59, § 21, effective June 25, 2013.

151B.090. Prohibited activities. [Repealed and reenacted.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 16, effective July 1, 1990; 1994, ch. 405, § 19, effective July 15, 1994; 1994, ch. 469, § 18, effective July 15, 1994) was repealed and reenacted as KRS 156.838 by Acts 2013, ch. 59, § 22, effective June 25, 2013.

151B.095. State Board for Adult and Technical Education. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 17, effective July 1, 1990; 1994, ch. 469, § 19, effective July 15, 1994; 1997 (1st Ex. Sess.), ch. 1, § 48, effective May 30, 1997; 1998, ch. 194, § 1, effective July 15, 1998) was repealed by Acts 2003, ch. 29, § 22, effective March 10, 2003. For present law, see KRS 151B.097 .

151B.097. Kentucky Technical Education Personnel Board. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 2003, ch. 29, § 1, effective June 24, 2003; 2006, ch. 211, § 33, effective July 12, 2006; 2009, ch. 11, § 17, effective June 25, 2009) was repealed, reenacted and amended as KRS 156.840 by Acts 2013, ch. 59, § 23, effective June 25, 2013.

151B.100. Powers of board. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 18, effective July 1, 1990; 1994, ch. 469, § 20, effective July 15, 1994) was repealed by Acts 2003, ch. 29, § 22, effective March 10, 2003. For present law, see KRS 151B.097 .

151B.105. Meetings of board. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 19, effective July 1, 1990; 1994, ch. 469, § 21, effective July 15, 1994) was repealed by Acts 2003, ch. 29, § 22, effective March 10, 2003. For present law, see KRS 151B.097 .

151B.110. Board to manage state-operated secondary area vocational education and technology centers. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 20, effective July 1, 1990; 1997 (1st Ex. Sess.), ch. 1, § 49, effective May 30, 1997) was repealed by Acts 2003, ch. 29, § 22, effective March 10, 2003. For present law, see KRS 151B.097 .

151B.112. Office of Career and Technical Education to manage state-operated secondary area vocational education and technology centers. [Repealed and reenacted.]

Compiler’s Notes.

This section (Enact. Acts 2003, ch. 29, § 2, effective June 24, 2003; 2006, ch. 211, § 34, effective July 12, 2006) was repealed and reenacted as KRS 156.842 by Acts 2013, ch. 59, § 21, effective June 25, 2013.

151B.115. State universities to operate vocational and nonvocational programs offered by them. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 21, effective July 1, 1990) was renumbered as KRS 164.296 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

151B.120. Agreements for training workers. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Repealed, reenact. and amend. Acts 1990, ch. 470, § 22, effective July 1, 1990; 1994, ch. 469, § 22, effective July 15, 1994; 2000, ch. 526, § 6, effective July 14, 2000; 2006, ch. 211, § 35, effective July 12, 2006; 2009, ch. 11, § 18, effective June 25, 2009) was repealed, reenacted and amended as KRS 156.848 by Acts 2013, ch. 59, § 25, effective June 25, 2013.

151B.125. Equivalents to standard high school diploma — Diploma through examination — External diploma program. [Repealed and reenacted.]

Compiler’s Notes.

This section (Repealed, reenact. and amend. Acts 1990, ch. 470, § 23, effective July 1, 1990; 1994, ch. 363, § 6, effective July 15, 1994; 1994, ch. 469, § 23, effective July 15, 1994; 1996, ch. 145, § 1, effective July 15, 1996; 1998, ch. 63, § 2, effective July 15, 1998; 2003, ch. 29, § 13, effective June 24, 2003; 2006, ch. 211, § 36, effective July 12, 2006) was renumbered as KRS 164.0064 by Acts 2013, ch. 59, § 32, effective June 25, 2013.

151B.127. Legislative findings relating to need for high school equivalency diplomas — Incentives — Administrative regulations — Learning contracts — Tuition discounts — Tax credit for employers. [Repealed and reenacted.]

Compiler’s Notes.

This section (Enact. Acts 2000, ch. 526, § 12, effective July 14, 2000; 2006, ch. 211, § 37, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 38, effective June 28, 2006) was repealed and reenacted as KRS 164.0062 by Acts 2013, ch. 59, § 33, effective June 25, 2013.

151B.130. Foundation for Adult Education. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1986, ch. 209, § 1, effective July 15, 1986) was formerly compiled as KRS 156.486 and was repealed, reenacted and amended as this section by Acts 1990, ch. 170, § 24, effective July 1, 1990.

This section (Repealed, reenact. and amend. Acts 1990, ch. 470, § 24, effective July 1, 1990; 1996, ch. 217, § 3, effective July 15, 1996; 2003, ch. 29, § 14, effective June 24, 2003; 2006, ch. 211, § 38, effective July 12, 2006; 2009, ch. 11, § 19, effective June 25, 2009; 2013, ch. 15, § 4, effective June 25, 2013) was repealed, reenacted and amended as KRS 164.0232 by Acts 2013, ch. 59, § 34, effective June 25, 2013.

151B.131. Definitions for KRS 151B.131 to 151B.134.

As used in KRS 151B.131 to 151B.134 , unless the context requires otherwise:

  1. “Board” means the Board of the Kentucky Center for Statistics established in KRS 151B.134(1);
  2. “De-identification” means a process for removing identity information so the data can be analyzed without disclosing the identity of the individuals or employers whose data are being utilized;
  3. “Education data” means the following data relating to student performance from early childhood learning programs through postsecondary education:
    1. College and career readiness;
    2. Course and grade;
    3. Degree, diploma, or credential attainment;
    4. Demographic;
    5. Educator;
    6. Enrollment;
    7. Financial aid;
    8. High School Equivalency Diploma;
    9. Remediation;
    10. Retention;
    11. State and national assessments;
    12. Transcripts;
    13. Vocational and technical education information; and
    14. Any other data impacting education deemed necessary by the office;
  4. “Kentucky Longitudinal Data System” is a statewide data system that contains education, workforce, and additional data identified by the Board of the Kentucky Center for Statistics;
  5. “Office” means the Office of the Kentucky Center for Statistics established in KRS 151B.132(1); and
  6. “Workforce data” means data relating to:
    1. Certification and licensure;
    2. Employer information;
    3. Employment status;
    4. Geographic location of employment;
    5. Job service and training information to support enhanced employment opportunities;
    6. Wage information; and
    7. Any other data impacting the workforce deemed necessary by the office.

History. Enact. Acts 2013, ch. 18, § 1, effective June 25, 2013; 2013, ch. 90, § 1, effective June 25, 2013; 2017 ch. 63, § 11, effective June 29, 2017; 2019 ch. 154, § 1, effective June 27, 2019.

151B.132. Office of the Kentucky Center for Statistics — Purpose — Kentucky Longitudinal Data System — Collection of education and workforce data — Certification and ownership of data — Funding.

  1. The Office of the Kentucky Center for Statistics is hereby established and attached to the Education and Workforce Development Cabinet, Office of the Secretary.
  2. The office’s purpose is to collect accurate data in the Kentucky Longitudinal Data System in order to link the data and generate timely reports about student performance through employment to be used to guide decision makers in improving the Commonwealth of Kentucky’s education system and training programs.
  3. The office shall be headed by an executive director appointed by the Governor pursuant to KRS 12.050 . The executive director shall be appointed from nominations made to the Governor by the board. The office may employ additional staff necessary to carry out the office’s duties consistent with available funding and state personnel laws.
  4. The public agencies providing data to the Kentucky Longitudinal Data System shall be:
    1. The Council on Postsecondary Education;
    2. The Department of Education;
    3. The Early Childhood Advisory Council;
    4. The Kentucky Higher Education Assistance Authority;
    5. The Kentucky Commission on Proprietary Education; and
    6. Other agencies of the Education and Workforce Development Cabinet.
  5. The Kentucky Longitudinal Data System, upon approval of the board, may include data from any additional public agency.
  6. Any private institution of higher education, private school, or parochial school, upon approval of the board, may provide data to the Kentucky Longitudinal Data System.
  7. Any data provided to the Kentucky Longitudinal Data System shall be certified to be accurate by the providing agency, institution, or school. Ownership of data provided shall be retained by the providing entity.
  8. The office may receive funding for its operation of the Kentucky Longitudinal Data System from the following sources:
    1. State appropriations;
    2. Federal grants;
    3. User fees; and
    4. Any other grants or contributions from public agencies or other entities.

History. Enact. Acts 2013, ch. 18, § 2, effective June 25, 2013; 2013, ch. 90, § 2, effective June 25, 2013; 2019 ch. 154, § 2, effective June 27, 2019.

Compiler’s Notes.

(6/25/2013). This statute was created with identical text in 2013 Ky. Acts chs. 18 and 90, which were companion bills. These Acts have been codified together.

151B.133. Duties of Office of the Kentucky Center for Statistics.

The duties of the Office of the Kentucky Center for Statistics shall be to:

  1. Oversee and maintain the warehouse of data in the Kentucky Longitudinal Data System;
  2. Develop de-identification standards and processes using modern statistical methods;
  3. Conduct research and evaluation regarding federal, state, and local education and training programs at all levels;
  4. Audit and ensure compliance of education and training programs with applicable federal and state requirements as authorized by federal and state law;
  5. Work with public agencies and other entities to define statewide education, workforce development, and employment metrics and ensure the integrity and quality of data being collected;
  6. Link data from multiple sources for consideration in developing broad public policy initiatives;
  7. Develop requirements and definitions for data to be provided by any public agency, private institution of higher education, private school, or parochial school, as directed by the Board of the Kentucky Center for Statistics;
  8. Develop a reasonable fee schedule for services provided;
  9. Establish data quality standards;
  10. Promulgate administrative regulations necessary for the proper administration of the Kentucky Longitudinal Data System;
  11. Ensure compliance with the federal Family Educational Rights and Privacy Act, 20 U.S.C. sec 1232g, and all other relevant federal and state privacy laws;
  12. Respond to approved research data requests in accordance with the data access and use policy established by the board;
  13. Develop and disseminate, in cooperation with the Council on Postsecondary Education and the Department of Education, information on the employment and earnings of the public postsecondary institution graduates in Kentucky. This information shall be updated at least every three (3) years and shall be:
    1. Posted on the Web site of the Office of the Kentucky Center for Statistics;
    2. Posted on the Web site of the Council on Postsecondary Education;
    3. Posted on the Web site of each public postsecondary institution, with the Web site address published in each institution’s catalogue; and
    4. Made available to every high school guidance and career counselor, who shall be notified of its availability for the purpose of informing all high school students preparing for postsecondary education; and
  14. Enter into contracts or other agreements with appropriate entities, including but not limited to federal, state, and local agencies, to the extent necessary to carry out its duties and responsibilities only if such contracts or agreements incorporate adequate protections with respect to the confidentiality of any information to be shared.

History. Enact. Acts 2013, ch. 18, § 3, effective June 25, 2013; 2013, ch. 90, § 3, effective June 25, 2013; 2014, ch. 26, § 1, effective July 15, 2014; 2019 ch. 154, § 3, effective June 27, 2019.

151B.134. Board of Kentucky Center for Statistics — Members — Duties and functions — Chair — Meetings.

  1. The Board of the Kentucky Center for Statistics is hereby established and attached to the Education and Workforce Development Cabinet, Office of the Secretary.
  2. The board shall be composed of:
    1. The commissioner of the Department of Education or designee;
    2. The secretary of the Cabinet for Health and Family Services or designee;
    3. The president of the Council on Postsecondary Education or designee;
    4. The secretary of the Education and Workforce Development Cabinet or designee; and
    5. The executive director of the Kentucky Higher Education Assistance Authority or designee.
  3. The duties and functions of the board shall be to:
    1. Develop a detailed data access and use policy for requests that shall include but not be limited to the following:
      1. Direct access to data in the Kentucky Longitudinal Data System shall be restricted to authorized staff of the office;
      2. Data or information that may result in any individual or employer being identifiable based on the size or uniqueness of the population under consideration may not be reported in any form by the office; and
      3. The office may not release data or information if disclosure is prohibited under relevant federal or state privacy laws;
    2. Establish the research agenda of the office;
    3. Make nominations to the Governor for the appointment of an executive director;
    4. Oversee compliance by the office with the federal Family Educational Rights and Privacy Act, 20 U.S.C. sec. 1232 g, and other relevant federal and state privacy laws;
    5. Ensure that reports generated by the Office of the Kentucky Center for Statistics are distributed to appropriate personnel within the agencies represented by the board members; and
    6. Provide general oversight of the office.
  4. The secretary of the Education and Workforce Development Cabinet shall serve as chair of the board.
  5. The board shall meet at least semiannually and at other times upon the call of the chair. The meetings shall be subject to the open meetings requirements of KRS 61.800 to 61.850 and 61.991 .
  6. The board may form committees, work groups, or advisory councils to accomplish its purposes.

History. Enact. Acts 2013, ch. 18, § 4, effective June 25, 2013; 2013, ch. 90, § 4, effective June 25, 2013; 2014, ch. 26, § 2, effective July 15, 2014; 2019 ch. 154, § 4, effective June 27, 2019.

151B.135. Governor’s Commission on Literacy. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1985 (1st Ex. Sess.), ch. 10, § 23, effective October 18, 1985; 1988, ch. 179, § 2, effective July 15, 1988 as KRS 158.790 ; repealed, reenact. and amend. as this section by Acts 1990, ch. 470, § 26, effective July 1, 1990) was repealed by Acts 1994, ch. 469, § 40, effective July 15, 1994.

151B.140. Statewide adult literacy program. [Repealed.]

Compiler’s Notes.

This section (Repealed, reenact. and amend. Acts 1990, ch. 470, § 27, effective July 1, 1990; 1994, ch. 469, § 24, effective July 15, 1994) was repealed by Acts 2000, ch. 526, § 30, effective July 14, 2000.

151B.142. Adult education and literacy initiative fund. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1997 (1st Ex. Sess.), ch. 1, § 150, effective May 30, 1997) was repealed, reenacted and amended as KRS 164.041 by Acts 2000, ch. 526, § 7, effective July 14, 2000.

151B.145. Federal acts relating to vocational education accepted. [Repealed and reenacted.]

Compiler’s Notes.

This section (Repealed, reenact. and amend. Acts 1990, ch. 470, § 28, effective July 1, 1990) was repealed and reenacted as KRS 156.850 by Acts 2013, ch. 59, § 26, effective June 25, 2013.

151B.150. Office of Career and Technical Education authorized to carry out vocational education programs. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Repealed, reenact. and amend. Acts 1990, ch. 470, § 29, effective July 1, 1990; 1994, ch. 363, § 7, effective July 15, 1994; 2003, ch. 29, § 15, effective June 24, 2003; 2006, ch. 211, § 39, effective July 12, 2006) was repealed, reenacted, and amended as KRS 156.852 by Acts 2013, ch. 59, § 27, effective June 25, 2013.

151B.155. State Treasurer custodian of funds. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (4526-7: amend. Acts 1978, ch. 155, § 83, effective June 17, 1978) was formerly compiled as KRS 163.070 and was repealed, reenacted and amended as this section by Acts 1990, ch. 470, § 30, effective July 1, 1990.

This section (Repealed, reenact. and amend. Acts 1990, ch. 470, § 30, effective July 1, 1990; 2003, ch. 29, § 16, effective June 24, 2003; 2006, ch. 211, § 40, effective July 12, 2006; 2009, ch. 11, § 20, effective June 25, 2009) was repealed, reenacted and amended as KRS 156.854 by Acts 2013, ch. 59, § 28, effective June 25, 2013.

151B.160. Buildings for state vocational schools. [Repealed.]

Compiler’s Notes.

This section (Repealed, reenact. and amend. Acts 1990, ch. 470, § 31, effective July 1, 1990) was repealed by Acts 1997 (Ex. Sess.), ch. 1, § 151, effective May 30, 1997.

A prior section (Enact. Acts 1964, ch. 145, § 1; 1976, ch. 327, § 4; 1978, ch. 155, § 83, effective June 17, 1978) was formerly compiled as KRS 163.085 and was repealed, reenacted and amended as this section by Acts 1990, ch. 470, § 31, effective July 1, 1990.

Legislative Research Commission Note.

(7/13/90) The subsequent repeal, with reenactment and amendment, of this section prevails over its amendment by a prior Act of the 1990 Regular Session pursuant to KRS 446.260 .

151B.165. Tuition and fees in secondary area vocational education and technology centers. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1976, ch. 327, § 5; 1978, ch. 155, § 83, effective June 1, 1978) was formerly compiled as KRS 163.087 and was repealed, reenacted and amended by Acts 1990, ch. 470, § 32, effective July 1, 1990.

This section (Repealed, reenact. and amend. Acts 1990, ch. 470, § 32, effective July 1, 1990; 1997 (1st Ex. Sess.), ch. 1, § 51, effective May 30, 1997; 2003, ch. 29, § 17, effective June 24, 2003; 2006, ch. 211, § 41, effective July 12, 2006) was repealed, reenacted and amended as KRS 156.856 by Acts 2013, ch. 59, § 29, effective June 25, 2013.

151B.170. Liability insurance for motor vehicles owned or operated by office in vocational schools and centers. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1986, ch. 416, § 1, effective April 10, 1986) was formerly compiled as KRS 163.088 and was repealed, reenacted and amended as this section by Acts 1990, ch. 470, § 33, effective July 1, 1990.

This section (Repealed, reenact. and amend. Acts 1990, ch. 470, § 33, effective July 1, 1990; 1994, ch. 469, § 25, effective July 15, 1994; 2006, ch. 211, § 42, effective July 12, 2006) was repealed, reenacted and amended as KRS 156.858 by Acts 2013, ch. 59, § 30.

151B.175. Medical and accident insurance for students. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Repealed, reenact. and amend. Acts 1990, ch. 470, § 34, effective July 1, 1990; 1994, ch. 469, § 26, effective July 15, 1994; 1997 (1st Ex. Sess.), ch. 1, § 52, effective May 30, 1997; 2003, ch. 29, § 18, effective June 24, 2003; 2006, ch. 211, § 43, effective July 12, 2006; 2010, ch. 24, § 182, effective July 15, 2010) was repealed, reenacted and amended as KRS 156.860 by Acts 2013, ch. 59, § 31, effective June 25, 2013.

151B.180. Declaration of intent for KRS 151B.180 to 151B.210.

In enacting KRS 151B.180 to 151B.210 , it is the intention of the General Assembly of Kentucky to provide for and improve the vocational rehabilitation of citizens of the Commonwealth of Kentucky with physical and mental disabilities in order that they may increase their social and economic well-being and the productive capacity of the Commonwealth and nation.

History. Repealed, reenact. and amend. Acts 1990, ch. 470, § 35, effective July 1, 1990; 1994, ch. 405, § 20, effective July 15, 1994.

Compiler’s Notes.

This section (Enact. Acts 1956, ch. 172, § 1; 1984, ch. 316, § 1, effective July 13, 1984) was formerly compiled as KRS 163.110 and was repealed, reenacted and amended as this section by Acts 1990, ch. 470, § 35, effective July 1, 1990.

Legislative Research Commission Note.

(7/13/90). This section has been treated by two 1990 Acts; its repeal and reenactment with amendment in Acts ch. 470 renumbered the section into KRS ch. 151B.

NOTES TO DECISIONS

1.Jurisdiction of Court.

Foreign corporation which contracted with Department of Education to modify van of quadriplegic and which in action by quadriplegic for breach of express and implied warranties of said contract received service of summons and complaint by registered letter from Secretary of State was subject to jurisdiction of court since it transacted business and contracted to supply goods and services within the state. Commonwealth Dep't of Education v. Gravitt, 673 S.W.2d 428, 1984 Ky. App. LEXIS 476 (Ky. Ct. App. 1984).

2.Contract Binding.

Since signature of agent of Department of Education was necessary on contract to authorize the process which would pay company for services in modifying van of quadriplegic, and such agent intended that the five (5) conditions contained in the contract should be enforceable against quadriplegic should the need arise, therefore intending the document as a whole to be binding, agent had authority and intent to enter into contract with quadriplegic. Commonwealth Dep't of Education v. Gravitt, 673 S.W.2d 428, 1984 Ky. App. LEXIS 476 (Ky. Ct. App. 1984).

Document in which Department of Education promised to modify van of quadriplegic in exchange for his acceptance of five (5) conditions some of which would transfer title to the department should the quadriplegic fail to abide by department’s directions constituted a lawfully authorized contract between department and quadriplegic, and since nothing in KRS 163.110 to 163.180 (now 151B.180 et seq.) prohibited such contract, quadriplegic had valid cause of action against department under KRS 45A.245 for major defects which occurred as a result of the modification. Commonwealth Dep't of Education v. Gravitt, 673 S.W.2d 428, 1984 Ky. App. LEXIS 476 (Ky. Ct. App. 1984).

3.Award of Damages.

In an action by quadriplegic against Department of Education and foreign corporation for breach of warranties of contract between department and corporation for modification of quadriplegic’s van, award of damages for use of rental vehicle during van’s immobility and for assistance in transportation and remodification costs were proper but award for depreciation on personal property of quadriplegic and for payments on van were unrelated to the action and were improper. Commonwealth Dep't of Education v. Gravitt, 673 S.W.2d 428, 1984 Ky. App. LEXIS 476 (Ky. Ct. App. 1984).

In action by quadriplegic against Department of Education and foreign corporation for breach of express and implied warranties contained in contract for modification of quadriplegic’s van, award of $10,200 damages was supported by the evidence where measure of damages was the difference in value of the van to the quadriplegic after it was modified as compared to its value before modification ($10,200), where quadriplegic introduced testimony that van had no value after modification and there was no direct testimony of department as to the value of the van after modification. Commonwealth Dep't of Education v. Gravitt, 673 S.W.2d 428, 1984 Ky. App. LEXIS 476 (Ky. Ct. App. 1984).

4.Rehabilitative Products.

The Department of Education is not a guarantor of products supplied as a rehabilitation service. Commonwealth Dep't of Education v. Gravitt, 673 S.W.2d 428, 1984 Ky. App. LEXIS 476 (Ky. Ct. App. 1984).

Research References and Practice Aids

Cross-References.

Education of physically handicapped, KRS ch. 167.

151B.185. Office of Vocational Rehabilitation — Divisions.

  1. The Office of Vocational Rehabilitation is hereby created within the Education and Workforce Development Cabinet, Department of Workforce Investment. The office shall consist of an executive director and those administrative bodies and employees provided or appointed pursuant to law. The office shall be composed of the Division of Kentucky Business Enterprise, the Division of Blind Services, the Division of Field Services, and the Division of the Carl D. Perkins Vocational Training Center. Each division shall be headed by a director appointed by the secretary of the Education and Workforce Development Cabinet under the provisions of KRS 12.050 , and shall be composed of organizational entities as deemed appropriate by the secretary of the Education and Workforce Development Cabinet.
  2. The Office of Vocational Rehabilitation shall have such powers and duties as contained in KRS 151B.180 to 151B.210 and KRS 163.450 to 163.480 and such other functions as may be established by administrative regulation.
  3. The office shall be the sole state agency for the purpose of developing and approving state plans required by state or federal laws and regulations as prerequisites to receiving federal funds for vocational rehabilitation.
  4. The chief executive officer of the office shall be the executive director of the Office of Vocational Rehabilitation. The executive director shall be appointed by the secretary of the Education and Workforce Development Cabinet under the provisions of KRS 12.050 . The executive director shall have experience in vocational rehabilitation and supervision and shall have general supervision and direction over all functions of the office and its employees, and shall be responsible for carrying out the programs and policies of the office.
  5. Except as otherwise provided, the office shall be the state agency responsible for all rehabilitation services and for other services as deemed necessary. The office shall be the agency authorized to expend all state and federal funds designated for rehabilitation services. The Office of the Secretary of the Education and Workforce Development Cabinet is authorized as the state agency to receive all state and federal funds and gifts and bequests for the benefit of rehabilitation services.
  6. Employees under the jurisdiction of the Office of Vocational Rehabilitation who are members of a state retirement system as of June 30, 1990, shall remain in their respective retirement systems.

History. Repealed, reenact. and amend. Acts 1990, ch. 470, § 36, effective July 1, 1990; 1994, ch. 469, § 27, effective July 15, 1994; 2006, ch. 211, § 44, effective July 12, 2006; 2007, ch. 45, § 1, effective June 26, 2007; 2009, ch. 11, § 21, effective June 25, 2009; 2019 ch. 146, § 12, effective June 27, 2019.

Compiler’s Notes.

This section (Enact. Acts 1956, ch. 172, § 2; 1978, ch. 155, § 83, effective June 17, 1978; 1980, ch. 188, § 121, effective July 15, 1980; 1984, ch. 316, § 2, effective July 13, 1984; 1988, ch. 361, § 15, effective July 15, 1988) was formerly compiled as KRS 163.120 and was repealed, reenacted and amended as this section by Acts 1990, ch. 470, § 36, effective July 1, 1990.

Legislative Research Commission Note.

(7/13/90). The subsequent repeal, with reenactment and amendment, of this section prevails over its amendment by a prior Act of the 1990 Regular Session pursuant to KRS 446.260 .

Opinions of Attorney General.

The State Board of Education is without power to remove the Division of Services for the Blind from the administration of the State Rehabilitation Agency and attach it directly to the Office of the State Superintendent of Public Instruction but the Governor under KRS 12.025 (repealed) may make such reorganizational change by executive order, subject to legislative confirmation at the next session of the General Assembly. OAG 75-606 .

151B.190. Vocational rehabilitation services.

Vocational rehabilitation services shall be provided directly or through public or private instrumentalities to any individual with a physical or mental disability:

  1. Who maintains a domicile in the Commonwealth at the time of filing his application therefor, and whose vocational rehabilitation the State Vocational Rehabilitation Agency determines after full investigation can be satisfactorily achieved; or
  2. Who is eligible therefor under the terms of an agreement with another state or with the federal government.

History. Repealed, reenact. and amend. Acts 1990, ch. 470, § 37, effective July 1, 1990; 1994, ch. 405, § 21, effective July 15, 1994; 1994, ch. 469, § 28, effective July 15, 1994.

Compiler’s Notes.

This section (Enact. Acts 1956, ch. 172, § 3; 1984, ch. 316, § 3, effective July 13, 1984) was formerly compiled as KRS 163.130 and was repealed, reenacted and amended as this section by Acts 1990, ch. 470, § 37, effective July 1, 1990.

Legislative Research Commission Note.

(7/15/94). This section was amended by 1994 Ky. Acts chs. 405 and 469 which appear to be identical and have been codified together.

(7/13/90). This section has been treated by two 1990 Acts; its repeal and reenactment in Acts ch. 470 renumbered the section into KRS ch. 151B.

151B.195. Authority of the executive director of the Office of Vocational Rehabilitation.

  1. The executive director of the Office of Vocational Rehabilitation shall prescribe administrative regulations governing the services, personnel, and administration of the State Vocational Rehabilitation Agency; may enter into reciprocal agreements with other states to provide for the vocational rehabilitation of residents of the states concerned; may establish and supervise the operation of small businesses established pursuant to KRS 151B.180 to 151B.210 to be conducted by eligible individuals with severe disabilities; and may establish state funded special programs for vocational rehabilitation in the state vocational rehabilitation agency.
  2. Except as provided in KRS 151B.190 , the executive director may prescribe administrative regulations to establish fees for services provided to individuals or entities, public or private.
  3. The executive director is authorized to provide liability insurance or an indemnity bond against the negligence of drivers of motor vehicles owned or operated by the office for the transportation of applicants or clients of the office. If the transportation is let out under contract, the contract shall require the contractor to carry an indemnity bond or liability insurance against negligence to such amounts as the executive director designates. In either case, the indemnity bond or insurance policy shall be issued by a surety or insurance company authorized to transact business in this state, and shall bind the company to pay any final judgment not to exceed the limits of the policy rendered against the insured for loss or damage to property of any applicant or client or other person, or death or injury of any applicant or client or other person.
  4. The provisions of any other statute notwithstanding, the executive director is authorized to use receipt of funds from the Social Security reimbursement program for a direct service delivery staff incentive program. Incentives may be awarded if case service costs are reimbursed for job placement of Social Security or Supplemental Security Income recipients at the Substantial Gainful Activity (SGA) level for nine (9) months pursuant to 42 U.S.C. sec. 422 and under those conditions and criteria as are established by the federal reimbursement program.

History. Repealed, reenact. and amend. Acts 1990, ch. 470, § 38, effective July 1, 1990; 1998, ch. 33, § 1, effective July 15, 1998; 2006, ch. 211, § 45, effective July 12, 2006.

Compiler’s Notes.

This section (Enact. Acts 1956, ch. 172, § 4; 1976, ch. 377, § 5; 1978, ch. 155, § 83, effective June 17, 1978; 1984, ch. 316, § 4, effective July 13, 1984) was formerly compiled as KRS 163.140 and was repealed, reenacted and amended as this section by Acts 1990, ch. 470, § 38, effective July 1, 1990.

Legislative Research Commission Note.

(7/13/90). The subsequent repeal, with reenactment and amendment, of this section prevails over its amendment by a prior Act of the 1990 Regular Session pursuant to KRS 446.260 .

151B.200. Federal acts relating to vocational rehabilitation.

This state accepts and agrees to comply with all the provisions of the Acts of Congress of the United States approved June 2, 1920 (41 Stat. 735) relating to vocational rehabilitation and all subsequent acts when such acts apply to joint state and federally funded vocational rehabilitation programs.

History. Repealed, reenact. and amend. Acts 1990, ch. 470, § 39, effective July 1, 1990; 1994, ch. 363, § 8, effective July 15, 1994.

Compiler’s Notes.

This section (Enact. Acts 1956, ch. 172, § 6, effective May 18, 1956; 1980, ch. 266, § 1, effective July 15, 1980; 1984, ch. 316, § 5, effective July 13, 1984) was formerly compiled as KRS 163.160 and was repealed, reenacted and amended as this section by Acts 1990, ch. 470, § 39, effective July 1, 1990.

Legislative Research Commission Note.

(7/13/90). The Act amending this section prevails over the repeal and reenactment in House Bill 940, Acts ch. 476, pursuant to Section 653(1) of Acts ch. 476.

151B.205. State Treasurer designated as custodian of funds.

The State Treasurer is hereby designated as the custodian of all funds. The State Treasurer shall make disbursements for vocational rehabilitation purposes upon certification by the executive director of the Office of Vocational Rehabilitation.

History. Repealed, reenact. and amend. Acts 1990, ch. 470, § 40, effective July 1, 1990; 2006, ch. 211, § 46, effective July 12, 2006.

Compiler’s Notes.

This section (Enact. Acts 1956, ch. 172, § 7, effective May 18, 1956; 1984, ch. 316, § 6, effective July 13, 1984) was formerly compiled as KRS 163.170 and was repealed, reenacted and amended as this section by Acts 1990, ch. 470, § 40, effective July 1, 1990.

Legislative Research Commission Note.

(7/13/90). This section was amended by two 1990 Acts which are in conflict. Pursuant to KRS 446.250 , the Act which was last enacted by the General Assembly prevails.

151B.210. Gifts may be received.

The executive director of the Office of Vocational Rehabilitation may accept and use gifts made by will or otherwise for carrying out the purposes of KRS 151B.180 to 151B.210 . Gifts made under such conditions as in the judgment of the executive director of the Office of Vocational Rehabilitation are proper and consistent with the provisions of KRS 151B.180 to 151B.210 may be so accepted and shall be held, invested, reinvested, and used in accordance with the provisions of KRS 151B.180 to 151B.210.

History. Repealed and reenact. Acts 1990, ch. 470, § 41, effective July 1, 1990; 2006, ch. 211, § 47, effective July 12, 2006.

Compiler’s Notes.

This section (Enact. Acts 1956, ch. 172, § 8, effective May 18, 1956; 1978, ch. 155, § 83, effective June 17, 1978; 1980, ch. 188, § 122, effective July 15, 1980) was formerly compiled as KRS 163.180 and was repealed, reenacted, and amended as this section by Acts 1990, ch. 470, § 41, effective July 1, 1990.

Legislative Research Commission Note.

(7/13/90). This section was amended by two 1990 Acts which are in conflict. Pursuant to KRS 446.250 , the Act which was last enacted by the General Assembly prevails.

151B.215. Kentucky Occupational Information Coordinating Committee. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 42, effective July 1, 1990; 1992, ch. 105, § 65, effective July 14, 1992; 1994, ch. 363, § 9, effective July 15, 1994; 1994, ch. 469, § 29, effective July 15, 1994; 1996, ch. 194, § 10, effective July 15, 1996; 1996, ch. 271, § 6, effective July 15, 1996; 1997 (1st Extra. Sess.), ch. 1, § 53, effective May 30, 1997; 2000, ch. 156, § 3, effective July 14, 2000) was repealed by Acts 2006, ch. 211, § 170, effective July 12, 2006.

151B.220. Kentucky Job Training Coordinating Council. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 470, § 43, effective July 1, 1990; 1992, ch. 151, § 1, effective July 14, 1992; 1994, ch. 469, § 30, effective July 15, 1994; 1996, ch. 194, § 11, effective July 15, 1996; 1998, ch. 426, § 107, effective July 15, 1998) was repealed by Acts 2000, ch. 156, § 5, effective July 14, 2000.

151B.225. Client Assistance Program.

  1. There is hereby created a Client Assistance Program which is assigned for administrative purposes to the Office of Legal and Legislative Services within the Education and Workforce Development Cabinet.
  2. The Client Assistance Program shall pursue legal, administrative, and other appropriate remedies to ensure the protection of rights of individuals with disabilities who are receiving treatment, services, or rehabilitation under the Rehabilitation Act of 1973, as amended. If additional resources are required to perform the duties and responsibilities of the Client Assistance Program, the cabinet, on behalf of the Client Assistance Program, may contract with other state agencies to obtain necessary legal or other professional services.
  3. The Office of Legal and Legislative Services shall serve as the agency in charge of all personnel, equipment, records, files, and funds pertaining to the Client Assistance Program as provided for in the Rehabilitation Act of 1973, as amended.

History. Enact. Acts 1990, ch. 470, § 44, effective July 1, 1990; 1994, ch. 405, § 22, effective July 15, 1994; 1994, ch. 469, § 31, effective July 15, 1994; 2002, ch. 300, § 3, effective July 15, 2002; 2006, ch. 211, § 48, effective July 12, 2006; 2009, ch. 11, § 22, effective June 25, 2009.

Compiler’s Notes.

The Rehabilitation Act of 1973, referred to in subsections (2) and (3) of this section, is compiled as 29 USCS § 701 et seq.

151B.230. Foundation for Workforce Development — Funding — Board of trustees — Annual report.

  1. There is hereby established a nonprofit foundation to be known as the “Foundation for Workforce Development.” The purpose of the foundation shall be to supplement public funding for technical education programs in order to expand existing skills training programs.
  2. Funding for the foundation shall be obtained through contributions by the private sector. The foundation shall be empowered to solicit and accept funds from the private sector to be used to fund technical education programs especially designed for business and industry. Contributors may specify that contributed funds be used to improve the technical skill level of their employees.
  3. The foundation shall be governed by a board of trustees to be appointed by the secretary of the Education and Workforce Development Cabinet based on recommendations from business, industry, labor, education, and interested citizens. Staff assistance for the board of trustees shall be provided by the Office of Career and Technical Education.
  4. The foundation shall be attached to the Education and Workforce Development Cabinet for administrative purposes.
  5. The foundation shall report its finances consistent with statutes and regulations promulgated by the Finance and Administration Cabinet. An annual report shall be made to the Interim Joint Committee on Appropriations and Revenue. This report shall follow generally accepted accounting procedures and shall include a detail reporting on all moneys acquired and expended.

History. Enact. Acts 1992, ch. 417, § 9, effective July 14, 1992; 1994, ch. 469, § 32, effective July 15, 1994; 2006, ch. 211, § 49, effective July 12, 2006; 2009, ch. 11, § 23, effective June 25, 2009.

151B.230. Foundation for Workforce Development — Funding — Board of trustees — Annual report. [Repealed]

HISTORY: Enact. Acts 1992, ch. 417, § 9, effective July 14, 1992; 1994, ch. 469, § 32, effective July 15, 1994; 2006, ch. 211, § 49, effective July 12, 2006; 2009, ch. 11, § 23, effective June 25, 2009; repealed by 2021 ch. 26, § 12.

151B.240. Statewide Independent Living Council.

History. Enact. Acts 1994, ch. 469, § 3, effective July 15, 1994; 2000, ch. 211, § 1, effective July 14, 2000; 2006, ch. 211, § 50, effective July 12, 2006; was renumbered to be § 194A.115 , by 2016, ch. 32, § 2, effective July 12, 2016.

151B.245. Statewide Council for Vocational Rehabilitation — Membership — Meetings.

  1. The Statewide Council for Vocational Rehabilitation is hereby created within the Office of Vocational Rehabilitation to accomplish the purposes and functions enumerated in 29 U.S.C. secs. 701 et seq. Members of the council shall be appointed by the Governor pursuant to the guidelines in this section. When appointing members of the council, the Governor shall consider, to the greatest extent practicable, the extent to which minority populations are represented on the council.
  2. The Statewide Council for Vocational Rehabilitation shall consist of the following members which shall serve for the following staggered initial terms but their successors shall serve for a term of three (3) years:
    1. One (1) representative of the Statewide Independent Living Council, who shall be the chair or other designee of the Statewide Independent Living Council and who shall serve an initial term of two (2) years;
    2. One (1) representative of a parent training and information center established pursuant to Section 682(a) of the Individuals with Disabilities Education Act who shall serve an initial term of one (1) year;
    3. One (1) representative of the Client Assistance Program established under 34 C.F.R. pt. 370, who shall be designated by the employee of the Education and Workforce Development Cabinet responsible for overseeing the Client Assistance Program and who shall serve an initial term of one (1) year;
    4. One (1) representative of community rehabilitation program service providers who shall serve an initial term of three (3) years;
    5. Four (4) representatives of business, industry, and labor who shall each serve an initial term of three (3) years;
    6. One (1) representative of a disability group that includes individuals with physical, cognitive, sensory, and mental disabilities who shall serve an initial term of two (2) years;
    7. One (1) representative of a disability group that includes individuals with disabilities who have difficulty representing themselves or are unable due to their disabilities to represent themselves who shall serve an initial term of two (2) years;
    8. One (1) current or former applicant for or recipient of vocational rehabilitation services who shall serve for an initial term of one (1) year;
    9. One (1) representative of the state educational agency responsible for the public education of students with disabilities who are eligible to receive services under Part B of the Individuals with Disabilities Education Act who shall serve for an initial term of one (1) year;
    10. One (1) representative of the Kentucky Workforce Investment Board who shall serve an initial term of one (1) year;
    11. One (1) representative from the Kentucky Council for the Blind who shall serve an initial term of three (3) years;
    12. One (1) representative from the National Federation for the Blind from Kentucky who shall serve an initial term of three (3) years;
    13. One (1) representative from the Bluegrass Council of the Blind who shall serve an initial term of three (3) years;
    14. One (1) representative from the State Committee of Blind Vendors who shall serve an initial term of one (1) year;
    15. One (1) qualified vocational rehabilitation counselor with knowledge of and experience with vocational rehabilitation programs who serves as an ex officio, nonvoting member of the council if employed by the designated state agency and who shall serve an initial term of two (2) years; and
    16. The executive director of the Office of Vocational Rehabilitation as an ex officio, nonvoting member of the council.
  3. The members of the council shall not be compensated for their service on the council. Council members shall be reimbursed for their necessary expenses pursuant to KRS 12.029 .
  4. Including the initial appointment, and with the exception of the individuals set out in paragraphs (c) and (p) of subsection (2) of this section, members shall serve no more than two (2) successive terms. A member appointed to fill a vacancy occurring prior to the end of the term for which the predecessor was appointed shall be appointed for the remainder of the predecessor’s term.
  5. A chair shall be selected by the members of the council from among the voting members of the council, subject to the veto power of the Governor.
  6. No member of the council shall cast a vote on any matter that would provide direct financial benefit to the member or the member’s organization or otherwise give the appearance of a conflict of interest under state law.
  7. A majority of the members of the council shall be individuals with disabilities who meet the requirements of 34 C.F.R. sec. 361.5(c)(28) and who are not employed by the designated state unit.
  8. The council shall convene at least four (4) meetings a year in locations determined by the council to be necessary to conduct council business. The meetings shall be publicly announced, open, and accessible to the general public, including individuals with disabilities, unless there is a valid reason for an executive session under the Open Meetings Act, KRS 61.805 to 61.850 .

History. Enact. Acts 1994, ch. 469, § 4, effective July 15, 1994; 2000, ch. 211, § 2, effective July 14, 2000; 2006, ch. 211, § 51, effective July 12, 2006; 2019 ch. 146, § 13, effective June 27, 2019.

Compiler’s Notes.

Title I, part A, of the Rehabilitation Act Amendments of 1998, Pub. L. 105-220 referenced herein refers to the amendments to Title I, part A of the Rehabilitation Act of 1973 by Title IV, § 404 of P.L. 105-220.

151B.250. School-to-Careers System — Office of Career and Technical Education. [Repealed.]

Compiler’s Note.

This section (Enact. Acts 1996, ch. 134, § 1, effective July 15, 1996; 1998, ch. 444, § 3, effective April 9, 1998; 2001, ch. 38, § 3, effective June 21, 2001; 2006, ch. 211, § 52, effective July 12, 2006; 2009, ch. 11, § 24, effective June 25, 2009) was repealed by Acts 2013, ch. 59, § 48, effective June 25, 2013.

151B.255. Representative group for Office of School-to-Work. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 134, § 2, effective July 15, 1996; 1998, ch. 444, § 4, effective April 9, 1998) was repealed by Acts 2013, ch. 59, § 48, effective June 25, 2013.

151B.260. Department for Training and Reemployment — Appointment of commissioner. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 261, § 2, effective July 15, 1996; 2001, ch. 38, § 4, effective June 21, 2001) was repealed by Acts 2006, ch. 211, § 170, effective July 12, 2006.

151B.280. Offices within Department of Workforce Investment — Administrative regulations — Confidentiality of information.

  1. The Office of Unemployment Insurance is created and established within the Department of Workforce Investment within the Education and Workforce Development Cabinet. The Office of Unemployment Insurance shall be headed by an executive director appointed by the Governor pursuant to KRS 12.050 who shall report to the commissioner of the Department of Workforce Investment.
  2. The Office of Employer and Apprenticeship Services is created and established within the Department of Workforce Investment within the Education and Workforce Development Cabinet. The Office of Employer and Apprenticeship Services shall be headed by an executive director appointed by the Governor pursuant to KRS 12.050 who shall report to the commissioner of the Department of Workforce Investment.
  3. The Career Development Office is created and established within the Department of Workforce Investment within the Education and Workforce Development Cabinet. The Career Development Office shall be headed by an executive director appointed by the Governor pursuant to KRS 12.050 who shall report to the commissioner of the Department of Workforce Investment.
    1. The Office of Adult Education is created and established within the Department of Workforce Investment within the Education and Workforce Development Cabinet. The Office of Adult Education shall be headed by an executive director appointed by the Governor pursuant to KRS 12.050 who shall report to the commissioner of the Department of Workforce Investment. (4) (a) The Office of Adult Education is created and established within the Department of Workforce Investment within the Education and Workforce Development Cabinet. The Office of Adult Education shall be headed by an executive director appointed by the Governor pursuant to KRS 12.050 who shall report to the commissioner of the Department of Workforce Investment.
    2. All employees of the Office of Adult Education (Kentucky Skills U) shall be unclassified employees.
    1. The secretary of the Education and Workforce Development Cabinet shall develop and promulgate administrative regulations which protect the confidential nature of all records and reports of the Office of Unemployment Insurance, the Career Development Office, and the Office of Employer and Apprenticeship Services which directly or indirectly identify a client or former client and which ensure that these records are not disclosed to or by any person except and insofar as: (5) (a) The secretary of the Education and Workforce Development Cabinet shall develop and promulgate administrative regulations which protect the confidential nature of all records and reports of the Office of Unemployment Insurance, the Career Development Office, and the Office of Employer and Apprenticeship Services which directly or indirectly identify a client or former client and which ensure that these records are not disclosed to or by any person except and insofar as:
      1. The person identified shall give his consent; or
      2. Disclosure may be permitted under state or federal law.
    2. Notwithstanding any other state statute or administrative regulation to the contrary, any information concerning individual clients or applicants in the possession of the Department of Workforce Investment may be shared with any authorized representative of any other state or local governmental agency, if the agency has a direct, tangible, and legitimate interest in the individual. The agency receiving the information shall assure the confidentiality of all information received. The Department of Workforce Investment may share information concerning a client or applicant with any private or quasi-private agency if:
      1. The agency has an agreement with the cabinet assuring the confidentiality of the information; and
      2. The agency has a direct, tangible, and legitimate interest in the individual.

History. Enact. Acts 1996, ch. 271, § 1, effective July 15, 1996; 2006, ch. 211, § 53, effective July 12, 2006; 2009, ch. 11, § 25, effective June 25, 2009; 2019 ch. 146, § 14, effective June 27, 2019.

Opinions of Attorney General.

The Education Cabinet properly relied on KRS 341.190 and KRS 151B.280(3), incorporated into the Open Records Act by operation of KRS 61.878(1)(l), in denying a request to inspect and copy decisions of the Unemployment Insurance Commission that relate to the issue of who is considered to be a employer for purposes of having to pay state unemployment insurance tax. OAG 83-405 is overruled on the basis of subsequent amendments to the law. OAG 05-ORD-186.

336.___. Administration and supervision of state employment offices — Duties of cabinet.

  1. The Labor Cabinet shall administer and supervise state employment offices and perform any other duties within the Act of Congress entitled “An Act to provide for the establishment of a National Employment Service and for Cooperation with the State in the Promotion of Such System and for Other Purposes,” approved June 6, 1933 (48 Stat. 113, U.S.C., Title 29, sec. 49(c)), as amended, and known as the Wagner-Peyser Act. All duties and powers relating to the establishment, maintenance, and operation of free public employment offices are vested in the Labor Cabinet, except that on or before April 15, 2021, there shall be twelve (12) regional full-time free public employment offices open, fully operational, and staffed by properly trained unemployment insurance specialists in each of the regions where the secretary has determined there is an average unemployment rate above five percent (5%) for the preceding six (6) month period ending either on June 30 or December 31. The Labor Cabinet may, at its discretion, open and operate additional free public employment satellite offices on a full or partial schedule.
  2. The provisions of the Wagner-Peyser Act, as amended, are accepted by this state in conformity with Section 4 of that Act, and this state will observe and comply with the requirements of that Act. The Labor Cabinet is designated and constituted the agency of this state for the purposes of the Wagner-Peyser Act.

HISTORY: Enact. Acts 1996, ch. 271, § 2, effective July 15, 1996; 2006, ch. 211, § 54, effective July 12, 2006; 2009, ch. 11, § 26, effective June 25, 2009; renumbered from § 151B.285 by 2021 ch. 184, § 2, effective April 5, 2021.

Warranties for New Assistive Devices

151B.300. Definitions for KRS 151B.300 to 151B.335.

As used in KRS 151B.300 to 151B.335 , unless the context indicates otherwise:

  1. “Individual with disabilities” means any individual who is considered to have a mental or physical disability, impairment, or handicap for purposes of any other law of this state or of the United States, including any rules or regulations thereunder.
  2. “Assistive device” means any item, device, piece of equipment, or product system or component thereof, including a demonstrator, that is designed and used to increase, maintain, or improve functional capabilities of individuals with disabilities in the areas of seeing, hearing, speaking, walking, breathing, performing manual tasks, learning, caring for oneself, or working. The term includes, but is not limited to:
    1. Manual wheelchairs;
    2. Motorized wheelchairs;
    3. Motorized scooters;
    4. Other aids that enhance the mobility of an individual;
    5. Hearing aids;
    6. Assistive listening devices;
    7. Other aids that enhance an individual’s ability to hear or communicate;
    8. Voice-synthesized computer modules;
    9. Optical scanners;
    10. Talking software;
    11. Braille printers;
    12. Large print materials;
    13. Other devices that enhance an individual’s ability to access print or communicate;
    14. Other devices such as environmental controls;
    15. Adaptive transportation aids;
    16. Communication boards; and
    17. Modified environments.
  3. “Assistive device dealer” means a person who is in the business of selling new assistive devices.
  4. “Assistive device lessor” means a person who leases new assistive devices to consumers, or who holds the lessor’s rights, under a written lease.
  5. “Collateral costs” means expenses incurred by a consumer in connection with the repair of a nonconformity, including the cost of sales tax and of obtaining an alternative assistive device.
  6. “Consumer” means any person, including a public agency or other private organization, who acquires an assistive device on behalf of or for the benefit of an individual with a disability who:
    1. Purchases an assistive device from an assistive device manufacturer, its agent, or authorized dealer for purposes other than resale;
    2. Obtains or otherwise receives an assistive device for purposes other than resale, provided the transfer occurs before the expiration of an express warranty applicable to the assistive device;
    3. Possesses the right to enforce the express warranty; or
    4. Leases an assistive device from an authorized assistive device lessor under a written lease.
  7. “Demonstrator” means an assistive device used primarily for the purpose of demonstration to the public.
  8. “Early termination cost” means an expense or obligation that an assistive device lessor incurs as a result of both the termination of a written lease before the termination date set forth in that lease, and the return of an assistive device to the manufacturer. The term includes any penalty for prepayment under a finance arrangement.
  9. “Early termination savings” means an expense or obligation that an assistive device lessor avoids as a result of both the termination of a written lease before the termination date set forth in that lease and the return of an assistive device to the manufacturer. The term includes an interest charge that the assistive device lessor would have paid to finance the assistive device or, if the assistive device lessor does not finance the assistive device, the difference between the total period of the lease remaining after the early termination and the present value of that amount at the date of the early termination.
  10. “Manufacturer” means a person who manufactures or assembles assistive devices including agents of that person, an importer, a distributor, a factory branch, distributor branch, and any warrantors of the manufacturer’s assistive device, but does not include an assistive device dealer or an assistive device lessor.
  11. “Nonconformity” means a specific condition or generic defect or malfunction, or a defect or condition of a component of the assistive device that substantially impairs the use, value, or safety of an assistive device, and that is covered by an express warranty applicable to the assistive device or to a component of the assistive device, but does not include:
    1. A condition of the device that is the result of abuse, neglect, unauthorized modification, or alteration of the assistive device by the consumer.
    2. A condition of the device that is the result of normal use which may be resolved through a fitting or other routine adjustment, proper preventative maintenance, or care in accordance with written instructions provided with the assistive device.
  12. “Reasonable attempt to repair” means any of the following occurring within the term of an express warranty applicable to a new assistive device:
    1. The new assistive device has been subject to repair two (2) or more times, for the same nonconformity, by the manufacturer, its agent, or authorized assistive device dealer or lessor, and the nonconformity continues; or
    2. The assistive device is out of service for an aggregate of at least thirty (30) cumulative calendar days because of warranty nonconformities. The thirty (30) days shall begin upon the day the consumer first makes the assistive device available for repair to the manufacturer, its agent, or authorized dealer or lessor.

History. Enact. Acts 1998, ch. 221, § 1, effective July 15, 1998.

151B.305. Manufacturer’s express warranty on new assistive devices — Effect of failure to furnish — Nonexclusivity of warranty.

  1. A manufacturer who sells or leases a new assistive device to a consumer, either directly or through an assistive device dealer or lessor, shall expressly warrant that the assistive device shall be free of any condition, defect, or malfunction which substantially impairs the use, value, or safety of the assistive device for a period of one (1) year after first possession of the assistive device by the consumer.
  2. If a manufacturer fails to furnish an express warranty as required by this section, the assistive device shall be covered by an express warranty as if the manufacturer had furnished an express warranty to the consumer as required by this section.
  3. Nothing in KRS 151B.300 to 151B.335 shall limit the ability of the manufacturer or any dealer or lessor from providing additional warranties on assistive devices nor limit or affect any other warranties applicable to assistive devices, whether implied or expressed.

History. Enact. Acts 1998, ch. 221, § 2, effective July 15, 1998.

151B.310. Repair under warranty.

If a new assistive device does not conform to an applicable express warranty and the consumer reports the nonconformity to the manufacturer, its agent, or authorized dealer or lessor within one (1) year after first possession of the assistive device by the consumer, the manufacturer, its agent, or authorized dealer or lessor shall make repairs necessary to conform the assistive device to the warranty, whether or not the repairs are made after one (1) year from the date of first possession of the assistive device by the consumer. Repairs made under warranty shall be made at no charge to the consumer.

History. Enact. Acts 1998, ch. 221, § 3, effective July 15, 1998.

151B.315. Manufacturer’s duty when nonconformity is not repaired after reasonable attempt — Lease value — Allowance for use.

  1. If, after a reasonable attempt to repair, the nonconformity is not repaired, the manufacturer shall carry out, at the option of the consumer, the requirements under paragraph (a) or (b) of this subsection.
    1. To provide for refunds, at the request of the consumer, the manufacturer shall do one (1) of the following:
      1. Accept return of the assistive device and refund to the consumer and to any holder of a perfected security interest in the consumer’s assistive device, as the interest may appear, the full purchase price including any finance charge paid by the consumer at the point of sale, plus collateral costs, less a reasonable allowance for use, except that in the case of hearing aids, the manufacturer’s invoice price shall be refunded; or
      2. Accept return of the assistive device, refund to the assistive device lessor and to any holder of a perfected security interest in the assistive device, as the interest may appear, the current value of the written lease and refund to the consumer the amount that the consumer paid under the written lease plus collateral costs, less a reasonable allowance for use.
    2. To receive a comparable new assistive device to that having the nonconformity or a refund, the consumer shall offer to transfer possession of the nonconforming assistive device to its manufacturer. No later than thirty (30) days after that offer, the manufacturer shall provide the consumer with the comparable assistive device or a refund. When the manufacturer provides the comparable new assistive device or the refund, the consumer shall return the assistive device having the nonconformity to the manufacturer, along with any endorsements necessary to transfer legal possession to the manufacturer.
  2. If, after a reasonable attempt to repair, the nonconformity is not repaired, an assistive device lessor shall receive a refund from the manufacturer. To receive a refund, the assistive device lessor shall offer to transfer possession of a nonconforming assistive device to its manufacturer. No later than thirty (30) days after that offer, the manufacturer shall provide the refund to the assistive device lessor. When the manufacturer provides the refund, the assistive device lessor shall provide to the manufacturer any endorsements necessary to transfer legal possession to the manufacturer.
  3. Under this section, the current value of the written lease equals the total amount for which that lease obligates the consumer during the period of the lease remaining after its early termination, plus the assistive device dealer’s early termination costs and the value of the assistive device at the lease expiration date, if the lease sets forth that value, less the assistive device lessor’s early termination savings.
  4. Under this section, a reasonable allowance for use may not exceed the amount obtained by multiplying the total amount paid by the consumer under a purchase or for which the consumer is obligated under a written lease by a fraction, the denominator of which is one thousand eight hundred twenty-five (1,825), which is the number of days in a five (5) year period, and the numerator of which is the number of days that the consumer used the assistive device before first reporting the nonconformity to the manufacturer, assistive device lessor, or assistive device dealer.
  5. No person may enforce the lease against the consumer after the consumer receives a refund.

History. Enact. Acts 1998, ch. 221, § 4, effective July 15, 1998.

151B.320. Disclosure requirement on sale or lease of returned assistive device.

No assistive device returned by a consumer or assistive device lessor in this state or returned in another state as a result of a nonconformity to a warranty may be sold or leased in this state unless full disclosure of the reason for return is made to a prospective buyer or lessee.

History. Enact. Acts 1998, ch. 221, § 5, effective July 15, 1998.

151B.325. Manufacturer’s duty to provide substitute assistive device or rental reimbursement during warranty repair — Conditions.

  1. Whenever an assistive device covered by a manufacturer’s express warranty is tendered by a consumer to the dealer from whom it was purchased or exchanged for the repair of a defect, malfunction, or nonconformity to which the warranty is applicable, and at least one (1) of the following conditions exists, the manufacturer shall provide directly to the consumer for the duration of the repair period, a comparable replacement assistive device or a rental assistive device reimbursement to pay for the cost incurred by the consumer for renting a comparable replacement assistive device. The applicable conditions are as follows:
    1. The repair period exceeds ten (10) working days, including the day on which the device is tendered to the dealer for repair; or
    2. The defect, malfunction, or nonconformity is the same one for which the assistive device has been tendered to the dealer for repair on at least two (2) previous occasions.
  2. This section applies for the period of the manufacturer’s express warranty or the period prescribed in KRS 151B.305(2), whichever is greater, whether or not the repairs extend beyond that period.

History. Enact. Acts 1998, ch. 221, § 6, effective July 15, 1998.

151B.330. Consumer’s right of action for damages — Nonlimitation of rights and remedies — Nonwaiverability.

  1. In addition to pursuing any other remedy, a consumer may bring an action to recover for any damages caused by a violation of KRS 151B.300 to 151B.335 in a court of appropriate jurisdiction in the county where the consumer resides or where the manufacturer resides or has its principal place of business. The court shall award a consumer who prevails in such an action the amount of any pecuniary loss, together with costs, disbursements, and reasonable attorney’s fees, and any equitable relief the court determines is appropriate.
  2. KRS 151B.300 to 151B.335 shall not be construed to limit rights or remedies available to the consumer under any other law, and the remedies provided under KRS 151B.300 to 151B.335 are inclusive and in addition to any other remedies provided by law.
  3. Any agreement entered into by a consumer which waives, limits, or disclaims the rights set forth in KRS 151B.300 to 151B.335 shall be void as contrary to public policy.

History. Enact. Acts 1998, ch. 221, § 7, effective July 15, 1998.

151B.335. Short title for KRS 151B.300 to 151B.335.

KRS 151B.300 to 151B.335 may be cited as the “Kentucky New Assistive Device Warranty Act.”

History. Enact. Acts 1998, ch. 221, § 8, effective July 15, 1998.

Adult Education Learning System

151B.400. Legislative findings. [Repealed and reenacted.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 487, § 1, effective July 15, 1994) was repealed and reenacted as KRS 164.006 by Acts 2006, ch. 211, § 167, effective July 12, 2006.

151B.401. Legislative findings.

The General Assembly of the Commonwealth of Kentucky finds and declares that:

  1. The economic future of the Commonwealth and the prosperity of its citizens depend on the ability of Kentucky businesses to compete effectively in the world economy;
  2. A well-educated and highly trained workforce provides businesses in the Commonwealth with the competitive edge critical for their success; and
  3. Too many adult Kentuckians are not full participants in the labor pool because they lack a high school diploma, its equivalent, or the workplace knowledge necessary to assure self-sufficiency for themselves and their families.

HISTORY: Enact. Acts 1994, ch. 487, § 1, effective July 15, 1994; repealed and reenact., Acts 2006, ch. 211, § 167, effective July 12, 2006; repealed and reenacted by 2019 ch. 146, § 38, effective June 27, 2019.

151B.402. Legislative findings relating to need for High School Equivalency Diplomas — Incentives — Administrative regulations — Learning contracts — Tuition discounts — Tax credit for employers.

  1. The General Assembly recognizes the critical condition of the educational level of Kentucky’s adult population and seeks to stimulate the attendance at, and successful completion of, programs that provide a High School Equivalency Diploma. Incentives shall be provided to full-time employees who complete a High School Equivalency Diploma program within one (1) year and their employers.
  2. The Office of Adult Education within the Department of Workforce Investment in the Education and Workforce Development Cabinet shall promulgate administrative regulations to establish the operational procedures for this section. The administrative regulations shall include but not be limited to the criteria for:
    1. A learning contract that includes the process to develop a learning contract between the student and the adult education instructor with the employer’s agreement to participate and support the student;
    2. Attendance reports that validate that the student is enrolled and studying for the High School Equivalency Diploma during the release time from work; and
    3. Final reports that qualify the student for the tuition discounts under subsection (3)(a) of this section and that qualify the employer for tax credits under subsection (4) of the section.
    1. An individual who has been out of secondary school for at least three (3) years, develops and successfully completes a learning contract that requires a minimum of five (5) hours per week to study for the High School Equivalency Diploma program, and successfully earns a High School Equivalency Diploma shall earn a tuition discount of two hundred fifty dollars ($250) per semester for a maximum of four (4) semesters at one (1) of Kentucky’s public postsecondary institutions. (3) (a) An individual who has been out of secondary school for at least three (3) years, develops and successfully completes a learning contract that requires a minimum of five (5) hours per week to study for the High School Equivalency Diploma program, and successfully earns a High School Equivalency Diploma shall earn a tuition discount of two hundred fifty dollars ($250) per semester for a maximum of four (4) semesters at one (1) of Kentucky’s public postsecondary institutions.
    2. The program shall work with the postsecondary institutions to establish notification procedures for students who qualify for the tuition discount.
  3. An employer who assists an individual to complete his or her learning contract under the provisions of this section shall receive a state tax credit against the income tax imposed by KRS 141.020 or 141.040 , and the limited liability entity tax imposed by KRS 141.040 1, with credit ordering as provided in KRS 141.0205 for a portion of the released time given to the employee to study for the tests. The application for the tax credit shall be supported with attendance documentation provided by the Office of Adult Education and calculated by multiplying fifty percent (50%) of the hours released for study by the student’s hourly salary, and not to exceed a credit of one thousand two hundred fifty dollars ($1250).

HISTORY: Enact. Acts 2000, ch. 526, § 12, effective July 14, 2000; 2006, ch. 211, § 37, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 38, effective June 28, 2006; repealed and reenact. Acts 2013, ch. 59, § 33, effective June 25, 2013; repealed, reenact. and amend., Acts 2019, ch. 146, § 39, effective June 27, 2019.

151B.403. Adult education programs aligned with federal college and career readiness standards — High School Equivalency Diploma — Programs and examinations — Previously issued equivalency or external diploma to be considered High School Equivalency Diploma — Validity of diplomas after changes in test selection.

  1. The Office of Adult Education within the Department of Workforce Investment in the Education and Workforce Development Cabinet shall promulgate administrative regulations to establish programs aligned with the College and Career Readiness Standards for Adult Education, or any other similar standards adopted by the federal Office of Career, Technical, and Adult Education, which upon successful completion, shall result in the issuance of a High School Equivalency Diploma.
  2. At least one (1) program authorized under subsection (1) of this section shall include a test aligned with the College and Career Readiness Standards for Adult Education, or any other standards adopted by the federal Office of Career, Technical, and Adult Education, to serve as a qualifying test, which upon passing, shall entitle students to receive a High School Equivalency Diploma.
  3. For purposes of any public employment, a High School Equivalency Diploma shall be considered equal to a high school diploma issued under the provisions of KRS 158.140 .
  4. A High School Equivalency Diploma shall be issued without charge upon successfully completing a High School Equivalency Diploma program. A fee may be assessed by the Office of Adult Education for the issuance of a duplicate High School Equivalency Diploma and for issuance of a duplicate score report. All fees collected for duplicate diplomas and score reports shall be used to support the adult education program.
  5. The Office of Adult Education is authorized to contract annually with an institution of higher education or other appropriate agency or entity for scoring High School Equivalency Diploma program examinations.
  6. On June 29, 2017, any high school equivalency diploma or external diploma previously recognized or issued by the Commonwealth shall be considered retroactively as a High School Equivalency Diploma.
  7. Upon issuance, a High School Equivalency Diploma shall not be invalidated by any subsequent changes in test selection under this section.

HISTORY: Enact. Acts 1972, ch. 192, § 1; 1986, ch. 311, § 1, effective July 15, 1986; 1988, ch. 361, § 12, effective July 15, 1988; repealed, reenact. and amend. Acts 1990, ch. 470, § 23, effective July 1, 1990; 1990, 476, § 167; 1994, ch. 363, § 6, effective July 15, 1994; 1994, ch. 469, § 23, effective July 15, 1994; 1996, ch. 145, § 1, effective July 15, 1996; 1998, ch. 63, § 2, effective July 15, 1998; 2003, ch. 29, § 13, effective June 24, 2003; 2006, ch. 211, § 36, effective July 12, 2006; repealed and reenact., Acts 2013, ch. 59, § 32, effective June 25, 2013; 2017 ch. 63, § 1, effective June 29, 2017; repealed, reenact. and amend., Acts 2019, ch. 146, § 40, effective June 27, 2019.

151B.404. Definitions.

  1. “Adult education” means, for programs funded under the federal Workforce Innovation and Opportunity Act, services or instruction below the postsecondary level for individuals:
    1. Who have attained the age of sixteen (16) years of age;
    2. Who are not enrolled or required to be enrolled in secondary school under state law; and
    3. Who:
      1. Lack sufficient mastery of basic educational skills to enable the individuals to function effectively in society;
      2. Are unable to speak, read, or write the English language; or
      3. Do not have a secondary school diploma or its recognized equivalent, and have not achieved an equivalent level of education;
  2. “Family literacy services” means services that are of sufficient intensity in terms of hours, and of sufficient duration, to assist a family to make sustainable increases in its literacy level, and integrate the activities described in KRS 158.360 ; and
  3. “Literacy” means an individual’s ability to read, write, and speak in English and compute and solve problems at levels of proficiency necessary to function on the job and in society to achieve one’s goals and develop one’s knowledge and potential.

HISTORY: Enact. Acts 1994, ch. 487, § 2, effective July 15, 1994; 2000, ch. 526, § 9, effective July 14, 2000; repealed and reenact., Acts 2006, ch. 211, § 168, effective July 12, 2006; 2013, ch. 59, § 36, effective June 25, 2013; repealed, reenact. and amend., Acts 2019, ch. 146, § 41, effective June 27, 2019.

151B.405. Definitions for KRS 151B.400 to 151B.410. [Repealed and reenacted.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 487, § 2, effective July 15, 1994; 2000, ch. 526, § 9, effective July 14, 2000) was repealed and reenacted as KRS 164.007 by Acts 2006, ch. 211, § 168, effective July 12, 2006.

151B.406. Office of Adult Education — Educational strategy and responsibilities — Organization — Sole agency for developing and approving state plans.

  1. The Office of Adult Education is created within the Department of Workforce Investment in the Education and Workforce Development Cabinet to carry out the statewide adult education mission. The office shall implement a twenty (20) year state strategy to reduce the number of adults who are at the lowest levels of literacy and most in need of adult education and literacy services. The office shall have responsibility for all functions related to adult education and literacy. The office shall:
    1. Promote coordination of programs and responsibilities linked to the issue of adult education with other agencies and institutions;
    2. Facilitate the development of strategies to increase the knowledge and skills of adults in all counties by promoting the efficient and effective coordination of all available education and training resources;
    3. Lead a statewide public information and marketing campaign to convey the critical nature of Kentucky’s adult literacy challenge and to reach adults and employers with practical information about available education and training opportunities;
    4. Establish standards for adult literacy and monitor progress in achieving the state’s adult literacy goals, including existing standards that may have been developed to meet requirements of federal law in conjunction with the Collaborative Center for Literacy Development: Early Childhood through Adulthood; and
    5. Administer the adult education and literacy initiative fund created under KRS 151B.409 .
  2. The Office of Adult Education shall be organized in a manner as directed by the secretary of the Education and Workforce Development Cabinet. The office shall be headed by an executive director appointed by the secretary of the Education and Workforce Development Cabinet.
  3. The Office of Adult Education shall be the agency solely designated for the purpose of developing and approving state plans required by state or federal laws or regulations.

HISTORY: Enact. Acts 2006, ch. 211, § 98, effective July 12, 2006; repealed, reenact. and amend., Acts 2019, ch. 146, § 45, effective June 27, 2019.

151B.407. Foundation for Adult Education.

  1. There is hereby established a nonprofit foundation to be known as the “Foundation for Adult Education.” The purpose of the foundation shall be to supplement public funding for adult training in order to expand existing basic skills training programs.
  2. Funding for the foundation shall be obtained through contributions by the private sector. The foundation shall be empowered to solicit and accept funds from the private sector to be used for grants to local education agencies to fund adult basic education programs especially designed for business and industry. Contributors may specify that contributed funds be used to improve the educational level of their employees as it relates to the High School Equivalency Diploma program.
  3. The foundation shall be governed by a board of trustees to be appointed by the secretary of the Education and Workforce Development Cabinet with responsibility for adult education programs based on recommendations from business, industry, labor, education, and interested citizens. Staff for the board of trustees shall be provided by the cabinet.
  4. The foundation shall be attached to the office of the secretary of the Education and Workforce Development Cabinet for administrative purposes.

HISTORY: Enact. Acts 1986, ch. 209, § 1, effective July 15, 1986; repealed, reenact. and amend. Acts 1990, ch. 470, § 24, effective July 1, 1990; 1996, ch. 217, § 3, effective July 15, 1996; 2003, ch. 29, § 14, effective June 24, 2003; 2006, ch. 211, § 38, effective July 12, 2006; 2009, ch. 11, § 19, effective June 25, 2009; 2013, ch. 15, § 4, effective June 25, 2013; repealed, reenact. and amend., Acts 2013, ch. 59, § 34, effective June 25, 2013; 2017 ch. 63, § 20, effective June 29, 2017; repealed, reenact. and amend., Acts 2019, ch. 146, § 46, effective June 27, 2019.

151B.408. Adult education and literacy system — Services — Duties and responsibilities of the Office of Adult Education.

    1. The Office of Adult Education shall promulgate necessary administrative regulations and administer a statewide adult education and literacy system throughout the state. The adult education and literacy system shall include diverse educational services provided by credentialed professionals, based on the learners’ current needs and a commitment to lifelong learning. (1) (a) The Office of Adult Education shall promulgate necessary administrative regulations and administer a statewide adult education and literacy system throughout the state. The adult education and literacy system shall include diverse educational services provided by credentialed professionals, based on the learners’ current needs and a commitment to lifelong learning.
    2. Services shall be provided at multiple sites appropriate for adult learning, including vocational and technical colleges, community colleges, comprehensive universities, adult education centers, public schools, libraries, family resource centers, adult correctional facilities, other institutions, and through the Kentucky Commonwealth Virtual University. Services shall be targeted to communities with the greatest need based on the number of adults at literacy levels I and II as defined by the 1997 Kentucky Adult Literacy Survey and other indicators of need.
    3. Access and referral services shall be initiated at multiple points including businesses, educational institutions, labor organizations, employment offices, and government offices.
    4. Multiple funding sources, program support, and partnerships to administer the adult education and literacy system may include student scholarship and grants; fees for services rendered; and other general, agency, local, state, federal, and private funds.
  1. Services included as part of the adult education and literacy system shall include but not be limited to functionally-contexted workplace essential skills training based on employers’ needs, leading to a competency-based certificate indicating proficiency in critical thinking, computating, reading, writing, communicating, problemsolving, team-building, and use of technology at various worksites regarding basic skills.
  2. In administering an adult education and literacy system, the Office of Adult Education shall:
    1. Assist providers with the development of quality job-specific and workplace essential skills instruction for workers in business and industry, literacy and adult basic education, adult secondary education, including High School Equivalency Diploma program preparation, English as a second language, and family literacy programs, in cooperation with local business, labor, economic development, educational, employment, and service support entities;
    2. Provide assessments of each student’s skill and competency level allowing assessments to be shared with other educational and employment entities when necessary for providing additional educational programs, taking into consideration student confidentiality;
    3. Assist adult educators to meet professional standards;
    4. Create an awareness program in cooperation with the Administrative Office of the Courts to ensure that District and Circuit Court Judges are aware of the provisions of KRS 533.200 and the methods to access adult education and literacy programs for persons sentenced under the statute;
    5. Develop administrative regulations including those for business and industry service participation and mechanisms for service funding through all appropriate federal, state, local, and private resources;
    6. Require and monitor compliance with the program’s administrative regulations and policies; and
    7. Develop and implement performance measures and benchmarks.

HISTORY: Enact. Acts 1994, ch. 487, § 3, effective July 15, 1994; 1996, ch. 143, § 1, effective July 15, 1996; 1997 (1st Ex. Sess.), ch. 1, § 54, effective May 30, 1997; 2000, ch. 526, § 10, effective July 14, 2000; 2006, ch. 211, § 55, effective July 12, 2006; 2008, ch. 113, § 2, effective July 15, 2008; repealed and reenact., Acts 2013, ch. 59, § 35, effective June 25, 2013; 2017 ch. 63, § 21, effective June 29, 2017; repealed, reenact. and amend., Acts 2019, ch. 146, § 47, effective June 27, 2019.

151B.409. Adult education and literacy initiative fund.

  1. There is created in the Education and Workforce Development Cabinet a special fund to be known as the adult education and literacy initiative fund, which shall consist of moneys appropriated by the General Assembly, gifts, grants, other sources of funding, public and private, and interest accrued by the fund. This fund shall not lapse at the end of a fiscal year but shall be carried forward to be used only for the purposes specified in this section. Moneys accumulated in this fund on June 27, 2019, shall remain in the fund and be transferred to the Education and Workforce Development Cabinet to be used for purposes stated in this section.
  2. The purpose of the adult education and literacy initiative fund shall be to support strategies for adult education, to provide statewide initiatives for excellence, and to provide funds for research and development activities.
  3. The cabinet shall establish the guidelines for the use, distribution, and administration of the fund, financial incentives, technical assistance, and other support for strategic planning; and guidelines for fiscal agents to assess county and area needs and to develop strategies to meet those needs.
  4. The fund shall include the following strategies:
    1. Statewide initiatives. Funds shall be used to encourage collaboration with other organizations, stimulate development of models of adult education programs that may be replicated elsewhere in the state, provide incentives for adults, employers, and providers to encourage adults to establish and accomplish learning contracts, provide incentives to encourage participation in adult education, assist providers of county and area programs in areas of highest need, and for other initiatives of regional or statewide significance as determined by the cabinet. The Collaborative Center for Literacy Development: Early Childhood through Adulthood created under KRS 164.0207 shall evaluate the reading and literacy components of model programs funded under this paragraph.
    2. Research and demonstration. The funds shall be used to develop:
      1. Standards for the preparation, professional development, and support for adult educators with the advice of the Office of Adult Education and as compatible with funds provided under Title II of the Federal Workforce Investment Act;
      2. A statewide competency-based certification for transferable skills in the workplace; and
      3. A statewide public information and marketing campaign.

HISTORY: Repealed and reenact., Acts 2000, ch. 526, § 7, effective July 14, 2000; 2006, ch. 211, § 104, effective July 12, 2006; repealed, reenact. and amend., Acts 2019, ch. 146, § 49, effective June 27, 2019.

151B.410. Adult education learning system — Services — Duties and responsibilities of the Kentucky Adult Education Program. [Repealed and reenacted.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 487, § 3, effective July 15, 1994; 1996, ch. 143, § 1, effective July 15, 1996; 1997 (1st Ex. Sess.), ch. 1, § 54, effective May 30, 1997; 2000, ch. 526, § 10, effective July 14, 2000; 2006, ch. 211, § 55, effective July 12, 2006; 2008, ch. 113, § 2, effective July 15, 2008) was repealed and reenacted as KRS 164.0234 by Acts 2013, ch. 59, § 35, effective June 25, 2013.

Kentucky Assistive Technology Loan Corporation

151B.450. Definitions for KRS 151B.450 to 151B.475.

As used in KRS 151B.450 to 151B.475 , unless the context requires otherwise:

  1. “Assistive technology” means any item, piece of equipment, or device that enables an individual with a disability to improve his or her independence and quality of life;
  2. “Board” means the board of directors of the Kentucky Assistive Technology Loan Corporation;
  3. “Cabinet” means the Education and Workforce Development Cabinet;
  4. “Corporation” means the Kentucky Assistive Technology Loan Corporation created under KRS 151B.455 ;
  5. “Fund” means the Kentucky assistive technology loan fund created under KRS 151B.470 ;
  6. “Qualified borrower” means an individual with a disability that affects a major life activity such as mobility, sensory and cognitive communications, or self-care, a parent or legal guardian of an individual with a disability, or a nonprofit organization that provides assistive technology to individuals with disabilities who meet the criteria for participating in the Kentucky assistive technology loan fund; and
  7. “Qualified lender” means a financial lending institution or other qualified organization contracted with by the corporation to provide loans for the purchase of assistive technology.

History. Enact. Acts 1996, ch. 222, § 1, effective July 15, 1996; 2006, ch. 211, § 56, effective July 12, 2006; 2009, ch. 11, § 27, effective June 25, 2009.

151B.455. Kentucky Assistive Technology Loan Corporation — Board of directors — Qualifications — Appointment — Terms — Vacancy — Removal.

  1. The Kentucky Assistive Technology Loan Corporation is created and established as an independent de jure municipal corporation and political subdivision of the Commonwealth of Kentucky to perform essential governmental and public functions for the purpose of improving the quality of life for disabled persons who are residents of the Commonwealth of Kentucky by providing the ability to obtain low-interest loans to qualified borrowers for the acquisition of assistive technology.
  2. The corporation shall be governed by a board of directors consisting of seven (7) members as follows:
    1. The secretary of the Education and Workforce Development Cabinet or the secretary’s designated representative;
    2. One (1) attorney with lending expertise;
    3. One (1) representative of a financial lending institution; and
    4. Four (4) public members with a knowledge of assistive technology representing a range of disabilities.
  3. All board members shall be residents of the Commonwealth of Kentucky and all, with the exception of the secretary or the secretary’s designee, shall be appointed by the Governor. Each public member shall be an individual with a disability, a parent of an individual with a disability, or a legal representative of an individual with a disability. In making appointments the Governor shall seek recommendations from disability-related associations and organizations representing the categories of disabilities for which appointments are being made.
  4. For initial appointments to the board, two (2) public members shall be appointed for terms of four (4) years each, two (2) public members for terms of three (3) years each, the attorney member for a term of two (2) years, and the member representing a financial lending institution for a term of one (1) year. All succeeding terms shall be for a period of four (4) years each, and each appointee shall serve for the appointed term and until a successor has been appointed and has duly qualified. No person shall serve more than two (2) successive full terms.
  5. If a vacancy on the board occurs, the Governor shall appoint a replacement who shall hold office during the remainder of the term vacated.
  6. The Governor may remove any board member in case of incompetency, neglect of duties, gross immorality, or malfeasance in office, and may upon removal declare the position vacant and appoint a person to fill the vacancy as provided in other cases of vacancy. If a board member is so removed, he or she may appeal. Upon appeal an administrative hearing shall be conducted in accordance with KRS Chapter 13B.

History. Enact. Acts 1996, ch. 222, § 2, effective July 15, 1996; 2006, ch. 211, § 57, effective July 12, 2006; 2009, ch. 11, § 28, effective June 25, 2009.

151B.460. Organization of board — Quorum — Meetings — Compensation — Disclosure of interest — Staff and administrative assistance — Records.

  1. At the first board meeting following initial appointment of all board members, the board shall elect a chair from its membership, and a chair shall be elected annually thereafter.
  2. A majority of the board of directors of the corporation shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, notwithstanding the existence of any vacancies on the board of directors.
  3. The board of directors shall meet at least once a quarter, and may meet at other times upon call of the chair or at the request of a majority of board members, and with a minimum of seven (7) days’ notice.
  4. Board members shall receive no compensation for their services but may be entitled to payment of any reasonable and necessary expense actually incurred in discharging their duties under KRS 151B.450 to 151B.475 , subject to the availability of funding.
  5. If any board member has a direct or indirect interest in any qualified lender or any organization serving as a qualified borrower, the interest shall be disclosed and set forth in the minutes of the board, and the board member having the interest shall not participate in any action involving the organization in which he or she has the interest.
  6. The Education and Workforce Development Cabinet shall provide technical, clerical, and administrative assistance to the board, together with necessary office space and personnel, and shall provide any other services and support necessary for the board to perform its functions. The cabinet shall keep a record of the proceedings of the board and shall be custodian of all books, documents, and papers which constitute the official records of the corporation. The board may enter into a contract with the cabinet as may be proper and appropriate for the provision of these services.

History. Enact. Acts 1996, ch. 222, § 3, effective July 15, 1996; 2006, ch. 211, § 58, effective July 12, 2006; 2009, ch. 11, § 29, effective June 25, 2009.

151B.465. Powers and duties.

All powers, duties, and responsibilities conferred upon the corporation by KRS 151B.450 to 151B.475 shall be exercised by the board of directors of the corporation. They shall include, but shall not be limited to, the following:

  1. To establish and administer a program for providing low-interest loans to qualified borrowers through qualified lenders for the acquisition of assistive technology.
  2. To establish criteria for participation in the loan program as a qualified lender or qualified borrower and to establish the terms and conditions under which loans are to be made. The board shall contract with one (1) or more federal-approved or state-approved lending institutions for the purpose of making loans to qualified borrowers, the qualified borrower having been preapproved by the board consistent with criteria established by the board and promulgated in administrative regulations.
  3. To enter into agreements, contracts, or other documents with any federal, state, or local agency or any person, corporation, association, partnership, or other organization or entity necessary to accomplish the purposes of KRS 151B.450 to 151B.475 .
  4. To accept for inclusion in the fund appropriations, grants, revenue sharing, devises, gifts, bequests, donations, federal grants, and any other aid from any source whatsoever and to agree to, and to comply with, conditions incident thereto.
  5. To incorporate a nonprofit organization pursuant to KRS Chapter 273 which qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, for the purpose of receiving tax-deductible gifts, donations, and bequests.
  6. To invest moneys from the fund with qualified lenders for the purposes of providing interest reductions, interest buy downs, and loan guarantees.
  7. To sue and be sued in its own name.
  8. To adopt an official seal and alter it as necessary.
  9. To promulgate administrative regulations through the cabinet and pursuant to KRS Chapter 13A to establish the policies and procedures under which the powers, duties, and responsibilities conferred by KRS 151B.450 to 151B.475 are to be carried out.

History. Enact. Acts 1996, ch. 222, § 4, effective July 15, 1996.

Compiler’s Notes.

Section 501(c)(3) of the Internal Revenue Code referenced herein is compiled as 26 USCS § 501(c)(3).

151B.470. Assistive technology loan fund established — Use — Administration.

  1. There is established in the State Treasury a permanent and perpetual fund to be known as the assistive technology loan fund, consisting of moneys that may be appropriated by the General Assembly, gifts, bequests, endowments, or grants from the United States government, its agencies and instrumentalities, and any other available sources of funds, public and private. Any fund balance at the close of a fiscal year shall not lapse but shall be carried forward to the next fiscal year, and moneys in the fund shall be continuously appropriated only for the purposes specified in this section. Interest and income earned from the investment of funds shall remain in the fund and be credited to it.
  2. The fund shall be used to provide loans to qualified borrowers within the Commonwealth for the purpose of acquiring assistive technology designed to help individuals with disabilities become more independent. Loans shall be made to qualified borrowers through qualified lenders with the fund being used as appropriate to negotiate reduced interest rates, to buy down interest rates, and to provide loan guarantees.
  3. The fund shall be under the administrative control of the board.
  4. If the corporation is dissolved, any unencumbered moneys appropriated by the General Assembly remaining in the fund shall revert to the general fund, and any other unencumbered moneys shall be transferred to the Education and Workforce Development Cabinet to be expended for programs and services for Kentuckians with disabilities.

History. Enact. Acts 1996, ch. 222, § 5, effective July 15, 1996; 2006, ch. 211, § 59, effective July 12, 2006; 2009, ch. 11, § 30, effective June 25, 2009.

151B.475. Annual report — Biennial audit.

The board shall, promptly following the close of each fiscal year, submit an annual report of its activities for the preceding fiscal year to the Governor and the Legislative Research Commission. Each report shall set forth a complete operating and financial statement of the corporation during the year. The board shall be subject to a biennial audit to be made by the Auditor of Public Accounts at his discretion, or by a resident independent certified public accountant of the books, accounts, and records of the corporation, with respect to its receipts, disbursements, contracts, loans, and all other matters relating to its financial operations. The persons performing this audit shall furnish copies of the audit report to the secretary of the Finance and Administration Cabinet and the Legislative Research Commission, where they shall be placed on file and made available for inspection by the general public.

History. Enact. Acts 1996, ch. 222, § 6, effective July 15, 1996.

CHAPTER 152 Energy Development

General Provisions

152.010. Definitions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 2; 1962, ch. 106, Art. VI, § 1; 1966, ch. 255, § 145; 1982, ch. 396, § 24, effective July 15, 1982; 1988, ch. 205, § 4, effective July 15, 1988; 1990, ch. 484, § 2, effective July 13, 1990) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

152.020. Department for Existing Business and Industry — Divisions — Business Information Clearinghouse. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 3; 1962, ch. 106, Art. VI, § 2; 1970, ch. 111, § 1; 1976, ch. 299, § 28; 1976, ch. 312, § 1; 1978, ch. 94, § 1, effective March 28, 1978; 1978, ch. 155, §§ 41, 76, effective June 17, 1978; 1978, ch. 384, § 566, effective June 17, 1978; 1980, ch. 295, § 25, effective July 15, 1980; 1982, ch. 212, § 6, effective July 15, 1982; 1982, ch. 396, § 25, effective July 15, 1982; 1984, ch. 296, § 1, effective July 13, 1984; 1984, ch. 404, § 13, effective July 13, 1984; 1986, ch. 94, § 1, effective July 15, 1986; 1988, ch. 205, § 5, effective July 15, 1988; 1990, ch. 484, § 3, effective July 13, 1990) was repealed, reenacted, and amended as KRS 154.12-209 by Acts 1992, ch. 105, § 31, effective July 14, 1992, and subsequently repealed by Acts 1994, ch. 409, § 28, effective July 15, 1994.

152.025. Office of Business and Technology — Office of Industrial Development. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1986, ch. 60, § 2, effective July 15, 1986; 1988, ch. 205, § 6, effective July 15, 1988; 1990, ch. 484, § 4, effective July 13, 1990) was repealed, reenacted, and amended as KRS 154.12-201 by Acts 1992, ch. 105, § 32, effective July 14, 1992, and subsequently repealed by Acts 1994, ch. 409, § 28, effective July 15, 1994.

152.030. Agricultural Development Board created — Duties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 3) was repealed by Acts 1962, ch. 106, Art. VI, § 6.

152.040. Industrial Development Board created — Duties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 5) was repealed by Acts 1962, ch. 106, Art. VI, § 6.

152.045. Kentucky Recycling Brokerage Authority — Powers — Duties — Brokerage fee — Reports. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1991 (1st Ex. Sess.), ch. 12, § 13, effective February 26, 1991) was renumbered as 154.12-202 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.050. Economic development commission — Membership — Function — Executive director. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 6; 1962, ch. 106, Art. VI, § 3; 1976, ch. 299, § 29; 1980, ch. 141, § 4, effective July 15, 1980; 1980, ch. 295, § 26, effective July 15, 1980) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

152.052. Economic development bonds. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 145, § 2, effective July 15, 1988; 1990, ch. 195, § 1, effective July 13, 1990; 1990, ch. 267, § 1, effective July 13, 1990; 1991 (Ex. Sess.), ch. 12, § 51, effective February 26, 1991) was repealed, reenacted, and amended as KRS 154.12-100 by Acts 1992, ch. 105, § 29, effective July 14, 1992.

152.055. Administration and coordination of development programs by Department for Local Government.

The Department for Local Government shall have responsibility for the administration and coordination of Appalachian regional development programs and economic development administration programs.

History. Enact. Acts 1974, ch. 74, Art. VII, § 6; 1980, ch. 295, § 27, effective July 15, 1980; 1998, ch. 69, § 62, effective July 15, 1998; 2007, ch. 47, § 77, effective June 26, 2007; 2010, ch. 117, § 74, effective July 15, 2010.

Opinions of Attorney General.

The secretary of the development cabinet, pursuant to this section, is responsible for administering and approving Appalachian development programs in this state in which the Central Appalachian Land Bank may be involved; such duties would not involve a conflict of interest if the secretary also served as a member of the board of directors of the land bank. OAG 79-637 .

152.060. Duties of department. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 7; 1962, ch. 106, Art. VI, § 4; 1970, ch. 111, § 2; 1976, ch. 312, § 2; 1978, ch. 94, § 2, effective March 28, 1978; 1978, ch. 155, § 77, effective June 17, 1978; 1980, ch. 295, § 28, effective July 15, 1980) was repealed, reenacted, and amended as KRS 154.12-210 by Acts 1992, ch. 105, § 33, effective July 14, 1992.

152.070. Department to prepare and publish maps, surveys, directories, and studies. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 4; 1970, ch. 111, § 3, 1976, ch. 312, § 3) was repealed, reenacted, and amended as 154.12-211 by Acts 1992, ch. 105, § 34, effective July 14, 1992.

152.075. Energy resource information. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Repealed, reenacted, and amended 1990, ch. 325, § 17, effective July 13, 1990) was repealed, reenacted, and amended as KRS 154.12-212 by Acts 1992, ch. 105, § 35, effective July 14, 1992.

152.080. Department authorization for consultation with governmental agencies, studies and projections, development offices, and promotional advertising. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 9; 1970, ch. 111, § 4; 1976, ch. 312, § 4) was repealed, reenacted, and amended as KRS 154.12-213 by Acts 1992, ch. 105, § 69, effective July 14, 1992.

Kentucky Energy Council

152.090. Membership — Responsibilities and functions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 74, Art. VIII, E, § 1) was repealed by Acts 1976, ch. 299, § 91.

Nuclear Energy

152.105. Declaration of policy. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 146, § 1, effective June 19, 1958) was repealed by Acts 1976, ch. 299, § 91, effective June 19, 1976.

152.110. Definitions for KRS 152.105 to 152.190. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 146, § 2; 1960, ch. 115, § 1) was repealed by Acts 1978, ch. 384, § 584, effective June 17, 1978.

152.115. Governor’s power to make agreements with federal agencies. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 115, § 4, effective March 25, 1960) was repealed by Acts 1978, ch. 384, § 584, effective June 17, 1978.

152.120. Participating agencies — Studies and regulations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 146, § 3) was repealed by Acts 1978, ch. 384, § 584, effective June 17, 1978.

152.125. Licenses to handle radioactive material. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 115, § 6, effective March 25, 1960; 1972, ch. 246, § 1) was repealed by Acts 1978, ch. 384, § 584, effective June 17, 1978.

152.130. Rules and regulations to be approved by the Governor — Delegation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 146, § 4; 1960, ch. 115, § 2; 1966, ch. 220, § 1) was repealed by Acts 1978, ch. 384, § 584, effective June 17, 1978.

152.140. Kentucky science and technology advisory council — Members — Qualifications — Officers — Compensation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 146, § 5; 1960, ch. 115, § 3; 1966, ch. 220, § 2) was repealed by Acts 1978, ch. 384, § 584, effective June 17, 1978.

152.150. Functions of council. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 146, § 6; 1966, ch. 220, § 3) was repealed by Acts 1978, ch. 384, § 584, effective June 17, 1978.

152.160. Division of nuclear information. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 146, § 7) was repealed by Acts 1966, ch. 220, § 15.

152.170. General regulations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 146, § 8; 1966, ch. 220, § 4) was repealed by Acts 1978, ch. 384, § 584, effective June 17, 1978.

152.180. Federal licenses or permits. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 146, § 9, effective June 19, 1958) was repealed by Acts 1978, ch. 384, § 584, effective June 17, 1978.

152.190. Penalties and injunctions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 146, § 10; 1960, ch. 115, § 5, effective March 25, 1960) was repealed by Acts 1976, ch. 299, § 91, effective June 19, 1976.

Southern Interstate Nuclear Compact

152.200. Definitions for KRS 152.200 to 152.250.

As used in KRS 152.200 to 152.250 , unless the context requires otherwise:

  1. “Compact” means the Southern Interstate Nuclear Compact;
  2. “Board” means the Southern Interstate Nuclear Board.

History. Enact. Acts 1960, ch. 113, § 1, effective June 16, 1960.

Compiler’s Notes.

This version of KRS 152.200 and the version of KRS 152.210 directly following this section (the Southern Interstate Nuclear Compact) are effective until the other versions of these sections (included in the Southern States Energy Compact), also numbered KRS 152.200 and 152.210 , take effect, which will occur when all the parties to the compact approve the changes and the Congress of the United States consents. Although all party states have approved the changes in the compact, U.S. congressional consent is still pending.

152.210. Southern Interstate Nuclear Compact — Kentucky as party — Substance.

The Southern Interstate Nuclear Compact is enacted into law and entered into by the Commonwealth of Kentucky as a party, and is of full force and effect between the Commonwealth and any other states joining therein in accordance with the terms of the compact. The compact is substantially as follows:

History. Enact. Acts 1960, ch. 113, § 2.

ARTICLE I. POLICY AND PURPOSE.

The party states recognize that the proper employment of nuclear energy, facilities, materials, and products can assist substantially in the industrialization of the south and the development of a balanced economy for the region. They also recognize that optimum benefit from the acquisition of nuclear resources and facilities requires systematic encouragement, guidance, and assistance from the party states on a cooperative basis. It is the policy of the party states to undertake such cooperation on a continuing basis; it is the purpose of this compact to provide the instruments and framework for such a cooperative effort to improve the economy of the south and contribute to the individual and community well being of the region’s people.

ARTICLE II. THE BOARD.

  1. There is hereby created an agency of the party states to be known as the “Southern Interstate Nuclear Board” (hereinafter called the board). The board shall be composed of one member from each party state designated or appointed in accordance with the law of the state which he represents and serving and subject to removal in accordance with such law. Any member of the board may provide for the discharge of his duties and the performance of his functions thereon (either for the duration of his membership or for any lesser period of time) by a deputy or assistant, if the laws of his state make specific provision therefor. The federal government may be represented without vote if provision is made by federal law for such representation.
  2. The board members of the party states shall each be entitled to one vote on the board. No action of the board shall be binding unless taken at a meeting at which a majority of all members representing the party states are present and unless a majority of the total number of votes on the board are cast in favor thereof.
  3. The board shall have a seal.
  4. The board shall elect annually, from among its members, a chairman, a vice chairman, and a treasurer. The board shall appoint an executive director who shall serve at its pleasure and who shall also act as secretary, and who, together with the treasurer, shall be bonded in such amounts as the board may require.
  5. The executive director, with the approval of the board, shall appoint and remove or discharge such personnel as may be necessary for the performance of the board’s functions irrespective of the civil service, personnel or other merit system laws of any of the party states.
  6. The board may establish and maintain, independently or in conjunction with any one or more of the party states, a suitable retirement system for its full-time employees. Employees of the board shall be eligible for social security coverage in respect of old age and survivors insurance provided that the board takes such steps as may be necessary pursuant to federal law to participate in such program of insurance as a governmental agency or unit. The board may establish and maintain or participate in such additional programs of employee benefits as may be appropriate.
  7. The board may borrow, accept, or contract for the services of personnel from any state or the United States or any subdivision or agency thereof, from any interstate agency, or from any institution, person, firm or corporation.
  8. The board may accept for any of its purposes and functions under this compact any and all donations, and grants of money, equipment, supplies, materials, and services (conditional or otherwise) from any state or the United States or any subdivision or agency thereof, or interstate agency, or from any institution, person, firm or corporation, and may receive, utilize and dispose of the same.
  9. The board may establish and maintain such facilities as may be necessary for the transacting of its business. The board may acquire, hold, and convey real and personal property and any interest therein.
  10. The board shall adopt bylaws, rules, and regulations for the conduct of its business, and shall have the power to amend and rescind these bylaws, rules and regulations. The board shall publish its bylaws, rules and regulations in convenient form and shall file a copy thereof, and shall also file a copy of any amendment thereto, with the appropriate agency or officer in each of the party states.
  11. The board annually shall make to the governor and legislature of each party state, a report covering the activities of the board for the preceding year, and embodying such recommendations as may have been adopted by the board. The board may issue such additional reports as it may deem desirable.

ARTICLE III. FINANCES.

  1. The board shall submit to the executive head or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that jurisdiction for presentation to the legislature thereof.
  2. Each of the board’s budgets of estimated expenditures shall contain specific recommendations of the amount or amounts to be appropriated by each of the party states. One-half of the total amount of each budget of estimated expenditures shall be apportioned among the party states in equal shares; one-quarter of each such budget shall be apportioned among the party states in accordance with the ratio of their populations to the total population of the entire group of party states based on the last decennial federal census; and one-quarter of each such budget shall be apportioned among the party states on the basis of the relative average per capita income of the inhabitants in each of the party states based on the latest computations published by the federal census-taking agency. Subject to appropriation by their respective legislatures, the board shall be provided with such funds by each of the party states as are necessary to provide the means of establishing and maintaining facilities, a staff of personnel, and such activities as may be necessary to fulfill the powers and duties imposed upon and entrusted to the board.
  3. The board may meet any of its obligations in whole or in part with funds available to it under Article II(h) of this compact, provided that the board takes specific action setting aside such funds prior to the incurring of any obligation to be met in whole or in part in this manner. Except where the board makes use of funds available to it under Article II(h) hereof, the board shall not incur any obligation prior to the allotment of funds by the party jurisdictions adequate to meet the same.
  4. Any expenses and any other costs for each member of the board in attending board meetings shall be met by the board.
  5. The board shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the board shall be subject to the audit and accounting procedures established under its bylaws. However, all receipts and disbursements of funds handled by the board shall be audited yearly by a qualified public accountant and the report of the audit shall be included in and become part of the annual report of the board.
  6. The accounts of the board shall be open at any reasonable time for inspection.

ARTICLE IV. ADVISORY COMMITTEES.

The board may establish such advisory and technical committees as it may deem necessary, membership on which to include but not to be limited to private citizens, expert and lay personnel, representatives of industry, labor, commerce, agriculture, civic associations, medicine, education, voluntary health agencies, and officials of local, state and federal government, and may cooperate with and use the services of any such committees and the organizations which they represent in furthering any of its activities under this compact.

ARTICLE V. POWERS.

The board shall have power to:

  1. Ascertain and analyze on a continuing basis the position of the south with respect to nuclear and related industries.
  2. Encourage the development and use of nuclear energy facilities, installations, and products as part of a balanced economy.
  3. Collect, correlate and disseminate information relating to civilian uses of nuclear energy, materials and products.
  4. Conduct, or cooperate in conducting, programs of training for state and local personnel engaged in any aspects of:
  1. Nuclear industry, medicine, or education or the promotion or regulation thereof.
  2. The formulation or administration of measures designed to promote safety in any matter related to the development, use or disposal of nuclear energy, materials, products, installations, or wastes.
  3. Organize and conduct, or assist and cooperate in organizing and conducting, demonstrations of nuclear product, material, or equipment use and disposal and of proper techniques or processes for the application of nuclear resources to the civilian economy or general welfare.

    (f) Undertake such nonregulatory functions with respect to nonnuclear sources of radiation as may promote the economic development and general welfare of the region.

    (g) Study industrial, health, safety, and other standards, laws, codes, rules, regulations, and administrative practices in or related to nuclear fields.

    (h) Recommend such changes in, or amendments or additions to the laws, codes, rules, regulations, administrative procedures and practices or ordinances of the party states in any of the fields of its interest and competence as in its judgment may be appropriate. Any such recommendation shall be made through the appropriate state agency with due consideration of the desirability of uniformity but shall also give appropriate weight to any special circumstances which may justify variations to meet local conditions.

    (i) Prepare, publish and distribute, (with or without charge) such reports, bulletins, newsletters or other material as it deems appropriate.

    (j) Cooperate with the Atomic Energy Commission or any agency successor thereto, any other officer or agency of the United States, and any other governmental unit or agency or officer thereof, and with any private persons or agencies in any of the fields of its interests.

    (k) Act as licensee of the United States government or any party state with respect to the conduct of any research activity requiring such license and operate such research facility or undertake any program pursuant thereto.

    (l) Ascertain from time to time such methods, practices, circumstances, and conditions as may bring about the prevention and control of nuclear incidents in the area comprising the party states, to coordinate the nuclear incident prevention and control plans and the work relating thereto of the appropriate agencies of the party states and to facilitate the rendering of aid by the party states to each other in coping with nuclear incidents. The board may formulate and, in accordance with need from time to time, revise a regional plan or regional plans for coping with nuclear incidents within the territory of the party states as a whole or within any subregion or subregions of the geographic area covered by this compact.

ARTICLE VI. SUPPLEMENTARY AGREEMENTS.

  1. To the extent that the board has not undertaken an activity or project which would be within its power under the provisions of Article V of this compact, any two or more of the party states (acting by their duly constituted administrative officials) may enter into supplementary agreements for the undertaking and continuance of such an activity or project. Any such agreement shall specify its purpose or purposes; its duration and the procedure for termination thereof or withdrawal therefrom; the method of financing and allocating the costs of the activity or project; and such other matters as may be necessary or appropriate. No such supplementary agreement entered into pursuant to this article shall become effective prior to its submission to and approval by the board. The board shall give such approval unless it finds that the supplementary agreement or the activity or project contemplated thereby is inconsistent with the provisions of this compact or a program or activity conducted by or participated in by the board.
  2. Unless all of the party states participate in a supplementary agreement, any cost or costs thereof shall be borne separately by the states party thereto. However, the board may administer or otherwise assist in the operation of any supplementary agreement.
  3. No party to a supplementary agreement entered into pursuant to this article shall be relieved thereby of any obligation or duty assumed by said party state under or pursuant to this compact, except that timely and proper performance of such obligation or duty by means of the supplementary agreement may be offered as performance pursuant to the compact.

ARTICLE VII. OTHER LAWS AND RELATIONSHIPS.

Nothing in this compact shall be construed to:

  1. Permit or require any person or other entity to avoid or refuse compliance with any law, rule, regulation, order or ordinance of a party state or subdivision thereof now or hereafter made, enacted or in force.
  2. Limit, diminish, or otherwise impair jurisdiction exercised by the Atomic Energy Commission, any agency successor thereto, or any other federal department, agency or officer pursuant to and in conformity with any valid and operative Act of Congress.
  3. Alter the relations between the respective internal responsibilities of the government of a party state and its subdivisions.
  4. Permit or authorize the board to exercise any regulatory authority or to own or operate any nuclear reactor for the generation of electric energy; nor shall the board own or operate any facility or installation for industrial or commercial purposes.

ARTICLE VIII. ELIGIBLE PARTIES, ENTRY INTO FORCE AND WITHDRAWAL.

  1. Any or all of the states of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia shall be eligible to become party to this compact.
  2. As to any eligible party state, this compact shall become effective when adopted into law as provided by the law of the various party states; provided that it shall not become initially effective until enacted into law by seven states.
  3. Any party state may withdraw from this compact by enacting a statute repealing the same, but no such withdrawal shall become effective until the governor of the withdrawing state shall have sent formal notice in writing to the governor of each other party state informing said governors of the action of the legislature in repealing the compact and declaring an intention to withdraw.

ARTICLE IX. SEVERABILITY AND CONSTRUCTION.

The provisions of this compact and of any supplementary agreement entered into hereunder shall be severable and if any phrase, clause, sentence or provision of this compact or such supplementary agreement is declared to be contrary to the constitution of any participating state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact or such supplementary agreement and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this compact or any supplementary agreement entered into hereunder shall be held contrary to the constitution of any state participating therein, the compact or such supplementary agreement shall remain in full force and effect as to the remaining states and in full force and effect as to the state affected as to all severable matters. The provisions of this compact and of any supplementary agreement entered into pursuant hereto shall be liberally construed to effectuate the purposes thereof.

Compiler’s Notes.

This version of KRS 152.210 and the version of KRS 152.200 directly preceding this section, are effective until the other versions of these sections (included in the Southern States Energy Compact), also numbered KRS 152.200 and 152.210 , take effect, which will occur when all the parties to the compact approve the changes and the Congress of the United States consents. Although all party states have approved the changes in the compact, U.S. congressional consent is still pending.

152.220. Kentucky member — Chairman, Kentucky science and technology advisory council — Alternate. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 113, § 3; 1966, ch. 220, § 5) was repealed by Acts 1976, ch. 299, § 91.

152.230. Employees participation in retirement system.

Any employee or group of employees designated by the board shall be considered a state department for the purposes of participation in the Kentucky Employees Retirement System when approved by the secretary of the Finance and Administration Cabinet.

History. Enact. Acts 1960, ch. 113, § 4, effective June 16, 1960.

Research References and Practice Aids

Cross-References.

Employees’ Retirement System, KRS 61.510 to 61.705 .

152.240. Supplementary agreement — Appropriation requirement.

Any supplementary agreement entered into under Article VI of the compact, requiring the expenditure of funds shall not become effective as to the Commonwealth until the required funds are appropriated by the General Assembly.

History. Enact. Acts 1960, ch. 113, § 5, effective June 16, 1960.

152.250. Cooperation of state departments with board.

The departments, boards, agencies, commissions, officers and employees of the Commonwealth and its subdivisions are authorized to cooperate with the board in the furtherance of any of its activities pursuant to this compact.

History. Enact. Acts 1960, ch. 113, § 6, effective June 16, 1960.

Southern States Energy Compact [Effective Upon Contingency]

152.200. Definitions for KRS 152.200 to 152.250. [Effective upon contingency - See compiler’s note.]

As used in KRS 152.200 to 152.250 , unless the context requires otherwise:

  1. “Compact” means the Southern States Energy Compact;
  2. “Board” means the Southern States Energy Board.

History. Enact. Acts 1960, ch. 113, § 1, effective June 16, 1960; 1982, ch. 76, § 1.

Compiler’s Notes.

Section 4 of Acts 1982, ch. 76 read: “This Act shall become effective at such time as all party states to the Southern Interstate Nuclear Compact approve changes in the compact which are substantially the same as those of this Act, and the Congress of the United States consents to the compact, substantially as amended in this Act.” Although all party states have approved the changes in the compact, U.S. congressional consent is still pending.

152.210. Southern States Energy Compact. [Effective upon contingency — See compiler’s note.]

The Southern States Energy Compact is enacted into law and entered into by the Commonwealth of Kentucky as a party, and is of full force and effect between the Commonwealth and any other states joining therein in accordance with the terms of the compact. The compact is substantially as follows:

History. Enact. Acts 1960, ch. 113, § 2; 1982, ch. 76, § 2.

ARTICLE I. POLICY AND PURPOSE.

The party states recognize that the proper employment and conservation of energy and employment of energy-related facilities, materials, and products, within the context of a responsible regard for the environment, can assist substantially in the industrialization of the south and the development of a balanced economy for the region. They also recognize that optimum benefit from the acquisition of energy resources and facilities require systematic encouragement, guidance, and assistance from the party states on a cooperative basis. It is the policy of the party states to undertake such cooperation on a continuing basis; it is the purpose of this compact to provide the instruments and framework for such a cooperative effort to improve the economy of the south and contribute to the individual and community well being of the region’s people.

ARTICLE II. THE BOARD.

  1. There is hereby created an agency of the party states to be known as the “Southern States Energy Board” (hereinafter called the board). The board shall be composed of three (3) members from each party state, one (1) of whom shall be appointed or designated in each state to represent the governor, the state senate, and the state house of representatives, respectively. Each member shall be designated or appointed in accordance with the law of the state which he represents and serving and subject to removal in accordance with such law. Members from the Commonwealth of Kentucky shall be appointed pursuant to KRS 152.212 . Any member of the board may provide for the discharge of his duties and the performance of his functions thereon (either for the duration of his membership or for any lesser period of time) by a deputy or assistant, if the laws of his state make specific provision therefor. The federal government may be represented without vote if provision is made by federal law for such representation.
  2. Each party state shall be entitled to one vote on the board, to be determined by majority vote of each member or member’s representative from the party state present and voting on any question. No action of the board shall be binding unless taken at a meeting at which a majority of all party states are represented and unless a majority of the total number of votes on the board are cast in favor thereof.
  3. The board shall have a seal.
  4. The board shall elect annually, from among its members, a chairman, a vice chairman, and a treasurer. The board shall appoint an executive director who shall serve at its pleasure and who shall also act as secretary, and who, together with the treasurer, shall be bonded in such amounts as the board may require.
  5. The executive director, with the approval of the board, shall appoint and remove or discharge such personnel as may be necessary for the performance of the board’s functions irrespective of the civil service, personnel or other merit system laws of any of the party states.
  6. The board may establish and maintain, independently or in conjunction with any one or more of the party states, a suitable retirement system for its full-time employees. Employees of the board shall be eligible for social security coverage in respect of old age and survivors insurance provided that the board takes such steps as may be necessary pursuant to federal law to participate in such program of insurance as a governmental agency or unit. The board may establish and maintain or participate in such additional programs of employee benefits as may be appropriate.
  7. The board may borrow, accept, or contract for the services of personnel from any state or the United States or any subdivision or agency thereof, from any interstate agency, or from any institution, person, firm or corporation.
  8. The board may accept for any of its purposes and functions under this compact any and all donations, and grants of money, equipment, supplies, materials, and services (conditional or otherwise) from any state or the United States or any subdivision or agency thereof, or interstate agency, or from any institution, person, firm or corporation, and may receive, utilize and dispose of the same.
  9. The board may establish and maintain such facilities as may be necessary for the transacting of its business. The board may acquire, hold, and convey real and personal property and any interest therein.
  10. The board shall adopt bylaws, rules, and regulations for the conduct of its business, and shall have the power to amend and rescind these bylaws, rules and regulations. The board shall publish its bylaws, rules and regulations in convenient form and shall file a copy thereof, and shall also file a copy of any amendment thereto, with the appropriate agency or officer in each of the party states.
  11. The board annually shall make to the governor and legislature of each party state a report covering the activities of the board for the preceding year, and embodying such recommendations as may have been adopted by the board. The board may issue such additional reports as it may deem desirable.

ARTICLE III. FINANCES.

  1. The board shall submit to the executive head or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that jurisdiction for presentation to the legislature thereof.
  2. Each of the board’s budgets of estimated expenditures shall contain specific recommendations of the amount or amounts to be appropriated by each of the party states. One-half of the total amount of each budget of estimated expenditures shall be apportioned among the party states in equal shares; one-quarter of each such budget shall be apportioned among the party states in accordance with the ratio of their populations to the total population of the entire group of party states based on the last decennial federal census; and one-quarter of each such budget shall be apportioned among the party states on the basis of the relative average per capita income of the inhabitants in each of the party states based on the latest computations published by the federal census-taking agency. Subject to appropriation by their respective legislatures, the board shall be provided with such funds by each of the party states as are necessary to provide the means of establishing and maintaining facilities, a staff of personnel, and such activities as may be necessary to fulfill the powers and duties imposed upon and entrusted to the board.
  3. The board may meet any of its obligations in whole or in part with funds available to it under Article II(h) of this compact, provided that the board takes specific action setting aside such funds prior to the incurring of any obligation to be met in whole or in part in this manner. Except where the board makes use of funds available to it under Article II(h) hereof, the board shall not incur any obligation prior to the allotment of funds by the party jurisdictions adequate to meet the same.
  4. The board shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the board shall be subject to the audit and accounting procedures established under its bylaws. However, all receipts and disbursements of funds handled by the board shall be audited yearly by a qualified public accountant and the report of the audit shall be included in and become part of the annual report of the board.
  5. The accounts of the board shall be open at any reasonable time for inspection.

ARTICLE IV. ADVISORY COMMITTEES.

The board may establish such advisory and technical committees as it may deem necessary, membership on which to include but not to be limited to private citizens, expert and lay personnel, representatives of industry, labor, commerce, agriculture, civic associations, medicine, education, voluntary health agencies, and officials of local, state and federal government, and may cooperate with and use the services of any such committees and the organizations which they represent in furthering any of its activities under this compact.

ARTICLE V. POWERS.

The board shall have power to:

  1. Ascertain and analyze on a continuing basis the position of the south with respect to energy and energy-related industries, and environmental concerns.
  2. Encourage the development, conservation, and responsible use of energy and energy-related facilities, installations, and products as part of a balanced economy and healthy environment.
  3. Collect, correlate and disseminate information relating to civilian uses of energy, and energy-related materials and products.
  4. Conduct, or cooperate in conducting, programs of training for state and local personnel engaged in any aspects of:
  1. Energy, environment, and application of energy, environmental, and related concerns to industry, medicine, or education or the promotion or regulation thereof.
  2. The formulation or administration of measures designed to promote safety in any matter related to the development, use or disposal of energy, and energy-related materials, products, installations, or wastes.

    (e) Organize and conduct, or assist and cooperate in organizing and conducting, demonstrations of energy product, material, or equipment use and disposal and of proper techniques or processes for the application of energy resources to the civilian economy or general welfare.

    (f) Undertake such nonregulatory functions with respect to sources of radiation as may promote the economic development and general welfare of the region.

    (g) Study industrial, health, safety, and other standards, laws, codes, rules, regulations, and administrative practices in or related to energy and environmental fields.

    (h) Recommend such changes in, or amendments or additions to the laws, codes, rules, regulations, administrative procedures and practices or ordinances of the party states in any of the fields of its interest and competence as in its judgment may be appropriate. Any such recommendation shall be made through the appropriate state agency with due consideration of the desirability of uniformity but shall also give appropriate weight to any special circumstances which may justify variations to meet local conditions.

    (i) Prepare, publish and distribute, (with or without charge) such reports, bulletins, newsletters or other material as it deems appropriate.

    (j) Cooperate with the United States Department of Energy or any agency successor thereto, any other officer or agency of the United States, and any other governmental unit or agency or officer thereof, and with any private persons or agencies in any of the fields of its interests.

    (k) Act as licensee of the United States government or any party state with respect to the conduct of any research activity requiring such license and operate such research facility or undertake any program pursuant thereto.

    (l) Ascertain from time to time such methods, practices, circumstances, and conditions as may bring about the prevention and control of energy and environmental incidents in the area comprising the party states, to coordinate the nuclear, environmental and other energy-related incident prevention and control plans and the work relating thereto of the appropriate agencies of the party states and to facilitate the rendering of aid by the party states to each other in coping with energy and environmental incidents. The board may formulate and, in accordance with need from time to time, revise a regional plan or regional plans for coping with energy and environmental incidents within the territory of the party states as a whole or within any subregion or subregions of the geographic area covered by this compact.

ARTICLE VI. SUPPLEMENTARY AGREEMENTS.

  1. To the extent that the board has not undertaken an activity or project which would be within its power under the provisions of Article V of this compact, any two or more of the party states (acting by their duly constituted administrative officials) may enter into supplementary agreements for the undertaking and continuance of such an activity or project. Any such agreement shall specify its purpose or purposes; its duration and the procedure for termination thereof or withdrawal therefrom; the method of financing and allocating the costs of the activity or project; and such other matters as may be necessary or appropriate. No such supplementary agreement entered into pursuant to this article shall become effective prior to its submission to and approval by the board. The board shall give such approval unless it finds that the supplementary agreement or the activity or project contemplated thereby is inconsistent with the provisions of this compact or a program or activity conducted by or participated in by the board.
  2. Unless all of the party states participate in a supplementary agreement, any cost or costs thereof shall be borne separately by the states party thereto. However, the board may administer or otherwise assist in the operation of any supplementary agreement.
  3. No party to a supplementary agreement entered into pursuant to this article shall be relieved thereby of any obligation or duty assumed by said party state under or pursuant to this compact, except that timely and proper performance of such obligation or duty by means of the supplementary agreement may be offered as performance pursuant to the compact.

ARTICLE VII. OTHER LAWS AND RELATIONSHIPS.

Nothing in this compact shall be construed to:

  1. Permit or require any person or other entity to avoid or refuse compliance with any law, rule, regulation, order or ordinance of a party state or subdivision thereof now or hereafter made, enacted or in force.
  2. Limit, diminish, or otherwise impair jurisdiction exercised by the United States Department of Energy, any agency successor thereto, or any other federal department, agency or officer pursuant to and in conformity with any valid and operative Act of Congress.
  3. Alter the relations between the respective internal responsibilities of the government of a party state and its subdivisions.
  4. Permit or authorize the board to exercise any regulatory authority or to own or operate any nuclear reactor for the generation of electric energy; nor shall the board own or operate any facility or installation for industrial or commercial purposes.

ARTICLE VIII. ELIGIBLE PARTIES, ENTRY INTO FORCE AND WITHDRAWAL.

  1. Any or all of the states of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia, the Commonwealth of Puerto Rico, and the United States Virgin Islands shall be eligible to become party to this compact.
  2. As to any eligible party state, this compact shall become effective when adopted into law as provided by the law of the various party states; provided that it shall not become initially effective until enacted into law by seven states.
  3. Any party state may withdraw from this compact by enacting a statute repealing the same, but no such withdrawal shall become effective until the governor of the withdrawing state shall have sent formal notice in writing to the governor of each other party state informing said governors of the action of the legislature in repealing the compact and declaring an intention to withdraw.

ARTICLE IX. SEVERABILITY AND CONSTRUCTION.

The provisions of this compact and of any supplementary agreement entered into hereunder shall be severable and if any phrase, clause, sentence or provision of this compact or such supplementary agreement is declared to be contrary to the constitution of any participating state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact or such supplementary agreement and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this compact or any supplementary agreement entered into hereunder shall be held contrary to the constitution of any state participating therein, the compact or such supplementary agreement shall remain in full force and effect as to the remaining states and in full force and effect as to the state affected as to all severable matters. The provisions of this compact and of any supplementary agreement entered into pursuant hereto shall be liberally construed to effectuate the purposes thereof.

Compiler’s Notes.

Section 4 of Acts 1982, ch. 76 read: “This Act shall become effective at such time as all party states to the Southern Interstate Nuclear Compact approve changes in the compact which are substantially the same as those of this Act, and the Congress of the United States consents to the compact, substantially as amended in this Act.” Although all party states have approved the changes in the compact, U.S. congressional consent is still pending.

Research References and Practice Aids

Cross-References.

Compacts with other states, KRS 12.240 .

152.212. Appointment of Kentucky board members — Terms. [Effective upon contingency - See compiler’s note.]

The Governor shall appoint three (3) persons to represent Kentucky on the Southern States Energy Board. One (1) member shall be chosen from a list of three (3) state representatives submitted by the Speaker of the House of Representatives; one (1) shall be chosen from a list of three (3) state senators submitted by the President of the Senate, and one (1) shall be appointed by the Governor to represent his office on the board. The member appointed to represent the Governor shall serve at his pleasure. The members appointed from the General Assembly shall serve a term of two (2) years and until a successor has been appointed in the manner prescribed above, except that if a member loses his seat in the General Assembly the Governor shall, in consultation with the Speaker of the House of Representatives or the President of the Senate, respectively, appoint a successor for the remainder of his term.

History. Enact. Acts 1982, ch. 76, § 3; 1994, ch. 486, § 23, effective July 15, 1994.

Compiler’s Notes.

Section 4 of Acts 1982, ch. 76 read: “This Act shall become effective at such time as all party states to the Southern Interstate Nuclear Compact approve changes in the compact which are substantially the same as those of this Act, and the Congress of the United States consents to the compact, substantially as amended in this Act.” Although all party states have approved the changes in the compact, U.S. congressional consent is still pending.

Economic Development Bonds for Depressed Counties

152.260. Definitions for KRS 152.262 to 152.298. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 1, effective April 8, 1988; 1990, ch. 326, § 2, effective July 13, 1990) was repealed, reenacted, and amended as KRS 154.22-010 by Acts 1992, ch. 105, § 22, effective July 14, 1992.

152.262. Legislative intent. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 2, effective April 8, 1988) was repealed, reenacted, and amended as KRS 154.22-020 by Acts 1992, ch. 105, § 23, effective July 14, 1992.

152.264. Kentucky Rural Economic Development Authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 3, effective April 8, 1988; 1990, ch. 326, § 1, effective July 13, 1990) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

Legislative Research Commission Note.

(7/14/92) This section was amended by the 1992 Regular Session of the General Assembly and also repealed. Pursuant to KRS 446.260 , the repeal prevails.

152.266. Powers of authority. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 4, effective April 8, 1988) was repealed, reenacted, and amended as KRS 154.22-030 by Acts 1992, ch. 105, § 24, effective July 14, 1992.

152.268. Administrative staff. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 5, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

152.270. Immunity from personal liability of officers and directors. [Repealed.]

Compiler’s Notes.

This section (Enact Acts 1988, ch. 392, § 6, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

Legislative Research Commission Note.

(7/14/92) This section was amended by the 1992 Regular Session of the General Assembly and also repealed. Pursuant to KRS 446.260 , the repeal prevails.

152.272. Acceptance and expenditure of funds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 7, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

152.274. Conflict of interest prohibited. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 8, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

152.276. Certification of qualified counties — Selection of eligible companies. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 9, effective April 8, 1988) was repealed, reenacted, and amended as KRS 154.22-040 by Acts 1992, ch. 105, § 25, effective July 14, 1992.

152.278. Financing agreement — Terms — Payback — Income tax credit — Default. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 10, effective April 8, 1988) was repealed, reenacted, and amended as KRS 154.22-050 by Acts 1992, ch. 105, § 26, effective July 14, 1992.

152.280. Determination of income tax credit by Revenue Cabinet. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 11, effective April 8, 1988) was repealed, reenacted, and amended as KRS 154.22-060 by Acts 1992, ch. 105, § 27, effective July 14, 1992.

152.282. Assessment of employees — Tax credit. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 12, effective April 8, 1988) was repealed, reenacted, and amended as KRS 154.22-070 by Acts 1992, ch. 105, § 28, effective July 14, 1992.

152.284. Revenue bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 13, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

Legislative Research Commission Note.

(7/14/92) This section was amended by the 1992 Regular Session of the General Assembly and also repealed. Pursuant to KRS 446.260 , the repeal prevails.

152.286. Revenue bonds not to be deemed debt of Commonwealth — Payment of expenses of authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 14, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

Legislative Research Commission Note.

(7/14/92) This section was amended by the 1992 Regular Session of the General Assembly and also repealed. Pursuant to KRS 446.260 , the repeal prevails.

152.288. Security for bonds — Bonds considered a permitted investment. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 15, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

152.290. Effect of pledge of revenues or assets of authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 16, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

152.292. Authority’s money deemed to be trust funds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 17, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

Legislative Research Commission Note.

(7/14/92) This section was amended by the 1992 Regular Session of the General Assembly and also repealed. Pursuant to KRS 446.260 , the repeal prevails.

152.294. Enforcement of rights by bond holders or trustees. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 18, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

152.296. Negotiability of bonds and interest coupons. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 19, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

152.298. Refunding obligations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 20, effective April 8, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

Fossil Fuel and Hydrocarbon Research

152.310. Definitions. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 152A.210 and has since been repealed.

152.320. Establishment of research program. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 152A.220 and has since been repealed.

152.330. Duties of secretary. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 152A.230 and has since been repealed.

152.340. Powers of secretary. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 152A.240 and has since been repealed.

152.350. Office and employees. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 152A.250 and has since been repealed.

152.360. Study grants. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 152A.260 and has since been repealed.

152.370. Advisory committee. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 127, § 7) was repealed by Acts 1974, ch. 157, § 9.

152.380. Interstate agreements. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 152A.270 and has since been repealed.

152.390. Extension of program into state schools. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 152A.280 and has since been repealed.

Arts and Crafts

152.410. Declaration of policy. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 21, § 1) was repealed by Acts 1970, ch. 111, § 5.

152.420. Definitions for KRS 152.410 to 152.470. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 21, § 2) was repealed by Acts 1970, ch. 111, § 5.

152.430. Arts and Craft Loan Fund Board — Powers. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 21, § 3) was repealed by Acts 1970, ch. 111, § 5.

152.440. Application for loan — Action of board. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 21, § 4) was repealed by Acts 1970, ch. 111, § 5.

152.450. Regulations governing loans. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 21, § 5) was repealed by Acts 1970, ch. 111, § 5.

152.460. Revolving fund. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 21, § 6) was repealed by Acts 1970, ch. 111, § 5.

152.470. Acceptance of aid for promotion of arts and crafts industry. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 21, § 7) was repealed by Acts 1970, ch. 111, § 5.

152.480. Division of Arts and Crafts. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 106, Art. VI, § 5) was repealed by Acts 1970, ch. 111, § 5.

152.490. Kentucky film commission established — Members — Responsibilities. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 155, § 78, effective June 17, 1978; 1980, ch. 295, § 29, effective July 15, 1980) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

Science and Technology

152.510. Public policy declared. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 1; 1966, ch. 220, § 6) was repealed by Acts 1976, ch. 299, § 91.

152.520. Statutes relating to science and industry. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 2; 1966, ch. 220, § 7) was repealed by Acts 1976, ch. 299, § 91.

152.530. Definitions for KRS 152.510 to 152.700. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 3; 1966, ch. 220, § 8) was repealed by Acts 1976, ch. 299, § 91.

152.540. Kentucky science and technology commission — Members — Appointment — Terms — Chairman — Meetings — Advisory committees. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 4; 1966, ch. 220, § 9) was repealed by Acts 1976, ch. 299, § 91.

152.545. Administration and supervision of commission and staff. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 74, Art. VIII, D, § 1) was repealed by Acts 1976, ch. 299, § 91.

152.550. Executive director — Qualifications — Compensation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 5; 1966, ch. 220, § 10) was repealed by Acts 1976, ch. 299, § 91.

152.560. Attorney General to be legal officer. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 6) was repealed by Acts 1966, ch. 220, § 15.

152.570. Commissioner of health to be health and safety officer. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 7; 1966, ch. 220, § 11) was repealed by Acts 1976, ch. 299, § 91.

152.580. Offices of commission. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 8; 1966, ch. 220, § 12) was repealed by Acts 1976, ch. 299, § 91.

152.590. General powers of Energy and Environment Cabinet.

The Energy and Environment Cabinet shall have the following general powers:

  1. To acquire by purchase, exercise of the right of eminent domain, grant, gift, devise, or otherwise, the fee simple title to or any acceptable lesser interest in any lands, and by lease or other contract the right to use and occupy any lands, selected in the discretion of the secretary of the Energy and Environment Cabinet as constituting necessary, desirable, or acceptable sites for projects of the cabinet, including any and all lands adjacent to a project site as in the discretion of the secretary may be necessary or suitable for satellite projects or restricted areas; but in all instances lands which are to be designated as radioactive waste material sites shall be acquired in fee simple absolute and dedicated in perpetuity to such purpose;
  2. To convey to private enterprise, or to lease to private enterprise for such term as in the discretion of the secretary of the Finance and Administration Cabinet may be in the public interest, any lands so acquired, either for a fair and reasonable consideration or solely or partly as an inducement to the establishment or location in the Commonwealth of any scientific or technological facility, project, satellite project, or nuclear storage area; but subject to such restraints as may be deemed proper to bring about a reversion of title or termination of any lease in the event the grantee or lessee, as the case may be, shall cease to use the premises or facilities in the conduct of business or activities consistent with laws and regulations of the Commonwealth; provided, however, radioactive waste material sites may be leased but may not otherwise be disposed of except to the Commonwealth, or to the United States;
  3. To construct, reconstruct, maintain, repair, operate, and regulate projects at such locations within the Commonwealth as may be determined by the secretary;
  4. To fix by contract, or to establish and revise from time to time and charge and collect revenues, rentals, rates, and charges for use of the services and facilities of projects;
  5. To combine for financing purposes any two (2) or more projects;
  6. To establish and enforce rules and regulations for the use of any project;
  7. Without reference to KRS Chapter 56, to acquire and hold real and personal property in the exercise of its powers and the performance of its functions and duties under this section, and to dispose of the same with due regard for public health and safety, except in the case of radioactive waste material sites, which may be disposed of only to the Commonwealth itself, or to the United States, except as provided in subsection (2);
  8. To designate the locations and establish, limit, and control such points of ingress to and egress from each project as the secretary may determine to be necessary or desirable to ensure the proper operation and maintenance of such project, and to prohibit entrance to such project from any point or points not so designated;
  9. To make and enter into such contracts and agreements with governmental agencies and private enterprise as may be necessary or incidental to the performance of its duties and the execution of its powers under this section;
  10. To employ scientists, consulting engineers, health officers, attorneys, accountants, construction and financial experts, superintendents, managers, and such other employees and agents as may be necessary in the judgment of the secretary and to fix their compensation;
  11. To receive and accept from any governmental agency, or from private enterprise, appropriations, grants, or contributions in money, property, labor, or other things of value, to be held, used and applied for or in aid of any project; and
  12. To do all acts and things necessary or convenient to carry out the powers expressly granted in this section.

History. Enact. Acts 1962, ch. 100, § 9; 1964, ch. 7, § 12; 1966, ch. 220, § 13; 1976, ch. 299, § 92; 1978, ch. 155, § 41, effective June 17, 1978; 1980, ch. 295, § 30, effective July 15, 1980; 2010, ch. 24, §§ 183, 189, effective July 15, 2010.

Legislative Research Commission Note.

(7/15/2010). This section was amended by 2010 Ky. Acts ch. 24, secs. 183 and 189, which are identical and have been codified together.

152.600. Issuance of revenue bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 10) was repealed by Acts 1964, ch. 7, § 12.

152.610. Payment of bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 11) was repealed by Acts 1964, ch. 7, § 12.

152.620. Bonds may be secured by trust indentures; contents of indenture. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 12) was repealed by Acts 1964, ch. 7, § 12.

152.630. Disposition of monies. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 13) was repealed by Acts 1964, ch. 7, § 12.

152.640. Rights of bondholders and trustees. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 14) was repealed by Acts 1964, ch. 7, § 12.

152.650. Property, projects and bonds of authority exempt from taxation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 15) was repealed by Acts 1964, ch. 7, § 12.

152.660. Bonds constitute securities. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 16) was repealed by Acts 1964, ch. 7, § 12.

152.670. Property may be acquired by commission — Condemnation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 17; 1966, ch. 220, § 13A) was repealed by Acts 1976, ch. 299, § 91.

152.680. Revenue refunding bonds; purposes. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 18) was repealed by Acts 1964, ch. 7, § 12.

152.690. Radioactive waste material — Monitoring — Licensing regulations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 19; 1968, ch. 152, § 114; 1976, ch. 299, § 93) was repealed by Acts 1978, ch. 279, § 9, effective June 17, 1978.

152.700. Contracts may be negotiated and awarded without advertisement by authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 100, § 20; 1968, ch. 152, § 115) was repealed by Acts 1976, ch. 299, § 91.

Alternative Fuel Technologies

152.710. Legislative findings and determinations.

The General Assembly finds and determines that:

  1. The United States currently imports almost sixty percent (60%) of its petroleum needs, and nearly half of these imports come from highly unstable regions and countries. It is projected that this percentage will grow to over seventy percent (70%) by 2025 unless the United States changes its policy on producing liquid fuels;
  2. Events in the Middle East, Africa, and South America, coupled with China’s efforts to secure world oil reserves and production facilities, demonstrate that increasing reliance on foreign sources of petroleum threatens the homeland security of the United States. America’s military is increasingly looking at the potential of alternate liquid fuels produced from fossil energy resources or agricultural materials as a reliable, secure source of fuel;
  3. Petroleum imports are the single largest cause of the nation’s negative balance of trade with the rest of the world and are a major cause of inflation and economic slowdown;
  4. Experts project that world oil prices will remain very high because production is at or near its peak while world demand for oil is increasing rapidly. This increase in demand is due largely to economic growth in developing nations, especially China, where oil demand grew by twenty percent (20%) in 2004 and is expected to grow by a similar amount in 2005;
  5. The price of crude oil is the major factor driving up prices for gasoline, as well as for oil used for home heating in addition to commercial and industrial purposes. Natural gas for home heating and other purposes has been driven to record-high prices as a result of supply constriction and increased demand from the industrial sector;
  6. Technologies have long existed for producing transportation fuels from indigenous fossil and biomass energy resources in the United States, and research has demonstrated that coal-based alternate fuel technologies are cost-effective when the world price of petroleum exceeds thirty-five dollars ($35) per barrel;
  7. The United States has trillions of tons of indigenous fossil energy resources and agricultural capacity that rival total worldwide conventional oil reserves. These domestic resources are capable of producing alternate transportation fuels sufficient to make the United States independent of foreign petroleum imports. Kentucky has hundreds of years of fossil energy resources, and the Commonwealth’s agriculture produces substantial biomass materials for production of premium-quality liquid transportation fuels;
  8. The development of an alternate transportation fuels industry in the United States will create long-term reliable demand for Kentucky’s energy and agricultural resources, stabilizing both the energy industries and the agriculture community;
  9. Coal-based alternate transportation fuel technologies are capable of producing environmentally superior transportation fuels from near-zero-emission plants with removal or capture of virtually all pollutants, including sulfur dioxide, nitrous oxides, mercury, and carbon dioxide, and from biomass-based technologies that are very environmentally positive. The United States can set an example for the world by implementing these technologies, and Kentucky is poised to lead the way;
  10. Coal-based technologies in the United States are capable of producing pipeline-quality natural gas and industrial-quality natural gas at prices which are below current annual market prices for natural gas;
  11. Kentucky’s universities have for several decades been among the leading entities in the United States doing research on transportation fuels from coal and oil shale. The Kentucky Department of Agriculture has provided support relating to development of transportation fuels from Kentucky agricultural materials;
  12. Although developing an alternate fuels industry capable of reducing America’s dependence on foreign sources of petroleum requires the large-scale financial and technical resources of the federal government and private industry, only government and industry in the states can ensure the most efficient and productive on-site joining of technologies, energy resources, and industrial and transportation infrastructure;
  13. The economic, national security, and environmental advantages of establishing thriving domestic alternative liquid fuels and synthetic natural gas industries vastly outweigh the development costs. In contrast, doing little or nothing subjects America to continued and repeated energy supply disruptions and to potentially severe economic consequences;
  14. Embarking on a national mission to achieve energy security and move toward liquid and synthetic fuels independence will not only reduce risk and lower oil prices, natural gas prices, and oil price volatility, it will also facilitate an industrial rebirth, create jobs, foster new technology, and enhance economic growth; and
  15. Kentucky, through its universities, has done the research and testing of these environmentally responsible alternative liquid fuel technologies. Kentucky has the natural resources to be the leader in achieving energy security and independence for the United States.

History. Enact. Acts 2006, ch. 184, § 1, effective July 12, 2006.

Legislative Research Commission Note.

(7/12/2006). 2006 Ky. Acts ch. 184, § 6 provides that KRS 152.710 to 152.725 and KRS 45A.615 shall be known as the Kentucky Energy Security National Leadership Act.

152.712. Office of Energy Policy — Duties — Fees — Funding — Partnerships and cooperative research initiatives.

  1. The Office of Energy Policy in the Energy and Environment Cabinet shall:
    1. Oversee the implementation of Kentucky’s comprehensive energy strategy;
    2. Provide leadership to enhance the benefits of energy efficiency and alternative energy through supporting awareness, technology development, energy preparedness, partnerships, and resource development;
    3. Enhance the economic opportunities and benefits to Kentucky citizens and industry through expansion of current markets and the development of market opportunities for Kentucky coal, natural gas, petroleum, oil shale, tar sands, liquid and gaseous fuels from coal, and chemicals from coal;
    4. To the extent funding is available, administer grant programs to support energy-related research, development, and demonstration, including the support of multistate cooperative regional partnerships and research initiatives;
    5. Develop and implement programs for the development, conservation, and utilization of energy in a manner to meet essential human needs while maintaining the Kentucky economy at the highest feasible level. The programs shall include:
      1. Central access for collection, maintenance, and analysis of data and information on all forms of energy supply, demand, conservation, and related subjects;
      2. Formulation of a contingency plan to address any energy shortage which may occur from time to time. The contingency plan shall relate to the curtailment, allocation, planning, and management of all forms of energy;
      3. Development and implementation of major energy conservation programs involving all sectors of the Kentucky economy, including energy audits of educational facilities and state-owned buildings; and
      4. Provision for the application of appropriate technologies with regard to alternative energy development, including the development of solar and other renewable resources and small-scale hydroelectric plants, and promotion, when feasible, of the production of energy from other resources such as solid waste and biomass;
    6. Provide technical assistance to the Finance and Administration Cabinet in implementing the Energy Efficiency in Government Buildings Program;
    7. Enter into agreements, administer grant programs, and serve as a liaison with the federal government and other states in matters relating to energy; and
    8. Participate in the review of applications and, upon request of the authority, assist the Kentucky Economic Development Finance Authority in monitoring tax incentive agreements as provided in Subchapter 27 of KRS Chapter 154.
  2. The office may establish reasonable application fees to offset costs associated with reviewing and processing applications, including costs associated with hiring outside consultants.
  3. The office is encouraged to use state funding available to it as a match for federal or private funding to increase the resources available to support energy research and development.
  4. The office is encouraged to explore and develop regional partnerships and cooperative research initiatives with other states and governmental entities to enhance resources available for energy research and development.

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 37, effective August 30, 2007; 2010, ch. 24, § 184, effective July 15, 2010; 2018 ch. 29, § 51, effective July 14, 2018.

Legislative Research Commission Notes.

(7/14/2018). In codification, the word “department” has been changed to read “office” in subsections (2), (3), and (4) of this statute. In subsection (1) of 2018 Ky. Acts ch. 29, sec. 51, the phrase “Department of Energy Development and Independence” was deleted and the phrase “Office of Energy Policy” was inserted in its place, but corresponding changes were not made elsewhere in the statute. The Reviser of Statutes has corrected this error under the authority of KRS 7.136(1) and (2).

152.713. Center for Renewable Energy Research and Environmental Stewardship — Duties — Membership and duties of board of directors.

  1. For purposes of this section, “renewable energy” has the same meaning as in KRS 154.20-400 .
  2. The Center for Renewable Energy Research and Environmental Stewardship is hereby created.
  3. The Center for Renewable Energy Research and Environmental Stewardship shall:
    1. Provide leadership, research, support, and policy development in renewable energy;
    2. Advance the goal of renewable energy;
    3. Promote technologies, practices, and programs that increase efficiency in energy utilization in homes, businesses, and public buildings;
    4. Emphasize energy policies that would result in cost-conscious, responsible development of Kentucky’s energy resources and a commitment to environmental quality;
    5. Promote partnerships among the state’s postsecondary education institutions, private industry, and nonprofit organizations to actively pursue federal research and development resources that are dedicated to renewable energy;
    6. Promote the continued development of public-private partnerships dedicated to promoting energy efficiency through education and outreach;
    7. Establish research priorities with approval of the board of directors created in subsection (4) of this section, relating to renewable energy, and develop procedures and processes for awarding research grants to eligible recipients as defined by the board and to the extent that funding is available;
    8. Collaborate with the Office of Energy Policy to avoid duplication of efforts, provide appropriate data and information, and support the implementation of Kentucky’s comprehensive energy strategy; and
    9. Carry out other activities to further the efficient and environmentally responsible use of renewable energy.
    1. There is hereby created a governing board of directors to provide policy direction, establish a strategic research agenda and operating policies, and provide financial and operational oversight for the Center for Renewable Energy Research and Environmental Stewardship. The initial board shall be appointed within sixty (60) days following July 15, 2008. (4) (a) There is hereby created a governing board of directors to provide policy direction, establish a strategic research agenda and operating policies, and provide financial and operational oversight for the Center for Renewable Energy Research and Environmental Stewardship. The initial board shall be appointed within sixty (60) days following July 15, 2008.
    2. The board shall consist of thirteen (13) members:
      1. One (1) member to represent the Office of Energy Policy as designated by its executive director;
      2. Three (3) members representing postsecondary education interests who shall be appointed by the Governor;
      3. One (1) member to be designated by the governing body of the Kentucky Science and Technology Corporation;
      4. One (1) member from an energy conservation organization who shall be appointed by the Governor;
      5. The secretary of the Economic Development Cabinet or the secretary’s designee;
      6. One (1) member who shall be a recognized consumer advocate to be appointed by the Governor;
      7. Three (3) members to represent companies that are focused on renewable energy who shall be appointed by the Governor;
      8. One (1) member who shall represent environmental interests to be appointed by the Governor; and
      9. One (1) member who shall be selected to represent local government interests to be appointed by the Governor.
    3. The members appointed by the Governor shall serve two (2) year terms and may be reappointed. The members representing specific agencies shall serve for as long as the respective agencies determine appropriate.

HISTORY: Enact. Acts 2008, ch. 139, § 20, effective July 15, 2008; repealed and reenact., Acts 2010, ch. 5, § 19, effective February 25, 2010; 2010, ch. 24, § 185, effective July 15, 2010; 2017 ch. 117, § 15, effective June 29, 2017; 2018 ch. 29, § 52, effective July 14, 2018.

Legislative Research Commission Note.

(2/25/2010). 2010 Ky. Acts ch. 5, sec. 28, provides that the repeal and reenactment of this section in that Act “shall apply retroactively to July 15, 2008.”

152.714. Funding for preliminary facility site assessments, inventories, and other activities.

From a list of potential sites developed by the Office of Energy Policy and suitable for development of alternative fuel facilities, gasification facilities, or renewable energy facilities as defined in KRS 154.27-010 , the Office of Energy Policy may expend state funds for preliminary environmental and baseline assessments, inventories, and other activities on or for the potential sites in furtherance of environmental or other permitting required for the development of an eligible project.

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 41, effective August 30, 2007; 2010, ch. 24, § 186, effective July 15, 2010; 2018 ch. 29, § 53, effective July 14, 2018.

152.715. Definitions for KRS 152.710 to 152.720.

As used in KRS 152.710 to 152.720 , unless the context requires otherwise:

  1. “Alternative transportation fuels” means:
    1. Before August 1, 2010, crude oil or transportation fuels produced by processes that:
      1. Convert coal, waste coal, or biomass resources; or
      2. Extract oil from oil shale or tar sands;

        to produce crude oil or fuels for powering vehicles, aircraft, and machinery; and

    2. On or after August 1, 2010:
      1. Crude oil or transportation fuels produced by processes that:
        1. Convert coal, waste coal, or biomass resources; or
        2. Extract oil from oil shale or tar sands;

          to produce crude oil or fuels for powering vehicles, aircraft, and machinery;

      2. Liquefied or compressed natural gas produced for use as a transportation fuel; or
      3. Liquefied petroleum gas produced from natural gas, natural gas liquids, or petroleum for use as a transportation fuel.

        “Alternative transportation fuels” may include but are not limited to natural gas, petroleum, jet fuel, gasoline, diesel fuel, hydrogen derived from coal, and diesel fuel and ethanol derived from biomass;

  2. “Synthetic natural gas” means pipeline quality or industrial quality natural gas produced from coal through gasification processes;
  3. “Fossil energy resources” means reserves of coal, oil shale, and natural gas; and
  4. “Biomass resources” means any organic matter that is available on a renewable or recurring basis, including agricultural crops and trees; wood and wood residues; plants, aquatic plants, and plant oils; grasses; animal fats and animal by-products; animal manure; residue materials; and waste products.

History. Enact. Acts 2006, ch. 184, § 2, effective July 12, 2006; 2007 (2nd Ex. Sess.), ch. 1, § 38, effective August 30, 2007; 2009 (1st Ex. Sess.), ch. 1, § 100, effective June 26, 2009; 2010, ch. 24, § 187, effective July 15, 2010; 2010, ch. 139, § 1, effective July 15, 2010; 2013, ch. 116, § 3, effective June 25, 2013.

Research References and Practice Aids

Kentucky Bench & Bar.

Early, Not All Biofuels Are Green, Vol. 74, No. 2, March 2010, Ky. Bench & Bar 8.

152.720. Strategy for production of transportation fuels and synthetic natural gas from fossil energy resources and biomass resources.

To ensure that Kentucky will lead the states in securing the energy independence of the United States and will consequently benefit from economic growth and stabilization of the Commonwealth’s coal industry and agriculture, the Office of Energy Policy shall develop and implement a strategy for production of alternative transportation fuels and synthetic natural gas from fossil energy resources and biomass resources. The strategy shall address:

  1. Technologies available or in use for producing alternative transportation fuels and synthetic natural gas from fossil energy resources and biomass resources and the relative advantages of these in terms of process efficiencies, environmental performance, and marketable products, including chemicals, industrial feedstocks, and electricity;
  2. Research, demonstration, and commercial-scale construction and operation of one (1) or more technologies, and follow-up expansion;
  3. The essential nature of efficient cooperation, coordination, and synergy between the efforts of the Office of Energy Policy and those of Kentucky’s public and private colleges and universities in order to maximize Kentucky’s opportunities to access federal funds and to receive research grants and awards from federal and other sources to fund the development of clean coal technology, coal-to-liquid-fuel conversion, synthetic natural gas, alternative transportation fuels, and biomass resources;
  4. The identification of federal funds available for research, development, construction, and operation of alternative transportation fuels or synthetic natural gas plants at laboratory, demonstration, and commercial scale;
  5. Establishment of a major federal energy research laboratory in Kentucky;
  6. Industry participation, both by single firms and by consortia, in research, development, construction, and operation of alternative transportation fuels or synthetic natural gas plants;
  7. Establishment or expansion of Kentucky state government incentives for development, construction, or operation of alternative transportation fuels and synthetic natural gas production facilities, including but not limited to financial incentives, tax incentives, mandating or providing incentives for use of alternative transportation fuels and synthetic natural gas by state government, school districts, or utilities, authority to issue bonds, and acquisition and preliminary environmental assessment of industrial sites; and
  8. Development of incentives to encourage energy conservation and renewable fuel and energy use and deployment of renewable energy, including solar power, wind power, hydropower, and other sources.

HISTORY: Enact. Acts 2006, ch. 184, § 3, effective July 12, 2006; 2007 (2nd Ex. Sess.), ch. 1, § 39, effective August 30, 2007; 2010, ch. 24, § 188, effective July 15, 2010; 2013, ch. 116, § 4, effective June 25, 2013; 2018 ch. 29, § 54, effective July 14, 2018.

152.725. Reports of findings and legislative recommendations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2006, ch. 184, § 4, effective July 12, 2006) was repealed by Acts 2010, ch. 24, § 1936, effective July 15, 2010.

Energy Development and Demonstration Projects

152.750. Policy of Commonwealth — Implementation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 78, § 1; 1978, ch. 384, § 40, effective June 17, 1978; 1980, ch. 129, § 1, effective July 15, 1980; 1982, ch. 441, § 1, effective July 15, 1982) was repealed by Acts 2007 (2nd Ex. Sess.), ch. 1, § 56, effective August 30, 2007.

152.755. Contracts for development or demonstration projects. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 78, § 2; 1976, ch. 299, § 23; 1978, ch. 186, § 22, effective March 29, 1978; 1978, ch. 291, § 3, effective June 17, 1978) was repealed by Acts 2007 (2nd Ex. Sess.), ch. 1, § 56, effective August 30, 2007.

152.757. Funds for annual lease rental payments for projects. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 22; 1978, ch. 291, § 6) was repealed by Acts 1980, ch. 298, § 3, effective July 15, 1980.

152.760. Revenue bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 78, § 3; 1976, ch. 299, § 24; 1978, ch. 186, § 22, effective March 29, 1978; 1978, ch. 291, § 1, effective June 17, 1978; 1982, ch. 441, § 2, effective July 15, 1982) was repealed by Acts 2007 (2nd Ex. Sess.), ch. 1, § 56, effective August 30, 2007.

152.762. Bonds, how to be secured. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 22, effective March 20, 1978; 1978, ch. 291, § 5, effective June 17, 1978) was repealed by Acts 2007 (2nd Ex. Sess.), ch. 1, § 56, effective August 30, 2007.

152.765. Deposit of proceeds from contracts. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 78, § 4; 1978, ch. 291, § 4, effective June 17, 1978) was repealed by Acts 2007 (2nd Ex. Sess.), ch. 1, § 56, effective August 30, 2007.

152.770. Limitation of Commonwealth’s liability and claims. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 78, § 5; 1976, ch. 299, § 25) was repealed by Acts 2007 (2nd Ex. Sess.), ch. 1, § 56, effective August 30, 2007.

152.775. Termination of Commonwealth participation — Repayment. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 78, § 6; 1978, ch. 155, § 41, effective June 17, 1978) was repealed by Acts 2007 (2nd Ex. Sess.), ch. 1, § 56, effective August 30, 2007.

152.780. Administrative staff. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 78, § 7; 1976, ch. 299, § 26; 1978, ch. 186, § 22, effective March 29, 1978) was repealed by Acts 2007 (2nd Ex. Sess.), ch. 1, § 56, effective August 30, 2007.

152.785. Energy development and demonstration trust fund — Indemnity account. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 78, § 8; 1976, ch. 299, § 27; 1978, ch. 155, § 41, effective June 17, 1978) was repealed by Acts 2007 (2nd Ex. Sess.), ch. 1, § 56, effective August 30, 2007.

Acquisition of Land for Industrial Development

152.810. Definitions for KRS 152.820 to 152.930. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 3) was renumbered as KRS 154.50-310 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.820. Purpose. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 2) was renumbered as KRS 154.50-313 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.830. Establishment of local industrial development authority. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 4) was renumbered as KRS 154.50-316 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.840. Functions of authority. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 5; 1976, ch. 140, § 66; 1978, ch. 384, § 41, effective June 17, 1978) was renumbered as KRS 154.50-320 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.850. Limitations on condemnation powers. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 13) was renumbered as KRS 154.50-323 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.860. Membership of authority. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 6) was renumbered as KRS 154.50-326 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.870. Withdrawal by governmental unit — Dissolution of authority. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 7; 1978, ch. 384, § 42, effective June 17, 1978) was renumbered as KRS 154.50-330 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.880. Quorum — Effect of tie vote. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 8) was renumbered as KRS 154.50-333 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.890. Authority officers, employees — Expenses of members. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 9) was renumbered as KRS 154.50-336 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.900. Authority’s power to receive appropriations, finance by borrowing or issuance of revenue bonds. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 10) was renumbered as KRS 154.50-340 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.910. Title to property — Authority’s property, revenues are tax-exempt. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 11) was renumbered as KRS 154.50-343 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.920. Declaration of public purpose. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 12) was renumbered as KRS 154.50-346 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.930. Citation. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 114, § 1) was renumbered as KRS 154.50-301 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

Small Business Assistance

152.950. Definitions. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 212, § 1, effective July 15, 1982; 1984, ch. 296, § 2, effective July 13, 1984; 1986, ch. 89, § 1, effective July 15, 1986) was renumbered as KRS 154.12-214 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.952. Division of small business assistance — Duties. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 212, § 2, effective July 15, 1982; 1984, ch. 296, § 3, effective July 13, 1984) was renumbered as KRS 154.12-215 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.953. Business Information Clearinghouse established — Duties. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1984, ch. 296, § 5, effective July 13, 1984; 1986, ch. 89, § 2, effective July 15, 1986) was renumbered as KRS 154.12-216 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.954. Task force on business registration and licensing. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 212, § 3, effective July 15, 1982) was repealed by Acts 1984, ch. 296, § 12, effective July 13, 1984.

152.955. Licensing coordinators. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1984, ch. 296, § 7, effective July 13, 1984; 1986, ch. 89, § 3, effective July 15, 1986) was renumbered as KRS 154.12-217 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.956. Small Business Advisory Council. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 212, § 4, effective July 15, 1982) was renumbered as KRS 154.12-218 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.957. General business license. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1984, ch. 296, § 9, effective July 13, 1984; 1986, ch. 89, § 4, effective July 15, 1986) was renumbered as KRS 154.12-219 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.958. Regulations — Licensing authority. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 212, § 5, effective July 15, 1982; 1984, ch. 296, § 4, effective July 13, 1984) was renumbered as KRS 154.12-220 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

152.959. Master application and licensure program for new grocery store operations. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1984, ch. 296, § 6, effective July 13, 1984) was renumbered as KRS 154.12-221 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

Penalties

152.990. Penalties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1976, ch. 299, § 94) was repealed by Acts 1978, ch. 279, § 9, effective June 17, 1978.

152.991. Penalty. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1984, ch. 296, § 10, effective July 13, 1984) was renumbered as KRS 154.99-012 by the Reviser of Statutes under the authority of KRS 7.136 and 7.140 .

CHAPTER 152A Energy

152A.010. Department of energy — Functions — Commissioner. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1976, ch. 299, § 30; 1978, ch. 155, § 9) was repealed by Acts 1978, ch. 186, § 23, effective March 29, 1978.

Legislative Research Commission Note.

This section was also amended by Acts 1978, ch. 155, § 79. The later repeal by Acts 1978, ch. 186, § 23, prevails.

152A.011. Energy Cabinet — Secretary. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 1, effective March 29, 1978; 1984, ch. 404, § 14, effective July 13, 1984) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.020. Duties and functions of department. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1976, ch. 299, § 32) was repealed by Acts 1978, ch. 186, § 23, effective March 29, 1978.

152A.030. Department of energy research and department of energy production and utilization. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 2, effective March 29, 1978; 1980, ch. 295, § 31, effective July 15, 1980; 1982, ch. 345, § 1, effective July 15, 1982; 1984, ch. 404, § 15, effective July 13, 1984) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.040. Department of energy organizational units. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 3, effective March 29, 1978; 1982, ch. 345, § 1, effective July 15, 1982) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.050. Advisory council for energy and natural resources — Function — Members — Terms — Officers — Vacancies. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 4, effective March 29, 1978; 1980, ch. 295, § 32, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.060. Energy research board — Members — Terms — Officers — Meetings — Duties — Staff — Compensation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 5, effective March 29, 1978; 1980, ch. 295, § 33, effective July 15, 1980; 1980, ch. 298, § 1, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.070. Office of energy policy and evaluation — Functions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 6, effective March 29, 1978; 1982, ch. 345, § 3, effective July 15, 1982) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.080. Office of Administration — Functions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 7, effective March 29, 1978) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.090. Department of energy research and development — Divisions. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 8, effective March 29, 1978; 1980, ch. 295, § 34, effective July 15, 1980; 1982, ch. 345, § 4, effective July 15, 1982) was repealed, reenacted, and amended as KRS 11.305 by Acts 1990, ch. 325, § 2, effective July 13, 1990.

152A.100. Research program. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 9, effective March 29, 1978; 1982, ch. 345, § 5, effective July 15, 1982; 1984, ch. 111, § 89, effective July 13, 1984) was repealed, reenacted, and amended as KRS 11.310 by Acts 1990, ch. 325, § 3, effective July 13, 1990.

152A.110. Bureau of energy conservation and distribution — Duties — Divisions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 10, effective March 29, 1978; 1980, ch. 295, § 35, effective July 15, 1980; 1982, ch. 345, § 6, effective July 15, 1982) was repealed by Acts 1984, ch. 404, § 20, effective July 13, 1984.

152A.120. Energy resource information. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 11, effective March 29, 1978; 1980, ch. 295, § 36, effective July 15, 1980; 1982, ch. 345, § 7, effective July 15, 1982) was repealed, reenacted, and amended as KRS 224.0334 by Acts 1990, ch. 325, § 17, effective July 13, 1990.

152A.125. Organization of department of energy production and utilization. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 345, § 8, effective July 15, 1982; 1984, ch. 404, § 16, effective July 13, 1984) was repealed, reenacted, and amended as KRS 11.315 by Acts 1990, ch. 325, § 4, effective July 13, 1990.

152A.127. Small coal operators advisory council. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 345, § 8, effective July 15, 1982) was repealed by Acts 1984, ch. 328, § 2, effective July 13, 1984.

152A.130. Internal organization of departments. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 12, effective March 29, 1978) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.140. Personnel. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, §§ 13 and 14, effective March 29, 1978) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.150. Transfer of funds, personnel and equipment. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 15, effective March 29, 1978) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.160. Existing rules and regulations in effect until modified. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 16, effective March 29, 1978) was repealed, reenacted, and amended as KRS 224.0323 by Acts 1990, ch. 325, § 16, effective July 13, 1990.

152A.170. Administration of state and federally funded programs. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 17, effective March 29, 1978) was repealed, reenacted, and amended as KRS 11.320 by Acts 1990, ch. 325, § 5, effective July 13, 1990.

152A.180. Administrative regulations. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 186, § 17, effective March 29, 1978) was repealed, reenacted, and amended as KRS 11.325 by Acts 1990, ch. 325, § 5, effective July 13, 1990.

Advisory Commission

152A.200. Energy resources advisory commission — Members. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1976, ch. 299, § 31) was repealed by Acts 1978, ch. 186, § 23, effective March 29, 1978.

Fossil Fuel and Hydrocarbon Research

152A.210. Definition. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section was originally codified as KRS 152.310 and was renumbered as KRS 152A.210 (Enact. Acts 1960, ch. 127, § 1; 1974, ch. 157, § 1; 1976, ch. 299, § 16; 1978, ch. 186, § 22, effective March 29, 1978; 1980, ch. 188, § 114, effective July 15, 1980) was repealed, reenacted, and amended as KRS 11.330 by Acts 1990, ch. 325, § 7, effective July 13, 1990. KRS 11.330 was subsequently repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

152A.220. Establishment of research program. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section which was originally codifed as KRS 152.320 and was renumbered as KRS 152A.220 (Enact. Acts 1960, ch. 127, § 2; 1974, ch. 157, § 2; 1976, ch. 299, § 17; 1978, ch. 186, § 22, effective March 29, 1978) was repealed, reenacted, and amended as KRS 11.335 by Acts 1990, ch. 325, § 8, effective July 13, 1990. KRS 11.335 was subsequently repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

152A.230. Duties of secretary. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section which was originally codified as KRS 152.330 and was renumbered as KRS 152A.230 (Enact. Acts 1960, ch. 127, § 3; 1974, ch. 157, § 3; 1976, ch. 299, § 16; 1978, ch. 186, § 18, effective March 29, 1978) was repealed, reenacted, and amended as KRS 11.340 by Acts 1990, ch. 325, § 9, effective July 13, 1990. KRS 11.340 was subsequently repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

152A.240. Powers of secretary. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section which was originally codified as KRS 152.340 and was renumbered as KRS 152A.240 (Enact. Acts 1960, ch. 127, § 3; 1974, ch. 157, § 3; 1976, ch. 299, § 16; 1978, ch. 186, § 18, effective March 29, 1978) was repealed, reenacted, and amended as KRS 11.345 by Acts 1990, ch. 325, § 10, effective July 13, 1990. KRS 11.340 was subsequently repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

152A.250. Office and employees. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 127, § 5; 1974, ch. 157, § 5; 1976, ch. 299, § 20; 1978, ch. 186, § 22, effective March 29, 1978) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.260. Study grants. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section was originally codified as KRS 152.360 and was renumbered as KRS 152A.260 (Enact. Acts 1960, ch. 127, § 6; 1974, ch. 157, § 6; 1976, ch. 299, § 21; 1978, ch. 186, § 22, effective March 29, 1978) was repealed, reenacted, and amended as KRS 11.350 by Acts 1990, ch. 325, § 11, effective July 13, 1990. KRS 11.350 was subsequently repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

152A.270. Interstate agreements. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section which was originally codified as KRS 152.380 and was renumbered as KRS 152A.270 (Enact. Acts 1960, ch. 127, § 8; 1974, ch. 157, § 7) was repealed, reenacted, and amended as KRS 11.355 by Acts 1990, ch. 325, § 12, effective July 13, 1990. KRS 11.355 was subsequently repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

152A.280. Extension of program into state schools. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1960, ch. 127, § 9; 1974, ch. 157, § 8; 1976, ch. 299, § 22; 1978, ch. 155, § 104, effective June 17, 1978; 1978, ch. 186, § 22, effective March 29, 1978) was repealed, reenacted, and amended as KRS 11.360 by Acts 1990, ch. 325, § 13, effective July 13, 1990.

Legislative Research Commission Note.

(7/13/90) The former KRS 152A.280 , as amended by the 1990 Regular Session, has been renumbered by the Reviser of Statutes as KRS 11.360 pursuant to KRS 7.136(1).

Kentucky Coal Authority

152A.300. Definitions for KRS 152A.300 to 152A.325. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 310, § 1, effective July 13, 1990) was repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

152A.305. Kentucky Coal Authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 310, § 2, effective July 13, 1990) was repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

152A.310. Terms of members. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 310, § 3, effective July 13, 1990) was repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

152A.315. Duties and functions of authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 310, § 4, effective July 13, 1990) was repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

152A.320. Powers of authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 310, § 5, effective July 13, 1990) was repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

152A.325. Revenue bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 310, § 6, effective July 13, 1990) was repealed by Acts 1994, ch. 277, § 11, effective July 15, 1994.

Energy Research

152A.400. Kentucky center for energy research. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1976, ch. 299, § 14) was repealed by Acts 1978, ch. 186, § 23, effective March 29, 1978.

152A.410. Board of energy research — Members — Duties. [Repealed.]

Compiler’s Notes.

This section (Acts 1976, ch. 299, § 15; 1978, ch. 155, § 80) was repealed by Acts 1978, ch. 186, § 23, effective March 29, 1978.

Legislative Research Commission Note.

This section was also amended by Acts 1978, ch. 155, § 80. The later repeal by Acts 1978, ch. 186, § 23 prevails.

Energy Park Authority

152A.501. Definitions for KRS 152A.503 to 152A.543. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 1, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.503. Chemical/energy park authority — Membership — Powers — Compensation — Quorum — Chairman — Appointive employes. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 2, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.505. Powers of authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 3, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.507. Written agreements to finance or refinance projects. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 4, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.509. Agreements between authority and lessee. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 5, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.511. Issuance of revenue bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 6, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.513. Bonds not a debt of Commonwealth. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 7, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.515. Bonds may be secured by a trust indenture between authority and corporate trustee — Contents of indenture. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 8, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.517. Enforcement of rights by bondholder or trustee. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 9, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.519. Status of bonds as investments.

Bonds issued by the authority are securities in which all public officers and public bodies, agencies, and instrumentalities of the Commonwealth and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees and other fiduciaries, and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or other obligations of a similar nature may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the Commonwealth for any purpose for which the deposit of bonds or other obligations of the Commonwealth is now or may hereafter be authorized by law.

History. Enact. Acts 1980, ch. 257, § 10, effective July 15, 1980.

152A.521. Revenue refunding bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 11, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.523. Proceeds of bonds and revenues are trust funds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 12, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.525. Property held by authority and bonds issued by authority tax exempt. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 13, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.527. Purchases by authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 14, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.529. Maintenance of completed project by lessee. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 15, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.531. Disposal of project by authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 16, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.533. Damage to private property. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 17, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.535. Project studies by department. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 18, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.537. Annual report and audit. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 19, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.539. Prohibited activity. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 20, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.541. KRS 152A.503 to 152A.543 not in derogation of powers now existing. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 21, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.543. No bonds to be issued except on approval of capital projects and bond oversight committee, interim joint appropriations and revenue committee or standing appropriations and revenue committee. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 22, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

152A.545. Nonseverability of provisions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 23, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

Penalty

152A.990. Penalty. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 257, § 20, effective July 15, 1980) was repealed by Acts 1990, ch. 325, § 37, effective July 13, 1990.

CHAPTER 153 The Arts — State Zoo

Department of Public Information

153.005. Definition. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1962, ch. 106, Art. VII, § 1; 1966, ch. 255, § 146) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

153.010. Department of public information created — Commissioner to head — Purpose. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. VIII, § 1) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

153.020. Duties of department — How performed — Donations — Allocation of costs. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. VIII, § 2) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

153.021. Related services. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 74, Art. VIII F, § 1) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

153.030. Property, records, personnel, appropriation balance, trust and agency funds of Division of Publicity; transfer to department. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. VIII, § 3) was repealed by Acts 1968, ch. 152, § 168.

Department of Tourism

153.070. Department of tourism — Commissioner. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 94, § 3, effective July 1, 1979) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

153.075. Duties of department. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 94, § 4, effective July 1, 1979) was repealed by Acts 1982, ch. 396, § 58, effective July 15, 1982.

State Theatre of Kentucky

153.110. State theatre of Kentucky — Activities — Accreditation of college credits.

Actors Theatre of Louisville is hereby designated and declared to be the state theatre of Kentucky. The state theatre, so designated and declared, may be engaged to present public plays and performances at any and all of the state parks throughout the Commonwealth, may create and present public plays and performances throughout the Commonwealth and may meet with regional groups to help develop ideas in drama, pageants and centennials, help in tourist promotion, create a playwrights’ center and art colony, and offer accreditation of college credits through the state colleges and universities.

History. Enact. Acts 1962, ch. 148, § 1; 1974, ch. 380, § 1.

Opinions of Attorney General.

The pioneer school of drama is not a state agency to the extent that a deed to it automatically puts the title in the Commonwealth. OAG 70-234 .

Research References and Practice Aids

Cross-References.

Kentucky Commonwealth Theatre, designation, KRS 2.220 .

153.120. Tuition — Admission — Performances in state parks — Expenditures.

  1. The state theatre may charge tuition for attending the school of drama and may charge the public admission for attending the plays and performances, and this shall be the primary income of the state theatre.
  2. The commissioner of parks is authorized to enter into such contracts and make such guarantees to the state theatre for the presentment of their plays in state parks as shall be approved by the Finance and Administration Cabinet.
  3. The income so received shall be used by the state theatre to meet the cost of expenses of the productions and the operation of the school, the depreciation or replacement of equipment, and reasonable compensation to the officers and employees of the state theatre.

History. Enact. Acts 1962, ch. 148, § 2; 1974, ch. 74, Art. II, § 9(1).

153.130. Gifts and scholarships.

The commissioner of parks is authorized to accept gifts, donations, bequests and scholarships for the use and benefit of the state theatre.

History. Enact. Acts 1962, ch. 148, § 3.

Research References and Practice Aids

Cross-References.

Private funds and contributions, KRS 41.290 .

153.140. Powers of state theatre.

Nothing in KRS 153.110 to 153.140 shall be construed as prohibiting the state theatre from:

  1. Receiving gifts, donations, bequests and scholarships directly from a benefactor;
  2. Receiving a direct appropriation from the General Assembly; or
  3. Presenting public plays and performances at places other than the various state parks.

History. Enact. Acts 1962, ch. 148, § 4.

153.180. Kentucky Foundation for the Arts — Purpose — Funding — Board of trustees — Support staff — Annual report.

  1. There is hereby established a nonprofit foundation to be known as the Kentucky Foundation for the Arts. The purpose of the foundation shall be to enhance the stability of Kentucky’s arts organizations and to ensure Kentuckians have access to the arts through the support of an endowment fund.
  2. Funding for the foundation shall be obtained through state appropriations, gifts, grants, and any other funds from the public and private sectors. The foundation board shall have the authority to solicit, accept, and receive contributions from the public and private sectors to match public funding. Moneys in the foundation fund shall not lapse to the general fund at the end of the fiscal year. Moneys in the foundation fund shall be invested by the Office of Financial Management established in KRS 42.0201 consistent with the provisions of KRS Chapter 42, and interest income earned shall be credited to the foundation fund. The foundation board may use the investment income for the purpose of awarding matching grants to nonprofit arts organizations to carry out the following programs:
    1. The Performing Arts and Visual Arts Touring Subsidy Program shall support tours and exhibitions for the education and enjoyment of audiences throughout the state; and
    2. The Institutional Stabilization Program shall provide operating funds to achieve short-term or long-term stability of arts organizations.
  3. The foundation shall be governed by a board of trustees consisting of six (6) members appointed by the Governor on recommendations from the Kentucky Arts Council. For the initial appointments, the Governor shall appoint two (2) members to serve two (2) year terms; two (2) members to serve three (3) year terms; and two (2) members to serve four (4) year terms. Thereafter, the Governor shall make all appointments for a term of four (4) years. The board shall elect by majority vote a chair and other officers deemed necessary. Board members shall not receive any compensation for their services, but may be reimbursed in accordance with the provisions of KRS 49.040 and 45.101 for actual and necessary expenses incurred in the performance of their duties.
  4. The foundation board shall perform duties and responsibilities deemed necessary to fulfill the purposes of this section. The foundation board shall establish by administrative regulation procedures for administration of the foundation, eligibility criteria for the award of grants, appropriate matching contributions from grant recipients, and evaluation and reporting requirements.
  5. The foundation shall be attached to the Office of the Secretary of the Tourism, Arts and Heritage Cabinet for administrative purposes only. The Kentucky Arts Council shall provide to the foundation by agreement staff support and office facilities for which reasonable charges and fees may be levied against the foundation fund.
  6. The foundation board shall submit an annual report to the Governor and the Legislative Research Commission listing the sources of funds acquired and expended.

HISTORY: Enact. Acts 1998, ch. 588, § 1, effective July 15, 1998; 2000, ch. 46, § 25, effective July 14, 2000; 2005, ch. 85, § 568, effective June 20, 2005; 2005, ch. 95, § 29, effective June 20, 2005; 2009, ch. 16, § 33, effective June 25, 2009; 2017 ch. 74, § 90, effective June 29, 2017.

Promotion of the Arts

153.210. Definitions for KRS 153.210 to 153.235.

As used in KRS 153.210 to 153.235 :

  1. The term “the arts” means endeavors which involve the application of skills or practice of esthetic principles or theories in the expression of beauty in form, color, sound, speech, or movement with a desired end of creating objects of imagination or taste for their own sake and without relation to the utility of the object produced. If the above stated criteria are met, the term “the arts” may include, but is not limited to, the following specific activities: music (all forms, and instrumental or vocal), dance, drama, folk art, creative writing, painting, sculpture, photography, graphic and craft arts, costume and fashion design, motion pictures, television, radio, tape and sound recording, and the arts related to the presentation, performance, execution, and exhibition of major art forms.
  2. The term “production” means plays (with or without music), ballet, dance and choral performances, concerts, recitals, operas, exhibitions, readings, motion pictures, television, radio, tape and sound recordings, and any other activities involving the execution or rendition of the arts in the Commonwealth, and meeting the standards that may be approved by the council hereinafter established by KRS 153.210 to 153.235 .
  3. The term “project” means any programs organized to carry out the purposes of KRS 153.210 to 153.235 , including programs to foster Kentucky’s artistic creativity, to commission works of art with a pertinence to Kentucky, to create opportunities for residents of the Commonwealth to develop artistic talents when carried on as a part of a program otherwise included in this definition, and to develop and enhance public knowledge and understanding in the Commonwealth of the arts. It also includes, where appropriate, the rental, purchase, or other acquisition of real property or any interest therein, and the rental, purchase, or other acquisition of equipment, supplies, materials, and other personal property.
  4. The term “workshop” means a production, the primary purpose of which is to encourage the artistic development of amateur, student, or other nonprofessional participants who are residents of the Commonwealth.
  5. The term “group” may include any state or other public agency, and any nonprofit society, institution, organization, association, museum, or establishment in Kentucky, whether or not incorporated.

History. Enact. Acts 1966, ch. 87, § 2(1); 1992, ch. 159, § 5, effective July 14, 1992.

153.215. Kentucky Arts Council — Functions — Purpose — Members — Compensation — Officers — Meetings.

  1. There is established the Kentucky Arts Council (hereinafter referred to as “the council”) which shall perform functions pursuant to KRS 153.210 to 153.235 .
  2. The purpose of the council shall be to develop and promote a broadly conceived state policy of support for the arts in Kentucky pursuant to KRS 153.210 to 153.235 .
  3. The Governor shall appoint members to the council. The council shall consist of not more than fifteen (15) members who have an interest in the arts and have the ability and experience to provide broad expertise in operation of the council. Members shall reflect the diverse interests of the arts community to the extent such diversity is possible. At least one (1) member shall represent each of the following areas: education, economic development, and workforce development. The Governor shall appoint three (3) members for a term to expire on November 18, 2017;  five (5) members for a term to expire on November 18, 2018; four (4) members for a term to expire on November 18, 2019; and three (3) members for a term to expire on November 18, 2020. Thereafter the Governor shall make all appointments for a term of four (4) years
  4. Council members shall not receive any compensation for their services, but may be reimbursed in accordance with the provisions of KRS Chapters 44 and 45 for actual and necessary expenses incurred in the performance of their duties under KRS 153.210 to 153.235 .
  5. From the council membership the Governor shall appoint a chair and a vice chair of the council who shall serve at the pleasure of the Governor. The council may elect by majority vote other officers deemed necessary. The chair shall not be represented by a proxy. Should the chair be unavailable, the vice chair shall serve in the chair’s stead.
  6. The council shall meet at the call of the chair , but not less often than three (3) times during each calendar year. A majority of the members appointed to the council shall constitute a quorum.
  7. The council shall be attached to the Tourism, Arts and Heritage Cabinet as a department within the meaning of KRS Chapter 12.
  8. The council shall be headed by an executive director appointed by the secretary of the Tourism, Arts and Heritage Cabinet and confirmed by majority vote of the council.

HISTORY: Enact. Acts 1966, ch. 87, § 2(2) to (8); 1972, ch. 102, § 1; 1982, ch. 396, § 28, effective July 15, 1982; 1992, ch. 159, § 6, effective July 14, 1992; 1998, ch. 194, § 2, effective July 15, 1998; 1998, ch. 283, § 1, effective July 15, 1998; 2005, ch. 95, § 30, effective June 20, 2005; 2009, ch. 16, § 34, effective June 25, 2009; 2017 ch. 132, § 1, effective June 29, 2017.

153.220. Duties and functions of arts council.

The duties and functions of the arts council shall be to:

  1. Stimulate and encourage throughout the state the study and presentation of the arts, and foster public interest and participation therein;
  2. Encourage public interest in the cultural heritage of our state and expand the state’s cultural resources;
  3. Encourage and assist freedom of artistic expression essential for the well-being of the arts;
  4. Serve as the sole agency in the Commonwealth for administration of a state arts plan developed in coordination with the Tourism, Arts and Heritage Cabinet;
  5. Establish standards and procedures and advisory committees as necessary to advise the Governor on the selection of the Kentucky poet laureate or writer laureate;
  6. Advise the Governor on matters pertaining to the arts;
  7. Adopt and promulgate regulations for the performance of its duties and functions provided in KRS 153.210 to 153.235 ;
  8. Receive federal grants, and other money and property of any nature whatsoever which may be given, donated, conveyed, bequeathed, devised, or otherwise transferred, without condition or restriction, except that provided by law, other than that it be used for some purpose of the council as permitted by KRS 153.210 to 153.235 ;
  9. Contract from time to time, as appropriate, with experts and consultants who may be utilized as deemed necessary, and make other necessary purchases and expenditures, all in accordance with the state plan approved by the secretary of the Tourism, Arts and Heritage Cabinet and with the state purchasing provisions of KRS Chapters 45 and 45A;
  10. Hold public and private hearings for the purpose of furthering the objectives of the council’s programs; and
  11. Make and sign any agreements, subject to the provisions of KRS Chapters 45 and 45A, and do and perform any acts that may be necessary to carry out the purposes of KRS 153.210 to 153.235 .

History. Enact. Acts 1966, ch. 87, § 2(9); 1982, ch. 396, § 29, effective July 15, 1982; 1990, ch. 65, § 2, effective July 13, 1990; 1992, ch. 159, § 7, effective July 14, 1992; 1994, ch. 209, § 9, effective July 15, 1994; 2006, ch. 211, § 60, effective July 12, 2006; 2009, ch. 16, § 35, effective June 25, 2009.

153.225. Receipt and disbursement of federal funds.

The council is the official agency of the Commonwealth to receive and disburse any funds made available to the state government by the federal government for any programs related to the arts; provided, however, that such funds are not expressly intended for some other agency of the Commonwealth, or that some other agency is not deemed a more appropriate recipient.

History. Enact. Acts 1966, ch. 87, § 2(10); 1982, ch. 396, § 30, effective July 15, 1982.

153.230. Annual report of council.

The council shall submit an annual report to the Governor before the 15th day of August each year, summarizing the council’s activities, expenditures, and grants of money or property from all sources for the preceding year, including such recommendations as the council deems appropriate.

History. Enact. Acts 1966, ch. 87, § 2(11); 1982, ch. 396, § 31, effective July 15, 1982.

153.233. Entity producing or financing arts and receiving $25,000 or less from state or local governmental units — Exemption from open meetings and open records requirements.

An entity involved in producing or financing arts on a local or statewide basis, since the inception of fiscal year 2004-2005, which received a total of twenty-five thousand dollars ($25,000) or less as a result of appropriations or grants from state or local governmental units, shall be exempt from the requirements of:

  1. KRS 61.805 to 61.850 ; and
  2. KRS 61.870 to 61.884 .

HISTORY: 2018 ch. 171, § 18, effective April 14, 2018; 2018 ch. 207, § 18, effective April 27, 2018.

Legislative Research Commission Notes.

(4/27/2018). This statute was created by 2018 Ky. Acts ch. 171, sec. 18 and ch. 207, sec. 18 which are identical and have been codified together.

153.235. Grants-in-aid to promote the arts — Funds, how handled — Property, how held.

  1. The council may establish and carry out a program of grants-in-aid to groups or, in appropriate cases, to individuals engaged in or concerned with the arts for the purpose of enabling them to provide or support in Kentucky any of the following:
    1. Productions which have substantial artistic and cultural significance, giving emphasis to creativity and the maintenance and encouragement of professional excellence;
    2. Projects which will encourage and assist artists and enable them to achieve standards of professional excellence;
    3. Workshops which will encourage and develop the appreciation and enjoyment of the arts by residents of the Commonwealth; and
    4. Other relevant projects, giving emphasis to creativity, including surveys, research, and planning in the arts.
  2. Any group or individual desirous of receiving a grant-in-aid must submit an application to the council that shall contain such data as the council may require.
  3. The receipt, control, and expenditure of funds shall be subject to the general provisions of the Kentucky Revised Statutes governing financial administration of all state agencies. Any real property acquired shall be held in the name of the Commonwealth for the use and benefit of the council; and the acquisition, control, or disposal of such property shall be subject to the applicable provisions of KRS Chapters 45, 45A and 56.

History. Enact. Acts 1966, ch. 87, § 2(12); 1982, ch. 396, § 32, effective July 15, 1982.

153.240. Department of the Arts — Divisions — Citizens Advisory Board. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 396, §§ 26, 27, effective July 15, 1982; 1990, ch. 484, § 7, effective July 13, 1990) was repealed by Acts 1992, ch. 159, § 10, effective July 14, 1992.

Historical Events Celebration Commission

153.310. Definition for KRS 153.320 to 153.370. [Repealed]

History. Enact. Acts 1970, ch. 128, § 1; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1970, ch. 128, § 1) was repealed by Acts 2017, ch. 80, § 58; effective June 29, 2017.

153.320. Kentucky Historical Events Celebration Commission — Members — Expiration of commission. [Repealed]

History. Enact. Acts 1970, ch. 128, § 2; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1970, ch. 128, § 2) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

153.330. Commission to establish executive committee — Meetings. [Repealed]

History. Enact. Acts 1970, ch. 128, § 3; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1970, ch. 128, § 3) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

153.340. Commission’s purpose — Reports — Duties. [Repealed]

History. Enact. Acts 1970, ch. 128, § 4; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1970, ch. 128, § 4) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

153.350. Powers of commission. [Repealed]

History. Enact. Acts 1970, ch. 128, § 5; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1970, ch. 128, § 5) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

153.360. Commission members’ expenses — Compensation — Disbursement of funds. [Repealed]

History. Enact. Acts 1970, ch. 128, § 6; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1970, ch. 128, § 6) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

153.370. Commission membership not to be incompatible with state office. [Repealed]

History. Enact. Acts 1970, ch. 128, § 7; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1970, ch. 128, § 7) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

Oral History Commission

153.380. Kentucky Oral History Commission — Membership — Officers — Duties.

  1. There is established the Kentucky Oral History Commission, hereinafter referred to as “the commission,” which shall be attached to the Kentucky Historical Society as a branch of the Oral History and Educational Outreach Division.
  2. The commission, through funds made available from the State Treasury and from public or private foundations or other sources, shall coordinate, promote, and assist in the development of oral history programs across the state and shall otherwise implement programs which result in the accumulation of taped interviews and other supporting data which preserve the multifaceted history of the Commonwealth.
  3. The commission shall consist of twelve (12) voting members, ten (10) appointed by the Governor. The commissioner of the Department for Libraries and Archives and the executive director of the Kentucky Historical Society shall serve as ex officio members. Commission members shall serve without compensation but shall be reimbursed for actual and necessary expenses incurred in the performance of their duties.
  4. After initial appointments, commission members shall be appointed for a four (4) year term, except that of the members appointed after July 15, 1998, three (3) members appointed to fill the terms expiring July 15, 1999, shall serve until February 15, 2000; two (2) members appointed to fill the terms expiring July 15, 2000, shall serve until February 15, 2001; three (3) members appointed to fill the terms expiring July 15, 2001, shall serve until February 15, 2002; and two (2) members appointed to fill the terms expiring July 2, 2002, and July 15, 2002, shall serve until February 15, 2003; and subsequent appointments shall be for four (4) year staggered terms ending on February 15. Upon the expiration of terms or in case of vacancies, terms shall be filled by the Governor.
  5. The commission shall, upon the appointment of its members, organize and elect officers from its membership. The commission shall choose, by a majority vote, a chairperson and a vice chairperson annually. The commission shall meet upon call of the chairman or by a majority of the members of the commission, but no less than twice each year. A majority of the voting members of the commission shall constitute a quorum for the purpose of conducting the business of the commission.
  6. The commission shall serve in an advisory capacity to oral history activities at the Kentucky Historical Society and shall be the final grant approval authority for all funds collected by or appropriated to the commission.
  7. The Kentucky Historical Society shall hire staff, expend funds, and operate the normal business activities required by the commission, which shall include the duty to provide:
    1. Office space;
    2. Administrative support;
    3. Telephone and other utilities;
    4. Storage or processing of oral history tapes; and
    5. Other activities of a support nature.

HISTORY: Enact. Acts 1976, ch. 360, § 1; 1982, ch. 364, § 1, effective July 15, 1982; 1988, ch. 264, § 1, effective July 15, 1988; 1994, ch. 209, § 3, effective July 15, 1994; 1998, ch. 194, § 3, effective July 15, 1998; 2015 ch. 69, § 4, effective June 24, 2015.

NOTES TO DECISIONS

1.Constitutionality.

The provisions in this section by which the Legislative Research Commission (LRC) is empowered to make appointments to the Kentucky Oral History Commission within the executive branch of the government constitute an impermissible incursion by the LRC into the separation of powers doctrine of the Constitution. Legislative Research Com. by Prather v. Brown, 664 S.W.2d 907, 1984 Ky. LEXIS 300 ( Ky. 1984 ) (Decision prior to 1988 amendment).

Research References and Practice Aids

Kentucky Law Journal.

Snyder and Irland, The Separation of Governmental Powers Under the Constitution of Kentucky: A Legal and Historical Analysis of L.R.C. v. Brown, 73 Ky. L.J. 165 (1984-85).

Kentucky Bicentennial Commission

153.386. Definition. [Repealed]

History. Enact. Acts 1986, ch. 45, § 1, effective July 15, 1986; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1986, ch. 45, § 1, effective July 15, 1986), was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

153.388. Kentucky Bicentennial Commission created — Appointment of members — Terms. [Repealed]

History. Enact. Acts 1986, ch. 45, § 2, effective July 15, 1986; 1992, ch. 206, § 1, effective July 14, 1992; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1986, ch. 45, § 2, effective July 15, 1986; 1992, ch. 206, § 1, effective July 14, 1992) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

153.390. Duties of the commission. [Repealed]

History. Enact. Acts 1986, ch. 45, § 3, effective July 15, 1986; 1990, ch. 498, § 1, effective July 13, 1990; 1992, ch. 206, § 2, effective July 14, 1992; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1986, ch. 45, § 3, effective July 15, 1986; 1990, ch. 498, § 1, effective July 13, 1990; 1992, ch. 206, § 2, effective July 14, 1992) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

153.392. Powers of commission. [Repealed]

History. Enact. Acts 1986, ch. 45, § 4, effective July 15, 1986; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1986, ch. 45, § 4, effective July 15, 1986) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

153.394. Executive committee — Meetings. [Repealed]

History. Enact. Acts 1986, ch. 45, § 5, effective July 15, 1986; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1986, ch. 45, § 5, effective July 15, 1986) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

153.396. Reimbursement for expenses. [Repealed]

History. Enact. Acts 1986, ch. 45, § 6, effective July 15, 1986; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1986, ch. 45, § 6, effective July 15, 1986) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

153.398. Kentucky bicentennial celebration trust fund. [Repealed]

History. Enact. Acts 1992, ch. 206, § 3, effective July 14, 1992; repealed by 2017 ch. 80, § 58, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1992, ch. 206, § 3, effective July 14, 1992) was repealed by Acts 2017, ch. 80, § 58, effective June 29, 2017.

Kentucky Center for the Arts

153.400. Legislative findings and conclusions.

  1. It is the finding of the General Assembly that cultural opportunities and the arts have a direct and positive impact on the hotel industry through promotion of tourism and convention trade. The Kentucky Center for the Arts will serve as catalyst in the development of Louisville and Jefferson County as a major convention and entertainment center. The Kentucky Center for the Arts Corporation will have as management priority the stimulation of the Jefferson County hotel industry and promotion of tourism through:
    1. The presentation of Kentucky and Louisville-area and nationally and internationally prominent arts activities which will attract regional audiences;
    2. Regional and national promotion of events occurring within the Commonwealth, along with ancillary services and activities;
    3. The development, in conjunction with local hotels and the arts and entertainment industry, of tourist packages including performance and group plans;
    4. The active solicitation of arts related conferences and conventions;
    5. The active participation with local hotels and convention bureaus in attracting non-arts related conferences and conventions, with the center serving as an important amenity;
    6. The development of a Kentucky folklore program which will attract participants and an audience from throughout the state;
    7. The contribution to cultural diversity and the attractiveness of Louisville and Jefferson County as a year-round tourist and entertainment attraction.
  2. For these reasons, the General Assembly concludes that the dedication of additional revenues from the increased transient room tax authorized in counties containing first class cities to the Kentucky Center for the Arts Corporation will directly benefit the Jefferson County hotel industry, and that this dedication symbolizes the integral relationship between the Kentucky center and promotion of the Jefferson County hotel industry, created by KRS 153.400 to 153.460 .

History. Enact. Acts 1980, ch. 382, § 1, effective April 9, 1980; 1990, ch. 1, § 1, effective July 13, 1990.

NOTES TO DECISIONS

1.Interest in Litigation.

In an action against a construction company for breach of contract for deficiencies and defective work in the construction of the Kentucky Center for the Arts, the Kentucky Center for the Arts had a significant interest in the litigation, notwithstanding the fact that it did not possess a legal interest or title in the property; therefore, it was a real party in interest entitled to bring the action. Kentucky Center for Arts v. Whittenberg Engineering & Constr. Co., 746 S.W.2d 71, 1987 Ky. App. LEXIS 593 (Ky. Ct. App. 1987).

153.410. Kentucky Center for the Arts Corporation.

  1. The Kentucky Center for the Arts Corporation is hereby established, and shall consist of nineteen (19) members representing metropolitan Louisville and Kentucky to be appointed by the Governor, who shall also designate a chairman. Initial terms shall be staggered; thereafter, members shall be appointed to four (4) year terms.
  2. Members may be removed by the Governor only for cause after being afforded notice, a hearing with counsel before the Governor or his designee, and a finding of fact by the Governor. A copy of charges, transcript of the record of the hearings, and findings of fact shall be filed with the Secretary of State.
  3. The Kentucky Center for the Arts Corporation shall be a body corporate with full corporate powers. A quorum of the corporation shall consist of ten (10) members, with a majority of members present authorized to act upon any matter legally before the corporation. Full minutes and records shall be kept of all meetings of the corporation and all official actions shall be recorded.
  4. The corporation may enact bylaws concerning the election of other officers, the creation of an executive committee with full authority to act between regular meetings, and the designation of alternates for members with full voting authority.
  5. The corporation shall be attached to the Tourism, Arts and Heritage Cabinet for administrative purposes.

HISTORY: Enact. Acts 1980, ch. 295, § 37, effective July 15, 1980; 1980, ch. 382, § 2, effective April 9, 1980; 1992, ch. 66, § 2, effective July 14, 1992; 1994, ch. 209, § 4, effective July 15, 1994; 2005, ch. 95, § 31, effective June 20, 2005; 2009, ch. 16, § 36, effective June 25, 2009; 2015 ch. 105, § 1, effective June 24, 2015.

NOTES TO DECISIONS

1.Interest in Litigation.

In an action against a construction company for breach of contract for deficiencies and defective work in the construction of the Kentucky Center for the Arts, the Kentucky Center for the Arts had a significant interest in the litigation, notwithstanding the fact that it did not possess a legal interest or title in the property; therefore, it was a real party in interest entitled to bring the action. Kentucky Center for Arts v. Whittenberg Engineering & Constr. Co., 746 S.W.2d 71, 1987 Ky. App. LEXIS 593 (Ky. Ct. App. 1987).

2.Sovereign Immunity.

The Kentucky Center for the Arts Corporation is not under the “direction and control” of the central state government but of its directors who are appointed for four year terms and act autonomously and cannot be removed except for cause; given this, coupled with the fact that the purpose of the Arts Corporation is to provide entertainment, albeit in the name of promoting tourism, and thus the economic welfare of Louisville and Jefferson County, these facts compel the conclusion that the constitutional fathers would not view this activity as qualifying for sovereign immunity. Kentucky Center for Arts Corp. v. Berns, 801 S.W.2d 327, 1990 Ky. LEXIS 142 ( Ky. 1990 ).

The line between what is a state agency and what is a municipal corporation is not divided by whether the entity created by state statute is or is not a city, but whether, when viewed as a whole, the entity is carrying out a function integral to state government and the Kentucky Center for the Arts Corporation does not qualify for sovereign immunity under this concept. Kentucky Center for Arts Corp. v. Berns, 801 S.W.2d 327, 1990 Ky. LEXIS 142 ( Ky. 1990 ).

Cited:

Hutsell v. Sayre, 5 F.3d 996, 1993 U.S. App. LEXIS 24888 (6th Cir. 1993).

Opinions of Attorney General.

The Center for the Arts Corporation, which was created to manage the Center for the Arts as an agency of the Commonwealth, is an agency of the Commonwealth as that term is used in subsection (2) of KRS 44.073 , for purposes of the Board of Claims Act. OAG 86-44 .

153.420. Powers and duties of corporation.

The Kentucky Center for the Arts Corporation:

  1. Shall supervise construction of the Kentucky Center for the Arts in conjunction with the Finance and Administration Cabinet, and shall provide all management functions for the facility and for any other property acquired or leased pursuant to its powers under this section;
  2. May take, acquire and hold property, and all interests therein, by deed, purchase, gift, devise, bequest, lease or eminent domain, or by transfer from the State Property and Buildings Commission, and may dispose of any property so acquired in any manner provided by law. In the exercise of its power of eminent domain, it shall proceed in the manner provided in the Eminent Domain Act of Kentucky, KRS 416.540 to 416.680 ;
  3. May consult or enter into agreements with other segments of the arts and entertainment industry to provide technical, professional, or management support or assistance, consistent with its purpose and mission;
  4. May issue revenue bonds, subject to procedures which shall be established by the Finance and Administration Cabinet, solely payable from the charges, revenues, rentals, and other funds pledged for their payment for the purpose of paying all or any part of the cost of any project or for the acquisition of property;
  5. Shall promote the growth and development of the arts, convention trade, tourism and the hotel industry within Jefferson County and the Commonwealth, through utilization of the Kentucky center and activities authorized in this section to enhance these and the public interest;
  6. May adopt administrative regulations, as provided in KRS Chapter 13A, governing the operation, maintenance or use of property under its custody and control;
  7. May levy a surcharge on tickets for all functions held within the center to contribute to operating revenue;
  8. May receive tax revenues from any governmental unit, and financial contributions of local governments, private persons and foundations;
  9. Shall have exclusive control of all exhibitions, performances and concessions in the Center for the Arts. The corporation shall have a prior lien upon the property of any private exhibitor, concessionaire, or other person holding an exhibition or performance or operating a concession in the center, and may sell such property upon ten (10) days’ notice to satisfy any indebtedness;
  10. Shall develop in conjunction with local hotels, and the arts and entertainment industry, tourist packages including performance and group plans, and shall participate with local hotels and convention bureaus in attracting non-arts related conferences and conventions;
  11. May establish an executive committee from among its membership with full authority to act between its meetings to the extent delegated by the corporation;
  12. May sue and be sued and maintain and defend legal actions in its corporate name;
  13. May, if the corporation elects, be exempt from the provisions of KRS 56.065 to 56.180 , and, with the approval of the secretary of the Finance and Administration Cabinet and the Department of Insurance, purchase from the funds allotted to the corporation property insurance for buildings and contents from responsible insurance companies doing business in this state; and
  14. May purchase liability insurance for the protection of the corporation and its employees from liability arising in the operation of the center.

History. Enact. Acts 1980, ch. 295, § 38, effective July 15, 1980; 1980, ch. 382, § 3, effective April 9, 1980; 1988, ch. 189, § 1, effective July 15, 1988; 1990, ch. 1, § 2, effective July 13, 1990; 1992, ch. 66, § 1, effective July 14, 1992; 2010, ch. 24, § 190, effective July 15, 2010.

NOTES TO DECISIONS

1.Interest in Litigation.

In an action against a construction company for breach of contract for deficiencies and defective work in the construction of the Kentucky Center for the Arts, the Kentucky Center for the Arts had a significant interest in the litigation, notwithstanding the fact that it did not possess a legal interest or title in the property; therefore, it was a real party in interest entitled to bring the action. Kentucky Center for Arts v. Whittenberg Engineering & Constr. Co., 746 S.W.2d 71, 1987 Ky. App. LEXIS 593 (Ky. Ct. App. 1987).

Cited:

Hutsell v. Sayre, 5 F.3d 996, 1993 U.S. App. LEXIS 24888 (6th Cir. 1993).

153.430. Executive director — Staff — Use of revenues — Audit.

  1. The Kentucky Center for the Arts Corporation shall appoint an executive director, who shall hold office at its pleasure, and shall serve in a full-time capacity. The executive director shall be the chief administrative officer of the corporation and shall provide the staff direction and coordination in implementing the program and discharging the duties of the corporation. The executive director is authorized to act under direction of the corporation in employing necessary staff to perform its duties and exercise its powers as assigned by KRS 153.420 .
  2. The staff shall keep all minutes, records and orders of the corporation, and shall be responsible for preservation of all such documents, which are public records subject to KRS 61.870 to 61.884 . The staff shall also perform any other duties assigned by the executive director, with approval of the corporation.
  3. All revenues derived by the corporation from the use of the Kentucky Center for the Arts, or contributions to the Kentucky Center for the Arts from any other source as authorized in KRS 153.420 , shall be solely used to defray the expenses of the Kentucky Center for the Arts, including payment on debt, the cost of management and operation of its facilities, the creation of an adequate reserve for repair, replacement, debt service and capital improvements, and the procurance of insurance and promotional activities. Any additional revenues in excess of amounts necessary to defray the actual costs and expenses properly related to the conduct of any activity authorized in KRS 153.420 derived by the corporation from any other source, or as a result of any other activity authorized in KRS 153.420, shall similarly be used solely for the purposes enumerated in this section. An annual audit of all funds of the corporation and its affiliated entities shall be made by the State Auditor of Public Accounts, and reported to the Governor.

History. Enact. Acts 1980, ch. 295, § 39, effective July 15, 1980; 1980, ch. 382, § 4, effective April 9, 1980; 1990, ch. 1, § 3, effective July 13, 1990.

Opinions of Attorney General.

The Kentucky Center for the Arts Corporation may determine its personnel needs and hire accordingly, independent of the state government and the Department of Personnel, since this section provides in part that the executive director is authorized to act under the direction of the Corporation in employing necessary staff members. OAG 81-129 .

153.440. Levy of additional transient room tax by county containing city of the first class or consolidated local government.

In addition to the three percent (3%) transient room tax authorized by KRS 91A.390 , fiscal courts in counties containing cities of the first class or consolidated local governments may levy an additional transient room tax not to exceed one percent (1%) of the rent for every occupancy of a suite, room, or rooms, charged by all persons, companies, corporations, or other like or similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or like or similar accommodations’ businesses. All moneys collected from the tax authorized by this section shall be turned over to the Kentucky Center for the Arts Corporation and shall be used to defray operating costs of the Kentucky Center for the Arts.

History. Enact. Acts 1980, ch. 382, § 5, effective April 9, 1980; 2002, ch. 346, § 173, effective July 15, 2002.

153.450. Levy of additional transient room taxes by urban-county government — Restrictions on use of proceeds — Sunset.

  1. In addition to the four percent (4%) transient room tax authorized by KRS 91A.390 an urban-county government may levy an additional transient room tax not to exceed two percent (2%) of the rent for every occupancy of a suite, room, or rooms, charged by all persons, companies, corporations, or other like or similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or like or similar accommodations’ businesses.
  2. All additional moneys collected from the tax authorized by subsection (1) of this section shall be applied toward the retirement of bonds used to finance a nonprofit corporation which is created for the funding, construction, and management of a convention center in an urban-county, and to defray the operating costs of the nonprofit corporation.
    1. As used in this subsection, “project” means the renovation, expansion, or improvement of a convention center on or after July 15, 2016. (3) (a) As used in this subsection, “project” means the renovation, expansion, or improvement of a convention center on or after July 15, 2016.
    2. In addition to the levy authorized by subsection (1) of this section, an urban-county government may levy an additional transient room tax not to exceed two and one-half percent (2.5%) to provide funding for a project.
    3. Proceeds from the levy shall be used only for the direct expenditure for, or repayment of debt associated with, the project.
    4. The levy shall sunset upon completion of the project and repayment of all associated debt.

History. Enact. Acts 1980, ch. 382, § 7, effective April 9, 1980; 1986, ch. 11, § 2, effective July 15, 1986; 2000, ch. 158, § 1, effective July 14, 2000; 2016 ch. 137, § 1, effective July 15, 2016.

153.460. Levy of surcharge on tickets and on restaurant gross receipts by county containing city of first class or consolidated local government.

  1. As used in this section:
    1. “Multipurpose arena” means a facility whose principal use includes but is not limited to the exhibition of collegiate basketball competition;
    2. “Restaurant” means any facility operated for profit which has minimum seating capacity of fifty (50) people at tables and which receives less than fifty percent (50%) of its annual food and beverage income from the sale of alcohol.
  2. Fiscal courts in counties containing cities of the first class or consolidated local governments may levy:
    1. A ten percent (10%) surcharge on all tickets sold by a multipurpose arena located in the county and constructed after April 9, 1980; and
    2. A one-fourth of one percent (0.25%) tax on gross receipts from the sale of food and beverages of all restaurants located in the county.
  3. All moneys collected from the surcharge on tickets and the restaurant tax shall be placed in a fund to be used to defray operating expenses of any such multipurpose arena.

History. Enact. Acts 1980, ch. 382, § 8, effective April 9, 1980; 2002, ch. 346, § 174, effective July 15, 2002; 2012, ch. 125, § 5, effective July 12, 2012.

State Zoo

153.500. Designation of state zoo.

The Louisville Zoological Garden is hereby designated and declared to be the state zoo of Kentucky. The state zoo, so designated and declared, may create an educational center called the Metazoo, to serve the entire Commonwealth with a unique educational experience, may meet with regional and national groups to help develop ideas for research, conservation and housing of animals in simulated natural habitats, help in tourist promotion, create and offer visual presentations on the zoo and its programs throughout the Commonwealth, and be available to work with Kentucky’s colleges and universities in conjunction with accredited programs.

History. Enact. Acts 1980, ch. 122, § 1, effective July 15, 1980.

State Opera

153.510. Designation of Kentucky state opera.

The Kentucky Opera Association of Louisville is hereby designated and declared to be the state opera of Kentucky, with the right to adopt for itself or for any wholly owned subsidiary the title “Kentucky State Opera.” The state opera, so designated and declared, may create an educational department to increase knowledge and understanding of opera among people throughout the Commonwealth, present public performances throughout the Commonwealth, help in tourist promotion, be available to work with Kentucky colleges and universities in conjunction with accredited programs, and expand its activities through touring and other means to enhance the reputation of the Commonwealth as a major area of arts activity in the United States and throughout the world.

History. Enact. Acts 1982, ch. 404, § 1, effective July 15, 1982.

Kentucky Country Music Hall of Fame

153.520. Designation of Kentucky Country Music Hall of Fame.

The Kentucky Country Music Hall of Fame, Inc., of Renfro Valley is hereby designated and declared as the Kentucky Country Music Hall of Fame.

History. Enact. Acts 1988, ch. 67, § 1, effective July 15, 1988.

Citizens Advisory Commission on Kentucky Films

153.530. Citizens Advisory Commission on Kentucky Films — Powers and duties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 406, § 1, effective July 13, 1990; 1992, ch. 159, § 8, effective July 14, 1992; 1996, ch. 194, § 12, effective July 15, 1996) was repealed by Acts 1998, ch. 48, § 22, effective July 15, 1998.

Literary Activity

153.600. Appointment of Kentucky state poet laureate or writer laureate.

  1. Every two (2) years the Governor may appoint a Kentucky state poet laureate or writer laureate for a maximum term of two (2) years.
  2. The duties of the poet laureate or writer laureate shall be to:
    1. Make a presentation on Kentucky Writers’ Day as authorized in KRS 153.620 ;
    2. Act as a writing consultant to the State Department of Education and Kentucky Department for Libraries and Archives.
  3. The Kentucky poet laureate or writer laureate shall serve without salary except that he may be reimbursed for expenses.

History. Enact. Acts 1990, ch. 65, § 1, effective July 13, 1990.

153.620. Kentucky Writers’ Day.

  1. April 24 of each year is declared to be “Kentucky Writers’ Day.”
  2. The Tourism, Arts and Heritage Cabinet may plan and direct a yearly event on April 24 honoring Kentucky writers. These plans may include designing programs for schools and civic or business organizations.

History. Enact. Acts 1990, ch. 65, § 3, effective July 13, 1990; 1992, ch. 159, § 9, effective July 14, 1992; 1994, ch. 209, § 10, effective July 15, 1994; 2006, ch. 211, § 61, effective July 12, 2006; 2009, ch. 16, § 37, effective June 25, 2009.

153.630. Central clearinghouse for information on Kentucky authors.

The Kentucky Department for Libraries and Archives shall establish and maintain, as funds permit, a central clearinghouse for information on Kentucky authors, including a statewide locator index of works and collections held by libraries in Kentucky.

History. Enact. Acts 1990, ch. 65, § 4, effective July 13, 1990.

153.640. Fund established.

  1. There is hereby established a fund to carry out the purposes of KRS 153.600 , 153.620 , and 153.630 .
  2. The fund shall consist of all revenues derived from donations, grants from governmental or private sources, or state appropriations.

History. Enact. Acts 1990, ch. 65, § 5, effective July 13, 1990.

CHAPTER 154 Development

154.001 to 154.780. Development. [Repealed or Renumbered.]

Compiler’s Notes.

The following sections comprising former KRS Chapter 154 were repealed or renumbered as indicated by the note following the section designation in the following table. The sections were renumbered by the Reviser of Statutes under authority of KRS 7.136 and 7.140 .

Also certain sections of former KRS Chapters 152, 154B, 155, and 157 were renumbered by the Reviser in 1992 to become a part of the present KRS Chapter 154. For the disposition of those sections, see the Parallel Reference Table following KRS Chapter 154.

154.001 . Renumbered as 154.20-029 .

154.005. Renumbered as 154.20-030 .

154.010. Definitions. [Repealed.] (7/14/92) This section was amended by the 1992 Regular Session of the General Assembly and also repealed. Pursuant to KRS 446.260 , the repeal prevails. This section (Enact. Acts 1958, ch. 152, § 3; 1962, ch. 116, § 1; 1978, ch. 96, § 3, effective July 1, 1978; 1980, ch. 340, § 2, effective July 15, 1980; 1986, ch. 201, § 1, effective July 15, 1986; 1988, ch. 383, § 2, effective July 15, 1988; 1990, ch. 267, § 2, effective July 13, 1990; 1990, ch. 306, § 1, effective July 13, 1990) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.020. Kentucky development finance authority — Members — Compensation — Quorum. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 4; 1960, ch. 88, § 1; 1964, ch. 78, § 1; 1976, ch. 214, § 6; 1978, ch. 96, § 4, effective July 1, 1978; 1980, ch. 340, § 3, effective July 15, 1980; 1982, ch. 396, § 33, effective July 15, 1982; 1984, ch. 404, § 17, effective July 13, 1984; 1988, ch. 383, § 3, effective July 15, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.022. Cooperation between agencies mandated. [Repealed.] This section (Enact. Acts 1990, ch. 482, § 30, effective July 13, 1990) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.023. Authority subject to supervision of department of finance institutions. [Repealed.] This section (Enact. Acts 1980, ch. 340, § 20, effective July 15, 1980) was repealed by Acts 1988, ch. 383, § 17, effective July 15, 1988.

154.025. Administration by authority — Executive director. [Repealed.] This section (Enact. Acts 1974, ch. 74, Art. VIII, D, § 2; 1978, ch. 96, § 5, effective July 1, 1978; 1980, ch. 340, § 4, effective July 15, 1980; 1988, ch. 383, § 4, effective July 15, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.030. Quorum and majorities — Reimbursement of other agencies. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 5; 1978, ch. 96, § 6, effective June 17, 1978) was repealed by Acts 1988, ch. 383, § 17, effective July 15, 1988.

154.035. Executive committee — Powers. [Repealed.] This section (Enact. Acts 1968, ch. 78; 1978, ch. 96, § 7, effective July 1, 1978; 1988, ch. 383, § 5, effective July 15, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.040. Powers of authority. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 6; 1978, ch. 96, § 8, effective July 1, 1978; 1980, ch. 340, § 5, effective July 15, 1980; 1986, ch. 201, § 2, effective July 15, 1986) was repealed by Acts 1988, ch. 383, § 17, effective July 15, 1988.

154.041. Powers of authority. [Repealed.] (7/14/92) This section was amended by the 1992 Regular Session of the General Assembly and also repealed. Pursuant to KRS 446.260 , the repeal prevails. This section (Enact. Acts 1988, ch. 383, § 6, effective July 15, 1988; 1990, ch. 267, § 3, effective July 13, 1990) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.043. Renumbered as 154.20-035 .

154.045. Renumbered as 154.20-040 .

154.047. Renumbered as 154.20-045 .

154.049. Renumbered as 154.20-050 .

154.050. Examination of projects. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 7; 1978, ch. 96, § 9, effective July 1, 1978) was repealed by Acts 1988, ch. 383, § 17, effective July 15, 1988.

154.051. Renumbered as 154.20-060 .

154.053. Renumbered as 154.20-070 .

154.055. Renumbered as 154.20-080 .

154.057. Renumbered as 154.20-090 .

154.059. Renumbered as 154.20-100 .

154.060. Administrative regulations. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 8; 1978, ch. 96, § 10, effective July 1, 1978; 1980, ch. 340, § 6, effective July 15, 1980; 1986, ch. 201, § 3, effective July 15, 1986) was repealed by Acts 1988, ch. 383, § 17, effective July 15, 1988.

154.061. Renumbered as KRS 154.20-105 .

154.065. Renumbered as 154.20-110 .

154.070. Application for assistance. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 9; 1980, ch. 340, § 7, effective July 15, 1980; 1986, ch. 201, § 5, effective July 15, 1986) was repealed by Acts 1988, ch. 383, § 17, effective July 15, 1988.

154.080. Loans to building projects. [Repealed.] These sections (Enact. Acts 1958, ch. 152, § 10; 1962, ch. 116, § 2; 1980, ch. 340, § 8, effective July 15, 1980) was repealed by Acts 1986, ch. 201, § 8, effective July 15, 1986.

154.090. Prerequisites for proposed building projects. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 11; 1962, ch. 116, § 3, 1980, ch. 340, § 9, effective July 15, 1980) was repealed by Acts 1980, ch. 340, § 23, effective July 15, 1980.

154.100. Prerequisites for established building projects. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 12) was repealed by Acts 1962, ch. 116, § 7.

154.110. Loans to subdivision projects. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 13; 1976, ch. 214, § 7; 1980, ch. 340, § 10, effective July 15, 1980) was repealed by Acts 1986, ch. 201, § 8, effective July 15, 1986.

154.120. Prerequisites for proposed subdivision projects. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 14) was repealed by Acts 1980, ch. 340, § 23, effective July 15, 1980.

154.125. Coparticipation loans with business development corporation. [Repealed.] This section (Enact. Acts 1966, ch. 188, § 1) was repealed by Acts 1980, ch. 340, § 23, effective July 15, 1980.

154.127. Loans to agricultural or tourist projects. [Repealed.] This section (Enact. Acts 1978, ch. 96, § 11, effective July 1, 1978; 1980, ch. 340, § 11, effective July 15, 1980) was repealed by Acts 1986, ch. 201, § 8, effective July 15, 1986.

154.130. Terms of loan. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 15; 1970, ch. 112, § 1; 1978, ch. 96, § 12, effective July 1, 1978; 1980, ch. 340, § 12, effective July 15, 1980; 1986, ch. 201, § 6, effective July 15, 1986) was repealed by Acts 1988, ch. 383, § 17, effective July 15, 1988.

154.135. Renumbered as 154.20-120 .

154.140. Federal agency participation. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 16; 1962, ch. 116, § 6; 1980, ch. 340, § 13, effective July 15, 1980) was repealed by Acts 1986, ch. 201, § 8, effective July 15, 1986.

154.143. Loans to local development agencies. [Repealed.] This section (Enact Acts 1962, ch. 116, § 4; 1964, ch. 78, § 2; 1970, ch. 112, § 2) was repealed by Acts 1980, ch. 340, § 23, effective July 15, 1980.

154.146. Exception to minimum acreage requirement. [Repealed.] This section (Enact. Acts 1962, ch. 116, § 5; 1980, ch. 340, § 14, effective July 15, 1980) was repealed by Acts 1986, ch. 201, § 8, effective July 15, 1986.

154.150. Industrial development funds. [Repealed.] This section (Enact. Acts 1958, ch. 152, § 17; 1974, ch. 74, Art. II, § 9(1); 1976, ch. 214, § 8; 1978, ch. 384, § 43) was repealed by Acts 1980, ch. 340, § 23.

154.160. Renumbered as 154.20-130 .

154.170. Renumbered as 154.20-140 .

154.180. Renumbered as 154.20-150 .

154.210. Declaration of purpose. [Repealed.] This section (Enact. Acts 1962, ch. 70, § 1) was repealed by Acts 1968, ch. 122, § 7. For present law see KRS 183.200 to 183.213 .

154.220. Definition. [Repealed.] This section (Enact. Acts 1962, ch. 70, § 2) was repealed by Acts 1968, ch. 122, § 7. For present law see KRS 183.200 to 183.213 .

154.230. Authority to apply for assistance. [Repealed.] This section (Enact. Acts 1962, ch. 70, § 3) was repealed by Acts 1968, ch. 122, § 7. For present law see KRS 183.200 to 183.213 .

154.240. Eligibility for loan. [Repealed.] This section (Enact. Acts 1962, ch. 70, § 4) was repealed by Acts 1968, ch. 122, § 7. For present law see KRS 183.200 to 183.213 .

154.250. Loan term — Security. [Repealed.] This section (Enact. Acts 1962, ch. 70, § 5) was repealed by Acts 1968, ch. 122, § 7. For present law see KRS 183.200 to 183.213 .

154.260. Regulations. [Repealed.] This section (Enact. Acts 1962, ch. 70, § 6) was repealed by Acts 1968, ch. 122, § 7. For present law see KRS 183.200 to 183.213 .

154.270. Revolving fund established. [Repealed.] This section (Enact. Acts 1962, ch. 70, § 7) was repealed by Acts 1968, ch. 122, § 7. For present law see KRS 183.200 to 183.213 .

154.310. Definitions. [Repealed.] This section (Enact. Acts 1966, ch. 64, § 3) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.315. Renumbered as 154.80-100 .

154.320. Kentucky port and river development commission — Members — Terms — Officers — Quorum — Compensation — Removal. [Repealed.] This section (Enact. Acts 1966, ch. 64, §§ 4, 5, 8; 1968, ch. 115, § 1; 1978, ch. 154, § 7, effective June 17, 1978; 1978, ch. 155, § 81, effective June 17, 1978; 1980, ch. 141, § 5, effective July 15, 1980; 1982, ch. 396, § 34, effective July 15, 1982) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.321. Districts from which members of commission selected. [Repealed.] This section (Enact. Acts 1968, ch. 115, § 2) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.325. Executive director. [Repealed.] This section (Enact. Acts 1966, ch. 64, §§ 6, 7; 1982, ch. 396, § 35, effective July 15, 1982; 1988, ch. 205, § 7, effective July 15, 1988; 1990, ch. 484, § 8, effective July 13, 1990) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.330. Renumbered as 154.80-110 .

154.335. Renumbered as 154.80-120 .

154.340. Renumbered as 154.80-130 .

154.345. Citation of law. [Repealed.] This section (Enact. Acts 1966, ch. 64, § 1) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.360. Renumbered as 154.80-310 .

154.365. Membership — Quorum — Compensation. [Repealed.] This section (Enact. Acts 1988, ch. 391, § 2, effective July 15, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 15, 1992.

154.370. Districts — Appointments. [Repealed.] This section (Enact. Acts 1988, ch. 391, § 3, effective July 15, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.375. Executive director. [Repealed.] This section (Enact. Acts 1988, ch. 391, § 4, effective July 15, 1988; 1990, ch. 484, § 9, effective July 13, 1990) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.380. Power to contract. [Repealed.] This section (Enact. Acts 1988, ch. 391, § 5, effective July 15, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.385. Receipt and disbursement of funds. [Repealed.] This section (Enact. Acts 1988, ch. 391, § 6, effective July 15, 1988) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.410. Kentucky horse council created — Membership — Meetings — Funds. [Repealed.] These sections (Enact. Acts 1974, ch. 183, § 1) was repealed by Acts 1986, ch. 96, § 10, effective July 15, 1986. For present law see, KRS 148.260 to 148.320 .

154.420. Duties of council. [Repealed.] This section (Enact. Acts 1974, ch. 183, § 2) was repealed by Acts 1986, ch. 96, § 10, effective July 15, 1986. For present law see KRS 148.260 to 148.320 .

154.550. Renumbered as 154.20-520 .

154.555. Renumbered as 154.20-530 .

154.560. Renumbered as 154.20-540 .

154.565. Renumbered as 154.20-550 .

154.570. Renumbered as 154.20-560 .

154.575. Renumbered as 154.20-570 .

154.580. Appropriations and finances transferred to Kentucky development finance authority. [Repealed.] This section (Enact. Acts 1978, ch. 96, § 20, effective July 1, 1978) was repealed by Acts 1992, ch. 105, § 77, effective July 14, 1992.

154.600. Renumbered as 154.33-020 .

154.650. Renumbered as 154.45-001 .

154.655. Renumbered as 154.45-010 .

154.660. Renumbered as 154.45-020 .

154.662. Renumbered as 154.45-030 .

154.665. Renumbered as 154.45-040 .

154.670. Renumbered as 154.45-050 .

154.675. Renumbered as 154.45-060 .

154.680. Renumbered as 154.45-070 .

154.685. Renumbered as 154.45-080 .

154.690. Renumbered as 154.45-090 .

154.695. Enterprise zones may be exempt from administrative regulations — Exception — Procedure. [Repealed.] This section (Enact. Acts 1982, ch. 131, § 10, effective July 15, 1982; 1986, ch. 30, § 10, effective July 15, 1986) was repealed by Acts 1992, ch. 35, § 15, effective July 14, 1992.

154.700. Renumbered as 154.45-100 .

154.705. Renumbered as 154.45-110 .

154.750. Kentucky export council created — Members — Meetings — Quorum — Regulations. [Repealed.] This section formerly compiled as KRS 154.750 and subsequently renumbered as KRS 154.54-020 (Enact. Acts 1984, ch. 312, § 1, effective July 13, 1984; 1992, ch. 105, § 41, effective July 14, 1992) was repealed by Acts 1994, ch. 277, § 11, effective July 14, 1994. For present law see KRS 154.12-250 to 154.12-255 .

154.755. Duties — Reports — Inter-agency cooperation. [Repealed.] This section formerly enacted as KRS 154.755 and subsequently renumbered as KRS 154.54-030 (Enact. Acts 1984, ch. 312, § 2, effective July 13, 1984; 1992, ch. 105, § 41, effective July 14, 1992) was repealed by Acts 1994, ch. 277, § 11, effective July 14, 1994. For present law see KRS 154.12-250 to 154.12-255 .

154.770. Renumbered as 154.50-020 .

154.780. Renumbered as 154.50-030 .

SUBCHAPTER 01. Generalities

154.01-010. Definitions for chapter. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-010 effective 2013.

154.01-020. Mission and goals of Commonwealth’s economic development system. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-020 effective 2013.

Kentucky Peace Corps

154.01-700. Definitions for KRS 154.01-700 to 154.01-745. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-700 effective 2013.

154.01-705. Kentucky Peace Corps Governing Board. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-705 effective 2013.

154.01-710. Duties of board. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-710 effective 2013.

154.01-715. Additional duties of board. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-715 effective 2013.

154.01-720. Kentucky Peace Corps — Purpose — Director. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-720 effective 2013.

154.01-725. Duties of director. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-725 effective 2013.

154.01-730. Salaries of director and employees — Unclassified status of employees. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-730 effective 2013.

154.01-735. Qualifications, benefits, and requirements for volunteers. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-735 effective 2013.

154.01-740. Discipline of volunteers. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-740 effective 2013.

154.01-745. Purchase of retirement credit by volunteers. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-745 effective 2013.

Small Business Development Centers

154.01-750. Kentucky Small Business Development Center Network — Programs and services — Report to Legislative Research Commission. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.1-750 effective 2013.

SUBCHAPTER 1. Generalities

154.1-010. Definitions for chapter.

As used in this chapter, unless the context indicates otherwise:

  1. “Agribusiness” or “agricultural business entity” means any person, partnership, limited partnership, corporation, limited liability company, or any other entity engaged in a business that processes raw agricultural products, including timber, or provides value-added functions with regard to raw agricultural products;
  2. “Approved business network” or “approved flexible industrial network” means a business network comprising three (3) or more business firms or industries which have been identified as key industries and targeted by the state’s strategic economic development plan for special consideration and assistance by the agencies of the Commonwealth;
  3. “Authority” means the Kentucky Economic Development Finance Authority, consisting of a committee as set forth in KRS 154.20-010 ;
  4. “Board” means the Kentucky Economic Development Partnership, an administrative body within the meaning of KRS 12.010 , and the governing body of the Cabinet for Economic Development, as created and established in KRS 154.10-010 ;
  5. “Business network” or “flexible industrial network” means a formalized, collaborative mechanism organized by and operating among three (3) or more industrial entities, business enterprises, or private sector firms for the purposes of, but not limited to: pooling expertise; improving responses to changing technology or markets; lowering the risks to individual entities of accelerated modernization; encouraging new technology investments, new market development, and employee skills improvement; and developing a system of collective intelligence among participating entities;
  6. “Cabinet” means the Cabinet for Economic Development as established under KRS 12.250 , and governed by the Kentucky Economic Development Partnership;
  7. “Commonwealth” means the Commonwealth of Kentucky;
  8. “Cost of a project” means the cost of the acquisition, construction, reconstruction, conversion, or leasing of any industrial, commercial, health care, agricultural, or forestry enterprise, or any part thereof, to carry out the purposes and objectives of this chapter, including but not limited to acquisition of land or interest in land, buildings, structures, or other planned or existing planned improvements to land, including leasehold improvements, machinery, equipment, or furnishings; working capital; and administrative costs, including but not limited to engineering, architectural, legal, and accounting fees which are necessary for the project;
  9. “Local and regional economic development interest” means any local business or economic development interest, including but not limited to chambers of commerce, business development associations, industrial development organizations, area development districts, and public economic development entities;
  10. “Industrial entity” means any corporation, limited liability company, partnership, limited partnership, person, or any other legal entity, domestic or foreign, which will itself or through its subsidiaries or affiliates, engage in an industrial improvement project in the Commonwealth;
  11. “Industrial improvement project” means and includes the acquisition, construction, or implementation of new manufacturing, processing, or assembling facilities, equipment, methods or processes, or improvements to or repair of existing manufacturing, processing, or assembling facilities, equipment, methods, or processes, including repair, restoration, or conversion of tobacco warehouses, as well as improvements to the real estate upon which the facilities are located, and includes any capital improvement to any existing facility, including any restructuring, retooling, rebuilding, reequipping, or any other form of upgrading such existing facility and equipment and any other improvements to such real estate, existing facility, or manufacturing, processing, or assembling equipment, method, or process;
  12. “Key industry” means an industry or business within an industrial sector which has been identified in and targeted by the state’s economic development strategic plan as having major importance to the sustained economic growth of the Commonwealth and in which member firms sell goods or services into markets for which national or international competition exists, including but not limited to secondary forest products manufacturing, agribusiness, and high technology and biotechnology manufacturing and services;
  13. “Military” and “defense” mean all military and defense installations, entities, activities, and personnel located, operating, or living in Kentucky;
  14. “Municipality” means a county, city, development organization, an institution of higher education, a community or junior college, a subdivision or instrumentality of any of the foregoing, or any entity created by two (2) or more municipalities pursuant to the Interlocal Cooperation Act, KRS 65.210 to 65.300 ;
  15. “Network broker” means a person who is trained to assist private sector firms to form business networks and make other similar efforts to provide for joint manufacturing, marketing, technology development, information dissemination, and other activities;
  16. “Non-appropriation-supported bond” means any long-term financial borrowing instrument for which regular debt service does not originate from an appropriation of the General Assembly;
  17. “Non-appropriation-supported note” means any short-term financial borrowing instrument for which loan payments do not originate from an appropriation of the General Assembly;
  18. “Person” means an individual, partnership, joint venture, military facility operated by a department or agency of the United States, profit or nonprofit corporation including a public or private college or university, limited liability company, or other entity or association of persons organized for agricultural, commercial, health care, or industrial purposes; or a public utility or local industrial development corporation;
  19. “Private sector” means any source other than the authority, a state or federal entity, or an agency thereof;
    1. “Project” means an endeavor approved by the cabinet or authority and related to industrial, manufacturing, mining, mining reclamation for economic development, commercial, health care, or agricultural enterprise. (20) (a) “Project” means an endeavor approved by the cabinet or authority and related to industrial, manufacturing, mining, mining reclamation for economic development, commercial, health care, or agricultural enterprise.
    2. “Project” includes but is not limited to agribusiness, agricultural or forestry production, harvesting, storage, or processing facilities or equipment; equipment or facilities designed to produce energy from renewable resources; research parks; office facilities; engineering facilities; research and development laboratories; repair, restoration, or conversion of tobacco warehouses for an economic development or commercial use; warehousing facilities; parts distribution facilities; depots or storage facilities; port facilities; railroad facilities, including trackage, right-of-way, and appurtenances; airports and airport renovation; water and air pollution control equipment or waste disposal facilities; tourist facilities; theme or recreational parks; health care and health related facilities; farms, ranches, forests, and other agricultural or forestry commodity producers; agricultural harvesting, storage, transportation, or processing facilities or equipment; grain elevators; shipping heads and livestock pens; livestock; wharves and dock facilities; water, electricity, hydroelectric, coal, petroleum, or natural gas provision facilities; dams and irrigation facilities; sewage, liquid, and solid waste collection, disposal treatment, and drainage services and facilities. For purposes of this paragraph, “livestock” means cattle, sheep, swine, goats, horses, alpacas, llamas, buffaloes, and any other animals of the bovine, ovine, porcine, caprine, equine, or camelid species.
    3. Except for airport-related facilities and tax increment financing projects approved under Subchapter 30 of this chapter, “project” does not include that portion of an endeavor devoted to the sale of goods at retail or that portion of an endeavor devoted to housing which does not consist of the manufacture of housing;
  20. “Reclamation development fund” means the fund administered by the Kentucky Economic Development Finance Authority to foster economic development on surface mining land;
  21. “Reclamation development project” means only that reconditioning of land affected by surface mining, which will directly promote and benefit an economic undertaking which constitutes a project under subsection (20) of this section;
  22. “Reclamation development plan” means a plan submitted to the Energy and Environment Cabinet to show compliance with reclamation standards, and submitted to the Kentucky Economic Development Finance Authority to seek moneys from the reclamation development fund for a reclamation development project;
  23. “Secretary” means the chief executive officer and secretary of the Cabinet for Economic Development;
  24. “State” means the Commonwealth of Kentucky; and
  25. “Tax revenues” means any revenues received by the Commonwealth directly or indirectly as a result of the industrial improvement project, including state corporate income taxes, the limited liability entity tax imposed by KRS 141.0401 , state income taxes paid by employees who work in the project, state property taxes, state corporation license taxes, or state sales and use taxes.

History. Enact. Acts 1992, ch. 105, § 2, effective July 14, 1992; 1994, ch. 390, § 1, effective July 15, 1994; 1996, ch. 113, § 6, effective July 15, 1996; 1996, ch. 194, § 13, effective July 15, 1996; 2006, ch. 84, § 1, effective July 12, 2006; 2006, ch. 149, § 207, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 39, effective June 28, 2006; 2008, ch. 178, § 24, effective July 15, 2008; 2010, ch. 24, § 191, effective July 15, 2010; 2017 ch. 129, § 6, effective June 29, 2017; 2019 ch. 44, § 22, effective June 27, 2019.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-010 .

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

(7/15/96). Under KRS 7.136(1)(e), the prior reference to “subsection (14)” in what is now subsection (22) of this statute has been changed to “subsection (20)” because of renumberings of the referenced subsection in 1994 Ky. Acts ch. 390, sec. 1, and 1996 Ky. Acts, ch. 113, sec. 6.

Research References and Practice Aids

Kentucky Bench & Bar.

Herrington, Executive Branch Ethics Commission Advisory Opinion 94-4 and Lobbying Registration Requirements Applicable to Attorneys, Vol. 59, No. 1, Winter 1995, Ky. Bench & Bar 22.

154.1-020. Mission and goals of Commonwealth’s economic development system.

  1. The mission of the Commonwealth’s economic development system shall be to achieve the best quality of life for all Kentuckians through long-term strategic planning and implementation that fosters sustainable growth in jobs and incomes and enables communities, businesses, governments, and individuals to compete in the global marketplace.
  2. The goals for the Commonwealth’s economic development system shall be as follows:
    1. By the year 1993, Kentucky will have an economic development partnership of government, business, education, communities, and individuals that provides a coordinated planning and implementation process which establishes government priorities for action and accountability, supports rural and urban communities to invest in their own futures, assists businesses to acquire the resources to compete, and prepares individuals for work in high quality jobs; and
    2. By the year 2000, Kentucky will have people and institutions with the capacity to adapt to future change; a skilled, competitive workforce; thriving and healthy communities throughout the state; and increased wealth and high quality jobs with greater opportunities to compete for them.

History. Enact. Acts 1992, ch. 105, § 1, effective July 14, 1992.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-020 .

Kentucky Peace Corps

154.1-700. Definitions for KRS 154.1-700 to 154.1-745.

As used in KRS 154.1-700 to 154.1-745 , unless the context indicates otherwise:

  1. “Allowance” means a twice-monthly payment granted volunteers during the term of their service. For the purposes of KRS 154.1-700 to 154.1-745 , an allowance shall not be considered a salary or a wage.
  2. “Board” means the Kentucky Peace Corps Governing Board created by KRS 154.1-705 .
  3. “Community/user” means the nonprofit entity or entities for which a task is being performed by a volunteer or volunteers.
  4. “Corps” means Kentucky Peace Corps created by KRS 154.1-715 .
  5. “Director” means the chief administrative officer of the corps appointed pursuant to the provisions of KRS 154.1-715 .
  6. “Employee” means “employee” as defined by KRS 18A.005 .
  7. “Volunteer” means Kentucky Peace Corps volunteers selected pursuant to the provisions of KRS 154.1-710 .

History. Enact. Acts 1992, ch. 100, § 1, effective July 14, 1992.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-700 .

154.1-705. Kentucky Peace Corps Governing Board.

  1. There shall be created by KRS 154.1-700 to 154.1-745 the Kentucky Peace Corps Governing Board consisting of nine (9) members appointed by the Governor to staggered terms not to exceed four (4) years. Three (3) of these appointees shall be from 501c charitable corporations; one (1) shall represent local government; one (1) shall represent labor; one (1) shall represent the business community; and three (3) shall be employed by state agencies performing work related to the corps’ purposes.
  2. At least one (1) member of the board appointed pursuant to the provisions of subsection (1) of this section shall be from each congressional district. No more than two (2) members shall be from the same congressional district.
  3. The board shall annually elect one (1) of its members chairman and one (1) of its members vice chairman.
  4. The board shall meet at such time and place as shall be specified by the call of its chairman. At least one (1) meeting shall be held each month.
  5. All meetings of the board shall be open to the public as provided in KRS 61.810 to 61.850 .
  6. At least seven (7) days in advance of each regular meeting of the board, notice shall be given in writing to each member by the director, which shall include, at the least, a tentative agenda. Five (5) members shall constitute a quorum for the transaction of business. The board shall keep records and minutes of its business and official actions.
  7. All records of the board shall be public records and open to public inspection as provided in KRS 61.872 to 61.884 .
  8. Board members shall not receive any compensation for their services, but may be reimbursed in accordance with the provisions of KRS Chapters 44 and 45 and KRS 18A.200 for actual and necessary expenses incurred in the performance of their duties as prescribed by KRS 154.1-710 and 154.1-715 .

History. Enact. Acts 1992, ch. 100, § 2, effective July 14, 1992.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-705 .

154.1-710. Duties of board.

Subject to the provisions of KRS 154.1-700 to 154.1-745 , and KRS Chapter 13A, it shall be the duty of the board to:

  1. Promulgate administrative regulations to establish a selection process for:
    1. Volunteers which shall include, but not be limited to, the testing of applicants for emotional stability by a mental health professional licensed in Kentucky for independent practice;
    2. Projects to be undertaken and completed by volunteers and a method of applying for these projects. The specific purpose or goal of the corps outlined in KRS 154.1-720 shall be taken into consideration when applying this methodology.
  2. Initial administrative regulations promulgated under the provisions of KRS 154.1-700 to 154.1-745 shall be filed with the Legislative Research Commission within ninety (90) days of July 14, 1992.

History. Enact. Acts 1992, ch. 100, § 3, effective July 14, 1992.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-710 .

154.1-715. Additional duties of board.

Among its other duties, the board shall also be required to:

  1. Govern, or exercise authority, over the corps;
  2. Appoint a director to function as chief administrative officer of the corps;
  3. Make annual reports to the Governor and the Legislative Research Commission, and biennial reports to the Kentucky General Assembly;
  4. Advise the Governor and the director with respect to projects assigned to and undertaken by the corps;
  5. Consider and act on any and all matters referred to it by the director; and
  6. Investigate any irregularities reported by the public.

History. Enact. Acts 1992, ch. 100, § 4, effective July 14, 1992.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-715 .

154.1-720. Kentucky Peace Corps — Purpose — Director.

  1. A Kentucky Peace Corps, headed by a director appointed by the board created by KRS 154.1-705 , is hereby created.
  2. The purpose of the corps is to:
    1. Create a volunteer, domestic service corps to promote a mechanism for selfless service for those who wish to improve the lives of other Kentuckians, raise the standard of living, enhance self actualization, and create a more conducive environment for future generations of Kentuckians.
    2. Assist the Commonwealth of Kentucky through targeted activities which promote the public good and achieve measurable or visible improvement in the environment, public service, individual productivity, education, health, and humanitarian endeavors.
    3. Identify and utilize the skills, knowledge, and expertise of dedicated, well-trained volunteers who have met stringent selection criteria and have effectively demonstrated their commitment to the Kentucky Peace Corps.
    4. Promote a cross-fertilization of ideas, skills, and concepts.
  3. The director, authorized by subsection (1) of this section, shall be a graduate of an accredited college or university and have at least five (5) years’ experience in administration or in related fields. Additional education may be substituted for the required experience on a year-to-year basis. Additional experience may be substituted for the required education on a year-to-year basis, provided the experience level is deemed appropriate by the board.

History. Enact. Acts 1992, ch. 100, § 5, effective July 14, 1992.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-720 .

154.1-725. Duties of director.

  1. It shall be the duty of the director to:
    1. Serve as chief administrative officer to the corps and secretary to the board, and to provide whatever help and technical assistance as deemed necessary by the board to the board.
    2. Hire, as provided in the budget enacted by the Kentucky General Assembly and other state and federal laws applicable to state personnel, whatever employees are deemed necessary by the board to carry out the provisions of KRS 154.1-700 to 154.1-745 , provided the number of employees does not exceed twelve (12).
    3. Prepare the budget request for approval by the board in the form and manner required by applicable state law. For the purposes of KRS Chapter 48, the board and the corps shall be considered a budget unit.
    4. Develop a handbook for volunteers for submission to and approval of the board prior to printing and distribution.
    5. Develop a handbook for community/users for submission to and approval of the board prior to printing and distribution.
    6. Prepare program status reports on a monthly basis.
  2. The director, on behalf of the corps, and with the permission of the board, may join or subscribe to any association or service having as its purpose the interchange of information relating to the improvement of the corps, or volunteer organizations.

History. Enact. Acts 1992, ch. 100, § 6, effective July 14, 1992.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-725 .

154.1-730. Salaries of director and employees — Unclassified status of employees.

  1. Notwithstanding the provisions of KRS 64.610 through 64.470 , the salaries of the director and other employees of the corps, shall be determined by order of the board, provided these salaries do not exceed the limitations established by the Constitution of the Commonwealth of Kentucky, and limitations established by the Executive Budget enacted by the Kentucky General Assembly.
  2. All employees of the corps, including its director, shall be deemed unclassified employees of the Executive Department, covered by the provisions of KRS Chapter 18A relating to unclassified employees.

History. Enact. Acts 1992, ch. 100, § 7, effective July 14, 1992.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-730 .

154.1-735. Qualifications, benefits, and requirements for volunteers.

  1. Volunteers shall be at least eighteen (18) years of age.
  2. Volunteers shall not serve within a seventy-five mile radius of their legal or voting residence.
  3. Volunteers shall not be considered employees of the board or the Commonwealth of Kentucky; however, they shall be granted:
    1. An allowance which, at a minimum, shall equal the federal minimum wage;
    2. Appeal rights pursuant to the provisions of KRS 154.1-740 ;
    3. Relocation benefits;
    4. Health benefits;
    5. Social security benefits;
    6. Free tuition for one full-time semester at a state-supported Kentucky college or university for every twelve (12) months’ service completed in the corps; and
    7. Workers’ compensation.
  4. Volunteers may receive reimbursement for travel, provided the reimbursement does not exceed the limitations established for Executive Department employees either by law or administrative regulation.
  5. Notwithstanding other provisions of the Kentucky Revised Statutes, volunteers shall not be eligible to receive:
    1. Dental benefits;
    2. Disability insurance;
    3. Life insurance;
    4. Reimbursement for meals; or
    5. Unemployment insurance.
  6. All volunteers shall be expected to bring with them a minimum amount of tools to perform their tasks, but the community/user is expected to supply all other items, exclusive of clothing and other personal hygiene and grooming items.
  7. Volunteers shall agree in writing to:
    1. Cooperate with corps personnel with whom he is working in their common effort, and to abide by the policies and procedures set forth in the handbook and administrative regulations required by KRS 154.1-710 , and other applicable state and federal laws.
    2. Hold the Kentucky Peace Corps harmless and to release it from any and all claims arising out of or in connection with any agreement he signs upon volunteering, excepting only that the corps shall remain liable for any harm directly attributable to its gross negligence.
    3. Perform the work assigned to him in an acceptable manner to the corps, or its representatives.
    4. Not engage in any regular work which carries monetary compensation and which falls outside the scope of the assigned corps duties. Any exceptions to this provision shall be authorized in writing by the director, and approved by the board.
    5. Serve the number of months, not to exceed two (2) years, deemed appropriate by the board and director to complete the task assigned. The board may extend the volunteer’s contract an additional two (2) years, provided the volunteer is willing, and provided the volunteer has a special skill or expertise needed by the corps. Conversely, the board may reduce the number of months of the contract in the event of hardship.

History. Enact. Acts 1992, ch. 100, § 8, effective July 14, 1992.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-735 .

154.1-740. Discipline of volunteers.

  1. Volunteers shall be disciplined or dismissed for cause only.
  2. In the event any volunteer is disciplined or dismissed for cause, he may appeal, within thirty (30) days, to Franklin Circuit Court for reinstatement.
  3. If reinstatement is ordered by the Franklin Circuit Court, the volunteer shall be returned to his job immediately and made whole, provided the order is not appealed to a higher court.

History. Enact. Acts 1992, ch. 100, § 9, effective July 14, 1992.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-740 .

154.1-745. Purchase of retirement credit by volunteers.

Volunteers who become contributing members of any state administered retirement system may purchase service credit for time served in the corps as provided in KRS 61.552 and 161.515 .

History. Enact. Acts 1992, ch. 100, § 10, effective July 14, 1992.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-745 .

Small Business Development Centers

154.1-750. Kentucky Small Business Development Center Network — Programs and services — Report to Legislative Research Commission.

  1. It is the intention of the General Assembly to generate a substantial increase in the number of new and expanding small businesses in the Kentucky workforce, to foster economic growth in the business sector, and to provide high-quality jobs for Kentuckians. The Kentucky Small Business Development Center Network, part of the National Small Business Development Center Network, is encouraged to extend its wide range of workshops, seminars, and courses for entrepreneurs in cooperation with the public and private sector. Expert instruction shall range from introductory classes designed for start-up businesses to advanced presentations aimed at assisting established companies.
  2. As used in this section:
    1. “Expanded staff” means consultants to be used exclusively in the small business development centers. All new personnel in the field shall be fully dedicated to consulting and training, with the goal of increasing clients’ revenues and job creation capabilities, as well as increasing Kentucky Small Business Development Center Network market penetration by twenty-five percent (25%) over the two (2) year appropriation.
    2. “Expanded equipment” means support for these consultants and includes computers and printers, fax machines, and copiers.
    3. “Expanded operation” means support for new personnel and includes office furniture, phone and fax expenses, and travel costs for consultants.
    4. “Expanded professional development” means the training to ensure that Kentucky small business development center consultants have up-to-date knowledge and information to positively impact new and existing small businesses.
  3. Expanded staff, expanded equipment, expanded operation, and expanded professional development shall be used to assist the Kentucky Small Business Development Center Network to increase entrepreneurial training and consulting services, with the goal of increasing the center’s impact upon Kentucky’s economy.
  4. Entrepreneurial training topics include, but are not limited to:
    1. Starting a business;
    2. Business plan preparation;
    3. Marketing, including advertising and public relations;
    4. Financial analysis;
    5. Tax regulation;
    6. Human resource management;
    7. Capital management;
    8. Global readiness;
    9. Marketing plan preparation;
    10. Young entrepreneurship;
    11. Target market analysis;
    12. Quality management; and
    13. Production management.
  5. The Kentucky Small Business Development Center Network may solicit, accept, receive, invest, and expend moneys from any public or private source for the purpose of implementing this section.
  6. The Kentucky Small Business Development Center Network’s central office shall present a written report to the Legislative Research Commission in November 1998, setting out its progress towards achieving the goals set out in subsection (1) of this section.

History. Enact. Acts 1996, ch. 293, § 1, effective July 15, 1996.

Compiler’s Notes.

This section was formerly codified as KRS 154.01-750 .

SUBCHAPTER 10. Kentucky Economic Development Partnership

154.10-010. Kentucky Economic Development Partnership — Membership — Vacancies — Meetings.

    1. The Kentucky Economic Development Partnership, a board governing the Cabinet for Economic Development, is created and established, performing essential governmental and public functions and purposes essential to improving and promoting the health and general welfare of the people of the Commonwealth through sustainable economic development, as prescribed in KRS 154.1-020 . (1) (a) The Kentucky Economic Development Partnership, a board governing the Cabinet for Economic Development, is created and established, performing essential governmental and public functions and purposes essential to improving and promoting the health and general welfare of the people of the Commonwealth through sustainable economic development, as prescribed in KRS 154.1-020 .
    2. The board shall have reorganization powers and authority as prescribed in KRS 12.028 and shall constitute an administrative body as defined in KRS 12.010 , but it and the cabinet shall not be subject to reorganization by the Governor, KRS Chapter 12 notwithstanding.
    3. The board shall serve as the governing body of the cabinet and shall exercise all powers and authorities conferred upon it by statute, including, but not limited to, the following functions:
      1. Strategic planning;
      2. Finance;
      3. Business assistance;
      4. Marketing and promotion;
      5. Community development;
      6. Workforce development;
      7. Innovation; and
      8. All economic development powers and authorities not specifically conferred by statute to another agency or authority of state government.
  1. The board shall consist of thirteen (13) voting members and two (2) nonvoting members. The thirteen (13) voting members shall consist of the Governor, the secretary of the Finance and Administration Cabinet, the secretary of the Public Protection Cabinet, the secretary of the Energy and Environment Cabinet, the secretary of the Labor Cabinet, and eight (8) private sector members who shall be appointed by the Governor. The secretary of the Governor’s Executive Cabinet shall serve as a voting member upon the absence of the Governor. The secretary of the Cabinet for Economic Development and the secretary of the Tourism, Arts and Heritage Cabinet shall serve as nonvoting members.
  2. The governing bodies of each of the following organizations shall nominate two (2) persons from each of the six (6) Congressional districts of the Commonwealth and two (2) persons from the state at large, as candidates for appointment as private sector members to the board:
    1. The Kentucky Association for Economic Development;
    2. The Kentucky Association of Manufacturers;
    3. The Kentucky State AFL-CIO;
    4. The Kentucky Farm Bureau Federation;
    5. The Kentucky Chamber of Commerce; and
    6. The National Federation of Independent Businesses/Kentucky.
  3. The Governor shall select the original eight (8) private sector members from the aggregation of the lists provided pursuant to subsection (3) of this section, with at least one (1) appointment being chosen from each organization’s list and at least one (1) appointment being chosen from each Congressional district. Appointments to vacancies shall be made in the same manner as prescribed in this subsection and subsection (3) of this section, except that there is no requirement that the vacancy be filled from the same organization’s list as the original appointment.
  4. All appointments shall be for four (4) years.
  5. In making appointments to the board, the Governor shall assure broad geographical representation, as well as representation from the major sectors of Kentucky’s economy by leading executives with a knowledge of the problems of large and small businesses, local economic development, and the transfer of research and development from the laboratory to the marketplace. In filling vacancies, the Governor shall assure the continuing representation on the board of broad constituencies of Kentucky’s economy, including manufacturing and agriculture.
  6. Vacancies on the board which may occur from time to time shall be filled as follows:
    1. Any vacancy which occurs shall be filled for the unexpired term in accordance with the procedures established in subsections (3) and (4) of this section.
    2. If any private sector member misses more than two (2) consecutive meetings of the board, then that position shall be declared vacant and filled in accordance with this section.
  7. The board shall meet semiannually and at other times upon call of the chairman or a majority of the board.
  8. A quorum shall be a majority of the voting membership of the board.
  9. A quorum shall be required to organize and conduct the business of the board, except that an affirmative vote of seven (7) or more members of the entire board shall be required to terminate the employment of the cabinet’s secretary, and to adopt or amend the strategic plan.
  10. Private sector members shall serve without compensation but shall be reimbursed for all reasonable, necessary, and actual expenses.
  11. All existing duties, responsibilities, functions, personnel, programs, funds, obligations, records, and real and personal property of the Cabinet for Economic Development, as of July 14, 1992, shall be under the authority and control of the board.

History. Enact. Acts 1992, ch. 105, § 3, effective July 14, 1992; 1996, ch. 194, § 14, effective July 15, 1996; 1998, ch. 48, § 10, effective July 15, 1998; 2005, ch. 95, § 32, effective June 20, 2005; 2009, ch. 16, § 38, effective June 25, 2009; 2010, ch. 24, § 192, effective July 15, 2010; 2016 ch. 123, § 1, effective July 15, 2016.

Compiler’s Notes.

This section is set out above to reflect a correction to the section reference appearing in (1)(a) from 154.01-020 to 154.1-020 due to renumbering by the state reviser effective in 2013.

NOTES TO DECISIONS

Cited in:

Commonwealth ex rel. Beshear v. Bevin, 575 S.W.3d 673, 2019 Ky. LEXIS 214 ( Ky. 2019 ).

154.10-020. Officers — Executive committee.

  1. The Governor shall be the chairman of the board and upon his absence the secretary of the Governor’s Executive Cabinet shall serve as chairman.
  2. The board shall elect from among the private sector members a vice chairman of the board. The initial term of office for the vice chairman shall expire December 31, 1994, and the subsequent terms of office of the vice chairman shall be for a period of two (2) years.
  3. Upon the absence of both the Governor and the secretary of the Governor’s Executive Cabinet, the vice chairman shall serve as chairman.
  4. The board may establish an executive committee consisting of the chairman, the vice chairman, the secretary of the cabinet, and not more than three (3) additional board members selected jointly by the chairman and vice chairman. The executive committee shall have such authority as the board delegates to it, except that the board shall not delegate to the executive committee the authority to take actions requiring approval by a majority of the entire board under KRS 154.10-010 (10).
  5. The secretary and other officers and employees of the cabinet shall not be required to disclose confidential information concerning existing businesses or business prospects with which the board or cabinet is dealing, including the identity of the businesses, to members of the board other than the executive committee. The executive committee shall provide advice and assistance to the secretary in negotiations with existing and prospective businesses. In the event the cabinet enters into an agreement with a business entity which requires approval by the General Assembly, the agreement shall be presented by the secretary to the board, which shall make a recommendation of approval or disapproval of the agreement to the General Assembly.

History. Enact. Acts 1992, ch. 105, § 4, effective July 14, 1992.

154.10-030. Powers and authority.

The board shall have all the powers and authority, not explicitly prohibited by statute, necessary or convenient to carry out and effectuate the functions, duties, and responsibilities of the board and the cabinet, including, but not limited to, the following:

  1. Serving as the governing body of the Cabinet for Economic Development;
  2. Suing and being sued;
  3. Adopting, using, and altering at will a corporate seal;
  4. Approving economic development programs and projects;
  5. Discharging the secretary of the Cabinet for Economic Development;
  6. Approving the state’s strategic economic development plan and subsequent implementation plans;
  7. Providing for and directing the state’s economic development strategic planning process;
  8. Evaluating the performance and effectiveness of the Commonwealth’s economic development systems, including:
    1. The establishment of benchmarks; and
    2. Program review;
  9. Reporting to the Governor, the General Assembly, and the people of the Commonwealth regarding its functions, duties, and responsibilities, including, but not limited to:
    1. The Commonwealth’s strategic economic development plan;
    2. Program initiatives and implementation plans;
    3. Systems evaluations;
    4. Benchmarks;
    5. Program evaluation; and
    6. Activities of the cabinet;
  10. Soliciting, borrowing, accepting, receiving, investing, and expending funds from any public or private source;
  11. Making grants, loans, and investments; guaranteeing and insuring loans, leases, bonds, notes, or other indebtedness, whether public or private; issuing letters of credit; and making loans to financial institutions to facilitate financing of all or part of an export-related transaction including, but not limited to, pre-export working capital financing and post-export receivable financing;
  12. Constructing, acquiring by gift, purchase, installment purchase, or lease, and reconstructing, improving, repairing, or equipping any project or any part of a project; and entering into a lease for the use or sale of a project;
  13. Making loans and participating in the making of loans; undertaking commitments to make loans and mortgages; buying and selling loans and mortgages at public or private sale; rewriting loans and mortgages; discharging loans and mortgages; foreclosing on mortgages and commencing any action to protect or enforce a right conferred upon the cabinet or placed within the control, authority, and responsibility of the cabinet under the provisions of this chapter; bidding for and purchasing property which was the subject of the mortgage at a foreclosure or other sale, and acquiring or taking possession of the property and, in that event, completing, administering, paying the principal and interest on obligations incurred in connection with the property; and disposing of and otherwise dealing with the property in a manner as may be necessary or desirable to protect the interests of the cabinet;
  14. Entering into a lease for the use or sale of a project; acquiring or contracting from any person, public entity, corporation, limited liability company, partnership, limited partnership, or entity, leaseholds, real or personal property, or any interest in real or personal property; owning, holding, clearing, improving, and rehabilitating and selling, assigning, exchanging, transferring, conveying, leasing, mortgaging, or otherwise disposing of or encumbering leaseholds, real or personal property, or any interest in real or personal property as is convenient for the accomplishment of the purposes of this chapter;
  15. Procuring insurance against any loss in connection with the cabinet’s property, assets, or activities;
  16. Charging, imposing and collecting fees and charges in connection with any transaction, and providing for reasonable penalties for delinquent payment of fees or charges;
  17. Indemnifying and procuring insurance indemnifying members and officers of the board, and the cabinet and members and officers of the finance committee of the Kentucky Economic Development Finance Authority as provided in KRS 154.20-010 , from personal loss or accountability from liability asserted by any person on the bonds or notes of the cabinet or authority, or any personal liability or accountability by reason of the issuance of bonds, notes, insurance, or guarantees; or by reason of acquisition, construction, ownership, or operation of any project funded in whole or part by the cabinet or authority; or by reason of any other action taken or the failure to act by the cabinet or authority;
  18. Mortgaging or creating security interests in a project or any part of a project, or in a lease or loan, or in the rents, revenues, or sums to be paid in favor of the holders of the bonds or notes issued by the cabinet;
  19. Conveying or releasing a project or any part of a project to a lessee, purchaser, or borrower under any agreement after provision has been made for the retirement in full of the bonds or notes issued for that project under the terms and conditions provided in the agreement, or as may be agreed with the holders of the bonds or notes, or as may otherwise be agreed with the holders of the bonds or notes;
  20. Issuing non-appropriation-supported bonds and notes including, but not limited to, commercial paper, refund bonds, and notes; paying the costs of issuance of bonds and notes; paying interest on bonds and notes;
  21. Making and entering into contracts and agreements necessary or incidental to the performance of its duties and execution of its powers;
  22. Employing consultants and other persons and employees as may be required in the judgment of the board, essential to the cabinet’s operations, functions, and responsibilities;
  23. Providing technical assistance regarding any economic or job development project, program, or activity;
  24. Delegating any powers, duties, responsibilities, and authority to any division, agency, or authority under its control and administration;
  25. Reorganizing, pursuant to KRS 12.028 , any organizational unit or administrative body under its control and jurisdiction;
  26. Promulgating administrative regulations, in accordance with KRS Chapter 13A, governing its powers, duties, and responsibilities as prescribed in this chapter and governing the powers, duties, and responsibilities delegated to any administrative body transferred to the cabinet by law or otherwise placed within its control and responsibility; and
  27. Doing all other things necessary or convenient to achieve its objectives and purposes which are not explicitly prohibited by statute.

History. Enact. Acts 1992, ch. 105, § 5, effective July 14, 1992; 1996, ch. 194, § 15, effective July 15, 1996; 2006, ch. 149, § 208, effective July 12, 2006.

154.10-035. Issuance of economic development revenue bonds and anticipation notes — Uses — Treatment.

  1. Notwithstanding any other provisions of the Kentucky Revised Statutes, the board is authorized to exercise the following power:
    1. The board may provide for the issuance of economic development revenue bonds by the cabinet, for the purpose of providing funds and moneys to enable the cabinet to exercise and fulfill the powers and authority set forth in KRS 154.10-030 , to enter into agreements with governmental agencies and private companies, corporations, partnerships, and other such entities, acquire and lease projects to governmental agencies and private companies, corporations, cabinets, and other such entities, purchase obligations of governmental agencies issued for economic development projects, and make loans or grants for economic development projects, and to enable the cabinet generally to carry out and effectuate its proper purposes under this chapter. In anticipation of the issuance of the revenue bonds, the board may provide for the issuance at one (1) time, or from time to time, of revenue bond anticipation notes pursuant to the general laws of the state. The principal of and the interest on the revenue bonds or notes shall be payable solely from revenues made available to the cabinet for bond purposes. Any such notes may be made payable from the proceeds of bonds or renewal notes, or in the event bond or renewal note proceeds are not available, or should the board deem it financially practicable to pay the notes directly from revenues made available to the cabinet for bond purposes, the notes may be paid from any revenues made available to the cabinet for bond purposes. Prior to the issuance of the bonds or notes, the cabinet shall submit any proposed issue to the Capital Projects and Bond Oversight Committee for its review and determination in accordance with provisions of KRS 45.810 .
    2. The revenue bonds or notes of the cabinet shall be dated and may be redeemable prior to maturity at the option of the board at prices and under terms and conditions determined by the board. Any bonds or notes shall bear interest at the rate or rates, shall be payable annually or at shorter intervals, and may bear conversion privileges determined by the board. Notes shall mature at the time or times not exceeding five (5) years from their date or dates, and revenue bonds shall mature at the time or times not exceeding forty (40) years from their date or dates as may be determined by the board. The board shall determine the form and manner of execution of the bonds or notes, and shall fix the denomination or denominations and the place or places of payment of principal and interest, which may be any bank or trust company within or without the state. In case any officer of the board whose signature or facsimile of whose signature shall appear on any revenue bonds or notes shall cease to be such officer before the delivery thereof, the signature of the facsimile shall be valid and sufficient for all purposes, the same as if the officer had remained in office until the delivery. At the time of issuance of variable rate revenue bonds, the board may designate individuals or institutions which, in the sole judgment of the board, have financial market expertise to serve as agent for the board for establishing and changing from time to time, while the variable rate revenue bonds remain outstanding, the rate of interest to be borne by and the price to be paid for the revenue bonds. The rate-setting procedures and authority of each agent shall be set forth in writing, and may include a formula or an index or indices based upon market factors, and shall be established by the board at the time of issuance of the revenue bonds. At the time of the issuance of the revenue bonds, the board shall establish the maximum interest rate to be borne by the revenue bonds. The board shall retain the right to remove or replace any agent at any time and for any reason. The board may provide that said bonds or notes may be executed only with the facsimile signatures of its officers, but said bonds or notes shall be executed with the manual signature of a bank or trust company designated by the board as registrar and paying agent.
    3. All revenue bonds or notes issued under the provisions of this chapter shall have and are hereby declared to possess all of the qualities and incidents of negotiable instruments under the laws of the state. The board may sell the revenue bonds or notes in the manner, either at public or private negotiated sale, and for the price, as it may determine will best effect the purpose of this chapter. If revenue bonds are sold at public, competitive sale, the revenue bonds shall be sold after newspaper advertising conforming to the requirements of KRS Chapter 424 and competitive bids for the sale of the revenue bonds shall be opened and read publicly by the board at a designated place, day and hour, all of which shall be announced in the advertising made relative thereto.
    4. In its proceedings authorizing the issuance of revenue bonds or notes, the board shall fix and determine contractual provisions with the bondholders relating to the receipt, allocation, pledging, and disbursement of revenues made available to the cabinet for bond purposes, and may enact and determine terms, conditions, and restrictions pursuant to which additional revenue bonds of the cabinet may be authorized and issued from time to time. The proceedings, determinations, and enactments of the board shall specify that the payment of principal of and interest on all cabinet revenue bonds and notes shall constitute a first charge and lien against all revenues made available to the cabinet for bond purposes before any such revenues are used, applied, and disbursed for any other valid purposes of the cabinet, including the payment of operation and maintenance costs incident to the operation of the cabinet.
    5. The proceeds of all revenue bonds or notes shall be used solely for the purpose of enabling the cabinet to enter into agreements or interim financing agreements with governmental agencies and private companies, corporations, partnerships, and other entities, to acquire and lease projects to governmental agencies, private companies, corporations, partnerships and other entities, to purchase obligations of governmental agencies issued for economic development projects, to make loans or grants to governmental agencies, private companies, corporations, partnerships, and other such entities for economic development projects, or for any purpose authorized in this chapter. Revenue bond or note proceeds may also be used and applied for the payment of ordinary and necessary expenses in connection with issuance of the revenue bonds or notes, including, but not by way of limitation, a sum equal to any discount in the sale thereof, if discount bids are authorized and permitted by the board, administrative expenses, including the preparation of revenue bonds or notes, publication of notices, printing and other costs, attorneys’ fees, and other ordinary and necessary costs of financing, including the payment of fees to fiscal agents for advice and assistance in the preparation and marketing of revenue bonds or notes.
    6. Prior to the preparation of definitive revenue bonds or notes, the board may, under like restrictions, issue interim receipts or temporary bonds, exchangeable for definitive revenue bonds or notes when the revenue bonds or notes shall have been executed, and are available for delivery. The board shall also provide for the replacement of any revenue bonds or notes that shall have become mutilated or shall have been destroyed or lost. Revenue bonds or notes may be issued under the provisions of this chapter directly by the board without obtaining the consent or acquiescence of any cabinet, division, commission, board, department, or agency of the state other than the Finance and Administration Cabinet, and as provided in KRS 42.420 , and without any other proceedings or the happening of any other conditions or things except as specifically required by this chapter and the provisions of the resolution or resolutions of the board authorizing the issuance of the revenue bonds or notes.
  2. The board shall assume all bond issuance and refunding authority, power, duties, and obligations as existed on July 14, 1992, for the Kentucky Development Finance Authority, and the Kentucky Rural Economic Development Authority; the ability of any of the foregoing organizations to issue industrial revenue bonds under KRS Chapter 103; and the ability of any of the foregoing authorities to issue economic development revenue bonds as provided in this chapter. The board shall also have the authority and power to issue revenue bonds for any other economic development activity as set forth in this chapter.
  3. The board shall for purposes of the Kentucky Revised Statutes be deemed to be the successor issuer for all of the currently issued and outstanding bond issues by the organizations set forth in subsection (2) of this section. The board shall have the authority and the power to reaffirm all existing bond obligations of the organizations in subsection (2) of this section and shall perform all duties, obligations, and requirements as may be necessary and required under the bond documents relating to each and every such issue. The board shall also, in regard to each and every such issue, exercise its authority and power as set forth in this chapter.
  4. In the discretion of the board, any revenue bonds or notes issued under the provisions of this chapter may be secured by a trust indenture by and between the cabinet and corporate trustee which may be any trust company or bank having the powers of a trust company within or without the Commonwealth. A trust indenture, or the resolution of the board providing for the issuance of revenue bonds or notes, may pledge or assign for the security of the revenue bonds or notes, all or any part of the totality of revenues made available to the cabinet for bond purposes received and to be received. The trust indenture or resolution of the board may contain provisions for protecting and enforcing the rights and remedies of the bondholders which may be reasonable and proper, and not in violation of law, including, but not limited to, covenants and provisions setting forth the duties of the cabinet in relation to the purposes to which revenue bonds and note proceeds may be applied; the disposition or pledging of assets and revenues made available to the cabinet for bond purposes; and the custody, safeguarding, and application of all such revenues. It shall be lawful for any bank or trust company incorporated under the laws of the Commonwealth which may act as depository of the proceeds of revenue bonds, notes, or revenues made available to the cabinet for bond purposes, to furnish such indemnifying bonds, or to pledge such securities as may be required by a trust indenture or resolution of the board. Any trust indenture or board resolution may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders, where a trust indenture has been entered into. In addition to the foregoing, any trust indenture or board resolution may contain other provisions which the board determines to be reasonable and proper for the further security of the holders of any revenue bonds or notes. All expenses incurred in carrying out the provisions of a trust indenture or bond proceedings may be treated as a part of the cost of operating the cabinet, and may be paid from revenues pledged or assigned to the payment of the principal of and the interest on revenue bonds or notes, or from any other funds properly available to the cabinet for bond purposes. However, the payment of operational costs from revenues made available to the cabinet for bond purposes shall, as provided in subsection (1) of this section, be subordinate to the payment of principal of and interest on cabinet revenue bonds or notes from revenues made available to the cabinet for bond purposes, it being intended that these principal and interest requirements shall be secured by a prior and paramount lien on gross revenues made available to the cabinet for bond purposes.
  5. Notwithstanding any other provision to the contrary, any trust indenture or board resolution shall provide that, except to the extent the rights afforded to bondholders by this section shall be enforceable and enforced by a trustee under a trust indenture rather than by the bondholders, any holder of revenue bonds or notes issued by the cabinet or any of the coupons appurtenant thereto, may, either at law or in equity, by suit, action, mandamus, or other proceedings, protect and enforce any and all rights generally arising under the laws of the Commonwealth, or granted under this chapter, or under a trust indenture, or by the resolution of the board authorizing the issuance of revenue bonds or notes, and may specifically enforce and compel by mandamus the performance of all duties required by this chapter, or by trust indenture, or board resolution, to be performed by the cabinet or by any officer or employee thereof, including, but not limited to, the prompt and full enforcement of the terms and conditions of all assistance agreements to which the cabinet is a party.
  6. The cabinet is hereby authorized to provide for the issuance of refunding revenue bonds or notes for the purpose of refunding any revenue bonds or notes then outstanding, whether issued by the cabinet under the provisions of this chapter or one (1) of the agencies, authorities or organizations referenced in subsections (2) and (3) of this section, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of these revenue bonds or notes, and, if determined advisable by the board, for the additional purpose of providing further funds for the carrying out of the proper public and governmental purposes of the cabinet. The issuance and sale of the refunding revenue bonds or notes, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the cabinet in respect of the same, shall be governed by the provisions of this chapter which relate to the issuance of revenue bonds or notes, insofar as these provisions may be applicable.
  7. Refunding revenue bonds or notes may be sold or exchanged directly for outstanding revenue bonds or notes of the cabinet, and if sold, the proceeds thereof shall be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of these outstanding revenue bonds or notes. Pending the application of the proceeds of any refunding revenue bonds, with any other available funds, to the payment of the principal, accrued interest, and any redemption premium on the revenue bonds or notes being refunded (and if so provided or permitted in the board resolution authorizing the issuance of the refunding revenue bonds or notes, or in the trust indenture securing the same, to the payment of any interest on the refunding revenue bonds or notes and any expenses in connection with the refunding), the proceeds may be invested in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America which shall mature or which shall be subject to redemption by the holders thereof at the option of such holders not later than the respective dates when the proceeds, together with the interest accruing thereon, will be required for the purposes intended.
  8. Revenue bonds and notes issued by the cabinet under the provisions of this chapter are hereby declared and deemed to be securities in which all public officers and public bodies of the Commonwealth and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. These obligations of the cabinet are hereby declared and determined to be securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the Commonwealth, for the purpose for which the deposit of bonds, notes, or obligations of the Commonwealth is now, or may hereafter be, authorized by law.
  9. Revenue bonds or notes issued by the cabinet under the provisions of this chapter shall not be deemed to constitute a debt of the Commonwealth or of any political subdivision thereof, or a pledge of the faith and credit of the Commonwealth or of any political subdivision thereof; but the bonds shall be payable as to principal and interest solely from revenues made available to the cabinet for bond purposes provided therefor under the provisions of this chapter. All such revenue bonds or notes shall contain on the face thereof a statement to the effect that neither the Commonwealth nor the cabinet shall be obligated to pay the same, or the interest thereon, except from revenues made available to the cabinet for bond purposes, as defined in this chapter; and that neither the faith and credit, nor the taxing power of the Commonwealth or any political subdivision thereof is pledged to the payment of the principal of and interest on such revenue bonds or notes.
  10. The Commonwealth, for the specific use and benefit of the cabinet, may cause to be submitted to the voters of the state in a manner provided by Sections 49 and 50 of the Constitution of Kentucky, from time to time, propositions for the incurring of state indebtedness represented by general obligation bonds of the Commonwealth, the proceeds of which are to be made available to the cabinet and used and employed by the cabinet for all proper purposes.
  11. Subject to the provisions of KRS 56.870 to 56.873 , the State Property and Buildings Commission or the Kentucky Turnpike Authority may issue bonds for which debt service originates with an appropriation of the General Assembly, and may make the proceeds available to the cabinet for all proper purposes.
  12. Funds appropriated to the cabinet by the General Assembly, including but not limited to repayments of revolving funds established with appropriations of the General Assembly or established with bond issues for which the debt service, issuance costs, reserve fund requirements, insurance premiums or any other expenditures associated with bond issuance are appropriated by the General Assembly, shall not be commingled with other funds made available to the cabinet and shall only be expended for the purposes specified by the General Assembly when the appropriation is made or as approved in subsequent actions of the General Assembly.

History. Enact. Acts 1992, ch. 105, § 30, effective July 14, 1992.

154.10-040. Selection and appointment of secretary of the Cabinet for Economic Development.

  1. In the selection and appointment of the secretary, the board shall set the qualifications for the position of the secretary, employ a national search firm and conduct a nationwide search for candidates, and select from that list three (3) candidates for secretary of the Cabinet for Economic Development. The names of the three (3) candidates shall be submitted to the Governor who shall choose one of them as secretary, except that, if the Governor so chooses, he may reject the first list of names and direct the board to submit a list of three (3) additional names, from which he shall appoint the secretary. Once appointed, the secretary shall serve at the pleasure of the board.
  2. The secretary shall be a person with significant experience and established reputation as an economic development professional.

History. Enact. Acts 1992, ch. 105, § 6, effective July 14, 1992.

154.10-050. Secretary as chief executive officer — Duties and responsibilities.

  1. The secretary shall be the chief executive officer of the Cabinet for Economic Development and shall possess the professional qualifications appropriate for that office as determined by the board.
  2. The board shall set the salary of the secretary and up to two (2) additional executive officers of the cabinet as determined by the board, which shall be exempt from state employee salary limitations as set forth in KRS 64.640 . No executive officer of the cabinet shall be paid a salary greater than that of the secretary.
  3. The secretary shall be responsible for the day-to-day operations of the cabinet and shall report and submit on an annual basis implementation plans to the board as provided in KRS 154.10-060 ; carry out policy and program directives of the board; coordinate programs of the cabinet with all other agencies of state government having economic development responsibilities; hire all other personnel of the cabinet consistent with state law; and carry out all other duties and responsibilities assigned by state law.
  4. The secretary shall prepare and submit the proposed budget of the cabinet to the chairman who shall present it to the board for final approval. Upon approval, the board shall submit the proposed budget to the Governor’s Office for Policy and Management.
  5. The secretary shall be reimbursed for all actual and necessary expenses incurred in the performance of all assigned duties and responsibilities.
  6. The secretary shall give highest priority consideration in marketing, targeting, and recruiting new businesses, in expanding existing businesses, and in recommending state economic development loans, grants, and incentive programs administered by the authority, to Kentucky counties which have had an average countywide rate of unemployment of fifteen percent (15%) or greater in the most recent twelve (12) consecutive months for which unemployment figures are available, on the basis of the final unemployment figures calculated by the Department of Workforce Investment within the Education and Workforce Development Cabinet.

History. Enact. Acts 1992, ch. 105, § 7, effective July 14, 1992; 2002, ch. 65, § 1, effective July 15, 2002; 2006, ch. 211, § 62, effective July 12, 2006; 2009, ch. 11, § 31, effective June 25, 2009; 2014, ch. 89, § 3, effective July 15, 2014; 2017 ch. 166, § 1, effective April 10, 2017; 2018 ch. 199, § 8, effective July 14, 2018; 2019 ch. 146, § 15, effective June 27, 2019.

Research References and Practice Aids

2020-2022 Budget Reference.

See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, B, 1, (5) at 867.

154.10-060. Submission of implementation plans to board.

  1. The secretary shall present annually to the board for its review and approval implementation plans for the approved strategies as set forth in the Commonwealth’s approved strategic economic development plan for which funds will be expended by the cabinet or other agencies receiving funds from the cabinet.
  2. Any agency receiving funds from or through the cabinet shall submit annually implementation plans to the board for its review and approval.

History. Enact. Acts 1992, ch. 105, § 8, effective July 14, 1992.

154.10-070. Initiation of new programs.

  1. The board shall have authority to direct the cabinet to initiate any new programs that it deems appropriate, including, but not limited to:
    1. A seed-stage financing program to provide seed-stage financing to innovative growth-oriented, emerging, and small Kentucky firms as distinguished from seed-capital financing by the level of risk and return associated with the investment;
    2. An applied research and development finance program to provide matching grants to Kentucky’s industries and universities to conduct applied research of strategic importance to Kentucky’s economy. If this program is created, the cabinet may contract for its administration with the Kentucky Science and Technology Council, Inc.;
    3. A government permitting and expediting program to assist businesses in expediting government permits and regulatory requirements;
    4. A surety bonding program to provide bonding assistance for small businesses in the form of education of the bonding process, bond waivers, and the creation of a bond fund;
    5. A Kentucky export authority to utilize the services of the Kentucky World Trade Center, university export trade programs, and export programs provided by other agencies within a context to provide financial assistance to Kentucky exporters through the financing of accounts receivable, letters of credit, and loan guarantees, and the use of commissioned sales agents in foreign countries;
    6. A flexible enterprise networks program to encourage and enable Kentucky firms to apply competitive management practices, modernize, and effectively compete in national and international markets;
    7. An economic response network to collect data on the needs of existing businesses in order to determine if a particular business or business sector is in trouble and about to fail or relocate, or is contemplating major expansion within Kentucky. The purpose of the program would be to assist the cabinet in developing responses to suit specific needs of Kentucky businesses and industries;
    8. A Kentucky technology service to integrate, broker, and deliver technology and related business services primarily to small- and medium-sized Kentucky firms. The service would fulfill its mission by brokering firms to the best possible existing public, private or university expert, by consulting directly with firms when no expert is available, and by coordinating seminars on technologies, management practices, and issues of competitive importance to Kentucky firms;
    9. A multimedia center to develop teleconference capabilities and other specialized marketing presentations for the use of state agencies and regional economic development centers and communities. The center would support Kentucky’s marketing efforts, enhance the state’s image of being progressive, and provide marketing and informational support to communities throughout the state;
    10. A community preparedness program to develop a list of criteria to identify those communities which are prepared to accommodate significant new or expanding businesses, to identify deficiencies of those communities which do not meet the criteria, and to provide assistance to those communities to eliminate their economic development deficiencies.
      1. Areas in which criteria would be developed to identify communities’ preparedness, would include, but not be limited to: infrastructure, site availability and conditions, environmental conditions, workforce, education, business and community support, housing, and health care.
      2. Communities having deficiencies should meet the stated criteria through assistance from readily available regional and local facilities and institutions; and
    11. A marketing assistance program to assess the resources of communities and to assist them in marketing and promotional efforts.

History. Enact. Acts 1992, ch. 105, § 9, effective July 14, 1992; 1998, ch. 414, § 21, effective July 15, 1998.

154.10-080. Regional offices and advisory boards.

  1. The board may establish one or more regional offices and provide staff as necessary to perform functions as prescribed by the board.
  2. The board may establish regional advisory boards consisting of representatives of government, private business, communities, and higher education; and prescribe their functions and responsibilities.
  3. The board may contract with existing economic development agencies as necessary to perform functions as prescribed by the board.

History. Enact. Acts 1992, ch. 105, § 15, effective July 14, 1992.

154.10-090. Cooperation among state agencies and coordination of programs.

  1. The secretary and the directors of other state agencies and entities receiving state funds for programs and activities which may affect state economic development shall cooperate in the coordination of those programs and activities to achieve the successful implementation of the state’s strategic economic development plan.
  2. The board shall compile a list of state agencies and the extent to which they have direct programmatic involvement in Kentucky’s economic development systems. This information shall be presented to the General Assembly before each even-numbered-year regular session for the purpose of considering programmatic and budget adjustments.
  3. Nothing in this chapter shall be construed as modifying, superseding, or repealing any provisions of KRS Chapter 146, 151, 224, or 350, or the obligations of the Energy and Environment Cabinet under those chapters.

History. Enact. Acts 1992, ch. 105, § 16, effective July 14, 1992; 2001, ch. 58, § 20, effective June 21, 2001; 2010, ch. 24, § 193, effective July 15, 2010.

Strategic Planning

154.10-100. Statewide network for information transfer and assistance — Purpose. [Repealed]

HISTORY: Enact. Acts 1992, ch. 105, § 11, effective July 14, 1992; repealed by 2018 ch. 199, § 37, effective July 14, 2018.

154.10-120. Preparation of state strategic plan for economic development. [Repealed]

HISTORY: Enact. Acts 1992, ch. 105, § 12, effective July 14, 1992; repealed by 2018 ch. 199, § 37, effective July 14, 2018.

154.10-125. Content and effect of strategic economic development plan. [Repealed]

HISTORY: Enact. Acts 1992, ch. 105, § 13, effective July 14, 1992; repealed by 2018 ch. 199, § 37, effective July 14, 2018.

154.10-140. Benchmarks to measure performance of economy and progress — Periodic evaluations of projects and programs. [Repealed]

HISTORY: Enact. Acts 1992, ch. 105, § 14, effective July 14, 1992; repealed by 2018 ch. 199, § 37, effective July 14, 2018.

SUBCHAPTER 12. Cabinet for Economic Development

Powers and Duties

154.12-050. Contracting of functions and services.

  1. The cabinet shall have the authority to contract for the provision of any economic development function or service with private firms or public institutions provided that such contracts meet the following conditions:
    1. They are based on competitive requests for proposals;
    2. They incorporate strict performance standards and accountability criteria;
    3. They require periodic audit;
    4. They are subject to regular rebidding; and
    5. Where appropriate, they leverage other private and public funds.
  2. Wherever feasible, the cabinet shall contract for the provision of functions and services rather than establishing new governmental structures.

History. Enact. Acts 1992, ch. 105, § 10, effective July 14, 1992.

154.12-100. Economic development fund — Project selection criteria — Written commitment — Approval — Report.

  1. Economic development fund means the fund authorized by the General Assembly for the purpose of promoting economic development within the state.
  2. The economic development fund shall be funded through the issuance of bonds by the State Property and Buildings Commission or other appropriation by the General Assembly.
  3. The economic development fund shall be administered by the secretary of the Cabinet for Economic Development. The authority shall promulgate administrative regulations in accordance with KRS Chapter 13A for project selection criteria and administration of the economic development fund. The project selection criteria shall include but not be limited to the following:
    1. Potential job creation or job retention;
    2. Degree of public or private and local involvement;
    3. Degree and conditions of project payback; and
    4. Amount of investment.
  4. Prior to submission of an economic development fund project to the authority, the secretary of the Cabinet for Economic Development shall receive a written commitment from the public or private organization which has requested funds outlining projected job creation and retention, an investment breakdown, and overall project description. This shall be submitted by the secretary to the authority. Subsequently, the secretary of the Cabinet for Economic Development shall execute a written agreement with the public or private organizations involved expressing in detail the respective obligations on the parties.
  5. Projects of state agencies as defined in KRS 42.005 shall not be eligible for funding from the economic development fund program, unless expressly provided in a branch budget bill. Airport construction and renovation projects shall be eligible for funding under this section. The secretary of the Cabinet for Economic Development shall consult with the secretary of the Finance and Administration Cabinet on the terms and conditions relating to the use of funds pursuant to this section before any commitment is made on any project to any public or private organization.
  6. Following the approval by the authority, the project shall be presented by the secretary of the Cabinet for Economic Development or his or her designee with supporting documentation for review and approval at the next regularly scheduled meeting of the Capital Projects and Bond Oversight Committee pursuant to KRS 45.810 and at the next regularly scheduled meeting of the State Property and Buildings Commission pursuant to KRS 56.450 .
  7. Notwithstanding the provisions of KRS 56.872(3), the amount of economic development funds issued during any biennium shall not exceed the balance of the fund, and any funds authorized in the biennial budget shall carry forward and shall not lapse.
  8. By November 1 of each year, the Cabinet for Economic Development shall prepare and post an annual report to the cabinet’s Web site as required in KRS 154.12-2035 , showing the economic development funds issued during the previous fiscal year, funds disbursed, the amounts paid back, and the balance still owing with respect to grants or loans made by the Cabinet for Economic Development with proceeds of economic development funds during the previous five (5) fiscal years.

History. Repealed, reenact. and amend. Acts 1992, ch. 105, § 29, effective July 14, 1992; 1994, ch. 387, § 26, effective July 15, 1994; 1996, ch. 194, § 16, effective July 15, 1996; 2014, ch. 134, § 4, effective July 15, 2014; 2018 ch. 199, § 10, effective July 14, 2018; 2019 ch. 172, § 1, effective March 26, 2019.

Compiler's Notes.

This section (Enact. Acts 1988, ch. 145, § 2, effective July 15, 1988; 1990, ch. 195, § 1, effective July 13, 1990; 1990, ch. 267, § 1, effective July 13, 1990) was formerly compiled as KRS 152.052 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 29, effective July 14, 1992.

Research References and Practice Aids

2020-2022 Budget Reference.

See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. II, B, (2) at 905.

2016-2018 Budget Reference.

See State/Executive Branch Budget, 2016 Ky. Acts ch. 149, Pt. II, B, (2) at 1100.

Organization

154.12-201. Office of Business and Technology — Office of Industrial Development. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1986, ch. 60, § 2, effective July 15, 1986; 1988, ch. 205, § 6, effective July 15, 1988; 1990, ch. 484, § 4, effective July 13, 1990 as KRS 152.025 ; repealed, reenact. and amend. as this section by Acts 1992, ch. 105, § 32, effective July 14, 1992 as KRS 154.12-201 ) was repealed by Acts 1994, ch. 499, § 28, effective July 15, 1994. For present law see KRS 154.12-210 .

154.12-202. Kentucky Recycling Brokerage Authority — Powers — Duties — Brokerage fee — Reports. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1991 (1st Ex. Sess.), ch. 12, § 13, effective February 26, 1991; 1992, ch. 39, § 1, effective July 14, 1992; 1994, ch. 499, § 12, effective July 15, 1995) was repealed, reenacted and amended as KRS 224.01-500 by Acts 1996, ch. 262, § 2.

This section was formerly compiled as KRS 152.045 .

154.12-203. Kentucky Commission on Military Affairs — Purposes — Powers — Executive committee — Executive director.

  1. There is created the Kentucky Commission on Military Affairs. The commission shall be a separate administrative body of state government within the meaning of KRS Chapter 12.
  2. It shall be the purpose of the Kentucky Commission on Military Affairs to:
    1. Address matters of military significance to Kentucky;
    2. Maintain a cooperative and constructive relationship between state agencies and the military entities in Kentucky, as necessary to ensure coordination and implementation of unified, comprehensive, statewide strategies involved with, or affected by, the military;
    3. Advise the Governor, the General Assembly, the Kentucky congressional delegation, and other appropriate government officials on all matters in which the military services and the Commonwealth have mutual interests, needs, and concerns;
    4. Take action to promote and optimize state and Department of Defense initiatives that will improve the military value of Kentucky’s National Guard, active, and reserve military force structure and installations, and improve the quality of life for military personnel residing in the Commonwealth;
    5. Coordinate, as necessary, the state’s interest in future Department of Defense base closure and restructuring activities;
    6. Recommend state, federal, and local economic development projects which would promote, foster, and support economic progress through military presence in the Commonwealth;
    7. Promote and assist the private sector in developing spin-off investments, employment, and educational opportunities associated with high-technology programs and activities at Kentucky’s military installations;
    8. Recommend to the Kentucky Economic Development Partnership the long-range options and potential for the defense facilities located in Kentucky;
    9. Develop strategies to encourage military personnel to retire and relocate in Kentucky and promote those leaving the military as a viable quality workforce for economic development and industrial recruitment; and
    10. Allocate available grant money to qualified applicants to further the purposes of paragraphs (a) to (i) of this subsection.
  3. The Kentucky Commission on Military Affairs shall consist of:
    1. The Governor or a designated representative;
    2. The secretary of the Cabinet for Economic Development or a designated representative;
    3. The adjutant general of the Commonwealth or a designated representative;
    4. The executive director of the Office of Homeland Security or a designated representative;
    5. The secretaries of the following cabinets or their designees:
      1. Finance and Administration;
      2. Justice and Public Safety;
      3. Energy and Environment;
      4. Transportation;
      5. Education and Workforce Development;
      6. Health and Family Services;
      7. Personnel;
      8. Labor;
      9. Public Protection; and
      10. Tourism, Arts and Heritage;
    6. The Attorney General or a designated representative;
    7. The commissioner of the Department of Veterans’ Affairs or a designated representative;
    8. The executive director of the Kentucky Commission on Military Affairs or a designated representative;
    9. The chairperson of the Kentucky Committee for Employer Support of the Guard and Reserve;
    10. Kentucky’s Civilian Aides to the Secretary of the United States Army;
    11. The chairperson of the Senate Veterans, Military Affairs, and Public Protection Committee and the chairperson of the House of Representatives Veterans, Military Affairs, and Public Safety Committee;
    12. The Chief Justice or a designated representative;
    13. The commander or the designee of the commander of each of the following as nonvoting, ex officio members:
      1. U.S. Army Cadet Command;
      2. U.S. Army Human Resources Command;
      3. U.S. Army Recruiting Command;
      4. 84th Training Command;
      5. One Hundredth Division (Institutional Training);
      6. 101st Airborne Division;
      7. Blue Grass Army Depot;
      8. Fort Campbell Garrison;
      9. Fort Knox Garrison;
      10. 11th Theatre Aviation Command, U.S. Army Reserve;
      11. U.S. Army Corps of Engineers, Louisville District;
      12. Adjutant General of the U.S. Army;
      13. U.S. Coast Guard Sector Ohio Valley;
      14. First Army Division East;
      15. 1st Theater Sustainment Command; and
      16. Fifth (V) Corps; and
    14. Five (5) at-large members appointed by the Governor, who shall be residents of counties significantly impacted by military installations.
  4. The terms of the five (5) at-large members shall be staggered so that two (2) appointments shall expire at two (2) years, one (1) appointment shall expire at three (3) years, and two (2) appointments shall expire at four (4) years, from the dates of initial appointment.
    1. The commission shall establish an executive committee consisting of the secretary of the Cabinet for Economic Development, the adjutant general of the Commonwealth, the commissioner of the Department of Veterans’ Affairs, the executive director of the Kentucky Commission on Military Affairs, and the five (5) at-large members. The chair and vice chair of the Kentucky Commission on Military Affairs shall be appointed by the Governor from among the members of the executive committee. (5) (a) The commission shall establish an executive committee consisting of the secretary of the Cabinet for Economic Development, the adjutant general of the Commonwealth, the commissioner of the Department of Veterans’ Affairs, the executive director of the Kentucky Commission on Military Affairs, and the five (5) at-large members. The chair and vice chair of the Kentucky Commission on Military Affairs shall be appointed by the Governor from among the members of the executive committee.
    2. The chair and vice chair of the commission shall also serve as chair and vice chair of the executive committee.
    3. The executive committee shall serve as the search committee for an executive director of the commission and shall have any other authority the commission delegates to it.
  5. The commission shall meet one (1) time each year, and may meet at other times on call of the chair, to establish the commission’s goals and to review issues identified and recommendations made by the executive committee. A majority of the members shall constitute a quorum for the transaction of the commission’s business. Members’ designees shall have voting privileges at commission meetings.
  6. Members of the commission shall serve without compensation, but shall be reimbursed for their necessary travel expenses actually incurred in the discharge of their duties on the commission, subject to Finance and Administration Cabinet administrative regulations.
  7. The commission may establish committees or work groups composed of commission members and citizens as necessary to advise the commission in carrying out its responsibilities, duties, and powers. Citizen members of committees or work groups shall not have a vote.
  8. The commission may promulgate necessary administrative regulations as prescribed by KRS Chapter 13A.
  9. The commission may adopt bylaws and operating policies necessary for its efficient and effective operation.
  10. There shall be an executive director, who shall be the administrative head and chief executive officer of the commission, recommended by the executive committee, approved by the commission, and appointed by the Governor. The executive director shall have authority to hire staff, contract for services, expend funds, and operate the normal business activities of the commission.
  11. The Kentucky Commission on Military Affairs and its executive committee shall be an independent agency attached to the Office of the Governor.

History. Enact. Acts 1992, ch. 176, § 1, effective July 14, 1992; 1994, ch. 486, § 24, effective July 15, 1994; 1996, ch. 113, § 3, effective July 15, 1996; 1998, ch. 199, § 1, effective March 27, 1998; 1998, ch. 426, § 108, effective July 15, 1998; 2000, ch. 228, § 1, effective July 14, 2000; 2005, ch. 33, § 1, effective June 20, 2005; 2005, ch. 99, § 22, effective June 20, 2005; 2006, ch. 211, § 63, effective July 12, 2006; 2010, ch. 16, § 1, effective July 15, 2010; 2010, ch. 24, § 194, effective July 15, 2010; 2011, ch. 11, § 1, effective June 8, 2011; 2014, ch. 57, § 1, effective July 15, 2014; 2015 ch. 93, § 1, effective June 24, 2015; 2020 ch. 43, § 1, effective July 15, 2020.

154.12-2033. Eligibility of endorsed capital construction projects for state economic development incentives.

  1. Any capital construction project endorsed by the Kentucky Commission on Military Affairs as preserving or creating jobs at military facilities located in Kentucky shall be eligible for state economic development incentives prescribed in this chapter, including but not limited to those provided in KRS 154.22-010 to 154.22-070 , KRS 154.24-010 to 154.24-150 , KRS 154.26-010 to 154.26-100 , KRS 154.28-010 to 154.28-090 and KRS 141.400 , and KRS 154.33-501 to 154.33-585 ; however, no project shall receive state financial assistance unless first approved by the Kentucky Economic Development Finance Authority. No project shall be located on federally owned or leased property.
  2. All standards, procedures, and requirements applicable to projects approved by the Kentucky Economic Development Finance Authority for state economic development incentives pursuant to the provisions of this chapter shall be applicable to all economic development projects submitted by the commission and approved by the authority for assistance.
  3. Notwithstanding any laws of the Commonwealth to the contrary, costs of highway and other transportation related construction and other infrastructure facilities improvements associated with a project endorsed by the commission may be eligible for state funding under programs administered by the Transportation Cabinet and the Kentucky Infrastructure Authority.

History. Enact. Acts 1996, ch. 113, § 5, effective July 15, 1996.

154.12-2035. Electronic database of approved program projects — Annual report — Programs included — Coordination with other agencies. [Effective until June 29, 2021]

  1. The cabinet shall maintain a searchable electronic database on its Web site containing information on the cost and status of the programs listed in subsection (3)(a) of this section. The database shall include all projects approved at any time in the last five (5) years and shall include for each, where applicable, the following information:
    1. The name of the program, the recipient or participant, the type of project, and its location by county;
    2. Total and approved costs of the project or investment, and the amount of incentives or other benefits authorized;
    3. For the Kentucky Business Investment Program and the Kentucky Enterprise Initiative Act, the amount of incentives or other benefits actually recovered as self-reported by the recipient;
    4. The number of new jobs estimated and, for the Kentucky Business Investment Program, actually created, along with wage information for those jobs;
    5. Project status and the date and nature of the most recent activity; and
    6. Any other comparable data or information necessary to achieve transparency and accountability for the specified programs.
  2. In addition to the electronic database required in subsection (1) of this section, the cabinet shall prepare an annual report on the programs listed in subsection (3) of this section and make it available on the Cabinet for Economic Development Web site by November 1 of each year. The report shall include all projects approved in the preceding fiscal year and shall provide for these projects the information specified in subsection (1) of this section plus aggregate data for each program, summary evaluations of program activity and effectiveness, and anything required by statute to be reported for any particular program. The report shall also list all projects that were approved in prior years but active at any time in the preceding fiscal year, although for these projects the report need not provide further data.
  3. The following programs shall be subject to the reporting requirements of this section:
    1. The electronic database required in subsection (1) of this section shall include the Bluegrass State Skills Corporation, grants-in-aid and skills training investment credit; Kentucky Business Investment Program; Kentucky Enterprise Initiative Act; Office of Entrepreneurship programs; Incentives for Energy Independence Act; Kentucky Economic Development Finance Authority small business and direct loan programs; Kentucky Industrial Revitalization Act; Kentucky Reinvestment Act; Kentucky Small Business Tax Credit; economic development bonds; Kentucky Industrial Development Act; Kentucky Jobs Development Act; Kentucky Jobs Retention Act; the Kentucky Rural Economic Development Act; and
    2. The annual report required by subsection (2) of this section shall include all programs listed in paragraph (a) of this subsection plus the Kentucky Investment Fund Act, and tax increment financing, state participation projects.
  4. The cabinet shall coordinate with any other agency necessary to supply the information required by this section.

History. Enact. Acts 2014, ch. 134, § 1, effective July 15, 2014; 2018 ch. 199, § 18, effective July 14, 2018.

Legislative Research Commission Note.

(7/15/2014). 2014 Ky. Acts ch. 89, sec. 13, instructs the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in the Act, as it confirms the reorganization of the Cabinet for Economic Development. Such a correction has been made in subsection (3)(a) of this statute.

154.12-2035. Electronic database of approved program projects — Annual report — Programs included — Coordination with other agencies. [Effective July 1, 2021]

  1. The cabinet shall maintain a searchable electronic database on its Web site containing information on the cost and status of the programs listed in subsection (3)(a) of this section. The database shall include all projects approved at any time in the last five (5) years and shall include for each, where applicable, the following information:
    1. The name of the program, the recipient or participant, the type of project, and its location by county;
    2. Total and approved costs of the project or investment, and the amount of incentives or other benefits authorized;
    3. For the Kentucky Business Investment Program and the Kentucky Enterprise Initiative Act, the amount of incentives or other benefits actually recovered as self-reported by the recipient;
    4. The number of new jobs estimated and, for the Kentucky Business Investment Program, actually created, along with wage information for those jobs;
    5. Project status and the date and nature of the most recent activity; and
    6. Any other comparable data or information necessary to achieve transparency and accountability for the specified programs.
  2. In addition to the electronic database required in subsection (1) of this section, the cabinet shall prepare an annual report on the programs listed in subsection (3) of this section and make it available on the Cabinet for Economic Development Web site by November 1 of each year. The report shall include all projects approved in the preceding fiscal year and shall provide for these projects the information specified in subsection (1) of this section plus aggregate data for each program, summary evaluations of program activity and effectiveness, and anything required by statute to be reported for any particular program. The report shall also list all projects that were approved in prior years but active at any time in the preceding fiscal year, although for these projects the report need not provide further data.
  3. The following programs shall be subject to the reporting requirements of this section:
    1. The electronic database required in subsection (1) of this section shall include the Bluegrass State Skills Corporation, grants-in-aid and skills training investment credit; Kentucky Business Investment Program; Kentucky Enterprise Initiative Act; Office of Entrepreneurship programs; Incentives for Energy-related Business Act; Kentucky Economic Development Finance Authority small business and direct loan programs; Kentucky Industrial Revitalization Act; Kentucky Reinvestment Act; Kentucky Small Business Tax Credit; economic development bonds; Kentucky Industrial Development Act; Kentucky Jobs Development Act; Kentucky Jobs Retention Act; the Kentucky Rural Economic Development Act; and
    2. The annual report required by subsection (2) of this section shall include all programs listed in paragraph (a) of this subsection plus the Kentucky Investment Fund Act, and tax increment financing, state participation projects.
  4. The cabinet shall coordinate with any other agency necessary to supply the information required by this section.

HISTORY: Enact. Acts 2014, ch. 134, § 1, effective July 15, 2014; 2018 ch. 199, § 18, effective July 14, 2018; 2021 ch. 141, § 5, effective July 1, 2021.

154.12-2035. Electronic database of approved program projects — Annual report — Programs included — Coordination with other agencies. [Effective June 29, 2021]

  1. The cabinet shall maintain a searchable electronic database on its Web site containing information on the cost and status of the programs listed in subsection (3)(a) of this section. The database shall include all projects approved at any time in the last five (5) years and shall include for each, where applicable, the following information:
    1. The name of the program, the recipient or participant, the type of project, and its location by county;
    2. Total and approved costs of the project or investment, and the amount of incentives or other benefits authorized;
    3. For the Kentucky Business Investment Program and the Kentucky Enterprise Initiative Act, the amount of incentives or other benefits actually recovered as self-reported by the recipient;
    4. The number of new jobs estimated and, for the Kentucky Business Investment Program, actually created, along with wage information for those jobs;
    5. Project status and the date and nature of the most recent activity; and
    6. Any other comparable data or information necessary to achieve transparency and accountability for the specified programs.
  2. In addition to the electronic database required in subsection (1) of this section, the cabinet shall prepare an annual report on the programs listed in subsection (3) of this section and make it available on the Cabinet for Economic Development Web site by November 1 of each year. The report shall include all projects approved in the preceding fiscal year and shall provide for these projects the information specified in subsection (1) of this section plus aggregate data for each program, summary evaluations of program activity and effectiveness, and anything required by statute to be reported for any particular program. The report shall also list all projects that were approved in prior years but active at any time in the preceding fiscal year, although for these projects the report need not provide further data.
  3. The following programs shall be subject to the reporting requirements of this section:
    1. The electronic database required in subsection (1) of this section shall include the Bluegrass State Skills Corporation, grants-in-aid and skills training investment credit; Kentucky Business Investment Program; Kentucky Enterprise Initiative Act; Office of Entrepreneurship and Small Business Innovation programs; Incentives for Energy Independence Act; Kentucky Economic Development Finance Authority small business and direct loan programs; Kentucky Industrial Revitalization Act; Kentucky Reinvestment Act; Kentucky Small Business Tax Credit; economic development bonds; Kentucky Industrial Development Act; Kentucky Jobs Development Act; Kentucky Jobs Retention Act; the Kentucky Rural Economic Development Act; and
    2. The annual report required by subsection (2) of this section shall include all programs listed in paragraph (a) of this subsection plus the Kentucky Investment Fund Act, and tax increment financing, state participation projects.
  4. The cabinet shall coordinate with any other agency necessary to supply the information required by this section.

HISTORY: Enact. Acts 2014, ch. 134, § 1, effective July 15, 2014; 2018 ch. 199, § 18, effective July 14, 2018; 2021 ch. 185, § 108, effective June 29, 2021.

154.12-204. Definitions for KRS 154.12-205 to 154.12-208. [Effective until June 29, 2021]

As used in KRS 154.12-205 to 154.12-208 , unless the context requires otherwise:

  1. “Applicant” means an educational institution, business, or industry that has made application for a grant-in-aid or skills training investment credit as authorized by KRS 154.12-205 to 154.12-208 ;
  2. “Approved company” means any qualified company seeking to sponsor an occupational upgrade training program or skills upgrade training program for the benefit of one (1) or more of its employees, which is approved by the corporation to receive grant-in-aid or skills training investment credits as provided by KRS 154.12-205 to 154.12-208 ;
  3. “Approved costs” means:
    1. Fees or salaries required to be paid to instructors who are employees of the approved company, instructors who are full-time, part-time, or adjunct instructors with an educational institution, and instructors who are consultants on contract with an approved company in connection with an occupational upgrade training program or skills upgrade training program sponsored by an approved company;
    2. The cost of supplies and materials used exclusively in an occupational upgrade training program or skills upgrade training program sponsored by an approved company;
    3. Employee wages to be paid in connection with an occupational upgrade training program or skills upgrade training program sponsored by an approved company; and
    4. All other costs of a nature comparable to those described in this subsection;
  4. “Board” means the board of directors of the Bluegrass State Skills Corporation;
  5. “Corporation” means the Bluegrass State Skills Corporation, or BSSC;
  6. “Educational institution” means a public or nonpublic secondary or postsecondary institution or an independent provider within the Commonwealth authorized by law to provide a program of skills training or education beyond the secondary school level or to adult persons without a high school diploma or its equivalent;
  7. “Employee” means any person:
    1. Who is currently a permanent full-time employee of the qualified company;
    2. Who is a resident of Kentucky, as that term is defined in KRS 141.010 ; and
    3. Who is paid the minimum base hourly wage plus employee benefits equal to or greater than fifteen percent (15%) of the minimum base hourly wage. If the qualified company does not provide employee benefits equal to at least fifteen percent (15%) of the minimum base hourly wage, the qualified company may still qualify if it provides the full-time employee total hourly compensation equal to or greater than one hundred fifteen percent (115%) of the minimum base hourly wage through increased hourly wages combined with at least one (1) company-paid employee benefit;
  8. “Grant-in-aid” means funding that is provided to an educational institution and qualified companies by the BSSC for the development or expansion of a program as provided in this chapter;
  9. “Minimum base hourly wage” means the minimum wage amount paid to an employee by a qualified company, which shall not be less than one hundred fifty percent (150%) of the federal minimum wage;
  10. “Occupational upgrade training” means employee training sponsored by a qualified company that is designed to qualify the employee for a promotional opportunity with the qualified company;
  11. “Program” or “program of skills training or education consistent with employment needs” means a coordinated course of instruction which is designed to prepare individuals for employment in a specific trade, occupation, or profession. Such instruction may include:
    1. Classroom instruction;
    2. Classroom-related field, shop, factory, office, or laboratory work; and
    3. Basic skills, entry level training, job upgrading, retraining, and advance training;
    1. “Qualified company” means any person, corporation, limited liability company, partnership, limited partnership, sole proprietorship, firm, enterprise, franchise, association, organization, holding company, joint stock company, professional services corporation or any other legal entity through which business is conducted that has been or is planning to be actively engaged in one (1) or more of the following activities within the Commonwealth: (12) (a) “Qualified company” means any person, corporation, limited liability company, partnership, limited partnership, sole proprietorship, firm, enterprise, franchise, association, organization, holding company, joint stock company, professional services corporation or any other legal entity through which business is conducted that has been or is planning to be actively engaged in one (1) or more of the following activities within the Commonwealth:
      1. Manufacturing;
      2. Agribusiness;
      3. Nonretail service or technology;
      4. National or regional headquarter operations, regardless of the underlying business activity of the company; or
      5. Health care.
    2. “Qualified company” does not include companies where the primary activity to be conducted within the Commonwealth is forestry, fishing, mining, coal or mineral processing, the provision of utilities, construction, wholesale trade, retail trade, real estate, rental and leasing, accommodation and food services, or public administration services.
    3. Other qualified companies may be included if specific funds for grants-in-aid to retail business and industry are appropriated by the General Assembly;
  12. “Skills upgrade training” means employee training sponsored by a qualified company that is designed to provide the employee with new skills necessary to enhance productivity, improve performance, or retain employment, including but not limited to technical and interpersonal skills, and training that is designed to enhance computer skills, communication skills, problem solving, reading, writing, or math skills of employees who are unable to function effectively on the job due to deficiencies in these areas, are unable to advance on the job, or who risk displacement because their skill deficiencies inhibit their training potential for new technology;
  13. “Skills training investment credit” means the credit against Kentucky income tax imposed by KRS 141.020 or 141.040 , and the limited liability entity tax imposed by KRS 141.040 1, as provided in this subchapter; and
  14. “Technical assistance” means professional and any other assistance provided by qualified companies to an educational institution, which is reasonably calculated to support directly the development and expansion of a particular program as defined herein.

History. Enact. Acts 1984, ch. 211, § 1, effective July 13, 1984, repealed and reenact. Acts 1990, ch. 476, Pt. V, § 391, effective July 13, 1990; repealed and reenact. Acts 1990, ch. 476, Pt. V, § 391, effective July 13, 1990; 1996, ch. 194, § 17, effective July 15, 1996; 2000, ch. 300, § 5, effective July 14, 2000; 2000, ch. 526, § 13, effective July 14, 2000; 2006, ch. 149, § 209, effective July 12, 2006; 2018 ch. 199, § 11, effective July 14, 2018.

Compiler’s Notes.

This section was formerly compiled as KRS 157.710 .

Opinions of Attorney General.

There is no legislative grant of authority for the BSSC to provide assistance to a private nonprofit corporation because it is a “business and industry,” as defined in subsection (3) of this section; the BSSC may provide grants-in-aid to a private nonprofit corporation, if such corporation meets the definition of an educational institution; other assistance the BSSC might provide to a private nonprofit corporation would have to conform to KRS 154.12-206 (8), (10), or (11) and any contention that the BSSC may provide assistance, other than as set out in KRS 154.12-204 through 154.12-208 to a private nonprofit corporation, because such entity is a “business and industry” (subsection (3)), is negated by the specific mechanisms of assistance set forth in KRS 154.12-206 (8), (9), (10), (11), and 154.12-207 (1). OAG 91-95 .

154.12-204. Definitions for KRS 154.12-205 to 154.12-208. [Effective June 29, 2021]

As used in KRS 154.12-205 to 154.12-208 , unless the context requires otherwise:

  1. “Agribusiness” has the same meaning as in Section 118 of this Act;
  2. “Alternative fuel production” has the same meaning as in Section 118 of this Act;
  3. “Applicant” means a business or industry that has made application for a grant-in-aid or skills training investment credit as authorized by KRS 154.12-205 to 154.12-208 ;
  4. “Approved company” means any qualified company seeking to sponsor an occupational upgrade training program or skills upgrade training program for the benefit of one (1) or more of its employees, which is approved by the corporation to receive grant-in-aid or skills training investment credits as provided by KRS 154.12-205 to 154.12-208 ;
  5. “Approved costs” means costs confirmed as eligible by the corporation, including:
    1. Fees or salaries required to be paid to instructors who are employees of the approved company, instructors who are full-time, part-time, or adjunct instructors with an educational institution, and instructors who are consultants on contract with an approved company in connection with an occupational upgrade training program or skills upgrade training program sponsored by an approved company;
    2. The cost of supplies and materials used exclusively in an occupational upgrade training program or skills upgrade training program sponsored by an approved company;
    3. Employee wages to be paid in connection with an occupational upgrade training program or skills upgrade training program sponsored by an approved company; and
    4. All other costs of a nature comparable to those described in this subsection;
  6. “Board” means the board of directors of the Bluegrass State Skills Corporation;
  7. “Carbon dioxide transmission pipeline” has the same meaning as in Section 118 of this Act;
  8. “Coal severing and processing” has the same meaning as in Section 118 of this Act;
  9. “Corporation” means the Bluegrass State Skills Corporation, or BSSC;
  10. “Educational institution” means a public or nonpublic secondary or postsecondary institution or an independent provider within the Commonwealth authorized by law to provide a program of skills training or education beyond the secondary school level or to adult persons without a high school diploma or its equivalent;
  11. “Employee” means any person:
    1. Who is currently a permanent full-time employee of the qualified company;
    2. Who is a resident of Kentucky, as that term is defined in KRS 141.010 ; and
    3. Who is paid the minimum base hourly wage plus employee benefits equal to or greater than fifteen percent (15%) of the minimum base hourly wage. If the qualified company does not provide employee benefits equal to at least fifteen percent (15%) of the minimum base hourly wage, the qualified company may still qualify if it provides the full-time employee total hourly compensation equal to or greater than one hundred fifteen percent (115%) of the minimum base hourly wage through increased hourly wages combined with at least one (1) company-paid employee benefit;
  12. “Energy-efficient alternative fuel production” has the same meaning as in Section 118 of this Act;
  13. “Gasification production” has the same meaning as in Section 118 of this Act;
  14. “Grant-in-aid” means funding that is provided to qualified companies by the BSSC for the development or expansion of a program as provided in this chapter;
  15. “Headquarters” has the same meaning as in Section 118 of this Act;
  16. “Hospital” has the same meaning as in Section 118 of this Act;
  17. “Manufacturing” has the same meaning as in Section 118 of this Act;
  18. “Minimum base hourly wage” means the minimum wage amount paid to an employee by a qualified company, which shall not be less than one hundred fifty percent (150%) of the federal minimum wage;
  19. “Nonretail service or technology” means the same as in Section 118 of this Act;
  20. “Occupational upgrade training” means employee training sponsored by a qualified company that is designed to qualify the employee for a promotional opportunity with the qualified company;
  21. “Program” or “program of skills training or education consistent with employment needs” means a coordinated course of instruction which is designed to prepare individuals for employment in a specific trade, occupation, or profession. Such instruction may include:
    1. Classroom instruction;
    2. Classroom-related field, shop, factory, office, or laboratory work; and
    3. Basic skills, entry level training, job upgrading, retraining, and advance training;
    1. “Qualified company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other legal entity through which business is conducted that is engaged in or is planning to be engaged in one (1) or more of the following activities within the Commonwealth: (22) (a) “Qualified company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other legal entity through which business is conducted that is engaged in or is planning to be engaged in one (1) or more of the following activities within the Commonwealth:
      1. Manufacturing;
      2. Agribusiness;
      3. Nonretail service or technology;
      4. Headquarter operations, regardless of the underlying business activity of the company;
      5. Alternative fuel, gasification, energy-efficient alternative fuel, or renewable energy production;
      6. Carbon dioxide transmission pipeline;
      7. Coal severing and processing; or
      8. Hospital operations.
    2. “Qualified company” does not include companies where the primary activity to be conducted within the Commonwealth is forestry, fishing, the provision of utilities, construction, wholesale trade, retail trade, real estate, rental and leasing, accommodation and food services, or public administration services;
  22. “Renewable energy production” means the same as in Section 118 of this Act;
  23. “Skills upgrade training” means employee training sponsored by a qualified company that is designed to provide the employee with new skills necessary to enhance productivity, improve performance, or retain employment, including but not limited to technical and interpersonal skills, and training that is designed to enhance computer skills, communication skills, problem solving, reading, writing, or math skills of employees who are unable to function effectively on the job due to deficiencies in these areas, are unable to advance on the job, or who risk displacement because their skill deficiencies inhibit their training potential for new technology;
  24. “Skills training investment credit” means the credit against Kentucky income tax imposed by KRS 141.020 or 141.040 , and the limited liability entity tax imposed by KRS 141.040 1, as provided in this subchapter; and
  25. “Technical assistance” means professional and any other assistance provided by qualified companies to an educational institution, which is reasonably calculated to support directly the development and expansion of a particular program as defined herein.

HISTORY: Enact. Acts 1984, ch. 211, § 1, effective July 13, 1984, repealed and reenact. Acts 1990, ch. 476, Pt. V, § 391, effective July 13, 1990; repealed and reenact. Acts 1990, ch. 476, Pt. V, § 391, effective July 13, 1990; 1996, ch. 194, § 17, effective July 15, 1996; 2000, ch. 300, § 5, effective July 14, 2000; 2000, ch. 526, § 13, effective July 14, 2000; 2006, ch. 149, § 209, effective July 12, 2006; 2018 ch. 199, § 11, effective July 14, 2018; 2021 ch. 185, § 102, effective June 29, 2021.

154.12-205. Bluegrass State Skills Corporation — Board.

  1. There is hereby created an independent, de jure corporation of the Commonwealth with all the general corporate powers incidental thereto which shall be known as the “Bluegrass State Skills Corporation.” The corporation shall be a political subdivision of the state and shall be attached to the Cabinet for Economic Development.
  2. The corporation is created and established to improve and promote the employment opportunities of the citizens of the Commonwealth by creating and expanding programs of skills training and education which meet the needs of qualified companies.
  3. The corporation shall be governed by a board of directors consisting of eighteen (18) members, including the following six (6) ex officio members: the commissioner of the Department of Workforce Investment or his or her designee, the secretary of the Cabinet for Economic Development, the secretary of the Labor Cabinet, the president of the Council on Postsecondary Education, the secretary of the Education and Workforce Development Cabinet, and the president of the Kentucky Community and Technical College System. The twelve (12) other members shall be appointed by the Governor, including persons having knowledge and experience in business and industry, skills training, education, and minority employment; and at least one (1) of the twelve (12) members shall be appointed to represent labor organizations. Each member appointed by the Governor shall serve for a term of four (4) years, except that in making the initial appointments, the Governor shall appoint three (3) members to serve for one (1) year, three (3) members to serve for two (2) years, three (3) members to serve for three (3) years, and three (3) members to serve for four (4) years. All succeeding appointments shall be for a term of four (4) years.
  4. In the event of a vacancy, the Governor may appoint a replacement member who shall hold office during the remainder of the term so vacated.
  5. Any member may be removed from his appointment by the Governor for cause.
  6. The Governor shall designate a member of the board as its chairman.
  7. Members of the board of directors of the corporation, except for ex officio members, shall be entitled to compensation for their services in the amount of one hundred dollars ($100) for each regular or special called meeting of the corporation, and all members shall be entitled to reimbursement for any actual and necessary expenses incurred in the performance of their duties.
  8. The board of directors of the corporation shall annually elect a vice chairman, a secretary, and a treasurer. The secretary shall keep a record of the proceedings of the corporation and shall be custodian of all books, documents, and papers filed with the corporation, and its official seal.
  9. The Cabinet for Economic Development shall provide staff and support services to the corporation and shall direct and supervise its administrative affairs and general management subject to the policies, control, and direction of the board.
  10. All officers and employees of the corporation having access to its funding shall give bond to the corporation, at its expense, in the amount and with the surety as the board may prescribe.

HISTORY: Enact. Acts 1984, ch. 211, § 2, effective July 13, 1984; 1988, ch. 199, § 1, effective July 15, 1988; 1988, ch. 205, § 8, effective July 15, 1988; 1990, ch. 476, Pt. IV, § 195, effective July 13, 1990; 1992, ch. 105, § 52, effective July 14, 1992; 1992, ch. 417, § 10, effective July 14, 1992; 1996, ch. 194, § 18, effective July 15, 1996; 1997 (1st Ex. Sess.), ch. 1, § 55, effective May 30, 1997; 2006, ch. 211, § 64, effective July 12, 2006; 2009, ch. 11, § 32, effective June 25, 2009; 2010, ch. 24, § 195, effective July 15, 2010; 2018 ch. 199, § 12, effective July 14, 2018.

Compiler’s Notes.

This section was formerly compiled as KRS 157.720 .

Opinions of Attorney General.

There is no legislative grant of authority for the BSSC to provide assistance to a private nonprofit corporation because it is a “business and industry,” as defined in KRS 154.12-204 (3); the BSSC may provide grants-in-aid to a private nonprofit corporation, if such corporation meets the definition of an educational institution; other assistance the BSSC might provide to a private nonprofit corporation would have to conform to KRS 154.12-206 (8), (10), or (11) and any contention that the BSSC may provide assistance, other than as set out in KRS 154.12-204 through 154.12-208 to a private nonprofit corporation, because such entity is a “business and industry” (KRS 154.12-204(3)), is negated by the specific mechanisms of assistance set forth in KRS 154.12-206 (8), (9), (10), (11), and 154.12-207 (1). OAG 91-95 .

154.12-206. Duties of corporation. [Effective until June 29, 2021]

The corporation shall have all of the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including, but not limited to the following:

  1. To adopt bylaws for the regulation of its affairs and the conduct of its business and to prescribe rules, regulations, and policies in connection with the performance of its function and duties;
  2. To adopt an official seal;
  3. To sue and be sued in its own name;
  4. To make contracts and execute all instruments necessary or convenient for the conduct of its business;
  5. To make, execute, and effectuate all agreements with any federal or state agency or any person, corporation, association, partnership, or other organization or entity necessary to accomplish the purposes of this chapter;
  6. To procure sufficient insurance coverage against any losses in connection with its property;
  7. To accept any and all donations, grants, bequests, and devices, conditional or otherwise, of money, property, service, or other things of value which may be received from the United States, or any agency thereof, any governmental agency, an institution, person, firm, or corporation, public and private, to be held, used, or applied solely for the purposes specified in KRS 154.12-204 to 154.12-208 . Receipt of each donation or grant shall be detailed in the annual report of the corporation. Such reports shall include the identity of the donor and the nature of the transaction;
  8. To collect and disseminate to interested individuals, in cooperation with and through any agencies of federal, state, and municipal government, information concerning areas of present and projected employment need, programs of skills training and education consistent therewith, and any other relevant information;
  9. To provide grants-in-aid to educational institutions and approved companies to encourage and facilitate the formation of comprehensive cooperative relationships between the public and private sectors which secure for such institutions the information, technical assistance, and financial support necessary for the development and significant expansion of programs of skills training and education consistent with employment need;
  10. To prepare, publish, and distribute, with or without charge as the corporation may determine, such technical studies, reports, bulletins, and other materials as it deems appropriate;
  11. To organize, conduct, or sponsor special institutes, conferences, demonstrations, and studies to effectuate the purposes of KRS 154.12-204 to 154.12-208 ; and
  12. To certify or decertify skills training providers, both public and private, including their teachers and instructors as approved providers of skills training services for a grant-in-aid.

History. Enact. Acts 1984, ch. 211, § 3, effective July 13, 1984; repealed and reenact., Acts 1990, ch. 476, Pt. V, § 392, effective July 13, 1990; 1996, ch. 194, § 19, effective July 15, 1996; 2018 ch. 199, § 13, effective July 14, 2018.

Compiler’s Notes.

This section was formerly compiled as KRS 157.730 .

Opinions of Attorney General.

There is no legislative grant of authority for the BSSC to provide assistance to a private nonprofit corporation because it is a “business and industry,” as defined in KRS 154.12-204 (3); the BSSC may provide grants-in-aid to a private nonprofit corporation, if such corporation meets the definition of an educational institution; other assistance the BSSC might provide to a private nonprofit corporation would have to conform to KRS 154.12-206 (8), (10), or (11) and any contention that the BSSC may provide assistance, other than as set out in KRS 154.12-204 through 154.12-208 to a private nonprofit corporation, because such entity is a “business and industry” (KRS 154.12-204(3)), is negated by the specific mechanisms of assistance set forth in KRS 154.12-206 (8), (9), (10), (11), and 154.12-207 (1). OAG 91-95 .

154.12-206. Duties of corporation. [Effective June 29, 2021]

The corporation shall have all of the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including, but not limited to the following:

  1. To adopt bylaws for the regulation of its affairs and the conduct of its business and to prescribe rules, regulations, and policies in connection with the performance of its function and duties;
  2. To adopt an official seal;
  3. To sue and be sued in its own name;
  4. To make contracts and execute all instruments necessary or convenient for the conduct of its business;
  5. To make, execute, and effectuate all agreements with any federal or state agency or any person, corporation, association, partnership, or other organization or entity necessary to accomplish the purposes of this chapter;
  6. To procure sufficient insurance coverage against any losses in connection with its property;
  7. To accept any and all donations, grants, bequests, and devices, conditional or otherwise, of money, property, service, or other things of value which may be received from the United States, or any agency thereof, any governmental agency, an institution, person, firm, or corporation, public and private, to be held, used, or applied solely for the purposes specified in KRS 154.12-204 to 154.12-208 . Receipt of each donation or grant shall be detailed in the annual report of the corporation. Such reports shall include the identity of the donor and the nature of the transaction;
  8. To collect and disseminate to interested individuals, in cooperation with and through any agencies of federal, state, and municipal government, information concerning areas of present and projected employment need, programs of skills training and education consistent therewith, and any other relevant information;
  9. To provide grants-in-aid to educational institutions and approved companies to encourage and facilitate the formation of comprehensive cooperative relationships between the public and private sectors which secure for such institutions the information, technical assistance, and financial support necessary for the development and significant expansion of programs of skills training and education consistent with employment need;
  10. To prepare, publish, and distribute, with or without charge as the corporation may determine, such technical studies, reports, bulletins, and other materials as it deems appropriate; and
  11. To organize, conduct, or sponsor special institutes, conferences, demonstrations, and studies to effectuate the purposes of KRS 154.12-204 to 154.12-208 .

HISTORY: Enact. Acts 1984, ch. 211, § 3, effective July 13, 1984; repealed and reenact., Acts 1990, ch. 476, Pt. V, § 392, effective July 13, 1990; 1996, ch. 194, § 19, effective July 15, 1996; 2018 ch. 199, § 13, effective July 14, 2018; 2021 ch. 185, § 103, effective June 29, 2021.

154.12-207. Grant-in-aid — Skills training investment credit — Application — Approval — Maximum amount — Training. [Effective until June 29, 2021]

  1. The corporation may, subject to appropriation from the General Assembly or from funds made available to the corporation from any other public or private source, provide grants-in-aid to educational institutions, and qualified companies, not in excess of two hundred thousand dollars ($200,000) per grant-in-aid. Such grants-in-aid shall be used exclusively for programs which are consistent with the provisions of this chapter.
  2. The corporation may, in accordance withKRS 154.12-204 to 154.12-208 , award a skills training investment credit to an approved company. The amount of the skills training investment credit awarded by the corporation shall be an amount equal to fifty percent (50%) of the amount of approved costs incurred by the approved company in connection with its program of occupational upgrade training or skills upgrade training, the credit amount not to exceed five hundred dollars ($500) per employee and, in the aggregate, not to exceed one hundred thousand dollars ($100,000) for each approved company per biennium. The corporation shall only approve one (1) application per biennium for each approved company.
    1. To apply for a grant-in-aid or a skills training investment credit, a qualified company shall submit an application to the Bluegrass State Skills Corporation before commencing its program of skills upgrade or occupational upgrade training. Each application shall contain information the corporation requires, including but not limited to: (3) (a) To apply for a grant-in-aid or a skills training investment credit, a qualified company shall submit an application to the Bluegrass State Skills Corporation before commencing its program of skills upgrade or occupational upgrade training. Each application shall contain information the corporation requires, including but not limited to:
      1. A proposal for a program of skills upgrade training, occupational upgrade training, and education;
      2. A description of each component of the proposed training program and the number of employee training hours requested;
      3. A statement of the total anticipated costs and expenses of the program, including a breakdown of the costs associated with equipment, personnel, facilities, and materials; and
      4. With respect to educational institutions only, a statement of the technical assistance and financial support for the program received or pledged from a qualified company.
    2. To qualify for a grant-in-aid or a skills training investment credit in which an educational institution will provide training, an educational institution and a qualified company shall submit a joint application to the corporation. To qualify for a grant-in-aid or a skills training investment credit in which a provider other than an educational institution will provide training, the qualified company may independently submit a proposal to the corporation containing the same information as set forth in this subsection.
  3. Approval of the grant-in-aid and skills training investment credit application by the board shall be based upon the following criteria:
    1. The program must be within the scope of KRS 154.12-204 to 154.12-208 ;
    2. Participants in the program must qualify as an employee as defined by KRS 154.12–204;
    3. The program must involve an area of skills upgrade training, occupational upgrade training, and education which is needed by a qualified company and for which a shortage of qualified individuals exists within the Commonwealth;
    4. The grant-in-aid and skills training investment credit must be essential to the success of the program as the resources of the educational institution are inadequate to attract the technical assistance and financial support necessary from a qualified company;
    5. The educational institution must have obtained a firm commitment from a qualified company for the information, technical assistance, and financial support which, together with the grant-in-aid or skills investment credit, the resources of the applicant, and support from any other source, is sufficient to ensure the success of the program. In addition, the commitment of financial support from an approved company shall be equal to or greater than the amount of the requested grant-in-aid or skills training investment credit; and
    6. The educational institution must have established adequate auditing procedures and reporting methods for the submission of information and data as required by the corporation.
  4. After a review of applications for grant-in-aid and skills training investment credits, the corporation may designate the qualified company as an approved company and approve the maximum amount of grants and skills training investment credits the approved company is eligible to receive. The maximum amount of skills training investment credits approved for all qualified companies by the corporation for fiscal year 1998-1999 and fiscal year 1999-2000 shall not exceed one million dollars ($1,000,000) and shall not exceed two million five hundred thousand dollars ($2,500,000) for each fiscal year thereafter. Skills training investment credits that remain unallocated by the corporation at the end of its fiscal year shall lapse and shall not be carried forward to a new fiscal year.
  5. The approved company shall complete all programs of skills upgrade training or occupational upgrade training within one (1) year from the date of approval by the corporation and shall certify the completion of these programs to the corporation. Once they are completed and certified and all required documentation is provided and received by the corporation, the corporation shall disburse the grant funds or notify the approved company of the final authorized skills training investment credit.

HISTORY: Enact. Acts 1984, ch. 211, § 4, effective July 13, 1984; repealed and reenact., Acts 1990, ch. 476, Pt. V, § 393, effective July 13, 1990; 1996, ch. 194, § 20, effective July 15, 1996; 2000, ch. 300, § 6, effective July 14, 2000; 2000, ch. 466, § 1, effective April 21, 2000; 2002, ch. 65, § 2, effective July 15, 2002; 2006, ch. 211, § 65, effective July 12, 2006; 2009, ch. 11, § 33, effective June 25, 2009; 2018 ch. 199, § 14, effective July 14, 2018.

Compiler’s Notes.

This section was formerly compiled as KRS 157.740 .

Opinions of Attorney General.

There is no legislative grant of authority for the BSSC to provide assistance to a private nonprofit corporation because it is a “business and industry,” as defined in KRS 154.12-204 (3); the BSSC may provide grants-in-aid to a private nonprofit corporation, if such corporation meets the definition of an educational institution; other assistance the BSSC might provide to a private nonprofit corporation would have to conform to KRS 154.12-206 (8), (10), or (11) and any contention that the BSSC may provide assistance, other than as set out in KRS 154.12-204 through 154.12-208 to a private nonprofit corporation, because such entity is a “business and industry” (KRS 154.12-204(3)), is negated by the specific mechanisms of assistance set forth in KRS 154.12-206 (8), (9), (10), (11), and 154.12-207 (1). OAG 91-95 .

154.12-207. Grant-in-aid — Skills training investment credit — Application — Approval — Maximum amount — Training. [Effective June 29, 2021]

  1. The corporation may, subject to appropriation from the General Assembly or from funds made available to the corporation from any other public or private source, provide grants-in-aid to qualified companies, not in excess of two hundred thousand dollars ($200,000) per grant-in-aid. Such grants-in-aid shall be used exclusively for programs which are consistent with the provisions of this chapter.
  2. The corporation may, in accordance with KRS 154.12-204 to 154.12-208 , award a skills training investment credit to an approved company. The amount of the skills training investment credit awarded by the corporation shall be an amount not to exceed fifty percent (50%) of the amount of approved costs incurred by the approved company in connection with its program of occupational upgrade training or skills upgrade training, the credit amount not to exceed two thousand dollars ($2,000) per trainee and, in the aggregate, not to exceed two hundred thousand dollars ($200,000) for each approved company per fiscal year. The corporation shall only approve one (1) application per fiscal year for each approved company.
  3. To apply for a grant-in-aid or a skills training investment credit, a qualified company shall submit an application to the Bluegrass State Skills Corporation before commencing its program of skills upgrade or occupational upgrade training. Each application shall contain information the corporation requires, including but not limited to:
    1. A proposal for a program of skills upgrade training, occupational upgrade training, and education;
    2. A description of each component of the proposed training program and the number of employee training hours requested;
    3. A statement of the total anticipated costs and expenses of the program, including a breakdown of the costs associated with equipment, personnel, facilities, and materials.
  4. Approval of the grant-in-aid and skills training investment credit application by the board shall be based upon the following criteria:
    1. The program must be within the scope of KRS 154.12-204 to 154.12-208 ;
    2. Participants in the program must qualify as an employee as defined by KRS 154.12-204 ;
    3. The program must involve an area of skills upgrade training, occupational upgrade training, and education which is needed by a qualified company and for which a shortage of qualified individuals exists within the Commonwealth; and
    4. The grant-in-aid and skills training investment credit must be essential to the success of the program as the resources are inadequate to attract the technical assistance and financial support necessary from a qualified company.
  5. After a review of applications for grant-in-aid and skills training investment credits, the corporation may designate the qualified company as an approved company and approve the maximum amount of grants and skills training investment credits the approved company is eligible to receive. The maximum amount of skills training investment credits approved for all qualified companies by the corporation shall not exceed two million five hundred thousand dollars ($2,500,000) for each fiscal year. Skills training investment credits that remain unallocated by the corporation at the end of its fiscal year shall lapse and shall not be carried forward to a new fiscal year.
  6. The approved company shall complete all programs of skills upgrade training or occupational upgrade training within one (1) year from the date of approval by the corporation and shall certify the completion of these programs to the corporation. Once they are completed and certified and all required documentation is provided and received by the corporation, the corporation shall disburse the grant funds or notify the approved company of the final authorized skills training investment credit.

HISTORY: Enact. Acts 1984, ch. 211, § 4, effective July 13, 1984; repealed and reenact., Acts 1990, ch. 476, Pt. V, § 393, effective July 13, 1990; 1996, ch. 194, § 20, effective July 15, 1996; 2000, ch. 300, § 6, effective July 14, 2000; 2000, ch. 466, § 1, effective April 21, 2000; 2002, ch. 65, § 2, effective July 15, 2002; 2006, ch. 211, § 65, effective July 12, 2006; 2009, ch. 11, § 33, effective June 25, 2009; 2018 ch. 199, § 14, effective July 14, 2018; 2021 ch. 185, § 104, effective June 29, 2021.

154.12-208. Annual report.

By November 1 of each year, the corporation shall prepare an annual report of its activities and make it available on the Cabinet for Economic Development Web page as required in KRS 154.12-2035 . The annual report shall include, but not be limited to, descriptions of all programs funded, an evaluation of the performance of each program, a summary of expenditures, and a detailed description of the participants.

HISTORY: Enact. Acts 1984, ch. 211, § 5, effective July 13, 1984; 1988, ch. 437, Pt. XI, § 1, effective April 15, 1988; repealed and reenact., Acts 1990, ch. 476, Pt. V, § 394, effective July 13, 1990; 1996, ch. 194, § 21, effective July 15, 1996; 2014, ch. 134, § 5, effective July 15, 2014; 2018 ch. 199, § 15, effective July 14, 2018.

Compiler’s Notes.

This section was formerly compiled as KRS 157.750 .

Research References and Practice Aids

Kentucky Bench & Bar.

Tobergte, The Impact of Kentucky’s Present Constitution Upon Business Growth & Development, Volume 51, No. 3, Summer 1987 Ky. Bench & B. 21.

154.12-2084. Definitions for KRS 154.12-2084 to 154.12-2089.

As used in KRS 154.12-2084 to 154.12-2089 , unless the context requires otherwise:

  1. “Approved company” means any qualified company seeking to sponsor an occupational upgrade training program or skills upgrade training program for the benefit of one (1) or more of its employees, which is approved by the authority to receive skills training investment credits in accordance with KRS 154.12-2084 to 154.12-2089 ;
  2. “Approved costs” means:
    1. Fees or salaries required to be paid to instructors who are employees of the approved company, instructors who are full-time, part-time, or adjunct instructors with an educational institution, and instructors who are consultants on contract with an approved company in connection with an occupational upgrade training program or skills upgrade training program sponsored by an approved company;
    2. Administrative fees charged by educational institutions in connection with an occupational upgrade training program or skills upgrade training program sponsored by an approved company and specifically approved by the Bluegrass State Skills Corporation;
    3. The cost of supplies, materials, and equipment used exclusively in an occupational upgrade training program or skills upgrade training program sponsored by an approved company;
    4. The cost of leasing a training facility where space is unavailable at an educational institution or at the premises of an approved company in connection with an occupational upgrade training program or skills upgrade training program sponsored by an approved company;
    5. Employee wages to be paid in connection with an occupational upgrade training program or skills upgrade training program sponsored by an approved company; and
    6. All other costs of a nature comparable to those described in this subsection;
  3. “Bluegrass State Skills Corporation” means the Bluegrass State Skills Corporation created by KRS 154.12-205 ;
  4. “Commonwealth” means the Commonwealth of Kentucky;
  5. “Educational institution” means a public or nonpublic secondary or postsecondary institution or an independent provider within the Commonwealth authorized by law to provide a program of skills training or education beyond the secondary school level or to adult persons without a high school diploma or its equivalent;
  6. “Employee” means any person:
    1. Who is currently a permanent full-time employee of the qualified company;
    2. Who has been employed by the qualified company for the last twelve (12) calendar months immediately preceding the filing of the application for skills training investment credits by the qualified company;
    3. Who is a Kentucky resident, as that term is defined in KRS 141.010 ; and
    4. Who receives a base hourly wage which is one hundred fifty percent (150%) of the federal minimum wage plus employee benefits equal to at least fifteen percent (15%) of the applicable base hourly wage, if the qualified company is located in a county of Kentucky which has had an average countywide rate of unemployment of fifteen percent (15%) or greater in the most recent twelve (12) consecutive months for which unemployment figures are available, on the basis of the final unemployment figures calculated by the Department of Workforce Investment in the Education and Workforce Development Cabinet. For purposes of this subsection, a “full-time employee” means an employee who has been employed by the qualified company for a minimum of thirty-five (35) hours per week for more than two hundred fifty (250) work days during the most recently ended calendar year and is subject to the tax imposed by KRS 141.020 ;
  7. “Occupational upgrade training” means employee training sponsored by a qualified company that is designed to qualify the employee for a promotional opportunity with the qualified company;
  8. “Preliminarily approved company” means a qualified company seeking to sponsor an occupational upgrade training program or skills upgrade training program, which has received preliminarily approval from the authority under KRS 154.12-2088 to receive a certain maximum amount of skills training investment credits;
  9. “Qualified company” means any person, corporation, limited liability company, partnership, limited partnership, sole proprietorship, firm, enterprise, franchise, association, organization, holding company, joint stock company, professional service corporation, or any other legal entity through which business is conducted that has been actively engaged in any of the following qualified activities within the Commonwealth for not less than three (3) consecutive years: manufacturing, including the processing, assembling, production, or warehousing of any property; processing of agricultural and forestry products; telecommunications; health care; product research and engineering; tool and die and machine technology; mining; tourism and operation of facilities to be used in the entertainment, recreation, and convention industry; and transportation in support of manufacturing. Notwithstanding the provisions of this subsection, any company whose primary purpose is the sale of goods at retail shall not constitute a qualified company;
  10. “Skills upgrade training” means employee training sponsored by a qualified company that is designed to provide the employee with new skills necessary to enhance productivity, improve performance, or retain employment, including but not limited to technical and interpersonal skills training, and training that is designed to enhance the computer skills, communication skills, problem solving, reading, writing, or math skills of employees who are unable to function effectively on the job due to deficiencies in these areas, are unable to advance on the job, or who risk displacement because their skill deficiencies inhibit their training potential for new technology; and
  11. “Skills training investment credit” means the credit against Kentucky income tax imposed by KRS 141.020 or 141.040 , and the limited liability entity tax imposed by KRS 141.040 1, as provided in KRS 154.12-2086 (1).

History. Enact. Acts 1998, ch. 499, § 1, effective July 15, 1998; 2000, ch. 466, § 2, effective April 21, 2000; 2000, ch. 526, § 14, effective July 14, 2000; 2002, ch. 65, § 3, effective July 15, 2002; 2006, ch. 149, § 210, effective July 12, 2006; 2006, ch. 211, § 66, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 40, effective June 28, 2006; 2009, ch. 11, § 34, effective June 25, 2009; 2019 ch. 146, § 16, effective June 27, 2019.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.12-2086. Skills training investment credit — Department of Revenue certification.

  1. The Bluegrass State Skills Corporation may, in accordance with KRS 154.12-2084 to 154.12-2089 , award a credit against the Kentucky tax imposed by KRS 141.020 or 141.040 , and KRS 141.040 1, to an approved company. The amount of the skills training investment credit awarded by the Bluegrass State Skills Corporation shall be an amount equal to fifty percent (50%) of the amount of approved costs incurred by the approved company in connection with its program of occupational upgrade training or skills upgrade training, the credit amount not to exceed five hundred dollars ($500) per employee and, in the aggregate, not to exceed one hundred thousand dollars ($100,000) for each approved company per biennium. The Bluegrass State Skills Corporation shall only approve one (1) application per biennium for each qualified company.
  2. The skills training investment credit shall be credited on the tax return of the approved company filed for the fiscal year during which the final authorizing resolution is adopted by the Bluegrass State Skills Corporation in accordance with KRS 154.12-2088 (6). The skill training investment credits allowed under KRS 154.12-2084 to 154.12-2089 shall only be used by the approved company that has been awarded the credits in accordance with KRS 154.12-2084 to 154.12-2089 . The skills training investment credits provided for in this section shall be applied to both the income tax imposed by KRS 141.020 or 141.040 , and the limited liability entity tax imposed by KRS 141.040 1, with the ordering of the credits as provided in KRS 141.0205 . These credits shall be in addition to all other tax credits granted under the laws of the Commonwealth.
  3. The skills training investment credits may be carried forward for three (3) successive fiscal years of the approved company if the amount allowable as credits exceeds the income tax liability of the approved company in the tax year during which the final authorizing resolution is adopted by the Bluegrass State Skills Corporation; however, thereafter, if the amount allowable as credits exceeds the income tax liability of the approved company, the excess credits shall not be refundable or carried forward to any other fiscal year of the approved company for which a tax return of the approved company is to be filed.
  4. A qualified company shall not be entitled to receive the skills training investment credits if the qualified company requires that the employee reimburse the employer or otherwise pay for any costs or expenses incurred in connection with the occupational upgrade training or skills upgrade training.
  5. To the extent that any expenditures of a qualified company constitute approved costs and are the basis for the skills training investment credits under KRS 154.12-2084 to 154.12-2089 , these expenditures shall not be eligible as the basis for grants-in-aid under Bluegrass State Skills Corporation provisions in KRS 154.12-204 to 154.12-208 or the Local Government Economic Development Program under the provisions of KRS 42.4588 to 42.4595 .
  6. Priority consideration for preliminary approval under KRS 154.12-2088 shall be given to qualified companies that the Bluegrass State Skills Corporation determines to be high performance companies. A minimum of thirty percent (30%) of the total skills training investment credits authorized by the Bluegrass State Skills Corporation during any fiscal year shall be awarded to qualified companies that have been designated as high performance companies by the Bluegrass State Skills Corporation. The Bluegrass State Skills Corporation shall establish guidelines and standards for the designation of high performance companies.
  7. By October 1 of each year, the Department of Revenue shall certify to the Bluegrass State Skills Corporation the amount of any skills training investment credits taken pursuant to KRS 154.12-2084 to 154.12-2089 on tax returns filed during the fiscal year ending June 30 of that year.

History. Enact. Acts 1998, ch. 499, § 2, effective July 15, 1998; 2000, ch. 300, § 7, effective July 14, 2000; 2005, ch. 85, § 569, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 41, effective June 28, 2006.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.12-2087. Skills training investment credits — Applications not accepted after July 14, 2018 — Projects approved and outstanding as of July 14, 2018, continue to be governed by KRS 154.12-2084 to 154.12-2089.

The Bluegrass State Skills Corporation shall not accept applications for skills training investment credits described in KRS 154.12-2084 to 154.12-2089 after July 14, 2018. All outstanding projects with preliminary or final approval under KRS 154.12-2084 to 154.12-2089 as of July 14, 2018, shall continue to be governed by those provisions.

HISTORY: 2018 ch. 199, § 9, effective July 14, 2018.

154.12-2088. Guidelines — Application — Preliminary approval — Final authorizing resolution.

  1. The Bluegrass State Skills Corporation shall establish guidelines and standards for approving skills training investment credits for occupational upgrade training and skills upgrade training. The guidelines and standards may include, but are not limited to: required hours of classroom instruction; required courses; certification of teachers or instructors, whether independent contractors or employees of a qualified company; certification of providers; progressive levels of instruction; and standardized measures of employee evaluation to determine successful completion of a course of study.
  2. To apply for skills training investment credits under KRS 154.12-2084 to 154.12-2089 , a qualified company shall submit an application to the Bluegrass State Skills Corporation before commencing its program of occupational upgrade training or skills upgrade training. The application submitted by the qualified company shall contain information the Bluegrass State Skills Corporation requires including, but not limited to:
    1. A proposal for a program of occupational upgrade training or skills upgrade training;
    2. A description of each component of the proposed training program and the number of employee training hours requested;
    3. A statement of all anticipated costs and expenses of the training program, including the costs and expenses associated with employee wages, equipment, personnel, facilities, and materials; and
    4. Auditing procedures and reporting methods for the submission of information and data to the Bluegrass State Skills Corporation.
  3. After a review of applications for skills training investment credits, the Bluegrass State Skills Corporation may designate the qualified company as a preliminarily approved company and preliminarily approve the amount of skills training investment credits that the qualified company shall be eligible to receive. The maximum amount of skills training investment credits preliminarily approved for all qualified companies by the Bluegrass State Skills Corporation for fiscal year 1998-1999 and fiscal year 1999-2000 shall not exceed one million dollars ($1,000,000) and shall not exceed two million five hundred thousand dollars ($2,500,000) for each fiscal year thereafter. Skills training investment credits shall be allocated to qualified companies in the same order preliminary approval is granted by the Bluegrass State Skills Corporation. Skills training investment credits that remain unallocated by the Bluegrass State Skills Corporation at the end of its fiscal year shall lapse and shall not be carried forward to a new fiscal year.
  4. The preliminarily approved company shall complete all programs of occupational upgrade training or skills upgrade training within one (1) year from the date of the preliminary approval of the skills training investment credits by the Bluegrass State Skills Corporation and shall certify the completion of these programs to the Bluegrass State Skills Corporation.
  5. The preliminarily approved company shall maintain in its employment the employees receiving occupational upgrade or skills upgrade training for a minimum of ninety (90) days following the completion of the program of occupational upgrade training or skills upgrade training and shall certify to the Bluegrass State Skills Corporation the number of employees who remained in the employment of the preliminarily approved company for the full ninety (90) day period.
  6. If a qualified company concludes its training program within the prescribed one (1) year and receives the required certifications described in subsections (4) and (5) of this section, then the Bluegrass State Skills Corporation shall adopt a final authorizing resolution approving the amount of skills training investment credits awarded to the preliminarily approved company in accordance with KRS 154.12-2084 to 154.12-2089 . The adoption of a final authorizing resolution shall be contingent upon the Bluegrass State Skills Corporation’s approval of documentation submitted by the preliminarily approved company supporting all incurred approved costs. If one (1) or more of the employees of the preliminarily approved company failed to continue in the employment of the company for ninety (90) days following the completion of the prescribed one (1) year, then the amount of the skills training investment credits preliminarily approved for a qualified company shall be reduced on a pro rata basis for each employee who failed to continue employment with the preliminarily approved company through the ninety (90) day period. The final amount of the skills training investment credits awarded to the approved company shall not exceed the amount of skills training investment credits that the approved company was preliminarily approved for by the Bluegrass State Skills Corporation prior to commencement of the training program.

History. Enact. Acts 1998, ch. 499, § 3, effective July 15, 1998; 2000, ch. 300, § 8, effective July 14, 2000.

154.12-2089. Short title for KRS 154.12-2084 to 154.12-2089.

KRS 154.12-2084 to 154.12-2089 may be cited as the “Skills Training Investment Credit Act.”

History. Enact. Acts 1998, ch. 499, § 4, effective July 15, 1998.

154.12-209. Department for Existing Business and Industry — Divisions — Business Information Clearinghouse. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. IX, § 3, 1962, ch. 106, Art. VI, § 2; 1970, ch. 111, § 1; 1976, ch. 299, § 28; 1976, ch. 312, § 1; 1978, ch. 94, § 1, effective March 28, 1978; 1978, ch. 155, §§ 41, 76, effective June 17, 1978; 1978, ch. 384, § 566, effective June 17, 1978; 1980, ch. 295, § 25, effective July 15, 1980; 1982, ch. 212, § 6, effective July 15, 1982; 1982, ch. 396, § 25, effective July 15, 1982; 1984, ch. 296, § 1, effective July 13, 1984; 1984, ch. 404, § 13, effective July 13, 1984; 1986, ch. 94, § 1, effective July 15, 1986; 1988, ch. 205, § 5, effective July 15, 1988; 1990, ch. 484, § 3, effective July 13, 1990 as KRS 152.020 ; repealed, reenact. and amend. Acts 1992, ch. 105, § 31, effective July 14, 1992 as KRS 154.12-209 ) was repealed by Acts 1994, ch. 499, § 28, effective July 15, 1994. For present law see KRS 154.12-210 .

154.12-210. Cabinet’s duties in assembling and disseminating information about economic development.

  1. The cabinet shall assemble and keep in the offices of the cabinet information relating to natural resources, industrial sites, labor supply, water, fuel, power, wage rates, taxation and assessments, transportation and communication facilities, and any other information that may be useful in executing the provisions of KRS 154.12-210 to 154.12-212 . This information shall be made available to any enterprise which, in the discretion of the secretary, is legitimate and which contemplates location or operation within the Commonwealth. The information shall, in the discretion of the secretary, be made available to any governmental or private agency interested in securing the location or operation of any legitimate enterprise within the Commonwealth.
  2. The cabinet shall obtain from enterprises interested in locating and operating within the Commonwealth information relating to the nature of the enterprise, its financial responsibility, manpower requirements, probable consumption of raw materials, and any other information that may be useful in securing the location of such enterprise in the Commonwealth.
  3. The cabinet shall be the primary industrial and commercial development agency of the Commonwealth of Kentucky in matters relating to the private sector of the state’s economy. The cabinet shall carry out programs relating to industrial and commercial development, research and planning, community and industrial services, marketing development, small and minority business enterprise, international trade and reverse investment, and other programs designated by the board.

History. Repealed, reenact. and amend. Acts 1992, ch. 105, § 33, effective July 14, 1992; 1994, ch. 499, § 13, effective July 15, 1994.

Compiler’s Notes.

This section was formerly compiled as KRS 152.060 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 33, effective July 14, 1992.

154.12-211. Cabinet to prepare and publish maps, surveys, directories, and studies.

The cabinet shall prepare and publish, or cause to be prepared and published, maps, economic and industrial resources surveys of the state and of individual communities and areas, directories of manufacturers, exporters, and industrial services, surveys as related to natural resources and industrial and commercial needs, studies of agri-business opportunities, surveys of forestry industries potential, studies of industrial site characteristics, and other matters relating to the economic development of the Commonwealth as it shall deem necessary and advisable.

History. Repealed, reenact. and amend. Acts 1992, ch. 105, § 34, effective July 14, 1992.

Compiler’s Notes.

This section was formerly compiled as KRS 152.070 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 34, effective July 14, 1992.

Legislative Research Commission Note.

Under KRS 7.136(2), a reference to the Department for Existing Business and Industry in this statute has been changed to the cabinet (i.e., the Cabinet for Ecomomic Development). This department was eliminated by the repeal of KRS 154.12-209 by 1994 Ky. Acts ch. 499, sec. 28, and the duties and functions of the department were reassigned to the cabinet, see 1994 Ky. Acts ch. 499, secs. 13, 14, and 15.

154.12-212. Energy resource information.

The cabinet shall be responsible for energy resource information. The secretary of the Cabinet for Economic Development may enter into a contractual agreement between the cabinet and the Kentucky Geological Survey and any other organizations deemed necessary in order to perform this function.

History. Repealed, reenact. and amend. Acts 1992, ch. 105, § 35, effective July 14, 1992; 1994, ch. 499, § 14, effective July 15, 1994.

Compiler’s Notes.

This section, originally compiled as KRS 152A.120 , was repealed, reenacted, and amended as KRS 224.0334 and was renumbered as KRS 152.075 by the Reviser of Statutes under authority of KRS 7.136 and 7.140 and approved by the Legislative Research Commission on July 10, 1991, and was again repealed, reenacted, and renumbered as this section by Acts 1992, ch. 105, § 35, effective July 14, 1992.

Legislative Research Commission Note.

(11/21/96). In renumbering this statute in 1991, the prior reference to the Commerce Cabinet was changed to the Cabinet for Economic Development (see 1988 Ky. Acts Ch. 205, § 9). This change was made pursuant to KRS 7.136 .

154.12-213. Consultation with governmental agencies, studies and projections, development offices, and promotional advertising by cabinet.

The cabinet, as it deems necessary and advisable, may:

  1. Consult with agencies of the state, federal, and local government in order to coordinate development programs and plans and to articulate agriculture, industry, and commerce in the light of the needs of particular localities;
  2. Make studies of land utilization so as to determine areas suitable for industrial and commercial development;
  3. Make studies and projections and publish information relating to the economic development of the Commonwealth and make appropriate recommendations to the board and the General Assembly;
  4. Establish and maintain development offices in out-of-state centers of industrial and commercial management;
  5. Place advertising in appropriate media promoting Kentucky’s resources and locational advantages for industrial and commercial enterprises.

History. Repealed, reenact. and amend. Acts 1992, ch. 105, § 69, effective July 14, 1992; 1994, ch. 499, § 15, effective July 15, 1994.

Compiler’s Notes.

This section was formerly compiled as KRS 152.080 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 69, effective July 14, 1992.

154.12-214. Definitions for KRS 154.12-215 to 154.12-220. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 212, § 1, effective July 15, 1982; 1984, ch. 296, § 2, effective July 13, 1984; 1986, ch. 89, § 1, effective July 15, 1986; 1994, ch. 499, § 16, effective July 15, 1994; 1996, ch. 194, § 22, effective July 15, 1996; 2005, ch. 181, § 2, effective June 20, 2005; 2006, ch. 149, § 211, effective July 12, 2006) was repealed by Acts 2014, ch. 89, § 12, effective July 15, 2014.

154.12-215. Duties of Department for Existing Business Development. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 212, § 2, effective July 15, 1982; 1984, ch. 296, § 3, effective July 13, 1984; 1994, ch. 499, § 17, effective July 15, 1994; 1996, ch. 209, § 1, effective July 15, 1996; 2005, ch. 181, § 3, effective June 20, 2005) was repealed by Acts 2014, ch. 89, § 12, effective July 15, 2014.

154.12-216. Business Information Clearinghouse Program — Duties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1984, ch. 296, § 5, effective July 13, 1984; 1986, ch. 89, § 2, effective July 15, 1986; 1994, ch. 390, § 13, effective July 15, 1994; 1994, ch. 499, § 18, effective July 15, 1994; 1996, ch. 194, § 67, effective July 15, 1996; 2005, ch. 158, § 3, effective June 20, 2005; 2005, ch. 181, § 4, effective June 20, 2005) was repealed by Acts 2014, ch. 89, § 12, effective July 15, 2014.

154.12-217. Licensing coordinators. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1984, ch. 296, § 7, effective July 13, 1984; 1986, ch. 89, § 3, effective July 15, 1986) was repealed by Acts 2014, ch. 89, § 12, effective July 15, 2014.

154.12-218. Small Business Advisory Council. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 212, § 4, effective July 15, 1982; 1994, ch. 499, § 19, effective July 15, 1994; 2005, ch. 181, § 5, effective June 20, 2005) was repealed by Acts 2014, ch. 89, § 12, effective July 15, 2014.

154.12-219. General business license. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 152.957 .

This section (Enact. Acts 1984, ch. 296, § 9, effective July 13, 1984; 1986, ch. 89, § 4, effective July 15, 1986; 1990, ch. 244, § 1, effective July 13, 1990; 1996, ch. 194, § 23, effective July 15, 1996) was repealed by Acts 2003, ch. 124, § 45, effective July 1, 2004.

154.12-220. Administrative regulations — Licensing authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 212, § 5, effective July 15, 1982; 1984, ch. 296, § 4, effective July 13, 1984) was repealed by Acts 2014, ch. 89, § 12, effective July 15, 2014.

154.12-221. Master application and licensure program for new grocery store operations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1984, ch. 296, § 6, effective July 13, 1984) was repealed by Acts 1996, ch. 194, § 73, effective July 15, 1996.

This section was formerly compiled as KRS 152.959 .

154.12-222. Office of Administration and Support. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 499, § 1, effective July 15, 1994; 2000, ch. 29, § 1, effective July 14, 2000; 2005, ch. 181, § 8, effective June 20, 2005) was repealed by Acts 2014, ch. 89, § 12, effective July 15, 2014.

154.12-223. Department for Business Development.

  1. There is created within the Cabinet for Economic Development the Department for Business Development, which shall be headed by a commissioner appointed by the Governor. The department shall work with each Kentucky county in:
    1. Providing customer service and project management with new and existing industries;
    2. Overseeing programs and initiatives designed to support new investment, job creation, and retention across the state;
    3. Providing sufficient technical resources to create and maintain a database to facilitate sales transactions between Kentucky businesses; and
    4. Administering activities related to business site selection.
  2. The following programs shall be attached to the Department for Business Development:
    1. The Kentucky port and river development program created by KRS 65.510 to 65.530 , KRS 139.483 , and KRS 154.80-100 to 154.80-130 ; and
    2. The Waterway Marina Development Program established by KRS 154.80-310 .

HISTORY: Enact. Acts 1994, ch. 499, § 2, effective July 15, 1994; 1996, ch. 113, § 4, effective July 15, 1996; 1996, ch. 209, § 2, effective July 15, 1996; 1996, ch. 262, § 1, effective July 15, 1996; 1998, ch. 133, § 1, effective July 15, 1998; 2005, ch. 158, § 4, effective June 20, 2005; 2005, ch. 181, § 6, effective June 20, 2005; 2014, ch. 89, § 4, effective July 15, 2014; 2018 ch. 37, § 3, effective July 14, 2018.

Legislative Research Commission Note.

(6/20/2005). This section was amended by 2005 Ky. Acts chs. 158 and 181, which do not appear to be in conflict and have been codified together.

(6/20/2005). The Reviser of Statutes has renumbered subparagraphs of subsection (2)(a) of this statute under the authority of KRS 7.136(1)(a).

Research References and Practice Aids

Kentucky Law Journal.

Havard, Synergy and Friction — The CRA, BHCs, the SBA, and Community Development Lending, 86 Ky. L.J. 617 (1997-98).

154.12-224. Department for Financial Services.

  1. There is created in the Cabinet for Economic Development the Department for Financial Services. The department shall be headed by a commissioner appointed by the secretary pursuant to KRS 154.10-050 . The department shall coordinate administration and monitoring of all financial assistance, tax credit, and related programs available for business and industry and shall provide all budgeting, accounting, personnel services, and information technology necessary for proper administration of the cabinet and cabinet programs.
  2. The department shall include the following divisions, each of which shall be headed by a director appointed by the secretary pursuant to KRS 12.050 :
    1. The Finance and Personnel Division, which shall provide financial, personnel, facility, and contract administration services;
    2. The Compliance Division, which shall monitor incentives and collect and maintain data on incentives after they are awarded;
    3. The Incentive Administration Division, which shall coordinate necessary documentation and assist the Department for Business Development in preparing recommendations and finalizing documents for presentation to the authority or other body for consideration and approval; and
    4. The IT and Resource Management Division, which shall coordinate facility services and internal information technology needs.
  3. The department shall include the Kentucky Economic Development Finance Authority.
  4. The department shall include the Bluegrass State Skills Corporation established by KRS 154.12-205 .

HISTORY: Enact. Acts 1994, ch. 499, § 3, effective July 15, 1994; 1996, ch. 263, § 1, effective July 15, 1996; 1998, ch. 414, § 17, effective July 15, 1998; 2002, ch. 230, § 14, effective July 15, 2002; 2005, ch. 168, § 47, effective March 18, 2005; 2014, ch. 89, § 5, effective July 15, 2014; 2018 ch. 37, § 4, effective July 14, 2018.

Legislative Research Commission Notes.

(3/18/2005). 2005 Ky. Acts ch. 168, § 165, provides that this section shall apply to tax years beginning on or after January 1, 2005.

(7/15/2002). Although this section is included in 2002 Ky. Acts ch. 230, the proposed change was deleted by Senate committee substitute.

154.12-225. Department for New Business Development — Duties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 499, § 4, effective July 15, 1994; 2000, ch. 31, § 2, effective July 14, 2000; 2005, ch. 181, § 9, effective June 20, 2005; 2006, ch. 210, § 5, effective July 12, 2006) was repealed by Acts 2014, ch. 89, § 12, effective July 15, 2014.

154.12-230. Any cabinet program to support flexible networks to include workforce training.

Any Cabinet for Economic Development program or initiative to support flexible networks shall include workforce training as an eligible flexible networks activity.

History. Enact. Acts 1994, ch. 487, § 4, effective July 15, 1994.

154.12-2333. Kentucky Investment Capital Network. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 209, § 3, effective July 15, 1996; 2005, ch. 181, § 7, effective June 20, 2005) was repealed by Acts 2014, ch. 89, § 12, effective July 15, 2014.

154.12-240. Regulatory Expediting Center.

  1. The Regulatory Expediting Center is established within the cabinet to assist industries and businesses proposing to locate or expand existing operations in Kentucky with applications for permits, licenses, certificates, registration, and any other form of authorization or permit required by a state, federal, or local agency to engage in a particular business activity or act.
  2. The center shall train and deploy persons with knowledge and skills essential to expediting a request for assistance by a prospective or expanding business or industry with applications for permits, licenses, certificates, registration, and any other form of authorization required by a state, federal, or local governmental agency to engage in a particular business activity or act.
  3. Assistance given by the center regarding federal and local regulations and requirements necessary to engage in the proposed business activity or act shall be limited to providing the business or industrial entity with copies of application forms and other written information provided by the appropriate federal and local agencies.
  4. Priority shall be given to business or industrial development or expansion proposals by businesses or industrial entities participating in an approved business network.

History. Enact. Acts 1994, ch. 390, § 12, effective July 15, 1994; 2014, ch. 89, § 7, effective July 15, 2014.

154.12-250. Kentucky Coal Council — Office of Coal Marketing and Export. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts1994, ch. 277, § 1, effective July 15, 1994; 1996, ch. 113, § 7, effective July 15, 1996; 1998, ch. 466, § 2, effective July 15, 1998; 2000, ch. 2, § 4, effective July 14, 2000; 2005, ch. 95, § 33, effective June 20, 2005) was repealed by Acts 2006, ch. 152, § 16, effective July 12, 2006.

154.12-252. Membership of council — Reimbursement of expenses — Meetings — Quorum. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts1994, ch. 277, § 2, effective July 15, 1994; 1996, ch. 113, § 8, effective July 15, 1996; 1996, ch. 194, § 24, effective July 15, 1996; 2000, ch. 2, § 5, effective July 14, 2000) was repealed by Acts 2006, ch. 152, § 16, effective July 12, 2006.

154.12-255. Duties of council. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts1994, ch. 277, § 3, effective July 15, 1994; 2000, ch. 2, § 6, effective July 14, 2000) was repealed by Acts 2006, ch. 152, § 16, effective July 12, 2006.

154.12-260. Department for Coal County Development — Purpose — Appointment of commissioner. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 93, § 1, effective July 15, 1998; 2001, ch. 34, § 1, effective June 21, 2001) was repealed by Acts 2002, ch. 338, § 49, effective July 15, 2002.

154.12-265. Department for Regional Development — Purpose — Appointment of commissioner. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2003, ch. 54, § 1, effective June 24, 2003) was repealed by Acts 2006, ch. 210, § 14, effective July 12, 2006.

154.12-270. Cabinet to undertake strategic technology capacity initiative and study — Study results. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2000, ch. 522, § 18, effective July 14, 2000) was repealed by Acts 2002, ch. 230, § 41, effective July 15, 2002.

154.12-274. Legislative intent — Requirement that cabinet support modernization, increase, and improvement in the Commonwealth’s production process — Cabinet to contract with Kentucky Manufacturing Assistance Center.

  1. As used in this section, “cluster” shall have the same meaning as in KRS 164.6011 .
  2. It is the intention of the General Assembly to recognize that a strong manufacturing base for the economy of the Commonwealth requires not only modernization of the production process but also an increase in the number of products developed, so that through the creation of new product lines, additional value-added products, and new manufacturing methods the economy will grow and quality job opportunities will increase. The Cabinet for Economic Development shall support this intention through its authority in KRS 154.12-050 .
  3. The Cabinet for Economic Development shall enter into contracts or agreements with the Kentucky Manufacturing Assistance Center, a nonprofit organization with the mission to assist Kentucky small and medium-size manufacturers to become more competitive in the global marketplace. The contracts or agreements shall require the Kentucky Manufacturing Assistance Center to undertake the following activities:
    1. Negotiate contractual agreements with existing manufacturers to deliver modernization services that are likely to lead to the creation of new product lines, additional value-added products, and new manufacturing methods;
    2. Deliver engineering, technical, and business improvement services in Kentucky manufacturing facilities, through the network of Kentucky Technology Service locations in the state, that lead to the development of new product lines, additional value-added products, and new manufacturing methods;
    3. Coordinate services for and support the activities of Kentucky manufacturers that need additional projects, activities, and expertise beyond those available through the Kentucky Manufacturing Assistance Center;
    4. Promote, along with other economic development entities, the development of supplier chains, the linkages among suppliers, and the growth of clusters within the Commonwealth; and
    5. Provide to the Cabinet for Economic Development a report of the advances made in the manufacturing modernization projects initiated.

HISTORY: Enact. Acts 2000, ch. 522, § 19, effective July 14, 2000; 2002, ch. 230, § 15, effective July 15, 2002; 2017 ch. 80, § 6, effective June 29, 2017.

154.12-275. Office of Marketing and Public Affairs — Executive director — Duties of office — Communications Division — Graphics Design Division.

  1. There is created in the Cabinet for Economic Development the Office of Marketing and Public Affairs. The office shall be headed by an executive director appointed by the secretary pursuant to KRS 154.10-050 . The office shall administer activities related to communications and marketing services.
  2. The office shall include the following divisions, each of which shall be headed by a director appointed by the secretary pursuant to KRS 12.050 :
    1. The Communications Division; and
    2. The Graphics Design Division.

HISTORY: 2018 ch. 37, § 5, effective July 14, 2018.

154.12-276. Office of Workforce, Community Development, and Research — Executive director — Duties of office.

There is created in the Cabinet for Economic Development the Office of Workforce, Community Development, and Research. The office shall be headed by an executive director appointed by the secretary pursuant to KRS 154.10-050 . The office shall administer programs to ensure that communities and workers in the Commonwealth are equipped with resources, superior training, and skills needed to compete in the global economy and partner with appropriate organizations to ensure that companies and individuals receive the resources they need to be successful. The office shall also administer research activities related to strategic planning, business site selection, existing business development, program analysis, competitive analysis, and community development.

HISTORY: 2018 ch. 37, § 6, effective July 14, 2018.

154.12-277. Office of Entrepreneurship — Executive director — Duties of office — Inclusion of Commission on Small Business Advocacy. [Effective until June 29, 2021]

  1. There is created in the Cabinet for Economic Development the Office of Entrepreneurship. The office shall be headed by an executive director appointed by the secretary pursuant to KRS 154.10-050 . The office shall be responsible for various forms of small business assistance, including but not limited to providing customer service and project management with small and minority businesses, assisting export development, administering the innovation assistance set forth in KRS 154.12-278 , introducing entrepreneurs to individual investors and to investment capital firms interested in start-up and early-stage financing, and collecting, summarizing, and disseminating information helpful to small businesses, including information on market research, federal, state, and local minority business programs, government procurement opportunities, and the availability of managerial assistance.
  2. The office shall include the Commission on Small Business Advocacy established in KRS 11.200 .

HISTORY: 2018 ch. 37, § 7, effective July 14, 2018.

154.12-277. Office of Entrepreneurship — Executive director — Duties of office — Inclusion of Commission on Small Business Advocacy. [Effective June 29, 2021]

  1. There is created in the Cabinet for Economic Development the Office of Entrepreneurship and Small Business Innovation. The office shall be headed by an executive director appointed by the secretary pursuant to KRS 154.10-050 . The office shall be responsible for various forms of entrepreneurship and small business assistance, including but not limited to providing customer service and project management with small and minority businesses, assisting export development, administering the innovation assistance set forth in KRS 154.12-278 , introducing entrepreneurs to individual investors and to investment capital firms interested in start-up and early-stage financing, and collecting, summarizing, and disseminating information helpful to small businesses, including information on market research, federal, state, and local minority business programs, government procurement opportunities, and the availability of managerial assistance.
  2. The office shall include the Commission on Small Business Innovation and Advocacy established in KRS 11.200 .

HISTORY: 2018 ch. 37, § 7, effective July 14, 2018; 2021 ch. 185, § 105, effective June 29, 2021.

154.12-278. Office of Entrepreneurship — Duties of office and executive director — High-tech construction pool and high-tech investment pool — Duties of Kentucky Economic Development Finance Authority. [Effective until June 29, 2021]

  1. As used in this section, “cluster” and “knowledge-based” shall have the same meaning as in KRS 164.6011 .
  2. The Office of Entrepreneurship shall:
    1. Implement the Kentucky Innovation and Commercialization Center Program as set forth in KRS 154.12-300 to 154.12-310 ;
    2. Monitor the return on investments and effectiveness of the Kentucky Innovation Act initiatives as set forth in the Strategic Plan for the New Economy and prepare an annual report by November 1 of each year. The report shall be available on the Cabinet for Economic Development Web page as required by KRS 154.12-2035 ;
    3. Oversee the modernization initiative in KRS 154.12-274 ;
    4. Assist the cabinet in the recruitment of research and development companies;
    5. Assist the cabinet in the attraction of high-technology research and development centers;
    6. Support growth and creation of knowledge-based, innovative companies;
    7. Build the infrastructure for innovative businesses and promote networks of technology-driven clusters and research intensive industries;
    8. Administer the high-tech construction pool and the high-tech investment pool;
    9. Recommend projects to the Kentucky Economic Development Finance Authority for funding through the high-tech construction pool and high-tech investment pool; and
    10. Review and approve the annual plan which details the annual allocation of funds from the Science and Technology Funding Program, prior to the Council on Postsecondary Education executing a contract with the science and technology organization to administer science and technology funding programs. As used in this paragraph, the Science and Technology Funding Program means the Kentucky Enterprise Fund Program, the Rural Innovation Program, the Kentucky Commercialization Program, The Regional Technology Corporations/Innovation and Commercialization Center Satellites, and the Experimental Program to Stimulate Competitive Research/Kentucky Science and Engineering Foundation.
  3. The high-tech construction pool shall be used for projects with a special emphasis on the creation of high-technology jobs and knowledge-based companies. The executive director, in administering the high-tech construction pool, shall recommend distribution of funds and projects to the Kentucky Economic Development Finance Authority for its approval. The executive director shall recommend any designated amount of pool funds to be set aside for any match requirements. Any funds used for matching purposes may include public and private funds.
  4. The high-tech investment pool shall be used to build and promote technology-driven industries and research-intensive industries, as well as their related suppliers, with the goal of creating clusters of innovation-driven industries in Kentucky. The executive director, in administering the high-tech investment pool, shall be authorized to recommend funds to be used to support loans and grants, or to secure an equity or related position.
  5. The Kentucky Economic Development Finance Authority shall assure in their approval of funding of projects that the highest priority is given to knowledge-based companies in fulfillment of the purposes and intentions of the purposes of this section.

History. Enact. Acts 2000, ch. 522, § 20, effective July 14, 2000; 2002, ch. 230, § 16, effective July 15, 2002; 2005, ch. 181, § 10, effective June 20, 2005; 2006, ch. 210, § 6, effective July 12, 2006; 2008, ch. 98, § 1, effective July 15, 2008; 2014, ch. 89, § 6, effective July 15, 2014; ch. 134, § 6, effective July 15, 2014; 2017 ch. 80, § 7, effective June 29, 2017; 2018 ch. 199, § 16, effective July 14, 2018.

Legislative Research Commission Note.

(7/5/2014). This statute was amended by 2014 Ky. Acts chs. 89 and 134. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 134, which was last enacted by the General Assembly, prevails under KRS 446.250 .

Research References and Practice Aids

2020-2022 Budget Reference.

See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, B, 1, (1) at 866.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, B, 1, (2) at 867.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. II, B, (2) at 905.

154.12-278. Office of Entrepreneurship — Duties of office and executive director — High-tech construction pool and high-tech investment pool — Duties of Kentucky Economic Development Finance Authority. [Effective June 29, 2021]

  1. As used in this section, “cluster” and “knowledge-based” shall have the same meaning as in KRS 164.6011 .
  2. The Office of Entrepreneurship and Small Business Innovation shall:
    1. Implement the Kentucky Innovation and Commercialization Center Program as set forth in KRS 154.12-300 to 154.12-310 ;
    2. Monitor the return on investments and effectiveness of the Kentucky Innovation Act initiatives as set forth in the Strategic Plan for the New Economy and prepare an annual report by November 1 of each year. The report shall be available on the Cabinet for Economic Development Web page as required by KRS 154.12-2035 ;
    3. Oversee the modernization initiative in KRS 154.12-274 ;
    4. Assist the cabinet in the recruitment of research and development companies;
    5. Assist the cabinet in the attraction of high-technology research and development centers;
    6. Support growth and creation of knowledge-based, innovative companies;
    7. Build the infrastructure for innovative businesses and promote networks of technology-driven clusters and research intensive industries;
    8. Administer the high-tech construction pool and the high-tech investment pool;
    9. Recommend projects to the Kentucky Economic Development Finance Authority for funding through the high-tech construction pool and high-tech investment pool; and
    10. Review and approve the annual plan which details the annual allocation of funds from the Science and Technology Funding Program. As used in this paragraph, the Science and Technology Funding Program means the Kentucky enterprise fund, the Rural Innovation Program, the Kentucky Commercialization Program, The Regional Technology Corporations/Innovation and Commercialization Center Satellites, the Experimental Program to Stimulate Competitive Research/Kentucky Science and Engineering Foundation, Small Business Innovation Research and Small Business Technology Transfer grants, and other government grant programs and funding programs as determined by the executive director of the Office of Entrepreneurship and Small Business Innovation.
  3. The high-tech construction pool shall be used for projects with a special emphasis on the creation of high-technology jobs and knowledge-based companies. The executive director, in administering the high-tech construction pool, shall recommend distribution of funds and projects to the Kentucky Economic Development Finance Authority for its approval. The executive director shall recommend any designated amount of pool funds to be set aside for any match requirements. Any funds used for matching purposes may include public and private funds.
  4. The high-tech investment pool shall be used to build and promote technology-driven industries and research-intensive industries, as well as their related suppliers, with the goal of creating clusters of innovation-driven industries in Kentucky. The executive director, in administering the high-tech investment pool, shall be authorized to recommend funds to be used to support loans and grants, or to secure an equity or related position.
  5. The Kentucky Economic Development Finance Authority shall assure in their approval of funding of projects that the highest priority is given to knowledge-based companies in fulfillment of the purposes and intentions of the purposes of this section.

HISTORY: Enact. Acts 2000, ch. 522, § 20, effective July 14, 2000; 2002, ch. 230, § 16, effective July 15, 2002; 2005, ch. 181, § 10, effective June 20, 2005; 2006, ch. 210, § 6, effective July 12, 2006; 2008, ch. 98, § 1, effective July 15, 2008; 2014, ch. 89, § 6, effective July 15, 2014; ch. 134, § 6, effective July 15, 2014; 2017 ch. 80, § 7, effective June 29, 2017; 2018 ch. 199, § 16, effective July 14, 2018; 2021 ch. 185, § 106, effective June 29, 2021.

154.12-300. Definitions for KRS 154.12-300 to 154.12-310.

As used in KRS 154.12-300 to 154.12-310 , unless the context indicates otherwise:

  1. “Affiliate” means an ICC identified as the headquarters for program activity in a region or subregion;
  2. “Commissioner” means the commissioner of the Department of Commercialization and Innovation established in KRS 154.12-278 ;
  3. “ICC” means the Kentucky Innovation and Commercialization Center;
  4. “Region” means a geographic area of Kentucky designated as having a unique innovation strategic plan by the Department of Commercialization and Innovation; and
  5. “Satellite” means an office of an affiliate in a region.

History. Enact. Acts 2002, ch. 230, § 9, effective July 15, 2002; 2005, ch. 181, § 11, effective June 20, 2005; 2006, ch. 210, § 7, effective July 12, 2006; 2008, ch. 98, § 8, effective July 15, 2008.

154.12-305. Kentucky Innovation and Commercialization Center Program.

  1. There is established the Kentucky Innovation and Commercialization Center Program within the Department of Commercialization and Innovation. The goal of the ICC program is to create products, new companies, and value-added jobs in communities throughout the Commonwealth. Strategies to achieve this goal include:
    1. Increasing quality deal flow of technology-based firms in Kentucky;
    2. Increasing understanding of start-up process and investment practices; and
    3. Providing value-added services to the start-up and investment community.
  2. The duties of the ICC program shall include but not be limited to:
    1. Identifying and linking entrepreneurs, faculty, scientists, venture capitalists, and other key individuals from the business sector, universities, community and technical colleges, local leaders, and government for the creation and expansion of knowledge-based companies;
    2. Establishing a uniform protocol for assembling and communicating project concepts and opportunities;
    3. Supporting high-quality projects through the concept and development phases including services such as market research, prototype development, business plan and strategies development, grant and contract capabilities, and capital and management resource identification; and
    4. Identifying, in the area of technology development, potential partners, strategic opportunities, training and educational needs, and issues that inhibit the growth of technology sectors and business clusters in the state.

History. Enact. Acts 2002, ch. 230, § 10, effective July 15, 2002; 2005, ch. 181, § 12, effective June 20, 2005; 2006, ch. 210, § 8, effective July 12, 2006.

154.12-310. Kentucky Innovation and Commercialization Centers — Organization — Powers of commissioner. [Effective until June 29, 2021]

  1. The Kentucky Innovation and Commercialization Centers are private-public partnerships, operating as a cohesive statewide infrastructure to support the implementation of key Kentucky Innovation Act initiatives.
  2. The organization of the ICCs shall include a central statewide headquarters and up to twelve (12) affiliate centers.
    1. The central headquarters has primary responsibility for the following:
      1. Managing and administering the ICC Program;
      2. Establishing uniform program application, protocol, and operating guidelines when appropriate;
      3. Supporting the protocol by creating and funding centralized services to be distributed throughout the network; and
      4. Identifying those issues, opportunities, and challenges that have statewide implications.
    2. The regional affiliates are responsible for fulfilling the duties as set forth in KRS 154.12-305 relating to the implementation of the region’s innovation strategic plan and supporting the implementation of the Kentucky Innovation Act initiatives in the region or subregion;
    3. The satellites are responsible for generating technology business development in their assigned geographic area, acting as a bridge between individuals and businesses needing critical early state concept and development work and the affiliate centers that can provide this support. The affiliates and satellites provide a valuable assurance for equal access to the Kentucky Innovation Act initiatives and funding, and provide an opportunity for full participation in rural and remote, as well as metropolitan, areas of the state.
  3. The commissioner shall have all the powers and authority, not explicitly prohibited by statute, necessary and convenient to carry out and effectuate the purposes of KRS 154.12-300 to 154.12-310 .
  4. The commissioner may, in effectuating the provisions of KRS 154.12-300 to 154.12-310 , contract with a science and technology organization as defined in KRS 164.6011 to administer and manage the ICC Program.

History. Enact. Acts 2002, ch. 230, § 11, effective July 15, 2002; 2008, ch. 98, § 9, effective July 15, 2008; 2018 ch. 199, § 17, effective July 14, 2018.

154.12-310. Kentucky Innovation and Commercialization Centers — Organization — Powers of commissioner. [Effective June 29, 2021]

  1. The Kentucky Innovation and Commercialization Centers are private-public partnerships, operating as a cohesive statewide infrastructure to support the implementation of key Kentucky Innovation Act initiatives.
  2. The organization of the ICCs shall be a statewide network of Kentucky innovative hubs, with the location and services provided for each hub determined by the executive director of the Office of Entrepreneurship and Small Business Innovation.
    1. The Office of Entrepreneurship and Small Business Innovation shall be the central headquarters for the Kentucky innovative hubs and has primary responsibility for the following:
      1. Managing and administering the ICC Program;
      2. Establishing uniform program application, protocol, and operating guidelines when appropriate;
      3. Supporting the protocol by creating and funding centralized services to be distributed throughout the network; and
      4. Identifying those issues, opportunities, and challenges that have statewide implications.
    2. The regional affiliates are responsible for fulfilling the duties as set forth in KRS 154.12-305 relating to the implementation of the region’s innovation strategic plan and supporting the implementation of the Kentucky Innovation Act initiatives in the region or subregion;
    3. The satellites are responsible for generating technology business development in their assigned geographic area, acting as a bridge between individuals and businesses needing critical early state concept and development work and the affiliate centers that can provide this support. The affiliates and satellites provide a valuable assurance for equal access to the Kentucky Innovation Act initiatives and funding, and provide an opportunity for full participation in rural and remote, as well as metropolitan, areas of the state.
  3. The executive director of the Office of Entrepreneurship and Small Business Innovation shall have all the powers and authority, not explicitly prohibited by statute, necessary and convenient to carry out and effectuate the purposes of KRS 154.12-300 to 154.12-310 .
  4. The executive director of the Office of Entrepreneurship and Small Business Innovation may, in effectuating the provisions of KRS 154.12-300 to 154.12-310 , contract with a science and technology organization as defined in KRS 164.6011 to administer and manage the ICC Program.

HISTORY: Enact. Acts 2002, ch. 230, § 11, effective July 15, 2002; 2008, ch. 98, § 9, effective July 15, 2008; 2018 ch. 199, § 17, effective July 14, 2018; 2021 ch. 185, § 107, effective June 29, 2021.

154.12-315. Concept phase funding pool. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2002, ch. 230, § 12, effective July 15, 2002) was reepealed by Acts 2008, ch. 98, § 13, effective July 15, 2008.

154.12-320. Kentucky Science and Engineering Foundation.

The Kentucky Science and Technology Corporation shall administer and manage the Kentucky Science and Engineering Foundation as a means to increase Kentucky’s capacity to become a leader state in competitive research by attracting more research funding from all sources to the Commonwealth. The Kentucky Science and Engineering Foundation shall be modeled in part on the National Science Foundation and shall make its own investments in peer-reviewed science and engineering research, to accelerate the rate of research and development funds and work to increase the amount of federal and private sector funds for this work in Kentucky.

History. Enact. Acts 2002, ch. 230, § 13, effective July 15, 2002.

154.12-325. Definitions for KRS 154.12-325 and 154.12-330.

As used in KRS 154.12-325 and 154.12-330 :

  1. “Affiliate” has the same meaning as provided in KRS 154.22-010 (2);
  2. “Full-time employee” means a person employed for a minimum of thirty-five (35) hours per week and subject to the tax imposed by KRS 141.020 ;
  3. “Service or technology” has the same meaning as provided in KRS 154.24-010 (19) and shall include regional or headquarters operations of an entity engaged in the defined activities, but shall not include work involving direct service to the public pursuant to a license issued by the state or an association that issues licenses in lieu of the state; and
  4. “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 has fifty (50) or fewer full-time employees at the time it applies for a loan under KRS 154.12-330 and 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.

History. Enact. Acts 2005, ch. 158, § 1, effective June 20, 2005; 2006, ch. 149, § 212, effective July 12, 2006.

154.12-330. Authorization to develop and fund small business loan program — $100,000 limit — Requirements.

  1. The Kentucky Economic Development Finance Authority is hereby authorized to develop and fund a small business loan program to assist new or existing small businesses operating in the Commonwealth. The authority may lend up to one hundred thousand dollars ($100,000) to any eligible small business for acquisition, construction, expansion, working capital, or any other business expense the authority deems reasonable to approve.
  2. The authority shall determine the terms, conditions, and requirements for loans issued under this section, including collateral requirements when deemed reasonable and appropriate. Recognizing that small businesses, while essential for the economic vitality of the Commonwealth, may have difficulty obtaining conventional loans, the authority may provide terms that are more lenient, high-risk, less secure, or otherwise less stringent than industry standards.
  3. To be eligible for a loan under this section, a small business shall be engaged in manufacturing, agribusiness, or service or technology, shall not be engaged primarily in retail, and shall commit to creating and maintaining at least one (1) new full-time job above the number existing on the date of application.

History. Enact. Acts 2005, ch. 158, § 2, effective June 20, 2005.

SUBCHAPTER 15. Kentucky Communications Network Authority

154-15.010. Definitions for subchapter.

As used in this subchapter:

  1. “Authority” means the Kentucky Communications Network Authority;
  2. “Board” means the Board of the Kentucky Communications Network Authority;
  3. “Executive director” means the executive director of the Kentucky Communications Network Authority;
  4. “Network” or “KentuckyWired” means the Commonwealth’s open-access broadband network; and
  5. “Partnership” means the public-private partnership entered into between the Commonwealth and a private entity or entities for the purpose of creating, running, and maintaining the network.

HISTORY: 2017 ch. 89, § 3, effective June 29, 2017.

154-15.020. Kentucky Communications Network Authority — Duties — Personnel — Powers.

  1. The Kentucky Communications Network Authority is established and shall be attached to the Office of the Governor. The authority shall be headed by an executive director who shall be hired by the board and approved by the Governor.
  2. Notwithstanding KRS 42.726 , the duties of the authority shall be to:
    1. Oversee and maintain KentuckyWired, the Commonwealth’s open-access broadband network;
    2. Manage the master agreement establishing the public-private partnership between the Commonwealth and its private industry partner or partners. The purpose of the agreement is to design, engineer, build, operate, maintain, and upgrade the network;
    3. Provide network connectivity to public agencies;
    4. Offer access to entities eligible to utilize excess capacity on the network;
    5. Manage other aspects of the network and its utilization through the executive director and with oversight and input from the board established in KRS 154.15-030 and the advisory group established in this section;
    6. Promulgate administrative regulations pursuant to KRS Chapter 13A necessary to implement the purposes of this subchapter;
    7. Enter into contracts with public and private entities to carry out its duties and responsibilities. A contract or other agreement involving the acquisition or disposition of a property interest by the Commonwealth shall be signed by the secretary of the Finance and Administration Cabinet. KRS Chapters 45A and 56 may require the secretary’s signature on other contracts or agreements;
    8. Provide program management services ensuring the financial viability of the master agreement and related contracts and agreements, including grant administration, contract compliance and oversight, community planning support, and constituent services;
    9. Seek out, secure, and manage funding sources for the network; and
    10. Create an advisory group, including major stakeholders, to provide input and feedback on issues important to the user community and to the long-term sustainability of the project and the network. The advisory group shall be administratively attached to and managed by the authority. The advisory group shall include but not be limited to representatives of:
      1. The Department of Education;
      2. The Council on Postsecondary Education;
      3. The Cabinet for Economic Development;
      4. The Cabinet for Health and Family Services;
      5. The Transportation Cabinet;
      6. The Justice and Public Safety Cabinet;
      7. The Finance and Administration Cabinet;
      8. The Administrative Office of the Courts;
      9. The Legislative Research Commission;
      10. Institutions of higher education;
      11. Local government entities;
      12. Libraries;
      13. Public health care institutions or agencies;
      14. Kentucky Educational Television; and
      15. Others whose input will benefit the network.
  3. With the approval of the board, the executive director may hire additional officers and other personnel necessary for the proper functioning of the authority, fix their salaries, and prescribe their duties. The executive director and persons employed by the authority shall not be subject to the provisions of KRS Chapter 18A.
    1. With the approval of the board, the executive director may make, execute, and effectuate contracts, leveraging future revenues from provision of government-to-government services and sale or lease of excess capacity, to incur debt in the name of the authority and enter into financing agreements with the Commonwealth, agencies of the Commonwealth, lending institutions, investors, or investing entities. (4) (a) With the approval of the board, the executive director may make, execute, and effectuate contracts, leveraging future revenues from provision of government-to-government services and sale or lease of excess capacity, to incur debt in the name of the authority and enter into financing agreements with the Commonwealth, agencies of the Commonwealth, lending institutions, investors, or investing entities.
    2. The total amount of debt or financing under this subsection shall not exceed one hundred ten million dollars ($110,000,000), and shall not leverage any future revenues committed to the repayment of any other debt, or expected to be used for the repayment of any other debt, as of the time the debt or financing is entered into.
    3. Any proposed debt or financing under this subsection shall be submitted to the Capital Projects and Bond Oversight Committee for review at least fourteen (14) days prior to the committee meeting.
    4. If any debt or financing is incurred under this subsection, the authority shall provide to the Legislative Research Commission:
      1. Within thirty (30) days of entering into a debt or financing agreement, a copy of the agreement; and
      2. On January 1, April 1, July 1, and October 1 of each year that the debt or financing is outstanding:
        1. The amount of principal and interest remaining on the debt or financing;
        2. The use to which the capital gained from the debt or financing has been put; and
        3. Any amendments, if any, to the original debt or financing instruments or agreements.

HISTORY: 2017 ch. 89, § 4, effective June 29, 2017; 2018 ch. 201, § 1, effective April 26, 2018.

154-15.030. Board of the Kentucky Communications Network Authority — Membership — Duties — Meetings — Committees.

  1. The Board of the Kentucky Communications Network Authority is established. The board shall be attached administratively to the Office of the Governor.
  2. The board shall consist of:
    1. The secretary of the Governor’s Executive Cabinet or designee, who shall serve as chair of the board;
    2. The state budget director or designee;
    3. The secretary of the Transportation Cabinet or designee;
    4. The secretary of the Cabinet for Economic Development or designee;
    5. The secretary of the Justice and Public Safety Cabinet or designee;
    6. The commissioner of the Department for Local Government or designee; and
    7. A representative designated by the Center for Rural Development.
  3. The duties of the board shall be to:
    1. Develop and implement a strategic plan for and provide policy direction to the authority;
    2. Review performance reports from the partners named in the master agreement regarding deployment, operations, and administration of the network and its compliance with service level agreements with the Commonwealth;
    3. Monitor the results achieved through the partnership’s strategy to develop new revenue streams and expand network usage through marketing and awareness programs;
    4. Approve fiscal planning for the authority including budget development, state appropriations management, cost-recovery schedules, grant administration, and billing services;
    5. Establish rates for services offered through the network and establish methods for customer account management; and
    6. Direct upgrades to technology as necessary.
  4. The board shall meet at least semiannually and at other times upon the call of the chair.
  5. The board may form committees or other subgroups as necessary to accomplish its duties and functions.

HISTORY: 2017 ch. 89, § 5, effective June 29, 2017.

SUBCHAPTERS 20 TO 29. Financing of Development

SUBCHAPTER 20. Financing of Development Generally

Kentucky Economic Development Finance Authority

154.20-010. Kentucky Economic Development Finance Authority — Members — Officers.

  1. There is created and established within the cabinet, subject to the authority of the board, the Kentucky Economic Development Finance Authority as an agency, instrumentality, and political subdivision of the Commonwealth and a public body corporate and politic with all powers, duties, and responsibilities delegated to it by the board or as otherwise provided by law, including all programs, powers, duties, rights, and obligations of the Kentucky Development Finance Authority and the Kentucky Rural Economic Development Authority.
  2. Any interest, right, or cause of action held in whole or in part by any person, corporation, limited liability company, partnership, limited partnership, government agency, or other entity under any agreement, contract, lease, mortgage, guarantee, bond, note, refund bond, or other financial transaction or obligation, made, issued, or otherwise entered into by any of the authorities, programs, or funds specified in subsection (1) of this section or that may be delegated to the authority by the board, shall not be impaired or otherwise diminished.
  3. Any interest, right, or cause of action held in whole or in part by any of the authorities, programs, or funds specified in subsection (1) of this section shall not be impaired or otherwise diminished, but shall be assumed by the authority, for and on behalf of the cabinet.
  4. The authority shall consist of a committee of seven (7) persons, including six (6) persons appointed by the board who shall be private citizens of the Commonwealth, and the secretary of the Finance and Administration Cabinet who shall serve ex officio. Any person appointed to the committee shall have experience and expertise in business or finance.
  5. Two (2) members initially appointed to the committee shall have a term of one (1) year each, two (2) members initially appointed to the committee shall have a term of two (2) years each, and two (2) members initially appointed to the committee shall have a term of three (3) years each, except that any person appointed to fill a vacancy shall serve only for the remainder of the unexpired term. All subsequent appointments shall be for a term of three (3) years.
  6. Any person appointed to the committee shall be eligible for reappointment, including any member of the committee appointed prior to July 15, 1994.
  7. The members of the committee shall elect biennially from the committee’s private citizen membership the following officers: chairman, vice chairman, secretary-treasurer, and any assistant secretaries and assistant treasurers the committee deems necessary.
  8. A majority of the members of the committee, determined by excluding any existing vacancies from the total number of members, shall constitute a quorum. A majority vote of the members present at a duly called meeting of the committee shall be required for the purposes of conducting its business and exercising its powers and for all other purposes.
  9. The committee shall prepare bylaws and procedures applicable to the operations of the authority and submit them to the board to be promulgated as administrative regulations in accordance with KRS Chapter 13A.
  10. Members of the committee shall be entitled to compensation for their services in an amount of one hundred dollars ($100) for each regular meeting of the committee and shall be entitled to reimbursement for all necessary expenses in connection with the performance of their duties.

History. Enact. Acts 1992, ch. 105, § 17, effective July 14, 1992; 1994, ch. 450, § 1, effective July 15, 1994; 1996, ch. 194, § 25, effective July 15, 1996; 2002, ch. 338, § 18, effective July 15, 2002; 2006, ch. 149, § 213, effective July 12, 2006.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. I, C, 1, (1) at 500; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 1306 (Final Budget Memorandum, Vol. III, at C-8).

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-020. Authority to commit cabinet to projects — Exceptions.

  1. The secretary shall be authorized to commit the cabinet to any project or proposal, subject to approval of the committee as necessary except that any state incentive agreement requiring the participation of other agencies of state government shall require the concurrence of the board.
  2. No project shall be funded in whole or part by the authority unless first approved by its committee pursuant to administrative regulations promulgated by the board in accordance with KRS Chapter 13A.
  3. Lending decisions made by the authority shall be based, if possible, feasible, and not otherwise precluded by federal or state law, on utilizing state funds to leverage private sector investment.

History. Enact. Acts 1992, ch. 105, § 18, effective July 14, 1992; 1998, ch. 426, § 109, effective July 15, 1998; 2000, ch. 330, § 2, effective July 14, 2000; 2005, ch. 99, § 123, effective June 20, 2005; 2020 ch. 36, § 6, effective July 15, 2020.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-029. Short title for KRS 154.20-030 to 154.20-150.

KRS 154.20-030 to 154.20-150 shall be known as the Kentucky Development Finance Act.

History. Enact. Acts 1958, ch. 152, § 1; 1978, ch. 96, § 1, effective July 1, 1978.

Compiler’s Notes.

This section was formerly compiled as KRS 154.001 .

NOTES TO DECISIONS

1.Constitutionality.

The relief of unemployment is a public purpose that would justify the outlay of public funds and the law establishing the Industrial Development Finance Authority will serve a public purpose in the sense that the state as a whole will receive a benefit therefrom and it is constitutional. Industrial Development Authority v. Eastern Kentucky Regional Planning Com., 332 S.W.2d 274, 1960 Ky. LEXIS 142 ( Ky. 1960 ).

Cited:

Grimm v. Moloney, 358 S.W.2d 496, 1962 Ky. LEXIS 180 ( Ky. 1962 ).

Research References and Practice Aids

Cross-References.

Acquisition of real estate by state agency, KRS 56.470 .

Area planning, KRS 147.610 .

Banks and trust companies, KRS ch. 287.

City may exempt factories from taxation for five years, Const., § 170.

Commonwealth not to lend credit, nor become stockholder in corporation nor build railroad or highway, Const., § 177.

Finance and Administration Cabinet, KRS ch. 42.

Finance and Administration Cabinet, general powers and duties in relation to real estate owned by the state or to acquire real estate, KRS 56.463 .

Housing projects, KRS ch. 80.

Manpower services, KRS ch. 195.

Planning and zoning, KRS ch. 100.

Public works in cities other than the first class, KRS ch. 94.

Slum clearance, redevelopment and urban renewal, KRS ch. 99.

State Property and Building Commission; revenue bonds, power to issue, sell, KRS 56.520 .

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

Northern Kentucky Law Review.

Notes, Insurance — Medical Malpractice — Uncoupling the Freight Train: The Kentucky Medical Malpractice Act — McGuffey v. Hall, 557 S.W.2d 401, 1977 Ky. LEXIS 533 ( Ky. 1977 ), 5 N. Ky. L. Rev. 123 (1978).

154.20-030. Purpose of authority.

It shall be the purpose of the Kentucky Economic Development Finance Authority to develop and expand existing and alternative sources of energy and the conservation of energy, to assist business enterprise in obtaining additional sources of financing to aid this state in achieving the goal of long-term economic growth and full employment, to meet the growing competition for business enterprises, to preserve existing jobs, to create new jobs, to reduce the cost of business and production, to reduce the costs and liabilities by encouraging and financing efforts to reduce and avoid the generation of hazardous waste and toxic by-products, to foster export activity, to foster economic development on surface mining land, and to alleviate and prevent unemployment through the retention, promotion, and development of agriculture and agricultural facilities, agribusiness, forestry and forestry facilities, commerce and commercial facilities, health care and health related facilities, export markets and export activities, industry and industrial buildings and facilities, riverport facilities, tourism and tourist facilities, including the sites therefor, and agricultural, forestry, commercial, and industrial machinery and equipment, water and air pollution control equipment, and solid waste disposal facilities with respect thereto or for use by individuals for private sector employment. Such purposes shall be public purposes for which public money may be spent.

History. Enact. Acts 1958, ch. 152, § 2; 1978, ch. 96, § 2, effective July 1, 1978; 1980, ch. 340, § 1, effective July 15, 1980; 1988, ch. 383, § 1, effective July 15, 1988; 1992, ch. 105, § 19, effective July 14, 1992; 1992, ch. 107, § 12, effective July 1, 1992; 1994, ch. 390, § 2, effective July 15, 1994; 2000, ch. 371, § 1, effective July 14, 2000.

Compiler’s Notes.

This section was formerly compiled as KRS 154.005.

Legislative Research Commission Note.

(7/14/92). This section was amended by 1992 Acts ch. 105 and ch. 107 which are in conflict. Acts ch. 105 prevails pursuant to sec. 79 of that act.

NOTES TO DECISIONS

1.Purpose.

The purpose of the law establishing the Industrial Development Finance Authority is clearly set out in this section. Industrial Development Authority v. Eastern Kentucky Regional Planning Com., 332 S.W.2d 274, 1960 Ky. LEXIS 142 ( Ky. 1960 ).

Opinions of Attorney General.

Inasmuch as the purpose of this act is to promote the development of industrial and manufacturing enterprises in local communities, the Industrial Development Finance Authority would not be authorized to loan funds for the revitalization of a privately owned hotel. OAG 77-614 .

Where the Development Finance Authority acquires 50 percent ownership in certain real property for a one-year period, an exemption from ad valorem property taxation, limited to the extent of the authority’s ownership and for the duration of its ownership, is available under Const., § 170 since this section specifically states that the purposes of the authority are public purposes. OAG 81-270 .

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

Kentucky Bench & Bar.

Tobergte, The Impact of Kentucky’s Present Constitution Upon Business Growth & Development, Volume 51, No. 3, Summer 1987 Ky. Bench & B. 21.

154.20-033. Powers of authority — Limitation of liability — Payment of administrative and operational expenses.

  1. The authority shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of Subchapters 20 to 28, 30 to 34, and 60 of this chapter, including but not limited to:
    1. Employing fiscal consultants, attorneys, appraisers, and other agents on behalf of the authority whom the authority deems necessary or convenient for the preparation and administration of agreements and documents necessary or incident to any project. The fees for the services provided by persons employed on behalf of the authority shall be paid by the beneficiary of a loan, grant, assessment, incentive, inducement, or tax credit under this chapter directly to the person providing consultation, advisory, legal or other services; and
    2. Imposing and collecting fees and charges in connection with any transaction and providing for reasonable penalties for delinquent payment of fees and charges.
  2. A director or officer of the authority shall not be subject to any personal liability or accountability by reason of the execution of any obligation duly authorized by the authority.
  3. The authority may accept and expend moneys which may be appropriated from time to time by the General Assembly, or moneys which may be received from any source, including income from the authority’s operations for effectuating its purpose, including without limitation the payment of the expenses of administration and operation.

History. Enact. Acts 1996, ch. 194, § 26, effective July 15, 1996; 2008, ch. 178, § 25, effective July 15, 2008; 2009 (1st Ex. Sess.), ch. 1, § 29, effective June 26, 2009; 2018 ch. 199, § 19, effective July 14, 2018.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-035. Purposes for borrowing money or issuing bonds or notes — Sale of bonds or notes — Terms — Tax exemption.

  1. The authority may, upon approval of the board, borrow money and issue bonds or notes in accordance with KRS 154.10-035 and other provisions of this chapter appertaining, subject to KRS 42.420 , for the following purposes:
    1. To provide sufficient funds for achieving the authority’s purposes and objectives, including but not limited to, amounts necessary to pay the costs of acquiring projects or any part thereof; to make loans for the maintenance, operation, expansion, or development of riverport facilities that are under the authority of a developmental riverport authority established under KRS 65.520 ; to make loans for the cost of a project or any part thereof; to make loans pursuant to KRS 154.10-030 (11) for an export-related transaction; to make grants; to provide money to guarantee or insure loans, leases, bonds, notes, or other indebtedness; to make working capital loans; for all other expenditures of the authority incident to and necessary or convenient to carry out the authority’s purposes, objectives, and powers; or for any combination of the foregoing;
    2. To refund bonds or notes of the authority issued under this chapter, by the issuance of new bonds, whether or not the bonds or notes to be refunded have matured or are subject to prior redemption or are to be paid, redeemed, or surrendered at the time of issuance of the refunding bonds or notes; and to issue bonds or notes partly to refund such bonds or notes and partly for any other purpose provided for by this section; or
    3. To pay the costs of issuance of bonds or notes under this chapter; to pay interest on bonds or notes becoming payable prior to the receipt of the first revenues available for payment thereof as determined by the board; and to establish, in full or in part, a reserve for the payment of the principal and interest on the bonds or notes in such amount as shall be determined by the board.
  2. The bonds and notes, including, but not limited to, commercial paper, shall be authorized by resolution adopted by the authority, shall bear the date or dates, and shall mature at the time or times, not exceeding fifty (50) years from the date of issuance, as the resolution provides. The bonds and notes shall bear interest at the rate or rates set, reset, or calculated from time to time as provided in the resolution. The bonds and notes shall be in the denominations; be in the form, either coupon or registered; carry the registration privileges; be transferable; be executed in the manner; be payable in the medium of payment, at the place or places; and be subject to the terms of prior redemption at the option of the authority or the holders thereof as the resolution or resolutions provide. The bonds and notes of the authority may be sold at public or private, negotiated sale, at the price or prices the authority determines. Bonds and notes may be sold at a discount.
  3. Bonds or notes may be:
    1. Made the subject of a put or agreement to repurchase by the authority or others;
    2. Secured by a letter of credit or by any other collateral which the resolution may authorize;
    3. Resold by the authority, once acquired by the authority, pursuant to any put or repurchase agreement without the acquisition being considered the extinguishment of the bond or note.
  4. The authority may authorize its chairman or other officer to, by order:
    1. Sell and deliver, and receive payment for notes or bonds;
    2. Refund notes or bonds by the delivery of new notes or bonds, whether or not the notes or bonds to be refunded have matured, are subject to prior redemption, or are to be paid, redeemed, or surrendered at the time of the issuance of refunding bonds or notes;
    3. Deliver notes or bonds, partly to refund notes or bonds and partly for any other authorized purposes;
    4. Buy notes or bonds so issued at not more than the face value of the notes or bonds; or
    5. Approve interest rates or methods for fixing interest rates, prices, discounts, maturities, principal amounts, denominations, dates of issuance, interest payment dates, redemption rights at the option of the authority or the holder, the place of delivery and payment, and other matters and procedures necessary to complete the transactions authorized.
  5. Except as provided by the authority, every issue of its notes or bonds shall be general obligations of the authority payable out of revenues, properties, or money of the authority, subject only to agreements with the holders of particular notes or bonds pledging particular receipts, revenues, properties, or money as security therefor.
  6. The notes or bonds of the authority shall be and are hereby made negotiable instruments within the meaning of and for all purposes of the Uniform Commercial Code, subject only to the provisions of the notes or bonds for registration.
  7. A resolution authorizing notes or bonds may contain any or all of the following covenants which shall be a part of the contract with the holders thereof:
    1. A pledge of all or a part of the fees, charges, and revenues made or received by the authority, or all or a part of the money received in payment of lease rentals, or loans and interest thereon, and other money received or to be received to secure the payment of the notes or bonds or an issue thereof, subject to agreements with bondholders or noteholders as may then exist;
    2. A pledge of all or a part of the assets of the authority, including leases, or notes or mortgages and obligations securing the same to secure the payment of the notes or bonds or of an issue of notes or bonds, subject to agreements with noteholders or bondholders as may then exist;
    3. A pledge of a loan, grant, or contribution from the federal, state, or municipality, or source in aid of a project as provided for in this chapter;
    4. A provision as to the use and disposition of the revenues and income from leases, or from loans, notes, and mortgages owned by the authority;
    5. A provision as to the establishment and setting aside of reserves or sinking funds and the regulation and disposition thereof subject to this chapter;
    6. Limitations on the purpose to which the proceeds of sale of the notes or bonds may be applied and limitations on pledging those proceeds to secure the payment of other bonds or notes;
    7. Authority for and limitations on the issuance of additional notes or bonds for the purposes provided for in the resolution and the terms upon which additional notes or bonds may be issued and secured;
    8. A provision for the procedure, if any, by which the terms of a contract with noteholders or bondholders may be amended or abrogated, the number of noteholders or bondholders who are required to consent thereto, and the manner in which the consent may be given;
    9. Vesting in a trustee, or a secured party, such property, income, revenues, receipts, rights, remedies, powers, and duties in trust or otherwise as the authority may determine necessary to appropriate to adequately secure and protect noteholders and bondholders or to limit or abrogate the rights of the noteholders and bondholders. A trust agreement may be executed by the authority with any trustee who may be located inside or outside this state to accomplish any of the foregoing;
    10. Providing for the payment of maintenance and repair costs of a project;
    11. Establishing the insurance to be carried on a project and the use and disposition of insurance money and condemnation awards;
    12. Establishing the terms, conditions, and agreements upon which the holder of the bonds, or a portion thereof, shall be entitled to the appointment of a receiver by the Circuit Court. A receiver may enter and take possession of the project and maintain it or lease or sell it for cash or on an installment sales contract and prescribe rentals and payments therefor and collect, receive, and apply all income and revenues thereafter arising in the same manner and to the same extent as the authority; and
    13. Providing for any other matters, of like or different character, which in any way affect the security or protection of the notes or bonds.
  8. A pledge made by the authority shall be valid and binding from the time the pledge is made. The money or property pledged and received by the authority shall immediately be subject to the lien of the pledge without a physical delivery or further act. The lien of the pledge shall be valid and binding as against parties having claims of any kind in tort, contract, or otherwise against the authority and shall be valid and binding against the transfer of the money or property pledged, irrespective of whether the parties have notice. It shall not be necessary to record the resolution, the trust agreement, or any other instrument by which a pledge is created.
  9. Neither the members of the authority nor any person executing the notes or bonds shall be liable personally on the notes or bonds or be subject to personal liability or accountability by reason of the issuance thereof.
  10. The state shall not be liable for any financial obligations of the authority nor shall any such obligations or bonds be considered a debt of the state. The obligations shall contain on the face thereof a statement indicating this fact.
  11. The notes and bonds of the authority shall be securities in which the public officers and bodies of this state and municipalities and municipal subdivisions, insurance companies, associations, and other persons carrying on an insurance business, banks, trust companies, savings banks and savings associations, savings and loan associations, investment companies, and administrators, guardians, executors, trustees, and other fiduciaries, and all other persons who are authorized to invest in bonds or other obligations of the state, may properly and legally invest funds.
  12. The property of the authority and its income and operation shall be exempt from all taxation by this state or any of its political subdivisions. All bonds and notes of the authority, the interest thereon, and their transfer shall be exempt from all taxation by this state or any of its political subdivisions, except for estate, gift, and inheritance taxes, notwithstanding that interest on bonds or notes of the authority may be or become subject to federal income taxation as a result of legislative action by the federal government. The state covenants with the purchasers and all subsequent holders and transferees of notes and bonds issued by the authority under this chapter, in consideration of the acceptance of and payment for the notes and bonds, that the notes and bonds of the authority, issued pursuant to this chapter, the interest thereon, the transfer thereof, and all its fees, charges, gifts, grants, revenues, receipts, and other money received or to be received and pledged to pay or secure the payment of the notes or bonds shall at all times be free and exempt from all state or local taxation provided by the laws of this state, except for estate, gift, and inheritance taxes.

History. Enact. Acts 1988, ch. 383, § 7, effective July 15, 1988; 1992, ch. 105, § 20, effective July 14, 1992; 2000, ch. 371, § 2, effective July 14, 2000.

Compiler's Notes.

This section was formerly compiled as KRS 154.043.

Research References and Practice Aids

2020-2022 Budget Reference.

See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. II, B, (2) at 905.

154.20-040. Loan insurance account — Deposits — Money transferred.

  1. Loan insurance shall be funded by an account, which shall be established and managed by the authority, to be known as the loan insurance account.
  2. The authority shall pay into the account any money appropriated or otherwise provided by this state for that purpose; any money which the authority receives as fees or premiums for its provision of loan, lease, or debenture insurance; loan, lease, or debenture guarantees; or letters of credit; and any other money made available to the authority for the purpose of loan insurance from any other source, public or private.
  3. Money in the loan insurance account may be transferred into any other account established by the authority, unless the authority is otherwise obligated to retain the money in the loan insurance account or if the money was appropriated by this state solely for that purpose.

History. Enact. Acts 1988, ch. 383, § 8, effective July 15, 1988.

Compiler’s Notes.

This section was formerly compiled as KRS 154.045.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-045. Insurance or guarantee by authority.

  1. The authority may insure, guarantee, or issue letters of credit for all or a part of a loan or debenture of others, public or private.
  2. The authority may insure, guarantee, or issue letters of credit for all or a part of a lease entered into by others, public or private.
  3. The authority may procure insurance, a guarantee, or a letter of credit from any source for all or a part of a loan, debenture, or lease of others, public or private. The authority may procure insurance, a guarantee, or a letter of credit for either a single loan, debenture, or lease or for any combination of loans, debentures, or leases.
  4. The authority may insure, guarantee, or issue letters of credit for all or a part of a revenue bond issued by the authority, another state agency or authority, or another entity or authority authorized by law to issue revenue bonds.
  5. The authority may procure insurance, a guarantee, or a letter of credit for all or a part of a revenue bond issue of the authority, another state agency or authority, or another entity or authority authorized by law to issue revenue bonds. The authority may procure insurance, a guarantee, or a letter of credit for either all or part of a single revenue bond issue or for all or a part of any combination of revenue bond issues.

History. Enact. Acts 1988, ch. 383, § 9, effective July 15, 1988.

Compiler’s Notes.

This section was formerly compiled as KRS 154.047.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-050. Contract of insurance by authority — Authority not an insurer.

To provide loan insurance pursuant to KRS 154.20-040 and 154.20-045 , the authority may enter into a contract of insurance. The Kentucky Insurance Code shall not apply to the insurance contract, and the authority shall not be considered an insurer subject to the Kentucky Insurance Code by virtue of entering into the contract.

History. Enact. Acts 1988, ch. 383, § 10, effective July 15, 1988.

Compiler’s Notes.

This section was formerly compiled as KRS 154.049.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-060. Projects eligible for insurance by authority — Priority given to certain projects.

  1. Insurance, guarantees, or letters of credit provided or procured pursuant to KRS 154.20-040 and 154.20-045 shall be provided or procured only for projects within this state which are consistent with the purposes and objectives of the authority and this chapter.
  2. The authority shall give paramount priority in providing or procuring insurance, guarantees, and letters of credit to projects which have the greatest potential for creating new jobs or retaining current jobs within this state.
  3. Notwithstanding the provisions of subsection (2) of this section, when considering project applications from a riverport facility established under KRS 65.520 , the authority shall not give priority to regulatory criteria pertaining to direct employment at these facilities and shall instead give priority to the indirect employment maintained or created.

History. Enact. Acts 1988, ch. 383, § 11, effective July 15, 1988; 2000, ch. 371, § 3, effective July 14, 2000.

Compiler’s Notes.

This section was formerly compiled as KRS 154.051.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-070. Authority backing limited to projects with significant private sector financial support — Terms and conditions determined by authority.

  1. Insurance, guarantees, or letters of credit shall not be provided or procured unless the authority shall be legally assured that the loans, debentures, or leases insured, or guaranteed, or for which letters of credit are issued, will be used to assist projects which also have significant private sector financial support.
  2. Insurance, guarantees, or letters of credit may be provided or procured on the terms and conditions the authority, in its sole discretion, shall determine to be reasonable, appropriate, and consistent with the purposes and objectives of the authority and this chapter.
  3. The authority may charge the lender or the borrower, or both, a fee or premium for loan, debenture, or lease insurance, guarantee, or letter of credit. Guidelines for premiums or fees charged by the authority for loan, debenture, or lease insurance, guarantees, or letters of credit shall be established by the authority.

History. Enact. Acts 1988, ch. 383, § 12, effective July 15, 1988.

Compiler’s Notes.

This section was formerly compiled as KRS 154.053.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-080. Agreements with lenders — Provisions included.

The authority may enter into agreements with lenders for participation in loan insurance. The agreements may include, but need not be limited to:

  1. Authorization for the lender to determine, collect, and transmit to the authority a fee or premium charge within a specified range established consistent with the purposes and objectives of the authority;
  2. Specification of whether the premium charge shall be paid by the lender, the borrower, the authority, or by a combination thereof in specified proportions;
  3. The procedure by which a lender may make a claim upon the authority upon default by the borrower and the conditions under which a claim may be made;
  4. The maximum amount of claims a lender may make upon the authority, which amount may be equal to, greater than, or less than the proportion of the total premiums collected by the authority which is accounted for by premiums collected by the lender.

History. Enact. Acts 1988, ch. 383, § 13, effective July 15, 1988.

Compiler’s Notes.

This section was formerly compiled as KRS 154.055.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-090. Special fund to secure loan insurance account obligations.

The authority may establish a special fund or funds solely to secure some or all of its obligations within the loan insurance account into which fees or premiums collected by the authority for loan, debenture, or lease insurance, guarantees, or letters of credit may be deposited.

History. Enact. Acts 1988, ch. 383, § 14, effective July 15, 1988.

Compiler’s Notes.

This section was formerly compiled as KRS 154.057.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-100. Reclamation development fund — Deposits.

  1. Assistance for reclamation development projects shall be provided by a fund, which shall be established and managed by the authority, to be known as the reclamation development fund.
  2. The authority shall pay into the fund any money appropriated or otherwise provided by the state for that purpose and any other money available to the authority for assistance for reclamation development projects, including funds from public or private sources.

History. Enact. Acts 1988, ch. 383, § 15, effective July 15, 1988.

Compiler’s Notes.

This section was formerly compiled as KRS 154.059.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-105. Use of reclamation development fund.

Moneys in the reclamation development fund:

  1. Shall be used to foster reclamation development projects described in a reclamation development plan submitted to the authority as part of the application for reclamation development fund moneys, except that no money in the reclamation development fund shall be used for any reclamation development project until the reclamation development plan with respect to that project has been approved by the Energy and Environment Cabinet pursuant to KRS Chapter 350; and
  2. May be made available to any person or entity, public or private, organized for profit or not for profit; and
  3. Shall be made on the terms and conditions the authority, in its sole discretion, determines to be reasonable, appropriate, and consistent with the purposes and objectives of the authority and this chapter, which may include, but not be limited to, the pledging of adequate security.

History. Enact. Acts 1988, ch. 383, § 16, effective July 15, 1988; 2010, ch. 24, § 196, effective July 15, 2010.

Compiler’s Notes.

This section was formerly compiled as KRS 154.061.

154.20-110. Written approval of application by local agency.

All applications made to the authority shall be subject to written approval by a local development corporation, local development agency, or in the absence thereof, approval by a local governmental body.

History. Enact. Acts 1980, ch. 340, § 22, effective July 15, 1980; 1986, ch. 201, § 4, effective July 15, 1986.

Compiler’s Notes.

This section was formerly compiled as KRS 154.065.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-120. Attorney’s fees as part of judgment.

In any legal action brought by the authority or the insurance corporation to obtain the collection or repayment of a defaulted loan, as part of a successful judgment against the debtor or guarantor, the authority or insurance corporation shall be entitled to an award of reasonable attorney’s fees, provided that provision therefor is contained in the agreements signed by the debtor as part of a loan or other debt transaction between the debtor and the authority or insurance corporation.

History. Enact. Acts 1980, ch. 340, § 21, effective July 15, 1980.

Compiler’s Notes.

This section was formerly compiled as KRS 154.135.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-130. Financial interests of authority members.

  1. No member of the authority or officer or employee thereof shall either directly or indirectly be a party to or be in any manner interested in any contract or agreement with the authority for any matter, cause, or thing whatsoever by reason whereof any liability or indebtedness shall in any way be created against such authority.
  2. Should a member, officer, or employee of the authority have such an interest, then the member, officer, or employee of the authority shall:
    1. Disclose the interest;
    2. Refrain from participating in discussions relating to any such contract or agreement with the authority; and
    3. Refrain from voting or otherwise taking action on any such contract or agreement of the authority.
  3. If any contract or agreement shall be made in violation of the provisions of this section the same shall be null and void and no action shall be maintained thereon against such authority.

History. Enact. Acts 1958, ch. 152, § 18; 1994, ch. 450, § 2, effective July 15, 1994.

Compiler’s Notes.

This section was formerly compiled as KRS 154.160.

Opinions of Attorney General.

If, by virtue of a contract or agreement (with which some member of the authority had some affiliation), the Industrial Development Finance Authority would have a financial liability or indebtedness to a creditor, loan applicant or that authority member, then the section would apply. OAG 78-308 .

This section would not prohibit an individual from serving as a member of the authority, by virtue of the fact that a customer or client in his private business might also be an applicant for a loan from the authority, so long as the member in no way became involved in the discussion of the merits of the loan or voted on making the loan, since no liability or indebtedness would in any way be created against the authority. OAG 78-308 .

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-140. Negotiations with other agencies — Construction of authority’s powers and obligations.

  1. The authority may negotiate with other agencies of the state government to obtain the use of moneys which such agencies are authorized to invest in government obligations. Funds so negotiated shall be transferred on an inter-account basis to the appropriate fund of the authority. The authority may also negotiate with the State Property and Buildings Commission for the issuance and sale of revenue or other authorized bonds in accordance with the methods prescribed in KRS 56.520 for the purposes of this chapter.
  2. Nothing in this chapter shall be construed to give the authority power to pledge the credit or taxing power of the Commonwealth or any of its political subdivisions.

History. Enact. Acts 1958, ch. 152, § 19; 1978, ch. 96, § 13, effective July 1, 1978; 1980, ch. 340, § 15, effective July 15, 1980.

Compiler’s Notes.

This section was formerly compiled as KRS 154.170.

Research References and Practice Aids

Cross-References.

Commonwealth not to lend credit, become stockholder in corporation, nor build railroad or highway, Const., § 177.

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-150. Project status reports by authority — Annual report — Construction activity report.

  1. On or before October 1, 1992, and on or before the first day of every third month thereafter, the authority shall provide a written project status report to the Legislative Research Commission, and the authority shall be compelled to send a representative to testify on the project status report and the authority shall provide additional information on any projects upon request by the Legislative Research Commission. The written project status report shall include but is not limited to:
    1. The current status of each project under consideration by the authority, the proposed cost of a project, for each project under consideration, including any proposed financial obligations of the authority, the number of jobs to be created or retained by each project under consideration, and a description of the applicants with respect to each project under consideration; and
    2. The current status of each project, along with an updated cost for each project in progress, including any financial obligations of the authority and a description of the principals with respect to each project in progress.
  2. On or before November 1 of each year, the authority shall prepare an annual report and make it available on the Cabinet for Economic Development Web site as required by KRS 154.12-2035 . The report shall include information about the success or failure of each completed project, in order to determine the effectiveness of the Kentucky Economic Development Finance Authority.
  3. In addition to the project status report, all construction, reconstruction, or alteration, financed or facilitated in whole or in part by the authority shall be reported to the Department of Workforce Investment in the Education and Workforce Development Cabinet and to the Kentucky Legislative Research Commission not later than fifteen (15) days following the end of the month in which the agreement or contract facilitating or permitting such activity was executed. This construction activity report shall be subject to public information requests as provided by KRS 61.878 . Reports shall list subject construction activity by location of project site, and shall specify the type of construction, project owner, estimated cost of project, and estimated starting and completion dates if known.

HISTORY: Enact. Acts 1988, ch. 383, § 20, effective July 15, 1988; 1992, ch. 105, § 21, effective July 14, 1992; 1996, ch. 271, § 7, effective July 15, 1996; 2006, ch. 211, § 67, effective July 12, 2006; 2009, ch. 11, § 35, effective June 25, 2009; 2014, ch. 134, § 7, effective July 15, 2014; 2018 ch. 199, § 20, effective July 14, 2018; 2019 ch. 146, § 17, effective June 27, 2019.

Compiler’s Notes.

This section was formerly compiled as KRS 154.180.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-160. Development of criteria for productivity gains to be used in considering requests for financial assistance.

  1. The Kentucky Economic Development Finance Authority, or its successor, shall develop, pursuant to KRS 154.20-030 to 154.20-150 , criteria which may be used by the authority in considering the requests by industrial entities for financial assistance for proposed industrial development projects. The authority, or its successor, may develop criteria which shall include, but not be limited to, potential productivity gains due to the funding of the proposed technological investment.
  2. In developing criteria as prescribed in subsection (1) of this section, the authority shall consider the following:
    1. For existing firms, past productivity trends and potential productivity gains due to the funding of technological investments; and
    2. For new firms, the degree to which the proposed technological investment will be expected to cause the firm’s productivity to be higher than the average for firms in the industry it represents.
  3. When considering productivity gains, the authority shall consider the following:
      1. Total real value of output defined as the total sales in real dollars in the calendar year adjusted by the producer price index for the standard industrial classification of that business; or (a) 1. Total real value of output defined as the total sales in real dollars in the calendar year adjusted by the producer price index for the standard industrial classification of that business; or
      2. Potential total real value of output defined as the forecasted total sales in real dollars as measured in the current period; and
      1. Productivity measure defined as the total real value of output for a calendar year divided by total employment for that calendar year; or (b) 1. Productivity measure defined as the total real value of output for a calendar year divided by total employment for that calendar year; or
      2. Potential productivity measure defined as the potential total real value of output divided by the total forecasted employment.
  4. Productivity trends of a business shall be evaluated by comparing the annual rate of change in the productivity measure for an individual business to the annual rate of change in productivity measure for businesses engaged in a similar economic activity. The recommended source for industry productivity measures is the rate of change in industry labor productivity indexes published by the United States Bureau of Labor Statistics.

History. Enact. Acts 1992, ch. 358, § 19, effective July 14, 1992; 1994, ch. 499, § 20, effective July 15, 1994.

Compiler’s Notes.

This section was formerly compiled as KRS 154.24-160 .

154.20-170. Priority consideration for certain businesses.

  1. Industrial entities, agricultural business entities, business enterprises, or private sector firms which are members of a business network within the meaning of KRS 154.1-010 and businesses that compose the secondary wood products industry as defined in KRS 154.47-005 (8), shall be given priority consideration under state economic development loan, grant, and incentive programs administered by the Kentucky Economic Development Finance Authority.
  2. Notwithstanding the provisions of subsection (1) of this section, highest priority consideration under state economic development loan, grant, and incentive programs administered by the authority shall be given to those projects that are located in counties of Kentucky which have had an average countywide rate of unemployment of fifteen percent (15%) or greater in the most recent twelve (12) consecutive months for which unemployment figures are available, on the basis of the final unemployment figures calculated by the Department of Workforce Investment in the Education and Workforce Development Cabinet.

HISTORY: Enact. Acts 1994, ch. 390, § 11, effective July 15, 1994; 2001, ch. 133, § 1, effective June 21, 2001; 2002, ch. 65, § 4, effective July 15, 2002; 2006, ch. 211, § 68, effective July 12, 2006; 2009, ch. 11, § 36, effective June 25, 2009; 2013, ch. 49, § 2, effective June 25, 2013; 2017 ch. 117, § 17, effective June 29, 2017; 2018 ch. 199, § 21, effective July 14, 2018; 2019 ch. 146, § 18, effective June 27, 2019.

154.20-180. Business networks revolving loan fund — Eligibility for assistance — Administration of fund.

  1. Any business firm that is a member of an approved business network comprising individual firms, companies, agricultural business entities, or industrial entities that have been identified as key industries and that have been targeted by the state’s economic development strategic plan as eligible for priority consideration for state assistance shall also be eligible for state assistance under the provisions of this section.
  2. A business networks revolving loan fund shall be established and shall be administered by the Kentucky Economic Development Finance Authority. The fund shall be maintained and credited with repayments and the fund balance shall be available in perpetuity to provide loans at or below market rates at terms not to exceed thirty (30) years to members of approved business networks to support the development and production of new and expanded products and production facilities, including, but not limited to, financing development and construction of value-added food and fiber production facilities, accelerating modernization of production systems, and making of new technology investments. The maximum amount of loans made available to any member of an approved business network shall not exceed ten percent (10%) of the total amount of available funds.
  3. The Kentucky Economic Development Finance Authority shall cause to be established and implemented fiscal controls and accounting procedures sufficient to assure proper accounting during appropriate accounting periods for payments and disbursements received and made by the fund and for fund balances at the beginning and end of each accounting period.
  4. In addition to powers and authorities otherwise granted the Kentucky Economic Development Finance Authority, the authority may:
    1. Make and condition loans from the fund as required by state or federal law;
    2. Enter into any necessary or required agreement and give or make any necessary or required assurance or certification with any person or entity to receive payments or to make or to provide loans;
    3. Guarantee or purchase insurance for obligations of the fund where the action would improve credit market access or reduce interest rates;
    4. Receive money from any public or private source to implement the purposes of this section;
    5. Approve or reject applications made to it for loans from the fund, and establish standards applicable thereto;
    6. Provide for the issuance of revenue bonds and bond anticipation notes as prescribed by KRS 154.10-035 for the purposes as set forth in this section;
    7. Promulgate administrative regulations implementing the purposes of this section in accordance with KRS Chapter 13A; and
    8. Do all things necessary and convenient to achieve the objectives and purposes of this section which are not otherwise prohibited by state law.
  5. In carrying out the objectives and purposes of this section, the authority shall consult with the Kentucky Department of Agriculture regarding development of standards and conditions applicable to agribusiness and agriculture related loan applications.
  6. Nothing contained herein shall preclude the authority from contracting with or acquiring services from any state agency or institution regarding implementation of this section.

History. Enact. Acts 1994, ch. 390, § 14, effective July 15, 1994.

154.20-190. Rural hospital operations and facilities revolving loan fund.

  1. As used in this section:
    1. “Authority” means the Kentucky Economic Development Finance Authority; and
    2. “Rural hospital” means any hospital located within a county of the Commonwealth having a population of less than fifty thousand (50,000) according to the most recent annual estimates of the resident population issued by the United States Census Bureau.
    1. The rural hospital operations and facilities revolving loan fund is established for the authority to provide loans to a rural hospital. (2) (a) The rural hospital operations and facilities revolving loan fund is established for the authority to provide loans to a rural hospital.
    2. Any loan issued by the authority shall not exceed a twenty (20) year term and shall be utilized by the Cabinet for Economic Development to assist a rural hospital in providing needed direct health care services for the citizens of the Commonwealth by:
      1. Maintaining or upgrading the hospital’s facilities;
      2. Maintaining or increasing the current staff of the rural hospital; or
      3. Providing health care services that are not currently available to citizens.
  2. The Cabinet for Economic Development shall:
    1. Determine the terms and conditions of each loan, including the repayment to be deposited back in the revolving loan fund for issuance of future loans to other rural hospitals;
    2. Monitor the performance of the rural hospital; and
    3. By October 1, 2020, and by each October 1 thereafter, report to the Interim Joint Committee on Appropriations and Revenue information about each outstanding loan issued, including:
      1. The name and location of the rural hospital;
      2. The amount of principal originally loaned;
      3. The terms of the loan and whether the rural hospital is currently meeting those terms; and
      4. How the rural hospital used the loan related to facilities, staff, or additional services.
    1. The fund created in subsection (2) of this section shall be a trust and agency account. (4) (a) The fund created in subsection (2) of this section shall be a trust and agency account.
    2. The Cabinet for Economic Development shall administer the fund.
    3. The fund shall consist of appropriations, contributions, donations, gifts, or federal funds.
    4. Notwithstanding KRS 45.229 , any moneys remaining in the fund at the close of the fiscal year shall not lapse but shall be carried forward into the succeeding fiscal year.
    5. Any interest earnings of the fund shall become a part of the fund and shall not lapse.
    6. Moneys deposited in the fund are hereby appropriated for the sole purpose of providing loans to rural hospitals.

HISTORY: 2020 ch. 128, § 1, effective April 24, 2020.

Kentucky Enterprise Initiative Act

154.20-200. Definitions for KRS 154.20-200 to 154.20-216.

As used in KRS 154.20-200 to 154.20-216 , unless the context clearly indicates otherwise:

  1. “Agreement” means any agreement made pursuant to KRS 154.20-210 between the authority and an approved company with respect to an economic development project in which inducements are granted.
  2. “Approval” means action taken by the authority that authorizes the eligible company to receive inducements in connection with an economic development project under KRS 154.20-200 to 154.20-216 and that designates the eligible company as an approved company.
  3. “Approved company” means an eligible company that initiates an economic development project in the Commonwealth whose application has been approved by the authority.
  4. “Approved expense” means:
    1. For an approved company that establishes a new facility or expands an existing facility:
      1. The cost of building and construction materials, upon which Kentucky sales and use tax as defined in KRS Chapter 139 is paid, purchased in connection with the acquisition, construction, installation, equipping, and rehabilitation of an economic development project; and
      2. The cost of equipment purchased and used in research and development, at the economic development project, upon which Kentucky sales and use tax as defined in KRS Chapter 139 is paid.
    2. Approved expenses may only be incurred during the life of the project, not to exceed eighteen (18) months from the date an eligible company is designated an approved company by the authority. Provided, however, that the authority may grant a twelve (12) month extension of the project for good cause shown. Approved expenses shall not include any expenditure made before the date the company is approved by the authority.
  5. “Authority” means the Kentucky Economic Development Finance Authority.
  6. “Economic development project” or “project” means a new or expanded service or technology, manufacturing, or tourism attraction activity, conducted by the approved company at a specific site in the Commonwealth, including the acquisition of real property by an approved company and the construction, installation, and rehabilitation of fixtures, and facilities, necessary or desirable for improvement of real estate owned, used, or occupied by the approved company, excluding the cost of labor. The minimum investment for an economic development project located in a preference zone shall be one hundred thousand dollars ($100,000) and for a project not located in a preference zone, five hundred thousand dollars ($500,000).
  7. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or other legal entity that is primarily engaged in manufacturing, service or technology, or operating or developing a tourism attraction. Any company whose primary purpose is retail sales shall not be an eligible company.
  8. “Equipment used in research and development” means:
    1. “Equipment” means assets used in the operation of a business which are subject to depreciation under Sections 167 and 168 of the Internal Revenue Code, including assets which are expensed under Section 179 of the Internal Revenue Code. The term “equipment” shall not include any tangible personal property used to maintain, restore, mend, or repair machinery or equipment, consumable operating supplies, office supplies, or maintenance supplies; and
    2. “Research and development” means experimental or laboratory activity that has as its ultimate goals the development of new products, the improvement of existing products, the development of new uses for existing products, or the development or improvement of methods for producing products. “Research and development” does not include testing or inspection of materials or products for quality control purposes, efficiency surveys, management studies, consumer surveys, or other market research, advertising or promotional activities, or research in connection with literary, historical or similar projects.
  9. “Inducements” means the sales and use tax refund allowed to an approved company for approved expenses under KRS 154.20-200 to 154.20-216 .
  10. “Life of the project” or “project life” means the eighteen (18) month period beginning on the date the company is designated as an approved company by the authority and the twelve (12) month extension if the extension is granted by the authority.
    1. “Manufacturing” means to make, assemble, process, produce, or perform any other activity that changes the form or conditions of raw materials and other property, and shall include any ancillary activity to the manufacturing process, such as storage, warehousing, distribution, and related office facilities; (11) (a) “Manufacturing” means to make, assemble, process, produce, or perform any other activity that changes the form or conditions of raw materials and other property, and shall include any ancillary activity to the manufacturing process, such as storage, warehousing, distribution, and related office facilities;
    2. “Manufacturing” does not include any activity involving the performance of work classified by the divisions, including successor divisions, of mining in accordance with the “North American Industry Classification System,” as revised by the United States Office of Management and Budget from time to time, or any successor publication.
  11. “Preference zone” or “zone” means the geographic area that was designated as an enterprise zone pursuant to KRS 154.45-050 , and that was in existence as an enterprise zone on December 31, 2003. No enterprise zone may be expanded after March 18, 2005. Enterprise zone designations that are scheduled to expire, pursuant to KRS 154.45-050 (2), shall expire as scheduled. All preference zones shall expire on December 31, 2007.
  12. “Sales and use tax” means those taxes paid to the Commonwealth for the purchase of goods pursuant to KRS Chapter 139.
    1. “Service or technology” means either: (14) (a) “Service or technology” means either:
      1. Any activity involving the performance of work except work classified by the divisions, including successor divisions, of agriculture, forestry and fishing, mining, utilities, construction, manufacturing, wholesale trade, retail trade, real estate rental and leasing, educational services, accommodation and food services, and public administration in accordance with the “North American Industry Classification System,” as revised by the United States Office of Management and Budget from time to time, or any successor publication; or
      2. Regional or headquarters operations of an entity engaged in an activity listed in subparagraph 1. of this paragraph.
    2. Notwithstanding paragraph (a) of this subsection, “service or technology” shall not include any activity involving the performance of work by an individual who is providing direct service to the public pursuant to a license issued by the state or an association that licenses in lieu of the state.
  13. “Tourism attraction” shall have the meaning assigned in KRS 148.851 .

History. Enact. Acts 2005, ch. 168, § 36, effective March 18, 2005; 2006, ch. 149, § 214, effective July 12, 2006.

Compiler’s Notes.

Sections 167, 168 and 179 of the Internal Revenue Code referenced in subsection (8) are compiled as 26 USCS §§ 167, 168 and 179, respectively.

Section KRS 154.20-050 referenced in subsection (12) is now repealed.

Legislative Research Commission Note.

(3/18/2005). 2005 Ky. Acts ch. 168, § 165, provides that this section shall apply to tax years beginning on or after January 1, 2005.

154.20-202. Authority to promulgate administrative regulations — Requirements for approval of eligible companies and economic development projects.

  1. The authority shall promulgate administrative regulations, pursuant to KRS Chapter 13A, for approving eligible companies pursuant to KRS 154.20-200 to 154.20-216 .
  2. Relevant standards for approval of eligible companies and economic development projects shall include but are not limited to creditworthiness of the eligible company, employment opportunities for Kentucky residents, including wages to be paid, whether the project is located in a preference zone, whether the eligible company is participating in other incentive programs pursuant to KRS Chapter 154 for the project, and the likelihood that the project will be an economic success. An eligible company with an economic development project located in a preference zone shall be given priority for approval.
  3. An eligible company shall certify to the authority, by written application provided by the authority, the following:
    1. That the company is making a minimum investment of one hundred thousand dollars ($100,000) in the project, if the project is located in a preference zone or five hundred thousand dollars ($500,000) in the project, if the project is not located in a preference zone;
    2. A description of the project;
    3. An estimate of the expenses for which the company shall seek approval;
    4. Supporting documentation, as requested by the authority; and
    5. Any other information requested by the authority.

History. Enact. Acts 2005, ch. 168, § 37, effective March 18, 2005.

Legislative Research Commission Note.

(3/18/2005). 2005 Ky. Acts ch. 168, § 165, provides that this section shall apply to tax years beginning on or after January 1, 2005.

154.20-203. Deadline for new applications — Governing law for outstanding approved projects.

New applications shall not be accepted or considered under KRS 154.20-200 to 154.20-216 on or after June 26, 2009. All outstanding approved projects as of June 26, 2009, shall continue to be governed by the provisions of KRS 154.20-200 to 154.20-216 .

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 24, effective June 26, 2009.

154.20-204. Total tax refund incentive — Application and approval of eligible company — Transfer of designation as approved company.

  1. The total tax refund incentive available for commitment by the authority for all projects, for each fiscal year, shall not exceed twenty million dollars ($20,000,000) for building and construction materials and five million dollars ($5,000,000) for equipment used in research and development.
  2. If an eligible company proposes to locate or expand its business in the state, the eligible company may submit an application to the authority to become an approved company pursuant to KRS 154.20-200 to 154.20-216 .
  3. When the application of an eligible company is complete, it shall be brought before the authority for approval.
  4. The eligible company shall only be designated an approved company for the specific, discrete project contained in its application.
  5. A company may transfer its designation as an approved company for the project to another company upon prior notification to the authority in a manner prescribed by the authority. The company to which approval is transferred shall be eligible for the incentives to which the transferring company was entitled on the entire project.

History. Enact. Acts 2005, ch. 168, § 38, effective March 18, 2005.

Legislative Research Commission Note.

(3/18/2005). 2005 Ky. Acts ch. 168, § 165, provides that this section shall apply to tax years beginning on or after January 1, 2005.

154.20-206. Authorization of sales and use tax refund for approved company — Administrative regulations.

  1. Notwithstanding any provision of KRS 139.770 to the contrary, an approved company under the terms of KRS 154.20-200 to 154.20-216 may receive a tax refund of sales and use tax paid on approved expenses for the cost of building and construction materials that are permanently incorporated as an improvement to real property to an economic development project and equipment used in research and development at an economic development project. The approved company shall have no obligation to refund or otherwise return any amount of the sales and use tax refund to the person who originally collected the tax and remitted it to the state.
  2. An approved company shall only apply for a refund:
    1. Of sales and use tax paid for construction materials and building fixtures and for equipment used in research and development purchased during the life of the economic development project not to exceed the amount specified in the approved company’s agreement, as defined in KRS 154.20-200 ; and
    2. Within sixty (60) days after the completion of the economic development project or the expiration of the life of the project, whichever occurs first.
  3. An approved company shall execute information-sharing agreements prescribed by the Department of Revenue with contractors, vendors, and other related parties to verify construction material and building fixture costs and equipment used in research and development, including applicable taxes, for the economic development project.
  4. Interest shall not be allowed or paid on any refund made under the provisions of this section. The Department of Revenue may examine any refund within four (4) years from the date the refund application is received. An overpayment resulting from the examination shall be repaid to the State Treasury. Any amount required to be repaid is subject to the interest provisions of KRS 131.183 and to the penalty provisions of KRS 131.180 .
  5. The Department of Revenue may promulgate administrative regulations, pursuant to the provisions of KRS Chapter 13A, and shall require the filing of forms designed by the Department of Revenue to reflect the intent of KRS 154.20-200 to 154.20-216 .

History. Enact. Acts 2005, ch. 168, § 39, effective March 18, 2005.

Legislative Research Commission Notes.

(3/18/2005). 2005 Ky. Acts ch. 168, § 165, provides that this section shall apply to tax years beginning on or after January 1, 2005.

(3/18/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section.

154.20-208. Time for application and approval of eligible company as approved company.

  1. An eligible company may apply to be designated an approved company under KRS 154.20-200 to 154.20-216 by the authority on and after October 1, 2005.
  2. No approvals under KRS 154.20-200 to 154.20-216 shall be effective before January 1, 2006.

History. Enact. Acts 2005, ch. 168, § 40, effective March 18, 2005.

Legislative Research Commission Note.

(3/18/2005). 2005 Ky. Acts ch. 168, § 165, provides that this section shall apply to tax years beginning on or after January 1, 2005.

154.20-210. Agreement between authority and approved company.

Before any approved company is granted inducements as provided in KRS 154.20-200 to 154.20-216 , an agreement with respect to the company’s economic development project shall be entered into between the authority and the approved company. The terms and provisions of the agreement, including the amount of approved expenses and the maximum inducement, shall be determined by negotiations between the authority and the approved company, except that each agreement shall include the following provisions:

  1. The term of an agreement shall not be longer than eighteen (18) months from the date of approval of the company. The agreement may be extended by the authority an additional twelve (12) months for good cause shown by approval of the authority and notation upon the face of the agreement. The authority shall notify the Department of Revenue of any such extension; and
  2. The agreement shall include:
    1. A description of the project for which the inducements have been authorized;
    2. A description of the authorized expenses;
    3. The total inducements allowed for the project, not to exceed the amount negotiated by the authority and the company; and
    4. A provision that the inducements are not assignable without written notice to the authority before any assignment is made.

History. Enact. Acts 2005, ch. 168, § 41, effective March 18, 2005.

Legislative Research Commission Notes.

(3/18/2005). 2005 Ky. Acts ch. 168, § 165, provides that this section shall apply to tax years beginning on or after January 1, 2005.

(3/18/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section.

154.20-212. Company’s filings under KRS 154.20-200 to 154.20-216 subject to Open Records Act.

The contents of a company’s filings under KRS 154.20-200 to 154.20-216 shall be subject to the Kentucky Open Records Act, KRS 61.870 to 61.884 .

History. Enact. Acts 2005, ch. 168, § 42, effective March 18, 2005.

Legislative Research Commission Note.

(3/18/2005). 2005 Ky. Acts ch. 168, § 165, provides that this section shall apply to tax years beginning on or after January 1, 2005.

154.20-214. Authority to report annually to Legislative Research Commission and Governor.

The authority shall annually submit a complete and detailed report of the use of the incentives and participation of approved companies under KRS 154.20-200 to 154.20-216 within one hundred twenty (120) days after the end of each fiscal year to the Legislative Research Commission and to the Governor.

History. Enact. Acts 2005, ch. 168, § 43, effective March 18, 2005.

Legislative Research Commission Note.

(3/18/2005). 2005 Ky. Acts ch. 168, § 165, provides that this section shall apply to tax years beginning on or after January 1, 2005.

154.20-216. Short Title — Kentucky Enterprise Initiative Act.

KRS 154.20-200 to 154.20-216 shall be known as the Kentucky Enterprise Initiative Act.

History. Enact. Acts 2005, ch. 168, § 44, effective March 18, 2005.

Legislative Research Commission Note.

(3/18/2005). 2005 Ky. Acts ch. 168, § 165, provides that this section shall apply to tax years beginning on or after January 1, 2005.

154.20-230. Definitions for KRS 154.20-230 to 154.20-240. [Effective until June 29, 2021]

As used in KRS 154.20-230 to 154.20-240 :

  1. “Application” means a document submitted by small businesses and investors, on a form supplied by the authority, for the purpose of requesting certification to participate in the program and to apply for a credit;
  2. “Authority” means the Kentucky Economic Development Finance Authority;
  3. “Commonwealth” means the Commonwealth of Kentucky;
  4. “Credit” means the nonrefundable angel investor tax credit established by KRS 141.396 and awarded by the authority pursuant to KRS 154.20-236 ;
  5. “Department” means the Department of Revenue;
  6. “Enhanced incentive counties” has the same meaning as in KRS 154.32-010 ;
  7. “Entity” means any corporation, limited liability company, business development corporation, partnership, limited partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted;
  8. “Fee” means a nonrefundable application fee in an amount set by the authority, to be collected by the authority to offset the cost of administering KRS 154.20-230 to 154.20-240 ;
  9. “Full-time employee” means a person that is required to work a minimum of thirty-five (35) hours per week and is subject to the tax imposed by KRS 141.020 ;
  10. “Knowledge-based” has the same meaning as in KRS 164.6011 ;
    1. “Qualified activity” means any knowledge-based activity related to the new economy focus areas of the Office of Entrepreneurship, including but not limited to: (11) (a) “Qualified activity” means any knowledge-based activity related to the new economy focus areas of the Office of Entrepreneurship, including but not limited to:
      1. Bioscience;
      2. Environmental and energy technology;
      3. Health and human development;
      4. Information technology and communications; and
      5. Materials science and advanced manufacturing.
    2. A “qualified activity” does not include any activity principally engaged in by financial institutions, commercial development companies, credit companies, financial or investment advisors, brokerage or financial firms, other investment funds or investment fund managers, charitable and religious institutions, oil and gas exploration companies, insurance companies, residential housing developers, retail establishments, or any activity that the authority determines in its discretion to be against the public interest, against the purposes of KRS 154.20-230 to 154.20-240 , or in violation of any law;
  11. “Qualified investment” means an investment meeting the requirements of KRS 154.20-234 for qualified investments, and certified pursuant to KRS 154.20-236 ;
  12. “Qualified investor” means an individual investor meeting the requirements of KRS 154.20-234 for qualified investors, and certified pursuant to KRS 154.20-236 ; and
  13. “Qualified small business” means an entity meeting the requirements of KRS 154.20-234 for qualified small businesses, and certified pursuant to KRS 154.20-236 .

HISTORY: Enact. Acts 2014, ch. 102, § 21, effective July 15, 2014; 2018 ch. 199, § 22, effective July 14, 2018.

Legislative Research Commission Note.

(7/15/2014). In codification, the Reviser of Statutes has altered the numbering within subsection (11) of this statute from the way it appeared in 2014 Ky. Acts ch. 102, sec. 21, under the authority of KRS 7.136(1)(c).

154.20-230. Definitions for KRS 154.20-230 to 154.20-240. [Effective June 29, 2021]

As used in KRS 154.20-230 to 154.20-240 :

  1. “Application” means a document submitted by small businesses and investors, on a form supplied by the authority, for the purpose of requesting certification to participate in the program and to apply for a credit;
  2. “Authority” means the Kentucky Economic Development Finance Authority;
  3. “Commonwealth” means the Commonwealth of Kentucky;
  4. “Credit” means the nonrefundable angel investor tax credit established by KRS 141.396 and awarded by the authority pursuant to KRS 154.20-236 ;
  5. “Department” means the Department of Revenue;
  6. “Enhanced incentive counties” has the same meaning as in KRS 154.32-010 ;
  7. “Entity” means any corporation, limited liability company, business development corporation, partnership, limited partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted;
  8. “Fee” means a nonrefundable application fee in an amount set by the authority, to be collected by the authority to offset the cost of administering KRS 154.20-230 to 154.20-240 ;
  9. “Full-time employee” means a person that is required to work a minimum of thirty-five (35) hours per week and is subject to the tax imposed by KRS 141.020 ;
  10. “Knowledge-based” has the same meaning as in KRS 164.6011 ;
    1. “Qualified activity” means any knowledge-based activity related to the new economy focus areas of the Office of Entrepreneurship and Small Business Innovation, including but not limited to: (11) (a) “Qualified activity” means any knowledge-based activity related to the new economy focus areas of the Office of Entrepreneurship and Small Business Innovation, including but not limited to:
      1. Bioscience;
      2. Environmental and energy technology;
      3. Health and human development;
      4. Information technology and communications; and
      5. Materials science and advanced manufacturing.
    2. A “qualified activity” does not include any activity principally engaged in by financial institutions, commercial development companies, credit companies, financial or investment advisors, brokerage or financial firms, other investment funds or investment fund managers, charitable and religious institutions, oil and gas exploration companies, insurance companies, residential housing developers, retail establishments, or any activity that the authority determines in its discretion to be against the public interest, against the purposes of KRS 154.20-230 to 154.20-240 , or in violation of any law. Notwithstanding this paragraph, an entity involved in other technological advances may be deemed to be engaged in qualified activity, as determined by the executive director of the Office of Entrepreneurship and Small Business Innovation;
  11. “Qualified investment” means an investment meeting the requirements of KRS 154.20-234 for qualified investments, and certified pursuant to KRS 154.20-236 ;
  12. “Qualified investor” means an individual investor meeting the requirements of KRS 154.20-234 for qualified investors, and certified pursuant to KRS 154.20-236 ; and
  13. “Qualified small business” means an entity meeting the requirements of KRS 154.20-234 for qualified small businesses, and certified pursuant to KRS 154.20-236 .

HISTORY: Enact. Acts 2014, ch. 102, § 21, effective July 15, 2014; 2018 ch. 199, § 22, effective July 14, 2018; 2021 ch. 185, § 109, effective June 29, 2021.

154.20-232. Purpose of KRS 154.20-230 to 154.20-240 — Application moratorium. [Effective until June 29, 2021]

  1. KRS 154.20-230 to 154.20-240 shall be known as the “Kentucky Angel Investment Act.”
  2. The purpose of KRS 141.396 and 154.20-230 to 154.20-240 is to encourage capital investment in the Commonwealth by individual investors that will further the establishment or expansion of small businesses, create additional jobs, and foster the development of new products and technologies, by providing tax credits for certain investments in small businesses located in the Commonwealth, operating in the fields of knowledge-based, high-tech, and research and development, and showing a potential for rapid growth.
  3. To participate in the program created by KRS 141.396 and 154.20-230 to 154.20-240 :
    1. Small businesses and individual investors shall request certification from the authority pursuant to KRS 154.20-236 . To be qualified, the small businesses and individual investors shall fulfill the requirements outlined in KRS 154.20-234 ; and
    2. Once certified, qualified investors may make investments in qualified small businesses, and may apply to the authority for a credit in return for making the investment if that investment qualifies under KRS 154.20-234 .
  4. Any qualified investment made in a qualified small business under KRS 154.20-230 to 154.20-240 shall be used by that business, insofar as possible, to leverage additional capital investments from other sources.

History. Enact. Acts 2014, ch. 102, § 22, effective July 15, 2014; 2018 ch. 171, § 99, effective April 14, 2018; 2019 ch. 151, § 61, effective June 27, 2019.

Legislative Research Commission Notes.

(6/27/2019). Section 85 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 61 of that Act apply retroactively to April 14, 2018.

154.20-232. Purpose of KRS 154.20-230 to 154.20-240 — Application moratorium. [Effective June 29, 2021]

  1. KRS 154.20-230 to 154.20-240 shall be known as the “Kentucky Angel Investment Act.”
  2. The purpose of KRS 141.396 and 154.20-230 to 154.20-240 is to encourage capital investment in the Commonwealth by individual investors that will further the establishment or expansion of small businesses, create additional jobs, and foster the development of new products and technologies, by providing tax credits for certain investments in small businesses located in the Commonwealth, operating in the fields of knowledge-based, high-tech, and research and development, and showing a potential for rapid growth.
  3. To participate in the program created by KRS 141.396 and 154.20-230 to 154.20-240 :
    1. Small businesses and individual investors shall request certification from the authority pursuant to KRS 154.20-236 . To be qualified, the small businesses and individual investors shall fulfill the requirements outlined in KRS 154.20-234 ;
    2. Once certified, qualified investors may apply to the authority for a credit in return for making the investment if that investment qualifies under KRS 154.20-234 ; and
    3. Once the authority certifies the qualified investment, the qualified investor may effectuate the investment, pursuant to any and all guidelines issued by the authority.
  4. Any qualified investment made in a qualified small business under KRS 154.20-230 to 154.20-240 shall be used by that business, insofar as possible, to leverage additional capital investments from other sources.

HISTORY: Enact. Acts 2014, ch. 102, § 22, effective July 15, 2014; 2018 ch. 171, § 99, effective April 14, 2018; 2019 ch. 151, § 61, effective June 27, 2019; 2021 ch. 185, § 110, effective June 29, 2021.

154.20-234. Angel Investor Program qualification requirements. [Effective until June 29, 2021]

The requirements for small businesses, investors, and investments to be qualified for participation in the Angel Investor Program are as follows:

  1. To be certified as a qualified small business, the business shall demonstrate to the authority that it is an entity which, at the time the small business requests certification:
    1. Has a net worth of ten million dollars ($10,000,000) or less or net income after federal income taxes for each of the two (2) preceding fiscal years of three million dollars ($3,000,000) or less;
    2. Is actively and principally engaged in a qualified activity within the Commonwealth, or will be actively and principally engaged in a qualified activity within the Commonwealth after the receipt of a qualified investment by a qualified investor;
    3. Has no more than one hundred (100) full-time employees;
    4. Has more than fifty percent (50%) of its assets, operations, and employees located in the Commonwealth; and
    5. Has at no time received an aggregate amount of qualified investments that has allowed qualified investors to receive more than one million dollars ($1,000,000) in angel investor credits;
  2. To be certified as a qualified investor, an individual investor shall demonstrate to the authority that he or she:
    1. Is an individual natural person;
    2. Qualifies as an accredited investor pursuant to Regulation D of the United States Securities and Exchange Commission, 17 C.F.R. sec. 230.501, in effect as of the date the individual investor requests certification;
    3. Does not hold in excess of twenty percent (20%) ownership interest in, and is not employed by, the qualified small business prior to making the qualified investment in that qualified small business;
    4. Is not closely related to an individual who holds in excess of twenty percent (20%) ownership interest in, or who is employed by, the qualified small business prior to making the qualified investment in that qualified small business. For purposes of this paragraph, “closely related” means any of the following in relation to the owner or owners or spouse of the owner or owners:
      1. Parents or grandparents;
      2. Children or their spouses; or
      3. Siblings or their spouses; and
    5. Seeks a financial return from the investment made in the qualified small business;
  3. To be certified as a qualified investment, the investment shall:
    1. Be a cash investment of at least ten thousand dollars ($10,000), in a qualified small business by a qualified investor; and
    2. Be offered and executed in compliance with applicable state and federal securities laws and regulations; and
  4. The authority may establish additional requirements and guidelines for the efficient implementation and administration of the Kentucky Angel Investment Act and to carry out its purposes.

HISTORY: Enact. Acts 2014, ch. 102, § 23, effective July 15, 2014; 2018 ch. 199, § 23, effective July 14, 2018; 2020 ch. 76, § 1, effective July 15, 2020.

154.20-234. Angel Investor Program qualification requirements. [Effective June 29, 2021]

  1. The requirements for small businesses, investors, and investments to be qualified for participation in the Angel Investor Program are as follows:
    1. To be certified as a qualified small business, the business shall demonstrate to the authority that it is an entity which, at the time the small business requests certification:
      1. Has a net worth of ten million dollars ($10,000,000) or less or net income after federal income taxes for each of the two (2) preceding fiscal years of three million dollars ($3,000,000) or less;

        2 Is actively and principally engaged in a qualified activity within the Commonwealth, or will be actively and principally engaged in a qualified activity within the Commonwealth after the receipt of a qualified investment by a qualified investor;

        3. Has no more than one hundred (100) full-time employees;

        4. Has more than fifty percent (50%) of its assets, operations, and employees located in the Commonwealth; and

        5. Has at no time received an aggregate amount of qualified investments that has allowed qualified investors to receive more than one million dollars ($1,000,000) in angel investor credits;

    2. To be certified as a qualified investor, an individual investor shall demonstrate to the authority that he or she:
      1. Is an individual natural person who may utilize a single-member limited liability company to make the investment as long as the individual natural person is the owner and the limited liability company is a disregarded entity;
      2. Qualifies as an accredited investor pursuant to Regulation D of the United States Securities and Exchange Commission, 17 C.F.R. sec. 230.501, in effect as of the date the individual investor requests certification;
      3. Does not hold in excess of twenty percent (20%) ownership interest in, and is not employed by, the qualified small business prior to making the qualified investment in that qualified small business;
      4. Is not closely related to an individual who holds in excess of twenty percent (20%) ownership interest in, or who is employed by, the qualified small business prior to making the qualified investment in that qualified small business. For purposes of this paragraph, “closely related” means any of the following in relation to the owner or owners or spouse of the owner or owners:
        1. Parents or grandparents;
        2. Children or their spouses; or
        3. Siblings or their spouses; and
      5. Seeks a financial return from the investment made in the qualified small business; and
    3. To be certified as a qualified investment, the investment shall:
      1. Be a cash investment of at least ten thousand dollars ($10,000), in a qualified small business by a qualified investor; and
      2. Be offered and executed in compliance with applicable state and federal securities laws and regulations.
  2. In consideration for the qualified investment, the qualified investor shall receive an equity interest, or a near equity interest, such as a simple agreement for future equity, or “SAFE agreement”, or a convertible debt instrument in the qualified small business.
  3. The authority may establish additional requirements and guidelines for the efficient implementation and administration of the Kentucky Angel Investment Act and to carry out its purposes.

HISTORY: Enact. Acts 2014, ch. 102, § 23, effective July 15, 2014; 2018 ch. 199, § 23, effective July 14, 2018; 2020 ch. 76, § 1, effective July 15, 2020; 2021 ch. 185, § 111, effective June 29, 2021.

154.20-236. Total amounts of tax credit that may be awarded — Administrative regulations — Contract for administration and management of certification and application procedure.

  1. The total amount of credit that may be awarded by the authority in each calendar year, pursuant to KRS 154.20-230 to 154.20-240 , to:
    1. All qualified investors shall be no more than three million dollars ($3,000,000); and
    2. Any individual qualified investor shall be no more than two hundred thousand dollars ($200,000).
    1. The total amount of credit that may be awarded by the authority to: (2) (a) The total amount of credit that may be awarded by the authority to:
      1. All qualified investors pursuant to KRS 154.20-230 to 154.20-240 ; and
      2. All investors in all investment funds pursuant to KRS 154.20-250 to 154.20-284 ; shall be no more than forty million dollars ($40,000,000) in total for all years prior to December 31, 2020.
    2. Beginning on or after January 1, 2021, the amount of credit that may be awarded by the authority in each calendar year shall be equal to the amount provided in subsection (1) of this section.
    3. The authority shall not grant preliminary or final approval for applications received for the Kentucky Angel Investment Act on or after January 1, 2019, but may resume approving applications received on or after January 1, 2021.
  2. The authority shall, by promulgation of an administrative regulation, develop a standard procedure for:
    1. Small businesses and investors to request certification for participation in the program;
    2. Qualified investors to request certification of a planned investment as being a qualified investment, and to apply for a credit; and
    3. The award of credits to qualified investors making qualified investments.
  3. At a minimum, the procedure shall:
    1. Require small businesses and investors to demonstrate to the authority that they, and any planned investment, satisfy all requirements provided in KRS 154.20-234 ;
    2. Provide small businesses and investors with a standard written application form to request certification and apply for a credit;
    3. Require the payment of a fee; and
    4. Mandate a time period for the duration of certifications granted to small businesses and investors, and the procedures for recertification thereof.
  4. The amount of credit awarded shall not exceed:
    1. Twenty-five percent (25%) of the amount of the qualified investment, if the principal place of business of the qualified small business is outside an enhanced incentive county; or
    2. Forty percent (40%) of the amount of the qualified investment, if the principal place of business of the qualified small business is in an enhanced incentive county.
  5. Upon approval of a credit, the authority shall reduce the amount of available credit by the amount of credit approved to the qualified investor.
  6. The authority may, in effectuating this section, contract with a science and technology organization as defined in KRS 164.6011 to administer and manage the certification and application procedure established by the authority. However, the final approval of all credits shall be made solely by the authority.

HISTORY: Enact. Acts 2014, ch. 102, § 24, effective July 15, 2014; 2018 ch. 207, § 98, effective July 14, 2018; 2020 ch. 76, § 2, effective July 15, 2020.

154.20-238. Timetables for investments and credit award approval — Web site reports.

  1. No later than the earlier of:
    1. Eighty (80) days following the date of credit approval, including weekends and holidays; or
    2. December 31 of the calendar year of the approval;

      The qualified investor shall make the qualified investment and provide proof of the qualified investment to the authority in the manner required by the authority.

  2. No later than sixty (60) days following the receipt of proof of the qualified investment, the authority shall notify the department of the credit award, the amount of the credit, and the name and Social Security number of the qualified investor that will receive the credit.
  3. If the qualified investor either fails to make the qualified investment or fails to provide the required proof of the qualified investment prior to the deadline, the award of credit approval shall be null and void, and the authority shall notify the qualified investor of the nullification and readjust the amount of credit available.
    1. The authority shall maintain a publicly available Web site on which it shall report: (4) (a) The authority shall maintain a publicly available Web site on which it shall report:
      1. A list of all currently certified qualified small businesses and qualified investors;
      2. The total amount of credit it has awarded; and
      3. The total amount of available credit remaining.
    2. This report shall be updated as new small businesses and investors are certified, and as new credits are awarded or the amount of available credit is otherwise adjusted.

HISTORY: Enact. Acts 2014, ch. 102, § 25, effective July 15, 2014; 2018 ch. 199, § 24, effective July 14, 2018.

154.20-240. Annual report by small businesses.

  1. On or before February 1 of the calendar year succeeding the year in which a credit was awarded, and continuing for four (4) years thereafter, a qualified small business that has received a qualified investment shall file an annual report with the authority.
    1. This report shall demonstrate that the small business: (2) (a) This report shall demonstrate that the small business:
      1. Continues to have more than fifty percent (50%) of its assets, operations, and employees in the Commonwealth;
      2. Has at no time received an aggregate amount of qualified investments that has allowed qualified investors to receive more than one million dollars ($1,000,000) in credits; and
      3. Continues to be actively and principally engaged in a qualified activity.
    2. The report shall also provide additional information related to the success of the small business attributable to the investment, including but not limited to:
      1. New jobs created;
      2. Increased sales or other economic activity conducted;
      3. The degree of other private investment attracted; and
      4. Any other information requested by the authority.
  2. If a qualified small business either:
    1. Fails to submit the report mandated by this section in any year; or
    2. Fails to meet any of the criteria listed in subsection (2)(a) of this section at any time during any year of the reporting period; the authority shall notify the department, which shall recapture any portion, or the full amount, of the credit awarded for qualified investments in that qualified small business from the qualified investor that received the credit award or any taxpayer receiving the credit through a valid transfer. Any amounts collected from the recapture shall be deposited in the general fund.
  3. If a qualified small business becomes insolvent and ceases operations at any time before the final required annual report is due, it shall file a written report with the authority attesting to that fact and shall thereafter be exempt from the annual report required by this section, and credits awarded and already claimed for qualified investments in that qualified small business shall not be subject to any recapture. Any credits not claimed as of the date the company became insolvent and ceased operations shall be considered expired and shall not be claimed.

History. Enact. Acts 2014, ch. 102, § 26, effective July 15, 2014; 2020 ch. 76, § 3, effective July 15, 2020.

Compiler's Notes.

The section appears to incorporate a correction from the Reviser of Statutes in the catchline.

Kentucky Investment Fund

154.20-250. Purpose of KRS 154.20-250 to 154.20-284.

The purposes of KRS 154.20-250 to 154.20-284 are to encourage capital investment in the Commonwealth of Kentucky, to encourage the establishment or expansion of small businesses in Kentucky, to provide additional jobs, and to encourage the development of new products and technologies in the state through capital investments. It is the intent of KRS 154.20-250 to 154.20-284 to give investment preference to Kentucky small businesses showing a potential for rapid growth. Insofar as possible, any investment made in a Kentucky small business under the provisions of KRS 154.20-250 to 154.20-284 shall be used by that business to leverage additional capital investments from other sources.

History. Enact. Acts 1998, ch. 414, § 1, effective July 15, 1998; 2018 ch. 171, § 97, effective April 14, 2018; 2019 ch. 151, § 62, effective June 27, 2019.

Legislative Research Commission Notes.

(6/27/2019). Section 85 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 62 of that Act apply retroactively to April 14, 2018.

154.20-253. Definitions for KRS 154.20-250 to 154.20-284. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 414, § 2, effective July 15, 1998; 2000, ch. 300, § 9, effective July 14, 2000) was repealed by Acts 2002, ch. 230, § 41, effective July 15, 2002.

154.20-254. Definitions for KRS 154.20-250 to 154.20-284. [Effective until June 29, 2021]

As used in KRS 154.20-250 to 154.20-284 , unless the context clearly requires otherwise:

  1. “Affiliate” means any person or entity who directly or indirectly, through one (1) or more intermediaries, controls or is controlled by or is under common control with another person or entity;
  2. “Agreement” means an investment fund agreement entered into pursuant to KRS 154.20-255 (5) by the authority and an investment fund manager on behalf of the investment fund, the investment fund manager, and any investor in the investment fund;
  3. “Amended application” means a document submitted by an investment fund manager, in a form acceptable to the authority and on behalf of an investment fund, for the purpose of increasing the aggregate amount of available tax credits;
  4. “Applicant” means any person or entity who has not received approval from the authority as an investment fund manager, but who has submitted or will submit an application to the authority for approval as an investment fund manager;
  5. “Authority” means the Kentucky Economic Development Finance Authority or its designee;
  6. “Cash contribution” means an investment of money by an investor in an investment fund under the terms of KRS 154.20-250 to 154.20-284 ;
  7. “Committed cash contribution” means a legally binding agreement by an investor to make a cash contribution in an amount set forth in a written agreement between an investor and an investment fund;
  8. “Commonwealth” means the Commonwealth of Kentucky;
  9. “Credit” means a nonrefundable credit for investors against state tax liability allocated and granted by the authority pursuant to KRS 154.20-258 for qualified investments made by approved investment funds;
  10. “Entity” means any corporation, limited liability company, business development corporation, partnership, limited partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted;
  11. “Financial institution” means “financial institution” as defined in KRS 136.500(10) and includes savings and loan associations, savings banks, and similar institutions subject to the taxes imposed by KRS 136.290 , 136.300 , or 136.310 ;
  12. “Insurance company” means any insurance company subject to the taxes imposed by KRS 136.320 , 136.330 , or 304.3-270 ;
  13. “Investment fund” means any entity that is organized by an investment fund manager in compliance with applicable state and federal securities laws and regulations, and is approved by the authority to make qualified investments pursuant to KRS 154.20-256 ;
  14. “Investment fund manager” means any person or entity that has been approved by the authority to manage one (1) or more investment funds authorized under the provisions of KRS 154.20-250 to 154.20-284 and is in compliance with all applicable federal and state regulations;
  15. “Investor” means any person or entity, including financial institutions and insurance companies, that is subject to state tax liability and that makes a cash contribution or a committed cash contribution to an investment fund in accordance with the provisions of KRS 154.20-250 to 154.20-284 and has not been convicted of violating any of Kentucky’s tax laws within the past ten (10) years;
  16. “Nonprofit entity” means an investor that is exempt from federal income tax under Section 501(c) of the Internal Revenue Code of 1986, as amended;
  17. “Qualified activity” means any industrial, manufacturing, mining, mining reclamation for economic development, commercial, health care, agricultural enterprise, or agribusiness activity. A “qualified activity” does not include any activity principally engaged in by financial institutions, commercial development companies, credit companies, financial or investment advisors, brokerage or financial firms, other investment funds or investment fund managers, charitable and religious institutions, oil and gas exploration companies, insurance companies, residential housing developers, retail establishments, or any activity that the authority determines in its discretion to be against the public interest, against the purposes of KRS 154.20-250 to 154.20-284 , or in violation of any law;
  18. “Qualified investment” means an investment of money in a small business by an investment fund, in compliance with applicable state and federal securities laws and regulations, seeking a financial return based upon that consideration. In consideration for the qualified investment, the investment fund shall receive an equity interest in the small business, such as a general or limited partnership interest, common or preferred stock with or without voting rights and without regard to seniority position, forms of subordinate or convertible unsecured debt, or both, with warrants, rights, or other means of equity conversion attached; and
  19. “Small business” means any entity which at the time a qualified investment is made by an investment fund:
      1. Has a net worth of five million dollars ($5,000,000) or less or net income after federal income taxes for each of the two (2) preceding fiscal years of three million dollars ($3,000,000) or less; or (a) 1. Has a net worth of five million dollars ($5,000,000) or less or net income after federal income taxes for each of the two (2) preceding fiscal years of three million dollars ($3,000,000) or less; or
      2. Is a knowledge-based business, as shall be prescribed by the commissioner of the Department of Commercialization and Innovation, and has a net worth of ten million dollars ($10,000,000) or less;
    1. Is actively and principally engaged in a qualified activity within the Commonwealth, or will be actively and principally engaged in a qualified activity within the Commonwealth after the receipt of a qualified investment by an investment fund;
    2. Has no more than one hundred (100) employees; and
    3. Has more than fifty percent (50%) of its assets, operations, and employees located in Kentucky.

History. Enact. Acts 2002, ch. 230, § 17, effective July 15, 2002; 2005, ch. 181, § 13, effective June 20, 2005; 2006, ch. 149, § 215, July 12, 2006; 2006, ch. 210, § 9, effective July 12, 2006.

Legislative Research Commission Note.

(7/12/2006). This section was amended by 2006 Ky. Acts chs. 149 and 210, which do not appear to be in conflict and have been codified together.

154.20-254. Definitions for KRS 154.20-250 to 154.20-284. [Effective June 29, 2021]

As used in KRS 154.20-250 to 154.20-284 , unless the context clearly requires otherwise:

  1. “Affiliate” means any person or entity who directly or indirectly, through one (1) or more intermediaries, controls or is controlled by or is under common control with another person or entity;
  2. “Agreement” means an investment fund agreement entered into pursuant to KRS 154.20-255 (5) by the authority and an investment fund manager on behalf of the investment fund, the investment fund manager, and any investor in the investment fund;
  3. “Amended application” means a document submitted by an investment fund manager, in a form acceptable to the authority and on behalf of an investment fund, for the purpose of increasing the aggregate amount of available tax credits;
  4. “Applicant” means any person or entity who has not received approval from the authority as an investment fund manager, but who has submitted or will submit an application to the authority for approval as an investment fund manager;
  5. “Authority” means the Kentucky Economic Development Finance Authority or its designee;
  6. “Cash contribution” means an investment of money by an investor in an investment fund under the terms of KRS 154.20-250 to 154.20-284 ;
  7. “Committed cash contribution” means a legally binding agreement by an investor to make a cash contribution in an amount set forth in a written agreement between an investor and an investment fund;
  8. “Commonwealth” means the Commonwealth of Kentucky;
  9. “Credit” means a nonrefundable credit for investors against state tax liability allocated and granted by the authority pursuant to KRS 154.20-258 for qualified investments made by approved investment funds;
  10. “Entity” means any corporation, limited liability company, business development corporation, partnership, limited partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted;
  11. “Financial institution” means “financial institution” as defined in KRS 136.500(10) and includes savings and loan associations, savings banks, and similar institutions subject to the taxes imposed by KRS 136.290 , 136.300 , or 136.310 ;
  12. “Insurance company” means any insurance company subject to the taxes imposed by KRS 136.320 , 136.330 , or 304.3-270 ;
  13. “Investment fund” means any entity that is organized by an investment fund manager in compliance with applicable state and federal securities laws and regulations, and is approved by the authority to make qualified investments pursuant to KRS 154.20-256 ;
  14. “Investment fund manager” means any person or entity that has been approved by the authority to manage one (1) or more investment funds authorized under the provisions of KRS 154.20-250 to 154.20-284 and is in compliance with all applicable federal and state regulations;
  15. “Investor” means any person or entity, including financial institutions and insurance companies, that is subject to state tax liability and that makes a cash contribution or a committed cash contribution to an investment fund in accordance with the provisions of KRS 154.20-250 to 154.20-284 and has not been convicted of violating any of Kentucky’s tax laws within the past ten (10) years;
  16. “Knowledge-based” has the same meaning as in Section 131 of this Act;
  17. “Nonprofit entity” means an investor that is exempt from federal income tax under Section 501(c) of the Internal Revenue Code of 1986, as amended;
  18. “Qualified activity” has the same meaning as in Section 109 of this Act;
  19. “Qualified investment” means an investment of at least ten thousand dollars ($10,000) in a small business by an investment fund, in compliance with applicable state and federal securities laws and regulations, seeking a financial return based upon that consideration. In consideration for the qualified investment, the investment fund shall receive an equity interest in the small business, such as a general or limited partnership interest, common or preferred stock with or without voting rights and without regard to seniority position, forms of subordinate or convertible unsecured debt, or both, with warrants, rights, or other means of equity conversion attached; and
  20. “Small business” means any entity which at the time a qualified investment is made by an investment fund:
      1. Has a net worth of five million dollars ($5,000,000) or less or net income after federal income taxes for each of the two (2) preceding fiscal years of three million dollars ($3,000,000) or less; or (a) 1. Has a net worth of five million dollars ($5,000,000) or less or net income after federal income taxes for each of the two (2) preceding fiscal years of three million dollars ($3,000,000) or less; or
      2. Is a knowledge-based business, as shall be prescribed by the commissioner of the Department of Commercialization and Innovation, and has a net worth of ten million dollars ($10,000,000) or less;
    1. Is actively and principally engaged in a qualified activity within the Commonwealth, or will be actively and principally engaged in a qualified activity within the Commonwealth after the receipt of a qualified investment by an investment fund;
    2. Has no more than one hundred (100) employees; and
    3. Has more than fifty percent (50%) of its assets, operations, and employees located in Kentucky.

HISTORY: Enact. Acts 2002, ch. 230, § 17, effective July 15, 2002; 2005, ch. 181, § 13, effective June 20, 2005; 2006, ch. 149, § 215, July 12, 2006; 2006, ch. 210, § 9, effective July 12, 2006; 2021 ch. 185, § 112, effective June 29, 2021.

154.20-255. Tax credits available to investment fund — Application for approval as manager — Requirements for investment fund — Agreement — Total qualified investments made by fund. [Effective until June 29, 2021]

    1. The total amount of credits available to any single investment fund awarded credits under KRS 154.20-250 to 154.20-284 shall not exceed, in aggregate, eight million dollars ($8,000,000) for all investors and all taxable years. (1) (a) The total amount of credits available to any single investment fund awarded credits under KRS 154.20-250 to 154.20-284 shall not exceed, in aggregate, eight million dollars ($8,000,000) for all investors and all taxable years.
    2. The total tax credits available for all investors in all investment funds awarded under KRS 154.20-250 to 154.20-284, and all qualified investors awarded under KRS 154.20-230 to 154.20-240 , shall not exceed a total of forty million dollars ($40,000,000) for all years prior to December 31, 2020.
    3. The total credit available for all investors in all investment funds awarded under KRS 154.20-250 to 154.20-284 shall not exceed a total of three million dollars ($3,000,000) in any calendar year beginning on or after January 1, 2021.
    4. The authority shall not grant preliminary or final approval for applications received for the Kentucky Investment Fund Act on or after January 1, 2019, but may resume approving applications received on or after January 1, 2021.
  1. A person or entity seeking to be approved as an investment fund manager for the operation of one (1) or more investment funds shall make written application to the authority pursuant to KRS 154.20-256 , in addition to complying with applicable state and federal securities laws and regulations.
  2. Prior to the granting of any tax credits to investors of an investment fund, the committed cash contributions to an investment fund shall be not less than five hundred thousand dollars ($500,000).
  3. An investment fund shall have no less than four (4) investors, and no investor or investment fund manager, including their immediate family members, as defined in KRS 164.6011(6), and affiliates may own or have a capital interest in more than forty percent (40%) of the investment fund’s capitalization.
  4. Subsequent to approval of the investment fund and the investment fund manager, the authority and the investment fund manager, on behalf of itself and any investors in the investment fund, shall enter into an agreement with respect to the investment fund. The terms and provisions of each agreement shall be determined by negotiations between the authority and the investment fund manager. The effective date of the agreement shall be the date of approval of the investment fund and the investment fund manager by the authority. If an investment fund manager fails to comply with any of the obligations of the agreement, the authority may, at its option, do any one (1) or more of the following:
    1. Suspend the availability of the credits;
    2. Pursue any remedy provided under the agreement, including termination of the agreement; or
    3. Pursue any other remedy at law to which it may be entitled.
  5. Any investor shall be entitled to a tax credit as a result of its investment in an investment fund as provided in KRS 154.20-258 .
  6. Total qualified investments made by an investment fund, including initial and subsequent investments made by an investment fund, in any single small business using approved qualified investments, shall not exceed thirty percent (30%) of the committed cash contributions to the investment fund. This restriction shall not apply to investments of money by the investment fund that are not qualified investments.
  7. The provisions of this section shall not prohibit an investment fund from investing in a business that is not a small business, including a business that is located outside of the Commonwealth; however, such investments shall not be eligible for the tax credit set forth in KRS 154.20-258 .

History. Enact. Acts 2002, ch. 230, § 18, effective July 15, 2002; 2014, ch. 102, § 27, effective July 15, 2014; 2017 ch. 80, § 8, effective June 29, 2017; 2018 ch. 207, § 99, effective July 14, 2018.

154.20-255. Tax credits available to investment fund — Application for approval as manager — Requirements for investment fund — Agreement — Total qualified investments made by fund. [Effective June 29, 2021]

    1. The total amount of credits available to any single investment fund awarded credits under KRS 154.20-250 to 154.20-284 shall not exceed, in aggregate: (1) (a) The total amount of credits available to any single investment fund awarded credits under KRS 154.20-250 to 154.20-284 shall not exceed, in aggregate:
      1. For any calendar year begining prior to January 1, 2022, eight million dollars ($8,000,000) for all investors and all taxable years; and
      2. In any calendar year beginning on or after January 1, 2022, one million dollars ($1,000,000).
    2. The total credit available for all investors in all investment funds awarded under KRS 154.20-250 to 154.20-284 shall not exceed a total of three million dollars ($3,000,000) in any calendar year beginning on or after January 1, 2021.
  1. A person or entity seeking to be approved as an investment fund manager for the operation of one (1) or more investment funds shall make written application to the authority pursuant to KRS 154.20-256 , in addition to complying with applicable state and federal securities laws and regulations.
  2. Prior to the granting of any tax credits to investors of an investment fund, the committed cash contributions to an investment fund shall be not less than five hundred thousand dollars ($500,000).
    1. An investment fund shall have no less than four (4) investors, and no investor or investment fund manager, including their closely-related family members, and affiliates may own or have a capital interest in more than forty percent (40%) of the investment fund’s capitalization. (4) (a) An investment fund shall have no less than four (4) investors, and no investor or investment fund manager, including their closely-related family members, and affiliates may own or have a capital interest in more than forty percent (40%) of the investment fund’s capitalization.
    2. As used in this subsection, “closely-related” means any of the following in relation to the investor, the investor’s spouse, the fund manager, or the fund manager’s spouse:
      1. Parents or grandparents;
      2. Children or their spouses; or
      3. Siblings or their spouses.
  3. Subsequent to approval of the investment fund and the investment fund manager, the authority and the investment fund manager, on behalf of itself and any investors in the investment fund, shall enter into an agreement with respect to the investment fund. The terms and provisions of each agreement shall be determined by negotiations between the authority and the investment fund manager. The effective date of the agreement shall be the date of approval of the investment fund and the investment fund manager by the authority. If an investment fund manager fails to comply with any of the obligations of the agreement, the authority may, at its option, do any one (1) or more of the following:
    1. Suspend the availability of the credits;
    2. Pursue any remedy provided under the agreement, including termination of the agreement; or
    3. Pursue any other remedy at law to which it may be entitled.
  4. Any investor shall be entitled to a tax credit as a result of its investment in an investment fund as provided in KRS 154.20-258 .
  5. Total qualified investments made by an investment fund, including initial and subsequent investments made by an investment fund, in any single small business using approved qualified investments, shall not exceed thirty percent (30%) of the committed cash contributions to the investment fund. This restriction shall not apply to investments of money by the investment fund that are not qualified investments.
  6. The provisions of this section shall not prohibit an investment fund from investing in a business that is not a small business, including a business that is located outside of the Commonwealth; however, such investments shall not be eligible for the tax credit set forth in KRS 154.20-258 .

HISTORY: Enact. Acts 2002, ch. 230, § 18, effective July 15, 2002; 2014, ch. 102, § 27, effective July 15, 2014; 2017 ch. 80, § 8, effective June 29, 2017; 2018 ch. 207, § 99, effective July 14, 2018; 2021 ch. 185, § 113, effective June 29, 2021.

154.20-256. Approval of investment funds and managers — Application — Documents — Powers of authority — Purpose of investment fund — Criteria for approval — Disclosure form — Operation of multiple funds — Loss of unused credits — Confidentiality — Standards. [Effective until June 29, 2021]

  1. The approval of investment funds and investment fund managers shall be made pursuant to an application to the authority submitted by a proposed fund manager on behalf of a proposed investment fund and shall include:
    1. The name, address, and Social Security number or employer identification number, as applicable, of the investment fund manager and the investment fund;
    2. The applicant’s business plan, including the minimum and maximum amount of cash contributions to be solicited for the investment fund, and strategy for operation of the proposed investment fund;
    3. The amount of credits the investment fund seeks for making qualified investments;
    4. The applicant fund manager’s relevant experience and demonstrated ability to manage the proposed investment fund;
    5. The location and account number of a bank account that has been established for use by the investment fund;
    6. The exemption or registration provision that is being relied upon or intended to be relied upon by both the investment fund and the investment fund manager to permit this offering of securities and the activity of the investment fund manager in relation to the offering, in compliance with applicable state and federal securities laws and regulations;
    7. A representation that the investment fund and the investment fund manager are and shall remain in compliance with applicable state and federal securities regulations; and
    8. Any additional information the authority deems necessary.
  2. The applicant shall include copies of the following documents as attachments to the application:
    1. The disclosure documents used in connection with the offering and investment in the investment fund;
    2. The disclosure documents provided to each investor which state that:
      1. The investor has certain rights, responsibilities, and liabilities pursuant to KRS 154.20-250 to 154.20-284 ;
      2. The Commonwealth shall be immune from liability for any losses or damages investors, investment funds, or investment fund managers may incur pursuant to KRS 154.20-279 ;
      3. No tax credit shall be available under the provisions of KRS 154.20-250 to 154.20-284 until the investment fund and the investment fund manager have complied with applicable state and federal securities laws and regulations and have been approved by the authority, and an agreement has been executed, and the terms of that agreement have been disclosed in writing to each investor; and
      4. Investors shall lose all rights to any unused credits allocated to an investment fund that does not make a qualified investment within one (1) year of the date of the agreement with the authority or within any one (1) year period thereafter through the end of the term of the agreement. An applicant soliciting cash contributions for the initial capitalization of an investment fund, or an investment fund manager soliciting additional cash contributions for an approved investment fund, shall disclose in advance and in writing to each potential investor those items described in this subsection in addition to any other items required by law or by agreement.
  3. The authority shall have, in addition to its other powers provided in this chapter and as otherwise provided by law, all powers and authority, not explicitly prohibited by statute, that are necessary or convenient to carry out and effectuate the purposes, objectives, and provisions of KRS 154.20-250 to 154.20-284 , including but not limited to power to:
    1. Require consultation, advisory, and legal fees and other expenses the authority deems necessary or incident to the preparation, adoption, implementation, modification, or enforcement of the terms of any agreement or other document, or otherwise necessary or incident to any transaction;
    2. Require the investment fund manager to pay these fees and expenses directly to the person providing such consultation, advisory, legal, or other services on behalf of the authority; and
    3. Impose and collect fees and charges in connection with any transaction and provide for reasonable penalties for delinquent payment of fees or charges. Any payments made by an investment fund manager pursuant to this subsection may be passed on to the investment fund manager’s investment fund.
  4. An investment fund’s stated purpose shall be primarily to encourage and assist in the creation, development, or expansion of small businesses located in Kentucky.
  5. The criteria considered by the authority for the approval of investment fund managers and the maximum amount of credits allocated to the investors of an investment fund shall include but not be limited to:
    1. Compliance by those persons with applicable state and federal securities laws and regulations;
    2. A review of the application;
    3. The investment strategy for the investment fund;
    4. The relevant experience of the applicant fund manager or, if the applicant fund manager is an entity, the applicant’s management;
    5. The applicant’s demonstrated ability to manage the investment fund; and
    6. The amount of credits requested by the investment fund and the total amount of credits which may be granted to investors under KRS 154.20-258 .
  6. Following the making of a qualified investment, the investment fund manager shall within sixty (60) days file a disclosure form with the authority detailing the following information:
    1. The name and address of the small business in which the qualified investment was made;
    2. The amount of the qualified investment; and
    3. The name, address, and Social Security number or employer identification number, as may be applicable, of each investor and the amount of credit allocated to each investor by virtue of the investor’s proportional ownership interest in the qualified investment.
  7. An investment fund manager and its affiliates may operate no more than three (3) separate investment funds pursuant to separate applications submitted to and approved by the authority, provided the investment fund manager is in compliance with any applicable state and federal securities laws and regulations as evidenced by a written statement to the authority by an investment fund manager to that effect.
  8. An investment fund manager seeking to expand a previously approved investment fund shall submit to the authority an amended application in a form acceptable to the authority.
  9. An investment fund shall lose all unused credits that are available to its investors if the investment fund does not make a qualified investment within one (1) year of the date of the agreement or within any one (1) year period thereafter through the end of the term of the agreement.
  10. The contents of the information form required under subsections (1), (2), and (6) of this section shall be treated by the authority and by the Department of Revenue as confidential and shall not be considered public records under KRS 61.870 to 61.884 .
  11. The authority, in consultation with the Department of Revenue, may establish additional procedures and standards, as it deems necessary for the approval of investment funds and investment fund managers, and for the allocation and granting of investment tax credits by the promulgation of administrative regulations in accordance with the provisions of KRS Chapter 13A.

History. Enact. Acts 2002, ch. 230, § 19, effective July 15, 2002; 2005, ch. 85, § 570, effective June 20, 2005.

154.20-256. Approval of investment funds and managers — Application — Documents — Powers of authority — Purpose of investment fund — Criteria for approval — Disclosure form — Operation of multiple funds — Loss of unused credits — Confidentiality — Standards. [Effective June 29, 2021]

  1. The approval of investment funds and investment fund managers shall be made pursuant to an application to the authority submitted by a proposed fund manager on behalf of a proposed investment fund and shall include:
    1. The name, address, and Social Security number or employer identification number, as applicable, of the investment fund manager and the investment fund;
    2. The applicant’s business plan, including the minimum and maximum amount of cash contributions to be solicited for the investment fund, and strategy for operation of the proposed investment fund;
    3. The amount of credits the investment fund seeks for making qualified investments;
    4. The applicant fund manager’s relevant experience and demonstrated ability to manage the proposed investment fund;
    5. The location and account number of a bank account that has been established for use by the investment fund;
    6. The exemption or registration provision that is being relied upon or intended to be relied upon by both the investment fund and the investment fund manager to permit this offering of securities and the activity of the investment fund manager in relation to the offering, in compliance with applicable state and federal securities laws and regulations;
    7. A representation that the investment fund and the investment fund manager are and shall remain in compliance with applicable state and federal securities regulations; and
    8. Any additional information the authority deems necessary.
  2. The applicant shall include copies of the following documents as attachments to the application:
    1. The disclosure documents used in connection with the offering and investment in the investment fund;
    2. The disclosure documents provided to each investor which state that:
      1. The investor has certain rights, responsibilities, and liabilities pursuant to KRS 154.20-250 to 154.20-284 ;
      2. The Commonwealth shall be immune from liability for any losses or damages investors, investment funds, or investment fund managers may incur pursuant to KRS 154.20-279 ;
      3. No tax credit shall be available under the provisions of KRS 154.20-250 to 154.20-284 until the investment fund and the investment fund manager have complied with applicable state and federal securities laws and regulations and have been approved by the authority, and an agreement has been executed, and the terms of that agreement have been disclosed in writing to each investor; and
      4. Investors shall lose all rights to any unused credits allocated to an investment fund that does not make a qualified investment within one (1) year of the date of the agreement with the authority or within any one (1) year period thereafter through the end of the term of the agreement. An applicant soliciting cash contributions for the initial capitalization of an investment fund, or an investment fund manager soliciting additional cash contributions for an approved investment fund, shall disclose in advance and in writing to each potential investor those items described in this subsection in addition to any other items required by law or by agreement.
  3. The authority shall have, in addition to its other powers provided in this chapter and as otherwise provided by law, all powers and authority, not explicitly prohibited by statute, that are necessary or convenient to carry out and effectuate the purposes, objectives, and provisions of KRS 154.20-250 to 154.20-284 , including but not limited to power to:
    1. Require consultation, advisory, and legal fees and other expenses the authority deems necessary or incident to the preparation, adoption, implementation, modification, or enforcement of the terms of any agreement or other document, or otherwise necessary or incident to any transaction;
    2. Require the investment fund manager to pay these fees and expenses directly to the person providing such consultation, advisory, legal, or other services on behalf of the authority; and
    3. Impose and collect fees and charges in connection with any transaction and provide for reasonable penalties for delinquent payment of fees or charges. Any payments made by an investment fund manager pursuant to this subsection may be passed on to the investment fund manager’s investment fund.
  4. An investment fund’s stated purpose shall be primarily to encourage and assist in the creation, development, or expansion of small businesses located in Kentucky.
  5. The criteria considered by the authority for the approval of investment fund managers and the maximum amount of credits allocated to the investors of an investment fund shall include but not be limited to:
    1. Compliance by those persons with applicable state and federal securities laws and regulations;
    2. A review of the application;
    3. The investment strategy for the investment fund;
    4. The relevant experience of the applicant fund manager or, if the applicant fund manager is an entity, the applicant’s management;
    5. The applicant’s demonstrated ability to manage the investment fund; and
    6. The amount of credits requested by the investment fund and the total amount of credits which may be granted to investors under KRS 154.20-258 .
  6. Following the making of a qualified investment, the investment fund manager shall within eighty (80) days file a disclosure form with the authority detailing the following information:
    1. The name and address of the small business in which the qualified investment was made;
    2. The amount of the qualified investment; and
    3. The name, address, and Social Security number or employer identification number, as may be applicable, of each investor and the amount of credit allocated to each investor by virtue of the investor’s proportional ownership interest in the qualified investment.
  7. An investment fund manager and its affiliates may operate no more than three (3) separate investment funds pursuant to separate applications submitted to and approved by the authority, provided the investment fund manager is in compliance with any applicable state and federal securities laws and regulations as evidenced by a written statement to the authority by an investment fund manager to that effect.
  8. An investment fund manager seeking to expand a previously approved investment fund shall submit to the authority an amended application in a form acceptable to the authority.
  9. An investment fund shall lose all unused credits that are available to its investors if the investment fund does not make a qualified investment within one (1) year of the date of the agreement or within any one (1) year period thereafter through the end of the term of the agreement.
  10. The contents of the information form required under subsections (1), (2), and (6) of this section shall be treated by the authority and by the Department of Revenue as confidential and shall not be considered public records under KRS 61.870 to 61.884 .
  11. The authority, in consultation with the Department of Revenue, may establish additional procedures and standards, as it deems necessary for the approval of investment funds and investment fund managers, and for the allocation and granting of investment tax credits by the promulgation of administrative regulations in accordance with the provisions of KRS Chapter 13A.

HISTORY: Enact. Acts 2002, ch. 230, § 19, effective July 15, 2002; 2005, ch. 85, § 570, effective June 20, 2005; 2021 ch. 185, § 114, effective June 29, 2021.

154.20-257. Approval of investment funds, cash contributions, and investment fund managers — Tax credits authorized by KRS 154.20-263 — Agreement between authority and investment fund manager — Transfer of funds — Schedule for investment — Prohibition against awarding of tax credits and approval of investment funds or investment fund managers after specific dates. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 414, § 3, effective July 15, 1998; 2000, ch. 300, § 10, effective July 14, 2000) was repealed by Acts 2002, ch. 230, § 41, effective July 15, 2002. For present law, see KRS 154.20-256 .

154.20-258. Investor entitled to credit — Amount — Carry-forward — Liabilities — Transferability — Notification of Department of Revenue — Additional credits — Maximum credits. [Effective until June 29, 2021]

  1. An investor shall be entitled to a nonrefundable credit equal to forty percent (40%) of the investor’s proportional ownership share of all qualified investments made by its investment fund and verified by the authority. The aggregate tax credit available to any investor shall not exceed forty percent (40%) of the cash contribution made by the investor to its investment fund. The credit may be applied against:
    1. Both the income tax imposed by KRS 141.020 or 141.040 , and the limited liability entity tax imposed by KRS 141.040 1, with the ordering of the credits as provided in KRS 141.0205 ;
    2. The insurance taxes imposed by KRS 136.320 , 136.330 , and 304.3-270 ; and
    3. The taxes on financial institutions imposed by KRS 136.300 , 136.310 , and 136.505 .
  2. The tax credit amount that may be claimed by an investor in any tax year shall not exceed fifty percent (50%) of the initial aggregate credit amount approved by the authority for the investment fund which would be proportionally available to the investor. An investor may first claim the credit granted in subsection (1) of this section in the year following the year in which the credit is granted.
  3. If the credit amount that may be claimed in any tax year, as determined under subsections (1) and (2) of this section, exceeds the investor’s combined tax liabilities against which the credit may be claimed for that year, the investor may carry the excess tax credit forward until the tax credit is used, but the carry-forward of any excess tax credit shall not increase the fifty percent (50%) limitation established by subsection (2) of this section. Any tax credits not used within fifteen (15) years of the approval by the authority of the aggregate tax credit amount available to the investor shall be lost.
  4. The tax credits allowed by this section shall not apply to any liability an investor may have for interest, penalties, past due taxes, or any other additions to the investor’s tax liability. The holder of the tax credit shall assume any and all liabilities and responsibilities of the credit.
  5. The tax credits allowed by this section are not transferable, except that:
    1. A nonprofit entity may transfer, for some or no consideration, any or all of the credits it receives under this section and any related benefits, rights, responsibilities, and liabilities. Within thirty (30) days of the date of any transfer of credits pursuant to this subsection, the nonprofit entity shall notify the authority and the Department of Revenue of:
      1. The name, address, and Social Security number or employer identification number, as may be applicable, of the party to which the nonprofit entity transferred its credits;
      2. The amount of credits transferred; and
      3. Any additional information the authority or the Department of Revenue deems necessary.
    2. If an investor is an entity and is a party to a merger, acquisition, consolidation, dissolution, liquidation, or similar corporate reorganization, the tax credits shall pass through to the investor’s successor.
    3. If an individual investor dies, the tax credits shall pass to the investor’s estate or beneficiaries in a manner consistent with the transfer of ownership of the investor’s interest in the investment fund.
  6. The tax credit amount that may be claimed by an investor shall reflect only the investor’s participation in qualified investments properly reported to the authority by the investment fund manager. No tax credit authorized by this section shall become effective until the Department of Revenue receives notification from the authority that includes:
    1. A statement that a qualified investment has been made that is in compliance with KRS 154.20-250 to 154.20-284 and all applicable regulations; and
    2. A list of each investor in the investment fund that owns a portion of the small business in which a qualified investment has been made by virtue of an investment in the investment fund, and each investor’s amount of credit granted to the investor for each qualified investment. The authority shall, within sixty (60) days of approval of credits, notify the Department of Revenue of the information required pursuant to this subsection and notify each investor of the amount of credits granted to that investor, and the year the credits may first be claimed.
  7. After the date on which investors in an investment fund have cumulatively received an amount of credits equal to the amount of credits allocated to the investment fund by the authority, no investor shall receive additional credits by virtue of its investment in that investment fund unless the investment fund’s allocation of credits is increased by the authority pursuant to an amended application.
  8. The maximum amount of credits to be authorized by the authority shall be three million dollars ($3,000,000) for each of fiscal years 2002-03 and 2003-04.

History. Enact. Acts 2002, ch. 230, § 20, effective July 15, 2002; 2005, ch. 85, § 571, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 42, effective June 28, 2006; 2019 ch. 151, § 63, effective June 27, 2019.

Legislative Research Commission Notes.

(6/27/2019). Section 85 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 63 of that Act apply retroactively to April 14, 2018.

(4/27/2018). KRS 136.070 was repealed in 2018 Ky. Acts chs. 171 and 207, but a conforming amendment was not made to this statute to address the reference it contains to KRS 136.070 . The Reviser of Statutes has determined that making such a conforming change during the 2018 codification exceeds the permissible correction of manifest clerical or typographical errors under KRS 7.136(1)(h). Therefore, the reference to KRS 136.070 remains unchanged and would have to be changed pursuant to future legislative action.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.20-258. Investor entitled to credit — Amount — Carry-forward — Liabilities — Transferability — Notification of Department of Revenue — Additional credits — Maximum credits. [Effective June 29, 2021]

    1. For qualified investments made prior to January 1, 2022, an investor shall be entitled to a nonrefundable credit equal to forty percent (40%) of the investor’s proportional ownership share of all qualified investments made by its investment fund and verified by the authority. The aggregate tax credit available to any investor shall not exceed forty percent (40%) of the cash contribution made by the investor to its investment fund. (1) (a) For qualified investments made prior to January 1, 2022, an investor shall be entitled to a nonrefundable credit equal to forty percent (40%) of the investor’s proportional ownership share of all qualified investments made by its investment fund and verified by the authority. The aggregate tax credit available to any investor shall not exceed forty percent (40%) of the cash contribution made by the investor to its investment fund.
    2. For qualified investments made on or after January 1, 2022, an investor shall be entitled to a nonrefundable credit not to exceed twenty-five percent (25%) of the investor’s proportional ownership share of all qualified investments made by its investment fund and verified by the authority.
    3. The credit may be applied against:
      1. Both the income tax imposed by KRS 141.020 or 141.040 , and the limited liability entity tax imposed by KRS 141.040 1, with the ordering of the credits as provided in KRS 141.0205 ;
      2. The insurance taxes imposed by KRS 136.320 , 136.330 , and 304.3-270 ; and
      3. The taxes on financial institutions imposed by KRS 136.300 , 136.310 , and 136.505 .
  1. The tax credit amount that may be claimed by an investor in any tax year shall not exceed fifty percent (50%) of the initial aggregate credit amount approved by the authority for the investment fund which would be proportionally available to the investor. An investor may first claim the credit granted in subsection (1) of this section in the year following the year in which the credit is granted.
  2. If the credit amount that may be claimed in any tax year, as determined under subsections (1) and (2) of this section, exceeds the investor’s combined tax liabilities against which the credit may be claimed for that year, the investor may carry the excess tax credit forward until the tax credit is used, but the carry-forward of any excess tax credit shall not increase the fifty percent (50%) limitation established by subsection (2) of this section. Any tax credits not used within fifteen (15) years of the approval by the authority of the aggregate tax credit amount available to the investor shall be lost.
  3. The tax credits allowed by this section shall not apply to any liability an investor may have for interest, penalties, past due taxes, or any other additions to the investor’s tax liability. The holder of the tax credit shall assume any and all liabilities and responsibilities of the credit.
  4. The tax credits allowed by this section are not transferable, except that:
    1. A nonprofit entity may transfer, for some or no consideration, any or all of the credits it receives under this section and any related benefits, rights, responsibilities, and liabilities. Within thirty (30) days of the date of any transfer of credits pursuant to this subsection, the nonprofit entity shall notify the authority and the Department of Revenue of:
      1. The name, address, and Social Security number or employer identification number, as may be applicable, of the party to which the nonprofit entity transferred its credits;
      2. The amount of credits transferred; and
      3. Any additional information the authority or the Department of Revenue deems necessary.
    2. If an investor is an entity and is a party to a merger, acquisition, consolidation, dissolution, liquidation, or similar corporate reorganization, the tax credits shall pass through to the investor’s successor.
    3. If an individual investor dies, the tax credits shall pass to the investor’s estate or beneficiaries in a manner consistent with the transfer of ownership of the investor’s interest in the investment fund.
  5. The tax credit amount that may be claimed by an investor shall reflect only the investor’s participation in qualified investments properly reported to the authority by the investment fund manager. No tax credit authorized by this section shall become effective until the Department of Revenue receives notification from the authority that includes:
    1. A statement that a qualified investment has been made that is in compliance with KRS 154.20-250 to 154.20-284 and all applicable regulations; and
    2. A list of each investor in the investment fund that owns a portion of the small business in which a qualified investment has been made by virtue of an investment in the investment fund, and each investor’s amount of credit granted to the investor for each qualified investment. The authority shall, within sixty (60) days of approval of credits, notify the Department of Revenue of the information required pursuant to this subsection and notify each investor of the amount of credits granted to that investor, and the year the credits may first be claimed.
  6. After the date on which investors in an investment fund have cumulatively received an amount of credits equal to the amount of credits allocated to the investment fund by the authority, no investor shall receive additional credits by virtue of its investment in that investment fund unless the investment fund’s allocation of credits is increased by the authority pursuant to an amended application.

HISTORY: Enact. Acts 2002, ch. 230, § 20, effective July 15, 2002; 2005, ch. 85, § 571, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 42, effective June 28, 2006; 2019 ch. 151, § 63, effective June 27, 2019; 2021 ch. 185, § 115, effective June 29, 2021.

154.20-259. Information that applicant must disclose to authority in application — Confidentiality of applications — Power of authority — Purpose of investment funds — Criteria for approval of investment fund managers — Authority for administrative regulations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 414, § 4, effective July 15, 1998; 2000, ch. 300, § 11, effective July 14, 2000) was repealed by Acts 2002, ch. 230, § 41, effective July 15, 2002. For present law, see KRS 154.20-256 .

154.20-260. Claim of credit on tax return — Confidentiality.

  1. To receive the credit provided by KRS 154.20-258 , an investor shall claim the credit on the investor’s annual state tax returns in the manner prescribed by the Department of Revenue.
  2. The contents of an investor’s filings under subsection (1) of this section shall be treated by the authority and by the Department of Revenue as confidential and shall not be considered public records under the Kentucky Open Records Act, KRS 61.870 to 61.884 .

History. Enact. Acts 2002, ch. 230, § 21, effective July 15, 2002; 2005, ch. 85, § 572, effective June 20, 2005.

154.20-261. Fund manager’s business office — Initial capitalization, qualified investments, and other regulations governing fund — Written disclosure to investors required — Limitation of Commonwealth’s liability. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 414, § 5, effective July 15, 1998; 2000, ch. 300, § 12, effective July 14, 2000) was repealed by Acts 2002, ch. 230, § 41, effective July 15, 2002.

154.20-262. Penalties and interest — Liability of investors — Powers and duties of Department of Revenue.

  1. An investment fund that violates the provisions of KRS 154.20-250 to 154.20-284 shall pay to the State Treasurer a penalty in an amount equal to the amount of all credits claimed by the investors when these credits are determined to be derived from unqualified investments, plus interest at the rate of two percent (2%) per month, compounded monthly, from the date the credits were taken. If the investment fund fails to pay the penalty and interest in full as required by the Department of Revenue, each investor shall be personally liable to the Department of Revenue for that investor’s share of the unpaid penalty, which shall be determined by the amount of credits received and utilized by the investor and all applicable interest. Any payment of unpaid penalty by an investor shall be included with the investor’s state tax return for the period in which the failure or violation occurred. The commissioner of the Department of Revenue shall give notice in writing to the authority, the investment fund manager, and the investors of any penalties imposed. The commissioner of the Department of Revenue may abate any imposed penalty upon written request, if the investment fund manager establishes reasonable cause for the failure to make qualified investments in small businesses under the provisions of KRS 154.20-250 to 154.20-284 , or to otherwise comply with the provisions of KRS 154.20-250 to 154.20-284. The State Treasurer shall deposit any amounts received pursuant to this section in the Commonwealth’s general fund.
  2. The administration of this section shall be the responsibility of the Department of Revenue.

History. Enact. Acts 2002, ch. 230, § 22, effective July 15, 2002; 2005, ch. 85, § 573, effective June 20, 2005.

154.20-263. Investor entitled to nonrefundable tax credit against income tax or corporation license tax — Authority to carry excess tax credit forward — Tax credits not transferable and not applicable to interest, penalties, or other additions to investor’s tax liability. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 414, § 6, effective July 15, 1998; 2000, ch. 300, § 13, effective July 14, 2000) was repealed by Acts 2002, ch. 230, § 41, effective July 15, 2002. For present law, see KRS 154.20-258 .

154.20-264. Annual report by investment fund manager — Status report by authority — Confidentiality — Fee.

  1. Each investment fund manager shall file an annual report with the commissioner of the Department of Revenue and with the authority, on or before February 15 of each year during which it manages an investment fund. This report shall include information that the authority prescribes from time to time, including but not limited to the following:
    1. For each small business in which qualified investments are made by the investment fund during the reporting period, the name and address of the small business, the amount of qualified investments made by the investment fund, the job creation anticipated and achieved by the small business, and new products and technologies being developed by the small business;
    2. An affidavit prepared by the investment fund manager or, if the investment fund is an entity, by an authorized officer, partner, trustee, member, or manager of the investment fund management firm that states:
      1. At the time of each qualified investment, each small business qualifies as a small business under the provisions of KRS 154.20-250 to 154.20-284 ;
      2. The name and address of each investor, and the amount of cash contribution to the investment fund of each investor who is entitled to the credits; and
      3. The continued compliance by the investment fund and the investment fund manager with all applicable state and federal securities laws and regulations.
  2. The authority shall provide an annual written status report to the standing Appropriations and Revenue Committee of each house or to the Interim Joint Committee on Appropriations and Revenue, as appropriate, concerning the activities of the Kentucky investment fund for each fiscal year beginning with the fiscal year ended July 30, 2003. On or before November 1 of each year, the authority shall make an annual report for the preceding fiscal year to the Governor and the Legislative Research Commission.The annual report shall include but not be limited to the following information:
    1. The total number of investors and the aggregate amount of committed cash contributions to all investment funds, categorized by the types of business entities through which investors conduct business and the geographical distribution of investors, including the area development districts;
    2. The total number and amounts of qualified investments made by each investment fund to qualified small businesses, categorized by type of businesses, amount of investment, job creation anticipated and achieved, geographical distribution, including area development districts, and new products and technologies developed; and
    3. The total amount of credits granted to investors.
  3. The contents of the annual reports from investment fund managers to the authority described in subsection (1) of this section shall be treated by the authority as confidential, and shall not be considered a public record under the Kentucky Open Records Act, KRS 61.870 to 61.884 .
  4. The authority may charge a fee in connection with the administration and processing of an annual report made by an investment fund manager.

HISTORY: Enact. Acts 2002, ch. 230, § 23, effective July 15, 2002; 2005, ch. 85, § 574, effective June 20, 2005; 2017 ch. 80, § 9, effective June 29, 2017.

154.20-265. Investment fund approved before July 1, 2002.

Any investment fund approved to make qualified investments pursuant to KRS 154.20-250 to 154.20-284 prior to July 1, 2002, unless otherwise approved by the authority, shall continue to operate and be granted credits pursuant to the agreement entered into and the rules, regulations, and procedures adopted by the authority prior to July 15, 2002.

History. Enact. Acts 2002, ch. 230, § 24, effective July 15, 2002.

154.20-267. Limitations on total amount of tax credits — Order in which authority approves credits to investors. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 414, § 7, effective July 15, 1998; 2000, ch. 300, § 14, effective July 14, 2000) was repealed by Acts 2002, ch. 230, § 41, effective July 15, 2002. For present law, see KRS 154.20-260 .

154.20-269. Procedure for obtaining tax credit — Confidentiality of investor’s filings. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 414, § 8, effective July 15, 1998; 2000, ch. 300, § 15, effective July 14, 2000) was repealed by Acts 2002, ch. 230, § 41, effective July 15, 2002. For present law, see KRS 154.20-260 .

154.20-271. Disallowance of cash contributions redeemed or withdrawn — Penalty for failure to invest in small businesses and abatement of penalty — Personal liability of investors to Revenue Cabinet — Administration by Revenue Cabinet. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 414, § 9, effective July 15, 1998; 2000, ch. 300, § 16, effective July 14, 2000) was repealed by Acts 2002, ch. 230, § 41, effective July 15, 2002. For present law, see KRS 154.20-262 .

154.20-273. Investment fund manager’s reports to Revenue Cabinet and to authority, content and time of filing — Authority’s status reports to General Assembly, content and time of filing — Confidentiality of reports from investment fund managers to the authority — Fees. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 414, § 10, effective July 15, 1998; 2000, ch. 300, § 17, effective July 14, 2000) was repealed by Acts 2002, ch. 230, § 41, effective July 15, 2002. For present law, see KRS 154.20-264 .

154.20-277. Annual audit of investment funds by certified public accountant — Examination of investment funds by authority and Department of Revenue — Other audits — Department’s powers of enforcement — Notice of noncompliance — Examination, investigative, and enforcement powers of securities regulatory organizations. [Effective until June 29, 2021]

  1. Each investment fund manager shall cause the books and records of the investment fund to be audited on an annual basis by an independent certified public accountant in accordance with generally accepted accounting principles consistently applied. The audit shall address the financial condition of the investment fund and compliance with the provisions of KRS 141.068 and KRS 154.20-250 to 154.20-284 . Each year the audit report shall be completed and certified by the independent certified public accountant and delivered to the authority within ninety (90) days after the end of the investment fund’s fiscal year.
  2. The authority and the Department of Revenue, individually or collectively, may examine, under oath, any of the officers, trustees, partners, members, managers, directors, agents, employees, or investors of an investment fund regarding the affairs and business of the investment fund. The authority and the Department of Revenue, individually or collectively, may issue subpoenas and subpoenas duces tecum and administer oaths. Refusal to obey such a subpoena or subpoena duces tecum may be reported to the Franklin Circuit Court, which shall enforce the subpoena or subpoena duces tecum according to the rules of civil or criminal procedure, as applicable.
  3. In addition to the audits required by this section, the authority or the Department of Revenue may audit one (1) or more investment funds or investment fund managers in any year on a random basis or for cause. The authority or the Department of Revenue may also audit, for cause, any small business in which an investment fund has made a qualified investment. Nothing in this section shall be construed to prohibit the Department of Revenue from conducting any audit relating to the administration or enforcement of the tax laws of the Commonwealth which the Department of Revenue determines to be appropriate.
  4. If any audit conducted pursuant to this section discloses that an investment fund or investment fund manager is not in compliance with the provisions of KRS 141.068 and KRS 154.20-250 to 154.20-284 , the authority and the Department of Revenue may consult with one another with respect to this noncompliance and the Department of Revenue may exercise any of its powers to protect the Commonwealth’s interest and to enforce the provisions of KRS 141.068 and KRS 154.20-250 to 154.20-284 .
  5. The authority may give an investment fund manager written notice of any noncompliance with the provisions of KRS 154.20-250 to 154.20-284 and specify a period of time the investment fund manager shall have to cure any noncompliance. Failure to cure any such noncompliance within the period of time specified by the authority may result in further action by the authority pursuant to this section.
  6. Nothing in this section shall be construed to prohibit the Department of Financial Institutions, Division of Securities, or any other securities regulatory organization or body with jurisdiction over the activity of an investment fund or the investment fund manager from conducting any examination or investigation relating to the securities activities of the investment fund or investment fund manager. If any examination or investigation conducted pursuant to any securities laws or regulations discloses that an investment fund or investment fund manager is not in compliance with any provision of any applicable securities laws or regulations, the appropriate securities regulator may take whatever action it deems appropriate in accordance with such securities laws and regulations to respond to the noncompliance, notwithstanding any action the authority or the Department of Revenue may or may not take with respect to the noncompliance.

History. Enact. Acts 1998, ch. 414, § 11, effective July 15, 1998; 2002, ch. 230, § 25, effective July 15, 2002; 2005, ch. 85, § 575, effective June 20, 2005; 2010, ch. 24, § 197, effective July 15, 2010.

154.20-277. Annual audit of investment funds by certified public accountant — Examination of investment funds by authority and Department of Revenue — Other audits — Department’s powers of enforcement — Notice of noncompliance — Examination, investigative, and enforcement powers of securities regulatory organizations. [Effective June 29, 2021]

  1. Each year the annual financial statements and annual reports of the investment fund shall be delivered to the authority within ninety (90) days after the end of the investment fund’s fiscal year.
  2. The authority and the Department of Revenue, individually or collectively, may examine, under oath, any of the officers, trustees, partners, members, managers, directors, agents, employees, or investors of an investment fund regarding the affairs and business of the investment fund. The authority and the Department of Revenue, individually or collectively, may issue subpoenas and subpoenas duces tecum and administer oaths. Refusal to obey such a subpoena or subpoena duces tecum may be reported to the Franklin Circuit Court, which shall enforce the subpoena or subpoena duces tecum according to the rules of civil or criminal procedure, as applicable.
  3. In addition to the audits required by this section, the authority or the Department of Revenue may audit one (1) or more investment funds or investment fund managers in any year on a random basis or for cause. The authority or the Department of Revenue may also audit, for cause, any small business in which an investment fund has made a qualified investment. Nothing in this section shall be construed to prohibit the Department of Revenue from conducting any audit relating to the administration or enforcement of the tax laws of the Commonwealth which the Department of Revenue determines to be appropriate.
  4. If any audit conducted pursuant to this section discloses that an investment fund or investment fund manager is not in compliance with the provisions of KRS 141.068 and KRS 154.20-250 to 154.20-284 , the authority and the Department of Revenue may consult with one another with respect to this noncompliance and the Department of Revenue may exercise any of its powers to protect the Commonwealth’s interest and to enforce the provisions of KRS 141.068 and KRS 154.20-250 to 154.20-284 .
  5. The authority may give an investment fund manager written notice of any noncompliance with the provisions of KRS 154.20-250 to 154.20-284 and specify a period of time the investment fund manager shall have to cure any noncompliance. Failure to cure any such noncompliance within the period of time specified by the authority may result in further action by the authority pursuant to this section.
  6. Nothing in this section shall be construed to prohibit the Department of Financial Institutions, Division of Securities, or any other securities regulatory organization or body with jurisdiction over the activity of an investment fund or the investment fund manager from conducting any examination or investigation relating to the securities activities of the investment fund or investment fund manager. If any examination or investigation conducted pursuant to any securities laws or regulations discloses that an investment fund or investment fund manager is not in compliance with any provision of any applicable securities laws or regulations, the appropriate securities regulator may take whatever action it deems appropriate in accordance with such securities laws and regulations to respond to the noncompliance, notwithstanding any action the authority or the Department of Revenue may or may not take with respect to the noncompliance.

HISTORY: Enact. Acts 1998, ch. 414, § 11, effective July 15, 1998; 2002, ch. 230, § 25, effective July 15, 2002; 2005, ch. 85, § 575, effective June 20, 2005; 2010, ch. 24, § 197, effective July 15, 2010; 2021 ch. 185, § 116, effective June 29, 2021.

154.20-279. Limitation of liability for the Commonwealth and its agents.

The Commonwealth, the authority, or any officer, director, official, employee, or agent of the Commonwealth or the authority shall not be liable to any investor, investment fund, or investment fund manager as a result of KRS 154.20-250 to 154.20-284 , or any of the activities authorized by KRS 154.20-250 to 154.20-284 . This limitation of liability includes, without limitation:

  1. Losses or damages investors incur in connection with any committed or contributed cash contributions made to an investment fund or any qualified investments made by an investment fund in small businesses; and
  2. Any claim, liability, obligation, loss, damage, assessment, judgment, cost, and expense of any kind or character relating to federal or state securities laws, rules, regulations, or orders.

History. Enact. Acts 1998, ch. 414, § 12, effective July 15, 1998; 2002, ch. 230, § 26, effective July 15, 2002.

154.20-281. Dissolution or liquidation of investment fund.

  1. An investment fund may be dissolved or liquidated only after notice to the authority in compliance with any applicable state or federal securities laws or regulations.
  2. This section shall not prohibit an investment fund from making distributions to investors in compliance with any applicable state or federal securities laws or regulations, if the investment fund is in compliance with the terms of KRS 154.20-250 to 154.20-284 .

History. Enact. Acts 1998, ch. 414, § 13, effective July 15, 1998; 2002, ch. 230, § 27, effective July 15, 2002.

154.20-283. Prohibition against certain qualified investments and financial interests — Investment fund manager’s limitations on holding management positions in small businesses in which investment fund has invested.

  1. No qualified investments shall be made in a small business that is the “alter ego” of the investment fund or the investment fund manager. For purposes of this subsection, a business is an “alter ego” of an investment fund or an investment fund manager if any of the following criteria are satisfied:
    1. Prior to an investment fund making a qualified investment in the small business, the small business is owned in whole or in an amount greater than twenty percent (20%) of the small business by an investor, officer, director, partner, member, manager, trustee or employee of the investment fund or the investment fund manager; or
    2. The small business employs on a full-time or part-time basis an investor.
  2. An investment fund manager may occupy any management position in any small business in which that investment fund has made a qualified investment for the purpose of:
    1. Filling a management position in an effort to remedy problems arising from a lack of profitability of the small business, or from dishonesty of the persons otherwise managing the small business; or
    2. Serving in a management position in the small business in order to add value to the investment fund and the business by his or her experience, skills, or relationships to help a business succeed.
  3. No officer, member, or employee of the authority shall have a direct or indirect financial interest in any investment fund or investment fund manager.

History. Enact. Acts 1998, ch. 414, § 14, effective July 15, 1998; 2002, ch. 230, § 28, effective July 15, 2002.

154.20-284. Short title for KRS 154.20-250 to 154.20-284.

KRS 154.20-250 to 154.20-284 shall be known as the Kentucky Investment Fund Act.

History. Enact. Acts 1998, ch. 414, § 15, effective July 15, 1998.

154.20-285. Investment in single knowledge-based entity — Investment by local governments — Transfer of tax credits.

Notwithstanding the provisions of KRS 154.20-254 , 154.20-255 , and 154.20-258 , an investment fund approved by the Kentucky Economic Development Finance Authority after July 1, 2004, and otherwise qualified for tax credits pursuant to the Kentucky Investment Fund Act as set forth in KRS 154.20-250 to 154.20-284 , may invest up to one hundred percent (100%) of its committed cash contributions in a single knowledge-based entity. A city, county, other local governmental entity, or any entity approved by the Kentucky Economic Development Finance Authority, may invest in an investment fund created for this purpose and may transfer, for some or no consideration, any or all of the tax credits received pursuant to the Kentucky Investment Fund Act to a private entity. The Kentucky Economic Development Finance Authority shall have discretion to approve or deny applications for entities seeking credits pursuant to this section.

History. Enact. Acts 2004, ch. 142, § 3, effective April 21, 2004.

Commonwealth Venture Fund

154.20-300. Short title for KRS 154.20-300 to 154.20-390. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 155.400 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 42, effective July 14, 1992.

This section (Repealed, reenact. and amend. Acts 1992, ch. 105, § 42, effective July 14, 1992) was repealed by Acts 1998, ch. 414, § 22, effective July 15, 1998.

154.20-305. Purposes of KRS 154.20-300 to 154.20-390. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 155.410 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 43, effective July 14, 1992.

This section (Repealed, reenact. and amend. Acts 1992, ch. 105, § 43, effective July 14, 1992; 1992, ch. 360, § 15, effective July 14, 1992) was repealed by Acts 1998, ch. 414, § 22, effective July 15, 1998.

154.20-310. Definitions for KRS 154.20-300 to 154.20-390. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 155.420 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 44, effective July 14, 1992.

This section (Repealed, reenact. and amend. Acts 1992, ch. 105, § 44, effective July 14, 1992; 1992, ch. 360, § 16, effective July 14, 1992; 1994, ch. 390, § 3, effective July 15, 1994; 1996, ch. 194, § 27, effective July 15, 1996; 1996, ch. 254, § 33, effective July 15, 1996) was repealed by Acts 1998, ch. 414, § 22, effective July 15, 1998.

154.20-320. Establishment and operation of fund. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 155.430 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 45, effective July 14, 1992.

This section (Repealed, reenact. and amend. Acts 1992, ch. 105, § 45, effective July 14, 1992; 1992, ch. 360, § 17, effective July 14, 1992) was repealed by Acts 1998, ch. 414, § 22, effective July 15, 1998.

154.20-330. Investment by entity not subject to taxes listed in KRS 154.20-310 and 154.20-360. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 360, § 21, effective July 14, 1992) was repealed by Acts 1998, ch. 414, § 22, effective July 15, 1998.

154.20-340. Investment tax credits — Years — Carryovers. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 155.440 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 46, effective July 14, 1992.

This section (Repealed, reenact. and amend. Acts 1992, ch. 105, § 46, effective July 14, 1992; 1992, ch. 360, § 18, effective July 14, 1992) was repealed by Acts 1998, ch. 414, § 22, effective July 15, 1998.

154.20-350. Maximum credits. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 155.450 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 47, effective July 14, 1992.

This section (Repealed, reenact. and amend. Acts 1992, ch. 105, § 47, effective July 14, 1992) was repealed by Acts 1998, ch. 414, § 22, effective July 15, 1998.

154.20-360. Application of tax credit. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 155.460 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 48, effective July 14, 1992.

This section (Repealed, reenact. and amend. Acts 1992, ch. 105, § 48, effective July 14, 1992; 1992, ch. 360, § 19, effective July 14, 1992; 1996, ch. 254, § 34, effective July 15, 1996) was repealed by Acts 1998, ch. 414, § 22, effective July 15, 1998.

154.20-370. Procedure to receive tax credit. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 155.470 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 49, effective July 14, 1992.

This section (Repealed, reenact. and amend. Acts 1992, ch. 105, § 49, effective July 14, 1992) was repealed by Acts 1998, ch. 414, § 22, effective July 15, 1998.

154.20-380. Loss of credit through early redemption. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 155.480 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 50, effective July 14, 1992.

This section (Repealed, reenact. and amend. Acts 1992, ch. 105, § 50, effective July 14, 1992; 1992, ch. 360, § 20, effective July 14, 1992) was repealed by Acts 1998, ch. 414, § 22, effective July 15, 1998.

154.20-390. Reporting requirements. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 155.490 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 51, effective July 14, 1992.

This section (Repealed, reenact. and amend. Acts 1992, ch. 105, § 51, effective July 14, 1992; 1992, ch. 360, § 22, effective July 14, 1992) was repealed by Acts 1998, ch. 414, § 22, effective July 15, 1998.

Kentucky Alternative Fuel and Renewable Energy Fund Program

154.20-400. Definitions for KRS 154.20-400 to 154.20-420.

As used in KRS 154.20-400 to 154.20-420 :

  1. “Alternative fuels” means:
    1. Alternative transportation fuels as defined in KRS 152.715 ;
    2. Synthetic natural gas as defined in KRS 152.715 ;
    3. Biodiesel produced from biomass resources as defined in KRS 152.715 that is used for purposes other than transportation fuel;
    4. Ethanol as defined in KRS 141.422 ;
    5. Cellulosic ethanol as defined in KRS 141.422 ; and
    6. Any other fuel that is produced from a renewable or sustainable source;
  2. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, person, group, city, county, charter county, consolidated local government, urban-county government, or unified local government entity, or other entity engaged in research and development and commercialization related to, or the production of, alternative fuels or renewable energy;
  3. “Kentucky-based” means a business with its principal place of business in Kentucky or at least fifty-one percent (51%) of its property and payroll located in Kentucky;
  4. “Qualified company” means an eligible company that may be granted funding pending final approval;
  5. “Renewable energy” means electricity produced by hydropower, solar power, landfill methane gas, wind power, geothermal, biomass, or other renewable sources; and
  6. “Science and technology organization” means an independent, nonprofit quasi-governmental organization with a statewide mission and demonstrated history of managing complicated programs in the areas of entrepreneurial innovation, research and development, and science and technology advancement.

History. Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 45, effective August 30, 2007; 2013, ch. 116, § 5, effective June 25, 2013.

154.20-405. Powers of cabinet under KRS 154.20-400 to 154.20-420.

  1. The cabinet shall have all the powers and authority, not explicitly prohibited by statute, necessary and convenient to carry out and effectuate the purposes of KRS 154.20-400 to 154.20-420 , including but not limited to:
    1. Entering into contracts or agreements necessary or incidental to the performance of its duties, functions, and responsibilities; and
    2. Soliciting, borrowing, accepting, receiving, and expending funds from any public or private source, including but not limited to appropriations of the Commonwealth, grants, or contributions of money, property, labor, or other things of value to be used to carry out the program’s operations, functions, and responsibilities.
  2. The cabinet may expend money in the fund created in KRS 154.20-410 for reasonable administrative expenses directly incurred in carrying out the requirements of KRS 154.20-400 to 154.20-420 . It is the intent of the General Assembly that the fund created in KRS 154.20-410 be used, to the fullest extent possible, to directly fund project costs. It is also the intent of the General Assembly that revenues available that are generated through investments of the fund be redeposited in the fund and that those amounts shall be considered in establishing appropriations.
  3. The cabinet shall contract with a science and technology organization to administer the program created in KRS 154.20-400 to 154.20-420 . The cabinet shall approve the application criteria, the process for submission of an application, and the structure and type of outside expertise or peer review used in the application review process in the program created in KRS 154.20-400 to 154.20-420 .
  4. No member of the cabinet or the science and technology organization or other administering entity, or their employees or outside experts or their immediate family members, shall directly or indirectly financially benefit in any award, contract, or agreement under the program.
  5. The cabinet and the science and technology organization shall submit a joint annual report prior to October 15 to the Governor and the General Assembly detailing its work related to the program created in KRS 154.20-400 to 154.20-420 . The annual report shall include but not be limited to reporting on the progress made in achieving the program’s purposes, qualitative and quantitative information concerning the applications received, projects approved and undertaken, companies served, funding amounts invested in each project, and findings and recommendations to increase the program’s effectiveness in achieving its purposes.
  6. All records related to the administration of the program created in KRS 154.20-400 to 154.20-420 shall be deemed property of the cabinet and shall be open records and subject to public inspection under KRS 61.870 to 61.884 . Any research or information that involves or is a patent, trade secret, or other legally protectable interest shall be exempt from inspection until the intellectual property rights have been fully protected.

History. Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 46, effective August 30, 2007.

154.20-410. Kentucky alternative fuel and renewable energy fund.

  1. There is created in the State Treasury the “Kentucky alternative fuel and renewable energy fund” for the purpose of enabling Kentucky-based companies to undertake research and development and commercialization in the area of alternative fuels or renewable energy.
  2. The fund may receive state appropriations, gifts, grants, federal funds, revolving funds, and any other funds both public and private. Moneys deposited in the fund shall be disbursed by the State Treasurer upon the warrant of the secretary of the Finance and Administration Cabinet. Any unallocated or unencumbered balances in the fund shall be invested as provided in KRS 42.500(9).
  3. Notwithstanding KRS 45.229 , any income earned from the investments along with the unallotted or unencumbered balances in the fund shall not lapse, and shall be deemed a trust and agency account and made available solely for the purposes and benefits of the Kentucky Alternative Fuel and Renewable Energy Fund Program.

History. Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 47, effective August 30, 2007; 2013, ch. 116, § 6, effective June 25, 2013.

154.20-415. Kentucky Alternative Fuel and Renewable Energy Fund Program — Purpose.

  1. There is created in the cabinet a Kentucky Alternative Fuel and Renewable Energy Fund Program to provide funding to Kentucky-based companies to undertake research and development and commercialization work in the area of alternative fuels and renewable energy.
  2. The purpose of the program is to:
    1. Accelerate knowledge transfer and technological innovation, improve economic competitiveness, and spur economic growth of Kentucky-based companies involved in the areas of alternative fuels or renewable energy;
    2. Support research and development activities that have clear potential to lead to commercially successful products, processes, or services in the areas of alternative fuels or renewable energy within a reasonable period of time;
    3. Stimulate growth-oriented alternative fuels and renewable energy enterprises within the Commonwealth;
    4. Encourage partnerships and collaborative projects between private enterprises, Kentucky’s public and private colleges and universities, and research organizations in alternative fuels and renewable energy; and
    5. Promote research and development and commercialization activities in alternative fuels and renewable energy that are market-oriented.

History. Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 48, effective August 30, 2007; 2013, ch. 116, § 7, effective June 25, 2013.

154.20-420. Science and technology organization — Duties — Funding application process — Negotiation of agreements.

  1. The science and technology organization shall have the authority to review applications, qualify companies, and certify qualified companies.
  2. The science and technology organization shall develop application criteria and an application process.
  3. The science and technology organization shall focus on providing support to research and development projects that are likely to:
    1. Produce a measurable result and be technically sound;
    2. Lead to innovative technology or new knowledge;
    3. Lead to commercially successful products, processes, or services within a reasonable period of time; or
    4. Show significant potential for stimulating innovation-driven economic growth and a reasonable probability to enhance employment opportunities within the Commonwealth.
  4. An eligible company may submit to the science and technology organization an application for funding. The application shall include but not be limited to the following information:
    1. Verification that the applicant is an eligible company that is Kentucky-based;
    2. A technical research and commercialization plan that is sufficient for outside expert review;
    3. A detailed financial analysis that includes the commitment of resources by the applicant and others;
    4. Sufficient detail concerning proposed project partners, type and amount of work to be performed by each partner, and expected product or service with estimated costs to be reflected in the negotiated contract or agreement;
    5. A statement of the economic development potential of the project; and
    6. Any other information the science and technology organization may require.
  5. The science and technology organization shall conduct an independent review using internal and external resources to evaluate each application. Following the application review, the science and technology organization shall make a written determination of whether the applicant is a qualified company as defined in KRS 154.20-400 .
  6. Before a qualified company is approved for funding, the qualified company shall negotiate an agreement and funding contract that is satisfactory to the science and technology organization with any project partners to undertake the research and development work.
  7. Upon a qualified company’s presentation of a legal agreement or contract meeting the conditions under subsection (6) of this section, the science and technology organization shall negotiate the terms for funding with the qualified company and shall enter into a contract with the qualified company if an agreement is reached.
  8. Any agreement shall include a provision that a qualified company shall, at a minimum, match the funding provided through the science and technology organization on a one-to-one dollar ratio for each year of the project. The science and technology organization shall have sole discretion to authorize an in-kind contribution in lieu of part of the match required for the qualified company, if the science and technology organization determines that the financial limitations of the qualified company warrant this authorization.
  9. The science and technology organization may negotiate with the qualified company the ownership and disposition of patents, royalties, all other intellectual property rights, and an equity or related position on behalf of the Kentucky alternative fuel and renewable energy fund for the sole purpose of reinvesting and sustaining a revolving fund to carry out KRS 154.20-400 to 154.20-420 .
  10. The science and technology organization, upon approval by the cabinet, shall issue guidelines for statewide notification of the program’s availability and a program schedule, including but not limited to an application review cycle including:
    1. A deadline for submission of applications, which shall be at least biennially; and
    2. A deadline for completing the review of applications, which shall not exceed five (5) months after the application submission deadline.

History. Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 49, effective August 30, 2007.

Interim and Supplemental Financing

154.20-520. Trust funds — Payments.

  1. There are hereby established in the Treasury of the Commonwealth trust funds for each area of responsibility for which it was established, and to which shall be credited all funds appropriated by the General Assembly to the authority for the purposes of this chapter, together with interest earned by these funds and all funds obtained by the authority from other sources which, by contract or otherwise, are payable into such funds. The authority may request, and such request shall be honored, that the trust funds be invested and reinvested for the benefit of the authority until such time as the funds are needed to satisfy loan commitments. Income from the investments shall be credited to the authority’s funds. If at any time the authority shall determine the moneys in any fund exceed the amount needed by the authority to carry out the purposes of this chapter as it relates to a particular area of responsibility, the authority shall take such action as shall be required to transfer the excess amounts from the fund for one (1) area of responsibility to the fund for another area of responsibility as economic development needs dictate and are determined by the authority or shall release such excess funds and transfer such excess funds to the general fund of the State Treasury.
  2. The mortgage insurance fund shall be used solely and only as reserve for insurance commitments and to pay the costs of procuring insurance of private or governmental loans to accomplish the purposes of the authority as stated in KRS 154.20-030 . Such costs shall be paid from said fund upon approval by the authority solely under terms of its contract with the insurance corporation, and may include the costs of obtaining interim and permanent guarantees which are authorized by this chapter, whether or not the loan application finally results in a loan or guarantee by the government.
  3. All loans and all costs of administration of this chapter shall be paid out of the authority’s funds. Payments shall be made in the same manner as other state expenditures, except that they shall be subject to the approval of the Finance and Administration Cabinet only as to availability of funds.

History. Enact. Acts 1978, ch. 96, § 14, effective July 1, 1978; 1980, ch. 340, § 16, effective July 15, 1980.

Compiler’s Notes.

This section was formerly compiled as KRS 154.550.

Research References and Practice Aids

2008-2010 Budget Reference.

See State/Executive Branch Budget, 2008 Ky. Acts ch. 127, Pt. V, C, 1, at 592; and State/Executive Branch Budget Memorandum, 2008 Ky. Acts ch. 188, at 902 (Final Budget Memorandum, Vol. I, at 13).

154.20-530. Mortgage insurance corporation — Trust account.

The authority may cause to be established, by any number of natural persons not in excess of fifteen (15), a Kentucky nonprofit corporation which shall have as its purpose the insurance of mortgage loans entered into by and between lenders and persons or corporations located in Kentucky and offering gainful employment to the inhabitants of the Commonwealth. The mortgage insurance corporation shall not be deemed to have been established for the purposes of this chapter unless and until its articles of incorporation shall have been approved by the authority, and if so approved, no approval by the Department of Insurance shall be required. Such articles of incorporation, in order to secure such approval, shall contain, inter alia, the following provisions:

  1. The corporation shall be designated “Kentucky Mortgage Insurance and Guarantee Corporation;”
  2. No member of the board of directors of the insurance corporation shall receive any emoluments for his services thereon, except that he may be reimbursed for expenditures incurred by him in the performance of duties for the insurance corporation;
  3. All assistance fees received by the insurance corporation shall be held in a trust account in one or more banks and trust companies having a principal place of business in the Commonwealth;
  4. The trust account shall be held for the security of the holders of mortgage loans or bonds guaranteed by the insurance corporation, except that provision may be made for the payment of expenses of the insurance corporation from the trust account or a segregated portion thereof;
  5. The trust account shall be governed by a trust agreement entered into by and between the insurance corporation and the trustee or trustees. Said trust agreement shall contain such lawful provisions and limitations as may be deemed appropriate, and may include a pledge of premiums and other moneys deposited in the fund to the payment of the obligations insured by the insurance corporation; and
  6. The trust agreement shall make appropriate provisions for the investment by the trustee or trustees of funds in the trust account for the benefit of the insurance corporation and of any claimants against the trust account. The moneys so pledged and thereafter received by the trust account shall be subject to the lien of such pledge without any further act, and the lien of such pledge shall be valid and binding against all parties in accordance with the terms of the trust agreement.

History. Enact. Acts 1978, ch. 96, § 15, effective July 1, 1978; 1980, ch. 340, § 17, effective July 15, 1980; 2010, ch. 24, § 198, effective July 15, 2010.

Compiler’s Notes.

This section was formerly compiled as KRS 155.555.

Opinions of Attorney General.

The legislature did not intend that the Kentucky Mortgage Guarantee Insurance Corporation come within the jurisdiction of the Department of Insurance. OAG 79-515 .

154.20-540. Powers of insurance corporation.

The insurance corporation shall be empowered by its articles:

  1. To contract with the authority to insure loans, bonds or their debt service, made by any lender or issuer to finance the acquisition, construction or alteration of any eligible project;
  2. To enter into agreements for such insurance;
  3. To fix a rate or rates of premiums to be paid for such insurance by the person or corporation assisted, which premiums shall be fixed to take into account the fact that the authority has paid an assistance fee to the insurance corporation as an assistance to the person or corporation whose loan or bond is being insured; and
  4. To exercise such other powers as are necessary or incidental to the foregoing.

History. Enact. Acts 1978, ch. 96, § 16, effective July 1, 1978; 1980, ch. 340, § 18, effective July 15, 1980; 1986, ch. 201, § 7, effective July 15, 1986.

Compiler’s Notes.

This section was formerly compiled as KRS 154.560.

154.20-550. Insurance payable from trust account.

The insurance provided by the insurance corporation shall be payable solely from the trust account established by the insurance corporation under the terms of KRS 154.20-530 , and shall not constitute a debt or pledge of the faith and credit of the Commonwealth or any of its agencies, or of the authority.

History. Enact. Acts 1978, ch. 96, § 17, effective July 1, 1978.

Compiler’s Notes.

This section was formerly compiled as KRS 154.565.

154.20-560. Restrictions on insurance commitment.

The authority shall not recommend to the insurance corporation, and the insurance corporation shall not approve the insurance of any loan or bond under its contract with the authority, if the insurance of such loan or bond will result in a total commitment by the insurance corporation in excess of ten (10) times the amount in the trust account. No insurance commitment shall be made by the insurance corporation unless the authority has made the following findings:

  1. That the loan or bond is to be secured by a first mortgage of real or personal property or both satisfactory to the authority;
  2. That the mortgagor and mortgagee are responsible parties;
  3. That the occupant of the project or projects is a responsible occupant;
  4. That the provisions of the mortgage loan or bond are reasonable and proper, and in making such determination the authority may take into account such factors as it deems relevant including, without limitation, the provisions for maintaining, insuring and repairing the project by the mortgagee and the remedies of the authority or the insurance corporation upon default of the mortgagee;
  5. That the project will provide employment having a reasonable relationship to the principal amount of the loan or bond issue to be insured therefor, taking into account, among other things, the investment per employee of comparable facilities;
  6. That adequate provision is being or will be made to meet any increased demand upon community public facilities that might result from the project;
  7. That the size and scope of the project is such that a definite benefit to the economy of the Commonwealth may reasonably be expected to result from the construction or improvement thereof; and the employment created shall be substantially primary employment;
  8. That the principal amount of the loan or bond does not exceed ninety-five percent (95%) of the cost of the land, buildings, and improvements and eighty percent (80%) of the cost of the machinery and equipment;
  9. That the duration of the loan or bond shall not exceed thirty (30) years on land, buildings and improvements exclusive of machinery and equipment, and fifteen (15) years on machinery and equipment; and that the authorization provisions are satisfactory to the authority;
  10. That the insurance agreement provides for subrogation upon payment of insured debt service from the trust account;
  11. That the public interest is adequately protected by the terms of the loan or bond and of the insurance agreement;
  12. That the insurance of the loan or bond will not cause the insured debt service coming due in any one (1) calendar year on account of an insured loan or bond for any one (1) mortgagor to exceed twenty percent (20%) of the amount in the trust account when the finding is made; and
  13. That the insurance of the loan or bond will not cause the insured debt service coming due in any one (1) calendar year on account of permanent guarantees to exceed one hundred percent (100%) of the amount in the mortgage insurance trust when the finding is made.

The authority shall consult with the appropriate local and regional planning agencies to ascertain the relationship of a proposed project to any existing local or regional comprehensive plan; that, so far as feasible, the project is to be located in an area of generally high unemployment; and that employment opportunities will become available to the residents of such area.

History. Enact. Acts 1978, ch. 96, § 18, effective July 1, 1978; 1980, ch. 340, § 19, effective July 15, 1980.

Compiler’s Notes.

This section was formerly compiled as KRS 154.570.

154.20-570. Contract recapture provisions.

Any contract between the authority and the insurance corporation shall contain provisions for the recapture by the authority of any profits made by the insurance corporation; but such recapture may be delayed indefinitely if the continued use of funds so derived by the insurance corporation shall be deemed by the authority to promote the purposes of the authority.

History. Enact. Acts 1978, ch. 96, § 19, effective July 1, 1978.

Compiler’s Notes.

This section was formerly compiled as KRS 154.575.

SUBCHAPTERS 22 to 29. Financing of Specific Types of Development

SUBCHAPTER 22. Financing of Rural Economic Development

154.22-010. Definitions for KRS 154.22-010 to 154.22-080.

The following words and terms as used in KRS 154.22-010 to 154.22-080 , unless the context clearly indicates a different meaning, shall have the following meanings:

  1. “Activation date” means a date selected by an approved company in the tax incentive agreement at any time within a two (2) year period after the date of final approval of the tax incentive agreement by the authority;
  2. “Affiliate” means the following:
    1. Members of a family, including only brothers and sisters of the whole or half blood, spouse, ancestors, and lineal descendants of an individual;
    2. An individual, and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for that individual;
    3. An individual, and a limited liability company 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;
    4. Two (2) corporations which are members of the same controlled group, which includes and is limited to:
      1. One (1) or more chains of corporations connected through stock ownership with a common parent corporation, if:
        1. Stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of each of the corporations, except the common parent corporation, is owned by one (1) or more of the other corporations; and
        2. The common parent corporation owns stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of at least one (1) of the other corporations, excluding, in computing the voting power or value, stock owned directly by the other corporations; or
      2. Two (2) or more corporations, if five (5) or fewer persons who are individuals, estates, or trusts own stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of each corporation, taking into account the stock ownership of each person only to the extent the stock ownership is identical with respect to each corporation;
    5. A grantor and a fiduciary of any trust;
    6. A fiduciary of a trust and a fiduciary of another trust, if the same person is a grantor of both trusts;
    7. A fiduciary of a trust and a beneficiary of that trust;
    8. A fiduciary of a trust and a beneficiary of another trust, if the same person is a grantor of both trusts;
    9. A fiduciary of a trust and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for the trust or by or for a person who is a grantor of the trust;
    10. A fiduciary of a trust and a limited liability company more than fifty percent (50%) of the capital interest, or the interest in profits, of which is owned directly or indirectly, by or for the trust or by or for a person who is a grantor of the trust;
    11. A corporation, a partnership, and a limited partnership, if the same persons own:
      1. More than fifty percent (50%) in value of the outstanding stock of the corporation; and
      2. More than fifty percent (50%) of the capital interest, or the profits interest, in the partnership or limited partnership;
    12. A corporation and a limited liability company, if the same persons own:
      1. More than fifty percent (50%) in value of the outstanding stock of the corporation; and
      2. More than fifty percent (50%) of the capital interest or the profits in the limited liability company;
    13. A partnership, limited partnership, and a limited liability company, if the same persons own:
      1. More than fifty percent (50%) of the capital interest or profits in the partnership or limited partnership; and
      2. More than fifty percent (50%) of the capital interest or the profits in the limited liability company;
    14. An S corporation and another S corporation, if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation, S corporation designation being the same as that designation under the Internal Revenue Code of 1986, as amended; or
    15. An S corporation and a C corporation, if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation; S and C corporation designations being the same as those designations under the Internal Revenue Code of 1986, as amended;
  3. “Agribusiness” means any activity involving the processing of raw agricultural products, including timber, or the providing of value-added functions with regard to raw agricultural products;
  4. “Approved company” means any eligible company seeking to locate an economic development project in a qualified county, which eligible company is approved by the authority pursuant to KRS 154.22-010 to 154.22-080 ;
  5. “Approved costs” means:
    1. Obligations incurred for labor and to contractors, subcontractors, builders, and materialmen in connection with the acquisition, construction, installation, equipping, and rehabilitation of an economic development project;
    2. The cost of acquiring land or rights in land and any cost incidental thereto, including recording fees;
    3. The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, installation, equipping, and rehabilitation of an economic development project which is not paid by the contractor or contractors or otherwise provided for;
    4. All costs of architectural and engineering services, including test borings, surveys, estimates, plans and specifications, preliminary investigations, and supervision of construction, as well as for the performance of all the duties required by or consequent upon the acquisition, construction, installation, equipping, and rehabilitation of an economic development project;
    5. All costs which shall be required to be paid under the terms of any contract or contracts for the acquisition, construction, installation, equipping, and rehabilitation of an economic development project; and
    6. All other costs of a nature comparable to those described above;
  6. “Assessment” means the job development assessment fee authorized by KRS 154.22-010 to 154.22-080 ;
  7. “Authority” means the Kentucky Economic Development Finance Authority as created in KRS 154.20-010 ;
  8. “Average hourly wage” means the wage and employment data published by the Department of Workforce Investment in the Education and Workforce Development Cabinet collectively translated into wages per hour based on a two thousand eighty (2,080) hour work year for the following sectors:
    1. Manufacturing;
    2. Transportation, communications, and public utilities;
    3. Wholesale and retail trade;
    4. Finance, insurance, and real estate; and
    5. Services;
  9. “Commonwealth” means the Commonwealth of Kentucky;
    1. “Economic development project” means and includes: (10) (a) “Economic development project” means and includes:
      1. The acquisition of ownership in any real estate in a qualified county by the authority, the approved manufacturing or agribusiness company, or its affiliate;
      2. The present ownership of real estate in a qualified county by the approved manufacturing or agribusiness company or its affiliate;
      3. The acquisition or present ownership of improvements or facilities, as described in paragraph (b) of this subsection, on land which is possessed or is to be possessed by the approved manufacturing or agribusiness company pursuant to a ground lease having a term of sixty (60) years or more;
      4. The new construction of an electric generation facility; and
      5. The legal possession of facilities by an approved company or its affiliate pursuant to a lease having a term equal to or greater than fifteen (15) years with a third-party entity, negotiated at arm’s length, if the facility will be used by the approved company to conduct the approved activity for which the inducement has been granted. An economic development project qualifying under this subparagraph shall only be eligible for credits against equipment and costs related to installation of equipment and for purposes of the tax credits provided under the provisions of KRS 154.22-010 to 154.22-080 only to the extent of twenty thousand dollars ($20,000) per job created by and maintained at the economic development project. Notwithstanding KRS 154.22-050 (8) and 154.22-060 , an economic development project qualifying under this subparagraph shall be eligible only for the aggregate assessments pursuant to KRS 154.22-070 withheld by the approved company each year and shall not be eligible for credit against Kentucky income tax and limited liability entity tax.
    2. For purposes of paragraph (a)1. and 2. of this subsection, ownership of real estate shall only include fee ownership of real estate and possession of real estate pursuant to a capital lease as determined in accordance with Statement of Financial Accounting Standards No. 13, Accounting for Leases, issued by the Financial Accounting Standards Board, November 1976. With respect to paragraph (a)1., 2., and 3. of this subsection or this paragraph, the construction, installation, equipping, and rehabilitation of improvements, including fixtures and equipment, and facilities necessary or desirable for improvement of the real estate, including surveys; site tests and inspections; subsurface site work; excavation; removal of structures, roadways, cemeteries, and other surface obstructions; filling, grading, and provision of drainage, storm water retention, installation of utilities such as water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; off-site construction of utility extensions to the boundaries of the real estate; and the acquisition, installation, equipping, and rehabilitation of manufacturing facilities on the real estate, for use and occupancy by the approved company or its affiliates for manufacturing purposes, electric generation, or for agribusiness purposes. Pursuant to paragraph (a)3. and 5. of this subsection, an economic development project shall not include lease payments made pursuant to a ground lease for purposes of the tax credits provided under the provisions of KRS 154.22-010 to 154.22-080 ;
  10. “Electric generation” means the generation of electricity for resale by means of combusting at least fifty percent (50%) of the total fuel used to generate electricity from coal or from gas derived from coal;
  11. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity engaged in manufacturing, electric generation, or in agribusiness;
  12. “Employee benefits” means nonmandated costs paid by an eligible company for its full-time employees for health insurance, life insurance, dental insurance, vision insurance, defined benefits, 401(k), or similar plans;
  13. “Final approval” means the action taken by the authority authorizing the eligible company to receive inducements under this subchapter;
  14. “Full-time employee” means a person employed by an approved company for a minimum of thirty-five (35) hours per week and subject to the state income tax imposed by KRS 141.020 ;
  15. “Inducements” means the assessment and the tax credits allowed by KRS 154.22-060 ;
  16. “Manufacturing” means any activity involving the manufacturing, processing, assembling, or production of any property, including the processing resulting in a change in the conditions of the property and any activity related to it, together with the storage, warehousing, distribution, and related office facilities; however, “manufacturing” shall not include mining, coal or mineral processing, or extraction of minerals;
  17. “Preliminary approval” means the action taken by the authority conditioning final approval by the authority upon satisfaction by the eligible company of the requirements under this subchapter;
  18. “Qualified county” means any county certified as such by the authority pursuant to KRS 154.22-010 to 154.22-080 ;
  19. “Revenues” shall not be considered state funds;
  20. “State agency” shall have the meaning assigned to the term in KRS 56.440(8);
  21. “Tax incentive agreement” means the agreement entered into, pursuant to KRS 154.22-050 , between the authority and an approved company with respect to an economic development project;
  22. “Kentucky gross receipts” means “Kentucky gross receipts” as defined in KRS 141.0401 ; and
  23. “Kentucky gross profits” means “Kentucky gross profits” as defined in KRS 141.0401 .

History. Enact. Acts 1988, ch. 392, § 1, effective April 8, 1988; 1990, ch. 326, § 2, effective July 13, 1990; repealed, reenact. and amend. Acts 1992, ch. 105, § 22, effective July 14, 1992; 1992, ch. 360, § 1, effective July 14, 1992; 1992, ch. 363, § 12, effective July 14, 1992; 1994, ch. 390, § 4, effective July 15, 1994; 1994, ch. 450, § 3, effective July 15, 1994; 1996, ch. 194, § 29, effective July 15, 1996; 2000, ch. 321, § 1, effective July 14, 2000; 2002, ch. 338, § 19, effective July 15, 2002; 2004, ch. 105, § 2, effective July 13, 2004; 2006, ch. 149, § 216, effective July 12, 2006; 2006, ch. 211, § 69, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 43, effective June 28, 2006; 2007, ch. 75, § 1, effective June 26, 2007; 2007, ch. 137, § 43, effective June 26, 2007; 2009, ch. 11, § 37, effective June 25, 2009; repealed and reenact., Acts 2010, ch. 51, § 43, effective July 15, 2010; 2019 ch. 146, § 19, effective June 27, 2019.

Compiler’s Notes.

This section was formerly compiled as KRS 152.260 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 22, effective July 14, 1992.

Legislative Research Commission Note.

(7/15/2010). 2010 Ky. Acts ch. 51, sec. 183, provides, “The specific textual provisions of Sections 1 to 178 of this Act which reflect amendments made to those sections by 2007 Ky. Acts ch. 137 shall be deemed effective as of June 26, 2007, and those provisions are hereby made expressly retroactive to that date, with the remainder of the text of those sections being unaffected by the provisions of this section.”

(7/12/2006). In 2006 Ky. Acts ch. 149, almost all references in the Kentucky Revised Statutes to “registered limited liability partnerships” were removed by amendments to various sections of the KRS. However, in this section and in sec. 217 of the bill, KRS 154.23-010 , this phrase was not changed or deleted. It appears that leaving this phrase in these two sections was an oversight.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

Research References and Practice Aids

Kentucky Law Journal.

Spencer, Evaluating Kentucky’s Investment Tax Credits in Light of Cuno v. DaimlerChrysler, Inc. , 94 Ky. L.J. 161 (2005/2006).

Rutledge, The 2007 Amendments to the Kentucky Business Entity Statutes, 97 Ky. L.J. 229 (2008).

154.22-020. Legislative findings.

  1. The General Assembly hereby finds and declares that the general welfare and material well-being of citizens of the Commonwealth, and particularly those residing in qualified counties, depends in large measure upon the development and growth of industry in the Commonwealth.
  2. The General Assembly hereby finds and declares further that it is in the best interest of the Commonwealth to induce the location of manufacturing facilities, electric generation, and agribusiness operations within the qualified counties of the Commonwealth in order to advance the public purposes of relieving unemployment by creating new jobs within the qualified counties that but for the inducements to be offered by the authority to approved companies as herein provided would not exist and of creating new sources of tax revenues for the support of the public services provided by the Commonwealth and qualified counties.
  3. The General Assembly hereby finds and declares further that the authority granted by KRS 154.22-010 to 154.22-070 and the purposes to be accomplished hereby are proper governmental and public purposes for which public moneys may be expended, and that the inducement of the location of manufacturing facilities, electric generation, and agribusiness operations within qualified counties is of paramount importance, mandating that the provisions of KRS 154.22-010 to 154.22-070 be liberally construed and applied in order to advance the public purposes.

History. Repealed, reenact. and amend. Acts 1992, ch. 105, § 23, effective July 14, 1992; 1994, ch. 390, § 5, effective July 15, 1994; 2000, ch. 321, § 2, effective July 14, 2000.

Compiler’s Notes.

This section was formerly compiled as KRS 152.262 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 23, effective July 14, 1992.

154.22-030. Powers of authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 392, § 2, effective April 8, 1988 as KRS 152.262 ; repealed, reenact, and amend. Acts 1992, ch. 105, § 24, effective July 14, 1992 as KRS 154.22-030 ; 1992, ch. 360, § 3, effective July 14, 1992; 1994, ch. 450, § 4, effective July 15, 1994) was repealed by Acts 1996, ch. 194, § 73, effective July 15, 1996.

154.22-040. Certification of qualified counties — Loss of certification — Coal-producing counties qualified for electric generation — Selection of eligible companies under Rural Economic Development Assistance Program — Limitation of applicability to nonprofit corporations with handicapped and sheltered workers.

  1. Each year, the authority shall, under its Rural Economic Development Assistance Program, on the basis of the final unemployment figures calculated by the Department of Workforce Investment in the Education and Workforce Development Cabinet, determine which counties have had a countywide rate of unemployment exceeding the statewide unemployment rate of the Commonwealth in the most recent five (5) consecutive calendar years, or which have had an average countywide rate of unemployment exceeding the statewide unemployment rate of the Commonwealth by two hundred percent (200%) in the most recent calendar year, and shall certify those counties as qualified counties. A county not certified on the basis of final unemployment figures may also be certified as a qualified county if the authority determines the county is one (1) of the sixty (60) most distressed counties in the Commonwealth based on the following criteria with equal weight given to each criterion:
    1. The average countywide rate of unemployment in the most recent three (3) consecutive calendar years, on the basis of final unemployment figures calculated by the Department of Workforce Investment in the Education and Workforce Development Cabinet;
    2. In each county the percentage of adults twenty-five (25) years of age and older who have attained at least a high school education or equivalent, on the basis of the most recent data available from the United States Department of Commerce, Bureau of the Census; and
    3. Road quality, as quantified by the access within a county to roads ranked in descending order from best quality to worst quality as follows: two (2) or more interstate highways, one (1) interstate highway, a state four (4) lane parkway, four (4) lane principal arterial access to an interstate highway, state two (2) lane parkway and none of the preceding road types, as certified by the Kentucky Transportation Cabinet to the authority. If the authority determines that a county which has previously been certified as a qualified county no longer meets the criteria of this subsection, the authority shall decertify that county. The authority shall not provide inducements for any facilities in that county and an approved company shall not be eligible for the inducements offered by KRS 154.22-010 to 154.22-070 unless the tax incentive agreements required herein are entered into by all parties prior to July 1 of the year following the calendar year in which the authority decertified that county. In addition, the authority shall certify coal-producing counties, not otherwise certified as qualified counties in this subsection, for economic development projects involving the new construction of electric generation facilities. A coal-producing county shall mean a county in the Commonwealth of Kentucky that has produced coal upon which the tax imposed under KRS 143.020 was paid at any time. For economic development projects undertaken in a regional industrial park, as defined in KRS 42.4588 , or in an industrial park created pursuant to an interlocal agreement in which revenues are shared as provided in KRS 65.210 to 65.300 , where the physical boundaries of the industrial park lie within two (2) or more counties of which at least one (1) of the counties is a qualified county under this section, an eligible company undertaking an economic development project within the physical boundaries of the industrial park may be approved for the inducements under KRS 154.22-010 to 154.22-080 .
  2. The authority shall establish the procedures and standards for the determination and approval of eligible companies and their economic development projects by the promulgation of administrative regulations in accordance with KRS Chapter 13A. The criteria for approval of eligible companies and economic development projects shall include but not be limited to the creditworthiness of eligible companies; the number of new jobs to be provided by an economic development project to residents of the Commonwealth; and the likelihood of the economic success of the economic development project.
  3. The economic development project shall involve a minimum investment of one hundred thousand dollars ($100,000) by the eligible company and shall result in the creation by the eligible company, within two (2) years from the date of the final approval authorizing the economic development project, of a minimum of fifteen (15) new full-time jobs at the site of the economic development project for Kentucky residents to be employed by the eligible company and to be held by persons subject to the personal income tax of the Commonwealth. The authority may extend this two (2) year period upon the written application of an eligible company requesting an extension.
    1. Within six (6) months after the activation date, the approved company shall compensate a minimum of ninety percent (90%) of its full-time employees whose jobs were created with base hourly wages equal to either: (4) (a) Within six (6) months after the activation date, the approved company shall compensate a minimum of ninety percent (90%) of its full-time employees whose jobs were created with base hourly wages equal to either:
      1. Seventy-five percent (75%) of the average hourly wage for the Commonwealth; or
      2. Seventy-five percent (75%) of the average hourly wage for the county in which the project is to be undertaken.
    2. If the base hourly wage calculated in paragraph (a)1. or 2. of this subsection is less than one hundred fifty percent (150%) of the federal minimum wage, then the base hourly wage shall be one hundred fifty percent (150%) of the federal minimum wage. However, for projects receiving preliminary approval of the authority prior to July 1, 2008, the base hourly wage shall be one hundred fifty percent (150%) of the federal minimum wage existing on January 1, 2007. In addition to the applicable base hourly wage calculated above, the eligible company shall provide employee benefits equal to at least fifteen percent (15%) of the applicable base hourly wage; however, if the eligible company does not provide employee benefits equal to at least fifteen percent (15%) of the applicable base hourly wage, the eligible company may qualify under this section if it provides the employees hired by the eligible company as a result of the economic development project total hourly compensation equal to or greater than one hundred fifteen percent (115%) of the applicable base hourly wage through increased hourly wages combined with employee benefits.
    3. The requirements of this subsection shall not apply to eligible companies which are nonprofit corporations established under KRS 273.163 to 273.387 and whose employees are handicapped and sheltered workshop workers employed at less than the established minimum wage as authorized by KRS 337.295 . For an eligible company, within a regional industrial park which lies within two (2) or more counties, the calculation of the wage and benefit requirement shall be determined by averaging the average county hourly wage for all counties within the regional industrial park.
  4. No economic development project which will result in the replacement of agribusiness, manufacturing, or electric generation facilities existing in the state shall be approved by the authority; however, the authority may approve an economic development project that:
    1. Rehabilitates an agribusiness, manufacturing, or electric generation facility:
      1. Which has not been in operation for a period of ninety (90) or more consecutive days;
      2. For which the current occupant of the facility has published a notice of closure so long as the eligible company intending to acquire the facility is not an affiliate of the current occupant; or
      3. The title to which is vested in other than the eligible company or an affiliate of the eligible company and that is sold or transferred pursuant to a foreclosure ordered by a court of competent jurisdiction or an order of a bankruptcy court of competent jurisdiction;
    2. Replaces an agribusiness, manufacturing, or electric generation facility existing in the Commonwealth:
      1. The title to which shall have been taken under the exercise of the power of eminent domain, or the title to which shall be the subject of a nonappealable judgment granting the authority to exercise the power of eminent domain, in either event to the extent that normal operations cannot be resumed at the facility within twelve (12) months; or
      2. Which has been damaged or destroyed by fire or other casualty to the extent that normal operations cannot be resumed at the facility within twelve (12) months; or
    3. Replaces an existing agribusiness, manufacturing, or electric generation facility located in the same qualified county, and the existing agribusiness, manufacturing, or electric generation facility to be replaced cannot be expanded due to the unavailability of real estate at or adjacent to the agribusiness, manufacturing, or electric generation facility to be replaced. Any economic development project satisfying the requirements of this subsection shall only be eligible for inducements to the extent of the expansion, and no inducements shall be available for the equivalent of the agribusiness, manufacturing, or electric generation facility to be replaced. No economic development project otherwise satisfying the requirements of this subsection shall be approved by the authority which results in a lease abandonment or lease termination by the approved company without the consent of the lessor.
  5. With respect to each eligible company making an application to the authority for inducements, and with respect to the economic development project described in the application, the authority shall request materials and make inquiries of the applicant as necessary or appropriate. Upon review of the application and completion of initial inquiries, the authority may, by resolution, give its preliminary approval by designating an eligible company as a preliminarily approved company and authorizing the undertaking of the economic development project. After preliminary approval, the authority may by final approval designate an eligible company to be an approved company.

History. Repealed, reenact. and amend. Acts 1992, ch. 105, § 25, effective July 14, 1992; 1992, ch. 360, § 5, effective July 14, 1992; 1992, ch. 363, § 13, effective July 14, 1992; 1994, ch. 450, § 5, effective July 15, 1994; 1996, ch. 194, § 30, effective July 15, 1996; 1996, ch. 271, § 8, effective July 15, 1996; 1998, ch. 349, § 1, effective July 15, 1998; 1998, ch. 584, § 1, effective July 15, 1998; 2000, ch. 321, § 3, effective July 14, 2000; 2002, ch. 338, § 20, effective July 15, 2002; 2004, ch. 84, § 1, effective April 6, 2004; 2006, ch. 211, § 70, effective July 12, 2006; 2007, ch. 69, § 2, effective June 26, 2007; 2009, ch. 11, § 38, effective June 25, 2009; 2019 ch. 146, § 20, effective June 27, 2019; 2020 ch. 98, § 14, effective July 15, 2020.

Compiler’s Notes.

This section was formerly compiled as KRS 152.276 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 25, effective July 14, 1992.

Research References and Practice Aids

Kentucky Law Journal.

Spencer, Evaluating Kentucky’s Investment Tax Credits in Light of Cuno v. DaimlerChrysler, Inc. , 94 Ky. L.J. 161 (2005/2006).

154.22-050. Tax incentive agreements between authority and approved companies — Time limits — Extensions — Tax credits and assessments as inducements for approved companies — Assignment of tax incentive agreement — Documentation of expenditures — Suspension of inducements — Authority’s remedies in case of failure to comply — Activation date.

The authority may enter into, with any approved company, a tax incentive agreement with respect to its economic development project, upon adoption of a resolution authorizing the tax incentive agreement. Subject to the inclusion of the mandatory provisions set forth below, the terms and provisions of each tax incentive agreement shall be determined by negotiations between the authority and the approved company.

  1. The tax incentive agreement shall set forth the maximum amount of inducements available to the approved company for recovery of the approved costs authorized by the authority and expended by the approved company.
  2. The approved company shall expend the authorized approved costs for the economic development project within three (3) years of the date of the final approval by the authority.
  3. The approved company shall provide the authority with documentation as to the expenditures for approved costs in a manner acceptable to the authority.
    1. The term of the tax incentive agreement shall commence upon the activation date and shall terminate upon the earlier of the full receipt of the maximum amount of inducements by the approved company or fifteen (15) years after the activation date unless paragraph (b) of this subsection applies. (4) (a) The term of the tax incentive agreement shall commence upon the activation date and shall terminate upon the earlier of the full receipt of the maximum amount of inducements by the approved company or fifteen (15) years after the activation date unless paragraph (b) of this subsection applies.
      1. An approved company may request an extension of the fifteen (15) year term as provided in this paragraph. The extension may be granted by the authority for up to ten (10) years under the following conditions: (b) 1. An approved company may request an extension of the fifteen (15) year term as provided in this paragraph. The extension may be granted by the authority for up to ten (10) years under the following conditions:
        1. The approved company commits to an additional investment or the creation of additional jobs at the approved economic development project;
        2. The approved company consolidates operations, facilities, or services currently located in another state to the Kentucky facility;
        3. At the time the extension is granted, the approved company has used less than sixty percent (60%) of the inducements awarded under the tax incentive agreement; and
        4. The authority shall not increase the maximum amount of incentives established by the existing tax incentive agreement.
      2. If the authority approves the extension, the tax incentive agreement shall be amended as necessary to extend the term, and to incorporate any additional requirements established by the authority as required by this paragraph.
  4. The tax incentive agreement shall include the activation date. To implement the activation date, the approved company shall notify the authority, the Department of Revenue, and the approved company’s employees of the activation date when the implementation of the inducements authorized in the tax incentive agreement shall occur. If the approved company does not satisfy the minimum investment and minimum employment requirements of KRS 154.22-040 (3) by the activation date, the approved company shall not be entitled to receive inducements pursuant to this subchapter until the approved company satisfies the requirements; however, the fifteen (15) year period for the term of the tax incentive agreement shall begin from the activation date. Notwithstanding the previous sentence, if the approved company does not satisfy the minimum investment and minimum employment requirements of KRS 154.22-040 (3) within two (2) years from the date of final approval of the tax incentive agreement, then the approved company shall be ineligible to receive inducements under this subchapter unless an extension is approved by the authority.
  5. The tax agreement shall also state that if the total number of new full-time employees at the site of the economic development project who are residents of the Commonwealth and subject to the Kentucky income tax is less than fifteen (15) at any time after activation, the authorized inducements shall be suspended for a period of up to one (1) year. If the company does not have at least fifteen (15) new full-time employees at the site who are residents of the Commonwealth and subject to Kentucky income tax within one (1) year from the date of the initial suspension, the inducements may be terminated at the discretion of the authority.
  6. The approved company shall comply with the hourly wage criteria set forth in KRS 154.22-040 (4) and provide documentation in connection with hourly wages paid to its full-time employees hired as a result of the economic development project in a manner acceptable to the authority.
  7. The approved company may be permitted the following inducements during the term of the tax incentive agreement:
    1. A one hundred percent (100%) credit against the Kentucky income tax and the limited liability entity tax imposed under KRS 141.0401 that would otherwise be owed in the approved company’s fiscal year, as determined under KRS 141.347 , to the Commonwealth by the approved company on the income, Kentucky gross receipts, or Kentucky gross profits of the approved company generated by or arising from the economic development project. The ordering of the credits shall be as provided in KRS 141.0205 ; and
    2. The aggregate assessments withheld by the approved company in each year.
  8. The credit allowed the approved company shall be applied against both the income tax imposed by KRS 141.020 or 141.040 , and the limited liability entity tax imposed by KRS 141.040 1, with credit ordering as provided in KRS 141.0205 , for the fiscal year for which the tax return of the approved company is filed. The total inducements may not exceed authorized cumulative approved costs paid by the approved company in the period commencing with the date of final approval.
  9. The approved company shall not be required to pay estimated tax payments under KRS 141.044 on the Kentucky taxable income, Kentucky gross receipts or Kentucky gross profits generated by or arising from the economic development project.
  10. The tax incentive agreement may be assigned by the approved company only upon the prior written consent of the authority following the adoption of a resolution by the authority to that effect.
  11. The tax incentive agreement shall provide that if an approved company fails to comply with its obligations under the tax incentive agreement then the authority shall have the right, at its option, to:
    1. Suspend the tax credits and assessments available to the approved company;
    2. Pursue any remedy provided under the tax incentive agreement, including termination thereof; and
    3. Pursue any other remedy at law to which it may be entitled.
  12. All remedies provided in subsection (12) of this section shall be deemed to be cumulative.

History. Repealed, reenact. and amend. Acts 1992, ch. 105, § 26, effective July 14, 1992; 1992, ch. 360, § 6, effective July 14, 1992; 1994, ch. 450, § 6, effective July 15, 1994; 1996, ch. 194, § 31, effective July 15, 1996; 2000, ch. 300, § 18, effective July 14, 2000; 2002, ch. 338, § 21, effective July 15, 2002; 2004, ch. 105, § 3, effective July 13, 2004; 2005, ch. 85, § 576, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 44, effective June 28, 2006; 2010, ch. 152, § 1, effective July 15, 2010; 2019 ch. 151, § 64, effective June 27, 2019.

Compiler’s Notes.

This section was formerly compiled as KRS 152.278 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 26, effective July 14, 1992.

Legislative Research Commission Notes.

(6/27/2019). Section 85 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 64 of that Act apply retroactively to April 14, 2018.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

Research References and Practice Aids

Kentucky Law Journal.

Spencer, Evaluating Kentucky’s Investment Tax Credits in Light of Cuno v. DaimlerChrysler, Inc. , 94 Ky. L.J. 161 (2005/2006).

154.22-055. Financing agreement — Adoption — Publication. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 360, § 10, effective July 14, 1992; 1994, ch. 450, § 7, effective July 15, 1994) was repealed by Acts 2000, ch. 300, § 25, effective July 14, 2000.

154.22-060. Determination of income tax credit by Department of Revenue.

  1. The approved company shall be entitled to a credit against the Kentucky tax liability mandated by KRS Chapter 141, as determined under KRS 141.347 . The credit shall be equal to the total amount of the tax liability, and together with the aggregate assessments not to exceed the maximum amount of inducements as set forth in the tax incentive agreement.
  2. By October 1 of each year, the Department of Revenue of the Commonwealth shall certify to the authority in the form of an annual report, aggregate income tax credits claimed on tax returns filed during the fiscal year ending June 30 of that year, and assessments taken by approved companies with respect to their economic development projects during the prior calendar year under this subchapter, and shall certify to the authority, within ninety (90) days from the date an approved company has filed its state income tax return, when an approved company has taken income tax credits equal to its total inducements.

History. Repealed, reenact. and amend. 1992, ch. 105, § 27, effective July 14, 1992; 1992, ch. 360, § 7, effective July 14, 1992; 1994, ch. 450, § 8, effective July 15, 1994; 1996, ch. 194, § 32, effective July 15, 1996; 2000, ch. 300, § 19, effective July 14, 2000; 2002, ch. 338, § 22, effective July 15, 2002; 2005, ch. 85, § 577, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 45, effective June 28, 2006.

Compiler’s Notes.

This section was formerly compiled as KRS 152.280 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 27, effective July 14, 1992.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.22-070. Assessment based on employee’s gross wages — Credits against Kentucky income tax.

  1. The approved company or, with the authority’s consent, an affiliate of the approved company may require that each employee subject to state tax imposed by KRS 141.020 , as a condition of employment, agree to pay an assessment, equal to four percent (4%) of the gross wages of each employee whose job was created as a result of the economic development project, for the purpose of recovering authorized approved costs as set forth in the tax incentive agreement.
  2. Each employee so assessed shall be entitled to credits against Kentucky income tax equal to the assessment withheld from wages during the calendar year as provided by KRS 141.310 and 141.350 .
  3. If an approved company shall elect to impose the assessment as a condition of employment, it shall be authorized to deduct the assessment from each paycheck of each employee.
  4. Any approved company collecting an assessment as provided in subsection (1) of this section shall make its payroll books and records available to the authority at such reasonable times as the authority shall request and shall file with the authority documentation respecting the assessment as the authority may require.

History. Repealed, reenact. and amend. Acts 1992, ch. 105, § 28, effective July 14, 1992; 1992, ch. 360, § 8, effective July 14, 1992; 1994, ch. 450, § 9, effective July 15, 1994; 1996, ch. 194, § 33, effective July 15, 1996; 1996, ch. 337, § 2, effective July 15, 1996; 2002, ch. 338, § 23, effective July 15, 2002.

Compiler’s Notes.

This section was formerly compiled as KRS 152.282 and was repealed, reenacted, and amended as this section by Acts 1992, ch. 105, § 28, effective July 14, 1992.

154.22-080. Application of law prior to July 15, 1994, in certain circumstances.

If the authority adopts a preliminary resolution designating an eligible company as an approved company and preliminarily approving the project of the eligible company as an economic development project prior to July 15, 1994, and the authority adopts a final resolution approving the eligible company as an approved company and the project of the eligible company as an economic development project, and the authority and the eligible company enter into a financing agreement no later than June 30, 1995, then the approved company thereafter shall be subject to KRS 154.22-010 to 154.22-070 as in effect prior to July 15, 1994.

History. Enact. Acts 1994, ch. 450, § 10, effective July 15, 1994; 1996, ch. 194, § 66, effective July 15, 1996; 2002, ch. 338, § 44, effective April 11, 2002.

154.22-081. Short title for KRS 154.22-010 to 154.22-080.

KRS 154.22-010 to 154.22-080 shall be known as the Kentucky Rural Economic Development Act.

History. Enact. Acts 1996, ch. 194, § 28, effective July 15, 1996.

154.22-083. Deadline for new applications — Governing law for outstanding approved projects.

New applications shall not be accepted or considered under this subchapter on or after June 26, 2009. All outstanding projects with preliminary or final approval under this subchapter as of June 26, 2009, shall continue to be governed by the provisions of this subchapter.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 25, effective June 26, 2009.

154.22-090. Exemption of approved company from application of certain statutes. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 194, § 34, effective July 15, 1996; 2000, ch. 321, § 4, effective July 14, 2000) was repealed by Acts 2002, ch. 338, § 49, effective July 15, 2002.

154.22-100. Approved company’s ability to elect to reduce job assessment fee rate imposed prior to July 15, 1996.

  1. If an approved company’s financing agreement in effect prior to July 15, 1996, stipulates that the approved company elects to impose a six percent (6%) job development assessment fee pursuant to KRS 154.22-070 as in effect prior to July 15, 1996, the approved company, subject to provisions of subsection (2) of this section, may elect to change the job development fee rate from six percent (6%) as prescribed in KRS 154.22-070 as in effect prior to July 15, 1996, to four percent (4%) as set forth in KRS 154.22-070.
  2. An approved company may elect to reduce the job assessment fee rate as prescribed in subsection (1) of this section if the financing agreement respecting the approved company’s approved project is amended upon written approval of all parties thereto, and the approved company attests in writing to the satisfaction of the authority that the approved company has not entered into any other agreement by which the company has pledged the proceeds of a six percent (6%) job development assessment fee as partial or full payment of any debt or other obligation to any other party.

History. Enact. Acts 1996, ch. 337, § 3, effective July 15, 1996; 2000, ch. 539, § 1, effective July 14, 2000.

154.22-102. Application of statutes to companies that are approved and that enter into agreements by certain dates.

If the authority adopts a preliminary resolution designating an eligible company as an approved company and preliminarily approving the project of the eligible company as an economic development project prior to July 15, 2002, and the authority adopts a final resolution approving the eligible company as an approved company and the project of the eligible company as an economic development project, and the authority and the eligible company enter into a financing agreement no later than June 30, 2003, then the approved company thereafter shall be subject to KRS 154.22-010 to 154.22-100 as in effect prior to July 15, 2002.

History. Enact. Acts 2002, ch. 338, § 24, effective July 15, 2002.

SUBCHAPTER 23. Economic Development Projects in Qualified Zones

Kentucky Economic Opportunity Zone Act

154.23-005. Legislative findings for KRS 154.23-005 to 154.23-079.

The General Assembly hereby finds and declares as follows:

  1. That the general welfare and material well-being of the citizens of the Commonwealth, particularly those residing in qualified zones, depends in large measure upon development and growth of manufacturing and service or technology industries in the Commonwealth;
  2. It is in the best interest of the Commonwealth to create new sources of tax revenues for the support of public services, to induce the location and expansion of manufacturing and service or technology industries within qualified zones, and to advance the public purposes of relieving unemployment and providing employment opportunities that would not exist but for the inducements offered by the authority to eligible companies; and
  3. That the authority granted by KRS 154.23-005 to 154.23-079 and purposes to be accomplished under KRS 154.23-005 to 154.23-079 are proper governmental and public purposes for which public moneys may be expended, and the inducements for the location and expansion of manufacturing and service or technology industries within qualified zones is of paramount importance, for which KRS 154.23-005 to 154.23-079 shall be liberally construed and applied to advance public purposes.

History. Enact. Acts 2000, ch. 528, § 1, effective July 14, 2000.

154.23-010. Definitions for KRS 154.23-005 to 154.23-079.

As used in KRS 154.23-005 to 154.23-079 , unless the context clearly indicates otherwise:

  1. “Affiliate” has the same meaning as in KRS 154.22-010 ;
  2. “Approved company” means an eligible company that locates an economic development project in a qualified zone, as provided for in KRS 154.23-030 ;
  3. “Approved costs” means:
    1. For an approved company that establishes a new manufacturing facility or expands an existing manufacturing facility, the following obligations incurred in its economic development project, including rent under leases subject to subsection (8)(b)4. of this section:
      1. The cost of labor, contractors, subcontractors, builders, and material workers in connection with the acquisition, construction, installation, equipping, and rehabilitation of an economic development project;
      2. The cost of acquiring real estate or rights in land and any cost incidental thereto, including recording fees;
      3. The cost of contract bonds and insurance of all kinds that may be required or necessary during the course of acquisition, construction, installation, equipping, and rehabilitation of an economic development project that is not paid by the contractor or contractors or otherwise provided for;
      4. The cost of architectural and engineering services, including test borings, surveys, estimates, plans and specifications, preliminary investigations, and supervision of construction, as well as for the performance of all duties required by or consequent to the acquisition, construction, installation, equipping, and rehabilitation of an economic development project;
      5. All costs required to be paid under the terms of any contract for the acquisition, construction, installation, equipping, and rehabilitation of an economic development project; and
      6. All other costs of a nature comparable to those described above; or
    2. For an approved company that establishes a new service or technology business or expands existing service or technology operations, up to a maximum of fifty percent (50%) of the total start-up costs during the term of the service and technology agreement, plus up to a maximum of fifty percent (50%) of the annual rent for each elapsed year of the service and technology agreement;
  4. “Assessment” means the job development assessment fee authorized by KRS 154.23-055 ;
  5. “Authority” means the Kentucky Economic Development Finance Authority, as created in KRS 154.20-010 ;
  6. “Average hourly wage” means the wage and employment data published by the Department of Workforce Investment within the Education and Workforce Development Cabinet collectively translated into wages per hour based on a two thousand eighty (2,080) hour work year for the following sectors:
    1. Manufacturing;
    2. Transportation, communications, and public utilities;
    3. Wholesale and retail trade;
    4. Finance, insurance, and real estate; and
    5. Services;
  7. “Commonwealth” means the Commonwealth of Kentucky;
  8. “Economic development project” or “project” means:
    1. A new or expanded service or technology activity conducted at a new or expanded site by:
      1. An approved company; or
      2. An approved company and its affiliate or affiliates; or
    2. Any of the following activities of an approved company engaged in manufacturing:
      1. The acquisition of or present ownership in any real estate in a qualified zone for the purposes described in KRS 154.23-005 to 154.23-079 , which ownership shall include only fee simple ownership of real estate and possession of real estate according to a capital lease as determined in accordance with Statement of Financial Accounting Standards No. 13, Accounting for Leases, issued by the Financial Accounting Standards Board, November 1976;
      2. The acquisition or present ownership of improvements or facilities on land that is possessed or is to be possessed by the approved company in a ground lease having a term of sixty (60) years or more; provided, however, that this project shall not include lease payments made under a ground lease for purposes of calculating the tax credits offered under KRS 154.23-005 to 154.23-079 ;
      3. The construction, installation, equipping, and rehabilitation of improvements, fixtures, equipment, and facilities necessary or desirable for improvement of the real estate owned, used, or occupied by the approved company for manufacturing purposes. Construction activities include surveys; site tests and inspections; subsurface site work; excavation; removal of structures, roadways, cemeteries, and other surface obstructions; filling, grading, and providing drainage and storm water retention; installation of utilities such as water, sewer, sewage treatment, gas, electric, communications, and similar facilities; off-site construction of utility extensions to the boundaries of the real estate; or similar activities as the authority may determine necessary for construction; and
      4. The leasing of real estate and the buildings and fixtures thereon acquired, constructed, and installed with funds from grants under KRS 154.23-060 ;
  9. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other legal entity engaged in manufacturing, or service or technology; however, any company whose primary purpose is retail sales shall not be an eligible company;
  10. “Employee benefits” means nonmandated costs paid by an eligible company for its full-time employees for health insurance, life insurance, dental insurance, vision insurance, defined benefits, 401(k), or similar plans;
  11. “Final approval” means action taken by the authority that authorizes the eligible company to receive inducements in connection with a project under KRS 154.23-005 to 154.23-079 ;
  12. “Full-time employee” means a person employed by an approved company for a minimum of thirty-five (35) hours per week and subject to the state income tax imposed by KRS 141.020 ;
  13. “Inducements” means the assessment and the income tax credits allowed to an approved company under KRS 154.23-050 and 154.23-055 ;
  14. “Local government” means a city, county, or urban-county government;
  15. “Manufacturing” means to make, assemble, process, produce, or perform any other activity that changes the form or conditions of raw materials and other property, and shall include any ancillary activity to the manufacturing process, such as storage, warehousing, distribution, and related office facilities; however, “manufacturing” shall not include mining, the extraction of minerals or coal, or processing of these resources;
  16. “Person” means an individual, sole proprietorship, partnership, limited partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, entity or government, whether federal, state, county, city, or otherwise, including without limitation any instrumentality, division, political subdivision, district, court, agency, or department thereof;
  17. “Preliminary approval” means action taken by the authority that conditions final approval of an eligible company and its economic development project upon satisfaction by the eligible company of the applicable requirements under KRS 154.23-005 to 154.23-079 ;
  18. “Qualified employee” means an individual subject to Kentucky income tax who has resided in the qualified zone where the project exists for at least twelve (12) consecutive months preceding full-time employment by an approved company;
  19. “Qualified statewide employee” means an individual subject to Kentucky income tax who has resided in any census tract or county in the Commonwealth that meets the criteria in KRS 154.23-015 , regardless of whether the tract or county is in a qualified zone, for at least twelve (12) consecutive months preceding full-time employment by an approved company;
  20. “Qualified zone” means any census tract or county certified as such by the authority in KRS 154.23-015 and 154.23-020 ;
  21. “Rent” means:
    1. The actual annual rent or leasing fee paid by an approved company to a bona fide entity negotiated at arm’s length for the use of a building by the approved company to conduct the approved project for which the inducement has been granted; or
    2. The fair rental value on an annual basis in a building owned by the approved company of the space used by the approved company to conduct the approved project for which the inducement has been granted as determined by the authority using criteria that are customary in the real estate industry for the type of building being used. The fair rental value shall include an analysis of the cost of amortizing the cost of land and building over the period of time customary in the real estate industry for the type of building and for the land being utilized; and
    3. Rent shall include the customary cost of occupancy, including but not limited to property taxes, heating and air conditioning, electricity, water, sewer, and insurance;
  22. “Service and technology agreement” means any agreement entered into under KRS 154.23-040 on behalf of the authority, an approved company engaged in service or technology, and third-party lessors, if applicable, with respect to an economic development project;
    1. “Service or technology” means either: (23) (a) “Service or technology” means either:
      1. Any activity involving the performance of work, except work classified by the divisions, including successor divisions, of agriculture, forestry and fishing, mining, utilities, construction, manufacturing, wholesale trade, retail trade, real estate rental and leasing, educational services, accommodation and food services, and public administration in accordance with the “North American Industry Classification System,” as revised by the United States Office of Management and Budget from time to time, or any successor publication; or
      2. Regional or headquarters operations of an entity engaged in an activity listed in subparagraph 1. of this paragraph.
    2. Notwithstanding paragraph (a) of this subsection, “service or technology” shall not include any activity involving the performance of work by an individual who is providing direct service to the public pursuant to a license issued by the state or an association that licenses in lieu of the state;
  23. “Start-up costs” means the acquisition cost associated with the project and related to furnishing and equipping a building for ordinary business functions, including computers, nonrecurring costs of fixed telecommunication equipment, furnishings, office equipment, and the relocation of out-of-state equipment, as verified and approved by the authority in accordance with KRS 154.23-040 ;
  24. “Tax incentive agreement” means that agreement entered into pursuant to KRS 154.23-035 between the authority and an approved company with respect to an economic development project;
  25. “Kentucky gross receipts” means Kentucky gross receipts as defined in KRS 141.0401 ; and
  26. “Kentucky gross profits” means Kentucky gross profits as defined in KRS 141.0401 .

History. Enact. Acts 2000, ch. 528, § 2, effective July 14, 2000; 2002, ch. 338, § 25, effective July 15, 2002; 2004, ch. 105, § 4, effective July 13, 2004; 2006, ch. 149, § 217, effective July 12, 2006; 2006, ch. 211, § 71, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 46, effective June 28, 2006; 2007, ch. 137, § 44, effective June 26, 2007; 2009, ch. 11, § 39, effective June 25, 2009; repealed and reenact., Acts 2010, ch. 51, § 44, effective July 15, 2010; 2019 ch. 146, § 21, effective June 27, 2019.

Legislative Research Commission Note.

(7/15/2010). 2010 Ky. Acts ch. 51, sec. 183, provides, “The specific textual provisions of Sections 1 to 178 of this Act which reflect amendments made to those sections by 2007 Ky. Acts ch. 137 shall be deemed effective as of June 26, 2007, and those provisions are hereby made expressly retroactive to that date, with the remainder of the text of those sections being unaffected by the provisions of this section.”

(7/12/2006). In 2006 Ky. Acts ch. 149, almost all references in the Kentucky Revised Statutes to “registered limited liability partnerships” were removed by amendments to various sections of the KRS. However, in this section and in sec. 216 of the bill, KRS 154.22-010 , this phrase was not changed or deleted. It appears that leaving this phrase in these two sections was an oversight.

(7/12/2006). A reference in subsection (3)(a) of this section has been corrected in codification to read “subsection (8)(b)4.” because the necessary adjustments to this internal reference were not made in either 2002 Ky. Acts ch. 338, sec. 25, or 2006 Ky. Acts ch. 149, sec. 217, each of which inserted a new subsection into this statute. The Reviser of Statutes has corrected these oversights under the authority of KRS 7.136(1)(e) and (h).

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

Research References and Practice Aids

Kentucky Law Journal.

Rutledge, The 2007 Amendments to the Kentucky Business Entity Statutes, 97 Ky. L.J. 229 (2008).

154.23-015. Certification of qualified zones — Use of census tracts — Decertification of census tracts — Replacement of decertified noncontiguous tract with other qualifying census tract.

  1. Upon written application by a county, urban-county government, or city of the first class, the authority shall certify one (1) to five (5) contiguous census tracts or a county certified by the authority in accordance with KRS 154.22-040 as a qualified zone. In the case of certification based on one (1) to five (5) contiguous census tracts, each census tract shall independently meet each of the following criteria, as verified by the Department of Workforce Investment in the Education and Workforce Development Cabinet:
    1. A minimum total poverty rate of one hundred fifty percent (150%) of the United States poverty rate as determined by the most recent decennial census;
    2. An unemployment rate that exceeds the statewide unemployment rate as determined on the basis of the most recent decennial census; and
    3. A minimum population density of two hundred percent (200%) of the average Kentucky census tract population density as determined by the most recent decennial census.
  2. Census tract information shall be based upon United States census data as set forth in the most recent edition of Census of Population and Housing: Population and Housing Characteristics for Census Tracts and Block Numbering Areas published by the United States Bureau of the Census.
  3. The authority shall certify no more than one (1) qualified zone within each county of the Commonwealth, except in the case of a county certified under KRS 154.22-040 , the entire county shall constitute the qualified zone.
  4. A qualified zone shall commence on the date of certification by the authority and continue thereafter, except that at the time new decennial census data becomes available, the authority shall decertify any census tract that no longer meets the criteria of subsection (1) of this section for qualified zone status. The authority shall not give preliminary approval to any project in a decertified census tract. An approved company whose project is located in a decertified census tract shall not be eligible for the inducements offered by KRS 154.23-005 to 154.23-079 , unless the tax incentive agreement or service and technology agreement is entered into by all parties prior to July 1 of the year following the calendar year in which the authority decertified that tract.
  5. If decertification causes a formerly certified contiguous census tract to become noncontiguous, the applicant shall have the discretion to eliminate or maintain the noncontiguous tract. If the applicant eliminates the noncontiguous tract, it may replace the noncontiguous tract with another qualifying census tract, subject to approval of the authority.
  6. A county, urban-county government, or city of the first class shall have no authority to request decertification of a census tract, and any addition of a census tract requested by a county, urban-county government, or city of the first class under KRS 154.23-020 shall be contiguous to a census tract that continues to meet the criteria under this section.
  7. The authority shall pay its costs of counsel relating to zone certification.

History. Enact. Acts 2000, ch. 528, § 3, effective July 14, 2000; 2002, ch. 338, § 26, effective July 15, 2002; 2004, ch. 105, § 5, effective July 13, 2004; 2006, ch. 211, § 72, effective July 12, 2006; 2009, ch. 11, § 40, effective June 25, 2009; 2019 ch. 146, § 22, effective June 27, 2019.

154.23-020. Amendment of boundaries of qualified zones.

  1. When new decennial census data becomes available, a county, urban-county government, or city of the first class may apply in writing to the authority for amendment to the boundary of an existing qualified zone. A boundary change to an existing qualified zone shall not become effective until written approval has been granted by the authority.
  2. A county, urban-county government, or city of the first class that applies to the authority to amend the boundary of an existing qualified zone shall certify in writing to the authority the following information:
    1. Any census tract proposed for amendment is contiguous to the existing qualified zone;
    2. The census tract proposed for amendment independently meets the population density, unemployment, and poverty requirements set forth in KRS 154.23-015 based on decennial census figures; and
    3. The addition of the census tract or tracts proposed shall not enlarge the qualified zone to more than five (5) census tracts.

History. Enact. Acts 2000, ch. 528, § 4, effective July 14, 2000.

154.23-025. Standards for approval of companies and economic development projects — Commitments to be made by eligible companies.

  1. Relevant standards for approval of eligible companies and economic development projects shall include but are not limited to creditworthiness of the eligible company, the number of new jobs to be provided by a project to Kentucky residents, and the likelihood that the project will be an economic success.
  2. An eligible company shall certify to the authority by written application that it makes the following commitments in an economic development project:
    1. A minimum investment of one hundred thousand dollars ($100,000) in the project;
    2. Creation of a minimum of ten (10) new full-time jobs at the project site for qualified employees by the activation date, as set forth in KRS 154.23-035 or 154.23-040 ;
    3. A statement that no significant number of existing jobs in the Commonwealth will be lost or adversely affected due to approval of the eligible company and its economic development project; and
    4. A statement that the economic development project could reasonably and efficiently locate outside the qualified zone and, without the inducements offered by the authority, the eligible company would likely locate outside the zone.
    1. No project that will result in the replacement of an existing manufacturing or service or technology facility existing in the Commonwealth shall be approved by the authority; however, the authority may approve a project if the project is one: (3) (a) No project that will result in the replacement of an existing manufacturing or service or technology facility existing in the Commonwealth shall be approved by the authority; however, the authority may approve a project if the project is one:
        1. That rehabilitates a manufacturing or service or technology facility that has not been in operation; 1. a. That rehabilitates a manufacturing or service or technology facility that has not been in operation;
        2. For which the current occupant of the facility has published a notice of closure so long as the eligible company intending to acquire the facility is not an affiliate of the current occupant; or
        3. To which the title is vested in one other than the eligible company and that is sold or transferred under a foreclosure ordered by a court of competent jurisdiction or by order of bankruptcy court;
      1. Replaces a manufacturing or service or technology facility existing in the Commonwealth that been damaged or destroyed by fire, or the title to which shall have been taken under the exercise of the power of eminent domain or is the subject of a nonappealable judgment that grants the power of eminent domain to the authority, in any of these events to the extent that normal operations cannot be resumed at the facility within twelve (12) months; or
      2. Replaces an existing manufacturing or service or technology facility located in the same qualified zone that cannot be expanded due to the lack of available real estate at or adjacent to the manufacturing or service or technology facility to be replaced. Any economic development project satisfying the requirements of this paragraph shall only be eligible for inducements to the extent of the expansion, and no inducements shall be available for the equivalent of the manufacturing or service or technology facility to be replaced.
    2. No economic development project otherwise satisfying the requirements of paragraph (a) of this subsection shall be approved by the authority that results in a lease abandonment or lease termination by the approved company without the consent of the lessor.
    1. Within six (6) months after the activation date, the approved company shall compensate a minimum of ninety percent (90%) of its full-time employees whose jobs were created with base hourly wages equal to either: (4) (a) Within six (6) months after the activation date, the approved company shall compensate a minimum of ninety percent (90%) of its full-time employees whose jobs were created with base hourly wages equal to either:
      1. Seventy-five percent (75%) of the average hourly wage for the Commonwealth; or
      2. Seventy-five percent (75%) of the average hourly wage for the county in which the project is to be undertaken.
    2. If the base hourly wage calculated in paragraph (a)1. or 2. of this subsection is less than one hundred fifty percent (150%) of the federal minimum wage, then the base hourly wage shall be one hundred fifty percent (150%) of the federal minimum wage. However, for projects receiving preliminary approval of the authority prior to July 1, 2008, the base hourly wage shall be one hundred fifty percent (150%) of the federal minimum wage existing on January 1, 2007. In addition to the applicable base hourly wage calculated above, the eligible company shall provide employee benefits equal to at least fifteen percent (15%) of the applicable base hourly wage; however, if the eligible company does not provide employee benefits equal to at least fifteen percent (15%) of the applicable base hourly wage, the eligible company may qualify under this section if it provides the employees hired by the eligible company as a result of the economic development project total hourly compensation equal to or greater than one hundred fifteen percent (115%) of the applicable base hourly wage through increased hourly wages combined with employee benefits.

History. Enact. Acts 2000, ch. 528, § 5, effective July 14, 2000; 2002, ch. 338, § 27, effective July 15, 2002; 2004, ch. 105, § 6, effective July 13, 2004; 2007, ch. 69, § 3, effective June 26, 2007.

154.23-030. Preliminary approval of eligible companies — Designation of approved companies.

  1. With respect to each eligible company that applies to the authority for inducements, and with respect to the project described in its application, the authority shall request materials and make all inquiries concerning the application the authority deems necessary. Upon review of the application and requested materials, and completion of initial inquiries, the authority may, by resolution of the board of directors, grant preliminary approval to the eligible company. The authority shall approve a report describing the economic development project, that shall set out as follows:
    1. The name, qualified zone location, business, and standard industrial classification of the eligible company;
    2. The nature of the economic development project;
    3. The use and projected amounts of the inducements to be available to the eligible company by year; and
    4. Other information as the authority may require.
  2. After preliminary approval, the authority may, by resolution of its board of directors, designate an eligible company to be an approved company, and execute a tax incentive agreement between the approved company and the authority.
  3. Within a one (1) year period following preliminary approval of an eligible company engaged in service or technology activities with respect to its economic development project, the authority may designate the eligible company as an approved company and execute a service and technology agreement among the approved company, the authority, and lessors, if applicable. If final approval of an eligible company does not occur within the one (1) year period as provided in this subsection, then the eligible company’s request for designation and project authorization shall be considered denied.
  4. The decision to grant an eligible company the status of an approved company shall be solely that of the authority, which shall base its decision upon consideration of all information provided.

History. Enact. Acts 2000, ch. 528, § 6, effective July 14, 2000; 2002, ch. 338, § 28, effective July 15, 2002.

154.23-035. Tax incentive agreements between authority and approved companies — Time limits — Tax credits and assessments as inducements for approved companies — Assignment of tax incentive agreement — Documentation of expenditures — Suspension of inducements — Authority’s remedies in case of failure to comply — Activation date — Costs of counsel.

The authority, upon adoption of an authorizing resolution, may enter into a tax incentive agreement with any approved company engaged in manufacturing activities with respect to its economic development project. The terms and provisions of each tax incentive agreement, including the amount of approved costs, shall be determined by negotiations between the authority and the approved company, subject to the inclusion of the following mandatory provisions:

  1. The tax incentive agreement shall set forth the maximum amount of inducements available to the approved company for recovery of the approved costs authorized by the authority and expended by the approved company.
  2. The approved company shall expend the authorized approved costs within three (3) years of the date of the final approval by the authority.
  3. The approved company shall provide the authority with documentation as to the expenditures for approved costs in a manner acceptable to the authority.
  4. The term of the tax incentive agreement shall commence upon the activation date and will terminate upon the earlier of the full receipt of the maximum amount of inducements by the approved company or ten (10) years after the activation date.
  5. The tax incentive agreement shall include the activation date, which shall be a date selected by the approved company within two (2) years of the date of final approval by the authority of the tax incentive agreement. If the approved company does not satisfy the minimum investment and minimum employment requirements of KRS 154.23-025 by the activation date, the approved company shall not be entitled to receive inducements pursuant to this subchapter until the approved company satisfies the requirements; however, the ten (10) year period for the term of the tax incentive agreement shall begin from the activation date. Notwithstanding the previous sentence, if the approved company does not satisfy the minimum investment and minimum employment requirements of KRS 154.23-025 within two (2) years from the date of final approval of the tax incentive agreement, then the approved company shall be ineligible to receive inducements under this subchapter unless an extension is approved by the authority.
  6. The approved company shall comply with the hourly wage criteria set forth in KRS 154.23-025 (4) and provide documentation in connection with hourly wages paid to its full-time employees hired as a result of the economic development project in a manner acceptable to the authority.
  7. The approved company may be permitted the following inducements during the term of the tax incentive agreement:
    1. A one hundred percent (100%) credit against the Kentucky income tax and the limited liability entity tax imposed under KRS 141.0401 that would otherwise be owed in the approved company’s fiscal year, as determined under KRS 141.401 , to the Commonwealth by the approved company on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the economic development project. The ordering of the credits shall be as provided in KRS 141.0205 ; and
    2. The aggregate assessments withheld by the approved company each year.
  8. The total inducements may not exceed authorized cumulative approved costs paid by the approved company in the three (3) year period commencing with and after the date of final approval.
  9. The tax credited to the approved company shall be credited for the fiscal year for which the tax return of the approved company is filed. The approved company shall not be required to pay estimated income tax payments under KRS 141.044 on the Kentucky taxable income, Kentucky gross receipts or Kentucky gross profits generated by or arising from the economic development project.
  10. The tax incentive agreement may be assigned by the approved company only upon the prior written consent of the authority following the adoption of a resolution by the authority to that effect.
  11. The tax incentive agreement shall provide that if the total number of full-time qualified employees at the site of the economic development project is less than ten (10), the authorized inducements shall be suspended for a period of up to one (1) year. If the company does not have at least ten (10) new full-time qualified employees at the site within one (1) year from the date of the initial suspension, the inducements may be terminated at the discretion of the authority.
  12. The tax incentive agreement shall provide that if an approved company fails to comply with its obligations under the tax incentive agreement then the authority shall have the right, at its option, to:
    1. Suspend the tax credits and assessments available to the approved company, pursuant to subsection (11) of this section;
    2. Pursue any remedy provided under the tax incentive agreement, including termination thereof; and
    3. Pursue any other remedy at law to which it may be entitled.
  13. All remedies provided in subsection (12) of this section shall be deemed to be cumulative.
  14. The approved company shall pay all costs of counsel to the authority resulting from approval of its economic development project.

History. Enact. Acts 2000, ch. 528, § 7, effective July 14, 2000; 2002, ch. 338, § 29, effective July 15, 2002; 2004, ch. 105, § 7, effective July 13, 2004; 2006 (1st Ex. Sess.), ch. 2, § 47, effective June 28, 2006; 2019 ch. 151, § 65, effective June 27, 2019.

Legislative Research Commission Notes.

(6/27/2019). Section 85 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 65 of that Act apply retroactively to April 14, 2018.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.23-040. Service and technology agreements — Time limits for meeting minimum investment and employment requirements — Inducements during term of agreements — Suspension or termination of inducements — Approved costs — Reduction of inducements.

  1. Before any approved company engaged in service or technology activity is granted inducements under KRS 154.23-005 to 154.23-079 , a service and technology agreement with respect to the approved company’s economic development project shall be entered into between the authority and the approved company. The terms and provisions of the service and technology agreement, including the amount of approved costs, shall be determined by negotiations between the authority and the approved company, subject to inclusion of the following mandatory provisions:
    1. The term of the service and technology agreement shall commence upon the activation date and shall terminate upon the earlier of the full receipt of the maximum amount of inducements by the approved company or ten (10) years after the activation date.
    2. The service and technology agreement shall include the activation date, which shall be a date selected by the approved company within two (2) years of the date of final approval by the authority of the service and technology agreement. If the approved company does not satisfy the minimum investment and minimum employment requirements of KRS 154.23-025 by the activation date, the approved company shall not be entitled to receive inducements pursuant to this subchapter until the approved company satisfies the requirements; however, the ten (10) year period for the term of the service and technology agreement shall begin from the activation date. Notwithstanding the previous sentence, if the approved company does not satisfy the minimum investment and minimum employment requirements of KRS 154.23-025 within two (2) years from the date of final approval of the service and technology agreement, then the approved company shall be ineligible to receive inducements under this subchapter unless an extension is approved by the authority.
    3. In order to implement the activation date, the approved company shall notify the authority, the Kentucky Department of Revenue, the qualified statewide employees, and the affected local jurisdictions, if any, of the activation date on which implementation of the inducements authorized in the service and technology agreement shall occur;
    4. The approved company may be permitted the following inducements during the term of the service and technology agreement:
      1. A tax credit of up to one hundred percent (100%) of the Kentucky income tax liability imposed by KRS 141.020 , 141.040 , and the limited liability entity tax imposed by KRS 141.040 1 that would otherwise be due, determined under KRS 141.401 , on the income, Kentucky gross receipts, or Kentucky gross profits of the approved company generated by or arising out of the economic development project, as limited by the provisions of this section and KRS 154.23-045 . The ordering of the credits shall be as provided in KRS 141.0205 ; and
      2. The assessment, if applicable, withheld by the approved company in each year;
    5. The inducements allowed to the approved company shall be subtracted from the approved cost balance in the fiscal year of the approved company for which the tax return of the approved company is filed;
    6. If the total number of full-time qualified employees at the site of the economic development project is less than ten (10) or, in the case of an existing business, the approved company fails to maintain the increase of at least ten (10) full-time qualified employees, the authorized inducements shall be suspended for a period of up to one (1) year. If the company does not have at least ten (10) new full-time qualified employees at the site within one (1) year from the date of the initial suspension, the inducements may be terminated at the discretion of the authority;
    7. The service and technology agreement may be assigned by the approved company only upon the prior written consent of the authority; and
    8. The approved company shall pay all costs of counsel to the authority resulting from approval of its economic development project.
  2. Before the end of the first year following the activation date, the authority shall, using data supplied by the approved company, verify and determine the total start-up costs for the approved company’s economic development project. The initial approved costs shall be up to a maximum of fifty percent (50%) of the start-up costs.
  3. Each year, during the ten (10) year term of the service and technology agreement, up to fifty percent (50%) of the annualized rent shall be added to the unrecouped balance of approved costs, and the inducements earned shall be subtracted from the approved costs.
  4. If, in any fiscal year of the approved company during which the service and technology agreement is in effect, the accumulated inducements equal the unrecouped remaining balance of the approved costs then expended, the assessments collected from the wages of the employees shall cease for the remainder of that fiscal year of the approved company, and the approved company shall resume normal personal income tax and occupational license fee withholdings from the qualified statewide employees’ wages for the remainder of that fiscal year.
  5. If, in any fiscal year of the approved company during which the service and technology agreement is in effect, the total of the income tax credit granted to the approved company plus the assessment collected from the wages of the qualified statewide employees exceeds the remaining balance of the approved costs then expended, the approved company shall pay the excess to the Commonwealth as income tax.
  6. If, in any fiscal year of the approved company during which the service and technology agreement is in effect, the assessment collected from the wages of the qualified statewide employees exceeds the unrecouped remaining balance of the approved costs then expended, the assessment collected from the wages of the qualified statewide employees shall cease for the remainder of that fiscal year of the approved company, the approved company shall resume normal personal income tax and occupational license fee withholdings from the qualified statewide employees for the remainder of that fiscal year, and the approved company shall remit to the Commonwealth and applicable local jurisdictions their respective shares of the excess assessment collected on the withholding filing date for qualified statewide employees’ wages next succeeding the first date when the approved company collected excess assessments.

History. Enact. Acts 2000, ch. 528, § 8, effective July 14, 2000; 2004, ch. 105, § 8, effective July 13, 2004; 2005, ch. 85, § 578, effective June 20, 2005; 2006 (Ex. Sess.), ch. 2, § 48, effective June 28, 2006.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.23-045. Application of eligible company to become approved company and expand existing business — Base levels for eligible credits — Exemption of employees from assessment — Increase in number of employees at site — Tax — Additional agreements.

  1. If an eligible company operates an existing business in a qualified zone, and wishes to expand that business within the zone, the eligible company may submit an application to the authority to become an approved company under KRS 154.23-025 .
  2. If the eligible company under subsection (1) of this section becomes an approved company, the authority shall determine a base level of employment in the Commonwealth, a base level of state income tax liability, a base level of limited liability entity tax liability under KRS 141.0401 , and a base level of manufacturing or service or technology activity, as applicable, of the approved company for determining eligible credits for the approved company’s project during the term of a tax incentive agreement or service and technology agreement. The base level shall be determined by taking into consideration any seasonal fluctuations or aberrations of employment levels during the preceding three (3) years. Notwithstanding the determination of a base level of employment in the Commonwealth, no qualified statewide employee who is an employee of this business prior to the date of the preliminary approval by the authority as prescribed in KRS 154.23-030 shall be subject to assessment.
  3. The authority shall identify, by name, all of the existing qualified statewide employees employed by the eligible company prior to preliminary approval, and these employees shall be exempt from the assessment. If any of these employees cease working in the activity, then another qualified statewide employee shall be added to the base level of employment, based on the earliest date of entry into the workforce, and this employee shall be exempt from the assessment. The authority may negotiate with the approved company a different method of determining the base level of employment that would yield a more equitable result for the approved company, the Commonwealth, local jurisdictions, and the qualified statewide employees.
  4. To become eligible for inducements, the approved company shall create and maintain above the base level of employment in the Commonwealth, an increase at the site of the project of at least ten (10) new full-time qualified employees.
  5. The approved company shall continue to pay to the Commonwealth, on an annualized basis during the term of the tax incentive agreement or service and technology agreement, as applicable, the base level of income tax, and the limited liability entity tax imposed under KRS 141.0401 , adjusted on an annual basis to reflect changes in the consumer price index. The excess income tax and limited liability entity tax imposed under KRS 141.0401 owed may be offset by the income tax credit provided in KRS 154.23-050 .
  6. If any approved company expands in a qualified zone because of an increase in business or because of the commencement of a new line of business, it may be eligible, at the discretion of the authority, to negotiate a separate, additional tax incentive agreement or service and technology agreement to cover the expanded business under the same conditions as authorized for an expansion in this section.

History. Enact. Acts 2000, ch. 528, § 9, effective July 14, 2000; 2002, ch. 338, § 30, effective July 15, 2002; 2006 (1st Ex. Sess.), ch. 2, § 49, effective June 28, 2006.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.23-050. Tax credit for approved company engaged in manufacturing, service, or technology activities — Reports by Department of Revenue to authority.

  1. An approved company engaged in manufacturing or in service or technology activities shall be entitled to a tax credit equal to one hundred percent (100%) of the income tax liability and one hundred percent (100%) of the limited liability entity tax liability imposed under KRS 141.0401 that would otherwise be due to the Commonwealth from the approved company attributable to its economic development project, as limited by the provisions of KRS 154.23-045 . The ordering of the credits shall be as provided in KRS 141.0205 .
  2. The Department of Revenue of the Commonwealth shall initiate contact and fully cooperate with the authority in the collection of information to determine the fiscal impact of qualified zone inducements on state revenues. The Department of Revenue shall certify to the authority, in the form of an annual report, aggregate tax credits and assessments taken by approved companies with respect to their economic development projects under KRS 154.23-005 to 154.23-079 , and certify to the authority when an approved company has taken tax credits and assessments equal to its total inducements. The Department of Revenue shall certify to the authority, upon written request of the authority, the aggregate tax credits and assessments taken by an approved company with respect to its economic development project under KRS 154.23-005 to 154.23-079 .

History. Enact. Acts 2000, ch. 528, § 10, effective July 14, 2000; 2005, ch. 85, § 579, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 50, effective June 28, 2006.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.23-055. Assessment based on employee’s gross wages — Amount — Credits against taxes and fees — Prorating of credits and assessments against occupational license fees — Availability of records — Approval of assessment by local government — Cessation of assessments.

  1. If the local jurisdiction in which the economic development project is to be located approves the assessment in accordance with subsection (8) of this section, then an approved company engaged in either manufacturing or service or technology activities or, with the authority’s consent, an affiliate of the approved company, may require each qualified statewide employee, as a condition to employment, to agree to pay an assessment in an amount determined by the percentage of the local occupational license fee, which shall be one-fifth (1/5) of the total assessment, plus the Commonwealth’s contribution of four-fifths (4/5) of the total assessment, but in no event to exceed five percent (5%) of the qualified statewide employee’s gross wages exclusive of any noncash benefits; provided that each qualified statewide employee paying the assessment shall be entitled to credits against Kentucky income tax as prescribed in subsection (4) of this section and to credits against the local occupational license fee to the extent of the local occupational license fee collected by the local jurisdiction. This assessment shall be deducted by the approved company from wages it pays to qualified statewide employees.
  2. Notwithstanding subsection (1) of this section, if no local occupational license fee is assessed by any local government in which the project is located, the assessment shall be four percent (4%), all of which shall be contributed by the Commonwealth.
  3. Notwithstanding subsection (1) of this section, if a project is located in only one (1) local government and that local government has a local occupational license fee that is less than one percent (1%) and the local government agrees to forgo all of its local occupational license fee or if a project is located in multiple local governments and the local governments have in the aggregate local occupational license fees that are less than one percent (1%) and the local governments agree to forgo all of their local occupational license fees, then the assessment shall be four percent (4%), all of which shall be contributed by the Commonwealth, plus the percentage of the local occupational license fee or fees, as applicable, that the local government or local governments, as applicable, has or have agreed to forgo.
  4. Each qualified statewide employee required to pay this assessment shall be entitled to certain credits, as follows:
    1. Credit against the required Kentucky income tax withheld from gross wages under KRS 141.310 equal to the Commonwealth’s contribution, but in no event to exceed four percent (4%) of these wages; and
    2. Credit against the local occupational license fee imposed by any local government in which the project is located in the form of a simultaneous adjustment of the local occupational license fee withheld from gross wages excluding noncash benefits not to exceed one percent (1%) of these wages.
  5. If more than one (1) local government jurisdiction imposes a local occupational license fee and all jurisdictions approve the assessment, then the assessment and employee credit therefor shall be prorated against the local occupational license fees imposed, unless a single local government jurisdiction agrees to forgo receipt of its local occupational license fees in an amount equal to one percent (1%) of the qualified statewide employees’ wages excluding noncash benefits, in which case no proration need be made.
  6. No credit, or portion thereof, shall be allowed against any occupational license fee imposed by or dedicated solely to the board of education in a local jurisdiction.
  7. An approved company that collects an assessment shall make its payroll, books, and records available to the authority at its request, and shall provide all documentation pertaining to the assessment as the authority may require.
  8. Before any tax incentive agreement or service and technology agreement becomes effective with respect to an assessment, the legislative body of any local government that assesses a local occupational license fee and shall lose revenue as a result of the assessment described in this section shall, by official action, approve the assessment for the benefit of an approved company. However, if a local government does not approve the assessment, then the approved company shall not be permitted to impose the assessment and the qualified statewide employees shall not be permitted to claim credits.
  9. Any assessment of the wages of qualified statewide employees of an approved company engaged in service or technology activities in connection with their employment at an economic development project shall permanently cease at the expiration of the service and technology agreement.

History. Enact. Acts 2000, ch. 528, § 11, effective July 14, 2000; 2002, ch. 338, § 31, effective July 15, 2002; 2004, ch. 105, § 9, effective July 13, 2004.

154.23-060. Applications for grant funds — Approved company may apply inducements toward purchase price of property and improvements.

  1. Any county, urban-county government, or city of the first class for which the authority has certified a qualified zone may also apply for grant funds to be used for acquisition of and infrastructure improvements to real estate for economic development purposes and construction and installation for industry of buildings and fixtures.
  2. In addition to the inducements taken, an approved company may apply the amount of the inducements taken towards the purchase price of real estate, infrastructure improvements, buildings, and fixtures purchased, as set forth in subsection (1) of this section, by any county, urban-county government, or city of the first class. For these inducements taken to apply to the purchase price, the approved company shall have taken inducements equal to a minimum of fifty percent (50%) of the original cost of this real estate, infrastructure improvements, buildings, and fixtures.

History. Enact. Acts 2000, ch. 528, § 12, effective July 14, 2000.

154.23-065. Wage subsidies for recipients of Kentucky Transitional Assistance Program.

  1. Approved companies under KRS 154.23-005 to 154.23-079 that hire and employ Kentucky Transitional Assistance Program (K-TAP) recipients on a full-time basis shall be eligible, to the extent funds are available, to receive wage subsidies from the Kentucky Cabinet for Health and Family Services in KRS Chapter 205, Title IV-A of the Federal Social Security Act (Subchapter 4 of Chapter 7 of Title 42, United States Code), and the administrative regulations of the Cabinet for Health and Family Services that address standards and eligibility requirements for K-TAP and subsidized employment.
  2. The wage subsidy for a K-TAP recipient shall be equal to a proportionate amount of the prevailing wage paid by the approved company to all other employees in the same job classification as the K-TAP recipient for one (1) year as follows:
    1. A seventy-five percent (75%) subsidy for the first four (4) months of employment;
    2. A fifty percent (50%) subsidy for the next four (4) months of employment; and
    3. A twenty-five percent (25%) subsidy for the next four (4) months of employment.
  3. During the period of the wage subsidy, the Cabinet for Health and Family Services shall reimburse the employer contribution for FICA and Unemployment Insurance made on behalf of K-TAP recipients.
  4. The Cabinet for Health and Family Services shall collect information to determine the eligibility of recipients and the availability of this subsidy for approved companies.

History. Enact. Acts 2000, ch. 528, § 13, effective July 14, 2000; 2005, ch. 99, § 124, effective June 20, 2005.

154.23-070. Administrative regulations.

The authority shall establish the procedures and standards for certification of qualified zones, and determination and approval of eligible companies and their projects by the promulgation of administrative regulations in accordance with KRS Chapter 13A.

History. Enact. Acts 2000, ch. 528, § 14, effective July 14, 2000.

154.23-075. Exemption from personal liability for directors and officers of authority.

No director or officer of the authority shall be subject to any personal liability or accountability by reason of the execution of any financing agreement or service and technology agreement on behalf of the authority.

History. Enact. Acts 2000, ch. 528, § 15, effective July 14, 2000.

154.23-079. Short title.

KRS 154.23-005 to 154.23-079 shall be known as the Kentucky Economic Opportunity Zone Act.

History. Enact. Acts 2000, ch. 528, § 16, effective July 14, 2000.

154.23-080. Deadline for new applications — Governing law for outstanding approved projects.

New applications shall not be accepted or considered under this subchapter on or after June 26, 2009. All outstanding projects with preliminary or final approval under this subchapter as of June 26, 2009, shall continue to be governed by the provisions of this subchapter.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 26, effective June 26, 2009.

SUBCHAPTER 24. Financing of Jobs Development

154.24-010. Definitions for KRS 154.24-010 to 154.24-150.

The following words and terms, unless the context clearly indicates a different meaning, shall have the following respective meanings in KRS 154.24-010 to 154.24-150 :

  1. “Affiliate” has the same meaning as in KRS 154.22-010 ;
  2. “Agreement” means the service and technology agreement made pursuant to KRS 154.24-120 , between the authority and an approved company with respect to an economic development project;
  3. “Approved company” means any eligible company seeking to locate an economic development project from outside the Commonwealth into the Commonwealth, or undertaking an economic development project in the Commonwealth for which it is approved pursuant to KRS 154.24-100 ;
  4. “Approved costs” means fifty percent (50%) of the total of the start-up costs up to a maximum of ten thousand dollars ($10,000) per new full-time job created and to be held by a Kentucky resident subject to the personal income tax of the Commonwealth, plus fifty percent (50%) of the annual rent for each elapsed year of the service and technology agreement;
  5. “Assessment” means the “service and technology job creation assessment fee” authorized by KRS 154.24-110 ;
  6. “Authority” means the Kentucky Economic Development Finance Authority, as created in KRS 154.20-010 ;
  7. “Average hourly wage” means the wage and employment data published by the Department of Workforce Investment within the Education and Workforce Development Cabinet collectively translated into wages per hour based on a two thousand eighty (2,080) hour work year for the following sectors:
    1. Manufacturing;
    2. Transportation, communications, and public utilities;
    3. Wholesale and retail trade;
    4. Finance, insurance, and real estate; and
    5. Services;
  8. “Commonwealth” means the Commonwealth of Kentucky;
  9. “Economic development project” or “project” means a new or expanded service or technology activity conducted at a new or expanded site by:
    1. An approved company; or
    2. An approved company and its affiliate or affiliates;
  10. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity engaged in service or technology and meeting the standards promulgated by the authority in accordance with KRS Chapter 13A;
  11. “Employee benefits” means nonmandated costs paid by an approved company for its full-time employees for health insurance, life insurance, dental insurance, vision insurance, defined benefits, 401(k) or similar plans;
  12. “Final approval” means the action taken by the authority authorizing the eligible company to receive inducements under this subchapter;
  13. “Full-time employee” means a person employed by an approved company for a minimum of thirty-five (35) hours per week and subject to the state tax imposed by KRS 141.020 ;
  14. “In lieu of credits” means a local government appropriation to the extent permitted by law, or other form of local government grant or service benefit, directly related to the economic development project and in an amount equal to one percent (1%) of employees’ gross wages, exclusive of any noncash benefits provided to an employee, or the provision by a local government of an in-kind contribution directly related to the economic development project and in an amount equal to one half (1/2) of the rent for the duration of the agreement;
  15. “Inducements” means the tax credits allowed and the assessment authorized by KRS 154.24-110 , which are intended to induce companies engaged in service and technology industries to locate or expand in the Commonwealth;
  16. “Person” means an individual, sole proprietorship, partnership, limited partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, entity or government, whether federal, state, county, city, or otherwise, including without limitation any instrumentality, division, political subdivision, district, court, agency, or department thereof;
  17. “Preliminary approval” means the action taken by the authority conditioning final approval by the authority upon satisfaction by the eligible company of the requirements under this subchapter;
  18. “Rent” means:
    1. The actual annual rent or leasing fee paid by an approved company to a bona fide entity negotiated at arms length for the use of a building by the approved company to conduct the approved activity for which the inducement has been granted; or
    2. The fair rental value on an annual basis in a building owned by the approved company of the space used by the approved company to conduct the approved activity for which the inducement has been granted as determined by the authority using criteria which is customary in the real estate industry for the type of building being used. The fair rental value shall include an analysis of the cost of amortizing the cost of land and building over the period of time customary in the real estate industry for the type of building and for the land being utilized;
    3. Rent shall include the customary cost of occupancy, including but not limited to property taxes, heating and air-conditioning, electricity, water, sewer, and insurance;
    1. “Service or technology” means either: (19) (a) “Service or technology” means either:
      1. Any activity involving the performance of work, except work classified by the divisions, including successor divisions, of agriculture, forestry and fishing, mining, utilities, construction, manufacturing, wholesale trade, retail trade, real estate rental and leasing, educational services, accommodation and food services, and public administration in accordance with the “North American Industry Classification System,” as revised by the United States Office of Management and Budget from time to time, or any successor publication; or
      2. Regional or headquarters operations of an entity engaged in an activity listed in subparagraph 1. of this paragraph.
    2. Notwithstanding paragraph (a) of this subsection, “service or technology” shall not include any activity involving the performance of work by an individual who is providing direct service to the public pursuant to a license issued by the state or an association that licenses in lieu of the state unless seventy-five percent (75%) of the services provided by the eligible company from the project are provided to persons located outside the Commonwealth during the period in which it receives the inducements authorized in KRS 154.24-110 ; and
  19. “Start-up costs” means the acquisition cost associated with the project related to the furnishing and equipping the building for ordinary business functions, including computers, furnishings, office equipment, the relocation of out-of-state equipment, and nonrecurring costs of fixed telecommunication equipment as verified and approved by the authority in accordance with KRS 154.24-130 .

History. Enact. Acts 1992, ch. 358, § 1, effective July 14, 1992; 1994, ch. 450, § 11, effective July 15, 1994; 1994, ch. 499, § 21, effective July 15, 1994; 1996, ch. 194, § 36, effective July 15, 1996; 2002, ch. 338, § 32, effective July 15, 2002; 2004, ch. 105, § 10, effective July 13, 2004; 2006, ch. 149, § 218, effective July 12, 2006; 2006, ch. 211, § 73, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 51, effective June 28, 2006; 2008, ch. 50, § 1, effective April 10, 2008; 2009, ch. 11, § 41, effective June 25, 2009; 2019 ch. 146, § 23, effective June 27, 2019.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.24-020. Legislative findings.

  1. The General Assembly hereby finds and declares that the general welfare and material well-being of citizens of the Commonwealth depends in large measure upon the development and growth of the service and technology industries in the Commonwealth.
  2. The General Assembly hereby finds and further declares that it is in the best interest of the Commonwealth to induce:
    1. The location of service and technology facilities in the Commonwealth; and
    2. The expansion of existing service and technology industries in the Commonwealth, in order to advance the public purposes of relieving unemployment by creating new jobs in the Commonwealth that, but for the inducements to be offered by the authority to approved companies, would not exist, and of creating new sources of tax revenues for the support of the public services provided by the Commonwealth.
  3. The General Assembly hereby finds and further declares that the authorities granted by KRS 154.24-010 to 154.24-150 are proper governmental and public purposes for which public moneys may be expended, and that the inducement of:
    1. The location of service and technology facilities in the Commonwealth; and
    2. The expansion of existing service and technology industries in the Commonwealth is of paramount importance, mandating that the provisions of KRS 154.24-010 to 154.24-150 be liberally construed and applied in order to advance the public purposes.

History. Enact. Acts 1992, ch. 358, § 2, effective July 14, 1992.

154.24-030. Kentucky Jobs Development Authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 358, § 3, effective July 14, 1992) was repealed by Acts 1994, ch. 499, § 28, effective July 15, 1994. For present law see KRS 154.20-010 .

154.24-040. Powers of authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 358, § 4, effective July 14, 1992; 1994, ch. 450, § 12, effective July 15, 1994; 1994, ch. 499, § 22, effective July 15, 1994) was repealed by Acts 1996, ch. 194, § 73, effective July 15, 1996.

154.24-050. Personnel.

The secretary of the Cabinet for Economic Development shall provide sufficient personnel to the authority to permit it to adequately discharge its duties and responsibilities described in KRS 154.24-010 to 154.24-150 .

History. Enact. Acts 1992, ch. 358, § 5, effective July 14, 1992.

154.24-060. Personal liability or accountability of director or officer.

No director or officer of the authority shall be subject to any personal liability or accountability by reason of his execution of any service and technology agreement on behalf of the authority.

History. Enact. Acts 1992, ch. 358, § 6, effective July 14, 1992.

154.24-070. Acceptance of moneys — Expenditures.

The authority may accept moneys which may be appropriated by the General Assembly, or moneys which may be received from any other source, including, but not limited to, income from the authority’s operations; and expend funds consistent with its purposes, including, but not limited to, the payment of its expenses of administration and operation, and the establishment and maintenance of a reserve or contingency fund.

History. Enact. Acts 1992, ch. 358, § 7, effective July 14, 1992.

154.24-080. Conflicts of interest.

  1. No director, officer, or employee of the authority shall be interested, directly or indirectly, or shall be an officer or employee of, or have an ownership interest in, any firm or corporation interested, directly or indirectly, in any contract with the authority.
  2. Should a director, officer, or employee of the authority have such an interest or be an officer or employee of or have an ownership interest in any such firm or corporation, then the director, officer, or employee of the authority shall:
    1. Disclose the interest and the office, employment, or ownership in that firm or corporation;
    2. Refrain from participation in discussions relating to any contract of the firm or corporation with the authority; and
    3. Refrain from voting or otherwise taking action on any contract or proposed contract of the authority with the firm or corporation.
  3. If any contract or agreement shall be made in violation of the provisions of this section it shall be null and void and no action shall be maintained against the authority.

History. Enact. Acts 1992, ch. 358, § 8, effective July 14, 1992; 1994, ch. 450, § 13, effective July 15, 1994.

154.24-090. Administrative regulations to include criteria for approval of eligible companies.

The authority shall promulgate administrative regulations in accordance with KRS Chapter 13A, regarding the approval of eligible companies and economic development projects conducted by those companies. The criteria for approval of eligible companies and economic development projects shall include but not be limited to the following criteria:

  1. A determination by the authority that more than seventy-five percent (75%) of services provided by the eligible company from the proposed project shall be provided for persons located outside the Commonwealth during each year of the period during which it receives inducements as authorized in KRS 154.24-110 ;
  2. The economic development project shall result in the creation by the eligible company of a minimum of fifteen (15) new full-time jobs for Kentucky residents to be employed by the eligible company and to be held by persons subject to the personal income tax of the Commonwealth at the activation date set forth in the company’s service and technology agreement as described in KRS 154.24-120 . The activation date shall occur within two (2) years after the date of the final resolution authorizing the economic development project. The authority may extend the period for compliance with this subsection up to one (1) year from the activation date upon the written application of an eligible company requesting an extension;
    1. Within six (6) months after the activation date, the approved company shall compensate a minimum of ninety percent (90%) of its full-time employees whose jobs were created with base hourly wages equal to either: (3) (a) Within six (6) months after the activation date, the approved company shall compensate a minimum of ninety percent (90%) of its full-time employees whose jobs were created with base hourly wages equal to either:
      1. Seventy-five percent (75%) of the average hourly wage for the Commonwealth; or
      2. Seventy-five percent (75%) of the average hourly wage for the county in which the project is to be undertaken.
    2. If the base hourly wage calculated in paragraph (a)1. or 2. of this subsection is less than one hundred fifty percent (150%) of the federal minimum wage, then the base hourly wage shall be one hundred fifty percent (150%) of the federal minimum wage. However, for projects receiving preliminary approval of the authority prior to July 1, 2008, the base hourly wage shall be one hundred fifty percent (150%) of the federal minimum wage existing on January 1, 2007.
    3. In addition to the base hourly wages, the eligible company shall provide employee benefits equal to at least fifteen percent (15%) of the applicable base hourly wages; however, if the eligible company does not provide employee benefits equal to at least fifteen percent (15%) of the applicable base hourly wages, the eligible company may qualify under this section if it provides the employees hired by the eligible company as a result of the economic development project total hourly compensation equal to or greater than one hundred fifteen percent (115%) of the applicable base hourly wages through increased hourly wages combined with employee benefits;
  3. If an eligible company receives approval from the authority before July 1, 2008, and locates an economic development project on property that adjoins one (1) of the five (5) regional postsecondary education centers operated and occupied in cooperation with the Kentucky Community and Technical College System, or operated and occupied under the combined efforts of the Kentucky Community and Technical College System and a public four (4) year comprehensive university, the eligible company may alternatively satisfy the requirements of subsection (3) of this section in the following manner:
    1. Within six (6) months after the activation date, the approved company shall compensate a minimum of ninety percent (90%) of its full-time employees whose jobs were created as a result of the project with total of base hourly wages plus employee benefits equal to or greater than two hundred percent (200%) of the federal minimum wage, providing that base hourly wages shall be greater than or equal to one hundred fifty percent (150%) of the federal minimum wage;
    2. The eligible company shall provide to the authority a statement certifying that the eligible company will seek to provide full-time or part-time employment opportunities for nontraditional students who are enrolled or seek to be enrolled at a regional postsecondary education center; and
    3. The director of the regional postsecondary education center shall provide to the authority a statement asserting that the eligible company is likely to provide appropriate employment opportunities for students and that the economic development project may be reasonably expected to provide meaningful opportunities for technological and infrastructural enhancements;
  4. Written evidence that:
    1. Approval of the economic development project and the resulting inducements to be offered are essential to the creation of new jobs in the Commonwealth by an eligible company in connection with its economic development project; and
    2. No significant number of existing jobs in the Commonwealth will be lost, or adversely affected, due to the designation of an eligible company as an approved company, and to the approval of the eligible company’s economic development project; and
  5. That the economic development project could reasonably and efficiently locate outside of the Commonwealth and, without the inducements offered by the authority, the eligible company would likely locate outside the state.

History. Enact. Acts 1992, ch. 358, § 9, effective July 14, 1992; 1994, ch. 450, § 14, effective July 15, 1994; 1996, ch. 194, § 37, effective July 15, 1996; 2002, ch. 338, § 33, effective July 15, 2002; 2003, ch. 73, § 1, effective March 18, 2003; 2007, ch. 2, § 1, effective March 16, 2007; 2007, ch. 69, § 4, effective June 26, 2007; 2008, ch. 113, § 3, effective July 15, 2008.

154.24-100. Preliminary and final approval of projects — Designation of eligible companies.

  1. With respect to each eligible company making an application to the authority for inducements, and with respect to the economic development project described in the eligible company’s application, the authority shall request materials and make all inquiries respecting the application the authority deems necessary. Upon review of the application and completion of initial inquiries, the authority may, by resolution of the board of directors, give its preliminary approval by designating an eligible company as a preliminarily approved company and authorizing the undertaking of the economic development project, and approve a report as prescribed in subsection (2) of this section.
  2. A report describing the economic development project as prescribed in subsection (1) of this section shall set out the following:
    1. The name, location, business, and standard industrial classification of the eligible company, and if the standard industrial classification is indicative of other than a service or technology activity, then an explanation of the service or technology activity of the eligible company;
    2. The nature of the economic development project;
    3. The use and projected amounts of the inducements to be available to the eligible company by year; and
    4. Other information the authority may require.
  3. After the adoption of the board’s preliminary approval, an agent designated by the authority shall hold at least one (1) public hearing to solicit public comments regarding the preliminary designation of an eligible company as an approved company and the preliminary authorization of the company’s economic development project. Notice of the public hearing shall be given pursuant to KRS Chapter 424.
  4. Unless the board, within one (1) year after the adoption of the resolution prescribed in subsection (1) of this section, gives its final approval by adopting a final resolution which designates the eligible company as an approved company, authorizes the economic development project, and executes a service and technology agreement between the eligible company and the authority, the approved company’s request for designation and economic development project authorization shall be considered denied.
  5. The decision to grant an eligible company the status of approved company shall be solely that of the authority, which the board shall base its decision upon consideration of all information provided.

History. Enact. Acts 1992, ch. 358, § 10, effective July 14, 1992; 1994, ch. 450, § 15, effective July 15, 1994; 1996, ch. 194, § 38, effective July 15, 1996.

154.24-110. Tax credits — Employee job assessment fees.

  1. The approved company shall be entitled to a tax credit equal to one hundred percent (100%) of the income tax and one hundred percent (100%) of the limited liability entity tax imposed by KRS 141.0401 that would otherwise be due to the Commonwealth by the approved company attributable to the economic development project, as limited by the provisions of this section and KRS 154.24-130 . The amount of the approved company’s income, Kentucky gross profits, or Kentucky gross receipts that is attributable to the economic development project shall be determined under KRS 141.407 . The ordering of credits shall be as provided in KRS 141.0205 .
    1. The tax credit allowed to the approved company shall be subtracted from the approved cost balance in the fiscal year of the approved company for which the tax return of the approved company is filed; and
    2. By October 1 of each year, the Department of Revenue of the Commonwealth shall certify to the authority, in the form of an annual report, aggregate tax credits claimed on tax returns filed during the fiscal year ending June 30 of that year, and assessments taken by approved companies with respect to their economic development projects during the prior calendar year under this subchapter, and shall certify to the authority, within ninety (90) days from the date an approved company has filed its state tax return, when an approved company has taken tax credits and assessments equal to its total inducements.
  2. The approved company or, with the authority’s consent, an affiliate of the approved company may require each employee, subject to state tax imposed by KRS 141.020 , as a condition of employment, to agree to pay a service and technology job creation assessment fee up to five percent (5%) of the gross wages exclusive of any noncash benefits provided to an employee for each employee whose job has been deemed by the authority to be created as a result of the economic development project, provided that the service and technology job creation assessment fee shall not exceed the amount determined in accordance with KRS 154.24-150 (5) if the circumstances in that subsection apply. Where a person is already employed by the approved company at a site other than the site of the economic development project and where that employee is subject to state tax imposed by KRS 141.020 , the employee’s job shall be deemed to have been created when the employee is transferred to the site of the economic development project, provided that the employee’s existing job is filled with a new employee.
    1. Each employee paying the assessment shall be entitled to a credit against his Kentucky income tax required to be withheld under KRS 141.310 equal to four-fifths (4/5) of the assessment;
    2. If the assessment has been approved by the local jurisdiction as provided in KRS 154.24-150 , each employee paying the assessment also shall be entitled, in the local jurisdiction in which the economic development project is located, to a credit against his local occupational license fee in the form of a simultaneous adjustment of his local occupational license fee withholding equal to one-fifth (1/5) of the assessment. If more than one (1) local tax is incurred, the one-fifth (1/5) assessment shall be prorated proportionately among the taxes unless one (1) local jurisdiction agrees to forgo the receipt of these taxes in an amount equal to the one-fifth (1/5) assessment, in which case no proration need be made;
    3. If an approved company elects to impose the assessment as a condition of employment, it shall be authorized to deduct the assessment from each payment of wages to the employee;
    4. No credit, or portion thereof, shall be allowed against any occupational license fee imposed by or dedicated solely to the board of education in a local jurisdiction;
    5. The approved company collecting an assessment shall make its payroll, books, and records available to the authority when the authority shall request, and shall file with the authority documentation pertaining to the assessment as the authority may require; and
    6. Any assessment of the wages of employees of an approved company in connection with their employment at an economic development project shall permanently cease at the expiration of the agreement.
  3. Notwithstanding subsection (2) of this section, if a local government in which the project is located has a local occupational license fee that is less than one percent (1%) and agrees to forgo all of its local occupational license fee, then the assessment shall be four percent (4%), all of which shall be contributed by the Commonwealth, plus the percentage of the local occupational license fee that the local government has agreed to forgo. Each employee paying the assessment under this subsection shall be entitled to a credit against Kentucky income tax, under KRS 141.350 , equal to four percent (4%) and a credit against the local occupational license fee equal to the local occupational license fee that the local jurisdiction has agreed to forgo.

History. Enact. Acts 1992, ch. 358, § 11, effective July 14, 1992; 1994, ch. 450, § 16, effective July 15, 1994; 1996, ch. 194, § 39, effective July 15, 1996; 2000, ch. 300, § 20, effective July 14, 2000; 2002, ch. 338, § 34, effective July 15, 2002; 2005, ch. 85, § 580, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 52, effective June 28, 2006.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.24-120. Service and technology agreement with respect to company’s economic development project — Contents.

Before any approved company is granted inducements as prescribed in KRS 154.24-010 to 154.24-150 , a service and technology agreement with respect to the company’s economic development project shall be entered into between the authority and the approved company. The terms and provisions of the agreement, including the amount of approved costs, shall be determined by negotiations between the authority and the approved company, except that each agreement shall include the following provisions:

  1. The term of an agreement shall not be longer than ten (10) years from the activation date established by the approved company. The activation date shall be any time within two (2) years after the date of final approval of the agreement by the authority. In order to implement the activation date, the approved company shall notify the authority, the Kentucky Department of Revenue, the employees, and the affected local jurisdictions, if any, of the activation date on which implementation of the inducements authorized in the agreement shall occur.
  2. The agreement shall include:
    1. A description of the authorized inducements to be used by the approved company;
    2. A provision that, if the total number of full-time employees at the site of the economic development project who are residents of the Commonwealth and subject to the Kentucky income tax is less than fifteen (15), or in the case of an existing Kentucky business the approved company fails to maintain the increase of at least fifteen (15) full-time employees who are residents of the Commonwealth and subject to the Kentucky income tax, the authorized inducements shall be suspended for a period of up to one (1) year. If the company does not have at least fifteen (15) new full-time employees at the site who are residents of the Commonwealth and subject to Kentucky income tax within one (1) year from the date of the initial suspension, the inducements may be terminated at the discretion of the authority;
    3. A provision that, if seventy-five percent (75%) or less of services provided by the approved company from the economic development project should be provided to persons located outside of the Commonwealth during any fiscal year of the approved company as prescribed in KRS 154.24-090 , the authorized inducements shall be suspended for a period of up to one (1) year. If the percentage of these services does not exceed seventy-five percent (75%) within one (1) year from the initial date of suspension, the inducements may be terminated at the discretion of the authority; and
    4. A provision that neither tax credits nor assessments are assignable without written consent by the authority.

History. Enact. Acts 1992, ch. 358, § 12, effective July 14, 1992; 1994, ch. 450, § 17, effective July 15, 1994; 1996, ch. 194, § 40, effective July 15, 1996; 2002, ch. 338, § 35, effective July 15, 2002; 2003, ch. 73, § 2, effective March 18, 2003; 2004, ch. 105, § 11, effective July 13, 2004; 2005, ch. 85, § 581, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 53, effective June 28, 2006.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.24-130. Limit on term of inducement after agreement activation date — Effect of excess in assessments.

  1. Before the end of the first year following the activation date, the authority shall, using data supplied by the approved company, verify and determine the total start-up costs for the approved company’s economic development project. The initial approved costs shall be fifty percent (50%) of the start-up cost.
  2. Each year, during the ten (10) year life span of the agreement, fifty percent (50%) of the annualized rental payments shall be added to the unrecouped balance of approved costs.
  3. Each year, the inducement earned and any in lieu of credits received shall be subtracted from the approved costs.
  4. If, in any fiscal year of the approved company during which the agreement is in effect, the accumulated inducements equal the unrecouped remaining balance of the approved costs then expended, the assessments collected from the wages of the employees shall cease for the remainder of that fiscal year of the approved company, and the approved company shall resume normal personal income tax and occupational license fee withholdings from the employees’ wages for the remainder of that fiscal year.
  5. If in any fiscal year of the approved company during which the agreement is in effect, the total of the tax credit granted to the approved company plus the assessment collected from the wages of the employees exceeds the remaining balance of the approved costs then expended, the approved company shall pay the excess to the Commonwealth as income tax or limited liability entity tax as the case may be.
  6. If in any fiscal year of the approved company during which the agreement is in effect the assessment collected from the wages of the employees exceeds the unrecouped remaining balance of the approved costs then expended, the assessment collected from the wages of the employees shall cease for the remainder of that fiscal year of the approved company, the approved company shall resume normal personal income tax and occupational license fee withholdings from the employees’ wages for the remainder of that fiscal year, and the approved company shall remit to the Commonwealth and applicable local jurisdictions their respective shares of the excess assessment collected on the withholding filing date for employees’ wages next succeeding the first date when the approved company collected excess assessments.

History. Enact. Acts 1992, ch. 358, § 13, effective July 14, 1992; 1994, ch. 450, § 18, effective July 15, 1994; 2006 (1st Ex. Sess.), ch. 2, § 54, effective June 28, 2006.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.24-140. Adjustment of inducements.

  1. If an eligible company operates an existing service and technology business in Kentucky, and wishes to expand that business within the Commonwealth, the eligible company may submit an application to the authority to become an approved company and eligible for the inducements offered in KRS 154.24-010 to 154.24-150 .
  2. If an existing business becomes an approved company, the authority shall determine a base level of employment, a base level of state income tax liability, a base level of limited liability entity tax liability, and a base level of services of the approved company for determining eligible credits in remaining years of the approved company’s project period. The base level shall be determined by taking into consideration any seasonal fluctuations or aberrations of employment levels over a preceding three (3) year period. Notwithstanding the determination of a base level of employment, no employee of the existing business who is an employee of such business prior to the date of the preliminary resolution of the authority as prescribed in KRS 154.24-100 shall be subject to assessment.
  3. The authority shall identify, by name, all of the existing employees engaged in the service and technology activity, and these employees shall be exempt from the assessment. If any of these employees cease working in the activity, another employee shall be added to the base level of employment, based on the earliest date of entry into the workforce, and he shall be exempt from the assessment. The authority may negotiate with the approved company a different method of determining the base level of employment which would yield a more equitable result for the approved company, the Commonwealth, local jurisdictions, and the employees.
  4. To become eligible for inducements, the approved company shall create and maintain above the base level of employment an increase at the site of the economic development project of at least fifteen (15) full-time employees who are residents of the Commonwealth, subject to the Kentucky income tax.
  5. The approved company shall continue to pay to the Commonwealth, on an annualized basis during the term of the agreement, the base level of income tax, and limited liability entity tax adjusted on an annual basis to reflect changes in the consumers price index. Any excess income tax or limited liability entity tax owed may be taken as a credit.
  6. If any approved company expands because of an increase in business or because of the commencement of a new line of business, it shall be eligible, at the discretion of the authority, to negotiate a separate and additional agreement to cover the expanded business under the same conditions as authorized for expansion in this section.

History. Enact. Acts 1992, ch. 358, § 14, effective July 14, 1992; 1994, ch. 450, § 19, effective July 15, 1994; 1996, ch. 194, § 41, effective July 15, 1996; 2002, ch. 338, § 36, effective July 15, 2002; 2006 (1st Ex. Sess.), ch. 2, § 55, effective June 28, 2006.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.24-150. Approval of application by local jurisdiction under service and technology agreement — Alternative inducements offered — Assessment fees.

  1. Before any agreement as prescribed in KRS 154.24-120 shall become effective, the legislative body of any local jurisdiction which may lose revenue as a result of the inducements offered pursuant to KRS 154.24-010 to 154.24-150 and which assesses a local occupational license fee shall approve by official action the granting of inducements to the approved company. If a local jurisdiction which satisfies the requirements of the previous sentence of this subsection does not approve the granting of the inducements or does not elect to provide in lieu of credits as described in subsection (2) of this section, then an approved company shall not be permitted to impose assessments against the wages of its employees.
  2. Subject to the prior written approval of the authority of any proposed in lieu of credits, the local government may elect, by vote of its legislative body, to provide for in lieu of credits for the approved company and its economic development project.
  3. If the local government elects to provide in lieu of credits as described in subsection (2) of this section, the assessment authorized by KRS 154.24-110 shall be four percent (4%), one hundred percent (100%) of which shall be permitted as a credit against Kentucky income tax withheld pursuant to KRS 141.350 .
  4. If a local jurisdiction in which the economic development project is to be located does not assess a local occupational license fee and does not elect to provide in lieu of credits as described in subsection (2) of this section, the assessment authorized by KRS 154.24-110 shall be four percent (4%), one hundred percent (100%) of which shall be permitted as a credit against Kentucky income tax withheld pursuant to KRS to KRS 141.350 .
  5. If a local jurisdiction in which the economic development project is to be located, approves the inducements in accordance with subsection (1) of this section, assesses less than a one percent (1%) local occupational license fee, and does not elect to provide in lieu of credits as described in subsection (2) of this section, then the approved company may require that each employee subject to state tax imposed by KRS 141.020 , as a condition of employment, agree to pay a service and technology job creation assessment fee as prescribed in KRS 154.24-110 (2) or (3), as applicable, provided that each employee paying the assessment shall only be entitled to credits against his Kentucky income tax as prescribed in KRS 154.24-110 (2)(a) or (3), as applicable and to credits against his local occupational license fee to the extent of the local occupational license fee collected by the local jurisdiction.
  6. If a local jurisdiction in which the economic development project is to be located does not assess a local occupational license fee and elects to provide in lieu of credits as described in subsection (2) of this section, then the assessment shall be in accordance with subsection (3) of this section.
  7. Subsection (4) of this section shall apply only to those approved companies which enter into service and technology agreements with the authority after July 15, 1996.

History. Enact. Acts 1992, ch. 358, § 15, effective July 14, 1992; 1994, ch. 450, § 20, effective July 15, 1994; 1996, ch. 194, §§ 42 and 43, effective July 15, 1996; 2000, ch. 300, § 21, effective July 14, 2000.

154.24-151. Short title for KRS 154.24-010 to 154.24-150.

KRS 154.24-010 to 154.24-150 shall be known as the Kentucky Jobs Development Act.

History. Enact. Acts 1996, ch. 194, § 35, effective July 15, 1996.

154.24-152. Deadline for new applications — Governing law for outstanding approved projects.

New applications shall not be accepted or considered under this subchapter on or after June 26, 2009. All outstanding projects with preliminary or final approval under this subchapter as of June 26, 2009, shall continue to be governed by the provisions of this subchapter.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 27, effective June 26, 2009.

154.24-160. Development of criteria for productivity gains to be used in considering requests for financial assistance. [Renumbered.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 358, § 19, effective July 14, 1992) has been renumbered as KRS 154.20-160 by the Reviser of Statutes.

SUBCHAPTER 25. Kentucky Jobs Retention Act Program

154.25-010. Definitions for subchapter.

As used in this subchapter:

  1. “Activation date” means a date selected by an approved company and set forth in the jobs retention agreement at any time within a three (3) year period after the date of final approval of the agreement by the authority upon which the required investment shall be made and the jobs retention project completed;
  2. “Agreement” means a jobs retention agreement entered into pursuant to KRS 154.25-030 on behalf of the authority and an approved company with respect to a jobs retention project;
  3. “Agribusiness” has the same meaning as in KRS 154.32-010 ;
  4. “Approved company” means any eligible company approved by the authority pursuant to KRS 154.25-030 for a jobs retention project;
  5. “Approved costs” means that portion of the eligible costs approved by the authority that an approved company may recover through the inducements authorized by KRS 154.25-030 , being a percentage of eligible costs as approved by the authority;
  6. “Assessment” means the wage assessment fee authorized by KRS 154.25-040 ;
  7. “Authority” means the Kentucky Economic Development Finance Authority created by KRS 154.20-010 ;
  8. “Commonwealth” means the Commonwealth of Kentucky;
  9. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity that has been operating within the Commonwealth on a continuous basis for at least sixty (60) months preceding the request for approval by the authority of the project which meets the standards set forth in KRS 154.25-020 , has been previously approved for economic development incentives from the Commonwealth related to one (1) or more of its facilities, and employs a minimum of one thousand (1,000) full-time persons engaged in one (1) or more of the following activities:
    1. Manufacturing;
    2. Agribusiness;
    3. Nonretail service or technology; or
    4. Headquarters operations, regardless of the underlying business activity of the company. “Eligible company” does not include companies where the primary activity to be conducted within the Commonwealth is forestry, fishing, mining, coal or mineral processing, the provision of utilities, construction, wholesale trade, retail trade, real estate, rental and leasing, educational services, accommodation and food services, or public administration services;
  10. “Eligible costs” means:
    1. Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the acquisition, construction, equipping, rehabilitation, and installation of a jobs retention project;
    2. The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of a jobs retention project which is not paid by the vendor, supplier, deliveryman, contractor, or otherwise provided;
    3. All costs of architectural and engineering services, including estimates, plans and specifications, preliminary investigations, and supervision of construction, rehabilitation, and installation, as well as for the performance of all the duties required by or consequent upon the acquisition, construction, equipping, rehabilitation, and installation of a jobs retention project;
    4. All costs required to be paid under the terms of any contract for the acquisition, construction, equipping, rehabilitation, and installation of a jobs retention project;
    5. All costs required for the installation of utilities, including but not limited to water, sewer, sewer treatment, gas, electricity, communications, and railroads, and including off-site construction of the facilities paid for by the approved company; and
    6. All other costs comparable with those described above;
  11. “Final approval” means the action taken by the authority authorizing the eligible company to receive inducements under this subchapter;
  12. “Headquarters” has the same meaning as in KRS 154.32-010 ;
  13. “Inducements” means the Kentucky tax credit and the wage assessment fee as prescribed in KRS 154.25-030 and 154.25-040 ;
  14. “Jobs retention project” or “project” means the acquisition, construction, and installation of new equipment and, with respect thereto, the construction, rehabilitation, and installation of improvements to facilities necessary to house the acquisition, construction, and installation of new equipment, including surveys; installation of utilities, including water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; off-site construction of utility extensions to the boundaries of the real estate on which the facilities are located; and shall contain eligible costs of not less than one hundred million dollars ($100,000,000), all of which are utilized to improve the economic and operational situation of an approved company to allow the approved company to reinvest in its operations and retain a significant number of existing jobs within the Commonwealth;
  15. “Kentucky gross profits” means Kentucky gross profits as defined in KRS 141.0401 ;
  16. “Kentucky gross receipts” means Kentucky gross receipts as defined in KRS 141.0401 ;
  17. “Manufacturing” has the same meaning as in KRS 154.32-010 ;
  18. “Nonretail service or technology” has the same meaning as in KRS 154.32-010 ;
  19. “Preliminary approval” means the action taken by the authority conditioning final approval by the authority upon satisfaction by the eligible company of the requirements under this subchapter;
  20. “Supplemental project” means an additional jobs retention project proposed by the approved company or its affiliate during the term of a previously approved jobs retention project, which may be included in the jobs retention agreement by way of amendment and which may result in increased inducements and an extension of the original project term as set forth in KRS 154.25-050 ; and
  21. “Transferred credits” means unused approved costs as determined by the Department of Revenue from a previously approved, independent, active project under a different incentive program governed by the Cabinet for Economic Development that may be transferred to a jobs retention project and used by the approved company pursuant to a jobs retention agreement.

History. Enact. Acts 2007, ch. 91, § 1, effective March 23, 2007; 2012, ch. 23, § 1, effective July 12, 2012; 2014, ch. 97, § 1, effective July 15, 2014; 2018 ch. 207, § 149, effective July 14, 2018; 2019 ch. 172, § 2, effective March 26, 2019.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

154.25-020. Criteria for approval of eligible companies and job retention projects — Preliminary approval.

  1. The criteria for approval of eligible companies and jobs retention projects shall include but not be limited to:
    1. The need for the project, as indicated by the impact of the existing facility upon the local community and the economic and employment impact that the loss of the facility would have;
    2. The new capital investment in its facilities and the likelihood that the capital investment will increase potential for sustainability of its workforce and facilities in the future; and
    3. The retention or creation of employment at the facility where the jobs retention project will occur as well as any other facilities owned by the approved company in the Commonwealth.
  2. With respect to each eligible company making an application to the authority for inducements, and with respect to the economic development project described in the application, the authority shall request materials and make inquiries of the applicant as necessary or appropriate. Upon review of the application and completion of initial inquiries, the authority may, by resolution, give its preliminary approval by designating an eligible company as a preliminarily approved company and authorizing the undertaking of the jobs retention project. The authority and the preliminarily approved company shall enter into a memorandum of agreement that sets forth the conditions necessary for the company to obtain final approval of the project. Upon satisfaction of the conditions set forth in the memorandum of agreement, the authority may, by resolution, designate the preliminarily approved company to be an approved company and authorize the execution of a jobs retention agreement.

History. Enact. Acts 2007, ch. 91, § 2, effective March 23, 2007; 2018 ch. 207, § 149, effective July 14, 2018.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

154.25-030. Jobs retention project agreement — Requirements, limitations, and permitted inducements.

  1. The authority, upon adoption of its final approval, may enter into, with any approved company, an agreement with respect to the jobs retention project. The terms and provisions of each agreement, including the amount of approved costs, the amount of the inducement, the job maintenance requirement, and any limitations the authority may deem necessary, shall be determined by negotiations between the authority and the approved company, except that each agreement shall include the following provisions:
    1. The amount the approved company may recover through inducements under this subchapter for the initial project, which shall be a negotiated percentage not to exceed fifty percent (50%) of eligible costs. However, the authority may negotiate an increase in the percentage such that both the initial project and any supplemental projects are eligible for seventy-five percent (75%) of eligible costs upon approval of a supplemental project. The adjustment to the initial project shall be made on the total approved costs and any credits taken prior to the addition of a supplemental project shall then be subtracted from that increased amount of approved costs. Neither the initial project nor any supplemental project shall ever be eligible for inducements greater than seventy-five percent (75%) of the eligible costs. The authority shall negotiate a maximum allowable inducement for each year of the agreement, and the approved company may not recover inducements above that maximum in any year during the term of the agreement, except that the annual maximum allowable inducement may be exceeded if a carry-forward of unused inducements from previous years exists. Any carry-forward of unused inducements will lapse upon maturity or termination of the agreement;
    2. A provision that sets the activation date for the initial project within three (3) years of the final approval. Prior to the activation date, the authority may extend the time for the completion of the jobs retention project and compliance with the required investment upon request of the approved company for good cause; however, the ten (10) year period for the term of the agreement shall begin from the activation date. No inducements from the jobs retention project shall be available, other than the transferred credits provided for under subsection (2) of this section, until activation. Upon activation, the balance of transferred credits shall expire;
    3. A provision that states that within three (3) months of the completion of the jobs retention project, the approved company shall document the actual cost of the project in a manner acceptable to the authority. The authority may employ an independent consultant or utilize technical resources to verify the cost of the project. The approved company shall reimburse the authority for the cost of the consultant;
    4. A provision that establishes a minimum required number of full-time jobs that must be maintained at the site of the jobs retention project and filled with residents of the Commonwealth subject to Kentucky income tax and states that the authorized inducements may be suspended at the discretion of the authority from the date of noncompliance until the date compliance is reestablished if the approved company’s employment falls below the established minimum employment requirement. If the company does not increase the number of full-time employees at the site who are residents of the Commonwealth and subject to Kentucky income tax sufficiently to meet the minimum employment requirement within one (1) year from the date of the initial suspension, the remaining unused inducements may be terminated at the discretion of the authority;
    5. A provision that gives the authority discretion to suspend or terminate the authorized inducements for any failure to comply with the terms of the agreement; and
    6. A provision that provides the term shall not be longer than the earlier of:
      1. The date on which the approved company has received inducements or withheld assessments equal to the amount that the company may recover under paragraph (a) of this subsection; or
      2. Ten (10) years from the activation date.

        However, the term may be extended to a period longer than ten (10) years upon the addition of a supplemental project as negotiated and approved by the authority.

  2. In consideration of the execution of the agreement, during the time the agreement is in effect, which time shall commence on the date of the agreement, the approved company may be permitted the following inducements:
    1. Beginning on the effective date of the jobs retention agreement, which shall also be the date of final approval, if the approved company has a balance of unused approved costs on a previously existing and active incentive agreement approved by the authority pursuant to KRS Chapter 154, the approved company may impose wage assessments on employees whose jobs are at the facility where the project defined in the previously existing incentive agreement was located. The wage assessments may be imposed as provided in KRS 154.25-040 , and shall be available in an amount up to the balance of transferred credits from the previously existing project.
      1. The transferred credits shall only be available to the approved company until the activation date, the term from the original incentive agreement expires, or the balance of transferred credits is exhausted, whichever occurs first; and
      2. Should the approved company exercise this option, the incentive agreement from which the credits were transferred shall be terminated upon transfer and all parties shall be released from their obligations thereunder.
    2. After the activation date:
      1. A one hundred percent (100%) credit against the taxes imposed by KRS 141.020 , 141.040 , and 141.040 1 that would otherwise be owed by the approved company, in the approved company’s taxable year, as determined under KRS 141.402 , on the taxable income, Kentucky gross receipts, or Kentucky gross profits of the approved company generated by or arising from the jobs retention project. The ordering of credits shall be as provided in KRS 141.0205 ;
      2. The aggregate assessment withheld by the approved company as provided in KRS 154.25-040 in each year after the activation date;
    3. The tax credits allowed to the approved company shall be equal to the lesser of the total amount of the tax liability or the amount that the company may recover under subsection (1)(a) of this section that has not yet been recovered, reduced by any recovery through the collection of assessments subject to the annual maximum inducements authorized pursuant to subsection (1)(a) of this section. The credit shall be allowed for each taxable year of the approved company during the term of the agreement and for which a tax return of the approved company is filed until the amount that the company may recover under subsection (1)(a) of this section has been received through a combination of credits and assessments, if the company elects to impose assessments. The approved company shall not be required to pay estimated tax payments as prescribed under KRS 141.044 or 141.305 on income, Kentucky gross profits, or Kentucky gross receipts from the jobs retention project. One hundred eighty (180) days after the filing of the tax return of the approved company, the Department of Revenue shall certify to the authority the state tax liability for the preceding taxable year of the approved company and the amount of any tax credits taken pursuant to this section;
    4. Prior to execution of the agreement, the eligible company shall secure from all local governmental authorities responsible for collecting local occupational license fees a resolution or order of the local governmental entities acknowledging and consenting to the termination or partial termination of the receipt of local occupational license fees on wages subject to the agreement paid by the approved company on behalf of its employees to the local government entities;
    5. If more than one (1) local occupational license fee is imposed upon the employees of the approved company, the assessment imposed upon the employees shall be credited against the local occupational license fee and shall be apportioned to each local occupational license fee according to each local occupational license fee’s proportion to the total of all local occupational license fees for such employees. No credit or portion thereof shall be allowed against any local occupational license fee imposed by or dedicated solely to a local board of education; and
    6. If, in any taxable year of the approved company during which the agreement is in effect, the assessment collected from the wages of the employees exceeds the expended portion of the amount that the approved company may recover under paragraph (a) of this subsection, or exceeds the annual maximum negotiated by the authority, the assessment collected from the wages of the employees shall cease for the remainder of that taxable year of the approved company. The approved company shall resume normal personal income tax and occupational license fee withholdings from the employees’ wages for the remainder of that taxable year, and the approved company shall remit to the Commonwealth and applicable local jurisdictions their respective shares of the excess assessment collected on the withholding filing date for employees’ wages next succeeding the first date when the approved company collected excess assessments.
  3. The jobs retention agreement and inducements available pursuant thereto shall not be transferable or assignable by the approved company without the expressed written consent of the authority.

History. Enact. Acts 2007, ch. 91, § 3, effective March 23, 2007; 2012, ch. 23, § 2, effective July 12, 2012; 2018 ch. 207, § 149, effective July 14, 2018.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

Legislative Research Commission Notes.

(3/23/2007). Although subsection (1)(b) of 2007 Ky. Acts ch. 91, sec. 3 refers to “transferred credits provided for under Section 3 of this Act,” it appears from context and on advice of the drafter that the reference should have been to “transferred credits provided for under subsection (2) of this section.” The Reviser of Statutes has made this change pursuant to KRS 7.136 .

154.25-040. Wage assessment — Tax credits for employees — Department of Revenue to make annual report to authority.

  1. The approved company may require that each employee subject to the income tax imposed by KRS 141.020 , whose job was preserved or created as a result of the project, as a condition of employment or the retention of employment, agree to pay an assessment, not to exceed five percent (5%) of the gross wages of each employee subject to the income tax imposed by KRS 141.020 unless:
    1. The local government or governments in which the project is located have a local occupational license fee of less than one percent (1%) and agree to forgo all of their local occupational license fee, in which case the assessment shall equal four percent (4%) plus the percentage of the local occupational license fee;
    2. The local government or governments in which the project is located have a local occupational license fee of less than one percent (1%) and agree to forego a portion of their local occupational license fee, in which case the assessment shall equal the percentage that the local government or governments agree to forego plus a percentage that is four (4) times the percentage the local government or governments agree to forego;
    3. The local government or governments in which the project is located have a local occupational license fee equal to or greater than one percent (1%), and the local government or governments agree to forego an amount less than one percent (1%), in which case the assessment shall equal the percentage that the local government or governments agree to forego plus a percentage that is four (4) times the percentage the local government or governments agree to forego; or
    4. The local government or governments in which the project is located have no local occupational license fee, in which case the assessment shall equal four percent (4%).
  2. Each assessed employee shall be entitled to a credit against the Kentucky income tax required to be withheld under KRS 141.310 in the form of a simultaneous adjustment equal to four-fifths (4/5) of the assessment, unless:
    1. The assessment is calculated under subsection (1)(a) of this section, in which case the credit shall be equal to the total assessment less the occupational license fee; or
    2. The assessment is calculated under subsection (1)(d) of this section, in which case the credit shall be equal to one hundred percent (100%) of the assessment.
  3. Each employee assessed under subsection (1) of this section also shall be entitled to a credit against the local occupational license fee in the form of a simultaneous adjustment of the local occupational license fee withholding equal to one-fifth (1/5) of the assessment, unless the wage assessment is calculated under subsection (1)(a) of this section, in which case the credit shall equal the same amount as the local occupational license fee.
  4. If an approved company elects to impose the assessment as a condition of employment or the retention of employment, the approved company shall deduct the assessment from each paycheck of each employee subject to the provisions of subsections (2) and (3) of this section.
  5. Any approved company collecting an assessment shall make its payroll books and records available to the authority at such reasonable times as the authority shall request and shall file with the authority the documentation respecting the assessment the authority may require.
  6. Any assessment of the wages of the employees of an approved company shall permanently lapse upon expiration or termination of the agreement unless the agreement has been amended to extend the termination as a result of a supplemental project.
  7. By October 1 of each year, the Department of Revenue shall certify to the authority, in the form of an annual report, aggregate tax credits claimed on tax returns filed during the taxable year ending June 30 of that year and wage assessment fees taken during the prior calendar year by approved companies with respect to their jobs retention projects under this subchapter, and shall certify to the authority, within one hundred eighty (180) days from the date an approved company has filed its state tax return, when an approved company has taken tax credits equal to its total inducements.

History. Enact. Acts 2007, ch. 91, § 4, effective March 23, 2007; 2018 ch. 207, § 149, effective July 14, 2018.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

154.25-050. Supplemental projects — Application for and approval of — Project’s activation date — Inducements, when authorized.

  1. If an approved company makes additional investments in the form of additional jobs retention projects during the term of the initial jobs retention project, the approved company may apply for, and the authority may approve, a supplemental project.
  2. The authority, upon adoption of its final approval of a supplemental project, may enter into, with any approved company, an amended agreement with respect to both the initial jobs retention project and the supplemental project which shall jointly make up its project. The terms and provisions of each amended agreement, including the amount of approved costs, the amount of the tax credit pursuant to KRS 154.25-030 , the job maintenance requirement established by the agreement, and any limitations the authority may deem necessary, shall be determined by negotiations between the authority and the approved company, except that each agreement shall include the following provisions:
    1. Upon approval of a supplemental project, the amount the approved company may recover through inducements for the initial project and any supplemental projects shall be a negotiated percentage not to exceed seventy-five percent (75%) of the eligible costs from the initial project and all newly incurred eligible costs from any supplemental projects, subject to the annual maximum negotiated and approved by the authority. At the time a supplemental project is approved, the recoverable amount and the annual maximum inducement for the initial jobs retention project and any previous supplemental projects may also be increased at the discretion of the authority pursuant to KRS 154.25-030 .
    2. The activation date for a supplemental project shall be no more than three (3) years from final approval of the supplemental project. Prior to the activation date, the authority may extend the time for the completion of the jobs retention project and compliance with the required investment upon request of the approved company for good cause; however, the ten (10) year period for the term of the agreement shall begin from the activation date. Within three (3) months of the completion date for a supplemental project, the approved company shall document the actual cost of the project in a manner acceptable to the authority. The authority may employ an independent consultant to verify the cost of the supplemental project subject to reimbursement for the cost of same from the approved company.
    3. In consideration of the execution of the amended agreement, on the date stated in the agreement, the approved company may be permitted during the term of the amended agreement to take the inducements set forth in KRS 154.25-030(2)(b) and (2)(c), subject to the remaining terms of that section.

History. Enact. Acts 2007, ch. 91, § 5, effective March 23, 2007; 2012, ch. 23, § 3, effective July 12, 2012; 2018 ch. 207, § 149, effective July 14, 2018.

Compiler’s Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

SUBCHAPTER 26. Financing of Existing Industry Development

154.26-010. Definitions for Subchapter 26 of KRS Chapter 154.

As used in this subchapter, unless the context clearly indicates otherwise:

  1. “Agreement” means a revitalization agreement entered into, pursuant to KRS 154.26-090 , on behalf of the authority and an approved company with respect to an economic revitalization project;
  2. “Agribusiness” means any activity involving the processing of raw agricultural products, including timber, or the providing of value-added functions with regard to raw agricultural products;
  3. “Appropriation agreement” means an agreement entered into, pursuant to KRS 154.26-090 (1)(f)2., among the approved company, the authority, and local governmental entities with respect to appropriations by these local governmental entities for the benefit of the approved company;
  4. “Approved company” means any eligible company approved by the authority pursuant to KRS 154.26-080 requiring an economic revitalization project;
  5. “Approved costs” means:
    1. Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the acquisition, construction, equipping, rehabilitation, and installation of an economic revitalization project;
    2. The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, equipping, rehabilitation, and installation of an economic revitalization project which is not paid by the vendor, supplier, deliveryman, contractor, or otherwise provided;
    3. All costs of architectural and engineering services, including estimates, plans and specifications, preliminary investigations, and supervision of construction, rehabilitation and installation, as well as for the performance of all the duties required by or consequent upon the acquisition, construction, equipping, rehabilitation, and installation of an economic revitalization project;
    4. All costs required to be paid under the terms of any contract for the acquisition, construction, equipping, rehabilitation, and installation of an economic revitalization project;
    5. All costs required for the installation of utilities, including but not limited to water, sewer, sewer treatment, gas, electricity, communications, and railroads, and including off-site construction of the facilities paid for by the approved company; and
    6. All other costs comparable with those described above;
  6. “Assessment” means the job revitalization assessment fee authorized by KRS 154.26-100 ;
  7. “Authority” means the Kentucky Economic Development Finance Authority created by KRS 154.20-010 ;
  8. “Commonwealth” means the Commonwealth of Kentucky;
  9. “Economic revitalization project” or “project”:
    1. Means the acquisition, construction, equipping, and rehabilitation of machinery and equipment, constituting fixtures or otherwise, and with respect thereto, the construction, rehabilitation, and installation of improvements of facilities necessary or desirable for the acquisition, construction, installation, and rehabilitation of the machinery and equipment, including surveys; installation of utilities, including water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; and off-site construction of utility extensions to the boundaries of the real estate on which the facilities are located, all of which are utilized to improve the economic situation of the approved company to allow the approved company to remain in operation and retain or create jobs or to resume operations in the case of closed facilities as provided in subsection (10)(b) of this section; and
    2. Includes any supplemental project;
  10. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity:
    1. Employing or intending to employ full-time a minimum of twenty-five (25) persons engaged in manufacturing or agribusiness operations at the same facility, whether acquired, owned, or leased, located and operating within the Commonwealth on a permanent basis for a reasonable period of time preceding the request for approval by the authority of an economic revitalization project, including facilities where manufacturing or agribusiness operations has been temporarily suspended and which meets the standards promulgated by the authority pursuant to KRS 154.26-080 ; or
    2. Having or, in the case of closed facilities, intending, raw production of at least three (3) million tons of coal mined from the economic revitalization project facility and employing or, in the case of closed facilities, intending to employ, a minimum of five hundred (500) persons engaged in coal mining and processing operations at facilities, whether owned or leased, located and operating within the Commonwealth on a permanent basis for a reasonable period of time preceding the request for approval by the authority of an economic revitalization project, including facilities on or adjacent to where coal mining and processing operations have been closed, temporarily suspended, or severely reduced, and which meets the standards promulgated by the authority under KRS 154.26-080 ;
  11. “Final approval” means the action taken by the authority authorizing the eligible company to receive inducements under this subchapter;
  12. “Inducements” means the Kentucky tax credit and the job revitalization assessment fee as prescribed in KRS 154.26-090 and 154.26-100 ;
  13. “Manufacturing” means any activity involving the manufacturing, processing, assembling, or production of any property, including the processing that results in a change in the condition of the property and any related activity or function, together with the storage, warehousing, distribution, and related office facilities;
  14. “Coal mining and processing” means activities resulting in the eligible company being subject to the tax imposed by KRS Chapter 143;
  15. “Preliminary approval” means the action taken by the authority conditioning final approval by the authority upon satisfaction by the eligible company of the requirements under this subchapter;
  16. “State agency” means any state administrative body, agency, department, or division as defined in KRS 42.010 , or any board, commission, institution, or division exercising any function of the state which is not an independent municipal corporation or political subdivision;
  17. “Supplemental project” means an additional investment in an approved economic revitalization project proposed during, or within sixty (60) months after the expiration of, the initial term of an agreement, and which may be approved by the authority for additional inducements as set forth in KRS 154.26-090 ;
  18. “Kentucky gross profits” means Kentucky gross profits as defined in KRS 141.0401 ;
  19. “Kentucky gross receipts” means Kentucky gross receipts as defined in KRS 141.0401 ; and
  20. “Supplemental project agreement” means an agreement, entered into pursuant to KRS 154.26-090 , on behalf of the authority and an approved company with respect to a supplemental project.

History. Enact. Acts 1992, ch. 359, § 1, effective July 14, 1992; 1994, ch. 390, § 6, effective July 15, 1994; 1994, ch. 450, § 21, effective July 15, 1994; 1994, ch. 499, § 23, effective July 15, 1994; 1996, ch. 194, § 45, effective July 15, 1996; 2000, ch. 547, § 2, effective July 14, 2000; 2001, ch. 153, § 1, effective March 20, 2001; 2004, ch. 18, § 6, effective July 13, 2004; 2004, ch. 105, § 22, effective July 13, 2004; 2006, ch. 149, § 219, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 56, effective June 28, 2006; 2007, ch. 71, § 1, effective March 23, 2007; 2012, ch. 119, § 1, effective July 12, 2012; 2014, ch. 129, § 2, effective July 15, 2014; 2016 ch. 109, § 1, effective July 15, 2016.

Legislative Research Commission Note.

(7/12/2012). 2012 Ky. Acts ch. 119, sec. 4, provides that this statute, as amended by 2012 Ky. Acts ch. 119, sec. 1, “shall apply to taxable years beginning on or after January 1, 2014.”

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.26-015. Legislative findings.

The General Assembly finds and declares that the general welfare and material well-being of the citizens of the Commonwealth depends in large measure upon the revitalization and development of industry in the Commonwealth, and that it is in the best interest of the Commonwealth to induce the revitalization of existing manufacturing or agribusiness facilities within the Commonwealth in order to advance the public purposes of relieving unemployment by preserving and creating jobs that would not exist if not for the inducements to be offered by the authority to approved companies, and by preserving and creating sources of tax revenues for the support of public services provided by the Commonwealth; and that the authority prescribed by KRS 154.26-015 to 154.26-100 , and the purposes to be accomplished under the provisions of KRS 154.26-015 to 154.26-100 are proper governmental and public purposes for which public moneys may be expended, and that the inducement of the creation of projects is of paramount importance mandating that the provisions of KRS 154.26-015 to 154.26-100 be liberally construed and applied in order to advance public purposes.

History. Enact. Acts 1992, ch. 359, § 2, effective July 14, 1992; 1994, ch. 390, § 7, effective July 15, 1994.

NOTES TO DECISIONS

1.Documents Exempt from Disclosure.

Since corporation sought investment tax credits through Kentucky Industry Revitalization Authority (KIRA) which was established by and administered through KRS Chapter 154 and the information submitted by corporation to KIRA was done in conjunction with said application for the tax credits and since by amending the Open Records Act, specifically KRS 61.878 (1)(c)2.b, to include documents submitted pursuant to KRS Chapter 154, it is evident that the legislature sought to protect those companies which participate in the revitalization and development of industry in Kentucky, such documents were exempt from disclosure. Hoy v. Kentucky Indus. Revitalization Auth., 907 S.W.2d 766, 1995 Ky. LEXIS 125 ( Ky. 1995 ).

154.26-020. Kentucky Industrial Revitalization Authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 359, § 3, effective July 14, 1992) was repealed by Acts 1994, ch. 499, § 28, effective July 15, 1994. For present law see KRS 154.20-010 .

Legislative Research Commission Note.

(7/15/94). Under KRS 446.260 , the repeal of this section in 1994 Ky. Acts ch. 499 prevails over its amendment in 1994 Ky. Acts ch. 450.

154.26-030. Powers of authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 359, § 4, effective July 14, 1992; 1994, ch. 499, § 24, effective July 15, 1994) was repealed by Acts 1996, ch. 194, § 73, effective July 15, 1996.

154.26-040. Staff of authority.

The secretary of the Cabinet for Economic Development shall provide sufficient personnel to serve as staff for the authority in order to permit the authority to adequately discharge its duties and responsibilities prescribed in KRS 154.26-015 to 154.26-100 .

History. Enact. Acts 1992, ch. 359, § 5, effective July 14, 1992.

154.26-050. Personal liability of director or officer.

No director or officer of the authority shall be subject to any personal liability or accountability by reason of his execution of any obligation duly authorized by the authority.

History. Enact. Acts 1992, ch. 359, § 6, effective July 14, 1992.

154.26-060. Funding for authority.

The authority may accept and expend moneys which may be appropriated from time to time by the General Assembly, or moneys which may be received from any source, including income from the authority’s operations for effectuating its purpose, including, without limitation, the payment of the expenses of administration and operation.

History. Enact. Acts 1992, ch. 359, § 7, effective July 14, 1992.

154.26-070. Interest in contract with authority by director, officer, or employee.

  1. No director, officer, or employee of the authority shall be interested, directly or indirectly, or shall be an officer or employee, or have an ownership interest in any firm or corporation interested, directly or indirectly, in any contract with the authority.
  2. Should a director, officer, or employee of the authority have such an interest or be an officer or employee of or have an ownership interest in any such firm or corporation, then the director, officer, or employee of the authority shall:
    1. Disclose the interest and the office, employment, or ownership in the firm or corporation;
    2. Refrain from participating in discussions relating to any contract of the firm or corporation with the authority; and
    3. Refrain from voting or otherwise taking action on any contract or proposed contract of the authority with the firm or corporation.
  3. If any contract or agreement shall be made in violation of the provisions of this section, it shall be null and void and no action shall be maintained against the authority.

History. Enact. Acts 1992, ch. 359, § 8, effective July 14, 1992; 1994, ch. 450, § 23, effective July 15, 1994.

154.26-080. Standards for determination of eligibility — Review of application — Request for emergency declaration — Authorizing resolution — Application for and approval of supplemental projects — Meetings.

  1. The authority shall establish standards for the determination and approval of eligible companies and their projects by the promulgation of administrative regulations in accordance with KRS Chapter 13A.
  2. The criteria for approval of eligible companies and economic revitalization projects or supplemental projects shall include but not be limited to the:
    1. Need for the project;
    2. New capital investment in the project or supplemental project that will result in financial stability for the manufacturing or coal mining and processing facility; and
    3. Retention or expansion of the greatest number of employees at the manufacturing or coal mining and processing facility.
  3. With respect to each eligible company making an application to the authority for inducements, and with respect to the project described in the application, the authority shall make inquiries and request materials of the applicant, including but not limited to written evidence that except for a substantial investment in the project, assisted by the inducements authorized by KRS 154.26-015 to 154.26-100 , the eligible company will:
    1. Close its manufacturing or coal mining and processing facility; and
    2. Permanently lay off its employees and cease operations; or
    3. Not resume operations of a closed facility as permitted by KRS 154.26-010 (9).
  4. The eligible company shall, in a manner acceptable to the authority, detail the condition of the facility, including but not limited to financial, efficiency, and productivity matters; explain in detail why the company intends to close the facility or not resume operations of the facility as permitted by KRS 154.26-010 (9); and set out alternatives that are available to the company.
  5. As a part of its application, an eligible company as described in KRS 154.26-010 (10)(b) may request an emergency declaration based upon the urgency of the request and its impact on the local or regional economy.
  6. A request for an emergency declaration shall be reviewed by the secretary of the Cabinet for Economic Development, the secretary of the Education and Workforce Development Cabinet, and the secretary of the Finance and Administration Cabinet and their findings in connection with the emergency declaration shall be delivered to the authority.
  7. If the emergency declaration is granted in accordance with subsection (6) of this section, the eligible company shall not be subject to the requirements contained in subsection (8), (9), or (11) of this section.
  8. In accordance with, and after the adoption of a resolution under subsection (10) of this section, the authority shall engage the services of a competent consulting firm or technical resource to analyze the data made available by the company, and to collect and analyze additional information necessary to determine that, in the independent judgment of the consultant, the company will close the facility or not resume operations of the facility as permitted by KRS 154.26-010 (9) absent a substantial investment in the project, assisted by the inducements authorized by KRS 154.26-015 to 154.26-100 . The company shall pay the cost of this evaluation.
  9. The company shall cooperate with the consultant and provide all of the data which could reasonably be required by the consultant to make a fair assessment of the company’s intentions to close the facility or not resume operations of the facility as permitted by KRS 154.26-010 (9).
  10. After a review of relevant materials and completion of inquiries, the authority may, by resolution, give its preliminary approval by designating an eligible company as a preliminarily-approved company and authorizing the undertaking of the economic revitalization project.
  11. The authority shall review the report of the consultant and other information which has been made available to it in order to assist the authority in determining whether the company intends to close the facility for valid reasons or whether it intends or is able to resume operations of the facility in accordance with the requirements of KRS 154.26-010 (10)(b) if inducements are granted. The authority shall determine the potential of the proposed revitalization project to make the facility stable, productive, and competitive in its market.
  12. After the review of the consultant’s report or if an emergency declaration has been issued in accordance with subsection (6) of this section, the authority shall hold a public hearing to solicit public comment from any person, group, or interested party regarding the proposed project.
  13. After the public hearing, the authority, by resolution, may:
    1. Declare the jobs then existing at the facility to be lost or the company unable to resume operations as permitted by KRS 154.26-010 (9);
    2. Give its final approval to the eligible company’s application for a project; and
    3. Grant to the eligible company the status of an approved company. The decision reached by the authority shall be final and no appeal shall be granted.
    1. During the initial term of an agreement, or within sixty (60) months after the expiration of the term, an eligible company may apply for, and the authority may approve, a supplemental project when the applicant: (14) (a) During the initial term of an agreement, or within sixty (60) months after the expiration of the term, an eligible company may apply for, and the authority may approve, a supplemental project when the applicant:
      1. Has expended approved costs of at least fifty million dollars ($50,000,000) on an approved economic revitalization project;
      2. Employs a minimum of one hundred (100) employees at the site of the economic revitalization project;
      3. Agrees to incur at least five million dollars ($5,000,000) in additional eligible costs for improvements to a blast furnace that:
        1. Is located at the economic revitalization project;
        2. Has burned at least one million (1,000,000) tons of Kentucky coal during the initial term of the agreement; and
        3. Was idled due to unfairly traded imports of carbon steel, with resulting layoffs of more than five hundred fifty (550) employees; and
      4. Is at risk of closure and carries a significant net loss carry forward for the last three (3) tax years as certified by the approved company.
    2. The authority may approve a supplemental project by resolution, authorizing the execution of a supplemental project agreement.
  14. All meetings of the authority shall be held in accordance with KRS 61.805 to 61.850 . The authority may, pursuant to KRS 61.815 , hold closed sessions of its meetings to discuss matters exempt from the open meetings law and pertaining to an eligible company.

History. Enact. Acts 1992, ch. 359, § 9, effective July 14, 1992; 1994, ch. 450, § 24, effective July 15, 1994; 1994, ch. 499, § 25, effective July 15, 1994; 1996, ch. 194, § 46, effective July 15, 1996; 2001, ch. 153, § 2, effective March 20, 2001; 2006, ch. 211, § 74, effective July 12, 2006; 2007, ch. 71, § 2, effective March 23, 2007; 2009, ch. 11, § 42, effective June 25, 2009; 2012, ch. 119, § 2, effective July 12, 2012; 2014, ch. 129, § 3, effective July 15, 2014; 2016 ch. 109, § 2, effective July 15, 2016.

Legislative Research Commission Note.

(7/12/2012). 2012 Ky. Acts ch. 119, sec. 4, provides that this statute, as amended by 2012 Ky. Acts ch. 119, sec. 2, “shall apply to taxable years beginning on or after January 1, 2014.”

(3/23/2007). Under the authority of KRS 7.136(1), the Reviser of Statutes in codification has changed the internal numbering system of subsections (2), (3), and (13) of this statute by inserting paragraph divisions (a), (b), and (c). The meaning of the text renumbered is not changed.

NOTES TO DECISIONS

1.Disclosure of Confidential Information.

The language of subdivision (1)(c)2.b. of KRS 61.878 is quite clear: an entity seeking tax credits pursuant to KRS Chapter 154 need not disclose confidential information submitted in applying for such credits. Hoy v. Kentucky Indus. Revitalization Auth., 907 S.W.2d 766, 1995 Ky. LEXIS 125 ( Ky. 1995 ).

The financial information required to be submitted by corporation in its application to Kentucky Industrial Revitalization Authority (KIRA) that detailed the company’s business and revitalization project and included such information as a financial history of the corporation, a projected cost of the project, the specific amount and timing of capital investment, copies of financial statements and a detailed description of the company’s productivity, efficiency and financial stability concerning the inner workings of a corporation is “generally recognized as confidential or proprietary” and falls within the wording of KRS 61.878(1)(c)2.b.. Hoy v. Kentucky Indus. Revitalization Auth., 907 S.W.2d 766, 1995 Ky. LEXIS 125 ( Ky. 1995 ).

Opinions of Attorney General.

The Kentucky Industrial Revitalization Authority must release those portions of General Electric’s (GE) application and report which have a direct bearing on GE’s eligibility for the authority’s tax incentive program, specifically, its need for the economic revitalization program, the projected amount and timing of capital investment of GE in the economic revitalization project, and the projected number of employees to be retained and to be hired in the future; however, those portions of the application and report that contain information which reveals GE’s private financial affairs may be withheld. OAG 93-ORD-85.

154.26-085. Options for companies with preliminary approval or final agreement before July 13, 2004.

  1. If, prior to July 13, 2004, the authority has given its preliminary approval designating an eligible company as a preliminarily approved company and authorizing the undertaking of an economic revitalization project, but has not entered into a final agreement with the company, the company shall have the one-time option to:
    1. Operate under the existing agreement as preliminarily approved; or
    2. Request the authority to amend the agreement to comply with the amendments to KRS 154.26-090 , 154.26-100 , and 141.310 in 2004 Ky. Acts ch. 105, secs. 12, 13, 14, and 21.
  2. If, prior to July 13, 2004, the authority has entered into a final agreement with an eligible company, and if the final agreement is still in effect, the company shall have the one-time option to:
    1. Operate under the existing final agreement; or
    2. Request the authority to amend only the employee assessment portion of the final agreement to comply with the amendment to KRS 154.26-100 in 2004 Ky. Acts ch. 105, sec. 13.

History. Enact. Acts 2004, ch. 105, § 15, effective July 13, 2004; 2019 ch. 151, § 66, effective June 27, 2019.

Legislative Research Commission Notes.

(6/27/2019). Section 85 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 66 of that Act apply retroactively to April 14, 2018.

(4/27/2018). KRS 136.0704 was repealed in 2018 Ky. Acts chs. 171 and 207, but a conforming amendment was not made to this statute to address the reference it contains to KRS 136.0704 . The Reviser of Statutes has determined that making such a conforming change during the 2018 codification exceeds the permissible correction of manifest clerical or typographical errors under KRS 7.136(1)(h). Therefore, the reference to KRS 136.0704 remains unchanged and would have to be changed pursuant to future legislative action.

(7/13/2004). This section, as enacted in 2004 Ky. Acts ch. 105, sec. 15, is substantially similar to 154.26-115 , as enacted in 2004 Ky. Acts ch. 18, sec. 3.

154.26-090. Revitalization agreement — Amended agreement — Tax credits — Occupational license fee termination — Assessment fee — Effect of excess in assessments.

  1. The authority, upon adoption of its final approval, may enter into, with any approved company, an agreement with respect to its project or a supplemental project agreement with respect to its supplemental project. The terms and provisions of each agreement and supplemental project agreement, including the amount of approved costs and any limitations the authority may deem necessary, shall be determined by negotiations between the authority and the approved company, except that each agreement and supplemental project agreement shall include the following provisions:
    1. The amount the approved company may recover through inducements under this subchapter shall not exceed seventy-five percent (75%) of approved costs;
    2. The date by which the approved company will have completed the original project and supplemental project. Within three (3) months of the completion date of the original project or supplemental project, the approved company shall document the actual cost of the project or supplemental project in a manner acceptable to the authority. The authority may employ an independent consultant or utilize technical resources to verify the cost of the project or supplemental project. The approved company shall reimburse the authority for the cost of the consultant;
    3. In consideration of the execution of the agreement or supplemental project agreement, the approved company may be permitted, during a period not to exceed ten (10) years commencing on the date of the agreement or supplemental project agreement and during which the agreement or supplemental project agreement is in effect, the following inducements:
      1. A credit against the Kentucky tax imposed by KRS 141.020 or 141.040 on the income of the approved company generated by or arising out of the economic revitalization project or supplemental project, and a credit against the limited liability entity tax imposed by KRS 141.040 1 on Kentucky gross profits or Kentucky gross receipts as determined under KRS 141.403 . The ordering of credits shall be as provided in KRS 141.0205 ; and
      2. The aggregate assessment withheld by the approved company in each year;
    4. The tax credits allowed to the approved company shall be equal to the lesser of the total amount of the tax liability or the amount that the company may recover under paragraph (a) of this subsection that has not yet been recovered, reduced by any recovery through the collection of assessments and appropriations made under any appropriation agreement. The credit shall be allowed for each fiscal year of the approved company during the term of the agreement and for which a tax return of the approved company is filed until the amount that the company may recover under paragraph (a) of this subsection has been received through a combination of credits, assessments, if assessments are elected to be imposed, and appropriations made under any appropriation agreement. The approved company shall not be required to pay estimated tax payments as prescribed under KRS 141.044 or 141.305 on income, Kentucky gross profits or Kentucky gross receipts from the economic revitalization project. Ninety (90) days after the filing of the tax return of the approved company, the Department of Revenue of the Commonwealth shall certify to the authority for the preceding fiscal year of an approved company for which a return was filed with respect to an economic revitalization project of the approved company the state tax liability of the approved company receiving inducements under KRS 154.26-015 to 154.26-100 and the amount of any tax credits taken pursuant to this section;
    5. The agreement shall provide that the term shall not be longer than the earlier of:
      1. The date on which the approved company has received inducements or withheld assessments equal to the amount that the company may recover under paragraph (a) of this subsection; or
      2. Ten (10) years from the date of the execution of the later of the agreement or supplemental project agreement;
    6. Prior to execution of the agreement or supplemental project agreement, the eligible company shall secure from all local governmental authorities responsible for collecting local occupational license fees one (1) of the following:
      1. A resolution or order of the local governmental entities acknowledging and consenting to the termination or partial termination of the receipt of local occupational license fees paid by the approved company on behalf of its employees to the local government entities resulting from the execution of the agreement or supplemental project agreement; or
      2. In lieu of the credit against the local occupational license fee, an appropriation agreement with the authority and the local governmental entities by which the local governmental entities will appropriate funds in an amount equal to the amount of the credit of the local occupational license fee for the benefit of the approved company in a manner consistent with the applicable state laws;
    7. If more than one (1) local occupational license fee is imposed upon the employees of the approved company, the assessment imposed upon the employees shall be credited against the local occupational license fee and shall be apportioned to each local occupational license fee according to each local occupational license fee’s proportion to the total of all local occupational license fees for such employees. No credit, or portion thereof shall be allowed against any local occupational license fee imposed by or dedicated solely to a local board of education;
    8. If in any fiscal year of the approved company during which the agreement or supplemental project agreement is in effect the total of the tax credits granted to the approved company plus the assessment collected from the wages of the employees exceeds the expended portion of the amount that the approved company may recover under paragraph (a) of this subsection, the approved company shall pay the excess to the Commonwealth as income tax;
    9. If in any fiscal year of the approved company during which the agreement or supplemental project agreement is in effect the assessment collected from the wages of the employees exceeds the expended portion of the amount that the approved company may recover under paragraph (a) of this subsection, the assessment collected from the wages of the employees shall cease for the remainder of that fiscal year of the approved company, the approved company shall resume normal personal income tax and occupational license fee withholdings from the employees’ wages for the remainder of that fiscal year, and the approved company shall remit to the Commonwealth and applicable local jurisdictions their respective shares of the excess assessment collected on the withholding filing date for employees’ wages next succeeding the first date when the approved company collected excess assessments; and
    10. All proceeds of any loan or other financing incurred in connection with the economic revitalization project shall be expended by the approved company within five (5) years from the date of the agreement. In the event that all proceeds of any loan or other financing incurred in connection with the economic revitalization project are not fully expended within the five (5) year period, the authorized inducements shall automatically be reduced to and shall not be greater than the amount of proceeds actually expended by the approved company within the five (5) year period.
  2. If the approved company elects to utilize the assessment as prescribed in KRS 154.26-100 , it shall not assess the wages of an employee who is party to an individual employment contract with the approved company.
  3. Neither the appropriation agreement, nor the agreement, nor the supplemental project agreement shall be transferable or assignable by the approved company without the expressed written consent of the authority.
  4. In addition to the inducements permitted by this section, an approved company with a supplemental project agreement executed pursuant to this section may also qualify for the sales and use tax exemption established by KRS 139.480 for its purchase and use of any property to be incorporated into the construction, rebuilding, modification, or expansion of a blast furnace or any of its components or appurtenant equipment or structures as part of the approved supplemental project.

History. Enact. Acts 1992, ch. 359, § 10, effective July 14, 1992; 1994, ch. 450, § 25, effective July 15, 1994; 1996, ch. 194, § 47, effective July 15, 1996; 2000, ch. 547, § 3, effective July 14, 2000; 2004, ch. 18, § 1, effective July 13, 2004; 2004, ch. 105, § 12, effective July 13, 2004; 2005, ch. 85, § 582, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 57, effective June 28, 2006; 2012, ch. 119, § 3, effective July 12, 2012; 2014, ch. 129, § 4, effective July 15, 2014.

Legislative Research Commission Note.

(7/12/2012). 2012 Ky. Acts ch. 119, sec. 4, provides that this statute, as amended by 2012 Ky. Acts ch. 119, sec. 3, “shall apply to taxable years beginning on or after January 1, 2014.”

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.26-095. Authority and Department of Revenue to report to Interim Joint Committee on Appropriations and Revenue.

By July 1, 2019, and by each July 1 thereafter, the authority and the Department of Revenue shall jointly provide a report to the Interim Joint Committee on Appropriations and Revenue for each project approved under this subchapter. The report shall contain the following information:

  1. The name of each approved company and the location of each economic revitalization project;
  2. The amount of approved costs for each economic revitalization project;
  3. The date the agreement was approved;
  4. Whether an assessment fee authorized by KRS 154.26-100 was a part of the agreement;
  5. The number of employees employed in manufacturing, the number of employees employed in coal mining and processing, or the number of employees employed in agribusiness operations;
  6. Whether the project was a supplemental project; and
  7. By taxable year, the amount of tax credit claimed on the taxpayer’s return, any amount denied by the department, and the amount of any tax credit remaining to be carried forward.

HISTORY: 2018 ch. 171, § 95, effective April 14, 2018; 2018 ch. 207, § 95, effective April 27, 2018; 2019 ch. 151, § 67, effective June 27, 2019.

Legislative Research Commission Notes.

(6/27/2019). Section 85 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 67 of that Act apply retroactively to April 14, 2018.

(4/27/2018). This statute was created by 2018 Ky. Acts ch. 171, sec. 95 and ch. 207, sec. 95, which are nearly identical and have been codified together.

154.26-100. Job revitalization assessment fee — Certification of tax liability of approved company.

  1. The approved company may require that each employee subject to the income tax imposed by KRS 141.020 , whose job was preserved or created as a result of the project or supplemental project, as a condition of employment or the retention of employment, agree to pay an assessment, not to exceed, during any fiscal year of the approved company, five percent (5%) of the gross wages of each employee subject to the income tax imposed by KRS 141.020 whose job was retained or created as a result of the project or supplemental project, unless:
    1. The appropriation agreement is consummated, in which case the assessment shall be four percent (4%) of each employee’s gross wages subject to the income tax imposed by KRS 141.020;
    2. The local government or governments in which the project is located have a local occupational license fee of less than one percent (1%) and agree to forgo all of their local occupational license fee, in which case the assessment shall equal four percent (4%) plus the percentage of the local occupational license fee that the local government or governments have agreed to forgo; or
    3. The local government or governments in which the project is located have no occupational license fee, in which case the assessment shall be four percent (4%).
  2. Each assessed employee shall be entitled to a credit against his Kentucky income tax required to be withheld under KRS 141.310 in the form of a simultaneous adjustment equal to four-fifths (4/5) of the assessment, unless:
    1. The appropriation agreement is consummated, in which case the credit shall be equal to one hundred percent (100%) of the assessment;
    2. The local government or governments in which the project or supplemental project is located have a local occupational license fee of less than one percent (1%) and agree to forgo all of their local occupational license fee, in which case the credit shall be equal to the total assessment less the local occupational license fee; or
    3. If the local government or governments in which the project or supplemental project is located have no local occupational license fee, in which case the credit shall be equal to one hundred percent (100%) of the assessment.
  3. Each assessed employee also shall be entitled to a credit against his local occupational license fee in the form of a simultaneous adjustment of his local occupational license fee withholding equal to one-fifth (1/5) of the assessment, unless:
    1. The appropriation agreement is consummated; or
    2. The local occupational license fee is less than one percent (1%), in which case the credit shall equal the same amount as the local occupational license fee.
  4. If an approved company shall elect to impose the assessment as a condition of employment or the retention of employment, it shall deduct the assessment from each paycheck of each employee subject to subsections (2) and (3) of this section.
  5. Any approved company collecting an assessment as provided in subsection (1) of this section shall make its payroll books and records available to the authority at such reasonable times as the authority shall request, and shall file with the authority the documentation respecting the assessment the authority may require.
  6. Any assessment of the wages of the employees of an approved company pursuant to subsection (1) of this section shall permanently lapse upon expiration or termination of the agreement.
  7. By October 1 of each year, the Department of Revenue of the Commonwealth shall certify to the authority, in the form of an annual report, aggregate tax credits claimed on tax returns filed during the fiscal year ending June 30 of that year and job revitalization assessment fees taken during the prior calendar year by approved companies with respect to their economic revitalization projects and supplemental projects under this subchapter, and shall certify to the authority, within ninety (90) days from the date an approved company has filed its state tax return, when an approved company has taken tax credits equal to its total inducements.

History. Enact. Acts 1992, ch. 359, § 11, effective July 14, 1992; 1994, ch. 450, § 26, effective July 15, 1994; 1996, ch. 194, § 48, effective July 15, 1996; 2000, ch. 300, § 22, effective July 14, 2000; 2000, ch. 547, § 4, effective July 14, 2000; 2004, ch. 18, § 2, effective July 13, 2004; 2004, ch. 105, § 13, effective July 13, 2004; 2005, ch. 85, § 583, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 1, effective June 28, 2006; 2014, ch. 129, § 5, effective July 15, 2014.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.26-101. Short title for KRS 154.26-010 to 154.26-100.

KRS 154.26-010 to 154.26-100 shall be known as the Kentucky Industrial Revitalization Act.

History. Enact. Acts 1996, ch. 194, § 44, effective July 15, 1996.

154.26-110. Application to approved company of KRS 154.26-080 and 154.26-090.

If the authority gives its preliminary approval designating an eligible company and authorizing the undertaking of an economic revitalization project prior to July 15, 1996, and the authority by final approval approves the eligible company as an approved company and the project of the eligible company as an economic revitalization project, and the authority and the eligible company enter into a revitalization agreement no later than June 30, 1997, then the approved company shall not be subject to KRS 154.26-080 and 154.26-090 (1) and shall be subject to KRS 154.26-080 and 154.26-090 (1) as in effect prior to July 15, 1996.

History. Enact. Acts 1996, ch. 194, § 49, effective July 15, 1996.

154.26-115. Options for companies with preliminary approval or final agreement before July 13, 2004.

  1. If, prior to July 13, 2004, the authority has given its preliminary approval designating an eligible company as a preliminarily approved company and authorizing the undertaking of an economic revitalization project, but has not entered into a final agreement with the company, the company shall have the one-time option to:
    1. Operate under the existing agreement as preliminarily approved; or
    2. Request the authority to amend the agreement to comply with the amendments to KRS 154.26-090 , 154.26-100 , and 141.310 in 2004 Ky. Acts ch. 18, secs. 1, 2, 4, and 5.
  2. If, prior to July 13, 2004, the authority has entered into a final agreement with an eligible company, and if the final agreement is still in effect, the company shall have the one-time option to:
    1. Operate under the existing final agreement; or
    2. Request the authority to amend only the employee assessment portion of the final agreement to comply with the amendment to KRS 154.26-100 in 2004 Ky. Acts ch. 18, sec. 2.

History. Enact. Acts 2004, ch. 18, § 3, effective July 13, 2004; 2019 ch. 151, § 68, effective June 27, 2019.

Legislative Research Commission Notes.

(6/27/2019). Section 85 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 68 of that Act apply retroactively to April 14, 2018.

(4/27/2018). KRS 136.0704 was repealed in 2018 Ky. Acts chs. 171 and 207, but a conforming amendment was not made to this statute to address the reference it contains to KRS 136.0704 . The Reviser of Statutes has determined that making such a conforming change during the 2018 codification exceeds the permissible correction of manifest clerical or typographical errors under KRS 7.136(1)(h). Therefore, the reference to KRS 136.0704 remains unchanged and would have to be changed pursuant to future legislative action.

(7/13/2004). This section, as enacted in 2004 Ky. Acts ch. 18, sec. 3, is substantially similar to KRS 154.26-085 , as enacted in 2004 Ky. Acts ch. 105, sec. 15.

154.26-120. Costs of remediation of property as eligible costs.

Costs incurred by an applicant in remediating a property in accordance with KRS 224.1-510 to 224.1-532 shall be considered eligible costs for the purposes of KRS 154.26-010 to 154.26-100 .

History. Enact. Acts 2001, ch. 128, § 13, effective June 21, 2001.

Compiler’s Notes.

This section is set out above to reflect a correction to the section reference appearing in section from 224.01-510 to 224.01-532 to 224.1-510 to 224.1-532 due to renumbering by the state reviser effective in 2013.

154.26-125. Costs of certain carbon steel-making operations considered eligible costs.

Costs incurred by an applicant required for the start-up of a blast furnace and related carbon steel-making operations that were idled due to unfairly traded imports of carbon steel shall be considered eligible costs for the purposes of KRS 154.26-010 to 154.26-100 .

HISTORY: 2016 ch. 109, § 3, effective July 15, 2016.

SUBCHAPTER 27. Incentive for Energy Independence Act

154.27-010. Definitions for subchapter. [Effective until July 1, 2021]

As used in this subchapter:

  1. “Activation date” means the date on which an approved company begins incurring recoverable costs or engaging in recoverable activity pursuant to the tax incentive agreement. The activation date shall be set forth in the tax incentive agreement and shall be a date within five (5) years of the date of final approval of the tax incentive agreement. The authority may extend the five (5) year period to no more than seven (7) years upon written application for an extension by the approved company. To implement the activation date, the approved company shall notify the authority of its intent to activate the tax incentives authorized in the tax incentive agreement. The activation date shall apply to all incentives included in the tax incentive agreement regardless of whether the approved company has met the requirements to receive all incentives at that time. If the approved company does not implement the activation date before the date established in the tax incentive agreement, the activation date shall be the date established in the tax incentive agreement;
  2. “Affiliate” has the same meaning as in KRS 154.22-010 ;
    1. “Alternative fuel facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, after the new construction, retrofit, or upgrade, primarily produces for sale alternative transportation fuels. For a retrofit of an existing facility, the new modification or addition within the facility shall primarily produce alternative transportation fuel for sale. (3) (a) “Alternative fuel facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, after the new construction, retrofit, or upgrade, primarily produces for sale alternative transportation fuels. For a retrofit of an existing facility, the new modification or addition within the facility shall primarily produce alternative transportation fuel for sale.
    2. The alternative fuel facility may produce electricity as a by-product if the primary purpose for which the facility is constructed, retrofitted, or upgraded, and the primary function of the facility remains the production and sale of alternative transportation fuels;
  3. “Alternative transportation fuels” has the same meaning as in KRS 152.715 ;
  4. “Approved company” means a corporation, limited liability company, partnership, registered limited liability partnership, sole proprietorship, business trust, or any other entity approved for incentives for an eligible project;
  5. “Authority” means the Kentucky Economic Development Finance Authority established by KRS 154.20-010 ;
  6. “Base amount” means the tons of coal, thousand (1000) cubic foot units (Mcf) of natural gas, or gallons of natural gas liquids purchased and used or severed and used by the approved company as feedstock for an eligible project during the twelve (12) months prior to the month in which the approved company first begins receiving incentives under KRS 143.024 or 143A.025 , and 154.27-060 , that were subject to the tax imposed by KRS 143.020 or 143A.020 ;
  7. “Biomass resources” has the same meaning as in KRS 152.715 ;
    1. “Capital investment” means: (9) (a) “Capital investment” means:
      1. Obligations incurred for labor and to contractors, subcontractors, builders, and materialmen in connection with the acquisition, construction, installation, equipping, upgrading, or retrofitting of an eligible project;
      2. The cost of acquiring land or rights in land and any cost incident thereto, including recording fees;
      3. The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, installation, equipping, upgrading, or retrofitting of an eligible project which is not paid by the contractor or otherwise provided;
      4. All costs of architectural and engineering services, including test borings, surveys, estimates, plans, specifications, preliminary investigations, supervision of construction, and the performance of all the duties required by or consequent upon the acquisition, construction, installation, equipping, upgrading, or retrofitting of an eligible project;
      5. All costs required to be paid under the terms of any contract for the acquisition, construction, installation, equipping, upgrading, or retrofitting of an eligible project; and
      6. All other costs of a nature comparable to those described in this subsection.
    2. “Capital investment” does not include costs described in paragraph (a) of this subsection that are paid for with funds received from the federal government or that are reimbursed by the federal government;
  8. “Carbon capture ready” means planning for or anticipating capture of carbon dioxide in a manner to facilitate continued operation of the facility in compliance with applicable federal requirements;
  9. “Carbon dioxide transmission pipeline” means the in-state portion of a pipeline, including appurtenant facilities, property rights, and easements, that is used exclusively for the purpose of transporting carbon dioxide to a point of sale, storage, or other carbon management applications;
  10. “Center for Applied Energy Research” means the University of Kentucky Center for Applied Energy Research;
  11. “Commonwealth” means the Commonwealth of Kentucky;
  12. “Construction period” means the period beginning with the activation date of the eligible project and ending on a date set forth in the tax incentive agreement, which shall be no later than five (5) years from the activation date;
  13. “Department” means the Department of Revenue;
  14. “Eligible project” means:
    1. An alternative fuel facility or a gasification facility meeting the investment requirements of KRS 154.27-020 ;
    2. An energy-efficient alternative fuel facility meeting the investment requirements of KRS 154.27-020 ;
    3. A renewable energy facility meeting the investment requirements of KRS 154.27-020; or
    4. A carbon dioxide transmission pipeline meeting the investment requirements of KRS 154.27-020;
  15. “Energy-efficient alternative fuel facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2010, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2010, and that, after the new construction, retrofit, or upgrade, will produce for sale energy-efficient alternative fuels. For a retrofit of an existing facility, the new modification or addition within the facility shall produce for sale energy-efficient alternative fuels;
  16. “Energy-efficient alternative fuels” means homogeneous fuels that:
    1. Are produced from processes designed to densify feedstock coal, waste coal, or biomass resources; and
    2. Have an energy content that is greater than the feedstock coal, waste coal, or biomass resource;
  17. “Estimated labor component” means the projected percentage of the total capital investment attributable to labor;
    1. “Facility” means a single location within the Commonwealth at which machinery and equipment are used in a manufacturing process that transforms raw materials into a product with commercial value. (20) (a) “Facility” means a single location within the Commonwealth at which machinery and equipment are used in a manufacturing process that transforms raw materials into a product with commercial value.
      1. The facility shall include the physical plant structure where the manufacturing process occurs and machinery and equipment within the physical plant structure.
      2. The facility may include:
        1. On-site machinery and equipment used exclusively for processing coal or other raw materials for use in the manufacturing process at the facility;
        2. For an alternative fuel facility or gasification facility, on-site power station operations, if those operations are primarily used to produce electricity for the facility;
        3. On-site refining operations, if those operations are used exclusively to refine and blend fuels produced by the facility; and
        4. The in-state portion of a pipeline, including appurtenant facilities, property rights, and easements, if the exclusive purpose of the pipeline is to transport carbon dioxide from the facility to a point of sale, storage, or other carbon management applications.
    2. “Facility” shall not include any mining operations, or drilling and production operations for natural gas;
  18. “Gasification process” means a process that converts any carbon-containing material into a synthesis gas composed primarily of carbon monoxide and hydrogen;
    1. “Gasification facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, after the new construction, retrofit, or upgrade, primarily produces for sale: (22) (a) “Gasification facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, after the new construction, retrofit, or upgrade, primarily produces for sale:
      1. Alternative transportation fuels;
      2. Synthetic natural gas;
      3. Chemicals;
      4. Chemical feedstocks; or
      5. Liquid fuels;

        from coal, waste coal, coal-processing waste, or biomass resources, through a gasification process. For a retrofit of an existing facility, the new modification or addition within the facility shall primarily produce one (1) or more of the products set forth in this paragraph.

    2. The gasification facility may produce electricity as a by-product if the primary purpose for which the facility is constructed, retrofitted, or upgraded, and the primary function of the facility remains the production and sale of alternative transportation fuels, synthetic natural gas, chemicals, chemical feedstocks, or liquid fuels;
  19. “Kentucky gross profits” has the same meaning as in KRS 141.0401 ;
  20. “Kentucky gross receipts” has the same meaning as in KRS 141.0401 ;
  21. “Post-construction incentives” means the incentives available under KRS 154.27-060 and 154.27-080 ;
  22. “Renewable energy facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded after August 30, 2007, and that, after the new construction, retrofit, or upgrade, utilizes:
    1. Wind power, biomass resources, landfill methane gas, hydropower, or other similar renewable resources to generate electricity in excess of one (1) megawatt for sale to unrelated entities; or
    2. Solar power to generate electricity in excess of fifty (50) kilowatts for sale to unrelated entities.

      For a retrofit of an existing facility, the modification or addition shall primarily result in the production of electricity as described in paragraph (a) or (b) of this subsection;

  23. “Resident” has the same meaning as in KRS 141.010 ;
  24. “Retrofit” means a modification or addition to an existing facility that results in the production of a new and different product or uses a new or different process to produce the same product at the facility. Modifications or additions to a facility that maintain, restore, mend, or repair a facility shall not be considered a retrofit of the facility, and shall not be considered part of the capital investment if undertaken at the same time as a retrofit;
  25. “Synthetic natural gas” has the same meaning as in KRS 152.715 ;
  26. “Tax incentive agreement” means an agreement entered into in accordance with KRS 154.27-040 ;
  27. “Termination date” means a date established by the tax incentive agreement that is no more than twenty-five (25) years from the activation date; and
  28. “Upgrade” means an investment in an existing facility that results in an increase in the productivity of the facility. Increased productivity shall be measured in relation to the type of products that are required to be produced by that facility to be an eligible project.

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 1, effective August 30, 2007; 2010, ch. 24, § 199, effective July 15, 2010; 2010, ch. 60, § 1, effective July 15, 2010; 2010, ch. 139, § 2, effective July 15, 2010; 2011, ch. 82, § 2, effective June 8, 2011; 2018 ch. 207, § 149, effective July 14, 2018.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

Research References and Practice Aids

Kentucky Bench & Bar.

Early, Not All Biofuels Are Green, Vol. 74, No. 2, March 2010, Ky. Bench & Bar 8.

154.27-010. Definitions for subchapter. [Effective July 1, 2021]

As used in this subchapter:

  1. “Activation date” means the date on which an approved company begins incurring recoverable costs or engaging in recoverable activity pursuant to the tax incentive agreement. The activation date shall be set forth in the tax incentive agreement and shall be a date within five (5) years of the date of final approval of the tax incentive agreement. The authority may extend the five (5) year period to no more than seven (7) years upon written application for an extension by the approved company. To implement the activation date, the approved company shall notify the authority of its intent to activate the tax incentives authorized in the tax incentive agreement. The activation date shall apply to all incentives included in the tax incentive agreement regardless of whether the approved company has met the requirements to receive all incentives at that time. If the approved company does not implement the activation date before the date established in the tax incentive agreement, the activation date shall be the date established in the tax incentive agreement;
  2. “Affiliate” has the same meaning as in KRS 154.22-010 ;
    1. “Alternative fuel facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, after the new construction, retrofit, or upgrade, primarily produces for sale alternative transportation fuels. For a retrofit of an existing facility, the new modification or addition within the facility shall primarily produce alternative transportation fuel for sale. (3) (a) “Alternative fuel facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, after the new construction, retrofit, or upgrade, primarily produces for sale alternative transportation fuels. For a retrofit of an existing facility, the new modification or addition within the facility shall primarily produce alternative transportation fuel for sale.
    2. The alternative fuel facility may produce electricity as a by-product if the primary purpose for which the facility is constructed, retrofitted, or upgraded, and the primary function of the facility remains the production and sale of alternative transportation fuels;
  3. “Alternative transportation fuels” has the same meaning as in KRS 152.715 ;
  4. “Approved company” means a corporation, limited liability company, partnership, registered limited liability partnership, sole proprietorship, business trust, or any other entity approved for incentives for an eligible project;
  5. “Authority” means the Kentucky Economic Development Finance Authority established by KRS 154.20-010 ;
  6. “Base amount” means the tons of coal, thousand (1000) cubic foot units (Mcf) of natural gas, or gallons of natural gas liquids purchased and used or severed and used by the approved company as feedstock for an eligible project during the twelve (12) months prior to the month in which the approved company first begins receiving incentives under KRS 143.024 or 143A.025 , and 154.27-060 , that were subject to the tax imposed by KRS 143.020 or 143A.020 ;
  7. “Blockchain technology” or “blockchain” means shared or distributed data structures or digital ledgers governed by consensus protocols and maintained by peer-to-peer networks that:
    1. Store digital transactions; and
    2. Verify and secure transactions cryptographically;
  8. “Biomass resources” has the same meaning as in KRS 152.715 ;
    1. “Capital investment” means: (10) (a) “Capital investment” means:
      1. Obligations incurred for labor and to contractors, subcontractors, builders, and materialmen in connection with the acquisition, construction, installation, equipping, upgrading, or retrofitting of an eligible project;
      2. The cost of acquiring land or rights in land and any cost incident thereto, including recording fees;
      3. The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, installation, equipping, upgrading, or retrofitting of an eligible project which is not paid by the contractor or otherwise provided;
      4. All costs of architectural and engineering services, including test borings, surveys, estimates, plans, specifications, preliminary investigations, supervision of construction, and the performance of all the duties required by or consequent upon the acquisition, construction, installation, equipping, upgrading, or retrofitting of an eligible project;
      5. All costs required to be paid under the terms of any contract for the acquisition, construction, installation, equipping, upgrading, or retrofitting of an eligible project; and
      6. All other costs of a nature comparable to those described in this subsection.
    2. “Capital investment” does not include costs described in paragraph (a) of this subsection that are paid for with funds received from the federal government or that are reimbursed by the federal government;
  9. “Carbon capture ready” means planning for or anticipating capture of carbon dioxide in a manner to facilitate continued operation of the facility in compliance with applicable federal requirements;
  10. “Carbon dioxide transmission pipeline” means the in-state portion of a pipeline, including appurtenant facilities, property rights, and easements, that is used exclusively for the purpose of transporting carbon dioxide to a point of sale, storage, or other carbon management applications;
  11. “Center for Applied Energy Research” means the University of Kentucky Center for Applied Energy Research;
  12. “Commercial mining of cryptocurrency” means the process through which blockchain technology is used to mine cryptocurrency at a cryptocurrency facility, and includes the process through which blockchain transactions are verified and accepted by adding the transactions to a blockchain ledger, which involves solving complex mathematical cryptographic problems associated with a block containing transaction data;
  13. “Commonwealth” means the Commonwealth of Kentucky;
  14. “Construction period” means the period beginning with the activation date of the eligible project and ending on a date set forth in the tax incentive agreement, which shall be no later than five (5) years from the activation date;
  15. “Consensus protocol” means a set of rules and procedures that control how and when blockchain transactions are verified, validated, recorded, and recognized;
  16. “Cryptocurrency” means a type of virtual currency that utilizes blockchain technology and that:
    1. Can be digitally traded between users; or
    2. Can be converted or exchanged for legal tender;
  17. “Cryptocurrency facility” means a facility located in the Commonwealth that is utilized in the commercial mining of cryptocurrency or in hosting persons engaged in the commercial mining of cryptocurrency through utilization of the facility’s infrastructure, including servers and network hardware powered by Internet bandwidth, electricity, and other services generally required for such mining operations;
  18. “Department” means the Department of Revenue;
  19. “Eligible project” means:
    1. An alternative fuel facility or a gasification facility meeting the investment requirements of KRS 154.27-020 ;
    2. An energy-efficient alternative fuel facility meeting the investment requirements of KRS 154.27-020 ;
    3. A renewable energy facility meeting the investment requirements of KRS 154.27-020;
    4. A carbon dioxide transmission pipeline meeting the investment requirements of KRS 154.27-020; or
    5. A cryptocurrency facility meeting the investment requirements of Section 2 of this Act;
  20. “Energy-efficient alternative fuel facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2010, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2010, and that, after the new construction, retrofit, or upgrade, will produce for sale energy-efficient alternative fuels. For a retrofit of an existing facility, the new modification or addition within the facility shall produce for sale energy-efficient alternative fuels;
  21. “Energy-efficient alternative fuels” means homogeneous fuels that:
    1. Are produced from processes designed to densify feedstock coal, waste coal, or biomass resources; and
    2. Have an energy content that is greater than the feedstock coal, waste coal, or biomass resource;
  22. “Estimated labor component” means the projected percentage of the total capital investment attributable to labor;
    1. “Facility” means a single location within the Commonwealth at which machinery and equipment are used: (25) (a) “Facility” means a single location within the Commonwealth at which machinery and equipment are used:
      1. In a manufacturing process that transforms raw materials into a product with commercial value; or
      2. In the commercial mining of cryptocurrency or in hosting persons engaged in the commercial mining of cryptocurrency.
    2. The facility shall include the physical plant structure where the manufacturing process occurs or where the commercial mining of cryptocurrency occurs and machinery and equipment within the physical plant structure.
    3. The facility may include:
      1. On-site machinery and equipment used exclusively for processing coal or other raw materials for use in the manufacturing process at the facility;
      2. For an alternative fuel facility or gasification facility, on-site power station operations, if those operations are primarily used to produce electricity for the facility;
      3. On-site refining operations, if those operations are used exclusively to refine and blend fuels produced by the facility; and
      4. The in-state portion of a pipeline, including appurtenant facilities, property rights, and easements, if the exclusive purpose of the pipeline is to transport carbon dioxide from the facility to a point of sale, storage, or other carbon management applications.
    4. “Facility” shall not include any mining operations, or drilling and production operations for natural gas, unless such coal, natural resource, or natural gas operations are being used for purposes of, or are hosting, the commercial mining of cryptocurrency, in which case such operations shall be a facility;
  23. “Gasification process” means a process that converts any carbon-containing material into a synthesis gas composed primarily of carbon monoxide and hydrogen;
    1. “Gasification facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, after the new construction, retrofit, or upgrade, primarily produces for sale: (27) (a) “Gasification facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 30, 2007, and that, after the new construction, retrofit, or upgrade, primarily produces for sale:
      1. Alternative transportation fuels;
      2. Synthetic natural gas;
      3. Chemicals;
      4. Chemical feedstocks; or
      5. Liquid fuels;

        from coal, waste coal, coal-processing waste, or biomass resources, through a gasification process. For a retrofit of an existing facility, the new modification or addition within the facility shall primarily produce one (1) or more of the products set forth in this paragraph.

    2. The gasification facility may produce electricity as a by-product if the primary purpose for which the facility is constructed, retrofitted, or upgraded, and the primary function of the facility remains the production and sale of alternative transportation fuels, synthetic natural gas, chemicals, chemical feedstocks, or liquid fuels;
  24. “Kentucky gross profits” has the same meaning as in KRS 141.0401 ;
  25. “Kentucky gross receipts” has the same meaning as in KRS 141.0401 ;
  26. “Post-construction incentives” means the incentives available under KRS 154.27-060 and 154.27-080 ;
  27. “Renewable energy facility” means a facility located in Kentucky that is newly constructed on or after August 30, 2007, or an existing facility located in Kentucky that is retrofitted or upgraded after August 30, 2007, and that, after the new construction, retrofit, or upgrade, utilizes:
    1. Wind power, biomass resources, landfill methane gas, hydropower, or other similar renewable resources to generate electricity in excess of one (1) megawatt for sale to unrelated entities; or
    2. Solar power to generate electricity in excess of fifty (50) kilowatts for sale to unrelated entities. For a retrofit of an existing facility, the modification or addition shall primarily result in the production of electricity as described in paragraph (a) or (b) of this subsection;
  28. “Resident” has the same meaning as in KRS 141.010 ;
    1. “Retrofit” means a modification or addition to an existing facility that results in the production of a new and different product or services or uses a new or different process to produce the same product or services at the facility. (33) (a) “Retrofit” means a modification or addition to an existing facility that results in the production of a new and different product or services or uses a new or different process to produce the same product or services at the facility.
    2. Modifications or additions to a facility that maintain, restore, mend, or repair a facility shall not be considered a retrofit of the facility, and shall not be considered part of the capital investment if undertaken at the same time as a retrofit;
  29. “Synthetic natural gas” has the same meaning as in KRS 152.715 ;
  30. “Tax incentive agreement” means an agreement entered into in accordance with KRS 154.27-040 ;
  31. “Termination date” means a date established by the tax incentive agreement that is no more than twenty-five (25) years from the activation date; and
  32. “Upgrade” means an investment in an existing facility that results in an increase in the productivity of the facility. Increased productivity shall be measured in relation to the type of products or services that are required to be produced or performed by that facility to be an eligible project.

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 1, effective August 30, 2007; 2010, ch. 24, § 199, effective July 15, 2010; 2010, ch. 60, § 1, effective July 15, 2010; 2010, ch. 139, § 2, effective July 15, 2010; 2011, ch. 82, § 2, effective June 8, 2011; 2018 ch. 207, § 149, effective July 14, 2018; 2021 ch. 141, § 1, effective July 1, 2021.

154.27-020. Short title — Legislative findings — Purpose of subchapter — Incentives. [Effective until July 1, 2021]

  1. This subchapter shall be known as the “Incentives for Energy Independence Act.”
  2. The General Assembly hereby finds and declares that it is in the best interest of the Commonwealth to induce the location of innovative energy-related businesses in the Commonwealth in order to advance the public purposes of achieving energy independence, creating new jobs and new investment, and creating new sources of tax revenues that but for the inducements to be offered by the authority to approved companies would not exist.
  3. The purpose of this subchapter is to assist the Commonwealth in moving to the forefront of national efforts to achieve energy independence by reducing the Commonwealth’s reliance on imported energy resources. The provisions of this subchapter seek to accomplish this purpose by providing incentives for companies that, in a carbon capture ready manner, construct, retrofit, or upgrade facilities for the purpose of:
    1. Increasing the production and sale of alternative transportation fuels;
    2. Increasing the production and sale of synthetic natural gas, chemicals, chemical feedstocks, or liquid fuels, from coal, biomass resources, or waste coal through a gasification process;
    3. Increasing the production and sale of energy-efficient alternative fuels; or
    4. Generating electricity for sale through alternative methods such as solar power, wind power, biomass resources, landfill methane gas, hydropower, or other similar renewable resources.
  4. To qualify for the incentives provided in this subchapter, the following requirements shall be met:
    1. For an alternative fuel facility or gasification facility that uses oil shale, tar sands, or coal as the primary feedstock, the minimum capital investment shall be one hundred million dollars ($100,000,000);
    2. For an alternative fuel facility or gasification facility that uses biomass resources as the primary feedstock, the minimum capital investment shall be twenty-five million dollars ($25,000,000);
    3. For an energy-efficient alternative fuel facility, the minimum capital investment shall be twenty-five million dollars ($25,000,000);
    4. For an alternative fuel facility located in Kentucky that is newly constructed on or after August 1, 2010, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 1, 2010, and that, after the new construction, retrofit, or upgrade, primarily produces for sale alternative transportation fuels using natural gas or natural gas liquids as the primary feedstock, the minimum capital investment shall be one million dollars ($1,000,000); provided that the authority may approve a maximum of five (5) projects that meet the requirements of this paragraph;
    5. For a renewable energy facility, the minimum capital investment shall be one million dollars ($1,000,000); and
    6. For a carbon dioxide transmission pipeline, the minimum capital investment shall be fifty million dollars ($50,000,000).
  5. The incentives under the Incentives for Energy Independence Act are as follows:
    1. An advance disbursement of post-construction incentives for which an approved company has been approved, the maximum amount of which is based upon the estimated labor component of the total capital investment of the eligible project, and the utilization of Kentucky residents during the construction period as set forth in KRS 154.27-090 ;
    2. Sales and use tax incentives of up to one hundred percent (100%) of the taxes paid on purchases of tangible personal property made to construct, retrofit, or upgrade an eligible project, as set forth in KRS 139.517 and 154.27-070 ;
    3. Up to eighty percent (80%) of the severance taxes paid on the purchase or severance of:
      1. Coal that is subject to the tax imposed under KRS 143.020 and that is specifically used by an alternative fuel facility, energy-efficient alternative fuel facility, or a gasification facility as feedstock for an eligible project, as set forth in KRS 143.024 and 154.27-060 ; or
      2. Natural gas or natural gas liquids that are subject to the tax imposed under KRS 143A.020 and that are specifically used in an alternative fuel facility described in subsection (4)(d) of this section as feedstock for an eligible project, as set forth in KRS 143A.025 and 154.27-060 ;
    4. Up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.040 or 141.020 , and the limited liability entity tax imposed under KRS 141.040 1 on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the eligible project, as set forth in KRS 141.421 and 154.27-080 ; and
    5. Authorization for the approved company to impose a wage assessment of up to four percent (4%) of the gross wages of each employee subject to the Kentucky income tax:
      1. Whose job was created as a result of the eligible project;
      2. Who is employed by the approved company to work at the facility; and
      3. Who is on the payroll of the approved company or an affiliate of the approved company; as set forth in KRS 154.27-080 .
  6. The maximum recovery from all incentives approved under this subchapter for an eligible project shall not exceed fifty percent (50%) of the capital investment in the eligible project.
  7. The incentives available to an approved company shall be negotiated with and approved by the authority.
  8. If a newly constructed facility that qualifies for incentives under this subchapter is later upgraded or retrofitted in a manner that would qualify for incentives under this subchapter, the retrofit or upgrade shall be a separate eligible project, and the minimum investment requirements and carbon capture readiness requirements, if required, shall be met for the retrofit or upgrade to qualify for incentives under this subchapter.
  9. The General Assembly finds that the authorities granted by this subchapter are proper governmental and public purposes for which public moneys may be expended.

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 2, effective August 30, 2007; 2009 (1st Ex. Sess.), ch. 1, § 101, effective June 26, 2009; 2010, ch. 60, § 2, effective July 15, 2010; 2010, ch. 139, § 3, effective July 15, 2010; 2011, ch. 82, § 3, effective June 8, 2011; 2018 ch. 207, § 149, effective July 14, 2018.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

Legislative Research Commission Note.

(7/15/2010). 2010 Ky. Acts ch. 139, sec. 3, amended KRS 154.27-020 to add a new paragraph (d) to subsection (4) of the statute. This statute was also amended in 2010 Ky. Acts ch. 60, sec. 2, and that amendment added a new paragraph (c) to subsection (4). In codification, the lettering of the former paragraph (4)(c) has been changed to (4)(e) by the Reviser of Statutes under the authority of KRS 7.136 (1).

(8/30/2007). A manifest clerical or typographical error in subsection (5)(a) of this section has been corrected by the Reviser of Statutes during codification pursuant to the authority of KRS 7.136 .

Research References and Practice Aids

Kentucky Bench & Bar.

Early, Not All Biofuels Are Green, Vol. 74, No. 2, March 2010, Ky. Bench & Bar 8.

154.27-020. Short title — Legislative findings — Purpose of subchapter — Incentives. [Effective July 1, 2021]

  1. This subchapter shall be known as the “Incentives for Energy-related Business Act.”
  2. The General Assembly hereby finds and declares that it is in the best interest of the Commonwealth to induce the location of innovative energy-related businesses in the Commonwealth in order to advance the public purposes of achieving energy independence, creating new and advanced technologies, creating new jobs and new investment, and creating new sources of tax revenues that but for the inducements to be offered by the authority to approved companies would not exist.
  3. The purpose of this subchapter is to assist the Commonwealth in moving to the forefront of national efforts to achieve energy independence by reducing the Commonwealth’s reliance on imported energy resources, and to become a national leader in emerging industries which use substantial amounts of energy. The provisions of this subchapter seek to accomplish this purpose by providing incentives for companies that, in a carbon capture ready manner, construct, retrofit, or upgrade facilities for the purpose of:
    1. Increasing the production and sale of alternative transportation fuels;
    2. Increasing the production and sale of synthetic natural gas, chemicals, chemical feedstocks, or liquid fuels, from coal, biomass resources, or waste coal through a gasification process;
    3. Increasing the production and sale of energy-efficient alternative fuels;
    4. Generating electricity for sale through alternative methods such as solar power, wind power, biomass resources, landfill methane gas, hydropower, or other similar renewable resources; or
    5. Increasing the usage of electricity in areas which have an abundant supply due to the loss of manufacturing businesses across the state.
  4. To qualify for the incentives provided in this subchapter, the following requirements shall be met:
    1. For an alternative fuel facility or gasification facility that uses oil shale, tar sands, or coal as the primary feedstock, the minimum capital investment shall be one hundred million dollars ($100,000,000);
    2. For an alternative fuel facility or gasification facility that uses biomass resources as the primary feedstock, the minimum capital investment shall be twenty-five million dollars ($25,000,000);
    3. For an energy-efficient alternative fuel facility, the minimum capital investment shall be twenty-five million dollars ($25,000,000);
    4. For an alternative fuel facility located in Kentucky that is newly constructed on or after August 1, 2010, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 1, 2010, and that, after the new construction, retrofit, or upgrade, primarily produces for sale alternative transportation fuels using natural gas or natural gas liquids as the primary feedstock, the minimum capital investment shall be one million dollars ($1,000,000); provided that the authority may approve a maximum of five (5) projects that meet the requirements of this paragraph;
    5. For a renewable energy facility, the minimum capital investment shall be one million dollars ($1,000,000);
    6. For a carbon dioxide transmission pipeline, the minimum capital investment shall be fifty million dollars ($50,000,000); and
    7. For a cryptocurrency facility, the minimum capital investment shall be one million dollars ($1,000,000).
  5. The incentives under the Incentives for Energy-related Business Act are as follows:
    1. An advance disbursement of post-construction incentives for which an approved company has been approved, the maximum amount of which is based upon the estimated labor component of the total capital investment of the eligible project, and the utilization of Kentucky residents during the construction period as set forth in KRS 154.27-090 ;
    2. Sales and use tax incentives of up to one hundred percent (100%) of the taxes paid on purchases of tangible personal property made to construct, retrofit, or upgrade an eligible project, including commercial cryptocurrency mining equipment at a facility, as set forth in KRS 139.517 and 154.27-070 ;
    3. Up to eighty percent (80%) of the severance taxes paid on the purchase or severance of:
      1. Coal that is subject to the tax imposed under KRS 143.020 and that is specifically used by an alternative fuel facility, energy-efficient alternative fuel facility, or a gasification facility as feedstock for an eligible project, as set forth in KRS 143.024 and 154.27-060 ; or
      2. Natural gas or natural gas liquids that are subject to the tax imposed under KRS 143A.020 and that are specifically used in an alternative fuel facility described in subsection (4)(d) of this section as feedstock for an eligible project, as set forth in KRS 143A.025 and 154.27-060 ;
    4. Up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.040 or 141.020 , and the limited liability entity tax imposed under KRS 141.040 1 on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the eligible project, as set forth in KRS 141.421 and 154.27-080 ; and
    5. Authorization for the approved company to impose a wage assessment of up to four percent (4%) of the gross wages of each employee subject to the Kentucky income tax:
      1. Whose job was created as a result of the eligible project;
      2. Who is employed by the approved company to work at the facility; and
      3. Who is on the payroll of the approved company or an affiliate of the approved company; as set forth in KRS 154.27-080 .
  6. The maximum recovery from all incentives approved under this subchapter for an eligible project shall not exceed fifty percent (50%) of the capital investment in the eligible project.
  7. The incentives available to an approved company shall be negotiated with and approved by the authority.
  8. If a newly constructed facility that qualifies for incentives under this subchapter is later upgraded or retrofitted in a manner that would qualify for incentives under this subchapter, the retrofit or upgrade shall be a separate eligible project, and the minimum investment requirements and carbon capture readiness requirements, if required, shall be met for the retrofit or upgrade to qualify for incentives under this subchapter.
  9. The General Assembly finds that the authorities granted by this subchapter are proper governmental and public purposes for which public moneys may be expended.

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 2, effective August 30, 2007; 2009 (1st Ex. Sess.), ch. 1, § 101, effective June 26, 2009; 2010, ch. 60, § 2, effective July 15, 2010; 2010, ch. 139, § 3, effective July 15, 2010; 2011, ch. 82, § 3, effective June 8, 2011; 2018 ch. 207, § 149, effective July 14, 2018; 2021 ch. 141, § 2, effective July 1, 2021.

154.27-030. Application for incentives — Review — Approval — Approval of projects involving new, retrofitted, or upgraded alternative fuel facilities. [Effective until July 1, 2021]

  1. A company with an eligible project may submit an application for incentives to the authority prior to making any capital investment it will seek to recover.
  2. The application shall include:
    1. The name of the applicant and identification of any affiliates of the applicant;
    2. The type of eligible project;
    3. A description of the location;
    4. A full description of the eligible project scope, including but not limited to:
      1. A list and the status of permits, certificates, or approvals required by the federal government, the Commonwealth, or any jurisdiction within the Commonwealth;
      2. A description of the carbon capture readiness of the facility, if the proposed eligible project is an alternative fuel facility or a gasification facility;
      3. Any feasibility studies, including supporting documents;
      4. Anticipated sources of eligible project funding;
      5. The total anticipated capital investment and the time period over which the capital investment will occur;
      6. The proposed feedstock and the estimated volume of feedstock use per year;
      7. A description of the proposed products to be produced by the facility and the process that will be used to produce the products;
      8. The planned capacity of the facility after construction, retrofit, or upgrade;
      9. The estimated output of the facility upon completion; and
      10. A plan for and description of how the company will employ Kentucky residents at the facility and how the company will ensure, to the extent possible, that workers employed during construction, retrofit, or upgrade of the facility are Kentucky residents. The plan shall include projected numbers;
    5. Identification of the specific incentives sought;
    6. Payment of any applicable application fees required by the authority to offset reasonable costs of reviewing and processing the application; and
    7. Other information as required by the authority.
  3. The authority shall forward the application to the Department of Revenue and the Office of Energy Policy for review and comment with a date by which comments shall be provided back to the authority. The authority may forward the application to the Center for Applied Energy Research for review and comment as well.
    1. The authority shall review the application and shall verify that: (4) (a) The authority shall review the application and shall verify that:
      1. The applicant has met all of the statutory and regulatory requirements established by this subchapter and regulations promulgated thereunder;
      2. The applicant has secured or is in the process of securing all necessary permits, certificates, or approvals required by the federal government, the Commonwealth, or any jurisdiction within the Commonwealth;
      3. The proposed facility is carbon capture ready, if the proposed facility is an alternative fuel facility or gasification facility;
      4. The company has a plan that includes a projected number of Kentucky residents that will be employed during the construction, retrofit, or upgrade of the facility and at the facility upon completion; and
      5. Any other requirements established by the authority.
    2. The Department of Revenue and the Office of Energy Policy shall review the application and shall verify that the company seeking approval and all affiliate companies are in good standing with the department.
    3. The authority may engage the services of outside consultants to assist in the review of the application. Costs associated with the engagement of outside consultants shall be borne by the applicant.
    1. Upon the earlier of: (5) (a) Upon the earlier of:
      1. The receipt of comments and recommendations from the Office of Energy Policy, the Department of Revenue, and the Center for Applied Energy Research, if applicable; or
      2. The expiration of the time period established by the authority for receiving comments pursuant to subsection (3) of this section; the authority may, through the adoption of a resolution, preliminarily approve an applicant for incentives under this subchapter.
    2. Preliminary approval shall be based upon representations of the applicant in the application and attachments as well as other information submitted with the application. The authority shall make a finding that, based upon the applicant’s representations, the project appears to be eligible for incentives pursuant to this subchapter.
    3. Prior to final approval:
      1. The applicant shall:
        1. Provide all supportive data requested by the authority;
        2. Secure all required permits or take appropriate steps to do so; and
        3. Cooperate with the authority to obtain opinions or recommendations from any outside consultants; and
      2. The authority shall, in consultation with the Office of Energy Policy or any other entity, verify the representations of the applicant.
      1. A preliminarily approved company seeking an advance disbursement employment incentive under KRS 154.27-090 shall, prior to receiving final approval from the authority, provide to the authority a labor market analysis prepared by a public postsecondary education institution in the Commonwealth with knowledge of the labor market in the region in which the eligible project will be located. (d) 1. A preliminarily approved company seeking an advance disbursement employment incentive under KRS 154.27-090 shall, prior to receiving final approval from the authority, provide to the authority a labor market analysis prepared by a public postsecondary education institution in the Commonwealth with knowledge of the labor market in the region in which the eligible project will be located.
      2. The labor market analysis shall evaluate the construction market in the region where the proposed project is to be located and the estimated labor component of the proposed project. The public postsecondary education institution may consult with the Center for Applied Energy Research or the Office of Energy Policy in determining the types of laborers required for the construction, retrofit, or upgrade of the eligible facility.
      3. The labor market analysis shall include an estimate of the percentage of the estimated labor component that constitutes wages to be paid to Kentucky residents.
    4. Based upon all of the information available, the authority may, through adoption of a resolution, give its final approval and authorize the execution of a tax incentive agreement to be negotiated pursuant to KRS 154.27-040 .
  4. The authority may request any materials and make any inquiries concerning an application that the authority deems necessary.
  5. The actual capital investment that may be recovered and percentages of each incentive that an approved company may receive shall be negotiated between the approved company and the authority and shall not exceed the limitations established by KRS 154.27-020 .
  6. The General Assembly recognizes that the incentives offered under this subchapter include the possibility of the release of incentives to approved companies prior to construction completion, and that the release of these incentives may present more risk for the Commonwealth. The authority is directed to consider the possible increased risk to the Commonwealth when negotiating tax incentive agreements that include incentives prior to construction completion, and to incorporate repayment or similar remedy provisions in the tax incentive agreement to the extent the authority determines such provisions are necessary to protect the investment made by the Commonwealth if the approved company fails to comply with the terms of the tax incentive agreement.
  7. The authority and the approved company shall enter into a tax incentive agreement in accordance with KRS 154.27-040 .
  8. The authority, with input from the Office of Energy Policy and the Department of Revenue, shall establish additional standards and requirements for the application process through the promulgation of administrative regulations in accordance with KRS Chapter 13A. The standards shall include but not be limited to the creditworthiness of eligible companies and the likelihood of economic success of the economic development project.
  9. Notwithstanding any other provision of this subchapter, the authority may approve a maximum of five (5) projects under this subchapter that involve an alternative fuel facility located in Kentucky that:
    1. Is newly constructed on or after August 1, 2010, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 1, 2010;
    2. After the new construction, retrofit, or upgrade, primarily produces for sale alternative transportation fuels using natural gas or natural gas liquids as the primary feedstock; and
    3. Has a minimum capital investment of one million dollars ($1,000,000).

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 3, effective August 30, 2007; 2010, ch. 24, § 200, effective July 15, 2010; 2010, ch. 139, § 7, effective July 15, 2010; 2018 ch. 207, § 149, effective April 14, 2018; 2018 ch. 29, § 55, effective July 14, 2018.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

Legislative Research Commission Notes.

(7/14/2018). 2018, Ky. Acts ch. 171, sec. 140 directed that this statute be repealed. However, 2018 Ky. Acts ch. 207, sec. 149 subsequently directed that the repeal of this statute in 2018 Ky. Acts ch. 171 itself be repealed. Therefore, no repeal was given effect.

(7/15/2010). This section was amended by 2010 Ky. Acts chs. 24 and 139, which do not appear to be in conflict and have been codified together.

154.27-030. Application for incentives — Review — Approval — Approval of projects involving new, retrofitted, or upgraded alternative fuel facilities. [Effective July 1, 2021]

  1. A company with an eligible project may submit an application for incentives to the authority prior to making any capital investment it will seek to recover.
  2. The application shall include:
    1. The name of the applicant and identification of any affiliates of the applicant;
    2. The type of eligible project;
    3. A description of the location;
    4. A full description of the eligible project scope, including but not limited to:
      1. A list and the status of permits, certificates, or approvals required by the federal government, the Commonwealth, or any jurisdiction within the Commonwealth;
      2. A description of the carbon capture readiness of the facility, if the proposed eligible project is an alternative fuel facility or a gasification facility;
      3. Any feasibility studies, including supporting documents;
      4. Anticipated sources of eligible project funding;
      5. The total anticipated capital investment and the time period over which the capital investment will occur;
      6. The proposed feedstock and the estimated volume of feedstock use per year;
      7. A description of the proposed products or services to be produced by the facility and the process that will be used to produce the products;
      8. The planned capacity of the facility after construction, retrofit, or upgrade;
      9. The estimated output of the facility upon completion; and
      10. A plan for and description of how the company will employ Kentucky residents at the facility and how the company will ensure, to the extent possible, that workers employed during construction, retrofit, or upgrade of the facility are Kentucky residents. The plan shall include projected numbers;
    5. Identification of the specific incentives sought;
    6. Payment of any applicable application fees required by the authority to offset reasonable costs of reviewing and processing the application; and
    7. Other information as required by the authority.
  3. The authority shall forward the application to the Department of Revenue and the Office of Energy Policy, if applicable, for review and comment with a date by which comments shall be provided back to the authority. The authority may forward the application to the Center for Applied Energy Research for review and comment as well.
    1. The authority shall review the application and shall verify that: (4) (a) The authority shall review the application and shall verify that:
      1. The applicant has met all of the statutory and regulatory requirements established by this subchapter and regulations promulgated thereunder;
      2. The applicant has secured or is in the process of securing all necessary permits, certificates, or approvals required by the federal government, the Commonwealth, or any jurisdiction within the Commonwealth;
      3. The proposed facility is carbon capture ready, if the proposed facility is an alternative fuel facility or gasification facility;
      4. The company has a plan that includes a projected number of Kentucky residents that will be employed during the construction, retrofit, or upgrade of the facility and at the facility upon completion; and
      5. Any other requirements established by the authority.
    2. The Department of Revenue and the Office of Energy Policy, if applicable, shall review the application and shall verify that the company seeking approval and all affiliate companies are in good standing with the department.
    3. The authority may engage the services of outside consultants to assist in the review of the application. Costs associated with the engagement of outside consultants shall be borne by the applicant.
    1. Upon the earlier of: (5) (a) Upon the earlier of:
      1. The receipt of comments and recommendations from the Office of Energy Policy, the Department of Revenue, and the Center for Applied Energy Research, if applicable; or
      2. The expiration of the time period established by the authority for receiving comments pursuant to subsection (3) of this section; the authority may, through the adoption of a resolution, preliminarily approve an applicant for incentives under this subchapter.
    2. Preliminary approval shall be based upon representations of the applicant in the application and attachments as well as other information submitted with the application. The authority shall make a finding that, based upon the applicant’s representations, the project appears to be eligible for incentives pursuant to this subchapter.
    3. Prior to final approval:
      1. The applicant shall:
        1. Provide all supportive data requested by the authority;
        2. Secure all required permits or take appropriate steps to do so; and
        3. Cooperate with the authority to obtain opinions or recommendations from any outside consultants; and
      2. The authority shall, in consultation with the Office of Energy Policy or any other entity, verify the representations of the applicant.
      1. A preliminarily approved company seeking an advance disbursement employment incentive under KRS 154.27-090 shall, prior to receiving final approval from the authority, provide to the authority a labor market analysis prepared by a public postsecondary education institution in the Commonwealth with knowledge of the labor market in the region in which the eligible project will be located. (d) 1. A preliminarily approved company seeking an advance disbursement employment incentive under KRS 154.27-090 shall, prior to receiving final approval from the authority, provide to the authority a labor market analysis prepared by a public postsecondary education institution in the Commonwealth with knowledge of the labor market in the region in which the eligible project will be located.
      2. The labor market analysis shall evaluate the construction market in the region where the proposed project is to be located and the estimated labor component of the proposed project. The public postsecondary education institution may consult with the Center for Applied Energy Research or the Office of Energy Policy in determining the types of laborers required for the construction, retrofit, or upgrade of the eligible facility.
      3. The labor market analysis shall include an estimate of the percentage of the estimated labor component that constitutes wages to be paid to Kentucky residents.
    4. Based upon all of the information available, the authority may, through adoption of a resolution, give its final approval and authorize the execution of a tax incentive agreement to be negotiated pursuant to KRS 154.27-040 .
  4. The authority may request any materials and make any inquiries concerning an application that the authority deems necessary.
  5. The actual capital investment that may be recovered and percentages of each incentive that an approved company may receive shall be negotiated between the approved company and the authority and shall not exceed the limitations established by KRS 154.27-020 .
  6. The General Assembly recognizes that the incentives offered under this subchapter include the possibility of the release of incentives to approved companies prior to construction completion, and that the release of these incentives may present more risk for the Commonwealth. The authority is directed to consider the possible increased risk to the Commonwealth when negotiating tax incentive agreements that include incentives prior to construction completion, and to incorporate repayment or similar remedy provisions in the tax incentive agreement to the extent the authority determines such provisions are necessary to protect the investment made by the Commonwealth if the approved company fails to comply with the terms of the tax incentive agreement.
  7. The authority and the approved company shall enter into a tax incentive agreement in accordance with KRS 154.27-040 .
  8. The authority, with input from the Office of Energy Policy, if applicable, and the Department of Revenue, shall establish additional standards and requirements for the application process through the promulgation of administrative regulations in accordance with KRS Chapter 13A. The standards shall include but not be limited to the creditworthiness of eligible companies and the likelihood of economic success of the economic development project.
  9. Notwithstanding any other provision of this subchapter, the authority may approve a maximum of five (5) projects under this subchapter that involve an alternative fuel facility located in Kentucky that:
    1. Is newly constructed on or after August 1, 2010, or an existing facility located in Kentucky that is retrofitted or upgraded on or after August 1, 2010;
    2. After the new construction, retrofit, or upgrade, primarily produces for sale alternative transportation fuels using natural gas or natural gas liquids as the primary feedstock; and
    3. Has a minimum capital investment of one million dollars ($1,000,000).

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 3, effective August 30, 2007; 2010, ch. 24, § 200, effective July 15, 2010; 2010, ch. 139, § 7, effective July 15, 2010; 2018 ch. 207, § 149, effective April 14, 2018; 2018 ch. 29, § 55, effective July 14, 2018; 2021 ch. 141, § 3, effective July 1, 2021.

154.27-040. Tax incentive agreement — Required provisions.

The terms and conditions of the tax incentive agreement shall be negotiated between the authority and the approved company. The tax incentive agreement may include one (1) or more of the incentives available under this subchapter or any combination of the incentives as negotiated between the authority and the approved company. The tax incentive agreement shall include but not be limited to the following provisions:

  1. The duties and responsibilities of the parties;
  2. The specific identification of incentives included in the tax incentive agreement, including the permissible percentage recovery under each included incentive;
  3. A detailed description of the eligible project, including an estimate of the capital investment;
  4. If the eligible project is an alternative fuel facility or a gasification facility, a requirement that the facility be carbon capture ready;
  5. The minimum capital investment required and the maximum capital investment that may be recovered;
  6. The time within which the minimum capital investment shall be made;
  7. The activation date and the termination date. The agreement shall commence on the activation date and shall terminate upon the earlier of full receipt of the maximum amount of incentives by the approved company or twenty-five (25) years from the activation date;
  8. A target percentage of the workforce that is Kentucky residents during the construction, retrofit, or upgrade of the facility, and at the facility upon completion of construction;
  9. If the wage assessment permitted by KRS 154.27-080 is included, the percentage rate at which the assessment shall be imposed;
  10. If the advance disbursement employment incentive permitted by KRS 154.27-090 is included:
    1. The estimated labor component and the estimated Kentucky resident factor as determined under KRS 154.27-090 ;
    2. A schedule for the disbursement of funds during the construction period;
    3. A provision that requires a reduction or adjustment in the receipt of post-construction incentives for which the approved company is eligible under the tax incentive agreement until the advance disbursement has been repaid by the approved company;
    4. A provision addressing an alternate payment method if the incentives are not sufficient to repay the advance disbursement; and
    5. A repayment schedule that includes the amount of reduction, the incentives the reduction shall apply to, the amount of interest due, the time period over which the advance disbursement amount shall be recouped, and the amount that shall be recouped in each year. To the extent possible, the repayment schedule shall include uniform incremental payments;
  11. That the approval of the company is not a guarantee of incentives and that actual receipt of the incentives shall be contingent on the approved company filing the required requests for incentives and meeting the requirements established by the tax incentive agreement and by KRS 139.517 , 141.421 , 143.024 , 154.27-060 , 154.27-070 , 154.27-080 , and 154.27-090 that apply to the incentives included;
  12. That the approved company shall provide the authority with documentation of capital expenditures in a manner acceptable to the authority;
  13. Negotiated terms relating to repayment or similar remedies for incentives received prior to the completion of construction if the approved company fails to comply with the terms of the tax incentive agreement;
  14. That, if the authority determines that the approved company has failed to comply with any of its obligations under the tax incentive agreement:
    1. The authority shall have the right to suspend the incentives available to the approved company;
    2. Both the authority and the department shall have the right to pursue any remedy provided under the tax incentive agreement;
    3. The authority may terminate the tax incentive agreement; and
    4. Both the authority and the department may pursue any other remedy at law to which it may be entitled;
  15. A requirement that the authority monitor the tax incentive agreement;
  16. A requirement that the approved company provide to the authority the information necessary to monitor the tax incentive agreement and authorization for the authority to share that information with the Department of Revenue, the Department for Energy Development and Independence, or any other entity the authority determines is necessary for the purposes of monitoring and enforcing the terms of the tax incentive agreement; and
  17. Any other provisions not inconsistent with this subchapter and determined to be necessary or appropriate by the parties to the tax incentive agreement.

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 4, effective August 30, 2007; 2010, ch. 24, § 201, effective July 15, 2010; 2018 ch. 207, § 149, effective April 14, 2018; 2018 ch. 29, § 56, effective July 14, 2018.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

Legislative Research Commission Notes.

(7/14/2018). 2018, Ky. Acts ch. 171, sec. 140 directed that this statute be repealed. However, 2018 Ky. Acts ch. 207, sec. 149 subsequently directed that the repeal of this statute in 2018 Ky. Acts ch. 171 itself be repealed. Therefore, no repeal was given effect.

(8/30/2007). A manifest clerical or typographical error in subsection (10) of this section has been corrected by the Reviser of Statutes during codification pursuant to the authority of KRS 7.136 .

154.27-050. Release of sales tax incentives under tax incentive agreement — Monitoring, tracking, and reporting requirements.

  1. The department may release to an approved company any sales tax incentives under KRS 139.517 and 154.27-070 after review of the request for incentives required by KRS 139.517 and determination of the amount due regardless of whether the minimum capital investment has been made as required by the tax incentive agreement.
  2. The authority shall monitor all tax incentive agreements. The authority may seek assistance from the Office of Energy Policy, the Department of Revenue, the Center for Applied Energy Research, or other entities or individuals in performing its monitoring functions.
  3. The department shall track the amount of revenues released and incentives received for each eligible project under each tax incentive agreement and shall provide the authority the information upon request.
  4. By November 1 of each year, the authority and the department shall jointly prepare an annual report and post it to the Cabinet for Economic Development Web site as required in KRS 154.12-2035 . The report shall include a list of all companies with which tax incentive agreements have been entered into and a summary of the terms of each agreement, including the type of facility approved, product to be produced, estimated output upon completion, required minimum capital investment and maximum recovery, incentives approved by type of tax and amount, activation date, and termination date.

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 5, effective August 30, 2007; 2010, ch. 24, § 202, effective July 15, 2010; 2014, ch. 134, § 8, effective July 15, 2014; 2018 ch. 207, § 149, effective April 14, 2018; 2018 ch. 199, § 25, effective July 14, 2018; 2018 ch. 29, § 57, effective July 14, 2018.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

Legislative Research Commission Notes.

(7/14/2018). This statute was amended by 2018 Ky. Acts chs. 29 and 199, which do not appear to be in conflict and have been codified together.

(7/14/2018). 2018, Ky. Acts ch. 171, sec. 140 directed that this statute be repealed. However, 2018 Ky. Acts ch. 207, sec. 149 subsequently directed that the repeal of this statute in 2018 Ky. Acts ch. 171 itself be repealed. Therefore, no repeal was given effect.

154.27-060. Severance tax incentives.

    1. Notwithstanding any other provision of KRS 134.580 or KRS Chapter 143, an approved company that purchases or severs coal that: (1) (a) Notwithstanding any other provision of KRS 134.580 or KRS Chapter 143, an approved company that purchases or severs coal that:
      1. Is subject to the tax imposed under KRS 143.020 ; and
      2. Is used by the approved company exclusively as feedstock for an alternative fuel facility, energy-efficient alternative fuel facility, or a gasification facility; may be eligible for an incentive in an amount up to eighty percent (80%) of the taxes paid pursuant to KRS 143.020 on coal purchased or severed by the approved company that is above the base amount.
    2. Notwithstanding any other provision of KRS 134.580 or KRS Chapter 143A, an approved company that purchases or severs natural gas or natural gas liquids on or after August 1, 2010, that:
      1. Is subject to the tax imposed under KRS 143A.020 ; and
      2. Is used by the approved company exclusively as feedstock for an alternative fuel facility described in KRS 154.27-020 (4)(d); may be eligible for an incentive in an amount up to eighty percent (80%) of the taxes paid pursuant to KRS 143A.020 on natural gas or natural gas liquids purchased or severed by the approved company that is above the base amount.
  1. An approved company that has purchased or severed coal subject to the tax imposed under KRS 143.020 or purchased or severed natural gas or natural gas liquids subject to the tax imposed under KRS 143A.020 prior to the execution of a tax incentive agreement shall not create an affiliate, subsidiary, corporation, or other related entity that would result in a base amount of zero (0).
  2. The incentive may be requested beginning in the first calendar year after the construction of a new facility or the upgrade or retrofit of an existing facility is completed.
  3. Upon completion of the construction of a new alternative fuel facility, energy-efficient alternative fuel facility, or gasification facility or the retrofit or upgrade of an existing facility, an approved company shall notify the authority and the department.
  4. The approved company may obtain the incentive on an annual basis by filing a request for the incentive with the department as provided in KRS 143.024 .
  5. The department shall notify the authority of the incentives requested and the incentives distributed, upon request of the authority.

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 6, effective August 30, 2007; 2010, ch. 60, § 3, effective July 15, 2010; 2010, ch. 139, § 4, effective July 15, 2010; 2018 ch. 207, § 149, effective July 14, 2018.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

Legislative Research Commission Note.

(7/15/2010). This section was amended by 2010 Ky. Acts chs. 60 and 139, which do not appear to be in conflict and have been codified together.

154.27-070. Sales and use tax incentives.

  1. Notwithstanding KRS 134.580(3) and 139.770 , on or after January 1, 2008, an approved company is eligible for an incentive in an amount up to one hundred percent (100%) of the Kentucky sales and use tax paid, reduced by the vendor compensation provided under KRS 139.570 , on the purchase of tangible personal property, including but not limited to materials, machinery, and equipment used to construct, retrofit, or upgrade an eligible project.
  2. The incentive shall not include tangible personal property purchased before the activation date or purchases of operating supplies, or repair, replacement, or spare parts as defined in KRS 139.010 .
  3. Upon the activation date, an approved company may be eligible for the incentive offered under this section. The approved company shall file a request for the incentive payment with the department as provided in KRS 139.517 .
  4. The incentive provided in this section shall expire upon the completion of the construction, retrofit, or upgrade of the eligible project, or five (5) years from the activation date, whichever is earlier.

History. Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 7, effective August 30, 2007; 2008, ch. 95, § 19, effective August 1, 2008; 2018 ch. 207, § 149, effective July 14, 2018.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

154.27-080. Income and limited liability entity tax incentives — Assessment on employees’ wages.

An approved company may be eligible for income tax-related incentives as follows:

  1. A credit of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.040 or 141.020 , and the limited liability entity tax imposed under KRS 141.040 1 that would otherwise be owed by the approved company to the Commonwealth for the approved company’s tax year, on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the eligible project, with the ordering of credits as provided in KRS 141.0205 .
    1. The credit allowed the approved company shall be applied against both the income tax imposed by KRS 141.020 or 141.040, and the limited liability entity tax imposed by KRS 141.0401 , with credit ordering as provided in KRS 141.0205 , for the tax year for which the tax return of the approved company is filed.
    2. The approved company shall not be required to pay estimated tax payments under KRS 141.044 on the Kentucky taxable income, Kentucky gross receipts, or Kentucky gross profits generated by or arising from the eligible project.
    3. The credit provided by this subsection shall be determined as provided in KRS 141.421 .
  2. The approved company or, with the authority’s consent, an affiliate of the approved company may require that each employee subject to the state income tax imposed by KRS 141.020 , as a condition of employment, agree to pay an assessment of up to four percent (4%) of his or her gross wages. The assessment shall be uniform against all employees against whom it is assessed and shall be imposed at a percentage rate that is negotiated as part of the tax incentive agreement.
      1. The assessment may be imposed against each employee: (a) 1. The assessment may be imposed against each employee:
        1. Whose job was created as a result of the eligible project;
        2. Who is employed by the approved company to work at the facility; and
        3. Who is on the payroll of the approved company or, with the authority’s consent, is on the payroll of an affiliate of the approved company.
      2. Construction workers, employees of the approved company directly employed in the construction, retrofit, or upgrade of the eligible facility, contract workers, and leased workers shall not be considered employees of the approved company for purposes of the assessment permitted by this subsection.
    1. Each employee so assessed shall be entitled to credits against Kentucky income tax equal to the assessment withheld from wages during the calendar year as provided by KRS 141.310 and 141.421 .
    2. An approved company that elects to impose the assessment as a condition of employment is authorized to deduct the assessment from each paycheck of each employee.
    3. The approved company shall provide to the authority the information necessary to monitor the tax incentive agreement and the authorization for the authority to share the information with the department as necessary for purposes of enforcing the terms of the tax incentive agreement.
    4. Any assessment imposed pursuant to this subsection shall permanently expire upon termination or expiration of the tax incentive agreement.

History. Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 8, effective August 30, 2007; 2018 ch. 207, § 149, effective July 14, 2018; 2019 ch. 151, § 69, effective June 27, 2019.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

Legislative Research Commission Notes.

(6/27/2019). Section 85 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 69 of that Act apply retroactively to April 14, 2018.

154.27-090. Advance disbursement of incentives — Computation of maximum disbursement amount — Schedule for disbursement — Repayment.

  1. An approved company may be eligible for the advance disbursement of a portion of the post-construction period incentives for which it has been approved. The amount of the advance disbursement shall be based on the employment of Kentucky residents during the construction of the facility, shall be negotiated with the authority as part of the tax incentive agreement, and shall not exceed the limitations established by this section.
  2. The authority shall compute the maximum amount of the advance disbursement employment incentive as follows:
    1. The base amount shall equal the total capital investment specified in the tax incentive agreement multiplied by the labor intensity factor as determined in paragraph (c) of this subsection;
    2. The base amount shall then be multiplied by the Kentucky resident factor as determined in paragraph (d) of this subsection. The resulting amount shall be the maximum advance disbursement employment incentive that the authority may approve;
    3. The labor intensity factor shall be:
      1. Twenty-five percent (25%), if the estimated labor component for the eligible project is greater than thirty percent (30%) of the total capital investment;
      2. Twenty percent (20%), if the estimated labor component for the eligible project is greater than twenty-five percent (25%) but less than or equal to thirty percent (30%) of the total capital investment; or
      3. Fifteen percent (15%), if the estimated labor component for the eligible project is equal to or less than twenty-five percent (25%) of the total capital investment; and
    4. The Kentucky resident factor shall be four percent (4%) multiplied by a fraction, the numerator of which shall be the estimated total gross wages that will be paid to Kentucky residents who are working on the construction, retrofit, or upgrade of the eligible project, and the denominator of which shall be the estimated total gross wages that will be paid to all workers working on the construction, retrofit, or upgrade of the eligible project.
  3. The tax incentive agreement shall include a schedule for the disbursement of the advance disbursement employment incentive during the construction period. In negotiating the disbursement schedule, the authority shall consider the possible increased risk to the Commonwealth associated with the disbursement of funds prior to construction completion.
    1. The approved company shall repay the advance disbursement through a reduction in the post-construction period incentive amounts it would otherwise receive. The amount by which the post-construction period incentive amounts are reduced shall be applied as a credit against the amount owed by the approved company. (4) (a) The approved company shall repay the advance disbursement through a reduction in the post-construction period incentive amounts it would otherwise receive. The amount by which the post-construction period incentive amounts are reduced shall be applied as a credit against the amount owed by the approved company.
    2. The amount of the annual reduction, the incentives the reduction shall apply to, interest due, the time period over which the advance disbursement amount shall be recouped, and alternate payment methods if incentives are not sufficient to repay the advance disbursement shall be negotiated between the authority and the approved company as part of the tax incentive agreement.
    3. The repayment schedule included in the tax incentive agreement shall require uniform incremental payments, to the extent possible, and shall continue until the entire advance disbursement amount has been repaid by the approved company.
    4. The tax incentive agreement shall include a provision addressing an alternate method for payment if incentives are not sufficient to repay the advance disbursement.
    5. The total post-construction incentive payments for which an approved company is eligible shall be tracked by the department. That portion of the incentive amounts identified in the tax incentive agreement as being devoted to the repayment of the advance disbursement amount shall be credited against the balance due from the approved company and shall not be paid to or retained by the approved company.
    6. The department shall forward the amounts credited to the repayment of the advance disbursement amount to the Cabinet for Economic Development, Department of Financial Incentives for deposit in the Energy Projects Economic Development Bond Pool.
    7. During the period for which any portion of the post-construction incentive payments are being credited toward the advance disbursement amount, the approved company shall, at the direction of the authority or the department, file all required requests for incentives, submit all required remittances, make all required tax payments, and provide to the department and the authority any information that would normally be required for the approved company to receive the incentives.
  4. The authority may, for purposes of administering the provisions of this section, solicit information or consultation from one (1) or more of the following sources:
    1. The Office of Energy Policy;
    2. The Center for Applied Energy Research;
    3. The Department for Workforce Investment; or
    4. Any public postsecondary education institution within the Commonwealth.

HISTORY: Enact. Acts 2007 (2nd Ex. Sess.), ch. 1, § 9, effective August 30, 2007; 2010, ch. 24, § 203, effective July 15, 2010; 2018 ch. 29, § 58, effective July 14, 2018; 2018 ch. 207, § 149, effective July 14, 2018.

Legislative Research Commission Notes.

(7/14/2018). This statute was amended by 2018 Ky. Acts chs. 29 and 199, which do not appear to be in conflict and have been codified together.

(8/30/2007). A manifest clerical or typographical error in subsection (4)(b) of this section has been corrected by the Reviser of Statutes during codification pursuant to the authority of KRS 7.136 .

154.27-095. Applications for incentives not accepted after August 1, 2018.

No application for incentives found in KRS 154.27-010 to 154.27-100 shall be accepted by the authority after August 1, 2018. All outstanding projects with preliminary or final approval shall continue to be governed by the provisions of this subchapter.

HISTORY: 2018 ch. 199, § 27, effective July 14, 2018.

154.27-100. Construction of carbon dioxide transmission pipeline — Proceedings for condemnation under Eminent Domain Act — Legislative determination of essential public use.

  1. For the purposes of this section, “carbon dioxide transmission pipeline” has the same meaning as in KRS 154.27-010 .
  2. If a carbon dioxide transmission pipeline company has received a construction certificate from the Kentucky State Board on Electric Generation and Siting under KRS 278.714 and is unable to contract or agree with the owner after a good-faith effort to do so, the company may condemn the lands and material for the use and occupation of the lands that are necessary for:
    1. Constructing, maintaining, utilizing, operating, and gaining access to a carbon dioxide transmission pipeline and all necessary machinery, equipment, pumping stations, appliances, and fixtures for use in connection with a carbon dioxide transmission pipeline; and
    2. Obtaining all necessary rights of ingress and egress to construct, examine, alter, repair, maintain, operate, or remove a carbon dioxide transmission pipeline and all of its component parts.
  3. The proceedings for condemnation shall be as provided in the Eminent Domain Act of Kentucky.
  4. Carbon dioxide transmission pipelines, and the routing, construction, maintenance, and operation of them are, as a matter of legislative determination, declared to be a public use essential to the fulfillment of the purposes of this chapter.

History. Enact. Acts 2011, ch. 82, § 1, effective June 8, 2011; 2018 ch. 207, § 149, effective July 14, 2018.

Compiler's Notes.

Chapter 171 of the 2018 Legislative Session repealed this section, however Chapter 207 of the same session restored the section.

SUBCHAPTER 28. Financing of New Industry Development

154.28-010. Definitions for KRS 154.28-010 to 154.28-100.

As used in KRS 154.28-010 to 154.28-100 , unless the context clearly indicates otherwise:

  1. “Activation date” means a date selected by an approved company in the agreement at any time within the two (2) year period after the date of final approval of the agreement by the authority;
  2. “Affiliate” has the same meaning as in KRS 154.22-010 ;
  3. “Agreement” means the tax incentive agreement entered into, pursuant to KRS 154.28-090 , between the authority and an approved company with respect to an economic development project;
  4. “Agribusiness” means any activity involving the processing of raw agricultural products, including timber, or the providing of value-added functions with regard to raw agricultural products;
  5. “Approved company” means any eligible company, approved by the authority pursuant to KRS 154.28-080 , requiring an economic development project;
  6. “Approved costs” means:
    1. Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the acquisition, construction, rehabilitation, and installation of an economic development project;
    2. The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, rehabilitation, and installation of an economic project which is not paid by the vendor, supplier, deliverymen, contractors, or otherwise else provided;
    3. All costs of architectural and engineering services, including estimates, plans and specifications, preliminary investigations, and supervision of construction, rehabilitation, and installation, as well as for the performance of all the duties required by or consequent upon the acquisition, construction, rehabilitation, and installation of an economic development project;
    4. All costs which shall be required to be paid under the terms of any contract for the acquisition, construction, rehabilitation, and installation of an economic development project;
    5. All costs which shall be required for the installation of utilities such as water, sewer, sewer treatment, gas, electricity, communications, railroads, and similar facilities, and including offsite construction of the facilities paid for by the approved company; and
    6. All other costs comparable to those described above;
  7. “Assessment” means the job development assessment fee authorized by KRS 154.28-010 to 154.28-100 ;
  8. “Authority” means the Kentucky Economic Development Finance Authority created by KRS 154.20-010 ;
  9. “Average hourly wage” means the wage and employment data published by the Department of Workforce Investment in the Education and Workforce Development Cabinet collectively translated into wages per hour based on a two thousand eighty (2,080) hour work year for the following sectors:
    1. Manufacturing;
    2. Transportation, communications, and public utilities;
    3. Wholesale and retail trade;
    4. Finance, insurance, and real estate; and
    5. Services;
  10. “Commonwealth” means the Commonwealth of Kentucky;
    1. “Economic development project” or “project” means and includes: (11) (a) “Economic development project” or “project” means and includes:
      1. The acquisition of ownership in any real estate by the approved manufacturing or agribusiness company or its affiliate;
      2. The present ownership of real estate by the approved manufacturing or agribusiness company or its affiliate;
      3. The acquisition or present ownership of improvements or facilities, as described in paragraph (b) of this subsection, on land which is possessed or is to be possessed by the approved company pursuant to a ground lease having a term of sixty (60) years or more; and
      4. The legal possession of facilities by an approved company or its affiliate pursuant to a lease having a term equal to or greater than ten (10) years with a third-party entity, negotiated at arm’s length, if the facility will be used by the approved company to conduct the approved activity for which the inducement has been granted. An economic development project qualifying under this subparagraph shall only be eligible for credits against equipment and costs related to installation of equipment and for purposes of the tax credits provided under the provisions of KRS 154.28-010 to 154.28-090 only to the extent of twenty thousand dollars ($20,000) per job created by and maintained at the economic development project. Notwithstanding KRS 154.28-090 , an economic development project qualifying under this subparagraph shall be eligible only for the aggregate assessments pursuant to KRS 154.28-110 withheld by the approved company each year and shall not be eligible for credit against Kentucky income tax and limited liability entity tax.
    2. For purposes of paragraph (a)1. and 2. of this subsection, ownership of real estate shall only include fee ownership of real estate and possession of real estate pursuant to a capital lease as determined in accordance with Statement of Financial Accounting Standards No. 13, Accounting for Leases, issued by the Financial Accounting Standards Board, November 1976. With respect to paragraph (a)1., 2., and 3. of this subsection, the construction, installation, equipping, and rehabilitating of improvements, including fixtures and equipment directly involved in the manufacturing process, and facilities necessary or desirable for improvement of the real estate shall include: surveys, site tests, and inspections; subsurface site work and excavation; removal of structures, roadways, cemeteries, and other site obstructions; filling, grading, provision of drainage, and storm water retention; installation of utilities such as water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; offsite construction of utility extensions to the boundaries of the real estate; and the acquisition, installation, equipping, and rehabilitation of manufacturing facilities or agribusiness operations on the real estate for the use of the approved company or its affiliates for manufacturing or agribusiness operational purposes. Pursuant to paragraph (a)3. and 4. of this subsection and this paragraph, an economic development project shall not include lease payments made pursuant to a ground lease for purposes of the tax credits provided under the provisions of KRS 154.28-010 to 154.28-100 . An economic development project shall include the equipping of a facility with equipment but, for purposes of the tax credits provided under the provisions of KRS 154.28-010 to 154.28-090, only to the extent of twenty thousand dollars ($20,000) per job created by and maintained at the economic development project;
  11. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, trust, or any other entity engaged in manufacturing or agribusiness operations;
  12. “Employee benefits” means nonmandated costs paid by an eligible company for its full-time employees for health insurance, life insurance, dental insurance, vision insurance, defined benefits, 401(k), or similar plans;
  13. “Full-time employee” means a person employed by an approved company for a minimum of thirty-five (35) hours per week and subject to the state income tax imposed by KRS 141.020 ;
  14. “Inducement” means the assessment or the Kentucky income tax credit as set forth in KRS 154.28-090 ;
  15. “Manufacturing” means any activity involving the manufacturing, processing, assembling, or production of any property, including the processing resulting in a change in the conditions of the property, and any activity functionally related to it, together with storage, warehousing, distribution, and related office facilities; however, “manufacturing” shall not include mining, coal or mineral processing, or extraction of minerals;
  16. “State agency” shall have the meaning assigned to the term in KRS 56.440(8);
  17. “Kentucky gross profits” means “Kentucky gross profits” as defined in KRS 141.0401 ; and
  18. “Kentucky gross receipts” means “Kentucky gross receipts” as defined in KRS 141.0401 .

History. Enact. Acts 1992, ch. 363, § 1, effective July 14, 1992; 1994, ch. 390, § 8, effective July 15, 1994; 1994, ch. 450, § 27, effective July 15, 1994; 1994, ch. 499, § 26, effective July 15, 1994; 1996, ch. 194, § 51, effective July 15, 1996; 1996, ch. 337, § 1, effective July 15, 1996; 2000, ch. 321, § 5, effective July 14, 2000; 2002, ch. 338, § 37, effective July 15, 2002; 2004, ch. 105, § 16, effective July 13, 2004; 2006, ch. 149, § 220, effective July 12, 2006; 2006, ch. 211, § 75, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 59, effective June 28, 2006; 2007, ch. 75, § 2, effective June 26, 2007; 2009, ch. 11, § 43, effective June 25, 2009; 2019 ch. 146, § 24, effective June 27, 2019.

Legislative Research Commission Note.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

Research References and Practice Aids

Kentucky Law Journal.

Spencer, Evaluating Kentucky’s Investment Tax Credits in Light of Cuno v. DaimlerChrysler, Inc. , 94 Ky. L.J. 161 (2005/2006).

154.28-015. Legislative findings.

The General Assembly hereby finds and declares that the general welfare and material well-being of the citizens of the Commonwealth depends in large measure upon the development and growth of industry in the Commonwealth, and that it is in the best interest of the Commonwealth to induce the location of agribusiness, electric generation, or manufacturing facilities within the Commonwealth in order to advance the public purposes of relieving unemployment by creating new jobs that would not exist if not for the inducements to be offered by the authority to approved companies, and by creating sources of tax revenues for the support of the public services provided by the Commonwealth, and that the authority prescribed by KRS 154.28-015 to 154.28-100 , and the purposes to be accomplished under the provisions of KRS 154.28-015 to 154.28-100 , are proper governmental and public purposes for which public moneys may be expended, and that the inducement of the location of agribusiness, electric generation, or manufacturing facilities is of paramount importance, mandating that the provisions of KRS 154.28-015 to 154.28-100 be liberally construed and applied in order to advance the public purposes.

History. Enact. Acts 1992, ch. 363, § 2, effective July 14, 1992; 1994, ch. 390, § 9, effective July 15, 1994; 1996, ch. 194, § 52, effective July 15, 1996; 2000, ch. 321, § 6, effective July 14, 2000.

154.28-020. Kentucky Industrial Development Authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 363, § 3, effective July 14, 1992) was repealed by Acts 1994, ch. 499, § 28, effective July 15, 1994. For present law, see KRS 154.20-010 .

Legislative Research Commission Note.

(7/15/94). Under KRS 446.260 , the repeal of this section in 1994 Ky. Acts ch. 499 prevails over its amendment in 1994 Ky. Acts ch. 450.

154.28-030. Powers of authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 363, § 4, effective July 14, 1992; 1994, ch. 450, § 29, effective July 15, 1994; 1994, ch. 499, § 27, effective July 15, 1994) was repealed by Acts 1996, ch. 194, § 73, effective July 15, 1996.

154.28-040. Staff.

The secretary of the Cabinet for Economic Development shall provide sufficient personnel to serve as staff for the authority in order to permit the authority to adequately discharge its duties and responsibilities prescribed in KRS 154.28-015 to 154.28-090 and 141.400 .

History. Enact. Acts 1992, ch. 363, § 5, effective July 14, 1992.

154.28-050. Personal liability of director or officer.

No director or officer of the authority shall be subject to any personal liability or accountability by reason of his execution of any obligation duly authorized by the authority.

History. Enact. Acts 1992, ch. 363, § 6, effective July 14, 1992.

154.28-060. Funding for authority.

The authority may accept and expend moneys which may be appropriated from time to time by the General Assembly, or moneys which may be received from any source, including income from the authority’s operations, for effectuating its purpose, including, but not limited to, the payment of the expenses of administration and operation.

History. Enact. Acts 1992, ch. 363, § 7, effective July 14, 1992.

154.28-070. Personal interest of director, officer, or employee in contract with authority.

  1. No director, officer, or employee of the authority shall be interested, directly or indirectly, or shall be an officer or employee of or have an ownership interest in any firm or corporation interested, directly or indirectly, in any contract with the authority.
  2. Should a director, officer, or employee of the authority have such an interest or be an officer or employee of or have an ownership interest in any such firm or corporation, then the director, officer, or employee of the authority shall:
    1. Disclose the interest and the office, employment, or ownership in such firm or corporation;
    2. Refrain from participating in discussions relating to any contract of the firm or corporation with the authority; and
    3. Refrain from voting or otherwise taking action on any contract or proposed contract of the authority with the firm or corporation.
  3. If any contract or agreements shall be made in violation of the provisions of this section, it shall be null and void and no action shall be maintained against the authority.

History. Enact. Acts 1992, ch. 363, § 8, effective July 14, 1992; 1994, ch. 450, § 30, effective July 15, 1994.

154.28-080. Standards for approval of eligible companies and projects — Authorizing resolution.

  1. The authority shall promulgate standards for the determination and approval of eligible companies and their economic development projects in accordance with KRS Chapter 13A.
  2. The standards for approval of eligible companies and economic development projects shall include but not be limited to: the creditworthiness of eligible companies; the number of new jobs to be provided by an economic development project to the residents of the Commonwealth; and the likelihood of the economic success of the economic development project.
  3. The economic development project shall involve a minimum investment of one hundred thousand dollars ($100,000) by the eligible company and shall result in the creation by the eligible company, within two (2) years from the date of the final resolution authorizing the economic development project, of a minimum of fifteen (15) new full-time jobs at the site of the economic development projects for Kentucky residents to be employed by the eligible company and to be held by persons subject to the personal income tax of the Commonwealth. The authority may extend this two (2) year period upon the written application of an eligible company requesting an extension.
    1. Within six (6) months after the activation date, the approved company shall compensate a minimum of ninety percent (90%) of its full-time employees whose jobs were created with base hourly wages equal to either: (4) (a) Within six (6) months after the activation date, the approved company shall compensate a minimum of ninety percent (90%) of its full-time employees whose jobs were created with base hourly wages equal to either:
      1. Seventy-five percent (75%) of the average hourly wage for the Commonwealth; or
      2. Seventy-five percent (75%) of the average hourly wage for the county in which the project is to be undertaken.
    2. If the base hourly wage calculated in paragraph (a)1. or 2. of this subsection is less than one hundred fifty percent (150%) of the federal minimum wage, then the base hourly wage shall be one hundred fifty percent (150%) of the federal minimum wage. However, for projects receiving preliminary approval of the authority prior to July 1, 2008, the base hourly wage shall be one hundred fifty percent (150%) of the federal minimum wage existing on January 1, 2007. In addition to the applicable base hourly wage calculated above, the eligible company shall provide employee benefits equal to at least fifteen percent (15%) of the applicable base hourly wage; however, if the eligible company does not provide employee benefits equal to at least fifteen percent (15%) of the applicable base hourly wage, the eligible company may qualify under this section if it provides the employees hired by the eligible company as a result of the economic development project total hourly compensation equal to or greater than one hundred fifteen percent (115%) of the applicable base hourly wage through increased hourly wages combined with employee benefits.
  4. No economic development project which will result in the replacement of a manufacturing or agribusiness facility existing within the Commonwealth shall be approved by the authority; however, the authority may approve an economic development project that:
    1. Rehabilitates a manufacturing or agribusiness facility:
      1. Which has not been in operation for a period of ninety (90) or more consecutive days;
      2. For which the current occupant of the facility has published a notice of closure so long as the eligible company intending to acquire the facility is not an affiliate of the current occupant; or
      3. To which the title is vested in other than the eligible company or an affiliate of the eligible company and that is sold or transferred pursuant to a foreclosure ordered by a court of competent jurisdiction or an order of a bankruptcy court of competent jurisdiction;
    2. Replaces a manufacturing or agribusiness facility existing in the Commonwealth:
      1. To which the title shall have been taken under the exercise of the power of eminent domain, or to which the title shall be the subject of a nonappealable judgment granting the authority to exercise the power of eminent domain, in either event to the extent that normal operations cannot be resumed at the facility within twelve (12) months; or
      2. Which has been damaged or destroyed by fire or other casualty to the extent that normal operations cannot be resumed at the facility within twelve (12) months; or
    3. Replaces an existing manufacturing or agribusiness facility located in the same county that cannot be expanded due to the unavailability of real estate at or adjacent to the manufacturing or agribusiness facility to be replaced. Any economic development project satisfying the requirements of this subsection shall be eligible only for inducements to the extent of the expansion, and no inducements shall be available for the equivalent of the manufacturing or agribusiness facility to be replaced. No economic development project otherwise satisfying the requirements of this subsection shall be approved by the authority that results in a lease abandonment or lease termination by the eligible company without the consent of the lessor.
  5. With respect to each eligible company making an application to the authority for inducements, and with respect to these economic development projects described in the application which do not involve an expansion, the authority shall make inquiries and request materials of the applicant, including but not limited to written evidence that except for the receipt of inducements authorized by KRS 154.28-015 to 154.28-090 and KRS 141.400 , the eligible company will not locate its economic development project within the Commonwealth. Upon the review of the application and completion of initial inquiries, the authority may, by resolution, give its preliminary approval by designating an eligible company as a preliminarily approved company and authorizing the undertaking of the economic development project.
  6. After a diligent review of the relevant materials and completion of its inquiries, the authority, by resolution of its board of directors, may designate an eligible company to be an approved company.
  7. All meetings of the board of directors of the authority shall be held in accordance with KRS 61.805 to 61.850 . The board of directors of the authority may, pursuant to KRS 61.815 , hold closed sessions of its meetings to discuss matters exempt from the open meetings law and pertaining to an eligible company.

History. Enact. Acts 1992, ch. 363, § 9, effective July 14, 1992; 1994, ch. 390, § 10, effective July 15, 1994; 1994, ch. 450, § 31, effective July 15, 1994; 1996, ch. 194, § 53, effective July 15, 1996; 1998, ch. 584, § 2, effective July 15, 1998; 2000, ch. 321, § 7, effective July 14, 2000; 2002, ch. 338, § 38, effective July 15, 2002; 2007, ch. 69, § 5, effective June 26, 2007.

Research References and Practice Aids

Kentucky Law Journal.

Spencer, Evaluating Kentucky’s Investment Tax Credits in Light of Cuno v. DaimlerChrysler, Inc. , 94 Ky. L.J. 161 (2005/2006).

154.28-090. Agreements between authority and approved companies — Time limits — Tax credits and assessments as inducements for approved companies — Assignment of agreement — Documentation of expenditures — Suspension of inducements — Authority’s remedies in case of failure to comply — Activation date — Duties of Department of Revenue.

The authority, upon adoption of an authorizing resolution, may enter into, with any approved company, an agreement with respect to its economic development project. The terms and provisions of each agreement, including the amount of approved costs, shall be determined by negotiations between the authority and the approved company, except that each agreement shall include the following provisions:

  1. The agreement shall set forth the maximum amount of inducements available to the approved company for recovery of the approved costs authorized by the authority and expended by the approved company.
  2. The approved company shall expend the authorized approved costs within three (3) years of the date of the final approval by the authority.
  3. The approved company shall provide the authority with documentation as to the expenditures for approved costs in a manner acceptable to the authority.
  4. The agreement shall include the activation date and will terminate upon the earlier of the full receipt of the maximum amount of inducements by the approved company or ten (10) years from the activation date. To implement the activation date, the approved company shall notify the authority, the Kentucky Department of Revenue, and the approved company’s employees of the activation date on which implementation of the inducements authorized in the agreement shall occur. The activation date shall be the time when the maximum dollar value of equipment that constitutes a portion of the economic development project under KRS 154.28-010 (11) shall be determined. If the approved company does not satisfy the minimum investment and minimum employment requirements of KRS 154.28-080 (3) by the activation date, the approved company shall not be entitled to receive inducements pursuant to this subchapter until the approved company satisfies the requirements; however, the ten (10) year period for the term of the agreement shall begin from the activation date. Notwithstanding the previous sentence, if the approved company does not satisfy the minimum investment and minimum employment requirements of KRS 154.28-080 (3) within two (2) years from the date of final approval of the agreement, then the approved company shall be ineligible to receive inducements under this subchapter unless an extension is approved by the authority.
  5. The tax agreement shall also state that if the total number of new full-time employees at the site of the economic development project who are residents of the Commonwealth and subject to the Kentucky income tax is less than fifteen (15) at any time after activation, the authorized inducements shall be suspended for a period of up to one (1) year. If the company does not have at least fifteen (15) new full-time employees at the site who are residents of the Commonwealth and subject to Kentucky income tax within one (1) year from the date of the initial suspension, the inducements may be terminated at the discretion of the authority.
  6. The approved company shall comply with the wage criteria set forth in KRS 154.28-080 (4) and provide documentation in connection with wages paid to its full-time employees hired as a result of the economic development project in a manner acceptable to the authority.
  7. The approved company may be permitted one of the following inducements during the term of the agreement and shall select the applicable inducement at the time of final approval by the authority:
    1. A one hundred percent (100%) credit against the Kentucky income tax and the limited liability entity tax imposed under KRS 141.0401 that would otherwise be owed in the approved company’s fiscal year, as determined under KRS 141.400 , to the Commonwealth by the approved company on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the economic development project, with the ordering of credits as provided in KRS 141.0205 ; or
    2. The aggregate assessments pursuant to KRS 154.28-110 withheld by the approved company each year.
  8. Either the total tax credit or assessments may not exceed authorized cumulative approved costs paid by the approved company in the three (3) year period commencing with the date of final approval.
  9. If the approved company elects to use the tax credit, the income tax and limited liability entity tax imposed under KRS 141.0401 credited to the approved company shall be credited for the fiscal year for which the tax return of the approved company is filed. The approved company shall not be required to pay estimated tax payments under KRS 141.044 on the Kentucky taxable income, Kentucky gross profits, or Kentucky gross receipts generated by or arising from the economic development project.
  10. The agreement may be assigned by the approved company only upon the prior written consent of the authority following the adoption of a resolution by the authority to that effect.
  11. The agreement shall provide that if an approved company fails to comply with its obligations under the agreement then the authority shall have the right, at its option, to:
    1. Suspend either the income tax credits or assessments available to the approved company, pursuant to subsection (5) of this section;
    2. Pursue any remedy provided under the agreement, including termination thereof; and
    3. Pursue any other remedy at law to which it may be entitled.
  12. All remedies provided in subsection (11) of this section shall be deemed to be cumulative.
  13. By October 1 of each year, the Department of Revenue shall certify to the authority, in the form of an annual report, aggregate tax credits claimed on tax returns filed during the fiscal year ending June 30 of that year and assessments taken during the prior calendar year by approved companies with respect to their economic development projects under this subchapter, and shall certify to the authority, within ninety (90) days from the date an approved company has filed its state income tax return, when an approved company has taken tax credits or assessments equal to its total inducements.

History. Enact. Acts 1992, ch. 363, § 10, effective July 14, 1992; 1994, ch. 450, § 32, effective July 15, 1994; 1996, ch. 194, § 54, effective July 15, 1996; 2000, ch. 300, § 23, effective July 14, 2000; 2000, ch. 321, § 8, effective July 14, 2000; 2002, ch. 338, § 39, effective July 15, 2002; 2004, ch. 105, § 17, effective July 13, 2004; 2005, ch. 85, § 584, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 60, effective June 28, 2006; 2019 ch. 151, § 70, effective June 27, 2019.

Legislative Research Commission Notes.

Section 85 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 70 of that Act apply retroactively to April 14, 2018.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

Research References and Practice Aids

Kentucky Law Journal.

Spencer, Evaluating Kentucky’s Investment Tax Credits in Light of Cuno v. DaimlerChrysler, Inc. , 94 Ky. L.J. 161 (2005/2006).

154.28-100. Application of law prior to July 15, 1994, in certain circumstances.

If the authority adopts a preliminary resolution designating an eligible company as an approved company and preliminarily approving the project of the eligible company as an economic development project prior to July 15, 1994, and the authority adopts a final resolution approving the eligible company as an approved company and the project of the eligible company as an economic development project, and the authority and the eligible company enter into a financing agreement no later than June 30, 1995, then the approved company thereafter shall be subject to KRS 154.28-010 to 154.28-090 as it existed prior to July 15, 1994.

History. Enact. Acts 1994, ch. 450, § 33, effective July 15, 1994.

154.28-101. Short title for KRS 154.28-010 to 154.28-100.

KRS 154.28-010 to 154.28-100 shall be known as the Kentucky Industrial Development Act.

History. Enact. Acts 1996, ch. 194, § 50, effective July 15, 1996.

154.28-105. Deadline for new applications — Governing law for outstanding approved projects.

New applications shall not be accepted or considered under this subchapter on or after June 26, 2009. All outstanding projects with preliminary or final approval under this subchapter as of June 26, 2009, shall continue to be governed by the provisions of this subchapter.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 28, effective June 26, 2009.

154.28-110. Assessment based on employee’s gross wages — Employee tax credits.

  1. The approved company or, with the authority’s consent, an affiliate of the approved company may require, in lieu of receiving the income tax credits described in KRS 154.28-090 , that each employee subject to state tax imposed by KRS 141.020 , as a condition of employment, agree to pay an assessment, equal to three percent (3%) of the gross wages of each employee whose job was created as a result of the economic development project, for the purpose of recovering authorized approved costs as set forth in the agreement.
  2. Each employee so assessed shall be entitled to a credit against Kentucky income tax withheld as provided by KRS 141.310 and 141.350 equal to the assessment withheld from his or her wages during the calendar year.
  3. If an approved company shall elect to impose the assessment as a condition of employment, it shall be authorized to deduct the assessment from each paycheck of each employee.
  4. Any approved company collecting an assessment as provided in subsection (1) of this section shall make its payroll books and records available to the authority at such reasonable times as the authority shall request and shall file with the authority documentation respecting the assessment as the authority may require.

History. Enact. Acts 1996, ch. 194, § 55, effective July 15, 1996; 2000, ch. 466, § 3, effective April 21, 2000; 2002, ch. 338, § 40, effective July 15, 2002.

154.28-120. Application to approved companies of KRS 154.28-010, 154.28-080, 154.28-090, and 154.28-110. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 194, § 56, effective July 15, 1996; 2000, ch. 321, § 9, effective July 14, 2000) was repealed by Acts 2002, ch. 338, § 49, effective July 15, 2002.

154.28-130. Costs of remediation of property as eligible costs.

Costs incurred by an applicant in remediating a property in accordance with KRS 224.1-510 to 224.1-532 shall be considered eligible costs for the purposes of KRS 154.28-010 to 154.28-100 .

History. Enact. Acts 2001, ch. 128, § 14, effective June 21, 2001.

Compiler’s Notes.

This section is set out above to reflect a correction to the section reference appearing in section from 224.01-510 to 224.01-532 to 224.1-510 to 224.1-532 due to renumbering by the state reviser effective in 2013.

154.28-140. Application of subchapter to companies that are approved and that enter into agreements by certain dates.

If the authority adopts a preliminary resolution designating an eligible company as an approved company and preliminarily approving the project of the eligible company as an economic development project prior to July 15, 2002, and the authority adopts a final resolution approving the eligible company as an approved company and the project of the eligible company as an economic development project, and the authority and the eligible company enter into an agreement no later than June 30, 2003, then the approved company thereafter shall be subject to Subchapter 28 of KRS Chapter 154 effective prior to July 15, 2002.

History. Enact. Acts 2002, ch. 338, § 41, effective July 15, 2002.

SUBCHAPTER 29. Financing of Tourism Development

154.29-010. Definitions for KRS 139.536 and KRS 154.29-010 to 154.29-060. [Repealed and reenacted.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 335, § 1, effective July 15, 1996; 1998, ch. 48, § 11, effective April 1, 1998; 1998, ch. 238, § 1, effective April 1, 1998; 2000, ch. 1, § 1, effective February 7, 2000) was repealed and reenacted as KRS 148.851 by Acts 2001, ch. 1, § 2, effective June 21, 2001.

154.29-020. Legislative findings. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 335, § 2, effective July 15, 1996) was repealed, reenacted and amended as KRS 148.853 by Acts 2001, ch. 1, § 3, effective June 21, 2001.

154.29-030. Evaluation standards — Tourism attraction project applications — Consulting services — Cabinet recommendations. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 335, § 3, effective July 15, 1996; 1998, ch. 48, § 12, effective July 15, 1998; 1998, ch. 238, § 2, effective April 1, 1998) was repealed, reenacted and amended as KRS 148.855 by Acts 2001, ch. 1, § 4, effective June 21, 2001.

154.29-040. Standards for preliminary and final approval of companies and projects. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 335, § 4, effective July 15, 1996; 1998, ch. 48, § 13, effective July 15, 1998; 1998, ch. 238, § 3, effective April 1, 1998) was repealed, reenacted and amended as KRS 148.857 by Acts 2001, ch. 1, § 5, effective June 21, 2001.

154.29-050. Contracts between authority and approved company. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 335, § 5, effective July 15, 1996; 1998, ch. 238, § 4, effective April 1, 1998; 2000, ch. 300, § 24, effective July 14, 2000; 2000, ch. 315, § 1, effective July 14, 2000) was repealed, reenacted and amended as KRS 148.859 by Acts 2001, ch. 1, § 6, effective June 21, 2001.

154.29-060. Short title for KRS 139.536 and KRS 154.29-010 to 154.29-060. [Repealed, reenacted and amended.]

Compiler’s Notes.

This section (Enact. Acts 1996, ch. 335, § 7, effective July 15, 1996) was repealed, reenacted and amended as KRS 148.860 by Acts 2001, ch. 1, § 7, effective June 21, 2001.

SUBCHAPTERS 30 to 89. Specific Types of Development

SUBCHAPTER 30. Tax Increment Financing

154.30-010. Definitions for subchapter.

As used in this subchapter:

  1. “Activation date” means:
    1. For all projects except those described in paragraph (b) of this subsection, the date established any time within a two (2) year period after the commencement date. The Commonwealth may extend the two (2) year period to no more than four (4) years upon written application by the agency requesting the extension; and
    2. For signature projects approved under KRS 154.30-050 (2)(a), the date established any time within a ten (10) year period after the commencement date. For all projects established after July 14, 2018, the activation date is the date on which the time period for the pledge of incremental revenues shall commence. To implement the activation date, the minimum capital investment must be met and the agency that is a party to the tax incentive agreement shall notify the office;
  2. “Agency” means:
    1. An urban renewal and community development agency established under KRS Chapter 99;
    2. A development authority established under KRS Chapter 99;
    3. A nonprofit corporation;
    4. A housing authority established under KRS Chapter 80;
    5. An air board established under KRS 183.132 to 183.160 ;
    6. A local industrial development authority established under KRS 154.50-301 to 154.50-346 ;
    7. A riverport authority established under KRS 65.510 to 65.650 ; or
    8. A designated department, division, or office of a city or county;
  3. “Approved public infrastructure costs” means costs associated with the acquisition, installation, construction, or reconstruction of public works, public improvements, and public buildings, including planning and design costs associated with the development of such public amenities. “Approved public infrastructure costs” includes but is not limited to costs incurred for the following:
    1. Land preparation, including demolition and clearance work;
    2. Buildings;
    3. Sewers and storm drainage;
    4. Curbs, sidewalks, promenades, and pedways;
    5. Roads;
    6. Street lighting;
    7. The provision of utilities;
    8. Environmental remediation;
    9. Floodwalls and floodgates;
    10. Public spaces or parks;
    11. Parking;
    12. Easements and rights-of-way;
    13. Transportation facilities;
    14. Public landings;
    15. Amenities, such as fountains, benches, and sculptures; and
    16. Riverbank modifications and improvements;
  4. “Approved signature project costs” means:
    1. The acquisition of land for portions of the project that are for infrastructure; and
    2. Costs associated with the acquisition, installation, development, construction, improvement, or reconstruction of infrastructure, including planning and design costs associated with the development of infrastructure, including but not limited to parking structures, including portions of parking structures that serve as platforms to support development above;

      that have been determined by the commission to represent a unique challenge in the financing of a project such that the project could not be developed without incentives intended by this chapter to foster economic development;

  5. “Authority” means the Kentucky Economic Development Finance Authority established by KRS 154.20-010 ;
  6. “Capital investment” means:
    1. Obligations incurred for labor and to contractors, subcontractors, builders, and material men in connection with the acquisition, construction, installation, equipping, and rehabilitation of a project;
    2. The cost of acquiring land or rights in land within the development area on the footprint of the project, and any cost incident thereto, including recording fees;
    3. The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, installation, equipping, and rehabilitation of a project which is not paid by the contractor or contractors or otherwise provided;
    4. All costs of architectural and engineering services, including test borings, surveys, estimates, plans, specifications, preliminary investigations, supervision of construction, and the performance of all the duties required by or consequent upon the acquisition, construction, installation, equipping, and rehabilitation of a project;
    5. All costs that are required to be paid under the terms of any contract for the acquisition, construction, installation, equipping, and rehabilitation of a project; and
    6. All other costs of a nature comparable to those described in this subsection that occur after preliminary approval;
  7. “City” means any city, consolidated local government, or urban-county government;
  8. “Commencement date” means the final approval date or the date on which a tax incentive agreement is executed;
  9. “Commonwealth” means the Commonwealth of Kentucky;
  10. “County” means any county, consolidated local government, charter county, unified local government, or urban-county government;
  11. “CPI” means the nonseasonally adjusted Consumer Price Index for all urban consumers, all items, base year computed for 1982 to 1984 equals one hundred (100), published by the United States Department of Labor, Bureau of Labor Statistics;
  12. “Department” means the Department of Revenue;
  13. “Development area” means an area established under KRS 65.7049 , 65.7051 , and 65.7053 ;
  14. “Economic development projects” means projects which are approved for tax credits under Subchapter 20, 22, 23, 24, 25, 26, 27, 28, 34, or 48 of KRS Chapter 154;
  15. “Financing costs” means principal, interest, costs of issuance, debt service reserve requirements, underwriting discount, costs of credit enhancement or liquidity instruments, and other costs directly related to the issuance of bonds or debt for approved public infrastructure costs or approved signature project costs for projects approved pursuant to KRS 154.30-050 ;
  16. “Footprint” means the actual perimeter of a discrete, identified project within a development area. The footprint shall not include any portion of a development area outside the area for which actual capital investments are made and must be contiguous;
  17. “Governing body” means the body possessing legislative authority in a city or county;
  18. “Increment bonds” means bonds and notes issued for the purpose of paying the costs of one (1) or more projects;
  19. “Incremental revenues” means:
    1. The amount of revenues received by a taxing district, as determined by subtracting old revenues from new revenues in a calendar year with respect to a development area, or a project within a development area; or
    2. The amount of revenues received by the Commonwealth as determined by subtracting old revenues from new revenues in a calendar year with respect to the footprint;
  20. “Local participation agreement” means the agreement entered into under KRS 65.7063 ;
  21. “Local tax revenues” has the same meaning as in KRS 65.7045 ;
  22. “New revenues” means:
    1. The amount of local tax revenues received by a taxing district with respect to a development area in any calendar year beginning with the year in which the activation date occurred;
    2. The amount of state tax revenues received by the Commonwealth with respect to the footprint in any calendar year beginning with the year in which the activation date occurred;
  23. “Old revenues” means:
    1. The amount of local tax revenues received by a taxing district with respect to a development area as of December 31 of the year of preliminary approval; or
      1. The amount of state tax revenues received by the Commonwealth within the footprint as of December 31 of the year of preliminary approval. If the authority determines that the amount of state tax revenues received as of December 31 of the last calendar year prior to the commencement of preliminary approval does not represent a true and accurate depiction of revenues, the authority may consider revenues for a period of no longer than three (3) calendar years prior to the year of preliminary approval, so as to determine a fair representation of state tax revenues. The amount determined by the authority shall be specified in the tax incentive agreement. If state tax revenues were derived from the footprint prior to the year of preliminary approval, old revenues shall increase each calendar year by: (b) 1. The amount of state tax revenues received by the Commonwealth within the footprint as of December 31 of the year of preliminary approval. If the authority determines that the amount of state tax revenues received as of December 31 of the last calendar year prior to the commencement of preliminary approval does not represent a true and accurate depiction of revenues, the authority may consider revenues for a period of no longer than three (3) calendar years prior to the year of preliminary approval, so as to determine a fair representation of state tax revenues. The amount determined by the authority shall be specified in the tax incentive agreement. If state tax revenues were derived from the footprint prior to the year of preliminary approval, old revenues shall increase each calendar year by:
        1. The percentage increase, if any, of the CPI or a comparable index; or
        2. An alternative percentage increase that is determined to be appropriate by the authority.

          The method for increasing old revenues shall be set forth in the tax incentive agreement;

      2. If state revenues were derived from the footprint prior to the year of preliminary approval, the calculation of incremental revenues shall be based on the value of old revenues as increased using the method prescribed in subparagraph 1. of this paragraph to reflect the same calendar year as is used in the determination of new revenues;
  24. “Outstanding” means increment bonds that have been issued, delivered, and paid for by the purchaser, except any of the following:
    1. Increment bonds canceled upon surrender, exchange, or transfer, or upon payment or redemption;
    2. Increment bonds in replacement of which or in exchange for which other increment bonds have been issued; or
    3. Increment bonds for the payment, redemption, or purchase for cancellation prior to maturity, of which sufficient moneys or investments, in accordance with the ordinance or other proceedings or any applicable law, by mandatory sinking fund redemption requirements, or otherwise, have been deposited, and credited in a sinking fund or with a trustee or paying or escrow agent, whether at or prior to their maturity or redemption, and, in the case of increment bonds to be redeemed prior to their stated maturity, notice of redemption has been given or satisfactory arrangements have been made for giving notice of that redemption, or waiver of that notice by or on behalf of the affected bond holders has been filed with the issuer or its agent;
  25. “Preliminary approval” means the action taken by the authority preliminarily approving an eligible project for incentives under this subchapter;
  26. “Project” means any property, asset, or improvement located in a development area and certified by the governing body as:
    1. Being for a public purpose; and
    2. Being for the development of facilities for residential, commercial, industrial, public, recreational, or other uses, or for open space, including the development, rehabilitation, renovation, installation, improvement, enlargement, or extension of real estate and buildings; and
    3. Contributing to economic development or tourism; and
    4. Meeting the additional requirements established by KRS 154.30-040 , 154.30-050 , or 154.30-060 ;
  27. “Signature project” means a project approved under KRS 154.30-050 ;
  28. “State real property ad valorem tax” means real property ad valorem taxes levied under KRS 132.020(1)(a);
  29. “State tax revenues” means revenues received by the Commonwealth from one (1) or more of the following sources:
    1. State real property ad valorem taxes;
    2. Individual income taxes levied under KRS 141.020 , other than individual income taxes that have already been pledged to support an economic development project within the development area;
    3. Corporation income taxes levied under KRS 141.040 , other than corporation income taxes that have already been pledged to support an economic development project within the development area;
    4. Limited liability entity taxes levied under KRS 141.040 1, other than limited liability entity taxes that have already been pledged to support an economic development project within the development area; and
    5. Sales taxes levied under KRS 139.200 , excluding sales taxes already pledged for:
      1. Approved tourism attraction projects, as defined in KRS 148.851 , within the development area; and
      2. Projects which are approved for sales tax refunds under Subchapter 20 of KRS Chapter 154 within the development area;
  30. “Tax incentive agreement” means an agreement entered into in accordance with KRS 154.30-070 ; and
  31. “Termination date” means:
    1. For a tax incentive agreement satisfying the requirements of KRS 154.30-040 or 154.30-060 , a date established by the tax incentive agreement that is no more than twenty (20) years from the activation date. However, the termination date for a tax incentive agreement shall in no event be more than forty (40) years from the establishment date of the development area to which the tax incentive agreement relates; and
    2. For a project grant agreement satisfying the requirements of KRS 154.30-050 , a date established by the tax incentive agreement that is no more than thirty (30) years from the activation date. However, the termination date for a tax incentive agreement shall in no event be more than forty (40) years from the establishment date of the development area to which the tax incentive agreement relates.

HISTORY: Enact. Acts 2008, ch. 178, § 14, effective July 15, 2008; 2009 (1st Ex. Sess.), ch. 1, § 102, effective June 26, 2009; 2011, ch. 62, § 7, effective June 8, 2011; 2018 ch. 199, § 26, effective July 14, 2018.

Legislative Research Commission Note.

(6/8/2011). 2011 Ky. Acts. ch. 62, sec. 8, provides that “the provisions of Section 7 of this Act (KRS 154.30-010 ) shall apply retroactively and any agreements entered into prior to the effective date of this Act, for projects approved under KRS 154.30-050 (2)(a) that have not been activated as of the effective date of this Act, shall be amended to reflect the revised activation date provided for in Section 7 of this Act.”

(6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 103, provided that, notwithstanding KRS 65.7044(6), the amendments made to this statute in 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 102, “shall apply retroactively and any agreements entered into prior to the effective date of this Act for projects approved under KRS 154.30-050 (2)(a) that have not been activated as of the effective date of this Act shall be amended to reflect the revised activation date provided for in Section 102 of this Act.”

(7/15/2008). 2008 Ky. Acts ch. 178, sec. 14 established a new Subchapter 30 of KRS Chapter 154 concerning tax increment financing projects and provided further that “KRS 65.7045 is repealed, reenacted, and amended as a new section thereof to read as follows.” Since KRS 65.7045 was also amended in sec. 2 of that Act, inquiry was made of the drafter as to the intent of sec. 14. The drafter explained that statutes dealing with both area development projects and tax increment financing projects were blended together in KRS Chapter 65 with no easy distinguishing elements, and the intent of creating Subchapter 30 of KRS Chapter 154 was to separate them appropriately. The intent of sec. 14 was to create a definitions section for the new Subchapter 30 of KRS Chapter 154, using the text of KRS 65.7045 as a base starting point, removing definitions specific to KRS Chapter 65 area development projects, retaining definitions that were common to both area development projects and tax increment financing projects, and adding definitions specific to tax increment financing projects. As such, the Reviser of Statutes has treated sec. 14 in codification as creating a new section of Subchapter 30 of KRS Chapter 154 (this statute) to effectuate that intent.

154.30-020. Findings of General Assembly relative to development areas and projects.

  1. The General Assembly finds that the establishment of development areas and projects which result in increased property values, increased employment opportunities, and increased economic activity in communities within the Commonwealth serves a public purpose.
  2. The General Assembly further finds and declares that the authority prescribed in this subchapter, and the purposes to be accomplished thereunder are proper.

History. Enact. Acts 2008, ch. 178, § 15, effective July 15, 2008.

154.30-030. State tax increment financing participation programs — Application requirements for a local government to request state participation — Authority review requirements — Pledge limitations — Tax incentive agreements required — Independent consultant’s report.

  1. The Commonwealth shall offer three (3) tax increment financing participation programs. The first program, the criteria and details of which are set forth in KRS 154.30-040 , relates to a pledge of state real property ad valorem taxes only. The second program, the criteria and details of which are set forth in KRS 154.30-050 , is the Signature Projects Program. The third program, the criteria and details of which are set forth in KRS 154.30-060 , relates to the pledge of state tax revenues to support mixed-use development in blighted urban areas.
    1. A city or county that has established a development area pursuant to KRS 65.7049 , 65.7051 , and 65.7053 , or an agency designated as the entity managing a development area established pursuant to KRS 65.7049 , 65.7051 , and 65.7053 , may submit an application to the authority requesting that the Commonwealth participate in a project. (2) (a) A city or county that has established a development area pursuant to KRS 65.7049, 65.7051, and 65.7053, or an agency designated as the entity managing a development area established pursuant to KRS 65.7049, 65.7051, and 65.7053, may submit an application to the authority requesting that the Commonwealth participate in a project.
      1. The application shall identify the specific program under which state participation is being requested and shall include the following attachments, in addition to any requirements developed by the authority pursuant to paragraph (b) of this subsection:
        1. A copy of the ordinance adopted by the city or county establishing the development area;
        2. A copy of the local participation agreement; and
        3. Data and information supporting the determinations and findings required by KRS 65.7049.
      2. The staff of the authority shall review the application to determine if the applicant has met all of the statutory and regulatory requirements established by this subchapter and shall notify the applicant in writing of its determination. This review shall be preliminary in nature and shall not constitute approval of the request. All applications for participation by the Commonwealth shall be reviewed by the authority for approval.
        1. Applications meeting all statutory and regulatory requirements requesting participation by the Commonwealth pursuant to KRS 154.30-040 , along with any supporting materials, shall be referred by the staff of the authority to the authority for consideration. 3. a. Applications meeting all statutory and regulatory requirements requesting participation by the Commonwealth pursuant to KRS 154.30-040 , along with any supporting materials, shall be referred by the staff of the authority to the authority for consideration.
          1. Applicants meeting all statutory and regulatory requirements requesting participation by the Commonwealth pursuant to KRS 154.30-050 (2)(b) or 154.30-060 shall be required to submit a report prepared by an independent consultant or financial adviser as described in subsection (6) of this section for the application to be complete. The staff of the authority shall notify such applicants of the report requirements and shall provide information regarding the contents and requirements for the report at the same time it notifies the applicant of the results of its preliminary review. b. i. Applicants meeting all statutory and regulatory requirements requesting participation by the Commonwealth pursuant to KRS 154.30-050 (2)(b) or 154.30-060 shall be required to submit a report prepared by an independent consultant or financial adviser as described in subsection (6) of this section for the application to be complete. The staff of the authority shall notify such applicants of the report requirements and shall provide information regarding the contents and requirements for the report at the same time it notifies the applicant of the results of its preliminary review.
          2. Upon receipt and review of the report, the staff of the authority shall refer the application and supporting information to the authority for consideration.
    2. Additional standards and requirements for the application process shall be established by the authority through the promulgation of administrative regulations in accordance with KRS Chapter 13A.
    1. The authority may request any materials and make any inquiries concerning an application that the authority deems necessary. (3) (a) The authority may request any materials and make any inquiries concerning an application that the authority deems necessary.
    2. The authority shall, through the promulgation of administrative regulations in accordance with KRS Chapter 13A, establish commercially reasonable limitations on the financing costs that may be recovered under the provisions of KRS 154.30-050 .
  2. Upon review of an application and other information available, the authority may pledge all or a portion of the state real property ad valorem tax incremental revenue of the Commonwealth or state tax revenues attributable to the footprint of the project, as limited by KRS 154.30-040 , 154.30-050 , or 154.30-060 , whichever is applicable.
    1. If incremental revenues are pledged from less than one hundred percent (100%) of the footprint of the project, a description of the included portion of the development area shall be provided.
    2. State tax revenues from the development area that have not been pledged to projects within the development area may be used to support other economic development projects or tourism projects approved under KRS 139.536 and 148.851 to 148.860 , provided that state tax revenues shall not be pledged more than once during the existence of the development area. Thus, state tax revenues pledged to support increment bonds issued for the development area, or a project in the development area shall not be pledged to support any other development area, project, program, development, or undertaking during the life of the development area. If less than one hundred percent (100%) of incremental revenues are pledged pursuant to the provisions of this subchapter, the remaining incremental revenues shall not be used to support other economic development projects or tourism projects approved under KRS 139.536 and 148.851 to 148.860 .
  3. The pledge of incremental state real property ad valorem tax revenues or state tax revenues of the Commonwealth by the authority shall be implemented through the execution of a tax incentive agreement between the Commonwealth and the agency, city, or county, as the case may be, in accordance with KRS 154.30-070 .
    1. The authority shall engage the services of a qualified independent outside consultant or financial adviser to analyze the data related to the project and the development area and prepare the report required by subsection (2) of this section. The report shall include the following: (6) (a) The authority shall engage the services of a qualified independent outside consultant or financial adviser to analyze the data related to the project and the development area and prepare the report required by subsection (2) of this section. The report shall include the following:
      1. The estimated approved public infrastructure costs for the project and, if relevant, approved signature project costs, financing costs, and costs associated with land preparation, demolition, and clearance;
      2. The feasibility of the project, taking into account the scope and location of the project;
      3. The estimated amount of local tax revenues and state tax revenues, as applicable, that would be generated by the project over the period, which may be up to twenty (20) years or thirty (30) years, as applicable, from the activation date;
      4. The estimated amount of local tax revenues and state tax revenues, as applicable, that would be displaced within the Commonwealth, for the purpose of quantifying economic activity which is being shifted over the same period as that set forth in subparagraph 3. of this paragraph. The projections for displaced activity shall include economic activity that is lost to the Commonwealth as a result of the project, as well as economic activity that is diverted to the project that formerly took place at existing establishments within the Commonwealth prior to the commencement date of the project;
      5. The estimated amount of local and state old revenues that would have been generated in the footprint of the project in the absence of the project, computed over the same time period as set forth in subparagraph 3. of this paragraph;
      6. In the process of estimating the revenues and impacts prescribed in subparagraphs 3. and 4. of this paragraph, the independent outside consultant shall not consider any of the following:
        1. Revenues or economic impacts associated with any projects within the development area where the new project will be located; and
        2. Revenues or economic impacts associated with economic development projects and approved Kentucky Tourism Development Act projects under KRS Chapter 148;
      7. The relationship of the estimated incremental revenues to the financing needs, including any increment bonds, of the project;
      8. When estimating the fiscal impact of the project, the consultant shall evaluate the amount of revenue estimated in subparagraph 3. of this paragraph and shall deduct the amounts estimated in subparagraphs 4. and 5. of this paragraph. The resulting difference shall be compared to the estimated incremental revenues to determine the presence or absence of a positive fiscal impact; and
      9. A determination that the project will not occur if not for the designation of the development area, the granting of incremental revenues by the taxing district or districts, other than the Commonwealth, and the granting of the state tax incremental revenues.
      1. The independent consultant or financial advisor shall consult with the Office of State Budget Director, and the Finance and Administration Cabinet in the development of the report. (b) 1. The independent consultant or financial advisor shall consult with the Office of State Budget Director, and the Finance and Administration Cabinet in the development of the report.
      2. The Office of State Budget Director and the staff of the authority, in collaboration with the independent consultant or financial advisor, shall agree on a methodology to be used and assumptions to be made by the independent consultant or financial consultant in preparing its report.
      3. On the basis of the independent consultant’s report and the other materials provided, prior to any approval of a project by the authority, the Office of State Budget Director and the Finance and Administration Cabinet shall certify to the authority whether there is a projected net positive economic impact to the Commonwealth and the expected amount of state tax incremental revenues from the project.
      4. The city, county, or agency making the application shall pay all costs associated with the independent consultant’s or financial advisor’s report.

History. Repealed, reenact. and amend., Acts 2008, ch. 178, § 16, effective July 15, 2008.

Compiler’s Notes.

This section was formerly compiled as KRS 65.7071 .

154.30-040. Commonwealth Participation Program for State Real Property Ad Valorem Tax Revenues — Criteria for state participation — Qualifying expenditures — Pledge limitations — Authority review — Required determinations by the authority — Tax incentive agreement required.

  1. The Commonwealth Participation Program for State Real Property Ad Valorem Tax Revenues is hereby established.
  2. State participation under this program shall be limited to the support of approved public infrastructure costs determined to be necessary to support private investment or private development projects that benefit the public, where project economics are unable to support or secure necessary financing to undertake the public improvements.
  3. A project shall meet all of the following criteria to be considered for state participation under this program:
    1. The project shall represent new economic activity in the Commonwealth;
    2. The project shall result in a minimum capital investment of ten million dollars ($10,000,000); and
    3. Not more than twenty percent (20%) of the capital investment or twenty percent (20%) of the finished square footage shall be devoted to the support or development of assets that will be utilized for the retail sale of tangible personal property.
  4. The authority shall review the application and supporting information as provided in KRS 154.30-030 .
  5. The authority may pledge up to one hundred percent (100%) of the Commonwealth’s state real property ad valorem tax incremental revenue from the footprint of a project, provided that the maximum amount of incremental revenues that may be pledged during the term of the state participation agreement for a project shall not exceed one hundred percent (100%) of approved public infrastructure costs.
  6. As part of the approval process, the authority shall determine the following:
    1. The footprint of the project;
    2. The maximum amount of approved public infrastructure costs;
    3. That the local revenues pledged to support the public infrastructure of the project, and local revenues pledged to support the overall project are of a sufficient amount to warrant participation of the Commonwealth in the project;
    4. The termination date of the project grant agreement, not to exceed twenty (20) years from the activation date; and
    5. Any adjustments to be made to old revenues in determining incremental revenues during each year of the term of the project grant agreement.
  7. The pledge of incremental state real property ad valorem tax revenues of the Commonwealth by the authority shall be implemented through the execution of a tax incentive agreement between the Commonwealth and the agency, city, or county, in accordance with KRS 154.30-070 .

History. Repealed, reenact. and amend., Acts 2008, ch. 178, § 17, effective July 15, 2008.

Compiler’s Notes.

This section was formerly compiled as KRS 65.7073 .

154.30-050. Signature Project Program — Purpose — Two initiatives — Criteria for state participation — Qualifying expenditures — Authority review — Required determinations by the authority — Pledge limitations — Tax incentive agreement required — Authority may approve reduction in required minimum capital investment.

  1. The Signature Project Program is hereby established. The purpose of this program is to encourage private investment in the development of major projects that will have a significant impact on the Commonwealth of Kentucky and are judged to be of such a magnitude that the effect upon the location of such project warrants extraordinary public support.
  2. There shall be two (2) separate initiatives under this program. The first initiative, the criteria and details of which are set forth in paragraph (a) of this subsection, shall apply to qualifying projects that are not the subject of a contract under KRS 65.495 in effect on or before the March 23, 2007, but that have a project grant agreement executed pursuant to KRS 154.30-070 prior to January 1, 2008. The second initiative, the criteria and details of which are set forth in paragraph (b) of this subsection, shall apply to projects that meet the specified requirements on or after January 1, 2008.
    1. For projects that are not the subject of a contract under KRS 65.495 in effect on or before March 23, 2007, but that have a project grant agreement executed pursuant to the provisions of KRS 154.30-070 prior to January 1, 2008:
      1. The criteria for qualification shall be as follows:
        1. The project shall represent new economic activity in the Commonwealth; and
        2. The project shall result in a minimum capital investment of two hundred million dollars ($200,000,000).
      2. The following provisions shall apply to projects that meet the criteria established in subparagraph 1. of this paragraph:
        1. KRS 65.7051 shall not apply to the establishment of a development area;
        2. The city or county in which the project is located shall adopt an ordinance establishing the development area. The ordinance shall be adopted in accordance with KRS 65.7053(1)(a), (b), (c), (d), (e), (h), (i), (j), (k), (l), and (m);
        3. KRS 65.7049 , 65.7053(2) and (3), 65.7057 , 65.7059 , 65.7061 , 65.7063 , 65.7065 , and 65.7067 , relating to local development areas, shall apply;
        4. An application for state participation shall have been submitted as provided in KRS 154.30-030 . The application shall include the information required by KRS 154.30-030 (2)(a) 1.a. and b.;
        5. The report provided for in KRS 154.30-030(2)(a) 3.b. shall not be required, and the certification required by KRS 154.30-030(6)(b) shall not be required;
        6. A project grant agreement shall be executed in accordance with KRS 154.30-070; and
        7. KRS 154.30-080 and 154.30-090 shall apply.
      3. Projects that meet the criteria established in subparagraph 1. of this paragraph shall be eligible for the following:
        1. Up to one hundred percent (100%) of approved public infrastructure costs, excluding any sales and use tax paid, may be recovered;
        2. Up to one hundred percent (100%) of the financing costs associated with approved public infrastructure costs may be recovered;
        3. In a county containing a city of the first class, the local participation agreement may provide for the release of up to eighty percent (80%) of the increment from the tax levied under KRS 91A.390 derived by the governing body within the project development area. The amount released shall not exceed a base amount of four hundred thousand dollars ($400,000) in the first year of the local participation agreement, which base amount shall be increased in each subsequent year of the grant agreement by four percent (4%); and
        4. Up to one hundred percent (100%) of approved signature project costs, excluding any sales and use taxes paid, subject to the following:
          1. The authority shall review proposed expenditures for inclusion in the tax incentive agreement. The authority may approve the type of expenditures it determines are necessary for completion of the private development; and
          2. Approved signature project costs shall be detailed in the tax incentive agreement.
    2. Beginning January 1, 2008:
      1. A project shall meet all of the following criteria to be considered for state participation under this program:
        1. The project shall represent new economic activity in the Commonwealth;
        2. The project shall result in a minimum capital investment of two hundred million dollars ($200,000,000);
        3. The project shall result in a net positive economic impact to the Commonwealth, taking into consideration any substantial adverse impact on existing Commonwealth businesses. The net positive impact shall be certified to the commission as required by KRS 154.30-030(6)(b); and
        4. Not more than twenty percent (20%) of the capital investment or twenty percent (20%) of the finished square footage shall be devoted to the support or development of assets that will be utilized for the retail sale of tangible personal property.
      2. Projects that meet the criteria established by subparagraph 1. of this paragraph shall comply with all relevant provisions of this subchapter.
      3. Projects that meet the criteria established by subparagraphs 1. and 2. of this paragraph shall be eligible to recover:
        1. Up to one hundred percent (100%) of approved public infrastructure costs, excluding any sales and use taxes paid;
        2. Up to one hundred percent (100%) of the financing costs associated with approved public infrastructure costs; and
        3. Up to one hundred percent (100%) of approved signature project costs, excluding sales and use taxes paid subject to the following:
          1. The authority shall review proposed expenditures for inclusion in the tax incentive agreement. The authority may approve the type of expenditures it determines are necessary for completion of the private development; and
          2. Approved signature project costs shall be detailed in the tax incentive agreement.
  3. The authority shall review the application, the certification required by KRS 154.30-030 , if applicable, and supporting information as provided in KRS 154.30-030 .
  4. The authority shall specifically identify the state taxes from which incremental revenues will be pledged. The authority may pledge up to eighty percent (80%) of the incremental revenues from the identified state tax revenues from the footprint, provided that the maximum amount of incremental revenues that may be pledged for a project during the term of the tax incentive agreement from all approved state taxes shall not exceed one hundred percent (100%) of approved public infrastructure costs, approved signature project costs, and financing costs.
  5. As part of the approval process, the authority shall determine the following:
    1. The footprint of the project;
    2. The maximum amount of approved public infrastructure costs, approved signature project costs, and financing costs;
    3. That the local revenues pledged to support the public infrastructure of the project, and local revenues pledged to support the overall project are of a sufficient amount to warrant participation of the Commonwealth in the project;
    4. The termination date of the tax incentive agreement, not to exceed thirty (30) years from the activation date;
    5. Any adjustments to be made to old revenues, in determining incremental revenues during each year of the term of the project grant agreement; and
    6. Any approved signature project costs;
  6. For the purpose of making the determination required by KRS 139.515 (2), the authority shall review the projected expenditures for tangible personal property used in the construction of a signature project, as defined in KRS 139.515 (1), and shall establish an approximate percentage of the total anticipated expenditures that are not included in the tax incentive agreement as approved public infrastructure costs or approved signature project costs. This percentage shall be communicated by the authority to the Department of Revenue, which shall use the information in administering the sales tax refund permitted by KRS 139.515.
  7. If state income taxes or local occupational license taxes are included for a project that includes office space, the authority shall consider the impact of pledging theses taxes on the ability to utilize other economic development projects at a later date.
  8. The pledge of state incremental tax revenues of the Commonwealth by the authority shall be implemented through the execution of a tax incentive agreement between the Commonwealth and the agency, city, or county in accordance with KRS 154.30-070 .
  9. Notwithstanding the minimum capital investment of two hundred million dollars ($200,000,000) required by subsection (2)(b)1.b. of this section, the authority may, upon application of an agency that:
    1. Was approved to proceed with a project after January 1, 2008, but before January 1, 2013, that, at the time of approval pledged to make the two hundred million dollars ($200,000,000) investment requirement; and
    2. Had a consultant report prepared pursuant to KRS 154.30-030 (6);

approve a reduction in the required minimum capital investment to an amount not less than one hundred fifty million dollars ($150,000,000), subject to a corresponding adjustment of the maximum incremental revenue available for recovery as appropriate, based upon the recommendation of the consultant who prepared the report pursuant to KRS 154.30-030 (6).

History. Repealed, reenact. and amend., Acts 2008, ch. 178, § 18, effective July 15, 2008; 2013, ch. 36, § 1, effective June 25, 2013.

Compiler’s Notes.

This section was formerly compiled as KRS 65.7075 .

Opinions of Attorney General.

The Model Procurement Code did not apply to a mayor’s development contract with a company where the metro council had previously taken action to declare the project that was the subject of the contract as a “signature project” under former KRS 65.7075 [repealed, reenacted and amended as KRS 154.30-050 ] and identified the company with which the mayor contracted as the developer of the project. The Metro Council effectively placed the Development Agreement outside the scope of the Model Procurement Code. OAG 09-007 .

154.30-052. Signature project loan support program — Program requirements. [Repealed]

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 64, effective June 26, 2009; repealed by 2018 ch. 199, § 37, effective July 14, 2018.

154.30-060. Commonwealth Participation Program for Mixed-Use Redevelopment in Blighted Urban Areas — Definitions — Criteria for state participation — Qualifying expenditures — Authority review — Required determinations by the authority — Pledge limitations — Tax incentive agreement required.

  1. The Commonwealth Participation Program for Mixed-Use Redevelopment in Blighted Urban Areas is hereby established.
  2. State participation under this program shall be limited to the support of approved public infrastructure costs and costs associated with land preparation, demolition, and clearance determined to be necessary to support private investment or private development projects that benefit the public, where project economics are unable to support or secure necessary financing to undertake the public improvements, land preparation, demolition, and clearance.
  3. As used in this section:
    1. “Mixed-use” means a project:
      1. That includes at least two (2) qualified uses, each of which comprises at least twenty percent (20%) of the total finished square footage of the proposed project or represents at least twenty percent (20%) of the total capital investment; or
      2. That includes at least three (3) qualified uses:
        1. One (1) of which comprises at least twenty percent (20%) of the total finished square footage of the proposed project or represents at least twenty percent (20%) of the total capital investment; and
        2. The remainder of which, when combined, jointly comprise at least twenty percent (20%) of the total finished square footage of the proposed project or represent at least twenty percent (20%) of the total capital investment;
    2. “Qualified use” means:
      1. Retail;
      2. Residential;
      3. Office;
      4. Restaurant; or
      5. Hospitality; and
    3. “Retail” means an establishment predominantly engaged in the sale of tangible personal property subject to the tax imposed by KRS Chapter 139, but shall not include restaurants.
  4. To be considered for state participation under this program, a project shall:
    1. Be located in an area that has three (3) or more of the conditions listed in KRS 65.7049(3)(a), or be a project described in KRS 65.7049(3)(b);
    2. Be a mixed-use project;
    3. Represent new economic activity in the Commonwealth;
    4. Result in a capital investment between twenty million dollars ($20,000,000) and two hundred million dollars ($200,000,000);
    5. Not include any retail establishment that exceeds twenty thousand (20,000) square feet of finished square footage;
    6. Include pedestrian amenities and public space; and
    7. Result in a net positive economic impact to the Commonwealth, taking into consideration any substantial adverse impact on existing Commonwealth businesses. The net positive impact shall be certified to the authority as required by KRS 154.30-030 (6)(b).
  5. The following costs may be recovered pursuant to this section:
    1. Up to one hundred percent (100%) of approved public infrastructure costs; and
    2. Up to one hundred percent (100%) of expenses for land preparation, demolition, and clearance necessary for the development to occur.
  6. The commission shall review the application, the certification required by KRS 154.30-030 , and supporting information as provided in KRS 154.30-030 .
  7. The authority shall specifically identify the state taxes from which incremental revenues will be pledged. The authority may pledge up to eighty percent (80%) of the incremental revenues from the identified state tax revenues from the footprint of the project, provided that the maximum amount of incremental revenues that may be pledged for a project during the term of the tax incentive agreement from all approved state taxes shall not exceed the costs and expenses determined under subsection (5) of this section.
  8. As part of the approval process, the authority shall determine the following:
    1. The footprint of the project;
    2. That the proposed project meets the requirements established by subsection (4) of this section;
    3. The maximum amount of approved public infrastructure costs and expenses for land preparation, demolition, and clearance;
    4. That the local revenues pledged to support the public infrastructure of the project and local revenues pledged to support the overall project are of a sufficient amount to warrant participation of the Commonwealth in the project;
    5. The termination date of the tax incentive agreement; and
    6. Any adjustments to be made to old revenues, in determining incremental revenues during each year of the term of the tax incentive agreement.
  9. If state income taxes or local occupational licenses taxes are included for a project that includes office space, the authority shall consider the impact of pledging these taxes on the ability to utilize other economic development projects at a later date.
  10. The pledge of state incremental tax revenues of the Commonwealth by the authority shall be implemented through the execution of a tax incentive agreement between the Commonwealth and the agency, city, or county in accordance with KRS 154.30-070 .

History. Enact. Acts 2008, ch. 178, § 19, effective July 15, 2008; 2011, ch. 62, § 4, effective June 8, 2011; 2014, ch. 105, § 1, effective July 15, 2014; 2017 ch. 174, § 2, effective April 10, 2017.

Compiler's Notes.

This section was formerly compiled as KRS 65.7077 .

Legislative Research Commission Note.

(4/10/2017). 2017 Ky. Acts ch. 174, sec. 5 provided that amendments made to subsection (3) of this statute in 2017 Ky. Acts ch. 174, sec. 2 shall apply to applications for which a Tax Incentive Agreement has not been approved prior to April 10, 2017 (the effective date of that section of that Act).

154.30-070. Terms and conditions of tax incentive agreements to be negotiated between authority and agency — Provisions of agreement — Pledge of incremental revenues superior to other pledges of revenues — Renewal and discontinuance of agreement.

  1. The terms and conditions of the tax incentive agreement shall be negotiated between the authority and the agency. The tax incentive agreement shall include but not be limited to the following provisions:
    1. Identification of the parties to the tax incentive agreement and the duties and responsibilities of each party to the tax incentive agreement;
    2. The specific identification of the state tax revenues, by type of tax, to be released or pledged by the Commonwealth for the project;
      1. A detailed summary of old revenues collected and projected new revenues for the Commonwealth on an annual basis for the term of the tax incentive agreement; and (c) 1. A detailed summary of old revenues collected and projected new revenues for the Commonwealth on an annual basis for the term of the tax incentive agreement; and
      2. The maximum amount of incremental revenue to be released by the Commonwealth and the maximum number of years the pledge of incremental revenues will be effective;
    3. A detailed description of each project that is the subject of the tax incentive agreement, including an estimate of the costs of construction or acquisition and development;
    4. Identification of the project footprint from which the state incremental revenues pledged by the Commonwealth are to be derived;
    5. The approved public infrastructure costs and, when applicable, approved signature project costs, approved financing costs, and approved costs relating to land preparation, demolition, and clearance that may be recovered;
    6. The minimum capital investment required, the date by which the minimum capital investment is expected to occur, and a provision stating that failure of the approved company to meet the minimum capital investment established by KRS 154.30-040 , 154.30-050 , or 154.30-060 on or before the activation date shall result in cancellation of the tax incentive agreement;
    7. Terms of default and remedies, provided that no remedy shall permit the withholding by any party to the tax incentive agreement of any incremental revenues if increment bonds are outstanding that are secured by a pledge of those incremental revenues;
    8. The termination date;
    9. A requirement that the agency, city, or county annually certify to the authority the use of incremental revenues for the payment of approved project costs within the development area;
    10. A requirement that the agency shall utilize the portion of incremental revenues pledged pursuant to a tax incentive agreement that exceeds, in a given year, the amounts needed to:
      1. Pay the current financing costs; and
      2. Maintain a fully funded reserve; to provide for the retirement or defeasance of all or a portion of the remaining financing costs related to approved public infrastructure costs, and approved signature project costs secured by the incremental revenues;
    11. A requirement that the agency, city, or county make periodic accountings to the authority;
    12. A requirement that the authority monitor and verify approved public infrastructure costs, financing costs and approved signature project costs and minimum capital investment; and
    13. For a signature project, the eligible refund amount or percentage for the sales tax as permitted under KRS 139.515 , and as determined by the authority pursuant to KRS 65.7075(6); and
    14. Any other provisions not inconsistent with this subchapter deemed necessary or appropriate by the parties to the tax incentive agreement.
  2. Any pledge of incremental revenues in a tax incentive agreement shall be superior to any other pledge of revenues for any other purpose and shall, from the activation date to the termination date, supersede any statute or ordinance regarding the application or use of incremental revenues. An ordinance in conflict with a tax incentive agreement shall not be adopted while any increment bonds secured by that pledge remain outstanding. Ordinances pledging increments on a subordinate basis to any existing pledges may be adopted.
  3. Any tax incentive agreement shall be made on the basis of automatic year-to-year renewals, with the option to discontinue upon sixty (60) days’ notice before the end of any annual termination date of the tax incentive agreement.

HISTORY: Repealed, reenact. and amend., Acts 2008, ch. 178, § 20, effective July 15, 2008; 2018 ch. 199, § 28, effective July 14, 2018.

Compiler’s Notes.

This section was formerly compiled as KRS 65.7079 .

Legislative Research Commission Note.

(7/15/2008). 2008 Ky. Acts ch. 178, sec. 14 established a new Subchapter 30 of Chapter 154 concerning tax increment financing projects and secs. 16 through 19 and 21 of that Act repealed, reenacted, and amended existing sections of KRS Chapter 65 as new sections of the new Subchapter 30 of KRS Chapter 154. Inquiry was made of the drafter as to the intent of those actions. The drafter explained that statutes dealing with both area development projects and tax increment financing projects were blended together in KRS Chapter 65 with no easy distinguishing elements, and the intent of creating Subchapter 30 of KRS Chapter 154 was to separate them appropriately. Therefore, the intent of secs. 16 through 19 and 21 was to move those sections contained in KRS Chapter 65 that relate to only tax increment financing projects into the new Subchapter 30 of KRS Chapter 154, with necessary conforming amendments to the language. The Reviser of Statutes inquired about the treatment of sec. 20 of that Act purporting to amend KRS 65.7079 , which appeared to the Reviser to require the same treatment as other statutes in that range moved into new Subchapter 30 of KRS Chapter 154 in secs. 16 through 19 and 21. The drafter confirmed that the intent was to treat that statute in the same manner as those statutes addressed in secs. 16 through 19 and 21. As such, the Reviser of Statutes has treated sec. 20 in codification as repealing and reenacting this statute as a new section of Subchapter 30 of KRS Chapter 154 to effectuate that intent.

154.30-080. Requirement that minimal capital investment be made prior to the release of incremental revenues — Escrow account — Cancellation if agency fails to meet minimum investment — Duties of authority to monitor agreements and track revenues.

    1. Prior to any incremental revenues being released by the Commonwealth for any project, the authority shall certify that the minimum capital investment has been made as required by the tax incentive agreement. (1) (a) Prior to any incremental revenues being released by the Commonwealth for any project, the authority shall certify that the minimum capital investment has been made as required by the tax incentive agreement.
    2. Incremental revenues received after the activation date but prior to certification of the minimum capital investment shall be retained by the Commonwealth until the minimum capital investment is certified by the authority. The incremental revenues shall be released to the agency upon certification. If the minimum capital investment is not certified within the time period established by the authority, the incremental revenues shall be forfeited to the Commonwealth.
    3. The tax incentive agreement shall be canceled and the approved agency shall not be eligible for incentives if the agency fails to meet the minimum capital investment established by KRS 154.30-040 , 154.30-050 , or 154.30-060 on the activation date.
  1. The authority shall monitor all tax incentive agreements and shall verify for each project expenditure identified as approved public infrastructure costs and where applicable, financing costs, approved signature project costs and expenses for land preparation, demolition and clearance.
  2. The authority and the department shall track the amount of incremental revenues released to each agency under each tax incentive agreement.

HISTORY: Repealed, reenact. and amend., Acts 2008, ch. 178, § 21, effective July 15, 2008; 2018 ch. 199, § 29, effective July 14, 2018.

Compiler’s Notes.

This section was formerly compiled as KRS 65.7081 .

154.30-090. Annual disbursement of tax incremental revenues.

    1. Any agency that enters into a tax incentive agreement for the release of incremental revenues shall, after each calendar year, in which a tax incentive agreement is in effect, notify the authority that incremental revenues are due, and in consultation with the authority, the agency shall determine the amount of the incremental revenues due from the Commonwealth. (1) (a) Any agency that enters into a tax incentive agreement for the release of incremental revenues shall, after each calendar year, in which a tax incentive agreement is in effect, notify the authority that incremental revenues are due, and in consultation with the authority, the agency shall determine the amount of the incremental revenues due from the Commonwealth.
    2. The agency shall present to the authority the total increment due from the Commonwealth. The authority shall review and verify the information submitted and shall certify the verified amount.
  1. Upon certification of the total incremental revenues due from the Commonwealth by the authority, the Department of Revenue shall transfer the incremental revenues to a tax increment financing account established and administered by the Finance and Administration Cabinet for payment of the Commonwealth’s portion of the incremental revenues. Prior to disbursement by the Finance and Administration Cabinet of the funds from the tax increment financing account, the authority shall notify the Finance and Administration Cabinet that the agency is in compliance with the terms of the tax incentive agreement. Upon notification, the Finance and Administration Cabinet shall release to the agency the Commonwealth’s portion of the total incremental revenues due under the tax incentive agreement.
  2. The Department of Revenue shall have no obligation to refund or otherwise return any of the incremental revenues to the taxpayer from whom the incremental revenues arose or are attributable. Further, no additional incremental revenues resulting from audit, amended returns, or other activity for any period shall be transferred to the tax increment financing account after the initial release to the agency of the Commonwealth’s increment for that period.

History. Repealed, reenact. and amend., Acts 2008, ch. 178, § 22, effective July 15, 2008.

SUBCHAPTER 31. The Kentucky Investment Act

154.31-010. Definitions for subchapter. [Effective until June 29, 2021]

As used in this subchapter:

  1. “Agreement” means an agreement entered into pursuant to KRS 154.31-030 between the authority and an approved company;
  2. “Alternative fuel production” means a Kentucky operation that primarily produces for sale alternative transportation fuels. The alternative fuel production may produce electricity as a by-product if the primary function of the operations remains the production and sale of alternative transportation fuels;
  3. “Alternative transportation fuels” has the same meaning as in KRS 152.715 ;
  4. “Approved company” means an eligible company that has received approval from the authority for a sales and use tax incentive under this subchapter;
  5. “Approved recovery amount” means the maximum sales and use tax incentive recoverable by an approved company as established in the agreement;
  6. “Authority” means the Kentucky Economic Development Finance Authority;
  7. “Biomass resources” has the same meaning as in KRS 152.715 ;
  8. “Carbon dioxide transmission pipeline” means the in-state portion of a pipeline, including appurtenant facilities, property rights, and easements, that is used exclusively for the purpose of transporting carbon dioxide to the point of sale, storage, or other carbon management applications;
  9. “Department” means the Department of Revenue;
  10. “Economic development project” means:
      1. The acquisition or construction of a new facility; or (a) 1. The acquisition or construction of a new facility; or
      2. The expansion or rehabilitation of an existing facility; or
    1. The installation and equipping of a facility;

      by an eligible company at a specific site in the Commonwealth to be used in an activity conducted by the approved company;

  11. “Electronic processing” means the use of technology having electronic, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities, now in existence or later developed to perform a service or technology activity;
    1. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or other legal entity that is primarily engaged in manufacturing; service or technology activities; agribusiness; headquarters operations; alternative fuel, gasification, energy-efficient alternative fuel or renewable energy production; carbon dioxide transmission pipelines; or in operating or developing a tourism attraction. (12) (a) “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or other legal entity that is primarily engaged in manufacturing; service or technology activities; agribusiness; headquarters operations; alternative fuel, gasification, energy-efficient alternative fuel or renewable energy production; carbon dioxide transmission pipelines; or in operating or developing a tourism attraction.
    2. “Eligible company” does not include any company whose primary activity is retail sales;
  12. “Eligible expenses” means the amount expended for:
    1. Building and construction materials permanently incorporated as an improvement to real property as part of an economic development project; or
    2. Equipment used for research and development or electronic processing at an economic development project;

      if the Kentucky sales and use tax imposed by KRS Chapter 139 is paid on the purchase of the materials or equipment at the time of purchase;

  13. “Energy-efficient alternative fuel production” means a Kentucky operation that produces energy-efficient alternative fuels for sale;
  14. “Energy-efficient alternative fuels” means homogeneous fuels that:
    1. Are produced from processes designed to densify feedstock coal, waste coal, or biomass resources; and
    2. Have an energy content that is greater than the feedstock coal, waste coal, or biomass resource;
    1. “Equipment” means tangible personal property which is subject to depreciation under Sections 167 and 168 of the Internal Revenue Code, including assets which are expensed under Section 179 of the Internal Revenue Code, and that is used in the operation of a business. (16) (a) “Equipment” means tangible personal property which is subject to depreciation under Sections 167 and 168 of the Internal Revenue Code, including assets which are expensed under Section 179 of the Internal Revenue Code, and that is used in the operation of a business.
    2. “Equipment” does not include any tangible personal property used to maintain, restore, mend, or repair machinery or equipment, consumable operating supplies, office supplies, or maintenance supplies;
  15. “Gasification process” means a process that converts any carbon-containing material into a synthesis gas composed primarily of carbon monoxide and hydrogen;
  16. “Gasification production” means a Kentucky operation that primarily produces for sale:
    1. Alternative transportation fuels;
    2. Synthetic natural gas;
    3. Chemicals;
    4. Chemical feedstocks; or
    5. Liquid fuels;

      from coal, waste coal, coal-processing waster, or biomass resources, through a gasification process. The gasification production may produce electricity as a by-product if the primary function of the operations remains the production and sale of alternative transportation fuels, synthetic natural gas, chemicals, chemical feedstocks, or liquid fuels;

  17. “Headquarters” means the principal office where the principal executives of the entity are located and from which other personnel, branches, affiliates, offices, or entities are controlled;
    1. “Manufacturing” means to make, assemble, process, produce, or perform any activity that changes the form or conditions of raw materials and other property, and shall include any ancillary activity to the manufacturing process, such as storage, warehousing, distribution, and related office facilities. (20) (a) “Manufacturing” means to make, assemble, process, produce, or perform any activity that changes the form or conditions of raw materials and other property, and shall include any ancillary activity to the manufacturing process, such as storage, warehousing, distribution, and related office facilities.
    2. “Manufacturing” does not include any activity involving the performance of work classified by the divisions, including successor divisions, of mining in accordance with the “North American Industry Classification System,” as revised by the United States Office of Management and Budget from time to time, or any successor publication;
  18. “Project term” means the time for which an agreement shall be in effect. The project term shall be established in the agreement and shall not exceed seven (7) years;
  19. “Renewable energy production” means a Kentucky operation that utilizes wind power, biomass resources, landfill methane gas, hydropower, solar power, or other similar renewable resources to generate electricity for sale to unrelated entities;
    1. “Research and development” means experimental or laboratory activity that has as its ultimate goal the development of new products, the improvement of existing products, the development of new uses for existing products, or the development or improvement of methods for producing products. (23) (a) “Research and development” means experimental or laboratory activity that has as its ultimate goal the development of new products, the improvement of existing products, the development of new uses for existing products, or the development or improvement of methods for producing products.
    2. “Research and development” does not include testing or inspection of materials or products for quality control purposes, efficiency surveys, management studies, consumer surveys or other market research, advertising or promotional activities, or research in connection with literary, historical, or similar projects;
  20. “Service or technology” means any nonretail activity using technology or providing a service, including but not limited to:
    1. Administration and processing activities;
    2. Research and development;
    3. Telephone or Internet sales or services;
    4. Distribution or fulfillment of orders;
    5. Data processing; and
    6. Similar activities;

      provided to customer or affiliate entities primarily outside the Commonwealth and designed to serve a multistate, national, or international market; and

  21. “Synthetic natural gas” has the same meaning as in KRS 152.715 .

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 20, effective June 26, 2009; 2018 ch. 199, § 30, effective July 14, 2018.

Compiler’s Notes.

Sections 167, 168 and 179 of the Internal Revenue Code referenced herein are codified as 26 USCS §§ 167, 168 and 179, respectively.

154.31-010. Definitions for subchapter. [Effective June 29, 2021]

As used in this subchapter:

  1. “Agreement” means an agreement entered into pursuant to KRS 154.31-030 between the authority and an approved company;
  2. “Alternative fuel production” has the same meaning as in Section 118 of this Act;
  3. “Approved company” means an eligible company that has received approval from the authority for a sales and use tax incentive under this subchapter;
  4. “Approved recovery amount” means the maximum sales and use tax incentive recoverable by an approved company as established in the agreement;
  5. “Authority” means the Kentucky Economic Development Finance Authority;
  6. “Carbon dioxide transmission pipeline” has the same meaning as in Section 118 of this Act;
  7. “Coal severing and processing” means activities resulting in the eligible company being subject to the tax imposed by KRS Chapter 143;
  8. “Department” means the Department of Revenue;
  9. “Economic development project” means:
      1. The acquisition or construction of a new facility; or (a) 1. The acquisition or construction of a new facility; or
      2. The expansion or rehabilitation of an existing facility; or
    1. The installation and equipping of a facility; by an eligible company at a specific site in the Commonwealth to be used in an activity conducted by the approved company;
  10. “Electronic processing” means the use of technology having electronic, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities, now in existence or later developed to perform a service or technology activity;
    1. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or other legal entity with a proposed economic development project that is primarily engaged in or planning to be engaged in one (1) or more of the following activities within the Commonwealth: (11) (a) “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or other legal entity with a proposed economic development project that is primarily engaged in or planning to be engaged in one (1) or more of the following activities within the Commonwealth:
      1. Manufacturing;
      2. Nonretail service or technology activities;
      3. Agribusiness;
      4. Headquarters operations;
      5. Alternative fuel, gasification, energy-efficient alternative fuel or renewable energy production;
      6. Carbon dioxide transmission pipelines;
      7. Coal severing and processing;
      8. Hospital operations; or
      9. In operating or developing a tourism attraction.
    2. “Eligible company” does not include any company whose primary activity to be conducted within the Commonwealth is forestry, fishing, the provision of utilities, construction, wholesale trade, retail trade, real estate, rental and leasing, educational services, food services, or public administration services;
  11. “Eligible expenses” means the amount expended for:
    1. Building and construction materials permanently incorporated as an improvement to real property as part of an economic development project; or
    2. Equipment used for research and development or electronic processing at an economic development project;

      if the Kentucky sales and use tax imposed by KRS Chapter 139 is paid on the purchase of the materials or equipment at the time of purchase;

  12. “Energy-efficient alternative fuel production” has the same meaning as in Section 118 of this Act;
    1. “Equipment” means tangible personal property which is subject to depreciation under Sections 167 and 168 of the Internal Revenue Code, including assets which are expensed under Section 179 of the Internal Revenue Code, and that is used in the operation of a business. (14) (a) “Equipment” means tangible personal property which is subject to depreciation under Sections 167 and 168 of the Internal Revenue Code, including assets which are expensed under Section 179 of the Internal Revenue Code, and that is used in the operation of a business.
    2. “Equipment” does not include any tangible personal property used to maintain, restore, mend, or repair machinery or equipment, consumable operating supplies, office supplies, or maintenance supplies;
  13. “Gasification process” has the same meaning as in Section 118 of this Act;
  14. “Headquarters” means the principal office where the principal executives of the entity are located and from which other personnel, branches, affiliates, offices, or entities are controlled;
  15. “Hospital” has the same meaning as in Section 118 of this Act;
  16. “Manufacturing” has the same meaning as in Section 118 of this Act;
  17. “Nonretail service and technology” has the same meaning as in Section 118 of this Act;
  18. “Project term” means the time for which an agreement shall be in effect. The project term shall be established in the agreement and shall not exceed seven (7) years;
  19. “Renewable energy production” has the same meaning as in Section 118 of this Act; and
    1. “Research and development” means experimental or laboratory activity that has as its ultimate goal the development of new products, the improvement of existing products, the development of new uses for existing products, or the development or improvement of methods for producing products. (22) (a) “Research and development” means experimental or laboratory activity that has as its ultimate goal the development of new products, the improvement of existing products, the development of new uses for existing products, or the development or improvement of methods for producing products.
    2. “Research and development” does not include testing or inspection of materials or products for quality control purposes, efficiency surveys, management studies, consumer surveys or other market research, advertising or promotional activities, or research in connection with literary, historical, or similar projects.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 20, effective June 26, 2009; 2018 ch. 199, § 30, effective July 14, 2018; 2021 ch. 185, § 117, effective June 29, 2021.

154.31-020. Annual incentive cap established — Requirements for qualification for incentives — Maximum incentives available to an approved company.

  1. The maximum amount of sales and use tax incentives that may be committed in each fiscal year by the authority shall be capped at twenty million dollars ($20,000,000) for building and construction materials, and five million dollars ($5,000,000) for equipment used for research and development, electronic processing, or flight simulation.
    1. To qualify for the sales and use tax incentives available under this subchapter, an eligible company shall make a minimum investment of at least five hundred thousand dollars ($500,000) in an economic development project, including the cost of land, but excluding the cost of labor. (2) (a) To qualify for the sales and use tax incentives available under this subchapter, an eligible company shall make a minimum investment of at least five hundred thousand dollars ($500,000) in an economic development project, including the cost of land, but excluding the cost of labor.
    2. To qualify for the sales and use tax incentive available under this subchapter for electronic processing equipment, in addition to the requirements of paragraph (a) of this subsection, the eligible company shall spend an aggregate amount of at least fifty thousand dollars ($50,000) on electronic processing equipment installed as part of the economic development project.
    1. The maximum sales and use tax incentive available to an approved company under this subchapter is the total amount of sales and use tax paid on purchases made on the following items, up to the approved recovery amount after approval by the authority: (3) (a) The maximum sales and use tax incentive available to an approved company under this subchapter is the total amount of sales and use tax paid on purchases made on the following items, up to the approved recovery amount after approval by the authority:
      1. Building and construction materials;
      2. Research and development equipment;
      3. Electronic processing equipment; and
      4. Flight simulation equipment.
    2. An approved company may qualify for a sales and use tax incentive in more than one (1) category listed in paragraph (a) of this subsection for the same economic development project. If the authority approves an eligible company to receive the sales and use tax incentives in more than one (1) category, the authority shall allocate the incentives to the appropriate cap established by subsection (1 ) of this section.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 21, effective June 26, 2009; 2018 ch. 199, § 31, effective July 14, 2018.

154.31-030. Application, approval, and monitoring process for sales and use tax incentive — Standards and criteria for approval — Execution of agreement — Annual report.

  1. The application, approval, and monitoring process under this subchapter shall be as follows:
    1. An eligible company with a proposed economic development project may submit an application to the authority. The application shall include the information required by subsection (3) of this section;
    2. Upon review of the application and any additional information submitted, the authority may, by resolution, approve an economic development project and authorize the negotiation and execution of an agreement pursuant to subsection (4) of this section. Approval granted pursuant to this subsection shall apply to a specific economic development project at a specific location within the Commonwealth;
    3. Upon approval, the authority shall notify the department that an approved company is eligible for a sales and use tax incentive under this subchapter and shall provide the department with the information necessary to monitor the use of incentives by the approved company. The authority shall notify the department if the agreement is extended or amended, or if the incentives are transferred, and shall provide the department with the information necessary to update its records; and
    4. The approved company shall be eligible to receive the sales and use tax incentives authorized by the agreement upon the earlier of the completion of the economic development project or expiration of the project term. The approved company shall apply to the department for the sales and use tax incentives as provided in KRS 139.535 , and shall, during the project term, submit all information required by the department as provided in KRS 139.535 .
  2. The authority may establish standards for the review of applications and the approval of eligible companies through the promulgation of administrative regulations in accordance with KRS Chapter 13A. In reviewing applications and establishing standards, the authority shall consider the creditworthiness of the eligible company, employment opportunities for Kentucky residents, wages to be paid, whether the eligible company is participating in other incentive programs pursuant to KRS Chapter 154 for the project, the likelihood that the project will be an economic success, and any other factors the authority determines to be relevant.
  3. The application submitted by an eligible company shall include but not be limited to the following:
    1. A description of the proposed economic development project;
    2. The anticipated minimum investment in the proposed economic development project;
    3. An estimate of the approved recovery amount that the company will seek;
    4. A timeline for completion of the proposed economic development project;
    5. Supporting documentation, as requested by the authority;
    6. Payment of any applicable application fee required by the authority; and
    7. Any other information requested by the authority.
    1. Upon approval of an eligible company, the authority may enter into an agreement with the approved company. The terms of the agreement shall be determined by negotiations between the authority and the approved company, and shall include but not be limited to the following provisions: (4) (a) Upon approval of an eligible company, the authority may enter into an agreement with the approved company. The terms of the agreement shall be determined by negotiations between the authority and the approved company, and shall include but not be limited to the following provisions:
      1. The project term;
      2. A description of the economic development project;
      3. The total approved recovery amount in each category for which the approved company is eligible;
      4. That the approved company shall maintain all records and documentation relating to eligible expenditures and the Kentucky sales and use tax paid, and shall provide those records and documentation to the authority or the department upon request;
      5. That the approved company shall execute information-sharing agreements prescribed by the department with contractors, vendors, and other related parties to verify the costs of and payment of sales and use tax on the tangible personal property eligible for the sales and use tax incentive under this subchapter;
      6. That the sales and use tax incentives shall not be assignable or transferable without written notice to the authority and approval of the authority; and
      7. Any other provisions not inconsistent with this subchapter.
    2. The project term established in the agreement may be extended by approval of the authority for good cause shown; however, the term shall not be extended beyond seven (7) years from the date of approval.
    3. An approved company may transfer or assign its designation as an approved company upon prior notification to the authority and approval of the authority in a manner prescribed by the authority.
  4. The contents of a company’s filings under this subchapter shall be subject to the Kentucky Open Records Act, KRS 61.870 to 61.884 .
  5. By November 1 of each year, the authority shall prepare an annual report and make it available on the Cabinet for Economic Development Website as required in KRS 154.12-2035 .

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 22, effective June 26, 2009; 2014, ch. 134, § 9, effective July 15, 2014; 2018 ch. 199, § 32, effective July 14, 2018.

SUBCHAPTER 32. The Kentucky Business Investment Program

154.32-010. Definitions for subchapter. [Effective until June 29, 2021]

  1. “Activation date” means the date established in the tax incentive agreement that is within two (2) years of final approval;
  2. “Advance disbursement” means the disbursement of incentives prior to the activation date;
  3. “Affiliate” means the following:
    1. Members of a family, including only brothers and sisters of the whole or half blood, spouse, ancestors, and lineal descendants of an individual;
    2. An individual, and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for that individual;
    3. An individual, and a limited liability company 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;
    4. Two (2) corporations which are members of the same controlled group, which includes and is limited to:
      1. One (1) or more chains of corporations connected through stock ownership with a common parent corporation if:
        1. Stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of each of the corporations, except the common parent corporation, is owned by one (1) or more of the other corporations; and
        2. The common parent corporation owns stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of at least one (1) of the other corporations, excluding, in computing the voting power or value, stock owned directly by the other corporations; or
      2. Two (2) or more corporations if five (5) or fewer persons who are individuals, estates, or trusts own stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of each corporation, taking into account the stock ownership of each person only to the extent the stock ownership is identical with respect to each corporation;
    5. A grantor and a fiduciary of any trust;
    6. A fiduciary of a trust and a fiduciary of another trust, if the same person is a grantor of both trusts;
    7. A fiduciary of a trust and a beneficiary of that trust;
    8. A fiduciary of a trust and a beneficiary of another trust, if the same person is a grantor of both trusts;
    9. A fiduciary of a trust and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for the trust or by or for a person who is a grantor of the trust;
    10. A fiduciary of a trust and a limited liability company more than fifty percent (50%) of the capital interest, or the interest in profits, of which is owned directly or indirectly, by or for the trust or by or for a person who is a grantor of the trust;
    11. A corporation, a partnership, or a limited partnership if the same persons own:
      1. More than fifty percent (50%) in value of the outstanding stock of the corporation; and
      2. More than fifty percent (50%) of the capital interest, or the profits interest, in the partnership or limited partnership;
    12. A corporation and a limited liability company if the same persons own:
      1. More than fifty percent (50%) in value of the outstanding stock of the corporation; and
      2. More than fifty percent (50%) of the capital interest or the profits in the limited liability company;
    13. A partnership or limited partnership and a limited liability company if the same persons own:
      1. More than fifty percent (50%) of the capital interest or profits in the partnership or limited partnership; and
      2. More than fifty percent (50%) of the capital interest or the profits in the limited liability company;
    14. An S corporation and another S corporation if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation; S corporation designation being the same as that designation under the Internal Revenue Code of 1986, as amended;
    15. An S corporation and a C corporation, if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation; S and C corporation designations being the same as those designations under the Internal Revenue Code of 1986, as amended; or
    16. Two (2) or more limited liability companies, if the same persons own more than fifty percent (50%) of the capital interest or are entitled to more than fifty percent (50%) of the capital profits in the limited liability companies;
  4. “Agribusiness” means the processing of raw agricultural products, including but not limited to timber and industrial hemp, or the performance of value-added functions with regard to raw agricultural products;
  5. “Alternative fuel production” means a Kentucky operation that primarily produces alternative transportation fuels for sale. The alternative fuel production may produce electricity as a by-product if the primary function of the operations remains the production and sale of alternative transportation fuels;
  6. “Alternative transportation fuels” has the same meaning as in KRS 152.715 ;
  7. “Approved company” means an eligible company that has received final approval to receive incentives under this subchapter;
  8. “Approved costs” means the amount of eligible costs approved by the authority at final approval;
  9. “Authority” means the Kentucky Economic Development Finance Authority established by KRS 154.20-010 ;
  10. “Biomass resources” has the same meaning as in KRS 152.715 ;
  11. “Capital lease” means a lease classified as a capital lease by the Statement of Financial Accounting Standards No. 13, Accounting for Leases, issued by the Financial Accounting Standards Board, November 1976, as amended;
  12. “Carbon dioxide transmission pipeline” means the in-state portion of a pipeline, including appurtenant facilities, property rights, and easements, that is used exclusively for the purpose of transporting carbon dioxide to the point of sale, storage, or other carbon management applications;
  13. “Commonwealth” means the Commonwealth of Kentucky;
  14. “Confirmed approved costs” means:
    1. For owned economic development projects, the documented eligible costs incurred on or before the activation date; or
    2. For leased economic development projects:
      1. The documented eligible costs incurred on or before the activation date; and
      2. Estimated rent to be incurred by the approved company throughout the term of the tax incentive agreement.

        For both owned and leased economic development projects, “confirmed approved costs” may be less than approved costs, but shall not be more than approved costs;

  15. “Department” means the Department of Revenue;
  16. “Economic development project” means:
    1. The acquisition, leasing, or construction of a new facility;
    2. The acquisition, leasing, rehabilitation, or expansion of an existing facility; or
    3. The installation and equipping of a facility; by an eligible company. “Economic development project” does not include any economic development project that will result in the replacement of facilities existing in the Commonwealth, except as provided in KRS 154.32-060 ;
    1. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity with a proposed economic development project that is engaged in or is planning to be engaged in one (1) or more of the following activities within the Commonwealth: (17) (a) “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity with a proposed economic development project that is engaged in or is planning to be engaged in one (1) or more of the following activities within the Commonwealth:
      1. Manufacturing;
      2. Agribusiness;
      3. Nonretail service or technology;
      4. Headquarters operations, regardless of the underlying business activity of the company;
      5. Alternative fuel, gasification, energy-efficient alternative fuel, or renewable energy production; or
      6. Carbon dioxide transmission pipeline.
    2. “Eligible company” does not include companies where the primary activity to be conducted within the Commonwealth is forestry, fishing, mining, coal or mineral processing, the provision of utilities, construction, wholesale trade, retail trade, real estate, rental and leasing, educational services, accommodation and food services, or public administration services;
  17. “Eligible costs” means:
    1. For owned economic development projects:
      1. Start-up costs;
      2. Nonrecurring obligations incurred for labor and nonrecurring payments to contractors, subcontractors, builders, and materialmen in connection with the economic development project;
      3. The cost of acquiring land or rights in land and any cost incidental thereto, including recording fees;
      4. The cost of contract bonds and of insurance of all kinds that may be required or necessary for completion of an economic development project which is not paid by a contractor or otherwise provided for;
      5. All costs of architectural and engineering services, including test borings, surveys, estimated plans and specifications, preliminary investigations, and supervision of construction, as well as for the performance of all the duties required for construction of the economic development project;
      6. All costs which are required to be paid under the terms of any contract for the economic development project;
      7. All costs incurred for construction activities, including site tests and inspections; subsurface site work; excavation; removal of structures, roadways, cemeteries, and other surface obstructions; filling, grading, and providing drainage and storm water retention; installation of utilities such as water, sewer, sewage treatment, gas, electric, communications, and similar facilities; off-site construction of utility extensions to the boundaries of the real estate; construction and installation of railroad spurs as needed to connect the economic development project to existing railways; or similar activities as the authority may determine necessary for construction of the economic development project; and
      8. All other costs of a nature comparable to those described above; and
    2. For leased economic development projects:
      1. Start-up costs;
      2. Building/leasehold improvements; and
      3. Fifty percent (50%) of the estimated annual rent for each year of the tax incentive agreement.

        Notwithstanding any other provision of this subsection, for economic development projects that are not in enhanced incentive counties, the cost of equipment eligible for recovery as an eligible cost shall not exceed twenty thousand dollars ($20,000) for each new full-time job created as of the activation date;

  18. “Employee benefits” means payments by an approved company for its full-time employees for health insurance, life insurance, dental insurance, vision insurance, defined benefits, 401(k), or similar plans;
  19. “Energy-efficient alternative fuel production” means a Kentucky operation that produces for sale energy-efficient alternative fuels;
  20. “Energy-efficient alternative fuels” means homogeneous fuels that:
    1. Are produced from processes designed to densify feedstock coal, waste coal, or biomass resources; and
    2. Have an energy content that is greater than the feedstock coal, waste coal, or biomass resource;
  21. “Enhanced incentive counties” means counties certified by the authority pursuant to KRS 154.32-050 ;
  22. “Final approval” means the action taken by the authority authorizing the eligible company to receive incentives under this subchapter;
  23. “Full-time job” means a job held by a person who:
    1. Is a Kentucky resident subject to the Kentucky individual income tax imposed by KRS 141.020 ; and
    2. Is required to work a minimum of thirty-five (35) hours per week;
  24. “Gasification process” means a process that converts any carbon-containing material into a synthesis gas composed primarily of carbon monoxide and hydrogen;
  25. “Gasification production” means a Kentucky operation that primarily produces for sale:
    1. Alternative transportation fuels;
    2. Synthetic natural gas;
    3. Chemicals;
    4. Chemical feedstocks; or
    5. Liquid fuels;

      from coal, waste coal, coal-processing waste, or biomass resources, through a gasification process. The gasification production may produce electricity as a by-product if the primary function of the operations remains the production and sale of alternative transportation fuels, synthetic natural gas, chemicals, chemical feedstocks, or liquid fuels;

  26. “Headquarters” means the principal office where the principal executives of the entity are located and from which other personnel, branches, affiliates, offices, or entities are controlled;
  27. “Incentives” means the incentives available under this subchapter, as listed in KRS 154.32-020 (3);
  28. “Job target” means the annual average number of new full-time jobs that the approved company commits to create and maintain at the economic development project, which shall not be less than ten (10) new full-time jobs;
  29. “Kentucky gross receipts” has the same meaning as in KRS 141.0401 ;
  30. “Kentucky gross profits” has the same meaning as in KRS 141.0401 ;
  31. “Lease agreement” means an agreement between an approved company and an unrelated entity conveying the right to use a facility, the terms of which reflect an arms’ length transaction. “Lease agreement” does not include a capital lease;
  32. “Leased project” means an economic development project site occupied by an approved company pursuant to a lease agreement;
  33. “Loan agreement” means the agreement between the authority and a preliminarily approved company establishing the terms and conditions of an advance disbursement;
  34. “Manufacturing” means any activity involving the processing, assembling, or production of any property, including the processing resulting in a change in the conditions of the property and any activity related to the processing, assembling, or production of property, together with the storage, warehousing, distribution, and related office facilities;
  35. “Wage target” means the average total hourly compensation amount, including the minimum wage and employee benefits, that the approved company commits to meet for all new full-time jobs created and maintained as a result of the economic development project, which shall not be less than:
    1. One hundred twenty-five percent (125%) of the federal minimum wage in enhanced incentive counties; or
    2. One hundred fifty percent (150%) of the federal minimum wage in all other counties;
    1. “Nonretail service or technology” means any activity where service or technology is provided predominantly outside the Commonwealth and designed to serve a multistate, national, or international market. (37) (a) “Nonretail service or technology” means any activity where service or technology is provided predominantly outside the Commonwealth and designed to serve a multistate, national, or international market.
    2. “Nonretail service or technology” includes but is not limited to call centers, centralized administrative or processing centers, telephone or Internet sales order or processing centers, distribution or fulfillment centers, data processing centers, research and development facilities, and other similar activities;
  36. “Owned project” means an economic development project owned in fee simple by the approved company or an affiliate, or possessed by the approved company or an affiliate pursuant to a capital lease;
  37. “Preliminary approval” means the action taken by the authority preliminarily approving an eligible company for incentives under this subchapter;
  38. “Renewable energy production” means a Kentucky operation that utilizes wind power, biomass resources, landfill methane gas, hydropower, solar power, or other similar renewable resources to generate electricity for sale to unrelated entities;
  39. “Rent” means the actual annual rent or fee paid by an approved company under a lease agreement;
  40. “Start-up costs” means nonrecurring costs incurred to furnish and equip a facility for an economic development project, including costs incurred for:
    1. Computers, furnishings, office equipment, manufacturing equipment, and fixtures;
    2. The relocation of out-of-state equipment; and
    3. Cost of fixed telecommunications equipment; as certified to the authority in accordance with KRS 154.32-030 ;
  41. “Synthetic natural gas” means the same thing as in KRS 152.715 ;
  42. “Tax incentive agreement” means the agreement entered into pursuant to KRS 154.32-040 between the authority and an approved company;
  43. “Term” means the period of time for which a tax incentive agreement may be in effect, which shall not exceed fifteen (15) years for an economic development project located in an enhanced incentive county, or ten (10) years for an economic development project not located in any other county; and
  44. “Wage” means the per hour earnings of a full-time employee, including wages, tips, overtime, bonuses, and commissions, as reflected on the employee’s federal form W-2 wage and tax statement, but excludes employee benefits.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 9, effective June 26, 2009; 2013, ch. 134, § 16, effective June 25, 2013; 2018 ch. 199, § 33, effective July 14, 2018.

Legislative Research Commission Notes.

(4/27/2018). KRS 154.48-010 was repealed in 2018 Ky. Acts chs. 171, 199, and 207, but a conforming amendment was not made to this statute to address the reference it contains to KRS 154.48-010 . The Reviser of Statutes has determined that making such a conforming change during the 2018 codification exceeds the permissible correction of manifest clerical or typographical errors under KRS 7.136(1)(h). Therefore, the reference to KRS 154.48-010 remains unchanged and would have to be changed pursuant to future legislative action.

154.32-010. Definitions for subchapter. [Effective June 29, 2021]

  1. “Activation date” means the date established in the tax incentive agreement that is within two (2) years of final approval;
  2. “Affiliate” means the following:
    1. Members of a family, including only brothers and sisters of the whole or half blood, spouse, ancestors, and lineal descendants of an individual;
    2. An individual, and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for that individual;
    3. An individual, and a limited liability company 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;
    4. Two (2) corporations which are members of the same controlled group, which includes and is limited to:
      1. One (1) or more chains of corporations connected through stock ownership with a common parent corporation if:
        1. Stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of each of the corporations, except the common parent corporation, is owned by one (1) or more of the other corporations; and
        2. The common parent corporation owns stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of at least one (1) of the other corporations, excluding, in computing the voting power or value, stock owned directly by the other corporations; or
      2. Two (2) or more corporations if five (5) or fewer persons who are individuals, estates, or trusts own stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all classes of stock of each corporation, taking into account the stock ownership of each person only to the extent the stock ownership is identical with respect to each corporation;
    5. A grantor and a fiduciary of any trust;
    6. A fiduciary of a trust and a fiduciary of another trust, if the same person is a grantor of both trusts;
    7. A fiduciary of a trust and a beneficiary of that trust;
    8. A fiduciary of a trust and a beneficiary of another trust, if the same person is a grantor of both trusts;
    9. A fiduciary of a trust and a corporation more than fifty percent (50%) in value of the outstanding stock of which is owned, directly or indirectly, by or for the trust or by or for a person who is a grantor of the trust;
    10. A fiduciary of a trust and a limited liability company more than fifty percent (50%) of the capital interest, or the interest in profits, of which is owned directly or indirectly, by or for the trust or by or for a person who is a grantor of the trust;
    11. A corporation, a partnership, or a limited partnership if the same persons own:
      1. More than fifty percent (50%) in value of the outstanding stock of the corporation; and
      2. More than fifty percent (50%) of the capital interest, or the profits interest, in the partnership or limited partnership;
    12. A corporation and a limited liability company if the same persons own:
      1. More than fifty percent (50%) in value of the outstanding stock of the corporation; and
      2. More than fifty percent (50%) of the capital interest or the profits in the limited liability company;
    13. A partnership or limited partnership and a limited liability company if the same persons own:
      1. More than fifty percent (50%) of the capital interest or profits in the partnership or limited partnership; and
      2. More than fifty percent (50%) of the capital interest or the profits in the limited liability company;
    14. An S corporation and another S corporation if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation; S corporation designation being the same as that designation under the Internal Revenue Code of 1986, as amended;
    15. An S corporation and a C corporation, if the same persons own more than fifty percent (50%) in value of the outstanding stock of each corporation; S and C corporation designations being the same as those designations under the Internal Revenue Code of 1986, as amended; or
    16. Two (2) or more limited liability companies, if the same persons own more than fifty percent (50%) of the capital interest or are entitled to more than fifty percent (50%) of the capital profits in the limited liability companies;
  3. “Agribusiness” means the processing of raw agricultural products, including but not limited to timber and industrial hemp, or the performance of value-added functions with regard to raw agricultural products;
  4. “Alternative fuel production” means a Kentucky operation that primarily produces alternative transportation fuels for sale. The alternative fuel production may produce electricity as a by-product if the primary function of the operations remains the production and sale of alternative transportation fuels;
  5. “Alternative transportation fuels” has the same meaning as in KRS 152.715 ;
  6. “Approved company” means an eligible company that has received final approval to receive incentives under this subchapter;
  7. “Approved costs” means the amount of eligible costs approved by the authority at final approval;
  8. “Authority” means the Kentucky Economic Development Finance Authority established by KRS 154.20-010 ;
  9. “Biomass resources” has the same meaning as in KRS 152.715 ;
  10. “Capital lease” means a lease classified as a capital lease by the Statement of Financial Accounting Standards No. 13, Accounting for Leases, issued by the Financial Accounting Standards Board, November 1976, as amended;
  11. “Carbon dioxide transmission pipeline” means the in-state portion of a pipeline, including appurtenant facilities, property rights, and easements, that is used exclusively for the purpose of transporting carbon dioxide to the point of sale, storage, or other carbon management applications;
  12. “Coal severing and processing” means activities resulting in the eligible company being subject to the tax imposed by KRS Chapter 143;
  13. “Commonwealth” means the Commonwealth of Kentucky;
  14. “Confirmed approved costs” means:
    1. For owned economic development projects, the documented eligible costs incurred on or before the activation date; or
    2. For leased economic development projects:
      1. The documented eligible costs incurred on or before the activation date; and
      2. Estimated rent to be incurred by the approved company throughout the term of the tax incentive agreement.

        For both owned and leased economic development projects, “confirmed approved costs” may be less than approved costs, but shall not be more than approved costs;

  15. “Department” means the Department of Revenue;
  16. “Economic development project” means:
    1. The acquisition, leasing, or construction of a new facility;
    2. The acquisition, leasing, rehabilitation, or expansion of an existing facility; or
    3. The installation and equipping of a facility; by an eligible company. “Economic development project” does not include any economic development project that will result in the replacement of facilities existing in the Commonwealth, except as provided in KRS 154.32-060 ;
    1. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity with a proposed economic development project that is engaged in or is planning to be engaged in one (1) or more of the following activities within the Commonwealth: (17) (a) “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity with a proposed economic development project that is engaged in or is planning to be engaged in one (1) or more of the following activities within the Commonwealth:
      1. Manufacturing;
      2. Agribusiness;
      3. Nonretail service or technology;
      4. Headquarters operations, regardless of the underlying business activity of the company;
      5. Alternative fuel, gasification, energy-efficient alternative fuel, or renewable energy production;
      6. Carbon dioxide transmission pipeline;
      7. Coal severing and processing; or
      8. Hospital operations.
    2. “Eligible company” does not include companies where the primary activity to be conducted within the Commonwealth is forestry, fishing, the provision of utilities, construction, wholesale trade, retail trade, real estate, rental and leasing, educational services, accommodation and food services, or public administration services;
  17. “Eligible costs” means:
    1. For owned economic development projects:
      1. Start-up costs;
      2. Nonrecurring obligations incurred for labor and nonrecurring payments to contractors, subcontractors, builders, and materialmen in connection with the economic development project;
      3. The cost of acquiring land or rights in land and any cost incidental thereto, including recording fees;
      4. The cost of contract bonds and of insurance of all kinds that may be required or necessary for completion of an economic development project which is not paid by a contractor or otherwise provided for;
      5. All costs of architectural and engineering services, including test borings, surveys, estimated plans and specifications, preliminary investigations, and supervision of construction, as well as for the performance of all the duties required for construction of the economic development project;
      6. All costs which are required to be paid under the terms of any contract for the economic development project;
      7. All costs incurred for construction activities, including site tests and inspections; subsurface site work; excavation; removal of structures, roadways, cemeteries, and other surface obstructions; filling, grading, and providing drainage and storm water retention; installation of utilities such as water, sewer, sewage treatment, gas, electric, communications, and similar facilities; off-site construction of utility extensions to the boundaries of the real estate; construction and installation of railroad spurs as needed to connect the economic development project to existing railways; or similar activities as the authority may determine necessary for construction of the economic development project; and
      8. All other costs of a nature comparable to those described above; and
    2. For leased economic development projects:
      1. Start-up costs;
      2. Building/leasehold improvements; and
      3. Fifty percent (50%) of the estimated annual rent for each year of the tax incentive agreement.

        Notwithstanding any other provision of this subsection, for economic development projects that are not in enhanced incentive counties, the cost of equipment eligible for recovery as an eligible cost shall not exceed twenty thousand dollars ($20,000) for each new full-time job created as of the activation date;

  18. “Employee benefits” means payments by an approved company for its full-time employees for health insurance, life insurance, dental insurance, vision insurance, defined benefits, 401(k), or similar plans;
  19. “Energy-efficient alternative fuel production” means a Kentucky operation that produces for sale energy-efficient alternative fuels;
  20. “Energy-efficient alternative fuels” means homogeneous fuels that:
    1. Are produced from processes designed to densify feedstock coal, waste coal, or biomass resources; and
    2. Have an energy content that is greater than the feedstock coal, waste coal, or biomass resource;
  21. “Enhanced incentive counties” means counties certified by the authority pursuant to KRS 154.32-050 ;
  22. “Final approval” means the action taken by the authority authorizing the eligible company to receive incentives under this subchapter;
    1. “Full-time job” means a job held by a person who: (24) (a) “Full-time job” means a job held by a person who:
      1. Is required to work a minimum of thirty-five (35) hours per week; and
        1. Is subject to the Kentucky individual income tax imposed by KRS 141.020 ; or 2. a. Is subject to the Kentucky individual income tax imposed by KRS 141.020 ; or
        2. Works remotely away from the economic development project if the job meets all of the following conditions:
          1. Is held by a Kentucky resident;
          2. Was created as a result of the economic development project; and
          3. The payroll of this job is expensed to the economic development project;
    2. “Full-time job” does not include a job held by a resident of any state with a reciprocal agreement between the Commonwealth and the other state as described in KRS 141.070 ;
  23. “Gasification process” means a process that converts any carbon-containing material into a synthesis gas composed primarily of carbon monoxide and hydrogen;
  24. “Gasification production” means a Kentucky operation that primarily produces for sale:
    1. Alternative transportation fuels;
    2. Synthetic natural gas;
    3. Chemicals;
    4. Chemical feedstocks; or
    5. Liquid fuels;

      from coal, waste coal, coal-processing waste, or biomass resources, through a gasification process. The gasification production may produce electricity as a by- product if the primary function of the operations remains the production and sale of alternative transportation fuels, synthetic natural gas, chemicals, chemical feedstocks, or liquid fuels;

  25. “Headquarters” means the principal office where the principal executives of the entity are located and from which other personnel, branches, affiliates, offices, or entities are controlled;
  26. “Hospital” means a facility licensed by the Cabinet for Health and Family Services under KRS Chapter 216B for the operation of a hospital and the basic services provided by a hospital;
  27. “Incentives” means the incentives available under this subchapter, as listed in KRS 154.32-020 (3);
  28. “Job target” means the annual average number of new full-time jobs that the approved company commits to create and maintain at the economic development project, which shall not be less than ten (10) new full-time jobs;
  29. “Kentucky gross receipts” has the same meaning as in KRS 141.0401 ;
  30. “Kentucky gross profits” has the same meaning as in KRS 141.0401 ;
  31. “Lease agreement” means an agreement between an approved company and an unrelated entity conveying the right to use a facility, the terms of which reflect an arms’ length transaction. “Lease agreement” does not include a capital lease;
  32. “Leased project” means an economic development project site occupied by an approved company pursuant to a lease agreement;
  33. “Manufacturing” means any activity involving:
    1. Processing, assembling, or production of any property, including the processing resulting in a change in the conditions of the property and any activity related to the processing, assembling, or production of property, together with the storage, warehousing, distribution, and related office facilities; or
    2. Production of vital medications, personal protective equipment, or equipment necessary to produce personal protective equipment;
    1. “Nonretail service or technology” means any activity where service or technology is provided predominantly outside the Commonwealth and designed to serve a multistate, national, or international market. (36) (a) “Nonretail service or technology” means any activity where service or technology is provided predominantly outside the Commonwealth and designed to serve a multistate, national, or international market.
    2. “Nonretail service or technology” includes but is not limited to call centers, centralized administrative or processing centers, telephone or Internet sales order or processing centers, distribution or fulfillment centers, data processing centers, research and development facilities, and other similar activities;
  34. “Owned project” means an economic development project owned in fee simple by the approved company or an affiliate, or possessed by the approved company or an affiliate pursuant to a capital lease;
  35. “Personal protective equipment” means protective clothing, helmets, gloves, face shields, goggles, face masks, respirators, and other equipment designed to protect the user from injury or the spread of infection or illness;
  36. “Preliminary approval” means the action taken by the authority preliminarily approving an eligible company for incentives under this subchapter;
  37. “Renewable energy production” means a Kentucky operation that utilizes wind power, biomass resources, landfill methane gas, hydropower, solar power, or other similar renewable resources to generate electricity for sale to unrelated entities;
  38. “Rent” means the actual annual rent or fee paid by an approved company under a lease agreement;
  39. “Start-up costs” means nonrecurring costs incurred to furnish and equip a facility for an economic development project, including costs incurred for:
    1. Computers, furnishings, office equipment, manufacturing equipment, and fixtures;
    2. The relocation of out-of-state equipment; and
    3. Cost of fixed telecommunications equipment; as certified to the authority in accordance with KRS 154.32-030 ;
  40. “Synthetic natural gas” means the same thing as in KRS 152.715 ;
  41. “Tax incentive agreement” means the agreement entered into pursuant to KRS 154.32-040 between the authority and an approved company;
  42. “Term” means the period of time for which a tax incentive agreement may be in effect, which shall not exceed fifteen (15) years for an economic development project located in an enhanced incentive county, or ten (10) years for an economic development project not located in any other county;
  43. “Vital medications” means any drug or biologic used to prevent or treat a serious life-threatening disease or medical condition for which there is no other available source with sufficient supply of that drug or biologic or alternative drug or biologic;
  44. “Wage” means the per hour earnings of a full-time employee, including wages, tips, overtime, bonuses, and commissions, as reflected on the employee’s federal form W-2 wage and tax statement, but excludes employee benefits; and
  45. “Wage target” means the average total hourly compensation amount, including the minimum wage and employee benefits, that the approved company commits to meet for all new full-time jobs created and maintained as a result of the economic development project, which shall not be less than:
    1. One hundred twenty-five percent (125%) of the federal minimum wage in enhanced incentive counties; or
    2. One hundred fifty percent (150%) of the federal minimum wage in all other counties.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 9, effective June 26, 2009; 2013, ch. 134, § 16, effective June 25, 2013; 2018 ch. 199, § 33, effective July 14, 2018; 2021 ch. 185, § 118, effective June 29, 2021.

154.32-020. Incentives to induce location of economic development projects in the Commonwealth — Purposes — Requirements — Summary of incentives available — Legislative findings. [Effective until June 29, 2021]

  1. The purposes of this subchapter are:
    1. To provide incentives for eligible companies and to encourage the location or expansion of manufacturing facilities, agribusiness operations, nonretail service or technology facilities, headquarters operations, alternative fuel production facilities, gasification production facilities, energy-efficient alternative fuel production facilities, renewable energy production facilities, and carbon dioxide transmission pipelines in the Commonwealth to advance the public purposes of:
      1. Creation of new jobs that, but for the incentives offered by the authority, would not exist within the Commonwealth;
      2. Creation of new sources of tax revenues for the support of public services provided by the Commonwealth; and
      3. Improvement in the quality of life for Kentucky citizens through the creation of sustainable jobs with higher salaries; and
    2. To provide enhanced incentives for companies that locate in enhanced incentive counties in recognition of the depressed economic conditions in those counties and the increased need for the growth and development caused by the depressed economic conditions.
  2. To qualify for the incentives provided by subsection (3) of this section, an approved company shall:
    1. Incur eligible costs of at least one hundred thousand dollars ($100,000);
    2. Create at least ten (10) new full-time jobs and maintain an annual average number of at least ten (10) new full-time jobs; and
      1. Pay at least ninety percent (90%) of all new full-time employees whose jobs were created as a result of the economic development project a minimum wage of at least one hundred twenty-five percent (125%) of the federal minimum wage in enhanced incentive counties, and one hundred fifty percent (150%) of the federal minimum wage in other counties throughout the term of the economic development project; and (c) 1. Pay at least ninety percent (90%) of all new full-time employees whose jobs were created as a result of the economic development project a minimum wage of at least one hundred twenty-five percent (125%) of the federal minimum wage in enhanced incentive counties, and one hundred fifty percent (150%) of the federal minimum wage in other counties throughout the term of the economic development project; and
      2. Provide employee benefits for all new full-time jobs equal to at least fifteen percent (15%) of the minimum wage requirement established by subparagraph 1. of this paragraph. If the eligible company does not provide employee benefits equal to at least fifteen percent (15%) of the minimum wage requirement established by subparagraph 1. of this paragraph, the eligible company may still qualify for incentives if it provides the full-time employees hired as a result of the economic development project total hourly compensation equal to or greater than one hundred fifteen percent (115%) of the minimum wage requirement established in subparagraph 1. of this paragraph through increased hourly wages combined with employee benefits.
  3. The incentives available under this subchapter are as follows:
    1. Tax credits of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040 and the limited liability entity tax imposed under KRS 141.040 1 on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the economic development project, as set forth in KRS 141.415 and 154.32-070 ;
    2. Authorization for the approved company to impose a wage assessment against the gross wages of each new employee subject to the Kentucky income tax as provided in KRS 154.32-090 ; and
    3. Notwithstanding any provision of law to the contrary, for any economic development project with an eligible investment of more than two hundred million dollars ($200,000,000), the authority may authorize approval to the economic development project based upon terms and incentives applicable to economic development project locating in an enhanced incentive county.
  4. The General Assembly hereby finds and declares that the authority granted in this subchapter and the purposes accomplished hereby are proper governmental and public purposes for which public moneys may be expended, and that the inducement of the location of economic development projects within the Commonwealth is of paramount importance to the economic well-being of the Commonwealth.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 10, effective June 26, 2009; 2018 ch. 199, § 34, effective July 14, 2018; 2019 ch. 172, § 3, effective March 26, 2019.

154.32-020. Incentives to induce location of economic development projects in the Commonwealth — Purposes — Requirements — Summary of incentives available — Legislative findings. [Effective June 29, 2021]

  1. The purposes of this subchapter are:
    1. To provide incentives for eligible companies and to encourage the location or expansion of manufacturing facilities, agribusiness operations, nonretail service or technology facilities, headquarters operations, alternative fuel production facilities, gasification production facilities, energy-efficient alternative fuel production facilities, renewable energy production facilities, carbon dioxide transmission pipelines, coal severing and processing, and hospital operations in the Commonwealth to advance the public purposes of:
      1. Creation of new jobs that, but for the incentives offered by the authority, would not exist within the Commonwealth;
      2. Creation of new sources of tax revenues for the support of public services provided by the Commonwealth;
      3. Improvement in the quality of life for Kentucky citizens through the creation of sustainable jobs with higher salaries; and
      4. Providing an economic stimulus to bolster in-state production of vital medications and personal protective equipment; and
    2. To provide enhanced incentives for companies that locate in enhanced incentive counties in recognition of the depressed economic conditions in those counties and the increased need for the growth and development caused by the depressed economic conditions.
  2. To qualify for the incentives provided by subsection (3) of this section, an approved company shall:
    1. Incur eligible costs of at least one hundred thousand dollars ($100,000);
    2. Create at least ten (10) new full-time jobs and maintain an annual average number of at least ten (10) new full-time jobs; and
      1. Pay at least ninety percent (90%) of all new full-time employees whose jobs were created as a result of the economic development project a minimum wage of at least one hundred twenty-five percent (125%) of the federal minimum wage in enhanced incentive counties, and one hundred fifty percent (150%) of the federal minimum wage in other counties throughout the term of the economic development project; and (c) 1. Pay at least ninety percent (90%) of all new full-time employees whose jobs were created as a result of the economic development project a minimum wage of at least one hundred twenty-five percent (125%) of the federal minimum wage in enhanced incentive counties, and one hundred fifty percent (150%) of the federal minimum wage in other counties throughout the term of the economic development project; and
      2. Provide employee benefits for all new full-time jobs equal to at least fifteen percent (15%) of the minimum wage requirement established by subparagraph 1. of this paragraph. If the eligible company does not provide employee benefits equal to at least fifteen percent (15%) of the minimum wage requirement established by subparagraph 1. of this paragraph, the eligible company may still qualify for incentives if it provides the full-time employees hired as a result of the economic development project total hourly compensation equal to or greater than one hundred fifteen percent (115%) of the minimum wage requirement established in subparagraph 1. of this paragraph through increased hourly wages combined with employee benefits, or
    3. Produce vital medications, personal protective equipment, or equipment necessary to produce personal protective equipment.
  3. The incentives available under this subchapter are as follows:
    1. Tax credits of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040 and the limited liability entity tax imposed under KRS 141.040 1 on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the economic development project, as set forth in KRS 141.415 and 154.32-070 ;
    2. Authorization for the approved company to impose a wage assessment against the gross wages of each new employee subject to the Kentucky income tax as provided in KRS 154.32-090 ; and
    3. Notwithstanding any provision of law to the contrary, for any economic development project with an eligible investment of more than two hundred million dollars ($200,000,000), the authority may authorize approval to the economic development project based upon terms and incentives applicable to economic development project locating in an enhanced incentive county.
  4. The General Assembly hereby finds and declares that the authority granted in this subchapter and the purposes accomplished hereby are proper governmental and public purposes for which public moneys may be expended, and that the inducement of the location of economic development projects within the Commonwealth is of paramount importance to the economic well-being of the Commonwealth.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 10, effective June 26, 2009; 2018 ch. 199, § 34, effective July 14, 2018; 2019 ch. 172, § 3, effective March 26, 2019; 2021 ch. 185, § 119, effective June 29, 2021.

154.32-030. Application, approval, and review process — Memorandum of agreement — Preliminary and final approval — Tax incentive agreement — Standards for approval — Partial satisfaction of eligibility requirements.

  1. The application, approval, and review process under this subchapter shall be as follows:
    1. An eligible company with a proposed economic development project may submit an application to the authority. The application shall include the information required by subsection (3) of this section;
    2. Upon review of the application and any additional information submitted, the authority may, by resolution, give preliminary approval to an eligible company and authorize the negotiation and execution of a memorandum of agreement. The memorandum of agreement shall establish a preliminary job target, minimum wage target, including employee benefits, and maximum total approved cost for the economic development project, and shall only allow the recovery of eligible costs incurred after preliminary approval. Upon preliminary approval, the preliminarily approved company may undertake the project in accordance with the memorandum of agreement, and may begin to hire employees that may be counted toward the minimum full-time job requirements established by the memorandum of agreement;
    3. After preliminary approval but before final approval, the authority shall post the preliminarily approved company’s name, the location of the economic development project, and the incentives that have been preliminarily approved on the Cabinet for Economic Development’s Web site;
    4. The preliminarily approved company shall submit any documentation required by the authority upon request of the authority;
    5. To obtain final approval, the preliminarily approved company shall submit:
      1. Documentation required by the authority to confirm that the requirements established by the memorandum of agreement have been met; and
      2. Documentation of official action taken by a local governmental entity detailing the manner and level of local contribution, if applicable. Upon review and confirmation of the documentation, the authority may, by resolution, give final approval to the preliminarily approved company, and authorize the execution of a tax incentive agreement between the authority and the approved company pursuant to KRS 154.32-040 . The tax incentive agreement shall establish an activation date, which shall be within two (2) years of final approval;
      1. On or before the activation date, the approved company shall notify the authority of its intention to activate the tax incentive agreement. The approved company shall submit: (f) 1. On or before the activation date, the approved company shall notify the authority of its intention to activate the tax incentive agreement. The approved company shall submit:
        1. Documentation that it has met the minimum full-time job, minimum investment, and minimum wage and employee benefits requirements established by KRS 154.32-020 as of the date of activation; and
        2. The confirmed approved costs incurred as of the date of activation, which shall be the total eligible costs that may be recovered by the approved company.
      2. If the approved company fails to meet any of the minimum investment, full-time job, or wage requirements, including employee benefits, established by KRS 154.32-020 on the activation date, the tax incentive agreement shall be canceled and the approved company shall not be eligible for incentives.
      3. If an approved company meets the minimum investment, full-time job, and wage requirements, including employee benefits, established by KRS 154.32-020, but fails to meet higher job targets and minimum wage targets, including employee benefits, established in the tax incentive agreement, then the provisions of subsection (4) of this section shall apply in determining the incentives for which the approved company qualifies.
      4. Upon activation of a tax incentive agreement, the authority shall notify the department, and shall provide the department with the information necessary to monitor and track the incentives taken by the approved company; and
      1. The authority shall monitor the tax incentive agreement at least annually, and the approved company shall submit all documentation necessary for the authority to monitor the agreement. (g) 1. The authority shall monitor the tax incentive agreement at least annually, and the approved company shall submit all documentation necessary for the authority to monitor the agreement.
      2. The authority shall, based on the documentation provided, confirm that the approved company is in continued compliance with the provisions of the tax incentive agreement and, therefore, eligible for incentives.
      3. Upon annual review, if the approved company meets the minimum job and wage requirements, including employee benefits, established by KRS 154.32-020, but fails to meet the job target and minimum wage target, including employee benefits, established in the tax incentive agreement, then the provisions of subsection (4) of this section shall apply in determining the incentives for which the approved company qualifies in any year.
      4. Upon final approval, the authority shall notify the department that an approved company is eligible for incentives and shall provide the department with the information necessary to monitor the use of incentives by the approved company. If, at any time during the term of the tax incentive agreement, an approved company becomes ineligible for incentives, the authority shall notify the department, and the department shall discontinue the availability of incentives for the approved company.
    1. The authority may establish procedures and standards for the review and approval of eligible companies and their economic development projects through the promulgation of administrative regulations in accordance with KRS Chapter 13A. (2) (a) The authority may establish procedures and standards for the review and approval of eligible companies and their economic development projects through the promulgation of administrative regulations in accordance with KRS Chapter 13A.
    2. Standards to be used by the authority in reviewing and approving an eligible company and its economic development project shall include but not be limited to:
      1. The creditworthiness of the eligible company;
      2. The proposed capital investment to be made;
      3. The number of new full-time jobs to be provided for the residents of the Commonwealth and the wages to be paid;
      4. Support of the local community; and
      5. The likelihood of the economic success of the economic development project.
  2. The application shall include but not be limited to:
    1. The name of the applicant and identification of any affiliates of the applicant who will have some relation to the economic development project;
    2. A description of the economic development project, including its location, the total investment in the economic development project, and total proposed eligible costs;
    3. The projected number of new full-time jobs to be created as a result of the economic development project and identification of any affiliates who may employ persons hired to fill those jobs;
    4. The number of existing full-time jobs at the site of the economic development project on the date of the application and a description and breakdown of the relevant affiliated employers;
    5. Proposed wage and employee benefit amounts for the new full-time jobs to be created as a result of the proposed economic development project;
    6. For proposed economic development projects new to the Commonwealth, certification by the eligible company that the economic development project could reasonably and efficiently locate outside of the Commonwealth and, without the incentives offered by the authority, the eligible company would likely locate outside the Commonwealth;
    7. For eligible companies with an existing location in the Commonwealth considering an expansion, certification that the tax incentives are necessary for the expansion to occur;
    8. A letter of support from a local governmental entity in the city or county where the economic development project will be located; and
    9. Any other information the authority may require.
    1. An approved company that meets the minimum job and wage requirements, including employee benefits established by KRS 154.32-020 , but fails to meet the job target and minimum wage target, including employee benefits established by the tax incentive agreement, shall be eligible to receive the incentives authorized by the tax incentive agreement as provided in this subsection. (4) (a) An approved company that meets the minimum job and wage requirements, including employee benefits established by KRS 154.32-020 , but fails to meet the job target and minimum wage target, including employee benefits established by the tax incentive agreement, shall be eligible to receive the incentives authorized by the tax incentive agreement as provided in this subsection.
    2. If, upon activation or annual review, an approved company achieves at least ninety percent (90%) of both the job target and minimum wage target, including employee benefits established by the tax incentive agreement, and no other default has occurred, then the approved company shall be eligible to receive full incentives as provided in the tax incentive agreement.
    3. If, upon activation or annual review, an approved company achieves less than ninety percent (90%) of either the job target or minimum wage target, including employee benefits established in the tax incentive agreement, and no other default has occurred, then the incentives available to the approved company for the following year shall be reduced by a percentage equal to the percentage representing the difference between the job target or minimum wage target, including employee benefits established in the tax incentive agreement, and the actual average number of full-time jobs or average wage, including employee benefits, paid. If both the number of actual average full-time jobs and average wages paid, including employee benefits, are below ninety percent (90%) of the targets on the same measurement date, then the greater percentage reduction of the two (2) shall be applied rather than reducing the incentives available by the sum of the two (2).
    4. If, upon annual review, either the actual number of new full-time jobs or the average wages paid for those jobs, including employee benefits, is less than the minimum requirements established by KRS 154.32-020, then the economic development project may be suspended automatically or, with approval of the authority, terminated.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 11, effective June 26, 2009; 2019 ch. 172, § 4, effective March 26, 2019.

154.32-040. Tax incentive agreement between authority and approved company — Contents. [Effective until June 29, 2021]

The authority, upon final approval of a company, may enter into a tax incentive agreement with the approved company. The terms and conditions of the tax incentive agreement shall be negotiated between the authority and the approved company. The terms of the tax incentive agreement shall include but not be limited to the following provisions:

  1. The maximum approved costs that may be recovered over the term of the tax incentive agreement and the annual maximum for approved costs;
  2. That the approved company shall provide the authority with all documentation requested in a manner acceptable to the authority;
  3. Identification of the contribution of the local government to the economic development project, if any;
  4. The activation date, which shall be within two (2) years of final approval;
  5. That the approved company shall implement the activation date by notifying the authority;
  6. That the approved company shall provide documentation satisfactory to the authority within the timeframes required by the authority that it has met the minimum employment, minimum investment, and minimum wage requirements, including employee benefits, established by KRS 154.32-020 ;
  7. That failure of the approved company to meet any of the minimum job, minimum investment, or minimum wage requirements, including employee benefits, established by KRS 154.32-020 , on the activation date shall result in cancellation of the tax incentive agreement;
  8. The term of the agreement, which shall not exceed fifteen (15) years for an economic development project located in an enhanced incentive county, or ten (10) years for an economic development project located in another county;
  9. That, if confirmed approved costs are less than the maximum approved costs included in the tax incentive agreement, the confirmed approved costs shall become the maximum amount that may be recovered by the approved company;
  10. If the economic development project is a leased project, that future rent payments that are included in eligible costs shall be included as confirmed approved costs upon submission of a valid lease agreement executed after preliminary approval;
  11. Establishment of a job target and minimum wage target, including employee benefits;
  12. A requirement that the job target and minimum wage target, including employee benefits, be measured:
    1. On the activation date, against the actual new full-time jobs created and the average wages, including employee benefits, paid for those jobs; and
    2. Annually during each year of the agreement, against the annual average of the new full-time jobs and the average wages paid for those jobs, including employee benefits;
  13. A provision requiring the approved company to notify the authority immediately if the approved company sells or otherwise transfers or disposes of the land on which an economic development project is located, if a lease relating to the economic development project is terminated or lapses, or if the approved company ceases or fundamentally alters operations at the economic development project;
  14. A provision detailing the reductions in incentives that will occur pursuant to KRS 154.32-030 (4) if an approved company fails to meet its job target or minimum wage target, including employee benefits;
  15. If the tax incentive agreement includes an advance disbursement, incorporation of the provisions of the loan agreement or inclusion of the loan agreement as an attachment to the tax incentive agreement;
  16. That the agreement may be assigned by the approved company upon the adoption of a resolution by the authority to that effect;
  17. That the approved company shall make available to the authority all of its records pertaining to the economic development project, including but not limited to payroll records, records relating to eligible costs, and any other records pertaining to the economic development project that the authority may require;
  18. That the authority may share information with the department for the purposes of monitoring and enforcing the terms of the tax incentive agreement;
  19. That, if an approved company fails to comply with its obligations under the tax incentive agreement other than the jobs target or minimum wage target, the authority may take any or all of the following actions:
    1. Suspend the incentives available to the approved company;
    2. Terminate the incentives available to the approved company; or
    3. Pursue any other remedy set forth in the tax incentive agreement or to which it may be entitled by law; and
  20. Any other provisions not inconsistent with this subchapter and determined to be necessary or appropriate by the parties to the tax incentive agreement.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 12, effective June 26, 2009.

154.32-040. Tax incentive agreement between authority and approved company — Contents. [Effective June 29, 2021]

The authority, upon final approval of a company, may enter into a tax incentive agreement with the approved company. The terms and conditions of the tax incentive agreement shall be negotiated between the authority and the approved company. The terms of the tax incentive agreement shall include but not be limited to the following provisions:

  1. The maximum approved costs that may be recovered over the term of the tax incentive agreement and the annual maximum for approved costs;
  2. That the approved company shall provide the authority with all documentation requested in a manner acceptable to the authority;
  3. Identification of the contribution of the local government to the economic development project, if any;
  4. The activation date, which shall be within two (2) years of final approval;
  5. That the approved company shall implement the activation date by notifying the authority;
  6. That the approved company shall provide documentation satisfactory to the authority within the timeframes required by the authority that it has met the minimum employment, minimum investment, and minimum wage requirements, including employee benefits, established by KRS 154.32-020 ;
  7. That failure of the approved company to meet any of the minimum job, minimum investment, or minimum wage requirements, including employee benefits, established by KRS 154.32-020 , on the activation date shall result in cancellation of the tax incentive agreement;
  8. The term of the agreement, which shall not exceed fifteen (15) years for an economic development project located in an enhanced incentive county, or ten (10) years for an economic development project located in another county;
  9. That, if confirmed approved costs are less than the maximum approved costs included in the tax incentive agreement, the confirmed approved costs shall become the maximum amount that may be recovered by the approved company;
  10. If the economic development project is a leased project, that future rent payments that are included in eligible costs shall be included as confirmed approved costs upon submission of a valid lease agreement executed after preliminary approval;
  11. Establishment of a job target and minimum wage target, including employee benefits;
  12. A requirement that the job target and minimum wage target, including employee benefits, be measured:
    1. On the activation date, against the actual new full-time jobs created and the average wages, including employee benefits, paid for those jobs; and
    2. Annually during each year of the agreement, against the annual average of the new full-time jobs and the average wages paid for those jobs, including employee benefits;
  13. A provision requiring the approved company to notify the authority immediately if the approved company sells or otherwise transfers or disposes of the land on which an economic development project is located, if a lease relating to the economic development project is terminated or lapses, or if the approved company ceases or fundamentally alters operations at the economic development project;
  14. A provision detailing the reductions in incentives that will occur pursuant to KRS 154.32-030 (4) if an approved company fails to meet its job target or minimum wage target, including employee benefits;
  15. That the agreement may be assigned by the approved company upon the adoption of a resolution by the authority to that effect;
  16. That the approved company shall make available to the authority all of its records pertaining to the economic development project, including but not limited to payroll records, records relating to eligible costs, and any other records pertaining to the economic development project that the authority may require;
  17. That the authority may share information with the department for the purposes of monitoring and enforcing the terms of the tax incentive agreement;
  18. That, if an approved company fails to comply with its obligations under the tax incentive agreement other than the jobs target or minimum wage target, the authority may take any or all of the following actions:
    1. Suspend the incentives available to the approved company;
    2. Terminate the incentives available to the approved company; or
    3. Pursue any other remedy set forth in the tax incentive agreement or to which it may be entitled by law; and
  19. Any other provisions not inconsistent with this subchapter and determined to be necessary or appropriate by the parties to the tax incentive agreement.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 12, effective June 26, 2009; 2021 ch. 185, § 120, effective June 29, 2021.

154.32-050. Enhanced incentive counties — Annual identification and certification or decertification — Criteria — Multicounty industrial park projects.

  1. The authority shall identify and certify or decertify enhanced incentive counties on an annual basis as provided in this section.
  2. Each fiscal year, the authority shall:
    1. Obtain from the Department of Workforce Investment in the Education and Workforce Development Cabinet, the final unemployment figures for the prior calendar year for each county and for the Commonwealth as a whole;
    2. Identify those counties which have had:
      1. A countywide unemployment rate that exceeds the statewide unemployment rate in the most recent five (5) consecutive calendar years; or
      2. An average countywide rate of unemployment exceeding the statewide unemployment rate by two hundred percent (200%) in the most recent calendar year; and
    3. Certify the counties identified in paragraph (b) of this subsection as enhanced incentive counties.
  3. A county not certified under subsection (2) of this section may also be certified by the authority as an enhanced incentive county if the authority determines the county is one (1) of the sixty (60) most distressed counties in the Commonwealth based on the following criteria with equal weight given to each criterion:
    1. The average countywide rate of unemployment in the most recent three (3) consecutive calendar years, using the information obtained under subsection (2)(a) of this section;
    2. The percentage of adults twenty-five (25) years of age and older who have attained at least a high school education or equivalent, on the basis of the most recent data available from the United States Department of Commerce, Bureau of the Census; and
    3. The quality of the roads in the county. Quality of roads shall be determined by the access within a county to roads, ranked in descending order from best quality to worst quality, as certified to the authority by the Kentucky Transportation Cabinet as follows:
      1. Two (2) or more interstate highways;
      2. One (1) interstate highway;
      3. A state four (4) lane parkway;
      4. A four (4) lane principal arterial access to an interstate highway;
      5. A state two (2) lane parkway; and
      6. None of the preceding road types.
    1. If the authority determines that an enhanced incentive county no longer meets the criteria to be certified as an enhanced incentive county under this section, the authority shall decertify that county. (4) (a) If the authority determines that an enhanced incentive county no longer meets the criteria to be certified as an enhanced incentive county under this section, the authority shall decertify that county.
    2. Any economic development project located in an enhanced incentive county that was decertified by the authority after May 1, 2009, shall have until July 1 of the third year following the fiscal year in which the county was decertified to obtain final approval from the authority.
    1. As used in this subsection, “industrial park” means a regional industrial park as defined in KRS 42.4588 , or an industrial park created pursuant to an interlocal agreement in which revenues are shared as provided in KRS 65.210 to 65.300 . (5) (a) As used in this subsection, “industrial park” means a regional industrial park as defined in KRS 42.4588 , or an industrial park created pursuant to an interlocal agreement in which revenues are shared as provided in KRS 65.210 to 65.300 .
    2. An economic development project undertaken in an industrial park that is located in two (2) or more counties, one (1) of which is an enhanced incentive county, may be approved for the enhanced incentive county incentives set forth in this subchapter.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 13, effective June 26, 2009; 2019 ch. 146, § 25, effective June 27, 2019; 2020 ch. 98, § 15, effective July 15, 2020.

154.32-060. Rehabilitation, replacement, or expansion of existing facilities — Criteria for approval as economic development project. [Effective until June 29, 2021]

  1. The authority shall not approve an economic development project that otherwise meets the requirements of this subchapter if the economic development project will result in the replacement of facilities existing in the state except as provided in this section.
  2. The authority may approve an economic development project that:
    1. Rehabilitates an existing facility used for manufacturing, agribusiness, or nonretail service or technology, or as a national or regional corporate headquarters, if:
      1. The facility has not been in operation for a period of ninety (90) or more consecutive days; or
        1. The current occupant of the facility has advertised a notice of closure; and 2. a. The current occupant of the facility has advertised a notice of closure; and
        2. The eligible company proposing the economic development project is not an affiliate of the current occupant of the facility; or
        1. The facility is sold or transferred pursuant to a foreclosure ordered by a court of competent jurisdiction or an order of a bankruptcy court of competent jurisdiction; and 3. a. The facility is sold or transferred pursuant to a foreclosure ordered by a court of competent jurisdiction or an order of a bankruptcy court of competent jurisdiction; and
        2. The title to the facility prior to the sale is not vested in the eligible company or an affiliate of the eligible company;
    2. Replaces an existing manufacturing, agribusiness, nonretail service or technology, or national or regional corporate headquarters facility if:
        1. Title to the facility: 1. a. Title to the facility:
          1. Is held by exercise of the power of eminent domain; or
          2. May be taken pursuant to a nonappealable judgment granting authority to exercise the power of eminent domain; and
        2. Normal operations at the facility cannot be resumed within twelve (12) months; or
      1. The facility has been damaged or destroyed by fire or other casualty to the extent that normal operations cannot be resumed at the facility within twelve (12) months; or
    3. Replaces an existing facility located in the same county if the existing facility cannot be expanded due to the unavailability of real estate at or adjacent to the facility to be replaced. Any economic development project satisfying the requirements of this paragraph shall be eligible for incentives under this subchapter only to the extent of the expansion. No incentives shall be available for the equivalent of the facility to be replaced or rehabilitated.
  3. The authority shall not approve an economic development project under this section which results in a lease abandonment or lease termination by the approved company without the consent of the lessor.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 14, effective June 26, 2009.

154.32-060. Rehabilitation, replacement, or expansion of existing facilities — Criteria for approval as economic development project. [Effective June 29, 2021]

  1. The authority shall not approve an economic development project that otherwise meets the requirements of this subchapter if the economic development project will result in the replacement of facilities existing in the state except as provided in this section.
  2. The authority may approve an economic development project that:
    1. Rehabilitates an existing facility used for activities of an eligible company, if:
      1. The facility has not been in operation for a period of ninety (90) or more consecutive days; or
        1. The current occupant of the facility has advertised a notice of closure; and 2. a. The current occupant of the facility has advertised a notice of closure; and
        2. The eligible company proposing the economic development project is not an affiliate of the current occupant of the facility; or
        1. The facility is sold or transferred pursuant to a foreclosure ordered by a court of competent jurisdiction or an order of a bankruptcy court of competent jurisdiction; and 3. a. The facility is sold or transferred pursuant to a foreclosure ordered by a court of competent jurisdiction or an order of a bankruptcy court of competent jurisdiction; and
        2. The title to the facility prior to the sale is not vested in the eligible company or an affiliate of the eligible company; or
      2. The existing facility is rehabilitated to enable a business to produce vital medications, personal protective equipment, or equipment necessary to produce personal protective equipment;
    2. Replaces an existing facility of an eligible company if:
        1. Title to the facility: 1. a. Title to the facility:
          1. Is held by exercise of the power of eminent domain; or
          2. May be taken pursuant to a nonappealable judgment granting authority to exercise the power of eminent domain; and
        2. Normal operations at the facility cannot be resumed within twelve (12) months; or
      1. The facility has been damaged or destroyed by fire or other casualty to the extent that normal operations cannot be resumed at the facility within twelve (12) months; or
      2. The existing facility is replaced to enable a business to produce vital medications, personal protective equipment, or equipment necessary to produce personal protective equipment; or
    3. Replaces an existing facility located in the same county if the existing facility cannot be expanded due to the unavailability of real estate at or adjacent to the facility to be replaced. Any economic development project satisfying the requirements of this paragraph shall be eligible for incentives under this subchapter only to the extent of the expansion. No incentives shall be available for the equivalent of the facility to be replaced or rehabilitated.
  3. The authority shall not approve an economic development project under this section which results in a lease abandonment or lease termination by the approved company without the consent of the lessor.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 14, effective June 26, 2009; 2021 ch. 185, § 121, effective June 29, 2021.

154.32-070. Nonrefundable tax credit for economic development project by approved company.

  1. For taxable years beginning after December 31, 2009, an approved company may be eligible for a credit of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040 , and the limited liability entity tax imposed under KRS 141.040 1, that would otherwise be owed by the approved company to the Commonwealth for the approved company’s taxable year, on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the economic development project.
  2. The credit allowed the approved company shall be applied against both the income tax imposed by KRS 141.020 or 141.040 , and the limited liability entity tax imposed by KRS 141.040 1, with credit ordering as provided in KRS 141.0205 , for the taxable year for which the tax return of the approved company is filed, subject to the annual maximum set forth in the tax incentive agreement. Any credit not used in the year in which it was first available may be carried forward to subsequent years, provided that no credit may be carried forward beyond the term of the tax incentive agreement.
  3. The approved company shall not be required to pay estimated tax payments under KRS 141.044 on the Kentucky taxable income, Kentucky gross receipts, or Kentucky gross profits generated by or arising from the eligible project.
  4. The credit provided by this section shall be determined as provided in KRS 141.415 .
  5. The amount of incentives allowed in any year shall not exceed the lesser of the tax liability of the approved company related to the economic development project for that year or the annual maximum approved costs set forth in the tax incentive agreement. The incentives shall be allowed for each fiscal year of the approved company during the term of the tax incentive agreement for which a tax return is filed by the approved company.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 16, effective June 26, 2009; 2019 ch. 151, § 71, effective June 27, 2019.

Legislative Research Commission Notes.

(6/27/2019). Section 85 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 71 of that Act apply retroactively to April 14, 2018.

154.32-080. Advance disbursement of portion of incentives — Eligibility — Computation of maximum amount — Loan agreement — Repayment. [Repealed]

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 17, effective June 26, 2009; repealed by 2019 ch. 172, § 9, effective March 26, 2019.

154.32-090. Wage assessments against employees — Calculation of amount based on participation of local jurisdiction — Credit against individual income tax for employees — Assessment to cease at expiration of tax incentive agreement.

  1. An approved company or, with the authority’s consent, an affiliate of an approved company may impose wage assessments against employees as provided in this section if a wage assessment is included in the incentives awarded to the approved company in the tax incentive agreement. The level of wage assessment shall be negotiated as part of the tax incentive agreement.
  2. If an economic development project is located in an enhanced incentive county, the approved company or, with the authority’s consent, an affiliate of the approved company may require that each employee subject to the tax imposed by KRS 141.020 , whose job is determined by the authority to be created as a result of the economic development project, as a condition of employment, agree to an assessment of up to five percent (5%) of taxable wages.
    1. If the economic development project is not located in an enhanced incentive county, and is located in a local jurisdiction where: (3) (a) If the economic development project is not located in an enhanced incentive county, and is located in a local jurisdiction where:
      1. No local occupational license fee is imposed; or
        1. A local occupational license fee greater than or equal to one percent (1%) is imposed; and 2. a. A local occupational license fee greater than or equal to one percent (1%) is imposed; and
        2. The local jurisdiction agrees to forgo one percent (1%) via credits against the local occupational license fee for the affected employees; then
    2. An approved company or, with the authority’s consent, an affiliate of an approved company may require that each employee subject to tax imposed by KRS 141.020 , whose job is determined by the authority to be created as a result of the economic development project, as a condition of employment, agree to pay an assessment of up to four percent (4%) of taxable wages.
    1. If: (4) (a) If:
      1. The economic development project is not located in an enhanced incentive county, and is located in a jurisdiction where the local occupational license fee is less than one percent (1%); and
      2. The local jurisdiction agrees to forgo the total amount of the local occupational license fee; then
    2. An approved company or, with the authority’s consent, an affiliate of an approved company may require that each employee subject to tax imposed by KRS 141.020 , whose job is determined by the authority to be created as a result of the economic development project, as a condition of employment, agree to pay an assessment of up to three percent (3%) of taxable wages, plus a percentage equal to the amount of the local occupational license fee the local jurisdiction agrees to forgo.
    1. If: (5) (a) If:
      1. The project is not located in an enhanced incentive county and is located in a county where the jurisdiction imposes a local occupational license fee of less than one percent (1%); and
      2. The local jurisdiction agrees to forgo only a portion of the total amount of the local occupational license fee; then
    2. An approved company or, with the authority’s consent, an affiliate of an approved company may require that each employee subject to tax imposed by KRS 141.020 , whose job is determined by the authority to be created as a result of the economic development project, as a condition of employment, agree to pay an assessment to be determined as follows:
      1. Divide the local occupational license fee that the local jurisdiction has agreed to forgo by the total local occupational license fee imposed;
      2. Multiply the result determined under subparagraph 1. of this paragraph by three percent (3%); and
      3. Add the result from subparagraph 2. of this paragraph to the local occupational license fee that the local jurisdiction has agreed to forgo.
    1. If: (6) (a) If:
      1. The project is not located in an enhanced incentive county, and is located in a county where the jurisdiction imposes a local occupational license fee equal to or greater than one percent (1%); and
      2. The local jurisdiction agrees to forgo the local occupational license fee in an amount of less than one percent (1%); then
    2. An approved company or, with the authority’s consent, an affiliate of an approved company may require that each employee subject to tax imposed by KRS 141.020 , whose job is determined by the authority to be created as a result of the economic development project, as a condition of employment, agree to pay an assessment to be determined as follows:
      1. Divide the local occupational license fee that the local jurisdiction has agreed to forgo by one percent (1%);
      2. Multiply the result determined under subparagraph 1. of this paragraph by three percent (3%); and
      3. Add the result from subparagraph 2. of this paragraph to the local occupational license fee that the local jurisdiction has agreed to forgo.
  3. If the project is not located in an enhanced incentive county, and:
    1. Is located in a local jurisdiction that does not impose a local occupational license fee, the local jurisdiction shall be required to provide some alternative inducement satisfactory to the authority at the local level in order for a preliminarily approved company to receive final approval. However, the authority may waive this requirement if there are reasonable circumstances that prevent the local jurisdiction from providing a reasonable inducement; or
    2. Is located in a local jurisdiction that does impose a local occupational license fee, the jurisdiction may request that the authority waive the local occupational license fee requirements established by subsection (3), (4), (5), or (6) of this section if the local jurisdiction offers alternative inducements of similar value satisfactory to the authority. The authority shall review all requests for a waiver, and may waive the local occupational license fee requirements and instead require the local jurisdiction to provide alternative inducements of similar value if the authority determines that the circumstances warrant an alternative contribution by the local jurisdiction.
  4. Each employee paying the assessment shall simultaneously be entitled to a credit against the Kentucky individual income tax required to be withheld under KRS 141.310 equal to the state portion of the assessment and shall be entitled to a credit against the local occupational license tax equal to the local portion of the assessment.
  5. If more than one (1) local jurisdiction imposes an occupational license fee, the local jurisdiction portion of the assessment shall be prorated proportionately among the taxes imposed by the local jurisdictions unless one (1) local jurisdiction agrees to forgo the receipt of these taxes in an amount equal to the local jurisdiction portion of the wage assessment, in which case no proration shall be made.
  6. If a full-time employee subject to state tax imposed by KRS 141.020 is already employed by the approved company at a site other than the site of the economic development project, that full-time employee’s job shall be deemed to have been created when the full-time employee is transferred to the site of the economic development project if the full-time employee’s existing job is filled with a new full-time employee.
  7. If an approved company elects to impose the assessment as a condition of employment, it shall be authorized to deduct the assessment from each payment of wages to the employee.
  8. Notwithstanding any other provision of the Kentucky Revised Statutes, if an approved company elects not to deduct the assessment from each payment of wages to the employee, but rather requests a reimbursement of state tax imposed by KRS 141.020 or local occupational tax in the aggregate after they have been paid to the state or local jurisdiction, no interest shall be paid by the state or by the local jurisdiction on that reimbursement.
  9. No credit, or portion thereof, shall be allowed against any occupational license fee imposed by or dedicated solely to the board of education in a local jurisdiction.
  10. An approved company imposing an assessment shall make its payroll, books, and records available to the authority or the department upon request, and shall file with the authority or department documentation pertaining to the assessment as the authority or department may require.
  11. Any assessment of the wages of employees of an approved company in connection with their employment at an economic development project shall permanently cease at the expiration of the tax incentive agreement.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 18, effective June 26, 2009; 2012, ch. 43, § 1, effective July 12, 2012; 2019 ch. 172, § 5, effective March 26, 2019.

154.32-100. Annual report on aggregate tax credits and assessments — Certification that approved company has received total incentives available.

By October 1 of each year, the department shall certify to the authority, in the form of an annual report, aggregate tax credits claimed on tax returns filed during the fiscal year ending June 30 of that year and aggregate assessments taken during the prior calendar year by approved companies with respect to their economic development projects under this subchapter, and shall certify to the authority, within ninety (90) days from the date an approved company has filed its state income tax return, when an approved company has taken tax credits or assessments equal to the total incentives available to the approved company.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 15, effective June 26, 2009.

SUBCHAPTER 33. Appalachian Development

154.33-020. Appalachian Development Council — Functions — Membership. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 141, § 7; 1982, ch. 396, § 36, 1998, ch. 69, § 63) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

Shaping Our Appalachian Region, Inc.

154.33-501. Short title for KRS 154.33-501 to 154.33-585. [Repealed]

History. Enact. Acts 1990, ch. 105, § 19, effective March 20, 1990; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 19, effective March 20, 1990) was repealed by Acts 2015, ch 58, § 7, effective June 24, 2015.

154.33-510. Definitions for subchapter.

As used in this subchapter , unless the context otherwise requires:

  1. “Area” or “region” means the geographical area of Kentucky contained within the Appalachian region as defined by the federal Appalachian Regional Development Act of 1965, as amended;
  2. “Board” means the executive board of Shaping Our Appalachian Region, Inc., a Kentucky nonprofit 501(c)(3) corporation created and organized, as of June 24, 2015, to advance and promote a resilient and diverse eastern Kentucky by providing leadership, vision, and collaborative partnerships to support innovative regional practices and enhance public and private investments in areas such as job creation, entrepreneurship, tourism, education and lifelong learning, health and wellness, arts and heritage, and sustainable agricultural practices and food systems;
  3. “Commissioner” means the commissioner of the Department for Local Government;
  4. “Commonwealth” means the Commonwealth of Kentucky;
  5. “Executive director” means the chief administrator of Shaping Our Appalachian Region, Inc. having responsibility for its day-to-day operations, and possessing all duties, responsibilities, and authorities as specified by the board;
  6. “Fund” means the Kentucky Appalachian regional development fund as provided by KRS 154.33-550 .

HISTORY: Enact. Acts 1990, ch. 105, § 1, effective March 20, 1990; 1992, ch. 43, § 1, effective July 14, 1992; 2000, ch. 465, § 1, effective April 21, 2000; 2015 ch. 58, § 1, effective June 24, 2015; 2017 ch. 177, Pt C, § 5, effective June 29, 2017.

Compiler’s Notes.

This section was formerly compiled as KRS 154B.100 .

The federal Appalachian Regional Development Act of 1965, referred to in subdivision (1), is compiled as 40 USCS §§ 14101 et seq.

154.33-515. East Kentucky Corporation — Purpose — Change in name — Continuation of rights and obligations. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 2, effective March 20, 1990; 1992, ch. 43, § 2, effective July 14, 1992; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

Compiler’s Notes. This section (Enact. Acts 1990, ch. 105, § 2, effective March 20, 1990; 1992, ch. 43, § 2, effective July 14, 1992) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-520. Corporation membership. [Repealed]

History. Enact. Acts 1990, ch. 105, § 3, effective March 20, 1990; 1992, ch. 43, § 3, effective July 14, 1992; 2014, ch. 92, § 222, effective January 1, 2015; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 3, effective March 20, 1990; 1992, ch. 43, § 3, effective July 14, 1992; 2014, ch. 92, § 222, effective January 1, 2015) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-525. Board of directors — Terms of office — Vacancies. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 4, effective March 20, 1990; 1992, ch. 43, § 4, effective July 14, 1992; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 4, effective March 20, 1990; 1992, ch. 43, § 4, effective July 14, 1992) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-527. Removal of members — Meetings — Officers. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 5, effective March 20, 1990; 1992, ch. 43, § 5, effective July 14, 1992; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 5, effective March 20, 1990; 1992, ch. 43, § 5, effective July 14, 1992) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-530. Disclosure of conflict of interest of member, officer, or employee of the board.

If any member, officer or employee of the board shall be interested either directly or indirectly, or shall be an officer or employee of or have an ownership interest in any firm or corporation interested directly or indirectly in any grant, loan, or investment from the Kentucky Appalachian regional development fund, including any loan to any sponsor, builder, or developer, the interest shall be disclosed clearly in the application and shall be set forth in the minutes of the board , and the member, officer, or employee having an interest therein shall not participate in the application process.

HISTORY: Enact. Acts 1990, ch. 105, § 16, effective March 20, 1990; 2015 ch. 58, § 6, effective June 24, 2015.

Compiler’s Notes.

This section was formerly compiled as KRS 154B.130 .

154.33-533. Limitation of liability of corporate members or officers. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 14, effective March 20, 1990; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 14, effective March 20, 1990) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-535. Powers and authority of corporation. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 6, effective March 20, 1990; 1992, ch. 43, § 6, effective July 14, 1992; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 6, effective March 20, 1990; 1992, ch. 43, § 6, effective July 14, 1992) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-540. Executive committee — Membership — Powers and duties — Meetings — Expenses. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 7, effective March 20, 1990; 1992, ch. 43, § 7, effective July 14, 1992; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 7, effective March 20, 1990; 1992, ch. 43, § 7, effective July 14, 1992) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-545. Bonds. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 8, effective March 20, 1990; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 8, effective March 20, 1990) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-550. Kentucky Appalachian regional development fund.

  1. There is created and established a fund to be known as the Kentucky Appalachian regional development fund to be administered by the Department for Local Government.
  2. The Kentucky Appalachian regional development fund shall be comprised of state appropriations, repayment of loans and interest made from the funds, and interest earnings generated for the fund.
  3. The purpose of this fund is to provide a source from which the Department for Local Government may make loans, grants, and investments in accordance with the purposes and procedures established in KRS 154.33-552 and 154.33-554 , at such interest rates and for such terms as may be determined by the commissioner or his or her designee, with security for repayment as deemed necessary and reasonable.
  4. The proceeds of any loan, grant, or investment shall be used solely for the purposes identified in KRS 154.33-552 and as may be further provided in the agreement; however, no moneys from this fund shall be used to carry on propaganda or otherwise used to influence legislation.
  5. Any unallotted or unencumbered balances in the fund shall be invested pursuant to KRS 42.500 . Interest earned from the investment of these funds shall accrue to the Kentucky Appalachian regional development fund.
  6. The balance in the Kentucky Appalachian regional development fund shall be treated as a continuing appropriation and shall not lapse at the end of the fiscal year.

HISTORY: Enact. Acts 1990, ch. 105, § 9, effective March 20, 1990; 2015 ch. 58, § 2, effective June 24, 2015.

Compiler’s Notes.

This section was formerly compiled as KRS 154B.116 .

154.33-552. Uses of Kentucky Appalachian regional development fund — Applications for funding — Criteria for approval — Administrative regulations.

  1. The Kentucky Appalachian regional development fund shall be used only to support job creation and retention, entrepreneurship, tourism, broadband deployment, education and lifelong learning, workforce training, leadership development, public engagement, health and wellness, arts and heritage, infrastructure, economic diversity, and sustainable agricultural practices and food systems within and across counties in the region.
  2. The following entities may apply for loans, grants, or investments from the fund:
    1. Nonprofit corporations that have or are actively seeking 501(c)(3) status, are registered to do business in the Commonwealth, are established to conduct business in accordance with the purposes of the Shaping Our Appalachian Region initiative, and that have a physical presence within the region;
    2. Working groups or other formally designated entities representing Shaping Our Appalachian Region, Inc. as documented by resolution of the board or the board itself; and
    3. Departments, divisions, or offices of a county or city within the region.
  3. Applications shall be submitted to the executive director who shall confirm completeness and shall then submit applications to the board for consideration.
  4. The board shall consider whether and to what extent the applications are consistent with the purposes specified in subsection (1) of this section. It shall then forward the applications to the commissioner with recommendations for approval or disapproval, giving priority to initiatives that present the greatest likelihood of regionwide economic impact.
  5. The criteria to be used by the board in recommending applications to the commissioner shall include:
    1. The unemployment level in each community where the project will be located;
    2. The likelihood that the project will generate future revenue for the community or the Commonwealth;
    3. The number of new direct or indirect jobs to be provided for the residents of the Commonwealth and the wages to be paid;
    4. The degree to which the project will benefit the economies and communities in multiple jurisdictions within the region;
    5. Funding match from the local community and private sector persons or foundations; and
    6. The likelihood of the economic success of the project, including the ability of the project to sustain itself in the future.
  6. The commissioner shall have authority to approve the application and shall, in consultation with the secretary of the Cabinet for Economic Development, determine reasonable terms and conditions for the loan, grant, or investment.
  7. Money in the Kentucky Appalachian regional development fund may be disbursed by the applicant to any person or entity, public or private, organized for profit or not for profit, or any combination thereof with a geographical presence in the region as set forth in the application and approved by the commissioner, but the applicant shall be responsible for appropriate monitoring and reporting of the use of funds by the recipient.
  8. The Department for Local Government may promulgate administrative regulations in accordance with KRS Chapter 13A to implement the provisions of this section and KRS 154.33-554 and 154.33-556 .

HISTORY: 2015 ch. 58, § 3, effective June 24, 2015.

154.33-554. Contents of applications for loans, grants, or investments.

Applications for loans, grants, or investments submitted under KRS 154.33-552 shall include the following:

  1. The name of the applicant and identification of all parties contributing to or taking a leadership role with regard to the development project;
  2. A detailed description of the project, including its location and the total project cost;
  3. The projected number of jobs, if any, to be created as a result of the project and a description of the types of jobs;
  4. If the applicant is an entity other than a city or county, a letter of support from all local governmental entities affected by the project;
  5. A detailed description of any other funding sources that will be used to pay for the project;
  6. A plan for making the project self-sustaining if it is expected or intended that the initiative will have recurring expenses, and an explanation of the stream of revenue or other resources that will cover future costs, including operational costs, administrative costs, and upkeep on any property, buildings, equipment, or other capital assets funded; and
  7. Any other information that the commissioner may require.

HISTORY: 2015 ch. 58, § 4, effective June 24, 2015.

154.33-555. Construction of KRS 154.33-501 to 154.33-585. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 10, effective March 20, 1990; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 10, effective March 20, 1990) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-556. Annual report on status of Kentucky Appalachian regional development fund.

The Department for Local Government shall prepare and submit to the Office of the Governor and the Legislative Research Commission a report by November 1 of each year on the status of the Kentucky Appalachian regional development fund. The report shall include the operation and financial status of the fund, the initiatives supported by the fund, and the status of the measures of success identified for each funded initiative.

HISTORY: 2015 ch. 58, § 5, effective June 24, 2015.

154.33-560. Bonds payable from revenues and assets only. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 11, effective March 20, 1990; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 11, effective March 20, 1990) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-565. Negotiability of obligations of the corporation. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 12, effective March 20, 1990; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 12, effective March 20, 1990) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-570. Obligations are authorized investments. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 13, effective March 20, 1990; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 13, effective March 20, 1990) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-575. Tax-exempt status. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 15, effective March 20, 1990; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 15, effective March 20, 1990) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-580. Disposition of corporation assets upon termination or dissolution. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 17, effective March 20, 1990; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 17, effective March 20, 1990) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

154.33-585. Annual report — Annual audit. [Repealed]

HISTORY: Enact. Acts 1990, ch. 105, § 18, effective March 20, 1990; repealed by 2015 ch. 58, § 7, effective June 24, 2015.

Compiler's Notes.

This section (Enact. Acts 1990, ch. 105, § 18, effective March 20, 1990) was repealed by Acts 2015, ch. 58, § 7, effective June 24, 2015.

Red Fox Tri-County Cooperative Corporation

154.33-600. Definitions for KRS 154.33-600 to 154.33-609. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2000, ch. 532, § 1, effective July 14, 2000) was repealed by Acts 2009, ch. 12, § 56, effective June 25, 2009.

154.33-601. Red Fox Tri-County Cooperative Corporation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2000, ch. 532, § 2, effective July 14, 2000) was repealed by Acts 2009, ch. 12, § 56, effective June 25, 2009.

154.33-603. Board of directors — Members — Terms — Compensation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2000, ch. 532, § 3, effective July 14, 2000; 2005, ch. 95, § 34, effective June 20, 2005; 2007, ch. 47, § 78, effective June 26, 2007) was repealed by Acts 2009, ch. 12, effective June 25, 2009.

Legislative Research Commission Note.

(6/25/2009). Under KRS 446.260 , the repeal of this section in 2009 Ky. Acts ch. 12 prevails over its amendment in 2009 Ky. Acts ch. 16.

154.33-605. Operation of board — Participation of corporation’s employees in Kentucky Employees Retirement System. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2000, ch. 532, § 4, effective July 14, 2000) was repealed by Acts 2009, ch. 12, effective June 25, 2009.

154.33-607. Powers and duties of corporation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2000, ch. 532, § 5, effective July 14, 2000) was repealed by Acts 2009, ch. 12, § 56, effective June 25, 2009.

154.33-609. Use of corporate revenues — Annual audit by State Auditor. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2000, ch. 532, § 6, effective July 14, 2000) was repealed by Acts 2009, ch. 12, § 56, effective June 25, 2009.

SUBCHAPTER 34. Reinvestment of Manufacturing Facilities

154.34-010. Definitions for subchapter. [Effective until June 29, 2021]

As used in this subchapter:

  1. “Approved company” means an eligible company approved for a reinvestment project;
  2. “Approved costs” means the sum of the:
    1. Eligible equipment and related costs; and
    2. Eligible skills upgrade training costs;

      approved by the authority that may be recovered by an approved company through the incentives authorized by this subchapter;

  3. “Authority” means the Kentucky Economic Development Finance Authority created by KRS 154.20-010 ;
  4. “Commonwealth” means the Commonwealth of Kentucky;
  5. “Department” means the Department of Revenue;
  6. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity engaged in manufacturing at a facility located and operating within the Commonwealth on a permanent basis for a reasonable period of time preceding the request for approval of a reinvestment project by the authority;
    1. “Eligible equipment and related costs” means: (7) (a) “Eligible equipment and related costs” means:
      1. Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the acquisition, construction, equipping, rehabilitation, and installation of a reinvestment project;
      2. The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, equipping, rehabilitation, and installation of a reinvestment project which is not paid by the vendor, supplier, deliveryman, contractor, or otherwise provided;
      3. All costs of architectural and engineering services, including estimates, plans and specifications, preliminary investigations, and supervision of construction, rehabilitation and installation, as well as for the performance of all the duties required by or consequent upon the acquisition, construction, equipping, rehabilitation, and installation of a reinvestment project;
      4. All costs required to be paid under the terms of any contract for the acquisition, construction, equipping, rehabilitation, and installation of a reinvestment project;
      5. All costs required for the installation of utilities, including but not limited to water, sewer, sewer treatment, gas, electricity, communications, and access to transportation, and including off-site construction of the facilities paid for by the approved company; and
      6. All other costs of a nature comparable to those described in this paragraph.
    2. “Eligible equipment and related costs” does not include costs related to the replacement or repair of existing machinery or equipment resulting from normal wear and usage of the machinery;
  7. “Eligible skills upgrade training costs” means costs incurred by an approved company in connection with an occupational training program for full-time employees specifically related to training or retraining employees as part of the reinvestment project, including the following:
    1. Fees or salaries paid to instructors, whether those instructors are employees of the approved company, contractors, or consultants;
    2. Administrative fees paid to educational institutions;
    3. Amounts paid for supplies, materials, and equipment used exclusively for the occupational training program;
    4. Amounts paid to lease a training facility if sufficient training space is not available at the approved company or at an educational institution;
    5. Amounts paid to employees as wages for attending the occupational training program;
    6. Amounts paid for travel expenses for employees; and
    7. All other costs of a nature comparable to those described in this subsection;
  8. “Equipment” means manufacturing machinery installed by the approved company as part of the reinvestment project;
  9. “Final approval” means the action taken by the authority designating a preliminarily approved eligible company as an approved company;
  10. “Full-time” means a minimum of thirty-five (35) hours per week;
  11. “Kentucky gross profits” has the same meaning as in KRS 141.0401 ;
  12. “Kentucky gross receipts” has the same meaning as in KRS 141.0401 ;
  13. “Manufacturing” means any activity involving the processing, assembling, or production of any property, including activities that result in a change in the condition of the property. “Manufacturing” includes any activity or function related to the manufacturing activity, including storage, warehousing, distribution, and related office facilities;
  14. “Preliminary approval” means the action taken by the authority designating an eligible company as a preliminarily approved company;
  15. “Reinvestment agreement” means the agreement entered into pursuant to KRS 154.34-080 between the authority and an approved company with respect to a reinvestment project; and
  16. “Reinvestment project” means:
    1. A reinvestment in the physical plant of a manufacturing facility, and in the full-time employees of a manufacturing facility, through:
      1. The acquisition, construction, and installation of new equipment and, with respect thereto, the construction, rehabilitation, and installation of improvements to facilities necessary to house the new equipment, including surveys; installation of utilities, including water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; or off-site construction of utility extensions to the boundaries of the real estate on which the facilities are located; and
      2. The development of an occupational training program to train or retrain the full-time employees of the company to support the reinvestment in the manufacturing facility, if applicable, for the purpose of improving the economic and operational situation of a company; and
    2. The expenditure of at least two million five hundred thousand dollars ($2,500,000) in eligible equipment and related costs.

History. Enact. Acts 2003, ch. 148, § 1, effective June 24, 2003; 2006, ch. 149, § 221, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 61, effective June 28, 2006; 2009 (1st Ex. Sess.), ch. 1, § 1, effective June 26, 2009.

Legislative Research Commission Note.

(6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 7, provides that, notwithstanding the amendments contained in Sections 1 to 6 of that Act (which includes this statute), “all reinvestment projects preliminarily approved on or after the effective date of this Act shall not be eligible for final approval until July 1, 2010”; and 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 8, provides that, notwithstanding the amendments in Sections 1 to 6 of that Act or the repeals in Section 114 of that Act, “all reinvestment projects preliminarily or finally approved prior to the effective date of this Act shall be governed by Subchapter 34 of KRS Chapter 154 as it existed prior to the effective date of this Act.”

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.34-010. Definitions for subchapter. [Effective June 29, 2021]

As used in this subchapter:

  1. “Affiliate” has the same meaning as in Section 118 of this Act;
  2. “Agribusiness” has the same meaning as in Section 118 of this Act;
  3. “Alternative fuel production” has the same meaning as in Section 118 of this Act;
  4. “Approved company” means an eligible company approved under Section 123 of this Act for a reinvestment project;
  5. “Approved costs” means the eligibleequipment and related costsapproved by the authority that may be recovered by an approved company through the incentives authorized by this subchapter;
  6. “Authority” means the Kentucky Economic Development Finance Authority created by KRS 154.20-010 ;
  7. “Capital lease” has the same meaning as in Section 118 of this Act;
  8. “Carbon dioxide transmission pipeline” has the same meaning as in Section 118 of this Act;
  9. “Coal severing and processing” means activities resulting in an eligible company being subject to the tax imposed by KRS Chapter 143;
  10. “Commonwealth” means the Commonwealth of Kentucky;
  11. “Department” means the Department of Revenue;
    1. “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity: (12) (a) “Eligible company” means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or any other entity:
      1. Employing or intending to employ a minimum of twenty-five (25) persons on a full-time bases; and
      2. Engaged in or planning to engage in one (1) or more of the following activities:
        1. Headquarter operations;
        2. Manufacturing;
        3. Agribusiness;
        4. Nonretail service or technology;
        5. Coal severing and processing;
        6. Alternative fuel, gasification, energy-efficient alternative fuel, or renewable energy production;
        7. Carbon dioxide transmission pipeline operations; or
        8. Hospital operations;

          at the same facility located and operating within the Commonwealth on a permanent basis for a reasonable period of time preceding the request for approval of a reinvestment project by the authority, including facilities where operations have been temporarily suspended and which meet the standards under Section 123 of this Act and related administrative regulations promulgated by the authority;

    2. “Eligible company” does not include any company for which the primary activity to be conducted within the Commonwealth is:
      1. Forestry;
      2. Fishing;
      3. The provision of utilities;
      4. Construction;
      5. Wholesale trade;
      6. Retail trade;
      7. Real estate;
      8. Rental and leasing;
      9. Educational services;
      10. Accommodation and food services; or
      11. Public administration services;
    1. “Eligible equipment and related costs” means: (13) (a) “Eligible equipment and related costs” means:
      1. Obligations incurred for labor and to vendors, contractors, subcontractors, builders, suppliers, deliverymen, and materialmen in connection with the acquisition, construction, equipping, rehabilitation, and installation of a reinvestment project;
      2. The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, equipping, rehabilitation, and installation of a reinvestment project which is not paid by the vendor, supplier, deliveryman, contractor, or otherwise provided;
      3. All costs of architectural and engineering services, including estimates, plans and specifications, preliminary investigations, and supervision of construction, rehabilitation and installation, as well as for the performance of all the duties required by or consequent upon the acquisition, construction, equipping, rehabilitation, and installation of a reinvestment project;
      4. All costs required to be paid under the terms of any contract for the acquisition, construction, equipping, rehabilitation, and installation of a reinvestment project;
      5. All costs required for the installation of utilities, including but not limited to water, sewer, sewer treatment, gas, electricity, communications, and access to transportation, and including off-site construction of the facilities paid for by the approved company; and
      6. All other costs of a nature comparable to those described in this paragraph.
    2. “Eligible equipment and related costs” does not include costs related to the replacement or repair of existing machinery or equipment resulting from normal wear and usage of the machinery or equipment;
  12. “Energy-efficient alternative fuel production” has the same meaning as in Section 118 of this Act;
  13. “Enhanced incentive counties” has the same meaning as in Section 118 of this Act;
  14. “Equipment” means manufacturing machinery equipment, computers, furnishings, fixtures, and other assets installed by the approved company as part of the reinvestment project;
  15. “Final approval” means the action taken by the authority designating a preliminarily approved eligible company as an approved company to receive incentives under this subchapter;
  16. “Full-time employee” means a person who:
    1. Is required to work a minimum of thirty-five (35) hours per week; or
    2. Works remotely away from the reinvestment project if all the following conditions are met:
      1. Is a Kentucky resident;
      2. Whose job was created or retained as a result of the reinvestment project; and
      3. Whose payroll is expensed to the reinvestment project;
  17. “Gasification production” has the same meaning as in Section 118 of this Act;
  18. “Headquarters” has the same meaning as in Section 118 of this Act;
  19. “Hospital” has the same meaning as in Section 118 of this Act;
  20. “Incentives” means the Kentucky tax credit as prescribed in this subchapter;
  21. “Kentucky gross profits” has the same meaning as in KRS 141.0401 ;
  22. “Kentucky gross receipts” has the same meaning as in KRS 141.0401 ;
  23. “Leased project” has the same meaning as in Section 118 of this Act;
  24. “Manufacturing” has the same meaning as in Section 118 of this Act;
  25. “Nonretail service or technology” has the same meaning as in Section 118 of this Act;
  26. “Personal protective equipment” has the same meaning as in Section 118 of this Act;
  27. “Preliminary approval” means the action taken by the authority designating an eligible company as a preliminarily approved company;
  28. “Reinvestment agreement” means the agreement entered into pursuant to KRS 154.34-080 between the authority and an approved company with respect to a reinvestment project;
  29. “Reinvestment project” means:
    1. A reinvestment in the facility of an eligible company and in the full-time employees of an eligible company through theacquisition, construction, and installation of new equipment and, with respect thereto, the construction, rehabilitation, and installation of improvements to facilities necessary to house the new equipment, including surveys; installation of utilities, including water, sewer, sewage treatment, gas, electricity, communications, and similar facilities; or off-site construction of utility extensions to the boundaries of the real estate on which the facilities are located;
    2. The expenditure of at least one million dollars ($1,000,000) in eligible equipment and related costs for leased projects and at least two million five hundred thousand dollars ($2,500,000) in eligible equipment and related costs for all other reinvestment projects; and
    3. A reinvestment in a facility in order to allow for the production of vital medications, personal protective equipment, or equipment necessary to produce personal protective equipment;
  30. “Renewable energy production” has the same meaning as in Section 118 of this Act; and
  31. “Vital medications” has the same meaning as in Section 118 of this Act.

HISTORY: Enact. Acts 2003, ch. 148, § 1, effective June 24, 2003; 2006, ch. 149, § 221, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 61, effective June 28, 2006; 2009 (1st Ex. Sess.), ch. 1, § 1, effective June 26, 2009; 2021 ch. 185, § 122, effective June 29, 2021.

154.34-020. Legislative findings. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2003, ch. 148, § 2, effective June 24, 2003) was repealed by 2009 (1st Ex. Sess.), ch. 1, effective June 26, 2009.

154.34-030. Staff of authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2003, ch. 148, § 3, effective June 24, 2003) was repealed by 2009 (1st Ex. Sess.), ch. 1, effective June 26, 2009.

154.34-040. Personal liability of director or officer. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2003, ch. 148, § 4, effective June 24, 2003) was repealed by 2009 (1st Ex. Sess.), ch. 1, effective June 26, 2009.

154.34-050. Funding for authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2003, ch. 148, § 5, effective June 24, 2003) was repealed by 2009 (1st Ex. Sess.), ch. 1, effective June 26, 2009.

154.34-060. Interest in contract with authority by director, officer, or employee. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2003, ch. 148, § 6, effective June 24, 2003) was repealed by 2009 (1st Ex. Sess.), ch. 1, effective June 26, 2009.

154.34-070. Application and review process — Memorandum of agreement — Standards and criteria for approval — Preliminary and final approval of company by authority — Reinvestment agreement — Notice to department — Department to monitor use of credits. [Effective until June 29, 2021]

  1. The application and approval process under this subchapter shall be as follows:
    1. An eligible company with a proposed reinvestment project may submit an application to the authority. The application shall include the information required by subsection (4) of this section;
    2. Upon review of the application and any additional information submitted, the authority may, by resolution, give preliminary approval to a reinvestment project and authorize the negotiation and execution of a memorandum of agreement. The memorandum of agreement shall establish the minimum job retention requirements and maximum total approved cost for the reinvestment project, shall only allow the recovery of costs incurred after preliminary approval, and may include any other terms as agreed to by the parties to the agreement. Upon preliminary approval, the preliminarily approved company may undertake the project in accordance with the memorandum of agreement;
    3. The preliminarily approved company shall submit any documentation required by the authority upon request of the authority;
    4. The preliminarily approved company shall have up to three (3) years from the date of preliminary approval to obtain final approval. Upon the earlier of completion of the project or the passage of three (3) years from the date of preliminary approval, the preliminarily approved company shall submit documentation required by the authority, and the authority shall confirm that the minimum investment and job retention requirements established by the memorandum of agreement have been met. Upon review and confirmation of the documentation, the authority may, by resolution, give final approval to the preliminarily approved company and authorize the execution of a reinvestment agreement between the authority and the approved company pursuant to KRS 154.34-080 . As part of the reinvestment agreement, the approved costs shall be finally determined, not to exceed the maximum approved costs as determined at preliminary approval, and the approved company shall be eligible to receive incentives in accordance with the provisions of the reinvestment agreement;
    5. The authority shall monitor the reinvestment agreement at least annually, and the approved company shall submit all documentation necessary for the authority to monitor the agreement. The authority shall, based on the documentation provided, confirm that the approved company is in continued compliance with the provisions of the reinvestment agreement and, therefore, eligible for incentives; and
    6. Upon final approval, the authority shall notify the department that an approved company is eligible for incentives and shall provide the department with the information necessary to monitor the use of credits by the approved company. If, at any time during the term of the reinvestment agreement, an approved company becomes ineligible for incentives, the authority shall notify the department, and the department shall discontinue the availability of credits for the approved company.
  2. The authority may establish standards for preliminary and final approval of eligible companies and their projects through the promulgation of administrative regulations in accordance with the provisions of KRS Chapter 13A.
  3. The criteria for preliminary and final approval of eligible companies and reinvestment projects shall include but not be limited to the need for the project, the eligible equipment and other costs and eligible skills upgrade training costs to be expended by the eligible company, and the number of jobs created or retained as a result of the project.
  4. The application shall include:
    1. A description of the condition of the existing facility, including but not limited to the status of the physical plant, the financial situation of the company, and the efficiency and productivity of the facility;
    2. A description of the proposed reinvestment project, including anticipated sources of funding, the total anticipated equipment and related costs and skills upgrade training costs, the impact of the proposed reinvestment project on full-time employment at the facility, and an explanation of why reinvestment in the facility and its full-time employees is necessary;
    3. A timeline for the proposed reinvestment project;
    4. A description of the other alternatives that are available to the eligible company, if incentives are not provided;
    5. The amount of incentives sought, and an explanation of why the requested incentives are needed;
    6. A certification from the company that the reinvestment project would not be economically feasible for the company, but for the incentives available under this subchapter;
    7. Payment of any applicable application fees required by the authority; and
    8. Any additional information relating to the proposed reinvestment project that the authority may require.
  5. The authority may request any materials and make any inquiries concerning an application that the authority deems necessary.

History. Enact. Acts 2003, ch. 148, § 7, effective June 24, 2003; 2009 (1st Ex. Sess.), ch. 1, § 3, effective June 26, 2009.

Legislative Research Commission Note.

(6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 7, provides that, notwithstanding the amendments contained in Sections 1 to 6 of that Act (which includes this statute), “all reinvestment projects preliminarily approved on or after the effective date of this Act shall not be eligible for final approval until July 1, 2010”; and 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 8, provides that, notwithstanding the amendments in Sections 1 to 6 of that Act or the repeals in Section 114 of that Act, “all reinvestment projects preliminarily or finally approved prior to the effective date of this Act shall be governed by Subchapter 34 of KRS Chapter 154 as it existed prior to the effective date of this Act.”

154.34-070. Application and review process — Memorandum of agreement — Standards and criteria for approval — Preliminary and final approval of company by authority — Reinvestment agreement — Notice to department — Department to monitor use of credits. [Effective June 29, 2021]

  1. The application and approval process under this subchapter shall be as follows:
    1. An eligible company with a proposed reinvestment project may submit an application to the authority. The application shall include the information required by subsection (4) of this section;
    2. Upon review of the application and any additional information submitted, the authority may, by resolution, give preliminary approval to a reinvestment project and authorize the negotiation and execution of a memorandum of agreement. The memorandum of agreement shall establish the minimum job retention requirements and maximum total approved cost for the reinvestment project, shall only allow the recovery of costs incurred after preliminary approval, and may include any other terms as agreed to by the parties to the agreement. Upon preliminary approval, the preliminarily approved company may undertake the project in accordance with the memorandum of agreement;
    3. The preliminarily approved company shall submit any documentation required by the authority upon request of the authority;
    4. The preliminarily approved company shall have up to three (3) years from the date of preliminary approval to complete the reinvestment project and obtain final approval. Upon the earlier of completion of the project or the passage of three (3) years from the date of preliminary approval, the preliminarily approved company shall submit documentation required by the authority, and the authority shall confirm that the minimum investment and job retention requirements established by the memorandum of agreement have been met. Upon review and confirmation of the documentation, the authority may, by resolution, give final approval to the preliminarily approved company and authorize the execution of a reinvestment agreement between the authority and the approved company pursuant to KRS 154.34-080 . As part of the reinvestment agreement, the approved costs shall be finally determined, not to exceed the maximum approved costs as determined at preliminary approval, and the approved company shall be eligible to receive incentives in accordance with the provisions of the reinvestment agreement;
    5. The authority shall monitor the reinvestment agreement at least annually, and the approved company shall submit all documentation necessary for the authority to monitor the agreement. The authority shall, based on the documentation provided, confirm that the approved company is in continued compliance with the provisions of the reinvestment agreement and, therefore, eligible for incentives; and
    6. Upon final approval, the authority shall notify the department that an approved company is eligible for incentives and shall provide the department with the information necessary to monitor the use of incentives by the approved company. If, at any time during the term of the reinvestment agreement, an approved company becomes ineligible for incentives, the authority shall notify the department, and the department shall discontinue the availability of incentives for the approved company.
  2. The authority may establish standards for preliminary and final approval of eligible companies and their projects through the promulgation of administrative regulations in accordance with the provisions of KRS Chapter 13A.
  3. The criteria for preliminary and final approval of eligible companies and reinvestment projects shall include but not be limited to the need for the project, the eligible equipment and other costs to be expended by the eligible company, and the number of jobs created or preserved as a result of the project.
  4. The application shall include:
    1. The name of the applicant and identification of any affiliates who will have some relation to the reinvestment project;
    2. A description of the condition of the existing facility, including but not limited to the status of the physical plant or office space, the financial situation of the company, and the efficiency and productivity of the facility;
    3. A description of the proposed reinvestment project, including anticipated sources of funding, the total anticipated equipment and related costs and skills upgrade training costs, the impact of the proposed reinvestment project on full-time employment at the facility, and an explanation of why reinvestment in the facility and its full-time employees is necessary;
    4. The number of existing full-time jobs at the site of the reinvestment project on the date of the application and a description and breakdown of the relevant affiliated employers;
    5. A timeline for the proposed reinvestment project;
    6. A description of the other alternatives that are available to the eligible company, if incentives are not provided;
    7. The amount of incentives sought, and an explanation of why the requested incentives are needed;
    8. A certification from the company that the reinvestment project would not be economically feasible for the company, but for the incentives available under this subchapter;
    9. Payment of any applicable application fees required by the authority; and
    10. Any additional information relating to the proposed reinvestment project that the authority may require.
  5. The authority may request any materials and make any inquiries concerning an application that the authority deems necessary.

HISTORY: Enact. Acts 2003, ch. 148, § 7, effective June 24, 2003; 2009 (1st Ex. Sess.), ch. 1, § 3, effective June 26, 2009; 2021 ch. 185, § 123, effective June 29, 2021.

154.34-080. Reinvestment agreement — Terms and provisions. [Effective until June 29, 2021]

The authority, upon final approval of a company, may enter into a reinvestment agreement with the approved company. The terms and conditions of the reinvestment agreement shall be negotiated between the authority and the approved company. The terms of the reinvestment agreement shall include but not be limited to the following provisions:

  1. That the authority may employ an independent consultant or utilize technical resources to verify the cost of the project, and that the approved company shall reimburse the authority for the cost of a consultant or other technical resources employed by the authority;
  2. The maximum approved costs that may be recovered;
  3. A set employment retention goal, which shall be at least eighty-five percent (85%) of the number of full-time employees employed at the facility on the date the company receives preliminary approval;
  4. That approval of the company is not a guarantee of incentives and that eligibility for incentives shall be contingent on the approved company meeting the requirements established by the reinvestment agreement and this subchapter;
  5. The term of the reinvestment agreement, which shall not be longer than the earlier of:
    1. The date on which the approved company has received incentives equal to the approved costs of its reinvestment project; or
    2. Ten (10) years from the date of final approval granted by the authority;
  6. That the authority may reduce the incentives, suspend the incentives, or terminate the agreement if the approved company fails to comply with provisions of the reinvestment agreement;
  7. That both the authority and the department shall have the right to pursue any remedy provided under this reinvestment agreement and any other remedy at law to which it may be entitled;
  8. That the approved company shall make available to the department and the authority all of its records pertaining to the reinvestment project, including but not limited to payroll records, records relating to the expenditure of eligible equipment and related costs, eligible skills upgrade training costs, and approved costs, and any other records pertaining to the project as the authority or the department may require;
  9. That the authority may share information with the department for the purposes of monitoring and enforcing the terms of the reinvestment agreement;
  10. That the agreement shall not be transferred or assigned by the approved company without the expressed written consent of the authority; and
  11. Any other provisions not inconsistent with this subchapter and determined to be necessary or appropriate by the parties to the reinvestment agreement.

History. Enact. Acts 2003, ch. 148, § 8, effective June 24, 2003; 2005, ch. 85, § 585, effective June 20, 2005; 2006 (1st Ex. Sess), ch. 2, § 62, effective June 28, 2006; 2009 (1st Ex. Sess.), ch. 1, § 4, effective June 26, 2009.

Legislative Research Commission Note.

(6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 7, provides that, notwithstanding the amendments contained in Sections 1 to 6 of that Act (which includes this statute), “all reinvestment projects preliminarily approved on or after the effective date of this Act shall not be eligible for final approval until July 1, 2010”; and 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 8, provides that, notwithstanding the amendments in Sections 1 to 6 of that Act or the repeals in Section 114 of that Act, “all reinvestment projects preliminarily or finally approved prior to the effective date of this Act shall be governed by Subchapter 34 of KRS Chapter 154 as it existed prior to the effective date of this Act.”

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.34-080. Reinvestment agreement — Terms and provisions. [Effective June 29, 2021]

The authority, upon final approval of a company, may enter into a reinvestment agreement with the approved company. The terms and conditions of the reinvestment agreement shall be negotiated between the authority and the approved company. The terms of the reinvestment agreement shall include but not be limited to the following provisions:

  1. That the authority may employ an independent consultant or utilize technical resources to verify the cost of the project, and that the approved company shall reimburse the authority for the cost of a consultant or other technical resources employed by the authority;
  2. The maximum approved costs that may be recovered, and that the amount of incentives allowed in any year shall not exceed twenty percent (20%) of the total amount of the approved costs;
  3. A set employment retention goal, which shall be at least eighty-five percent (85%) of the number of full-time employees employed at the facility on the date the company receives preliminary approval;
  4. That approval of the company is not a guarantee of incentives and that eligibility for incentives shall be contingent on the approved company meeting the requirements established by the reinvestment agreement and this subchapter;
  5. The term of the reinvestment agreement, which shall not be longer than the earlier of:
    1. The date on which the approved company has received incentives equal to the approved costs of its reinvestment project; or
    2. Ten (10) years from the date of final approval granted by the authority;
  6. That the authority may reduce the incentives, suspend the incentives, or terminate the agreement if the approved company fails to comply with provisions of the reinvestment agreement;
  7. That both the authority and the department shall have the right to pursue any remedy provided under this reinvestment agreement and any other remedy at law to which it may be entitled;
  8. That the approved company shall make available to the department and the authority all of its records pertaining to the reinvestment project, including but not limited to payroll records, records relating to the expenditure of eligible equipment and related costs, and approved costs, and any other records pertaining to the project as the authority or the department may require;
  9. That the authority may share information with the department for the purposes of monitoring and enforcing the terms of the reinvestment agreement;
  10. That the agreement shall not be transferred or assigned by the approved company without the expressed written consent of the authority; and
  11. Any other provisions not inconsistent with this subchapter and determined to be necessary or appropriate by the parties to the reinvestment agreement.

HISTORY: Enact. Acts 2003, ch. 148, § 8, effective June 24, 2003; 2005, ch. 85, § 585, effective June 20, 2005; 2006 (1st Ex. Sess), ch. 2, § 62, effective June 28, 2006; 2009 (1st Ex. Sess.), ch. 1, § 4, effective June 26, 2009; 2021 ch. 185, § 124, effective June 29, 2021.

154.34-090. Certification of the tax liability of approved company. [Effective until June 29, 2021]

By October 1 of each year, the Department of Revenue of the Commonwealth shall certify to the authority, in the form of an annual report, aggregate tax credits claimed on tax returns filed during the fiscal year ending June 30 of that year by approved companies with respect to their reinvestment projects under this subchapter and KRS 141.415 and shall certify to the authority, within ninety (90) days from the date an approved company has filed its state tax return, when an approved company has taken inducements equal to its approved costs.

History. Enact. Acts 2003, ch. 148, § 9, effective June 24, 2003; 2005, ch. 85, § 586, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 63, effective June 28, 2006; 2009 (1st Ex. Sess.), ch. 1, § 6, effective June 26, 2009.

Legislative Research Commission Note.

(6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 7, provides that, notwithstanding the amendments contained in Sections 1 to 6 of that Act (which includes this statute), “all reinvestment projects preliminarily approved on or after the effective date of this Act shall not be eligible for final approval until July 1, 2010”; and 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 8, provides that, notwithstanding the amendments in Sections 1 to 6 of that Act or the repeals in Section 114 of that Act, “all reinvestment projects preliminarily or finally approved prior to the effective date of this Act shall be governed by Subchapter 34 of KRS Chapter 154 as it existed prior to the effective date of this Act.”

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

154.34-090. Certification of the tax liability of approved company. [Effective June 29, 2021]

By October 1 of each year, the department shall certify to the authority, in the form of an annual report, aggregate tax credits claimed on tax returns filed during the fiscal year ending June 30 of that year by approved companies with respect to their reinvestment projects under this subchapter and KRS 141.415 and shall certify to the authority, within ninety (90) days from the date an approved company has filed its state tax return, when an approved company has taken incentives equal to its approved costs.

HISTORY: Enact. Acts 2003, ch. 148, § 9, effective June 24, 2003; 2005, ch. 85, § 586, effective June 20, 2005; 2006 (1st Ex. Sess.), ch. 2, § 63, effective June 28, 2006; 2009 (1st Ex. Sess.), ch. 1, § 6, effective June 26, 2009; 2021 ch. 185, § 125, effective June 29, 2021.

154.34-100. Short title for KRS 154.34-010 to 154.34-100.

KRS 154.34-010 to 154.34-100 shall be known as the Kentucky Reinvestment Act.

History. Enact. Acts 2003, ch. 148, § 10, effective June 24, 2003.

154.34-110. Purpose of subchapter — Expenditure and employment retention requirements for recovery of costs and tax incentives — Legislative findings. [Effective until June 29, 2021]

  1. The purpose of this subchapter is to provide a means for the Commonwealth to promote job retention by providing incentives for existing businesses to reinvest in existing manufacturing operations in Kentucky.
    1. To qualify for the incentives provided in this subchapter, an approved company shall: (2) (a) To qualify for the incentives provided in this subchapter, an approved company shall:
      1. Incur eligible equipment and related costs of at least two million five hundred thousand dollars ($2,500,000);
      2. Agree to maintain a full-time employment base of at least eighty-five percent (85%) at the facility on the date of preliminary approval; and
      3. Not have been awarded incentives under Subchapter 26 of this chapter for a period of at least five (5) years prior to applying for incentives under this subchapter.
    2. An approved company meeting the expenditure and employment retention requirements established by this subsection shall be eligible to recover up to fifty percent (50%) of the amount expended for eligible equipment and related costs, and up to one hundred percent (100%) of job skills upgrade training costs. The actual amount that an approved company may recover shall be negotiated with the authority, and may be less than the maximum amount for which the approved company is eligible.
  2. An approved company shall be eligible for tax incentives of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040 and the limited liability entity tax imposed under KRS 141.040 1 on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the eligible project, as set forth in KRS 154.34-120 .
  3. The General Assembly finds and declares that:
    1. The general welfare and material well-being of the citizens of the Commonwealth depend in large measure upon the reinvestment and development of existing industry in the Commonwealth;
    2. It is in the best interest of the Commonwealth to induce reinvestment in existing manufacturing facilities within the Commonwealth in order to advance the public purposes of relieving unemployment by preserving jobs that may be lost if not for the incentives to be offered by the authority to approved companies, and by preserving and creating sources of tax revenues for the support of public services provided by the Commonwealth; and
    3. The authority prescribed by this subchapter and the purposes to be accomplished under this subchapter are proper governmental and public purposes for which public moneys may be expended.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 2, effective June 26, 2009.

Legislative Research Commission Note.

(6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 7, provides that, notwithstanding the amendments contained in Sections 1 to 6 of that Act (which includes this statute), “all reinvestment projects preliminarily approved on or after the effective date of this Act shall not be eligible for final approval until July 1, 2010”; and 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 8, provides that, notwithstanding the amendments in Sections 1 to 6 of that Act or the repeals in Section 114 of that Act, “all reinvestment projects preliminarily or finally approved prior to the effective date of this Act shall be governed by Subchapter 34 of KRS Chapter 154 as it existed prior to the effective date of this Act.”

154.34-110. Purpose of subchapter — Expenditure and employment retention requirements for recovery of costs and tax incentives — Legislative findings. [Effective June 29, 2021]

  1. The purpose of this subchapter is to provide a means for the Commonwealth to promote job retention by providing incentives for existing businesses to reinvest in existing operations in Kentucky for eligible companies.
    1. To qualify for the incentives provided in this subchapter, an approved company shall: (2) (a) To qualify for the incentives provided in this subchapter, an approved company shall:
      1. Incur eligible equipment and related costs of at least one million dollars ($1,000,000) for leased projects and at least two million five hundred thousand dollars ($2,500,000) for all other reinvestment projects;
      2. Agree to maintain a full-time employment base of at least eighty-five percent (85%) at the facility on the date of preliminary approval; and
      3. Not have been awarded incentives under Subchapter 26 of this chapter for a period of at least five (5) years prior to applying for incentives under this subchapter.
    2. An approved company meeting the expenditure and employment retention requirements established by this subsection shall be eligible to recover up to fifty percent (50%) of the amount expended for eligible equipment and related costs. The actual amount that an approved company may recover shall be negotiated with the authority, and may be less than the maximum amount for which the approved company is eligible.
  2. An approved company shall be eligible for incentives under this subchapter as follows: tax incentives of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040 and the limited liability entity tax imposed under KRS 141.040 1 on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the eligible project, as set forth in KRS 154.34-120 .
  3. The General Assembly finds and declares that:
    1. The general welfare and material well-being of the citizens of the Commonwealth depend in large measure upon the reinvestment and development of existing industry in the Commonwealth;
    2. It is in the best interest of the Commonwealth to induce reinvestment in existing facilities of eligible companies within the Commonwealth in order to advance the public purposes of relieving unemployment by preserving jobs that may be lost if not for the incentives to be offered by the authority to approved companies, and by preserving and creating sources of tax revenues for the support of public services provided by the Commonwealth; and
    3. The authority prescribed by this subchapter and the purposes to be accomplished under this subchapter are proper governmental and public purposes for which public moneys may be expended.
  4. On or before November 1, 2021, and each November 1 thereafter, the authority shall submit an overview report to the Interim Joint Committee on Appropriations and Revenue and the Governor on the success or failure of each completed project in order to determine the effectiveness of the program. The report shall include but not be limited to the following information:
    1. The number of applications receiving preliminary approval during the fiscal year;
    2. The number of final approvals issued during the fiscal year;
    3. The total amount of eligible equipment and other costs projected by the approved company at preliminary approval;
    4. The total amount of eligible equipment and other costs actually incurred by the approved company at final approval;
    5. The total number of full time jobs required to be preserved or retained as a result of the reinvestment project;
    6. The total actual number of full-time jobs reported by the reinvestment project as being preserved or retained on an annual basis;
    7. The maximum approved costs that may be recovered by the approved companies for the reinvestment projects; and
    8. The location of the reinvestment projects receiving preliminary and final approval during the fiscal year.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 2, effective June 26, 2009; 2021 ch. 185, § 126, effective June 29, 2021.

154.34-120. Nonrefundable tax credit for reinvestment project by approved company.

  1. Except as provided in subsection (5) of this section, for taxable years beginning after December 31, 2009, an approved company may be eligible for a nonrefundable credit of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040 , and the limited liability entity tax imposed under KRS 141.040 1 that would otherwise be owed by the approved company to the Commonwealth for the approved company’s tax year, on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the reinvestment project.
  2. The credit allowed the approved company shall be applied against both the income tax imposed by KRS 141.020 or 141.040 , and the limited liability entity tax imposed by KRS 141.040 1, with credit ordering as provided in KRS 141.0205 , for the tax year for which the tax return of the approved company is filed. Any credit not used in the year in which it was first available may be carried forward to subsequent years, provided that no credit may be carried forward beyond the term of the reinvestment agreement.
  3. The approved company shall not be required to pay estimated tax payments under KRS 141.044 on the Kentucky taxable income, Kentucky gross receipts, or Kentucky gross profits generated by or arising from the eligible project.
  4. The credit provided by this section shall be determined as provided in KRS 141.415 .
    1. For an approved company which receives preliminary approval prior to February 1, 2010, the amount of incentives allowed in any year shall not exceed the lesser of the tax liability of the approved company related to the reinvestment project for that taxable year or the approved costs that have not yet been recovered. (5) (a) For an approved company which receives preliminary approval prior to February 1, 2010, the amount of incentives allowed in any year shall not exceed the lesser of the tax liability of the approved company related to the reinvestment project for that taxable year or the approved costs that have not yet been recovered.
    2. For an approved company which receives preliminary approval on or after February 1, 2010, the amount of incentives allowed in any year shall not exceed the lesser of the tax liability of the approved company related to the reinvestment project for that taxable year or twenty percent (20%) of the total amount of the approved costs.
    3. The incentives shall be allowed for each taxable year of the approved company during the term of the reinvestment agreement for which a tax return is filed by the approved company.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 5, effective June 26, 2009; 2010 (1st Ex. Sess.), ch. 2, § 8, effective June 4, 2010; 2019 ch. 151, § 72, effective June 27, 2019.

Legislative Research Commission Note.

(6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 7, provides that, notwithstanding the amendments contained in Sections 1 to 6 of that Act (which includes this statute), “all reinvestment projects preliminarily approved on or after the effective date of this Act shall not be eligible for final approval until July 1, 2010”; and 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 8, provides that, notwithstanding the amendments in Sections 1 to 6 of that Act or the repeals in Section 114 of that Act, “all reinvestment projects preliminarily or finally approved prior to the effective date of this Act shall be governed by Subchapter 34 of KRS Chapter 154 as it existed prior to the effective date of this Act.”

SUBCHAPTER 35. Applied and Basic Research Development

154.35-010. Definitions for subchapter. [Effective until June 29, 2021]

As used in this subchapter, unless the context indicates otherwise:

  1. “Beneficiary of an economic incentive package” means any entity for which any assessment, incentive, inducement, or tax credit is issued or awarded pursuant to KRS 154.22-010 to 154.22-070 , KRS 154.24-010 to 154.24-150 , KRS 154.26-015 to 154.26-100 , and KRS 154.28-010 to 154.28-090 ;
  2. “Board” means the governance board of the Kentucky Science and Technology Council, Inc.;
  3. “Cabinet” means the Cabinet for Economic Development;
  4. “Center” means either or both of the following as the context requires:
    1. “Basic research centers” which means centers under contract with the University of Kentucky and the University of Louisville; and
    2. “Applied research centers” which means centers for applied research and technologies development;
  5. “Commonwealth” means the Commonwealth of Kentucky;
  6. “Council” means the Kentucky Science and Technology Council, Inc.;
  7. “Fund” means the Kentucky Research and Development Infrastructure fund created and established pursuant to KRS 154.35-040 ;
  8. “Infrastructure” means the Kentucky Research and Development Infrastructure;
  9. “Contracting university” means any of the following that contract with the council to operate a center: the University of Kentucky, the University of Louisville, Eastern Kentucky University, Western Kentucky University, Morehead State University, Northern Kentucky University, Murray State University, and Kentucky State University; and
  10. “Secretary” means the secretary of the Cabinet for Economic Development.

History. Enact. Acts 1994, ch. 508, § 48, effective July 15, 1994.

154.35-010. Definitions for subchapter. [Effective June 29, 2021]

As used in this subchapter, unless the context indicates otherwise:

  1. “Beneficiary of an economic incentive package” means any entity for which any assessment, incentive, inducement, or tax credit is issued or awarded pursuant to KRS 154.22-010 to 154.22-070 , KRS 154.24-010 to 154.24-150 , KRS 154.26-015 to 154.26-100 , and KRS 154.28-010 to 154.28-090 ;
  2. “Board” means the governance board of the Kentucky Science and Technology Council, Inc.;
  3. “Cabinet” means the Cabinet for Economic Development;
  4. “Center” means either or both of the following as the context requires:
    1. “Basic research centers” which means centers under contract with the University of Kentucky and the University of Louisville; and
    2. “Applied research centers” which means centers for applied research and technologies development;
  5. “Commonwealth” means the Commonwealth of Kentucky;
  6. “Council” means the Kentucky Science and Technology Council, Inc.;
  7. “Fund” means the Kentucky Research and Development Infrastructure fund created and established pursuant to KRS 154.35-040 ;
  8. “Infrastructure” means the Kentucky Research and Development Infrastructure;
  9. “Contracting university” means any of the following that contract with the council to operate a center: the University of Kentucky, the University of Louisville, Eastern Kentucky University, Western Kentucky University, Morehead State University, Northern Kentucky University, Murray State University, and Kentucky State University;
  10. “Personal protective equipment” has the same meaning as in Section 118 of this Act;
  11. “Secretary” means the secretary of the Cabinet for Economic Development; and
  12. “Vital medications” has the same meaning as in Section 118 of this Act.

HISTORY: Enact. Acts 1994, ch. 508, § 48, effective July 15, 1994; 2021 ch. 185, § 127, effective June 29, 2021.

154.35-020. Kentucky Research and Development Infrastructure — Location of research centers — Integration of basic research centers and applied research centers.

  1. The Kentucky Science and Technology Council, Inc., is authorized to establish the Kentucky Research and Development Infrastructure in accordance with guidelines developed and adopted by the Cabinet for Economic Development and the council. The infrastructure, subject to qualification by the contracting universities in accordance with agreements between the council and the universities, shall consist of up to two (2) basic research centers and up to six (6) applied research centers located as follows:
    1. A basic research center under contract with the University of Kentucky;
    2. A basic research center under contract with the University of Louisville;
    3. An applied research center to serve the central Kentucky area under contract with the University of Kentucky and Eastern Kentucky University;
    4. An applied research center to serve the west central Kentucky area under contract with the University of Louisville and Kentucky State University;
    5. An applied research center to serve the eastern Kentucky area under contract with Morehead State University;
    6. An applied research center to serve the western Kentucky area under contract with Western Kentucky University;
    7. An applied research center to serve the far western Kentucky area under contract with Murray State University; and
    8. An applied research center to serve the northern Kentucky area under contract with Northern Kentucky University.
  2. The basic research centers under contract with the University of Kentucky and the University of Louisville may be integrated with the applied research centers under contract with those institutions.

History. Enact. Acts 1994, ch. 508, § 47, effective July 15, 1994.

154.35-030. Powers and authority of council.

The council shall have all the powers and authority, not explicitly prohibited by statute, necessary and convenient to carry out and effectuate the purposes of KRS 154.35-010 to 154.35-055 , including, but not limited to:

  1. Entering into contracts or agreements necessary or incidental to the performance of its duties, functions, and responsibilities;
  2. Soliciting, borrowing, accepting, receiving, and expending funds from any public or private source, including, but not limited to, general fund appropriations of the Commonwealth of Kentucky, grants or contributions of money, property, labor, or other things of value to be used to carry out the infrastructure’s operations, functions, and responsibilities; and
  3. Negotiating royalty payments on patents and licenses for innovations or inventions arising in the course of research conducted by the infrastructure’s centers.

History. Enact. Acts 1994, ch. 508, § 49, effective July 15, 1994.

154.35-040. Kentucky Research and Development Infrastructure fund.

There is established a fund entitled the “Kentucky Research and Development Infrastructure Fund” for the purposes and benefit of the Kentucky Research and Development Infrastructure. The fund may receive state appropriations, gifts, grants, and any other funds both public and private. Moneys deposited in the fund shall be disbursed by the State Treasurer upon the warrant of the secretary of Finance and Administration Cabinet. Any unallotted or unencumbered balances in the fund shall be invested as provided in KRS 42.500(6), and any income earned from the investments along with the unallotted or unencumbered balances in the fund shall not lapse, and shall be deemed a trust and agency account and made available solely for the purposes and benefits of the Kentucky Research and Development Infrastructure.

History. Enact. Acts 1994, ch. 508, § 50, effective July 15, 1994; 1996, ch. 194, § 65, effective July 15, 1996.

154.35-042. Procedure for making payments into fund. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 508, § 51, effective July 15, 1994) was repealed by Acts 1996, ch. 194, §§ 73 and 74, effective July 15, 1996, retroactive to January 1, 1996.

154.35-044. Allocation of fund moneys by council — Limitations.

The council shall allocate moneys from the fund for the operation of the infrastructure and the centers subject to the following limitations:

  1. The council may retain not more than eight percent (8%) of the deposits into the fund in any budget year for the central administration of the infrastructure;
  2. After payment of expenses for central administration, not more than twenty-five percent (25%) of the remainder of the fund in any budget year shall be allocated to basic research centers and the balance shall be allocated to applied research centers;
  3. Not more than twenty percent (20%) of the total moneys allocated to applied research centers in any budget year shall be allocated to any one (1) applied research center; and
  4. All moneys allocated to the contracting universities for the operation of the centers shall be paid out in accordance with contracts entered into between the council and the universities;
  5. Notwithstanding the provisions of subsections (1) to (3) of this section:
    1. The council may defer the establishment of all centers for up to four (4) years after July 15, 1994 to allow the fund to grow to sufficient size to support operation of the centers; and
    2. The allocation percentage set forth in subsection (3) of this section may be modified by the council with approval of the cabinet for a period of up to four (4) years after the first center is established.

History. Enact. Acts 1994, ch. 508, § 52, effective July 15, 1994.

154.35-046. Establishment of accounts for individual research centers — Report to Legislative Research Commission — Audits.

  1. The council is authorized to establish accounts for each research center approved by the council. Each account shall be kept separately from any other accounts established by the council and shall be kept separately from any other moneys and accounts at participating research institutions.
  2. Each approved center may draw money from its account as approved by the council.
  3. On or before January 5, 1996, and annually on or before January 5 thereafter, the council shall submit to the Legislative Research Commission a written status report on the projects and activities of each center of the infrastructure.
  4. The Auditor of Public Accounts shall be responsible for a biennial financial post audit of the books and records of the infrastructure and each center approved by the infrastructure. The audit shall be conducted in accordance with generally accepted accounting principles and shall be paid for by the infrastructure.

History. Enact. Acts 1994, ch. 508, § 53, effective July 15, 1994.

154.35-050. Functions of basic research centers and applied research centers — Advisory committees — Goal of infrastructure — Centers to retain a contact with experts.

  1. The function of the basic research centers shall be to perform basic research of significant benefit to one (1) or more key industries that have been identified in and targeted by the state’s economic development strategic plan as having major importance to the sustained economic growth of the Commonwealth. The areas of research to be performed by each basic research center shall be set forth in the contract between the council and the contracting university and shall be approved only for those projects for which the center has a commitment from a private sector partner to make use of the results of the research.
  2. The functions of the applied research centers shall be:
    1. To perform applied research, development, and technology transfer on a fee for service basis, to businesses and groups of businesses. For performing this function the center shall give preference to businesses in key industries and networks of businesses;
    2. To provide advice to businesses regarding other areas of business operations necessary for improved performance, including workforce training, total quality assurance, inventory control, and reorganization of the business and workplace; and
    3. To perform applied research and technology development of significant benefit to one (1) or more key industries in areas set forth in the contract between the council and the contracting university.
  3. The council shall appoint advisory committees of persons knowledgeable in each key industry to advise the council and the centers with regard to research needs of the industry and to evaluate research plans and research results.
  4. It shall be the goal of the infrastructure that eighty percent (80%) of the total revenues of each center shall be generated by payments under contracts from private businesses.
  5. To perform the functions set out in this section each center shall retain or contract with scientists, engineers, and other persons having high levels of expertise in appropriate fields of research, including but not limited to, faculty, staff and students of the contracting universities; provided, however, that all contracts with persons employed by the contracting university shall be subject to approval by the council.

History. Enact. Acts 1994, ch. 508, § 54, effective July 15, 1994.

154.35-055. Qualification as contracting university.

Universities individually or jointly eligible to serve as contracting universities for the centers set forth in KRS 154.35-020 may qualify by:

  1. Agreeing to match the moneys allocated to the center by the council from the fund dollar-for-dollar from nonstate, nonagency funds raised by the university for research purposes; provided that for university budget years ending on or before July 1, 1996 a contracting university may provide its matching funds by redirecting previously-budgeted state or agency funds. In the discretion of the council, a university may provide all or part of its match by in-kind contributions of facilities and equipment of equal value.
  2. Providing an operations plan, acceptable to the council, for the center which sets forth staffing, facilities, equipment, anticipated business demand for services, a proposed budget that reflects revenues from all sources including the fund, matching contributions from the contracting university, and anticipated receipts from research contracts with private businesses, and such other matters as directed by the council; and
  3. Entering into a contract with the council which sets forth the terms and conditions upon which the center will be operated, including the operations plan agreed upon by the parties, performance standards, and funding commitments. The contract may extend beyond the end of the budget cycle of the university, may be renewed or extended by the parties, and shall be terminable by the council for nonperformance or unacceptable performance by the university as specified in the contract.

History. Enact. Acts 1994, ch. 508, § 55, effective July 15, 1994.

SUBCHAPTER 40. Eastern Kentucky Exposition Center Corporation

154.40-010. Definitions for KRS 154.40-010 to 154.40-060.

As used in KRS 154.40-010 to 154.40-060 , unless the context indicates otherwise:

  1. “Board” means the board of directors of the Eastern Kentucky Exposition Center Corporation;
  2. “Center” means the Eastern Kentucky Exposition Center; and
  3. “Corporation” means the Eastern Kentucky Exposition Center Corporation.

History. Enact. Acts 2001, ch. 27, § 1, effective June 21, 2001.

Compiler’s Notes.

Section 9 of Chapter 27 of the Acts of the 2001 Regular Session reads: “The Eastern Kentucky Exposition Center Corporation shall be the legal successor to the corporation established by Executive Order 98-1144, dated August 3, 1998, and shall receive and administer all the assets, bank accounts, contracts, and other responsibilities, duties, and obligations of the succeeded corporation.”

154.40-020. Eastern Kentucky Exposition Center Corporation.

  1. The Eastern Kentucky Exposition Center Corporation is created and established as an independent, de jure municipal corporation and political subdivision of the Commonwealth that shall be a public body corporate and politic. The corporation shall develop, operate, and manage the Eastern Kentucky Exposition Center funded by 2000 Ky. Acts ch. 549, Part II, Section F, Item 1(e) and Part II, Section S, Item 2(a)236. The corporation shall be attached to the Tourism, Arts and Heritage Cabinet for administrative purposes.
  2. The corporation shall be a participating agency in the Kentucky Employees Retirement System. Its employees shall be considered state employees for the purpose of participating in the Kentucky Employees Retirement System and shall be entitled to the requirements and benefits provided to other system participants.

History. Enact. Acts 2001, ch. 27, § 2, effective June 21, 2001; 2006, ch. 152, § 12, effective July 12, 2006; 2009, ch. 16, § 40, effective June 25, 2009.

154.40-030. Board of directors.

  1. The corporation shall be governed by a board of directors consisting of seven (7) members appointed as follows:
    1. Three (3) members appointed by the Governor;
    2. Two (2) members appointed by the county judge/executive of Pike County; and
    3. Two (2) members appointed by the mayor of Pikeville.

      Initial appointments shall be for a term expiring November 1, 2003. Thereafter, members shall serve terms of four (4) years beginning November 1, 2003. After a membership term expires, members shall serve until new members are appointed to replace them.

  2. A member may be removed by his or her appointing authority as set forth in subsection (1) of this section, for misfeasance or malfeasance and after being afforded notice, an opportunity for a hearing under KRS Chapter 13B, and a finding of facts. A copy of charges, transcripts of the records of hearings, and findings of fact shall be filed with the Secretary of State.
  3. Members of the board shall serve without compensation, but shall be reimbursed for actual and necessary travel expenses incurred in the performance of their duties. The reimbursement shall be in accordance with administrative regulations promulgated under KRS Chapter 13A by the Finance and Administration Cabinet.

History. Enact. Acts 2001, ch. 27, § 3, effective June 21, 2001; 2011, ch. 85, § 1, effective June 8, 2011.

154.40-040. Powers of board — Executive director.

  1. The board may develop articles of incorporation and appropriate documentation to establish its existence as a corporation under KRS 58.180 .
  2. A quorum of the board shall consist of four (4) members, with a majority of members present authorized to act upon any matter legally before the corporation.
  3. The board may enact bylaws concerning the election of officers and other administrative procedures it deems necessary.
  4. The board may adopt administrative regulations under KRS Chapter 13A to govern the operation, maintenance, or use of property under its custody and control.
  5. Minutes and records of all meetings of the board shall be kept, and all official actions shall be recorded.
  6. The board may establish an executive committee from among its membership with full authority to act between meetings of the board to the extent delegated by vote of a majority of the members of the board.
  7. The board may employ a full-time executive director who shall hold office at its pleasure.
    1. The executive director shall act under the direction of the board in employing necessary staff to perform the corporation’s duties and exercise its powers.
    2. The executive director shall keep all minutes, records, and orders of the corporation and shall be responsible for the preservation of all the documents, which shall be public records under KRS 61.870 to 61.884 .

History. Enact. Acts 2001, ch. 27, § 4, effective June 21, 2001.

154.40-050. Powers and duties of corporation.

The Eastern Kentucky Exposition Center Corporation shall have the following powers and duties:

  1. The corporation shall supervise the design, construction, and operation of the Eastern Kentucky Exposition Center and shall provide all management functions for the facility and for any other property acquired or leased in accordance with its powers established in this section.
  2. The corporation shall promote the growth and development of the convention, trade, tourism, hotel, restaurant, and entertainment industry in eastern Kentucky, Pike County, and the Commonwealth through utilization of the center.
  3. The corporation shall have the exclusive control of all exhibitions, performances, and concessions in the Eastern Kentucky Exposition Center. The corporation shall have a prior lien upon the property of any private exhibitor, concessionaire, or other person holding an exhibition or performance or operating a concession in the center and may sell the property upon ten (10) days’ notice to satisfy any indebtedness.
  4. The corporation shall participate with local hotels and the travel industry to develop tourist packages and additional services to attract conferences and conventions to the region.
  5. The corporation may take, acquire, and hold property, and all interests therein, by deed, purchase, gift, devise, bequest, or lease or by transfer from the State Properties and Buildings Commission and may dispose of any property so acquired in any manner provided by law.
  6. The corporation may levy a surcharge on tickets for functions held within the center to contribute to operating revenue.
  7. The corporation may sue and be sued and maintain and defend legal actions in its corporate name.

History. Enact. Acts 2001, ch. 27, § 5, effective June 21, 2001.

154.40-060. Use of revenues and funds — Annual audit.

  1. All revenues derived by the corporation from the use of Eastern Kentucky Exposition Center, all contributions to the center from other sources, and any revenues derived by the corporation from any other source shall be used solely for the expenses of the center, including payment on debt; the cost of management and operation of its facilities; the creation of an adequate reserve for repair, replacement, debt service, and capital improvements; the procurement of insurance; and promotional activities.
  2. The Auditor of Public Accounts shall conduct an annual audit of all funds of the corporation and its affiliated entities, if any, and report annually to the Governor and the Legislative Research Commission.

History. Enact. Acts 2001, ch. 27, § 6, effective June 21, 2001.

SUBCHAPTER 45. Enterprise Zone Development

154.45-001. Purpose of Enterprise Zone Program. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.650.

This section (Enact. Acts 1982, ch. 131, § 1, effective July 15, 1982) was repealed by Acts 2005, ch. 168, § 156, effective March 18, 2005.

154.45-010. Definitions for subchapter 45 of KRS Chapter 154. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.655.

This section (Enact. Acts 1982, ch. 131, § 2, effective July 15, 1982; 1986, ch. 30, § 2, effective July 15, 1986; 1992, ch. 35, § 2, effective July 14, 1992; 2000, ch. 465, § 3, effective April 21, 2000; 2005, ch. 168, § 48, effective March 18, 2005) was repealed by Acts 2005, ch. 168, § 159, effective December 31, 2007.

154.45-020. Application for designation as enterprise zone — Interlocal governmental agreement — Application to amend boundaries of existing zone — Joint applications. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.660.

This section (Enact. Acts 1982, ch. 131, § 3, effective July 15, 1982) was repealed by Acts 2005, ch. 168, § 156, effective March 18, 2005.

154.45-030. Boundary changes effective upon written approval of authority — Contents of application — Requirements for authority’s approval. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.662.

This section (Enact. Acts 1986, ch. 30, § 4, effective July 15, 1986) was repealed by Acts 2005, ch. 168, § 156, effective March 18, 2005.

154.45-040. Areas eligible for designation as enterprise zone. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.665.

This section (Enact. Acts 1982, ch. 131, § 4, effective July 15, 1982) was repealed by Acts 2005, ch. 168, § 156, effective March 18, 2005.

154.45-050. Number of enterprise zones limited — Preferred areas — Effect of revocation — Retention of certification and eligibility for tax exemption after removal of designation. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.670.

This section (Enact. Acts 1982, ch. 131, § 5, effective July 15, 1982; 1986, ch. 30, § 5, effective July 15, 1986; 1992, ch. 35, § 6, effective July 14, 1992; 2005, ch. 168, § 49, effective March 18, 2005) was repealed by Acts 2005, ch. 168, § 159, effective December 31, 2007.

154.45-060. Enterprise Zone Authority of Kentucky — Membership — Terms — Meetings — Compensation — Staff. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.675.

This section (Enact. Acts 1982, ch. 131, § 6, effective July 15, 1982; 1986, ch. 30, § 6, effective July 15, 1986; 1992, ch. 35, § 7, effective July 14, 1992; 1998, ch. 426, § 110, effective July 15, 1998; 2005, ch. 85, § 587, effective June 20, 2005; 2005, ch. 99, § 125, effective June 20, 2005; 2005, ch. 168, § 50, effective March 18, 2005) was repealed by Acts 2005, ch. 168, § 156, effective December 31, 2007.

154.45-070. Duties of authority. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.680.

This section (Enact. Acts 1982, ch. 131, § 7, effective July 15, 1982; 1986, ch. 30, § 7, effective July 15, 1986; 1992, ch. 35, § 8, effective July 14, 1992; 2005, ch. 85, § 588, effective June 20, 2005; 2005, ch. 168, § 51, effective June 20, 2005) was repealed by Acts 2005, ch. 168, § 159, effective December 31, 2007.

154.45-080. Master business license. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.685.

This section (Enact. Acts 1982, ch. 131, § 8, effective July 15, 1982) was repealed by Acts 2005, ch. 168, § 156, effective March 18, 2005.

154.45-090. Tax advantages, credits, and exemptions for qualified businesses. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.690.

This section (Enact. Acts 1982, ch. 131, § 9, effective July 15, 1982; 1986, ch. 30, § 9, effective July 15, 1986; 1986, ch. 431, § 8, effective July 15, 1986; 1988, ch. 113, § 2, effective July 15, 1988; 1992, ch. 35, § 10, effective July 14, 1992; 2003, ch. 150, § 1, effective June 24, 2003) was repealed by Acts 2005, ch. 168, § 159, effective December 31, 2007.

154.45-100. Neighborhood enterprise association corporations — Establishment — Certification — Land owned by state and local governments to be leased to corporation — Tax exemption. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.700.

This section (Enact. Acts 1982, ch. 131, § 11, effective July 15, 1982) was repealed by Act 2005, ch. 168, § 156, effective March 18, 2005.

154.45-110. Duties of Department of Revenue — Report to General Assembly on fiscal impact of Enterprise Zone Program. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 154.705.

This section (Enact. Acts 1986, ch. 30, § 12, effective July 15, 1986; 1992, ch. 35, § 12, effective July 14, 1992; 2005, ch. 85, § 589, effective June 20, 2005) was repealed by Act 2005, ch. 168, § 159, effective December 31, 2007.

154.45-120. Education Cabinet to verify employment information of qualified businesses. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 35, § 13, effective July 14, 1992; 1998, ch. 426, § 111, effective July 15, 1998; 2006, ch. 211, § 76, effective July 12, 2006) was repealed by Acts 2005, ch. 168, § 159, effective December 31, 2007.

SUBCHAPTER 47. Forest Resources Development

General Provisions

154.47-005. Definitions for subchapter.

As used in this subchapter, unless the context clearly indicates otherwise:

  1. “Approved network” means a flexible manufacturing network approved by the cabinet in accordance with KRS 154.47-040 ;
  2. “Cabinet” means the Cabinet for Economic Development;
  3. “Center” means the Quicksand Wood Utilization Center located in Breathitt County, Kentucky;
  4. “Certified tree farmer” means a person whose tree farm is certified by the Kentucky Tree Farm Committee and approved by the American Forest Foundation;
  5. “Flexible manufacturing network” or “network” means an affiliation of secondary wood products businesses as provided by KRS 154.47-040 ;
  6. “Forest steward” means a person whose forest property is certified as a stewardship forest and approved by the Division of Forestry of the Department for Natural Resources;
  7. “Procurement area” means an area specified by the applicant in a radius of miles from the applicant’s site of operations from which the applicant acquires raw wood products;
  8. “Secondary wood products industry” means businesses that compose that segment of the forest products industry that manufacture, assemble, process, or produce wood into a finished or semifinished product; however, the “secondary wood products industry” does not include primary wood products operations such as logging, sawmilling, chip milling, veneer milling, or pulp milling. Businesses that include both primary and secondary wood products operations are deemed to be within the secondary wood products industry only in regard to their secondary wood products operations; and
  9. “Wood industry hub” or “hub” means a system in which the technical and workforce training needs of the secondary wood products industry are integrated.

HISTORY: Enact. Acts 1994, ch. 224, § 1, effective July 15, 1994; 2013, ch. 49, § 3, effective June 25, 2013; 2017 ch. 117, § 16, effective June 29, 2017.

154.47-010. Legislative findings.

  1. The General Assembly of the Commonwealth of Kentucky finds that the forests of the Commonwealth provide abundant, renewal timber resources that historically have been underdeveloped, underutilized, and poorly managed, but which have proven to be resilient; and that, with proper planning, management, harvesting, value-added processing and manufacturing, and marketing, these resources will continue to grow in importance to the Commonwealth’s economy.
  2. The General Assembly further finds that through proper attention and direction by the agencies of the Commonwealth and its public educational institutions working in partnership with secondary wood products businesses, the secondary wood products industry as a key industrial sector of the Commonwealth’s future economic growth and health, should prosper through the generation of new and expanding secondary wood products manufacturers by supporting improved management and harvesting practices, by developing and implementing workers’ training programs to upgrade the skills of Kentuckians employed in the wood products processing and manufacturing industry, by assisting the private sector to adapt existing manufacturing systems to new or improved technologies and world class management practices for the purposes of increasing product quality and productivity of Kentucky’s wood products manufacturers and processors and enhancing the global competitiveness of Kentucky secondary wood products industries.

History. Enact. Acts 1994, ch. 224, § 2, effective July 15, 1994.

Kentucky Wood Products Competitiveness Corporation

154.47-015. Kentucky Wood Products Competitiveness Corporation — Governing board. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 224, § 3, effective July 15, 1994; 2006, ch. 211, § 77, effective July 12, 2006; 2009, ch. 11, § 44, effective June 25, 2009) was repealed by Acts 2013, ch. 49, § 10, effective June 25, 2013.

154.47-020. Meetings of board — Compensation — Officers. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 224, § 4, effective July 15, 1994) was repealed by Acts 2013, ch. 49, § 10, effective June 25, 2013.

154.47-025. Functions, duties, and responsibilities of board — Authority for administrative regulations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 224, § 5, effective July 15, 1994; 2005, ch. 123, § 19, effective June 20, 2005; 2010, ch. 24, § 204, effective July 15, 2010) was repealed by Acts 2013, ch. 49, § 10, effective June 25, 2013.

154.47-030. Board’s authority to contract. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 224, § 6, effective July 15, 1994) was repealed by Acts 2013, ch. 49, § 10, effective June 25, 2013.

154.47-035. Biennial status reports — Recommendation to General Assembly on hubs. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 224, § 7, effective July 15, 1994) was repealed by Acts 2013, ch. 49, § 10, effective June 25, 2013.

Secondary Wood Products

154.47-040. Flexible manufacturing networks.

  1. Three (3) or more secondary wood products businesses may establish a flexible manufacturing network for the purposes deemed appropriate by those businesses upon application to the cabinet, and, if approved, may become eligible for business incentives and priority consideration for state economic development loans and grants.
  2. Information concerning the various secondary wood products requirements of state capital construction and renovation projects shall be maintained by the Finance and Administration Cabinet’s Department for Facilities and Support Services. This information shall be made available to any secondary wood industry business that seeks business with state agencies. Applications of secondary wood products businesses as prescribed in subsection (1) of this section shall be approved or disapproved by the cabinet.
  3. Any business firm that is a member of an approved network as set forth in this section shall be eligible for priority consideration for financial incentives, including loans, grants, and tax credits programs under the authority of the Kentucky Economic Development Finance Authority as set forth in this chapter.
  4. Nothing contained in this section shall be so construed as waiving standard eligibility requirements and sound business qualifications applicable to any business making an application to the Kentucky Economic Development Finance Authority for state financial assistance programs under its authority and responsibility.

History. Enact. Acts 1994, ch. 224, § 8, effective July 15, 1994; 1998, ch. 414, § 19, effective July 15, 1998; 2013, ch. 49, § 4, effective June 25, 2013.

154.47-045. Procedures for state agencies with respect to capital construction or renovation projects involving secondary wood products — Corporation’s role in bid solicitations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 224, § 9, effective July 15, 1994; 2000, ch. 225, § 4, effective July 14, 2000) was repealed by Acts 2013, ch. 49, § 10, effective June 25, 2013.

154.47-050. Design, development, use, and sale of Kentucky-made furniture and other wood products by Kentucky Department of Parks.

The Kentucky Department of Parks of the Tourism, Arts and Heritage Cabinet shall, whenever practicable:

  1. Develop and design Kentucky-made furniture for use in state parks;
  2. Make state parks facilities living showrooms for Kentucky furniture and other wood products; and
  3. Establish retail showrooms where Kentucky-made furniture and other wood products can be displayed for sale to, or order by, park visitors.

History. Enact. Acts 1994, ch. 224, § 10, effective July 15, 1994; 1998, ch. 48, § 14, effective July 15, 1998; 2005, ch. 95, § 35, effective June 20, 2005; 2009, ch. 16, § 41, effective June 25, 2009; 2013, ch. 49, § 5, effective June 25, 2013.

154.47-055. Integrated workforce training program.

  1. Notwithstanding the provisions of KRS Chapter 151B, the University of Kentucky, Eastern Kentucky University, Morehead State University, and the Kentucky Community and Technical College System in conjunction with the Department of Workforce Investment in the Education and Workforce Development Cabinet may develop an integrated program and curricula for workforce training in the area of secondary wood products manufacturing, including nondegree and degree courses of study.
  2. The integrated workforce training program and the curricula shall be designed in a manner that shall provide postsecondary, nondegree and degree level students with the contemporary skills needed for employment in the secondary wood industry.

History. Enact. Acts 1994, ch. 224, § 11, effective July 15, 1994; 1997 (1st Ex. Sess.), ch. 1, § 56, effective May 30, 1997; 2013, ch. 49, § 6, effective June 25, 2013.

154.47-060. Quicksand Wood Utilization Center as hub for industry expansion — Demonstration projects.

  1. The University of Kentucky College of Agriculture may operate the Quicksand Wood Utilization Center, which is located in Breathitt County at the Quicksand Substation of the College of Agriculture of the University of Kentucky, as a hub for the expansion of the secondary wood products industry. The center shall, if utilized as a secondary wood products training center, develop and further workforce training, management skills, technology transfer, and collaborative design and product development mechanisms and processes associated with the secondary wood products industry.
  2. The Quicksand Wood Utilization Center shall serve as a model for the development of additional hubs in other parts of the state.
  3. The cabinet, utilizing facilities of the Quicksand Wood Utilization Center, may conduct demonstration projects at the center, and may provide assistance to rural development organizations by producing building materials, furniture, and other wood products for display and sale at area showrooms and for use by rural development organizations in carrying out approved demonstration projects.

History. Enact. Acts 1994, ch. 224, § 12, effective July 15, 1994; 1996, ch. 145, § 3, effective July 15, 1996; 2013, ch. 49, § 7, effective June 25, 2013.

154.47-065. Cabinet may establish benchmarks for performance measurement — Monitoring by Division of Forestry.

  1. The cabinet, in cooperation with the Kentucky Division of Forestry, may establish objective benchmarks to measure the performance of Kentucky’s forest industries and secondary wood products manufacturers. Criteria used in establishing the benchmarks may include but are not limited to:
    1. Use of the statistical information commonly provided by governmental agencies, or specific data gathered by authorization of the cabinet;
    2. Comparison of regions and areas within the Commonwealth;
    3. Comparison of Kentucky to other states; and
    4. Inclusion of measures of income, earnings, and employment.
  2. The Division of Forestry, with assistance from the Cabinet for Economic Development, may monitor changes in patterns of wood utilization. Information used in determining changes in wood utilization may include: time-series data on the amount of raw timber shipped out of the state in relation to the amount of timber harvested in the state; time-series data on the number of persons employed in the primary and secondary wood products sectors; and time-series data on value-added measures of Kentucky’s forest products. This information may be collected and maintained and may be used to monitor the development of the state’s secondary wood industry.

History. Enact. Acts 1994, ch. 224, § 13, effective July 15, 1994; 2013, ch. 49, § 8, effective June 25, 2013.

154.47-070. Secondary wood products development fund. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 224, § 14, effective July 15, 1994) was repealed by Acts 2013, ch. 49, § 10, effective June 25, 2013.

154.47-075. Training and assistance programs for forest management and worker safety.

  1. The Kentucky Division of Forestry shall develop and implement a program to provide training and assistance to private woodland owners in best management practices of forest development and sustainability. The training and assistance program shall provide advice and assistance in matters relating to productivity, management priorities, stewardship, planning, timber quality, forest improvement, and proper ecological management.
  2. The Labor Cabinet, the Division of Forestry, and representatives from the University of Kentucky, Eastern Kentucky University, and Morehead State University, shall develop and implement a program to provide training and assistance in the area of worker safety for both the primary and secondary wood industry.

History. Enact. Acts 1994, ch. 224, § 18, effective July 15, 1994; 2010, ch. 24, § 205, effective July 15, 2010; 2013, ch. 49, § 9, effective June 25, 2013.

Kentucky Forest Products Council

154.47-100. Definitions for KRS 154.47-105 to 154.47-120. [Repealed]

History. Enact. Acts 1994, ch. 104, § 1, effective July 15, 1994; repealed by 2017 ch. 117, § 49, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1994, ch. 104, § 1, effective July 15, 1994) was repealed by Acts 2017, ch. 117, § 49, effective June 29, 2017.

154.47-105. Legislative findings. [Repealed]

History. Enact. Acts 1994, ch. 104, § 2, effective July 15, 1994; repealed by 2017 ch. 117, § 49, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1994, ch. 104, § 2, effective July 15, 1994) was repealed by Acts 2017, ch. 117, § 49, effective June 29, 2017.

154.47-110. Kentucky Forest Products Council. [Repealed]

History. Enact. Acts 1994, ch. 104, § 3, effective July 15, 1994; 1994, ch. 224, § 19, effective July 15, 1994; 2004, ch. 105, § 18, effective July 13, 2004; 2010, ch. 24, § 206, effective July 15, 2010; repealed by 2017 ch. 117, § 49, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1994, ch. 104, § 3, effective July 15, 1994; 1994, ch. 224, § 19, effective July 15, 1994; 2004, ch. 105, § 18, effective July 13, 2004; 2010, ch. 24, § 206, effective July 15, 2010) was repealed by Acts 2017, ch. 117, § 49, effective June 29, 2017.

154.47-120. Purposes of council. [Repealed]

History. Enact. Acts 1994, ch. 104, § 4, effective July 15, 1994; 1994, ch. 224, § 20, effective July 15, 1994; repealed by 2017 ch. 117, § 49, effective June 29, 2017.

Compiler's Notes

This section (Enact. Acts 1994, ch. 104, § 4, effective July 15, 1994; 1994, ch. 224, § 20, effective July 15, 1994) was repealed by Acts 2017, ch. 117, § 49, effective June 29, 2017.

SUBCHAPTER 48. Environmental Stewardship

Kentucky Environmental Stewardship Act

154.48-010. Definitions for KRS 154.010 to 154.48-035. [Repealed]

History. Enact. Acts 2005, ch. 168, § 143, effective March 18, 2005; 2006, ch. 149, § 222, effective July 12, 2006; 2006, ch. 211, § 78, effective July 12, 2006; 2006 (1st Ex. Sess.), ch. 2, § 64, effective June 28, 2006; 2009, ch. 11, § 45, effective June 25, 2009; 2010, ch. 24, § 207, effective July 15, 2010; Repealed, Acts 2018, ch. 171, § 140, effective April 14, 2018; Repealed, Acts 2018, ch. 207, § 148, effective April 27, 2018; Repealed, Acts 2018, ch. 199, § 37, effective July 14, 2018.

154.48-015. Findings of General Assembly regarding provisions of KRS 154.48-010 to 154.48-035. [Repealed]

HISTORY: Enact. Acts 2005, ch. 168, § 144, effective March 18, 2005; Repealed, Acts 2018, ch. 171, § 140, effective April 14, 2018; Repealed, Acts 2018, ch. 207, § 148, effective April 27, 2018; Repealed, Acts 2018, ch. 199, § 37, effective July 14, 2018.

154.48-020. Administrative regulations establishing standards for preliminary approval of eligible companies and projects — Review by authority and final approval of companies and projects — Authority’s meetings to be governed by provisions of Open Meetings Act. [Repealed]

History. Enact. Acts 2005, ch. 168, § 145, effective March 18, 2005; 2007, ch. 69, § 6, effective June 26, 2007; Repealed, Acts 2018, ch. 171, § 140, effective April 14, 2018; Repealed, Acts 2018, ch. 207, § 148, effective April 27, 2018; Repealed, Acts 2018, ch. 199, § 37, effective July 14, 2018.

154.48-025. Environmental stewardship agreements — Final approval of application — Tax credits — Sum of total inducements — Limitation on use of recycling credit — Consent of authority required for transfer of agreement. [Repealed]

History. Enact. Acts 2005, ch. 168, § 146, effective March 18, 2005; 2006 (1st Ex. Sess.), ch. 2, § 65, effective June 28, 2006; Repealed, Acts 2018, ch. 171, § 140, effective April 14, 2018; Repealed, Acts 2018, ch. 207, § 148, effective April 27, 2018; Repealed, Acts 2018, ch. 199, § 37, effective July 14, 2018.

154.48-030. Department to make annual report on income tax credits and returns to authority. [Repealed]

History. Enact. Acts 2005, ch. 168, § 147, effective March 18, 2005; 2006 (1st Ex. Sess.), ch. 2, § 66, effective June 28, 2006; Repealed, Acts 2018, ch. 171, § 140, effective April 14, 2018; Repealed, Acts 2018, ch. 207, § 148, effective April 27, 2018; Repealed, Acts 2018, ch. 199, § 37, effective July 14, 2018.

154.48-035. Short title for KRS 154.48-010 to 154.48-035 — Kentucky Environmental Stewardship Act. [Repealed]

History. Enact. Acts 2005, ch. 168, § 148, effective March 18, 2005; Repealed, Acts 2018, ch. 171, § 140, effective April 14, 2018; Repealed, Acts 2018, ch. 207, § 148, effective April 27, 2018; Repealed, Acts 2018, ch. 199, § 37, effective July 14, 2018.

SUBCHAPTER 50. Industrial Development

154.50-020. Legislative findings of fact — Purpose of KRS 154.50-020 to 154.50-030.

  1. It is hereby found, determined, and declared as a legislative finding of fact that the general welfare of the citizens of the Commonwealth is directly related to the economic and employment opportunities available to them, and it is the legitimate business of the Kentucky state government to provide to the maximum extent practicable, the impetus for and assistance to economic development in the Commonwealth through the provision of monetary assistance to industrial entities for industrial improvement projects which will directly and proximately cause the improvement and retention of industry and employment in the Commonwealth.
  2. It is hereby further found, determined, and declared as a legislative finding of fact that the improvement and retention of manufacturing, processing, and assembling facilities will proximately result in:
    1. The creation or retention of employment opportunities; or
    2. The creation or retention of tax revenues to the Commonwealth, as a taxing entity, which would not be available to the citizens of the Commonwealth or received by the Commonwealth but for the improvement and retention of the facilities and which creation or retention of employment opportunities or tax revenues are hereby found, determined, and declared to constitute receipt of value by the Commonwealth for the monetary assistance which it may provide pursuant to KRS 154.50-020 to 154.50-030 to industrial entities undertaking industrial improvement projects located in this state.
  3. It is the purpose of KRS 154.50-020 to 154.50-030 to promote and foster the gainful employment, business, and economic development opportunities and general welfare of the citizens and residents of the Commonwealth which will result in the alleviation or prevention of unemployment and the general stability of the economy of Kentucky. This purpose will be accomplished by the creation of the authority to enable the Commonwealth to provide monetary assistance to industrial entities, for the improvement and retention of industrial manufacturing, processing, or assembling facilities in the Commonwealth which, in return, will create or retain employment opportunities for citizens of the Commonwealth or will create or retain tax revenues. The authority granted by KRS 154.50-020 to 154.50-030 and the purposes to be accomplished by KRS 154.50-020 to 154.50-030 are hereby declared to be public purposes for which public money may be expended.

History. Enact. Acts 1990, ch. 306, § 2, effective July 13, 1990.

Compiler’s Notes.

This section was formerly compiled as KRS 154.770.

154.50-030. Expenditure of funds to industrial entities.

  1. In carrying out the purposes of KRS 154.50-020 to 154.50-030 , and in providing for the expenditure of funds to industrial entities to assist in the implementation of an industrial improvement project, the cabinet may find that the cost may be paid in whole or in part out of funds directly appropriated to the responsible state agency for that purpose or by any other method approved by the Governor and the General Assembly.
  2. In carrying out the purposes of KRS 154.50-020 to 154.50-030 , and in providing for the expenditure of funds to industrial entities which are appropriated by the General Assembly to assist in the implementation of an industrial improvement project, the cabinet may determine the amount of monetary assistance to be provided by reference to any formula or other objective standard which is based on target levels of employment, projected interest rates or other financing costs, projected levels of investment by the industrial entity or any other objective criteria deemed appropriate by the cabinet under the circumstances.
    1. In carrying out the purposes of KRS 154.50-020 to 154.50-030 , the expenditure of funds to industrial entities to assist in the implementation of an industrial improvement project may only be made if: (3) (a) In carrying out the purposes of KRS 154.50-020 to 154.50-030 , the expenditure of funds to industrial entities to assist in the implementation of an industrial improvement project may only be made if:
      1. There is a finding by the cabinet, that, based upon reasonable investigation, the industrial improvement project cannot be funded out of existing appropriations and is in the best interest of the Commonwealth because it is reasonably expected to result in the creation or retention in whole or in part of employment opportunities or of tax revenues;
      2. The industrial improvement project is separately approved in writing by the Governor;
      3. The industrial improvement project is separately approved by the General Assembly; and
      4. There is an agreement in writing by the subject industrial entity to engage in the industrial improvement project setting forth the basis upon which the amount of monetary assistance provided pursuant to KRS 154.50-020 to 154.50-030 is determined.
    2. It is hereby determined and declared as a legislative finding of fact that the provisions and requirements of paragraph (a) of this subsection provide for the receipt by the Commonwealth of fair market value for any monetary assistance provided pursuant to KRS 154.50-020 to 154.50-030.

History. Enact. Acts 1990, ch. 306, § 3, effective July 13, 1990.

Compiler’s Notes.

This section was formerly compiled as KRS 154.780.

Acquisition of Land for Industrial Development

154.50-301. Citation.

KRS 154.50-301 to 154.50-346 shall be known as the Local Industrial Development Authority Act.

History. Enact. Acts 1970, ch. 114, § 1.

Compiler’s Notes.

This section was formerly compiled as KRS 152.930 .

NOTES TO DECISIONS

1.In General.

The Local Industrial Development Authority Act is permissive and does not require any city to act pursuant to the legislation in order to pursue local economic development. Dannheiser v. City of Henderson, 4 S.W.3d 542, 1999 Ky. LEXIS 114 ( Ky. 1999 ).

Opinions of Attorney General.

A fiscal court does not have general final approval authority regarding projects recommended by a local industrial development authority; however, a given project, because of circumstances impinging upon a county, might need fiscal court approval for those matter affecting the county. OAG 93-11 .

Research References and Practice Aids

Northern Kentucky Law Review.

Ruh & Lockaby, Balancing Private Property Rights with “Public Use”: A Survey of Kentucky Courts’ Interpretation of the Power of Eminent Domain., 32 N. Ky. L. Rev. 743 (2005).

154.50-310. Definitions for KRS 154.50-301 to 154.50-346.

As used in KRS 154.50-301 to 154.50-346 , unless the context otherwise requires:

  1. “Authority” means a local industrial development authority as established by KRS 154.50-301 to 154.50-346 .
  2. “Industrial sites, parks and subdivisions” means land and improvements thereon, including buildings, fixtures, and equipment, suitable for one (1) or more manufacturers, industries, or commercial establishments.
  3. “Development of land” means the improvement and provision of facilities essential to the use of land for manufacturing, industrial, and commercial purposes such as, but not limited to, core drilling, grading, sewerage systems, water systems, access roads, rail lines, electrical lines, layout planning, and the construction and equipping of buildings.
  4. “Governmental units” means any city or the combination of any two (2) or more cities, any county or combination of two (2) or more counties, or any city or cities acting jointly with any county or counties.
  5. “Person” means any individual, firm, partnership, corporation, company, association, joint stock association, or body politic, and includes any trustee, receiver, assignee, or other similar representative thereof.

History. Enact. Acts 1970, ch. 114, § 3; 1994, ch. 199, § 1, effective July 15, 1994.

Compiler’s Notes.

This section was formerly compiled as KRS 152.810 .

NOTES TO DECISIONS

1.Constitutionality.

The Kentucky Local Industrial Authority Act is unconstitutional to the extent that it grants a city or other governmental unit the unconditional right to condemn private property which is to be conveyed by the local industrial development authority for private development for industrial or commercial purposes. Owensboro v. McCormick, 581 S.W.2d 3, 1979 Ky. LEXIS 252 ( Ky. 1979 ).

2.Severability.

The provisions of Acts 1970, ch. 114 relating to the power of condemnation as a means of furthering private development are severable from the remainder of the act, therefore, the remaining portions of the act are not affected by the decision. Owensboro v. McCormick, 581 S.W.2d 3, 1979 Ky. LEXIS 252 ( Ky. 1979 ).

Opinions of Attorney General.

A local industrial authority qualifies as a “local development agency” for a K.I.D.F.A. loan under KRS 154.010 and 154.080 (now repealed). OAG 75-73 .

An industrial development authority has no authority to provide loans to farmers and members of the agricultural community since such a purpose is not one of those listed in KRS 154.50-313 . OAG 82-420 .

Research References and Practice Aids

Cross-References.

Eminent domain, property acquired for industrial development, exemption, KRS 416.670 .

Northern Kentucky Law Review.

Comment, Kentucky’s Power of Eminent Domain, 7 N. Ky. L. Rev. 421 (1980).

154.50-313. Purpose.

The purpose of KRS 154.50-301 to 154.50-346 is to create local industrial development authorities to aid in the acquisition, retention and development of land for industrial and commercial purposes in Kentucky; to aid in the development and promotion of industrial sites, parks and subdivisions for accommodating industrial and commercial needs; to promote and stimulate the acquisition, retention and development of land for industrial and commercial purposes in Kentucky by other local development organizations both public and private.

History. Enact. Acts 1970, ch. 114, § 2.

Compiler’s Notes.

This section was formerly compiled as KRS 152.820 .

Opinions of Attorney General.

An industrial development authority has no authority to provide loans to farmers and members of the agricultural community since such a purpose is not one of those listed in this section. OAG 82-420 .

McCracken County Fiscal Court has the authority under Kentucky law to offer a grant of a short term loan to a start-up business if done for a legitimate public purpose. OAG 2008-06 .

154.50-316. Establishment of local industrial development authority.

  1. Any governmental unit by act of its legislative body may establish a nonprofit industrial development authority to be composed of not less than six (6) and not more than eight (8) members.
  2. The authority shall be a body politic and corporate with the usual corporate attributes and in its corporate name may sue and be sued, contract and be contracted with, and do all things reasonable or necessary to effectively carry out the duties prescribed by KRS 154.50-301 to 154.50-346 .

History. Enact. Acts 1970, ch. 114, § 4; 2002, ch. 104, § 1, effective July 15, 2002.

Compiler’s Notes.

This section was formerly compiled as KRS 152.830 .

Opinions of Attorney General.

A local industrial authority qualifies as a “local development agency” for a K.I.D.F.A. loan under KRS 154.010 and 154.080 (now repealed). OAG 75-73 .

A local industrial development authority would constitute an independent political subdivision or hybrid state-corporate agency under subsection (2) of this section; accordingly, an assistant commonwealth attorney may simultaneously hold membership in a local industrial development authority without violating Const., § 165 and KRS 61.080 . OAG 82-11 .

An industrial development authority has no authority to provide loans to farmers and members of the agricultural community since such a purpose is not one (1) of those listed in KRS 154.50-313 . OAG 82-420 .

A fiscal court does not have general final approval authority regarding projects recommended by a local industrial development authority; however, a given project, because of circumstances impinging upon a county, might need fiscal court approval for those matter affecting the county. OAG 93-11 .

154.50-320. Functions of authority.

  1. The purpose, duties, and powers of the authority shall be to:
    1. Acquire, retain, and develop land for industrial and commercial purposes in Kentucky; aid in the development and promotion of industrial sites, parks, and subdivisions to meet industrial and commercial needs in Kentucky.
    2. Encourage the acquisition, retention, and development of land for industrial and commercial needs in Kentucky by other local development organizations, both public and private.
    3. Cooperate with the United States Army Corps of Engineers and other federal agencies in formulating development plans and in acquiring and developing land for industrial and commercial purposes in accordance with these plans.
    4. Acquire by contract, lease, purchase, gift, condemnation, or otherwise any real or personal property, or rights therein, necessary or suitable for establishing industrial sites, parks, or subdivisions. The authority may dispose of any real or personal property, or rights therein, which in the opinion of the authority are no longer needed to carry out the purposes of KRS 154.50-301 to 154.50-346 . The authority may lease, sell, or convey any or all industrial sites, parks, and subdivisions owned or optioned by it to any public or private organization, governmental unit, or industry for the purpose of constructing and/or operating any manufacturing, industrial, or commercial facility. Provided, however, that no sale or conveyance of any land shall be made to a private organization or industry without such organization or industry first having executed a written contract with the authority providing that if no actual construction of a manufacturing, industrial, or commercial facility, as set forth in the executed contract, is commenced within ten (10) years, the organization or industry shall offer to reconvey the land, free and clear of liens and encumbrances, to the authority, and should the authority accept the offer of reconveyance, it shall return to the organization or industry ninety-five percent (95%) of the purchase price paid therefor.
  2. Upon the adoption by the authority of a resolution reciting that property is needed for industrial sites, parks, and subdivisions and cannot be acquired by negotiation and purchase at its fair market value, the governmental units in which such land is located may direct and institute condemnation proceedings in the name of such governmental units, for the use and benefit of the authority. The procedure for condemnation shall conform to the procedure set out in the Eminent Domain Act of Kentucky. Upon acquisition of the property, the governmental unit shall convey the property to the authority upon payment by the authority to the governmental unit of an amount of money equal to the judgment and costs paid by the governmental unit.

History. Enact. Acts 1970, ch. 114, § 5; 1976, ch. 140, § 66; 1978, ch. 384, § 41, effective June 17, 1978; 1994, ch. 199, § 2, effective July 15, 1994; 1996, ch. 194, § 72, effective July 15, 1996; 2002, ch. 47, § 1, effective July 15, 2002.

Compiler’s Notes.

This section was formerly compiled as KRS 152.840 .

Opinions of Attorney General.

Ordinance establishing an industrial development authority which gives the city commission the right to reject what it considers to be a detrimental industry is in conflict with this section. OAG 74-864 .

Research References and Practice Aids

Cross-References.

Eminent Domain Act of Kentucky, KRS 416.540 to 416.680 .

Northern Kentucky Law Review.

Comment, Kentucky’s Power of Eminent Domain, 7 N. Ky. L. Rev. 421 (1980).

154.50-323. Limitations on condemnation powers.

Notwithstanding any other provision or section of KRS 154.50-301 to 154.50-346 , no governmental unit shall have the power to condemn property under KRS 154.50-301 to 154.50-346 unless the governmental unit has first given proper public notice as required by law stating the specific purpose for which the property to be condemned shall be used and said purposes shall be pleaded and proved in such condemnation action. The property shall be developed within a period of five (5) years pursuant to the purpose stated, and the failure of the authority to so develop shall entitle the person or persons whose property was condemned to repurchase the property at the price the authority paid to the governmental unit for the same. The person from whom the land is taken by condemnation shall have the right to reacquire the land as aforementioned by application to the court of competent jurisdiction, if such procedure be necessary, and shall be entitled to recovery of his costs and reasonable attorney’s fees necessary to reacquire said land.

History. Enact. Acts 1970, ch. 114, § 13.

Compiler’s Notes.

This section was formerly compiled as KRS 152.850 .

Opinions of Attorney General.

The word “developed” as used in this section does not extend beyond the local authority’s making the land available for industry as described in KRS 154.50-310 . OAG 77-646 .

154.50-326. Membership of authority.

  1. The members of the authority shall be appointed as follows:
    1. If the authority is established by a city, the members shall be appointed by the mayor of the city;
    2. If the authority is established by a county, the members shall be appointed by the county judge/executive;
    3. If the authority is established as a joint city-county industrial development authority, one-half (1/2) of the members shall be appointed by the mayor and one-half (1/2) of the members by the county judge/executive. If the authority is composed of seven (7) members, the mayor and the county judge/executive shall jointly appoint the seventh member;
    4. If a combination of cities and/or counties establishes a joint industrial development authority, or if an established joint industrial development authority is altered by adding a new city or county as a participating member, the mayors and/or county judges/executive involved shall:
      1. Jointly choose the members, and shall jointly choose successors; or
      2. Choose the members and successors in a manner established by an agreement entered into between the legislative bodies of the affected cities and counties.
  2. Members of the authority shall serve for a term of four (4) years each, and until their successors are appointed and qualified. If the authority is composed of six (6) members, initial appointments shall be made so that two (2) members are appointed for two (2) years, two (2) members for three (3) years, and two (2) members for four (4) years. If the authority is composed of seven (7) members, initial appointments shall be made so that two (2) members are appointed for two (2) years, two (2) members for three (3) years, and three (3) members for four (4) years. If the authority is composed of eight (8) members, initial appointments shall be made so that two (2) members are appointed for two (2) years, three (3) members for three (3) years, and three (3) members for four (4) years. Upon expiration of these staggered terms, successors shall be appointed for a term of four (4) years.
  3. An industrial development authority member may be replaced by the appointing authority upon a showing to the appointing authority of misconduct as an authority member or upon conviction of a felony.

History. Enact. Acts 1970, ch. 114, § 6; 1992, ch. 86, § 1, effective July 14, 1992; 2002, ch. 104, § 2, effective July 15, 2002; 2004, ch. 43, § 1, effective July 13, 2004.

Compiler’s Notes.

This section was formerly compiled as KRS 152.860 .

Opinions of Attorney General.

Ordinance establishing an industrial development authority which gives the city commission the right to approve appointments made by the mayor is in conflict with this section. OAG 74-864 .

An ordinance to establish an industrial development authority which contains a conflict of interest provision is in conflict with this section as it prohibits conduct not prohibited by this section. OAG 74-864 .

154.50-330. Withdrawal by governmental unit — Dissolution of authority.

  1. In the event that a joint industrial development authority is created by cities and/or counties, and thereafter a city or cities or county or counties desire to withdraw from participation, then the remaining participants may jointly choose a successor member or members of the authority. No such withdrawing city or cities or county or counties shall be entitled to the return of any money or property advanced such authority.
  2. Notwithstanding the provisions of subsection (1) of this section, any cities and/or counties which have established a joint industrial development authority as provided for herein, may provide by a mutual written agreement between such cities and/or counties, and the joint industrial development authority, that such joint industrial development authority may be dissolved and may further provide that upon such complete termination, all funds, property and other assets held by the joint industrial development authority shall be returned to such cities and/or counties in the same proportion as contributions of funds, property and other assets were made by such cities and/or counties. This section shall not apply and no dissolution shall be made until such time as all legal obligations of the joint industrial development authority shall be satisfied and all existing commitments fulfilled.

History. Enact. Acts 1970, ch. 114, § 7; 1978, ch. 384, § 42, effective June 17, 1978.

Compiler’s Notes.

This section was formerly compiled as KRS 152.870 .

154.50-333. Quorum — Effect of tie vote.

A quorum for the transacting of the business of the authority shall consist of a majority of the members. Meetings of the authority may be called by the chairman or by a majority of the members. In case of tie voting by the authority, the issue shall be deemed to have failed passage.

History. Enact. Acts 1970, ch. 114, § 8; 2002, ch. 104, § 3, effective July 15, 2002.

Compiler’s Notes.

This section was formerly compiled as KRS 152.880 .

154.50-336. Authority officers, employees — Expenses of members.

  1. Members of the authority shall serve without compensation but shall be reimbursed for any actual and necessary expenses incurred by them in the conduct of the affairs of the authority. The authority shall, upon the appointment of its members, organize and elect officers. The authority shall choose a chairman and vice chairman who shall serve for terms of one (1) year. The authority may fix a salary for the secretary-treasurer, and the secretary-treasurer shall execute an official bond to be set and approved by the authority, and the cost thereof shall be paid by the authority.
  2. The authority may employ necessary counsel, agents and employees to carry out its work and functions and prescribe such rules and regulations as it deems necessary.
  3. The secretary-treasurer shall keep the minutes of all meetings of the authority and shall also keep a set of books showing the receipts and expenditures of the authority. He shall preserve on file duplicate vouchers for all expenditures and shall present to the authority, upon request, complete reports of all financial transactions and the financial condition of the authority. Such books and vouchers shall at all times be subject to examination by the legislative body or bodies by whom the authority was created. He shall transmit at least once annually a detailed report of all acts and doings of the authority to the legislative body or bodies by whom the authority was created.

History. Enact. Acts 1970, ch. 114, § 9.

Compiler’s Notes.

This section was formerly compiled as KRS 152.890 .

154.50-340. Authority’s power to receive appropriations and to finance by borrowing or by issuance of revenue bonds.

  1. In order to provide money for the purchase of property necessary to develop industrial sites, parks, and subdivisions, the legislative body of any governmental unit creating the industrial development authority under KRS 154.50-301 to 154.50-346 may make an annual appropriation from its general fund for such industrial development. Any appropriation shall be made by the legislative body in such amounts, in such proportion, and upon such terms as the legislative body may determine. All funds derived from such appropriation shall be turned over to the industrial development authority for the purpose of carrying out the duties and powers of the authority.
  2. The authority may borrow money and issue notes and other financial instruments on its own credit. The authority may pledge the appropriations or income anticipated, or the industrial sites, parks, and subdivisions, or both, as security for its debts.
  3. The authority is authorized to defray the cost of acquiring and developing any industrial sites, parks, and subdivisions through the issuance of revenue bonds issued under the terms, conditions, and procedures set forth in KRS 103.200 to 103.285 .
  4. The authority may, as an alternative method and in addition to all other methods provided by law, acquire and develop land for industrial and commercial use, and issue revenue bonds in connection therewith under the terms and provisions of KRS Chapter 58; and under said law the term “governmental agency” means the authority and the term “public project” means industrial sites, parks, and subdivisions.

History. Enact. Acts 1970, ch. 114, § 10; 1994, ch. 199, § 3, effective July 15, 1994.

Compiler’s Notes.

This section was formerly compiled as KRS 152.900 .

Opinions of Attorney General.

A provision in an ordinance to establish an industrial development authority which requires an annual audit of the authority is valid under this section. OAG 74-864 .

Pursuant to subsection (2) of this section, the local authority, in order to construct a building to be leased, may, in the exercise of its sound business judgment, borrow the construction money from a bank in excess of a one-year period of time, without issuing revenue bonds, even though the anticipated revenue for the year in which the obligation is created, including the rentals, are not sufficient to pay off the aggregate loan and under subsection (2) of this section, the authority may “pledge” (mortgage) the industrial site and buildings constructed thereon, and may assign the rental payments. OAG 81-38 .

154.50-343. Title to property — Authority’s property, revenues are tax-exempt.

The title to all property acquired by the authority shall vest in the authority. All property acquired for the development of industrial sites, parks and subdivisions shall be exempt from taxation to the same extent as other property used for public purposes. All revenues collected by the authority shall also be exempt from taxation.

History. Enact. Acts 1970, ch. 114, § 11.

Compiler’s Notes.

This section was formerly compiled as KRS 152.910 .

154.50-346. Declaration of public purpose.

The acquisition of any lands for the purpose of developing industrial sites, parks and subdivisions is hereby declared to be a public and governmental function, exercised for a public purpose, and a matter of public necessity, and such lands and other property, easements and privileges acquired in the manner and for the purposes enumerated in KRS 154.50-301 to 154.50-346 shall and are hereby declared to be acquired and used for public and governmental purposes and as a matter of public necessity.

History. Enact. Acts 1970, ch. 114, § 12.

Compiler’s Notes.

This section was formerly compiled as KRS 152.920 .

NOTES TO DECISIONS

1.Public Purpose.

Neither “public benefit” nor “public purpose” is equivalent to “public use” in the eminent domain sense. Owensboro v. McCormick, 581 S.W.2d 3, 1979 Ky. LEXIS 252 ( Ky. 1979 ).

Research References and Practice Aids

Northern Kentucky Law Review.

Comment, Kentucky’s Power of Eminent Domain, 7 N. Ky. L. Rev. 421 (1980).

154.50-350. Compliance with KRS 65A.010 to 65A.090.

Any authority shall comply with the provisions of KRS 65A.010 to 65A.090 .

History. Enact. Acts 2013, ch. 40, § 57, effective March 21, 2013.

SUBCHAPTER 54. International Trade Development

154.54-020. Kentucky Export Council created — Members — Meetings — Quorum — Regulations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1984, ch. 312, § 1, effective July 13, 1984; 1992, ch. 105, § 41, effective July 14, 1992) was repealed by Acts 1994, ch. 277, § 11, effective July 14, 1994.

This section was formerly compiled as KRS 154.750.

154.54-030. Duties — Reports — Interagency cooperation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1984, ch. 312, § 2, effective July 13, 1984; 1992, ch. 105, § 41, effective July 14, 1992) was repealed by Acts 1994, ch. 277, § 11, effective July 14, 1994.

This section was formerly compiled as KRS 154.755.

SUBCHAPTER 60. Emergency Small Business Jobs Stimulus Act

154.60-005. Subchapter title.

This subchapter shall be known as the Small Business Tax Credit and Selling Farmer Tax Credit Programs.

History. Enact. Acts 2014, ch. 128, § 3, effective July 15, 2014; 2020 ch. 91, § 22, effective April 15, 2020.

154.60-010. Definitions for subchapter. [Effective until June 29, 2021]

As used in this subchapter:

  1. “Authority” means the Kentucky Economic Development Finance Authority;
    1. “Average hourly wage” means the per-hour wage earned by a full-time employee, including wages, tips, overtime, bonuses, and commissions, as reflected on the employee’s federal form W-2 wage and tax statement. (2) (a) “Average hourly wage” means the per-hour wage earned by a full-time employee, including wages, tips, overtime, bonuses, and commissions, as reflected on the employee’s federal form W-2 wage and tax statement.
    2. “Average hourly wage” does not include employee benefits as defined in KRS 154.32-010 , including health insurance and reimbursements;
  2. “Base employment” means:
    1. For the first application for which credits are approved, the number of full-time employees employed on the day prior to the work start date of the new employee filling the earliest eligible position identified on the application;
    2. For subsequent applications, the number of full-time employees employed on the day prior to the work start date of the new employee filling the earliest eligible position identified on the initial approved application plus each eligible position for which a credit has been approved; and
    3. For applications from businesses involved in mergers, acquisitions, or federal tax identification number changes, base employment may be adjusted by the Cabinet for Economic Development;
  3. “Eligible position” means each position that:
    1. Is filled by a full-time employee and that increases the total employment of the small business above its base employment; and
    2. Carries an average hourly wage of no less than one hundred fifty percent (150%) of the federal minimum wage;
  4. “Full-time employee” means a person employed by a small business for at least an average of thirty-five (35) hours per week and subject to the state tax imposed by KRS 141.020 ;
  5. “Qualifying equipment or technology” means equipment or technology that has been approved by the Office of Entrepreneurship; and
  6. “Small business” means any business entity organized for profit that has been approved by the Office of Entrepreneurship, including a sole proprietorship, partnership, limited partnership, corporation, limited liability company, joint venture, association, or cooperative, that has fifty (50) or fewer employees working more than thirty-five (35) hours per week, whether within or outside the Commonwealth, at the time it applies.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 65, effective June 26, 2009; 2010 (1st Ex. Sess.), ch. 2, § 11, effective June 4, 2010; 2014, ch. 128, § 1, effective July 15, 2014; 2018 ch. 199, § 35, effective July 14, 2018; 2020 ch. 76, § 4, effective July 15, 2020.

Legislative Research Commission Note.

(6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 73, provided that this statute and KRS 154.60-020 and 154.60-030 “shall be known as the Emergency Small Business Stimulus Act.”

154.60-010. Definitions for subchapter. [Effective June 29, 2021]

As used in this subchapter:

  1. “Authority” means the Kentucky Economic Development Finance Authority;
    1. “Average hourly wage” means the per-hour wage earned by a full-time employee, including wages, tips, overtime, bonuses, and commissions, as reflected on the employee’s federal form W-2 wage and tax statement. (2) (a) “Average hourly wage” means the per-hour wage earned by a full-time employee, including wages, tips, overtime, bonuses, and commissions, as reflected on the employee’s federal form W-2 wage and tax statement.
    2. “Average hourly wage” does not include employee benefits as defined in KRS 154.32-010 , including health insurance and reimbursements;
  2. “Base employment” means:
    1. For the first application for which credits are approved, the number of full-time employees employed on the day prior to the work start date of the new employee filling the earliest eligible position identified on the application;
    2. For subsequent applications, the number of full-time employees employed on the day prior to the work start date of the new employee filling the earliest eligible position identified on the initial approved application plus each eligible position for which a credit has been approved; and
    3. For applications from businesses involved in mergers, acquisitions, or federal tax identification number changes, base employment may be adjusted by the Cabinet for Economic Development;
  3. “Eligible position” means each position that:
    1. Is filled by a full-time employee and that increases the total employment of the small business above its base employment; and
    2. Carries an average hourly wage of no less than one hundred fifty percent (150%) of the federal minimum wage;
  4. “Full-time employee” means a person employed by a small business for at least an average of thirty-five (35) hours per week and subject to the state tax imposed by KRS 141.020 ;
  5. “Qualifying equipment or technology” means equipment or technology that has been approved by the Office of Entrepreneurship and Small Business Innovation; and
  6. “Small business” means any business entity organized for profit that has been approved by the Office of Entrepreneurship and Small Business Innovation, including a sole proprietorship, partnership, limited partnership, corporation, limited liability company, joint venture, association, or cooperative, that has fifty (50) or fewer employees working more than thirty-five (35) hours per week, whether within or outside the Commonwealth, at the time it applies.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 65, effective June 26, 2009; 2010 (1st Ex. Sess.), ch. 2, § 11, effective June 4, 2010; 2014, ch. 128, § 1, effective July 15, 2014; 2018 ch. 199, § 35, effective July 14, 2018; 2020 ch. 76, § 4, effective July 15, 2020; 2021 ch. 185, § 128, effective June 29, 2021.

154.60-020. Small Business Development Credit Program — Application requirements — Maximum credits permitted. [Effective until June 29, 2021]

  1. The authority shall develop a Small Business Development Credit Program in consultation with the Office of Entrepreneurship to assist new or existing small businesses operating in the Commonwealth. The nonrefundable credit shall be allowed against the taxes imposed by KRS 141.020 or 141.040 , and 141.040 1. The ordering of credits shall be as provided in KRS 141.0205 .
  2. The authority shall determine the terms, conditions, and requirements for application for the credit, in consultation with the Office of Entrepreneurship, subject to the provisions of subsection (3) of this section. The application shall contain identification information about the number of eligible positions created and filled, a calculation of the base employment of the small business, verification of investment of five thousand dollars ($5,000) or more in qualifying equipment or technology, and other information the authority may specify to determine eligibility for the credit.
    1. The maximum amount of credits that may be committed in each fiscal year by the authority and shared between the small business tax credit program and the Selling Farmer Tax Credit Program shall be capped at three million dollars ($3,000,000). (3) (a) The maximum amount of credits that may be committed in each fiscal year by the authority and shared between the small business tax credit program and the Selling Farmer Tax Credit Program shall be capped at three million dollars ($3,000,000).
    2. In order to be eligible to receive final approval for a credit, a small business shall, within the twenty-four (24) month period immediately preceding the application submission date:
      1. Create and fill one (1) or more eligible positions over the base employment; and
      2. Invest five thousand dollars ($5,000) or more in qualifying equipment or technology.
    3. Each eligible position that is created and filled shall be maintained for twelve (12) months. If a full-time employee filling a newly created eligible position ceases to be employed by the small business for any reason, that employee shall be replaced within forty-five (45) days in order for the eligible position to maintain its eligible status, in addition to meeting all other applicable requirements.
    4. The small business shall submit all information necessary for the authority to determine credit eligibility for each year, and the amount of credit for which the small business is eligible.
    5. The maximum amount of credit for each small business for each year shall not exceed twenty-five thousand dollars ($25,000).
    6. The credit shall be claimed on the tax return for the year during which the credit was approved. Unused credits may be carried forward for up to five (5) years.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 66, effective June 26, 2009; 2010 (1st Ex. Sess.), ch. 2, § 12, effective June 4, 2010; 2014, ch. 128, § 2, effective July 15, 2014; 2018 ch. 199, § 36, effective July 14, 2018; 2019 ch. 172, § 6, effective March 26, 2019; 2020 ch. 91, § 23, effective April 15, 2020.

Legislative Research Commission Notes.

(7/15/2014). In codification, the Reviser of Statutes has relocated the phrase “within a six (6) month period” from the position it had in 2014 Ky. Acts ch. 128, sec. 2, in subsection (3)(b) of this statute. The relocation did not change the meaning of subsection (3)(b).

(6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 73, provided that this statute and KRS 154.60-010 and 154.60-030 “shall be known as the Emergency Small Business Stimulus Act.”

154.60-020. Small Business Development Credit Program — Application requirements — Maximum credits permitted. [Effective June 29, 2021]

  1. The authority shall develop a Small Business Development Credit Program in consultation with the Office of Entrepreneurship and Small Business Innovation to assist new or existing small businesses operating in the Commonwealth. The nonrefundable credit shall be allowed against the taxes imposed by KRS 141.020 or 141.040 , and 141.040 1. The ordering of credits shall be as provided in KRS 141.0205 .
  2. The authority shall determine the terms, conditions, and requirements for application for the credit, in consultation with the Office of Entrepreneurship and Small Business Innovation, subject to the provisions of subsection (3) of this section. The application shall contain identification information about the number of eligible positions created and filled, a calculation of the base employment of the small business, verification of investment of five thousand dollars ($5,000) or more in qualifying equipment or technology, and other information the authority may specify to determine eligibility for the credit.
    1. The maximum amount of credits that may be committed in each fiscal year by the authority and shared between the small business tax credit program and the Selling Farmer Tax Credit Program shall be capped at three million dollars ($3,000,000). (3) (a) The maximum amount of credits that may be committed in each fiscal year by the authority and shared between the small business tax credit program and the Selling Farmer Tax Credit Program shall be capped at three million dollars ($3,000,000).
    2. In order to be eligible to receive final approval for a credit, a small business shall, within the twenty-four (24) month period immediately preceding the application submission date:
      1. Create and fill one (1) or more eligible positions over the base employment; and
      2. Invest five thousand dollars ($5,000) or more in qualifying equipment or technology.
    3. Each eligible position that is created and filled shall be maintained for twelve (12) months. If a full-time employee filling a newly created eligible position ceases to be employed by the small business for any reason, that employee shall be replaced within forty-five (45) days in order for the eligible position to maintain its eligible status, in addition to meeting all other applicable requirements.
    4. The small business shall submit all information necessary for the authority to determine credit eligibility for each year, and the amount of credit for which the small business is eligible.
    5. The maximum amount of credit for each small business for each year shall not exceed twenty-five thousand dollars ($25,000).
    6. The credit shall be claimed on the tax return for the year during which the credit was approved. Unused credits may be carried forward for up to five (5) years.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 66, effective June 26, 2009; 2010 (1st Ex. Sess.), ch. 2, § 12, effective June 4, 2010; 2014, ch. 128, § 2, effective July 15, 2014; 2018 ch. 199, § 36, effective July 14, 2018; 2019 ch. 172, § 6, effective March 26, 2019; 2020 ch. 91, § 23, effective April 15, 2020; 2021 ch. 185, § 129, effective June 29, 2021.

154.60-030. Administrative regulations.

The authority shall establish the procedures and standards for a small business development credit program by the promulgation of administrative regulations in accordance with KRS Chapter 13A.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 67, effective June 26, 2009.

Legislative Research Commission Note.

(6/26/2009). 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 73, provided that this statute and KRS 154.60-010 and 154.60-020 “shall be known as the Emergency Small Business Stimulus Act.”

154.60-040. Selling Farmer Tax Credit Program — Definitions — Purposes — Application requirements — Incentives offered to eligible companies under tax credit program to be negotiated by Cabinet for Economic Development and subject to approval by the authority — After approval of application, authority to transmit required information to the Department of Revenue — Beginning January 1, 2020, authority may approve selling farmer tax credit.

  1. As used in this section:
      1. “Agricultural assets” means: (a) 1. “Agricultural assets” means:
        1. Agricultural land which has been appraised by an individual certified by the Real Estate Appraisers Board created under KRS 324A.015 ; and
        2. Buildings, facilities, machinery, equipment, agricultural products, or horticultural products, if:
          1. Owned by the same selling farmer owning the agricultural land sold to a beginning farmer;
          2. Purchased at the same time and in the same transaction with the agricultural land; and
          3. Purchased with the intent to be used on the purchased agricultural land.
      2. “Agricultural assets” does not mean:
        1. A personal residence or any other residential structures; and
        2. Any agricultural assets that have been previously included in an approved application for the Kentucky selling farmer tax credit;
    1. “Agricultural land” means:
      1. Any land located entirely in Kentucky that is zoned or permitted for farming, if the jurisdiction where the land is located has enacted an ordinance for zoning or permitting; and
        1. Is a tract of land of at least ten (10) contiguous acres in area for a farming operation for agricultural products; or 2. a. Is a tract of land of at least ten (10) contiguous acres in area for a farming operation for agricultural products; or
        2. Is a tract of land of at least five (5) contiguous acres in area for a farming operation for aquaculture or horticultural products; owned by the selling farmer prior to the sale;
    2. “Agricultural products” means:
      1. Livestock or livestock products;
      2. Poultry or poultry products;
      3. Milk or milk products; or
      4. Field crops and other crops, including timber if approved by the authority;
    3. “Aquaculture” means the farming of fish, crustaceans, mollusks, aquatic plants, algae, or other similar organisms;
    4. “Farm product” means aquaculture, agricultural products, or horticultural products;
      1. “Farming operation” means the management and operation of agricultural assets for the purpose of pursuing a profitable commercial business venture to produce agricultural products, horticultural products, or both for sale. (f) 1. “Farming operation” means the management and operation of agricultural assets for the purpose of pursuing a profitable commercial business venture to produce agricultural products, horticultural products, or both for sale.
      2. “Farming operation” does not mean any:
        1. Hobby farm, as determined by the Internal Revenue Service;
        2. Nonprofit venture;
        3. Farm used primarily for storing agricultural products or horticultural products; or
        4. Farm used to grow or raise agricultural products or horticultural products primarily for use by the immediate family members or owners of the agricultural assets;
    5. “Horticultural products” means orchards, fruits, vegetables, nuts, flowers, or ornamental plants; and
    6. “Immediate family member” means any of the following in relation to any owner or spouse of the owner of the agricultural assets:
      1. Parent or grandparent;
      2. Children or their spouses; or
      3. Siblings or their spouses.
  2. Any incentive offered to an eligible company under the Selling Farmer Tax Credit Program shall be negotiated by Cabinet for Economic Development officials and shall be subject to approval by the authority.
  3. The purpose of the Selling Farmer Tax Credit Program is to promote the continued use of agricultural land in Kentucky for farming purposes by granting a tax credit to a selling farmer who agrees to sell agricultural assets to a beginning farmer.
  4. Selling farmers wanting to sell agricultural assets may be eligible for a tax credit up to five percent (5%) of the selling price of qualifying agricultural assets, subject to:
    1. A twenty-five thousand dollar ($25,000) cap for each taxable year of the selling farmer;
    2. A one hundred thousand dollar ($100,000) lifetime cap for each selling farmer; and
    3. A proration by the authority based on the overall cap shared between the Small Business Tax Credit Program and the Selling Farmer Tax Credit Program cap of three million dollars ($3,000,000) under KRS 154.60-020 .
  5. The tax credit allowed in subsection (4) of this section may be claimed under KRS 141.3841 .
  6. In order to be eligible to receive approval for a tax credit, a selling farmer shall, at a minimum:
      1. a. Be registered with the Kentucky Secretary of State; and (a) 1. a. Be registered with the Kentucky Secretary of State; and
      2. If not required to be registered with the Kentucky Secretary of State, be a resident of Kentucky;

      b. Be in good standing with the Kentucky Secretary of State; or

    1. Prior to a sale of agricultural assets, be a small business with fifty (50) or fewer full-time employees and be the sole legal owner of agricultural assets sold to a beginning farmer;
    2. Not be a farm equipment dealer, livestock dealer, or similar entity primarily engaged in the business of selling agricultural assets for profit and not engaged in farming as a primary business activity;
    3. Not be a bank or any other similar lending or financial institution;
    4. Not be:
      1. An owner, partner, member, shareholder, or trustee;
      2. A spouse of an owner, partner, member, shareholder, or trustee;
      3. An immediate family member of any of the owners, partners, members, shareholders, or trustees;

        of the beginning farmer to whom the selling farmer is seeking to sell agricultural assets;

      1. Demonstrate management and operation of real and personal property for the production of a farm product; (f) 1. Demonstrate management and operation of real and personal property for the production of a farm product;
      2. Execute and effectuate a purchase contract to sell agricultural land with a beginning farmer for an amount evidenced by an appraisal; and
    5. Sell, convey, and transfer ownership of related agricultural assets to a beginning farmer.
  7. In order for the selling farmer to qualify for the tax credit, a beginning farmer shall, at a minimum:
      1. a. Be registered with the Kentucky Secretary of State; and (a) 1. a. Be registered with the Kentucky Secretary of State; and
      2. If not required to be registered with the Kentucky Secretary of State, be a resident of Kentucky;

      b. Be in good standing with the Kentucky Secretary of State; or

    1. Possess all licenses, registrations, and experience needed to legally operate a farming operation within the jurisdiction for the agricultural land purchased from a selling farmer;
    2. Not previously have held an ownership interest in agricultural land used for a farming operation for a period exceeding ten (10) years prior to entering into an agreement to purchase agricultural assets from a selling farmer;
    3. Not have an ownership interest in any of the agricultural assets included in the transaction with the selling farmer; and
    4. Provide a majority of the management, and materially participate in the operation of a for-profit farming operation located in Kentucky and purchased from a selling farmer, with the intent to continue a for-profit farming operation on the purchased agricultural land for a minimum of five (5) years after the sale date.
  8. The selling farmer shall submit an application after consummation of the sale, transfer of title, and conveyance of agricultural assets together with all information necessary for the authority to determine eligibility for the tax credit.
  9. An application for the selling farmer tax credit shall contain, at a minimum, information about the:
    1. Selling farmer and purchasing beginning farmer eligibility;
    2. Purchase contract and closing statement;
    3. Documentation, such as a deed, title conveyance for the transfer of assets, including verification of Kentucky residency; and
    4. Any other information the authority may require to determine eligibility for the credit.
  10. For each approved application, the authority shall transmit to the Department of Revenue sufficient information about the selling farmer to ensure compliance with this section and KRS 141.3841 , including the amount of approved tax credit allowed to the selling farmer.
  11. Beginning January 1, 2020, the authority may approve selling farmer tax credits.

HISTORY: 2019 ch. 172, § 7, effective March 26, 2019; 2020 ch. 91, § 18, effective April 15, 2020.

SUBCHAPTER 61.

154.___. [Added by 2021 Ky. HB 249]

As used in this subchapter:

  1. “Above-the-line production crew” means employees involved with the production of a motion picture or entertainment production whose salaries are negotiated prior to commencement of production, such as actors, directors, producers, and writers;
  2. “Animated production” means a nationally distributed feature-length film created with the rapid display of a sequence of images using 2-D or 3-D graphics of artwork or model positions in order to create an illusion of movement;
  3. “Approved company” means an eligible company approved for incentives provided under Section 16 and Section 18 of this Act;
  4. “Authority” means the Kentucky Economic Development Finance authority created in KRS 154.20-010 ;
  5. “Below-the-line production crew” means employees involved with the production of a motion picture or entertainment production except above-the-line production crew. “Below-the-line production crew” includes but is not limited to:
    1. Casting assistants;
    2. Costume design;
    3. Extras;
    4. Gaffers;
    5. Grips;
    6. Location managers;
    7. Production assistants;
    8. Set construction staff; and
    9. Set design staff;
  6. “Commonwealth” means the Commonwealth of Kentucky;
  7. “Compensation” means compensation included in adjusted gross income as defined in KRS 141.010 ;
  8. “Documentary” means a production based upon factual information and not subjective interjections;
  9. “Eligible company” means any person that intends to film or produce a motion picture or entertainment production in the Commonwealth;
  10. “Employee” has the same meaning as in KRS 141.010 ;
  11. “Enhanced incentive county” has the same meaning as in KRS 154.32-010 ;
  12. “Feature-length film” means a live-action or animated production that is:
    1. More than thirty (30) minutes in length; and
    2. Produced for distribution in theaters or via digital format, including but not limited to DVD, Internet, or mobile electronic devices;
  13. “Industrial film” means a business-to-business film that may be viewed by the public, including but not limited to videos used for training or for viewing at a trade show;
  14. “Kentucky-based company” has the same meaning as in KRS 164.6011 ;
    1. “Motion picture or entertainment production” means: (15) (a) “Motion picture or entertainment production” means:
      1. The following if filmed in whole or in part, or produced in whole or in part, in the Commonwealth:
        1. A feature-length film;
        2. A television program;
        3. An industrial film; or
        4. A documentary; or
      2. A national touring production of a Broadway show produced in Kentucky.
    2. “Motion picture or entertainment production” does not include the filming or production of obscene material or television coverage of news or athletic events;
  15. “Obscene” has the same meaning as in KRS 531.010 ;
  16. “Person” has the same meaning as in KRS 141.010 ;
    1. “Qualifying expenditure” means expenditures made in the Commonwealth for the following if directly used in or for a motion picture or entertainment production: (18) (a) “Qualifying expenditure” means expenditures made in the Commonwealth for the following if directly used in or for a motion picture or entertainment production:
      1. The production script and synopsis;
      2. Set construction and operations, wardrobe, accessories, and related services;
      3. Lease or rental of real property in Kentucky as a set location;
      4. Photography, sound synchronization, lighting, and related services;
      5. Editing and related services;
      6. Rental of facilities and equipment;
      7. Vehicle leases;
      8. Food; and
      9. Accommodations.
    2. “Qualifying expenditure” does not include Kentucky sales and use tax paid by the approved company on the qualifying expenditure;
    3. “Television program” means any live-action or animated production or documentary, including but not limited to:
  17. “Qualifying payroll expenditure” means compensation paid to above-the-line crew and below-the line crew while working on a motion picture or entertainment production in the Commonwealth if the compensation is for services performed in the Commonwealth;
  18. “Resident” has the same meaning as in KRS 141.010 ;
  19. “Secretary” means the secretary of the Cabinet for Economic Development;
  20. “Tax incentive agreement” means the agreement entered into pursuant to Section 19 of this Act between the authority and the approved company; and
    1. An episodic series;
    2. A miniseries;
    3. A television movie; or
    4. A television pilot;

that is produced for distribution on television via broadcast, cable, or any digital format, including but not limited to cable, satellite, Internet, or mobile electronic devices.

HISTORY: 2021 ch. 156, § 17, effective March 29, 2021.

SUBCHAPTER 80. Water Resources Development

Port and River Development

154.80-100. Statement of purpose.

The purpose of KRS 65.510 to 65.530 , KRS 139.483 , this section, and KRS 154.80-110 to 154.80-130 is to create within the Cabinet for Economic Development to aid in the promotion and development of river-related industry, agriculture, and commerce in Kentucky; to aid in the promotion and development of local port authorities as authorized by KRS 65.510 to 65.650 ; to aid in the promotion and development of industrial districts, parks, and sites for accommodating industrial complexes that utilize the rivers and river-related resources; to analyze, plan, and aid in systematically developing river-related resources by the development of services and facilities; to promote the development of industrial parks and terminal facilities for manufacturing and distribution industries for attracting and serving private and public enterprises that are directly or indirectly river-oriented; to promote the exportation of Kentucky made products in foreign commerce, especially as related to the utilization of the navigable waterways; and to establish the powers necessary or appropriate to carry out and effectuate the purposes of KRS 65.510 to 65.530 , KRS 139.483 , this section, and KRS 154.80-110 to 154.80-130 .

History. Enact. Acts 1966, ch. 64, § 2; 1992, ch. 105, § 36, effective July 14, 1992.

Compiler’s Notes.

This section was formerly compiled as KRS 154.315.

154.80-110. Establishment of foreign trade zone — Application for authorized — Organization under KRS Chapters 271B and 273 not prohibited.

  1. The cabinet may make application to the proper federal authorities for the establishment of a foreign trade zone wherever and whenever such a zone is desirable. KRS 65.510 to 65.530 , KRS 139.483 , KRS 154.80-100 , and KRS 154.80-110 to 154.80-130 will constitute legislative authority and approval of such applications, as required by federal law.
  2. Nothing contained in this section shall be construed to prohibit any corporation organized under KRS Chapters 271B and 273 from being organized and chartered for the purposes of establishing, operating, and maintaining a foreign trade zone within this state pursuant to KRS 271B.18-060 .
  3. As used in this section, “foreign trade zone” means such a zone authorized by 19 U.S.C. sec. 81 .

History. Enact. Acts 1966, ch. 64, § 9; 1984, ch. 305, § 1, effective July 13, 1984; 1992, ch. 105, § 37, effective July 14, 1992.

Compiler’s Notes.

This section was formerly compiled as KRS 154.330.

154.80-120. Power to contract.

The cabinet may enter into any and all contracts in its own name for planning, engineering, promotion, and development, consistent with the purposes of KRS 65.510 to 65.530 , 139.483 , 154.80-100 , and 154.80-110 to 154.80-130 , and may enter into contracts for these purposes with any local port authority authorized by KRS 65.510 to 65.650 or any other public or private organization.

History. Enact. Acts 1966, ch. 64, § 10; 1992, ch. 105, § 38, effective July 14, 1992.

Compiler’s Notes.

This section was formerly compiled as KRS 154.335.

Research References and Practice Aids

Cross-References.

Sales of vessels and maritime supplies exempt from sales and use taxes, KRS 139.483 .

154.80-130. Disbursement of funds.

The cabinet may disburse any and all funds appropriated by the Legislature for purposes consistent with KRS 65.510 to 65.530 , 139.483 , 154.80-100 , and 154.80-110 to 154.80-130 , any funds received from any state agency, and may apply for, receive, and disburse funds from the federal government, or any other public or private organization or agency for carrying out the purposes of KRS 65.510 to 65.530 , 139.483 , 154.80-100 , and 154.80-110 to 154.80-130 .

History. Enact. Acts 1966, ch. 64, § 11; 1992, ch. 105, § 39, effective July 14, 1992.

Compiler’s Notes.

This section was formerly compiled as KRS 154.340.

154.80-140. Riverport marketing assistance trust fund — Contributions — Purpose — Grants — Semiannual report.

  1. There is created the riverport marketing assistance trust fund, to be administered by the Cabinet for Economic Development.
  2. The riverport marketing assistance trust fund may receive appropriations, federal funds, contributions, gifts, and donations.
  3. The purpose of the riverport marketing assistance trust fund shall be to promote and market Kentucky’s riverport to industrial, business, and commercial prospects, to attract economic development. To the extent funds are available, the fund shall make grants to riverport authorities for marketing activities, including research, advertising, participation in trade shows, and preparation of promotional materials. Grants shall not be used for activities such as salaries, administrative expenses, or internal newsletters.
  4. Notwithstanding KRS 45.229 , moneys remaining in the fund at the close of a fiscal year shall not lapse but shall carry forward into the succeeding fiscal year. Interest earned on any moneys in the fund shall accrue to the fund. Amounts from the fund shall be disbursed and expended in accordance with this section.
  5. Grants under this section shall not exceed fifteen thousand dollars ($15,000) per project or thirty thousand dollars ($30,000) per applicant each year. Projects shall be completed within one (1) year of funding. To receive a grant, an applicant shall provide at least a fifty percent (50%) match, which may be obtained from any public or private source.
    1. Grants shall be reviewed and awarded semiannually. (6) (a) Grants shall be reviewed and awarded semiannually.
    2. The Cabinet for Economic Development shall submit all applications to the Water Transportation Advisory Board established by KRS 174.200 for evaluation and recommendations prior to awarding any grant funding under this section.
    3. Higher priority shall be given to applications with a larger share of match money, for those where the match money has already been obtained, and for projects with a detailed riverport marketing plan.
  6. The Cabinet for Economic Development shall on a semiannual basis submit a report detailing all grants awarded under this section to the Water Transportation Advisory Board, the Interim Joint Committee on Transportation, and the Interim Joint Committee on Appropriations and Revenue.

History. Enact. Acts 2010, ch. 56, § 3, effective July 15, 2010.

Waterway Marina Development

154.80-310. Kentucky Waterway Marina Development Program — Powers of cabinet.

  1. There is created within the cabinet a Kentucky Waterway Marina Development Program. The cabinet shall study various plans and recommendations that are proposed concerning marina development along Kentucky navigable waterways. Based on these studies, the cabinet shall formulate a comprehensive plan, recommend state and local legislation for the development of marinas, and coordinate the implementation of the plan and legislation. The cabinet may make grants of money to units of local government for the construction or improvement of any marina, if the grants are consistent with the plans, standards, and criteria established by the cabinet.
  2. If necessary to further the accomplishment of its purposes, the cabinet may do the following:
    1. Conduct all studies necessary for the performance of its duties;
    2. Publicize, advertise, and distribute reports on its purposes, objectives and findings;
    3. Provide recommendations in matters related to its functions and objectives to political subdivisions in and adjacent to the waterway corridor and to other public and private agencies;
    4. If requested, act as a coordinating agency for programs and activities of other public and private organizations that are related to its objectives;
    5. Acquire and dispose of real or personal property by grant, gift, purchase, lease, devise, or otherwise; and
    6. Hold, use, improve, maintain, operate, own, manage, or lease, as lessor or lessee, real or personal property, or any interest in that property.
  3. The cabinet may receive grants and appropriations from federal, state, and local governments, individuals, foundations, and other organizations. The cabinet may enter into agreements or contracts regarding the acceptance or use of these grants and appropriations for the purpose of carrying out its activities under this section.
  4. The goal for any marina project under this section shall be to create employment in the private sector.

History. Enact. Acts 1988, ch. 391, § 1, effective July 15, 1988; 1992, ch. 105, § 40, effective July 14, 1992.

Compiler’s Notes.

This section was formerly compiled as KRS 154.360.

SUBCHAPTER 85. West Kentucky Development

154.85-001. Short title for KRS 154.85-001 to 154.85-085. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 19, effective July 14, 1992.) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-010. Definitions for KRS 154.85-001 to 154.85-085. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 1; 2000, ch. 465, § 2; 2002, ch. 81, § 1) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-015. Creation of West Kentucky Corporation — Purpose — Interim board of directors. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 2) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-020. Eligibility for membership on board of directors and in corporation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 3, effective July 14, 1992.) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-025. Board of directors — Terms of office — Vacancies. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 4, effective July 14, 1992.) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-027. Removal of members — Meetings — Officers. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 5, effective July 14, 1992.) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-030. Disclosure of conflict of interest — Nonparticipation in contract authorization. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 16) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-033. Limitation of liability of corporate members or officers. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 14) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-035. Powers and authority of corporation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 6) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-040. Executive committee — Membership — Powers and duties — Meetings — Expenses. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 7) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-045. Issuance of bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 10) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-050. West Kentucky economic development fund. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 8) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-055. Construction of KRS 154.85-001 to 154.85-085. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 9) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-060. Bonds payable from revenues and assets only. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 11) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-065. Negotiability of obligations of corporation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 12) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-070. Status of obligations as authorized investments. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 13) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-075. Tax-exempt status. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 15) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-080. Disposition of corporation assets upon termination or dissolution. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 17) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

154.85-085. Annual report — Annual audit. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 177, § 18) was repealed by Acts 2007, ch. 47, § 95, effective June 26, 2007.

SUBCHAPTER 90. Additional Types of Development

Northern Kentucky Convention Center

154.90-005. Legislative findings.

The General Assembly finds that a major convention center in Northern Kentucky will serve as a catalyst in the regional development of commerce, and that it will enhance the position of Northern Kentucky as a year round convention and tourist attraction. The General Assembly finds further that the development and governance of a Northern Kentucky convention center is a public purpose of the Commonwealth.

History. Enact. Acts 1992, ch. 99, § 1, effective July 14, 1992.

154.90-010. Northern Kentucky Convention Center Corporation — Board.

  1. The Northern Kentucky Convention Center Corporation is hereby established to develop and manage the Northern Kentucky Convention Center. The corporation shall be attached to the Tourism, Arts and Heritage Cabinet for administrative purposes. The corporation shall be directed by a board consisting of seven (7) members appointed as follows:
    1. The county judge/executives of Kenton, Campbell and Boone Counties, with the approval of their respective fiscal courts, shall each appoint one (1) member to the board. An appointee under this subsection shall have demonstrated successful business experience in a field related to the convention business;
    2. The mayor of the city within which the convention center is located shall appoint one (1) member, with the approval of the city commission; and
    3. The Governor shall appoint three (3) members.
    4. One (1) of the initial appointees of the Governor shall have a one (1) year term, one (1) shall have a two (2) year term, and one (1) shall have a three (3) year term. All other appointments, and all subsequent appointments by the Governor, shall be for four (4) year terms.
    5. Members may be removed by the appointing authority only for cause and after being afforded notice, a hearing, and a finding of fact by the appointing authority. A copy of charges, transcript of the record of the hearings, and findings of fact shall be filed with the Secretary of State.
  2. The Northern Kentucky Convention Center Corporation shall be a body corporate with full corporate powers. A quorum of the corporation shall consist of four (4) members, with a majority of members present authorized to act upon any matter legally before the corporation. Minutes and records shall be kept of all meetings of the corporation and all official actions shall be recorded.
  3. The corporation may enact bylaws concerning the election of officers and other administrative procedures it deems necessary.

History. Enact. Acts 1992, ch. 99, § 2, effective July 14, 1992; 2006, ch. 152, § 7, effective July 12, 2006; 2009, ch. 16, § 42, effective June 25, 2009.

154.90-015. Powers and duties of corporation.

The Northern Kentucky Convention Center Corporation:

  1. Shall supervise the design and construction of the Northern Kentucky Convention Center, and shall provide all management functions for the facility and for any other property acquired or leased pursuant to its powers under this section;
  2. May take, acquire, and hold property, and all interests therein, by deed, purchase, gift, devise, bequest, or lease, or by transfer from the State Property and Buildings Commission, and may dispose of any property so acquired in any manner provided by law.
  3. May issue revenue bonds, subject to procedures which shall be established by the Finance and Administration Cabinet, solely payable from the revenues and other funds pledged for their payment for the purpose of paying all or any part of the cost of any project or for the acquisition of property;
  4. Shall promote the growth and development of the convention trade, tourism, and the hotel, restaurant, and entertainment industry in Northern Kentucky and the Commonwealth, through utilization of the Northern Kentucky Convention Center to enhance these and the public interest;
  5. May adopt administrative regulations, as provided in KRS Chapter 13A, governing the operation, maintenance, or use of property under its custody and control;
  6. May levy a surcharge on tickets for functions held within the center to contribute to operating revenue;
  7. Shall have the exclusive control of all exhibitions, performances, and concessions in the Northern Kentucky Convention Center. The corporation shall have a prior lien upon the property of any private exhibitor, concessionaire, or other person holding an exhibition or performance or operating a concession in the center, and may sell the property upon ten (10) days notice to satisfy any indebtedness:
  8. Shall participate with local hotels and the travel industry to develop tourist packages and additional services to attract conferences and conventions to the region;
  9. May establish an executive committee from among its membership with full authority to act between its meetings to the extent delegated by the corporation; and
  10. May sue and be sued and maintain and defend legal actions in its corporate name.

History. Enact. Acts 1992, ch. 99, § 3, effective July 14, 1992.

154.90-020. Executive director — Use of revenues — Annual audit.

  1. The Northern Kentucky Convention Center Corporation may appoint an executive director, who shall hold office at its pleasure. The executive director shall act under the direction of the board of the corporation in employing necessary staff to perform its duties and exercise its powers as assigned by KRS 154.90-015 .
  2. The executive director shall keep all minutes, records, and orders of the corporation, and shall be responsible for the preservation of all the documents, which are public records subject to KRS 61.870 to 61.884 .
  3. All revenues derived by the corporation from the use of the Northern Kentucky Convention Center, or contributions to the Northern Kentucky Convention Center from other sources as authorized in KRS 154.90-015 shall be used solely to defray the expenses of the Northern Kentucky Convention Center, including payment on debt; the cost of management and operation of its facilities; the creation of an adequate reserve for repair, replacement, debt service, and capital improvements; the procurance of insurance; and promotional activities. Any additional revenues derived by the corporation from any other source shall similarly be used solely for the purposes enumerated in this section. An annual audit of all funds of the corporation and its affiliated entities, if any, shall be made by the State Auditor of Public Accounts, and reported to the Governor.

History. Enact. Acts 1992, ch. 99, § 4, effective July 14, 1992.

SUBCHAPTER 99. Penalties

154.99-012. Penalties for Subchapter 12. [Repealed.]

Compiler’s Notes.

This section was formerly compiled as KRS 152.991 .

This section (Enact. Acts 1984, ch. 296, § 10, effective July 13, 1984) was repealed by Acts 2003, ch. 124, § 45, effective July 1, 2004.

CHAPTER 154A State Lottery

154A.010. Definitions for chapter.

As used in this chapter, unless the context requires otherwise:

  1. “Amateur athletics” means any interscholastic athletics in which the participating athletes are elementary or secondary school students of any public or private institution of learning; any intercollegiate athletics in which the participating athletes are students of any public or private institution of higher education; or any athletics sponsored or regulated by the following amateur athletic associations including, but not limited to:
    1. United States Olympic Committee;
    2. National Collegiate Athletic Association;
    3. National Association of Intercollegiate Athletics;
    4. Kentucky High School Athletic Association;
    5. Kentucky Amateur Athletics Union;
    6. Bluegrass State Games;
    7. Little League Baseball;
    8. Amateur Softball Association;
    9. Babe Ruth Leagues of Kentucky;
    10. American Legion Baseball;
    11. Kentucky Youth Soccer Association; or
    12. Kentucky Special Olympics;
  2. “Corporation” means the Kentucky Lottery Corporation;
  3. “Lottery” means any game of chance approved by the corporation and operated pursuant to this chapter, except for games prohibited by the General Assembly as provided for in KRS 154A.063 ;
  4. “Major lottery-specific procurement” means any gaming product or service including, but not limited to, major advertising contracts, annuity contracts, prize payment agreements, consulting services, personal service contracts, equipment, tickets, and all other products and services unique to the operation of the corporation in its lottery activities, but not including materials, supplies, equipment, and services common to the ordinary operations of a corporation;
  5. “President” means the president of the Kentucky Lottery Corporation who shall also serve as chief executive officer of the corporation;
    1. With respect to an individual, “related entity” means any spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of abode of the individual, and any entity with respect to which the individual, or spouse, child, brother, sister, or parent of the individual has a financial interest of five percent (5%) or more, or is an officer, director, employee, or partner; and (6) (a) With respect to an individual, “related entity” means any spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of abode of the individual, and any entity with respect to which the individual, or spouse, child, brother, sister, or parent of the individual has a financial interest of five percent (5%) or more, or is an officer, director, employee, or partner; and
    2. With respect to any partnership, corporation, joint venture, or other entity, “related entity” means any officer, director, employee, partner, or owner of a financial interest of five percent (5%) or more of the total value thereof; any parent, subsidiary, or brother corporation; and any other entity with which the given entity has an identity of ownership of fifty percent (50%) or more.
  6. “Retailer” means any person with whom the corporation has contracted to sell lottery tickets to the public;
  7. “Security” means the protection of information that would provide an unfair advantage to any individual or other entity involved or seeking involvement in the operation of the lottery or the supply of major lottery-specific procurement items to the corporation, and the protection of:
    1. Information that relates to detection or deterrence of, or could assist in the perpetration of, crimes against the corporation or its retailers, their locations, or their employees; or
    2. Information which could impair or adversely impact the ability of the corporation or its retailers to protect the integrity of the lottery or protect lottery equipment, supplies, or proceeds;
  8. “Sports contest” means any professional or amateur sport, athletic game or contest, or race or contest involving machines, persons, or animals, except horses, that is viewed by the public; and
  9. “Vendor” means any person who has entered into a major lottery-specific procurement contract with the corporation.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 1, effective December 15, 1988; 1990, ch. 470, § 74, effective July 1, 1990; 1994, ch. 170, § 1, effective July 15, 1994.

Opinions of Attorney General.

The only games that can qualify as authorized lotteries are those that qualify as “lotteries” pursuant to Section 226 of the Kentucky Constitution. OAG 92-127 .

The General Assembly may authorize the Kentucky Lottery Corporation to establish, license, regulate and tax video lottery terminals at designated horse racing tracks under Ky. Const. § 226(1) without further amendment to the Kentucky Constitution. OAG 09-004 .

154A.020. State lottery created — Administration by corporation — Management — Intent of General Assembly — Senate confirmation required for corporation existence.

  1. There is hereby created and established a state lottery which shall be administered by an independent, de jure municipal corporation and political subdivision of the Commonwealth of Kentucky which shall be a public body corporate and politic to be known as the Kentucky Lottery Corporation. The corporation shall be deemed a public agency within the meaning of KRS 61.805 and 61.870 . This corporation shall be managed in such a manner that enables the people of the Commonwealth to benefit from its profits and to enjoy the best possible lottery games. The General Assembly hereby recognizes that the operations of a lottery are unique activities for state government and that a corporate structure will best enable the lottery to be managed in an entrepreneurial and business-like manner. It is the intent of the General Assembly that the Kentucky Lottery Corporation shall be accountable to the Governor, the General Assembly and the people of the Commonwealth through a system of audits, reports and thorough financial disclosure as required by this chapter.
  2. The existence of the corporation shall begin only upon confirmation of the members of the board by the Senate as provided in KRS 154A.030 . Until the time of such confirmation, no business shall be conducted on behalf of the lottery.
  3. Notwithstanding any other provision of law to the contrary, no official action of any form shall be taken by the board at any time unless a majority of the members of the board shall have been confirmed by the Senate as provided in KRS 154A.030 . Any action taken on behalf of the lottery when less than a majority of the members of the board shall have been confirmed shall be of no effect.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 2, effective December 15, 1988; 2014, ch. 102, § 33, effective July 15, 2014.

NOTES TO DECISIONS

1.Actions Against Kentucky Lottery Corporation.

In a defamation action by employees of the Kentucky Lottery Corporation (KLC), there was no error in awarding the employees postjudgment interest. As a municipal corporation under KRS 154A.020 , KLC has no sovereign immunity to exempt it from the assessment of interest under KRS 360.040. Hill v. Ky. Lottery Corp., 2010 Ky. LEXIS 82 (Ky. Apr. 22, 2010), sub. op., 327 S.W.3d 412, 2010 Ky. LEXIS 317 ( Ky. 2010 ), modified, 2010 Ky. LEXIS 318 (Ky. Dec. 16, 2010).

Kentucky Lottery Corporation, an independent, de jure municipal corporation under KRS 154A.020 , did not have absolute privilege with respect to a termination memo in a defamation claim by discharged employees. The employees alleged more than the simple disclosure of documents prepared in the regular course of business and placed in their personnel files; they presented evidence that their supervisors maliciously created defamatory memoranda so that they would be subject to an open records disclosure. Hill v. Ky. Lottery Corp., 2010 Ky. LEXIS 82 (Ky. Apr. 22, 2010), sub. op., 327 S.W.3d 412, 2010 Ky. LEXIS 317 ( Ky. 2010 ), modified, 2010 Ky. LEXIS 318 (Ky. Dec. 16, 2010).

Cited:

Hill v. Ky. Lottery Corp., 327 S.W.3d 412, 2010 Ky. LEXIS 317 ( Ky. 2010 ).

Opinions of Attorney General.

The Kentucky Lottery Corporation is a public agency for purposes of applicability of Kentucky’s Open Records statute. Its records are, in general, subject to the provisions of those statutes. OAG 89-43 .

Legislators may release to the public information supplied to them by the Kentucky Lottery Corporation pertaining to the corporation’s accounts receivable. OAG 93-19 .

154A.030. Board of directors — Senate confirmation — Qualifications — Terms — Removal — Chairman — Standards of conduct — Compensation — Meetings — Quorum — Records — Appointment and confirmation of corporation president — Duties — Removal — Open board meetings.

  1. The affairs of the corporation shall be administered by a board of directors composed of eight (8) members. One (1) member of the board shall be the State Treasurer, who shall serve on the board in an ex officio capacity. The other seven (7) members shall be appointed by the Governor, subject to the advice and consent of the Senate. Members appointed when the Senate is not in session shall serve only until the next regular session, or special session if such matter is included in the call therefor of the General Assembly, at which time they shall be subject to confirmation by the Senate. If the Senate is not in session, the appointments shall be subject to review by the Interim Joint Committee on State Government which shall hold a public hearing and shall transmit its recommendations to the Senate. Should the Senate refuse to confirm a member then he shall forfeit his office as of the date on which the Senate refuses to confirm him. Any person not confirmed by the Senate shall not be reappointed as a member for a period of two (2) years. Members appointed by the Governor, and confirmed by the Senate, shall be residents of the Commonwealth of Kentucky and serve a term of four (4) years, except that of the initial members appointed, two (2) shall be appointed for one (1) year with the term ending on the twenty-eighth (28th) day of November, 1989; two (2) shall be appointed for two (2) years with the term ending on the twenty-eighth (28th) day of November, 1990; two (2) shall be appointed for three (3) years with the term ending on the twenty-eighth (28th) day of November, 1991; and one (1) shall be appointed for four (4) years with the term ending on the twenty-eighth (28th) day of November, 1992. Members, confirmed by the Senate, may serve thirty (30) days beyond the end of their respective terms if their successors have not been appointed and qualified. If the Governor fails to appoint a successor within thirty (30) days of expiration of a member’s term, the board shall make the appointment. No appointed member shall serve more than two (2) consecutive four-year terms. No more than four (4) of the members appointed by the Governor shall be from the same political party. Appointed members may be removed by the Governor for neglect of duty, misfeasance, or nonfeasance in office. The board shall annually elect a chairman from among its appointed members.
    1. No member of the board of directors, by himself or through others, shall knowingly: (2) (a) No member of the board of directors, by himself or through others, shall knowingly:
      1. Use or attempt to use his influence in any manner which involves a substantial conflict between his personal or private interest and his duties to the corporation;
      2. Use or attempt to use any means to influence the corporation in derogation of the corporation;
      3. Use his official position or office to obtain financial gain for himself, or any spouse, parent, brother, sister, or child of the director; or
      4. Use or attempt to use his official position to secure or create privileges, exemptions, advantages, or treatment for himself or others in derogation of the interests of the corporation or of the Commonwealth.
    2. No director shall appear before the board or the corporation in any manner other than as a director.
    3. A director shall abstain from action on an official decision in which he has or may have a personal or private interest, and shall disclose the existence of that personal or private interest in writing to each other member of the board on the same day on which the director becomes aware that the interest exists or that an official decision may be under consideration by the board. This disclosure shall cause the decision on these matters to be made in a meeting of the members of the board who do not have the conflict from which meeting the director shall be absent and from all votes on which matters the director shall abstain.
    4. In determining whether to abstain from action on an official decision because of a possible conflict of interest, a director shall consider the following guidelines:
      1. Whether a substantial threat to his independence of judgment has been created by his personal or private interest;
      2. The effect of his participation on public confidence in the integrity of the corporation and the lottery;
      3. Whether his participation is likely to have any significant effect on the disposition of the matter;
      4. The need for his particular contribution, such as special knowledge of the subject matter, to the effective functioning of the corporation; and
      5. Whether the official decision will affect him in a manner differently from the public, or will affect him as a member of a business, profession, occupation, or group to no greater extent generally than other members of his business, profession, occupation, or group.

        Any director may request a vote of the disinterested members of the board on whether any director shall abstain from action on an official decision.

    5. No director, in order to further his own economic interests, or those of any person, shall knowingly disclose or use confidential information acquired in the course of his official duties.
    6. No director shall knowingly receive, directly or indirectly, any interest or profit arising from the use or loan of lottery funds or funds to be raised through the lottery.
    7. No director shall knowingly accept compensation, other than that provided in this section for directors, for performance of his official duties.
    8. No present or former director shall, within one (1) year following termination of his membership on the board, accept employment, compensation, or other economic benefit from any person or business that contracts or does business with the corporation in matters in which he was directly involved during his tenure. This provision shall not prohibit an individual from continuing in the same business, firm, occupation, or profession in which he was involved prior to becoming a director, provided that, for a period of one (1) year following termination of his position as a director, he personally refrains from working on any matter in which he was directly involved as a director.
    9. No director, and no spouse, child, brother, sister, or parent of that director shall have a financial interest of more than five percent (5%) of the total value of any vendor, other supplier of goods or services to the corporation, retailer, or related entity. The corporation shall provide each member of the board with a list of all current vendors, which shall be updated on at least a quarterly basis.
  2. Appointed members of the board of directors shall be entitled to five thousand dollars ($5,000) per year as remuneration for serving on the board, except for the chairman, who shall receive seven thousand five hundred dollars ($7,500), and all members shall be reimbursed for necessary travel and other reasonable expenses incurred in the performance of their official duties.
  3. The board, upon call of the chairman or the president, shall meet at least monthly for the first eighteen (18) months and bimonthly thereafter and at such other times as the chairman or the president may determine. Four (4) members of the board shall constitute a quorum. The board shall also meet upon call of three (3) or more of the voting members of the board. The board shall keep accurate and complete records of all its meetings.
  4. The State Treasurer shall not be compensated for his service on the board.
  5. The president of the corporation shall be appointed by the Governor subject to confirmation by the board of directors. Should the board of directors refuse to confirm the appointment of the president, then the Governor shall submit another name. The person whose appointment was refused shall not be renamed for confirmation for a period of two (2) years. The board of directors shall meet within thirty (30) days of the date the Governor submits the name of a nominee for president of the corporation and shall, within that time frame, either approve or reject the nomination. The president of the corporation shall manage the daily affairs of the corporation and shall have such powers and duties as specified by KRS 154A.070 and by the board of directors. The president shall not be a member of the board. The president of the corporation may be removed by the board of directors.
  6. All meetings of the board shall be open unless they may be closed under KRS 61.810 or relate to trade secrets, legally-protectable intellectual property, confidential proprietary information, the security of the corporation in the operation of the lottery, or the security of the lottery’s retailers.

History. Enact. Acts 1988 (Ex. Sess.) ch. 1, § 3, effective December 15, 1988; 1994, ch. 170, § 2, effective July 15, 1994; 1996, ch. 154, § 1, effective July 15, 1996.

154A.040. Records of corporation deemed open — Exceptions — Circuit Court jurisdiction of records.

  1. All records of the corporation shall be deemed open records and subject to public inspection, unless:
    1. The record is excluded from inspection under KRS 61.870 to 61.884 under KRS 61.878 ;
    2. The record involves a trade secret or other legally-protectable intellectual property or confidential proprietary information of the corporation or of a vendor; or
    3. The disclosure of the record could impair or adversely impact the security of the corporation in the operation of the lottery or the security of lottery retailers.
  2. The provisions of KRS 61.878 , 61.880 , and 61.884 shall apply to records of the lottery corporation with the exception that the only Circuit Court with jurisdiction over the records of the lottery corporation is the Circuit Court in the county where the corporate headquarters of the lottery corporation is located.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 4, effective December 15, 1988; 1994, ch. 170, § 3, effective July 15, 1994.

Opinions of Attorney General.

End prices submitted to a public agency for major elements of a procurement are not trade secrets. Accordingly, bids or proposals containing such information must be made available for inspection when all bids have been rejected or a contract has been awarded. OAG 89-43 .

The Kentucky Lottery Corporation is a public agency for purposes of applicability of Kentucky’s Open Records statute. Its records are, in general, subject to the provisions of those statutes. OAG 89-43 .

For reasons expressed in OAG 89-43 , records concerning end prices bid for certain major facets of a public procurement cannot be considered trade secrets. Accordingly, inspection of records containing such information must be permitted once all bids have been rejected or a contract has been awarded. OAG 89-44 .

Legislators may release to the public information supplied to them by the Kentucky Lottery Corporation pertaining to the corporation’s accounts receivable. OAG 93-19 .

Subdivision (1)(c) of this section was enacted in response to a concern that the integrity of the lottery might be compromised by disclosure of information bearing on the games, and not by its concern for the safety of the Lottery Corporation’s retailers; therefore, the Lottery Corporation improperly denied a request for records containing cash sales by retailers, and that it should promptly arrange for inspection of the records. OAG 93-ORD-44.

Where an employee of the Lottery Corporation denied an open records request with only a vague reference to “certain proprietary information” and without any further explanation of how the exceptions of KRS 61.880(1) applied to the withheld information, the Lottery Corporation failed to meet its statutory burden of proof. OAG 95-ORD-27.

A bare allegation that the records withheld are proprietary is not sufficient under the law. OAG 95-ORD-27.

Release of the records containing the information requested relating to the pull-tab games would affect the security and integrity of the games by enabling the requester to “decode” and obtain unfair advantage in playing those games. Accordingly, the KLC properly relied upon KRS 154A.040(1)(c), in tandem with KRS 61.878(1)(l), in denying the requests. OAG 03-ORD-119.

154A.050. Duties of board.

  1. The board of directors shall provide the president with private-sector perspectives on the operation of a large marketing enterprise. The board shall:
    1. Approve, disapprove, amend, or modify the budget recommended by the president for the operation of the corporation;
    2. Approve, disapprove, amend, or modify the terms of major lottery procurements recommended by the president;
    3. Serve as a board of appeal for any denial, revocation, or cancellation by the president of a contract with a lottery retailer; and
    4. Adopt, from time to time, administrative regulations which shall be subject to the provisions of KRS Chapter 13A, as may be necessary to carry out and implement its powers and duties, the operation of the corporation, the conduct of lottery games in general, and any other matters necessary or desirable for the efficient and effective operation of the lottery or convenience of the public. The board may adopt, without recourse to the administrative regulation process unless it so desires, rules for the conduct of specific lottery games, including but not limited to, rules specifying:
      1. The types of games to be conducted;
      2. The sale price of tickets;
      3. The number and amount of prizes;
      4. The method and location of selecting or validating winning tickets;
      5. The frequency and the means of conducting drawings which shall be open to the public;
      6. The manner of payment of prizes;
      7. The frequency of games and drawings;
      8. The manner and amount of compensation to lottery retailers, except all compensation shall be uniform; and
      9. Any other matters necessary or desirable for the efficient and effective operation of the lottery or for the convenience of the public.
  2. In all other matters, the board shall advise and make recommendations. However, the board shall:
    1. Conduct hearings upon complaints charging violations of this chapter or of administrative regulations adopted by the corporation and shall conduct such other hearings as may be provided by administrative regulation;
    2. Review the performance of the corporation and:
      1. Advise the president and make recommendations to him regarding operations of the corporation; and
      2. Identify potential improvements in this chapter, the administrative regulations of the corporation, and the management of the corporation;
    3. Request from the corporation any information the board determines to be relevant to its duties; and
    4. Report to the president of the corporation, the Governor, the President of the Senate, and the Speaker of the House of Representatives regarding its findings and recommendations.

History. Enact. Acts 1988 (Ex. Sess.) ch. 1, § 5, effective December 15, 1988; 1990, ch. 470, § 77, effective July 1, 1990; 1994, ch. 486, § 25, effective July 15, 1994.

154A.060. Conduct and administration of lottery games — Powers and duties of corporation — Authorized contracts — Withholding lottery prize money for child support arrearages and default on higher education loans.

  1. The corporation shall conduct and administer lottery games which will result in maximization of revenues to the Commonwealth of Kentucky while at the same time provide entertainment to its citizens. It shall be the duty of the corporation, its employees, and the members of the board to provide for the effective operation of lottery games which insure the integrity of the lottery and maintain the dignity of the Commonwealth and the general welfare of its citizens. The corporation, in pursuit of the attainment of the objectives and the purposes of this chapter, may:
    1. Sue and be sued in its corporate name;
    2. Adopt a corporate seal and a symbol;
    3. Hold copyrights, trademarks, and service marks, and enforce its rights with respect thereto;
    4. Appoint agents upon which process may be served;
    5. Enter into written agreements with one (1) or more other states for the operation, marketing, and promotion of a joint lottery or joint lottery games;
    6. Acquire real property and make improvements thereon. These acquisitions shall be reported to the Capital Projects and Bond Oversight Committee for its review and determination in accordance with KRS 45.750 to 45.810 ; and
    7. Make, execute, and effectuate any and all agreements or contracts including:
      1. Contracts for the purchase of such goods and services as are necessary for the operation and promotion of the state lottery. Proposed purchases of major items of equipment estimated to cost one hundred thousand dollars ($100,000) or more and proposed purchases of items of equipment where the estimated contract price for all the items of equipment taken together is four hundred thousand dollars ($400,000) or more shall be reported to the Capital Projects and Bond Oversight Committee for its review and determination in accordance with the provisions of KRS 45.750 to 45.810 . A contract shall not be artificially divided to cause an estimated contract price to fall below the four hundred thousand dollar ($400,000) threshold. Contracts for personal service shall be reviewed in accordance with KRS 45A.690 to 45A.725 .
      2. Contracts to incur debt in its own name and enter into financing agreements with the Commonwealth, its own agencies, or with a commercial bank, excluding the authority to issue bonds.
  2. The corporation shall:
    1. Supervise and administer the lottery in accordance with the provisions of this chapter and the administrative regulations adopted by the board;
    2. Submit monthly and annual reports to the Governor, the President of the Senate, and the Speaker of the House of Representatives containing financial statements which include but are not limited to disclosure of gross revenues, expenses, and net proceeds for the period;
    3. Adopt by administrative regulation a system of continuous internal audits;
    4. Maintain weekly or more frequent records of lottery transactions, including distribution of tickets to lottery retailers, revenues received, claims for prizes, prizes paid, and all other financial transactions of the corporation;
    5. Adopt by administrative regulation a code of ethics for officers and employees of the corporation to carry out the standards of conduct established by the provisions of this chapter;
    6. Include capital projects, as defined in KRS 45.750(1)(f), which exceed the thresholds set forth in KRS 154A.060(1)(g)1. in the budget unit request submitted by the corporation to the Finance and Administration Cabinet pursuant to KRS 48.050 . In the budget unit request submitted by the corporation, a contingency item for acquisition of the on-line central system, all related equipment, and any other equipment owned by vendors of the corporation relating to computer-generated lottery games from the corporation’s vendors shall be stated separately from all other equipment. Further, if the identification of specific projects requiring the acquisition of equipment in the nature of computer systems, communications equipment and related peripheral devices, and operating system software cannot be ascertained with absolute certainty at the time the corporation is required to submit its budget unit request, the corporation shall be entitled to submit a general request for the equipment without individually identifying specific projects, together with a maximum amount to be allocated for the equipment, in the budget unit request;
    7. The Kentucky Lottery Corporation and the Cabinet for Health and Family Services shall develop a system to allow the Kentucky Lottery Corporation to receive a list of delinquent child support obligors from the Cabinet for Health and Family Services on a monthly basis. The Kentucky Lottery Corporation shall withhold delinquent amounts from prizes of winners that appear on the list. This system shall be timely and shall not create an unavoidable delay in the payment of a lottery prize; and
    8. The Kentucky Lottery Corporation and the authority shall develop a system to allow the Kentucky Lottery Corporation to receive on a periodic basis a list of persons declared in default of repayment obligations under financial assistance programs in KRS Chapters 164 and 164A. The Kentucky Lottery Corporation shall withhold from a person’s prize winnings the amount of the defaulted loan and shall transfer the amount to the authority to credit the account of the person in default. Any amount remaining after the deduction of the loan amount shall be paid to the person.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 6, effective December 15, 1988; 1990, ch. 496, § 45, effective July 13, 1990; 1990, ch. 507, § 22, effective July 13, 1990; 1994, ch. 31, § 5, effective July 15, 1994; 1994, ch. 486, § 26, effective July 15, 1994; 1996, ch. 77, § 1, effective July 15, 1996; 2000, ch. 430, § 1, effective July 14, 2000; 2002, ch. 236, § 3, effective July 15, 2002; 2005, ch. 99, § 126, effective June 20, 2005.

Opinions of Attorney General.

The General Assembly may authorize the Kentucky Lottery Corporation to establish, license, regulate and tax video lottery terminals at designated horse racing tracks under Ky. Const. § 226(1) without further amendment to the Kentucky Constitution. OAG 09-004 .

154A.063. Prohibited lottery games.

  1. The corporation shall not utilize amateur athletics for any purpose including, but not limited to, advertising, promoting, conducting a lottery, or as a basis for a lottery.
  2. The corporation shall not approve and operate any casino or similar gambling establishment and shall not approve or operate any game played with playing cards, dice, dominos, slot machines, roulette wheels, or where winners are determined by the outcome of a sports contest.
  3. This section shall not be construed to prohibit the corporation from advertising the lottery at, during, or in connection with a sports contest.

History. Enact. Acts 1990, ch. 470, § 75, effective July 1, 1990.

Opinions of Attorney General.

The General Assembly may authorize the Kentucky Lottery Corporation to establish, license, regulate and tax video lottery terminals at designated horse racing tracks under Ky. Const. § 226(1) without further amendment to the Kentucky Constitution. OAG 09-004 .

Research References and Practice Aids

Kentucky Law Journal.

Note: Betting Against the House (and Senate): The Case for Legal, State-Sponsored Sports Wagering in a Post-PASPA World, 99 Ky. L.J. 163 (2010/2011).

154A.065. Contests involving horses may be basis for a lottery.

The corporation may utilize horse racing or contests involving horses for any purpose including, but not limited to, advertising, promoting, conducting a lottery, or as a basis for a lottery, after obtaining the necessary permission from the horse racing track or sponsoring authority involved.

History. Enact. Acts 1990, ch. 470, § 76, effective July 1, 1990.

Opinions of Attorney General.

A proposed lottery game to be based on the Breeder’s cup horse races is a “lottery” that is authorized by section 226 of the state constitution and this section. It has a prize, the prize is distributed by chance, and a valuable consideration is paid for the chance. OAG 92-127 .

This statute clearly authorizes the Lottery Corporation to use a horse racing event such as the Breeder’s Cup to conduct a “lottery” or as the basis for a “lottery.” OAG 92-127 .

154A.070. Powers and duties of corporation’s president.

  1. The president, as chief executive officer of the corporation, shall direct and supervise all administrative and technical activities in accordance with the provisions of this chapter and with the administrative regulations adopted by the board. It shall be his duty to:
    1. Supervise and administer the operation of the lottery games;
    2. Employ and direct such personnel as may be necessary to carry out the purposes of this chapter and utilize such services, personnel, or facilities of the corporation as he may deem necessary. He may employ by personal service contract pursuant to KRS 45A.690 to 45A.725 and compensate such consultants and technical assistants as may be required to carry out the provisions of this chapter. The president may, by agreement, secure information and services as he may deem necessary from any department, agency, or unit of state government, and shall compensate such department, agency, or unit of state government for its services. Such agencies, departments, or units of state government shall cooperate with the corporation and provide such information and services as may be required by the corporation to assure the integrity of the lottery and the effective operation of the lottery games;
    3. Contract in accordance with the administrative regulations of the corporation with persons to sell lottery tickets at retail. The president shall require a bond or bank letter of credit from lottery retailers in an amount provided by administrative regulations issued by the board;
    4. Make available for inspection by the board or any member of the board, upon request, all books, records, files, and other information and documents of his office and to advise the board and recommend such administrative regulations and other matters he deems necessary and advisable to improve the operation and administration of the lottery;
    5. Enter into any contract pursuant to KRS Chapters 45 and 45A or administrative regulations promulgated by the board, and pursuant to KRS 154A.120 , with any person, firm, or corporation for the promotion and any operation of the lottery, or for the performance of any of the functions as provided in this chapter;
    6. Attend meetings of the board or appoint a designee to attend on his behalf; and
    7. On the first day of the Regular Session of the General Assembly in 1990 and biennially thereafter, submit the proposed biennial budget of the corporation to the Appropriations and Revenue Committee of the House of Representatives for review and comment. The budget shall be submitted to the Director of the Legislative Research Commission within five (5) days of adoption by the board for distribution to the Appropriations and Revenue Committee of the House of Representatives for review.
  2. The president, with the approval of the board, may amend or modify the budget at any time in any manner deemed necessary for the proper operation of the corporation; however, each change shall be reported in writing to the board and to the director of the Legislative Research Commission, who shall transmit a copy of the change to the Appropriations and Revenue Committee of the House of Representatives.
  3. Following his confirmation, and during his entire term of office, the president shall reside in Kentucky.
  4. The president, and the board, may conduct an ongoing study of the operation and administration of lotteries in other states or countries, of available literature on the subject, of federal laws and regulations which may affect the operation of the lottery, and of the reaction of citizens of this state to existing or proposed features of lottery games, with a view toward implementing improvements that will tend to serve the purposes of this chapter.
  5. The president also may:
    1. Require bond from corporate employees with access to corporate funds or lottery funds, in such an amount as provided in the administrative regulations of the board. The president may also require bond from other employees as he deems necessary; and
    2. For good cause, suspend, revoke, or refuse to renew any contract entered into in accordance with the provisions of this chapter or the administrative regulations of the board.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 7, effective December 15, 1988; 1990, ch. 496, § 46, effective July 13, 1990; 1994, ch. 170, § 4, effective July 15, 1994.

154A.080. Personnel program for employees — Conflict of interest provisions — Background investigations — Employment of specified persons by corporation prohibited.

  1. The corporation shall establish and maintain a personnel program for its employees. The corporation may procure benefit programs or group insurance plans and shall provide a retirement plan. Employees of the corporation shall serve at the pleasure of the president who shall determine their compensation and benefits. The employees shall be subject to suspension, dismissal, reduction in pay, demotion, transfer, or other personnel action at the discretion of the president. Such personnel actions shall be exempt from the provisions of KRS Chapter 18A. The compensation of officers at the division head level and above shall be exempt from the provisions of KRS 64.640 .
  2. No officer or employee of the corporation shall have a financial interest in any vendor doing business or proposing to do business with the corporation.
  3. No officer or employee of the corporation with decision-making authority shall participate in any decision involving a retailer with whom the officer or employee has a financial interest of five percent (5%) or more of the total value thereof.
  4. No officer or employee of the corporation who leaves the employ of the corporation may represent any vendor, lottery retailer, or related entity before the corporation for a period of two (2) years following termination of employment with the corporation.
  5. A background investigation shall be conducted by the chief security officer of the corporation on every applicant who has reached the final selection process prior to employment by the corporation. Applicants may be fingerprinted as a condition of employment. In addition, all division directors of the corporation and employees of the corporation performing duties primarily related to security matters, prior to employment, shall be subject to a background investigation report conducted by the Department of Kentucky State Police. The Department of Kentucky State Police shall be reimbursed by the corporation for the cost of investigations conducted pursuant to this section. No person who has been convicted of a felony, bookmaking or other forms of illegal gambling, or of a crime involving moral turpitude shall be employed by the corporation. Any employee of the corporation who is or has been convicted of a felony, bookmaking, or any other form of illegal gambling or of a crime involving moral turpitude shall be terminated from employment by the corporation, except that this requirement shall not be interpreted to limit the right of the corporation to terminate the employment of any employee, at will, prior to any conviction.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 8, effective December 15, 1988; 1994, ch. 170, § 5, effective July 15, 1994; 2007, ch. 85, § 162, effective June 26, 2007.

154A.090. Appeals — Circuit Court alternatives.

  1. Any retailer, vendor, or applicant for a retailer or vendor contract aggrieved by an action of the president of the corporation may appeal that decision to the board.
  2. All appeals before the board shall be decided within thirty (30) days of the hearing.
  3. Any person aggrieved by a decision of the board may appeal the decision to the Circuit Court of the county in which the corporation maintains its headquarters, except that if the person aggrieved is a lottery retailer or an applicant to become a lottery retailer, then the Circuit Court of the county in which said retailer does or applicant would operate shall have concurrent venue as to such appeal.
  4. The Circuit Court may reverse the decision of the board only in the event the decision is found to be:
    1. Clearly erroneous; or
    2. Arbitrary and capricious; or
    3. Procured by fraud; or
    4. A result of misconduct by the board, or a member thereof.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 11, effective December 15, 1988.

154A.100. Bond, letters of credit or other surety.

Whenever a bond is required for the protection of the corporation, letters of credit or other surety as may be approved by the corporation, may be utilized in lieu of a bond.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 12, effective December 15, 1988.

154A.110. Prizes taxable — Withholdings from prize — Verification rules and prize payments, exceptions — Unclaimed prize money — Corporation’s liability — Ineligibility to purchase tickets and receive prizes — Conditions for assignment of prize.

  1. Proceeds of lottery prizes shall be subject to Kentucky state income tax. Any attachments, garnishments, or executions authorized and issued pursuant to statute shall also be withheld if served upon the process agent of the corporation. This section shall not apply to a retailer.
  2. The board shall adopt rules to establish a system of verifying the validity of tickets claimed to win prizes and to effect payment of such prizes, except that:
    1. No prize, nor any portion of a prize, nor any right of any person to a prize awarded shall be assignable, except as provided in subsection (6) of this section. Any prize, or portion thereof, remaining unpaid at the death of a prize winner shall be paid to the estate of such deceased prize winner or to the trustee under a revocable living trust established by the deceased prize winner as settlor, provided that a copy of such a trust has been filed with the corporation along with a notarized letter of direction from the settlor and no written notice of revocation has been received by the corporation prior to the settlor’s death. Following such a settlor’s death and prior to any payment to such a successor trustee, the corporation shall obtain from the trustee and each trust beneficiary a written agreement to indemnify and hold the corporation harmless with respect to any claims that may be asserted against the corporation arising from payment to or through the trust. Notwithstanding any other provisions of this section, any person, pursuant to an appropriate judicial order, shall be paid the prize to which a winner is entitled.
    2. No ticket shall knowingly be sold to any person under the age of eighteen (18), but this section does not prohibit the purchase of a ticket by a person eighteen (18) years of age or older for the purpose of making a gift to any person of any age. In such case, the corporation shall direct payment to an adult member of the person’s family or the legal guardian of the person on behalf of such person. The person named as custodian shall have the same powers and duties as prescribed for a custodian pursuant to the Uniform Transfers to Minors Act.
    3. No prize shall be paid arising from claimed tickets that are stolen, counterfeit, altered, fraudulent, unissued, produced or issued in error, unreadable, not received or not recorded by the corporation within applicable deadlines, lacking in captions that conform and agree with the play symbols as appropriate to the lottery game involved, or not in compliance with such additional specific rules and public or confidential validation and security tests of the corporation appropriate to the particular lottery game involved.
    4. No particular prize in any lottery game shall be paid more than once, and in the event of a binding determination that more than one claimant is entitled to a particular prize, the sole remedy of such claimants is the award to each of them of an equal share in the prize.
    5. A holder of a winning cash ticket from a Kentucky lottery game shall claim a prize within three hundred sixty-five (365) days (for a ticket issued before January 1, 1995), and within one hundred eighty (180) days (for a ticket issued on or after January 1, 1995), or for a multistate lottery game within one hundred eighty (180) days, after the drawing in which the prize was won. In any Kentucky lottery game in which the player may determine instantly if he has won or lost, he shall claim a prize within three hundred sixty-five (365) days (for lottery games commenced or tickets printed or reprinted before January 1, 1995), and within one hundred eighty (180) days (for lottery games commenced or tickets printed or reprinted on or after January 1, 1995), or for a multistate lottery game within one hundred eighty (180) days, after the end of the lottery game as announced by the corporation. However, a holder of a pull-tab lottery ticket shall claim a prize within the time period and in the manner printed on the ticket. If a valid claim is not made for a prize within the applicable period, the prize shall constitute an unclaimed prize for purposes of subsection (3) of this section.
    6. No prize shall be paid upon a ticket purchased or sold in violation of this chapter. Any such prize shall constitute an unclaimed prize for purposes of subsection (3) of this section.
  3. Any unclaimed prize money may be retained by the corporation and added to the pool from which future prizes are to be awarded or used for special prize promotions, or may be appropriated by the General Assembly directly from the corporation for any public purpose. For fiscal years 2000-2001 and 2001-2002, any unclaimed prize money in excess of six million dollars ($6,000,000) shall be transferred to the affordable housing trust fund established by KRS 198A.710 .
  4. The corporation is discharged of all liability upon payment of a prize.
  5. No ticket shall be purchased by and no prize shall be paid to any of the following persons:
    1. Any member of the board of directors, officers, or employees of the corporation;
    2. Any vendors or related entities, or any member of the board of directors, officers, employees of, partners in, or owners of any vendors or related entities to the vendors; or
    3. Any spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of abode of any such person.
  6. The right of any person to receive payments due under a prize that is paid in installments over time by the corporation, excluding prizes payable for the winner’s life, may be voluntarily assigned, in whole or in part, if the assignment is made to a person or entity designated pursuant to an order of the Circuit Court located in the judicial circuit where the headquarters of the corporation is located. The Circuit Court shall issue an order approving a voluntary assignment, specifying the exact dollar amount of each prize payment or payments assigned, or any portion thereof, the dates of the payments being assigned, the name of the assignor as it appears on the lottery claim form or the full legal name of the assignor if different than the name as it appears on the lottery claim form, and the full legal name of the assignee to whom the assigned payments will be made, and directing the corporation to make the specified payments to the assignee, if all of the following conditions have been met:
    1. The assignment is in writing, executed by the assignor either before or after July 12, 2006, and by its terms, subject to the laws of this Commonwealth;
    2. The assignor provides a sworn affidavit attesting that the assignor:
      1. Is of sound mind, in full command of his or her faculties, and is not acting under duress;
      2. Has had the opportunity to receive independent legal, financial, and tax advice concerning the effects of the assignment;
      3. Understands that he or she will not receive the prize payments, or portions thereof, for the years assigned;
      4. Understands and agrees that with regard to the assigned payments, the Commonwealth, the corporation, and its respective officials and employees will have no further liability or responsibility to make the assigned payments to the assignor;
      5. Has been provided with a one (1) page written disclosure statement in bold type, fourteen (14) point font or larger, setting forth:
        1. The payments being assigned, by amounts and payment dates;
        2. The purchase price being paid; and
        3. The amount, if any, of any origination or closing fees that will be charged to the lottery winner; and
      6. Has disclosed the existence or nonexistence of a current spouse; and, if married, unless the court finds the assignor may make the assignment without the spouse’s consent, the assignor has submitted to the court a signed and notarized statement wherein the spouse consents to the assignment.
  7. Written notice of any petition seeking court approval of an assignment under subsection (6) of this section and of a court hearing, if any, concerning the proposed assignment shall be delivered by certified mail, return receipt requested, to the corporation’s registered agent at least fifteen (15) days prior to entry of the court order or a court hearing, if any. The corporation is not a necessary or indispensable party and is not required to appear in or be named as a party to any action seeking court approval of a voluntary assignment, but may intervene as of right in any such proceeding.
  8. A voluntary assignment under subsection (6) of this section shall not include or cover payments or portions of payments that are, at the time of entry of the court order, subject to offset or withholding due to:
    1. A defaulted or delinquent child support obligation;
    2. A debt owed to a state agency; or
    3. Any attachments, garnishments, or executions authorized and issued pursuant to statute and served upon the process agent of the corporation as set forth in subsection (1) of this section;

      unless appropriate provision is made in the court order to satisfy the obligation or obligations giving rise to the offset or withholding at the time of closing of the assignment transaction. Each court order shall provide that any delinquent child support obligation owed by the assignor as of the date of the court order and any debts owed to a state agency by the assignor as of the date of the court order shall be offset by the corporation first against remaining payments or portions thereof then due the assignor and then against payments due the assignee each year until paid in full.

  9. A court order approving a voluntary assignment under subsection (6) of this section, together with any other order issued in connection with any one (1) prize drawn, shall not require the corporation to divide any single prize payment among more than three (3) different persons or entities.
  10. The Commonwealth, the corporation, and their respective officials and employees shall be discharged of all further liability upon payment of a prize pursuant to court order issued under subsection (6) of this section. It shall be the responsibility of the assignor or the assignee to provide the corporation information necessary for the corporation to identify the parties to any assignment under subsection (6) of this section and to make the payments assigned.
  11. The Kentucky Lottery Corporation may establish a reasonable fee, not to exceed one thousand dollars ($1,000), to defray any administrative expenses associated with processing each assignment made pursuant to subsection (6) of this section. The fee amount shall reflect the direct and indirect costs associated with processing the assignments. A court order approving an assignment under subsection (6) of this section shall direct the assignee to pay the fee to the corporation no later than ten (10) days after entry of the order.
  12. A certified copy of a court order approving a voluntary assignment under subsection (6) of this section shall be delivered by certified mail, return receipt requested, to the corporation’s registered agent at least thirty (30) days prior to the date upon which the first assigned payment is to be paid to the assignee. Within ten (10) days of receipt of the court order, the corporation shall acknowledge in writing to both the assignor and the assignee its receipt of the court order and that the corporation shall thereafter make the prize payments in accordance with the court order.
  13. Subsection (6) of this section supersedes and prevails over any provision in the Uniform Commercial Code, including KRS 355.9-406.
  14. The right to assign prize payments pursuant to subsection (6) of this section shall be suspended upon:
    1. The publication by the United States Internal Revenue Service, hereinafter referred to in this subsection as the “Service,” of a revenue ruling or other public ruling of the Service, which rules that, based upon the right of assignment provided in subsection (6) of this section, Kentucky lottery prizewinners who do not assign any prize payments would be subject to an immediate income tax liability for the value of the entire prize rather than annual income tax liability for each installment when paid; or
    2. The issuance by a court of competent jurisdiction of a published decision holding that, based upon the right of assignment provided in subsection (6) of this section, a lottery prizewinner who does not assign any prize payments under that subsection would be subject to an immediate income tax liability for the value of the entire prize rather than annual income tax liability for each installment when paid.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 16, effective December 15, 1988; 1994, ch. 170, § 6, effective July 15, 1994; 1998, ch. 215, § 1, effective July 15, 1998; 2000, ch. 469, § 1, effective July 14, 2000; 2006, ch. 41, § 1, effective July 12, 2006.

Legislative Research Commission Note.

(1988). Although references to the sale of “shares” were deleted in the Senate committee substitute, due to a clerical error, such reference was not deleted in subdivision (2)(e) of this section. The Reviser of Statutes, pursuant to KRS 7.136 , has removed the words “or share” to conform.

NOTES TO DECISIONS

1.Liability Following Payment.

Lottery Corporation was not discharged of all liability under subsection (4) of this section when it paid a lottery winner, who demanded a cash payment, the present value of his prize less applicable taxes; lottery winner was not precluded from challenging the method of payment even though he negotiated his prize check. Kentucky Lottery Corp. v. Casey, 862 S.W.2d 888, 1993 Ky. LEXIS 135 ( Ky. 1993 ).

2.Consideration Required for Releases.

Where lottery winner signed two releases and accepted check for less than the full payment of her winnings, this section’s provisions were subject to the contract doctrine of accord and satisfaction and since winner’s signature on releases was not supported by valid consideration, the Lottery Corporation was liable for the full payment of her winnings to the winner. Brown v. Kentucky Lottery Corp., 891 S.W.2d 90, 1995 Ky. App. LEXIS 7 (Ky. Ct. App. 1995).

Cited in:

Bailey v. Ky. Lottery Corp., 542 S.W.3d 305, 2018 Ky. App. LEXIS 81 (Ky. Ct. App. 2018).

Research References and Practice Aids

Treatises

Petrilli, Kentucky Family Law, Supp., Support of Children, § 27.13.

154A.120. Procurement procedures — Administrative regulations for procurement — Bidding and negotiation processes.

  1. The corporation shall conduct all procurements in accordance with procedures which are not inconsistent with the provisions of KRS Chapter 45A, and this chapter, this chapter being deemed to control in the event that, and to the extent that, any provision in this chapter is expressly inconsistent with any provision of KRS Chapter 45A; or the corporation shall adopt administrative regulations establishing its procurement procedures. If the corporation elects to promulgate administrative regulations establishing its procurement procedures rather than conduct procurements in accordance with the provisions of KRS Chapter 45A, the corporation may include sections of KRS Chapter 45A as part of its administrative regulations. However, major lottery-specific procurements for personal service contracts shall not be subject to the requirements of KRS 45A.695(2)(b), due to the unique operational activities conducted for state government by the corporation as recognized in KRS 154A.020 . The corporation’s procurement procedures or administrative regulations shall be designed to provide for the purchase of supplies, equipment, services, and construction items that provide the greatest long term benefit to the state, the greatest integrity for the corporation, and the best service and products, for the public.
  2. In its bidding and negotiation processes, the corporation may do its own bidding and procurement, or may utilize the services of the Finance and Administration Cabinet, or a combination thereof. The president of the corporation may, in lieu of the secretary of finance, declare an emergency for purchasing purposes.

History. Enact. Acts 1988 (Ex Sess.) ch. 1, § 18, effective December 15, 1988; 1990, ch. 496, § 47, effective July 13, 1990; 1994, ch. 170, § 7, effective July 15, 1994.

154A.130. Deposit of moneys — Expenditures and investments authorized — Allocation of funds — Transfer of revenues to general fund — Lottery trust account — Credit from general fund to literacy fund and higher education scholarships — Postaudit of corporation’s books and records — Functions of Auditor of Public Accounts — Annual newspaper publication of information.

  1. All money received by the corporation from the sale of lottery tickets and all other sources shall be deposited into a corporate operating account. The corporation is authorized to use all money in the corporate operating account for the purposes of paying prizes and the necessary expenses of the corporation and dividends to the state. The corporation shall allocate the amount to be paid by the corporation to prize winners. The amount in the corporate operating account which the corporation anticipates will be available for the payment of prizes on an annuity basis may be invested in direct United States Treasury obligations. These instruments may be in varying maturities with respect to payment of annuities and may be in book-entry form. Monthly, no later than the last business day of the succeeding month, the corporation shall transfer to a lottery trust fund the amount of net revenues which the corporation determines are surplus to its needs. These funds shall be held in trust until 1990 at which time the General Assembly shall determine the manner in which the funds will be allocated and appropriated. The net revenues shall be determined by deducting from gross revenues the payment costs incurred in the operation and administration of the lottery, including the expenses of the corporation and the costs resulting from any contract or contracts entered into for promotional, advertising, or operational services or for the purchase or lease of lottery equipment and materials, fixed capital outlays, and the payment of prizes to the holders of winning tickets. After the start-up costs are paid, it is the intent of the Legislature that it shall be the goal of the corporation to transfer each year thirty-five percent (35%) of gross revenues to the general fund for the purposes stated above.
  2. A Kentucky lottery trust account is established in the State Treasury. Net lottery revenues shall be credited to this restricted account as provided in subsection (1) of this section. Moneys credited to the Kentucky lottery trust account shall be invested by the state in accordance with state investment practices and all earnings from the investments shall accrue to this account. No moneys shall be allotted or expended from this account unless pursuant to an appropriation by the General Assembly, except that moneys as are needed shall be transferred to the general fund pursuant to the provisions of the Acts of the Extraordinary Session of the 1988 General Assembly. Moneys in the Kentucky lottery trust account shall not lapse at the close of the state fiscal year.
  3. Each fiscal year, three million dollars ($3,000,000) from net lottery revenues from the sale of lottery tickets shall be credited from the general fund as follows:
    1. To the Collaborative Center for Literacy Development, one million two hundred thousand dollars ($1,200,000); and
    2. To the reading diagnostic and intervention fund, one million eight hundred thousand dollars ($1,800,000).
  4. After the allocation of three million dollars ($3,000,000) to literacy development, as provided in subsection (3) of this section, net lottery revenues from the sale of lottery tickets shall be credited from the general fund as follows:
    1. To the Wallace G. Wilkinson Kentucky educational excellence scholarship trust fund established in KRS 164.7877 :
      1. Forty percent (40%) in fiscal year 2003-2004; and
      2. Forty-five percent (45%) in fiscal year 2004-2005 and each fiscal year thereafter; and
    2. To the College Access Program and the Kentucky Tuition Grants Program established in KRS Chapter 164:
      1. Forty percent (40%) in fiscal year 2003-2004;
      2. Forty-five percent (45%) in fiscal year 2004-2005; and
      3. Fifty-five percent (55%) of net lottery revenues in fiscal year 2005-2006 and each fiscal year thereafter.
  5. The Auditor of Public Accounts shall be responsible for a financial postaudit of the books and records of the corporation. The postaudit shall be conducted in accordance with generally accepted accounting principles, shall be paid for by the corporation, and shall be completed within ninety (90) days of the close of the corporation’s fiscal year. The Auditor of Public Accounts shall contract with an independent, certified public accountant who meets the qualifications existing to do business within the Commonwealth of Kentucky to perform the corporation postaudit. The Auditor of Public Accounts shall remain responsible for the annual postaudit and the corporation shall pay all audit costs. The Auditor of Public Accounts may at any time conduct additional audits, including performance audits, of the corporation as he deems necessary or desirable. Contracts shall be entered into for audit services for a period not to exceed five (5) years and the same firm shall not receive two (2) consecutive audit contracts. All audits shall be filed with the Governor, the President of the Senate, and the Speaker of the House of Representatives. The corporation shall reimburse the Auditor of Public Accounts for the reasonable costs of any audits performed by him. The corporation shall cooperate with the Auditor of Public Accounts by giving employees designated by any of them access to facilities of the corporation for the purpose of efficient compliance with their respective responsibilities. With respect to any reimbursement that the corporation is required to pay to any agency, the corporation shall enter into an agreement with that agency under which the corporation shall pay to the agency an amount reasonably anticipated to cover the reimbursable expenses in advance of the expenses being incurred.
  6. By no later than December 31 of each year, in an advertisement at least one-fourth (1/4) of a page in size, the Kentucky Lottery Corporation shall publish the following information in every general-circulation daily newspaper published in Kentucky:
    1. The statements of revenue, expenses, and changes in retained earnings as shown in the most recent annual audit report. It shall be explained that the transfer of dividends is the amount of lottery earnings transferred to the general fund;
    2. A statement identifying the auditing firm;
    3. A telephone number which citizens may call to obtain a complete copy of the annual audit report; and
    4. The name of the president/chief executive officer of the Kentucky Lottery Corporation and a complete list of board members.

The Kentucky Lottery Corporation shall pay for the cost of the advertisement.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 20, effective December 15, 1988; 1994, ch. 170, § 8, effective July 15, 1994; 1994, ch. 486, § 27, effective July 15, 1994; 1998, ch. 185, § 1, effective July 15, 1998; 1998, ch. 575, § 7, effective July 15, 1998; 2000, ch. 13, § 6, effective July 14, 2000; 2005, ch. 127, § 6, effective March 18, 2005.

Legislative Research Commission Note.

(3/18/2005). 2005 Ky Acts ch. 127, which included an amendment to this section, KRS 154A.130 , povides that the Act shall be cited as the “Read to Achieve Act of 2005.”

(1988). Although the compulsive gambling study fund was deleted by Senate floor amendment 28, inadvertently the reference to such fund in subsection (1) of this section was not deleted. The Reviser of Statutes, pursuant to KRS 7.136 , has removed the language pertaining to this fund to conform.

(1988). Although references to the sale of “shares” were deleted in the Senate committee substitute, due to a clerical error, such reference was not deleted in subsection (1) of this section. The Reviser of Statutes, pursuant to KRS 7.136 , has removed the words “or shares” to conform.

Opinions of Attorney General.

The language of subsection (3) (now (5)) of this section, limiting contracts for postaudit of the lottery to a period not exceeding five (5) years, refers to fiscal years. OAG 93-30 .

An accounting firm cannot receive a contract which would provide for such firm to conduct a postaudit of the Kentucky Lottery Corporation for a sixth fiscal year, if such fiscal year would involve a contract consecutive to the period during which the firm carried out previous postaudits. OAG 93-30 .

Research References and Practice Aids

2020-2022 Budget Reference.

See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, C, 3, (12) at 871.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, K, 2, (1) at 894.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, K, 2, (2) at 894.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, K, 2, (3) at 894.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, K, 2, (4) at 894.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, K, 2, (5) at 894.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, K, 2, (6) at 895.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, K, 2, (9) at 895.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, K, 8, (1) at 897.

2016-2018 Budget Reference.

See State/Executive Branch Budget, 2016 Ky. Acts ch. 149, Pt. I, K, 2, (1) at 1087.

See State/Executive Branch Budget, 2016 Ky. Acts ch. 149, Pt. I, K, 2, (2) at 1087.

See State/Executive Branch Budget, 2016 Ky. Acts ch. 149, Pt. I, K, 2, (3) at 1087.

See State/Executive Branch Budget, 2016 Ky. Acts ch. 149, Pt. I, K, 2, (4) at 1087.

See State/Executive Branch Budget, 2016 Ky. Acts ch. 149, Pt. I, K, 2, (5) at 1087.

See State/Executive Branch Budget, 2016 Ky. Acts ch. 149, Pt. I, K, 2, (10) at 1087.

See State/Executive Branch Budget, 2016 Ky. Acts ch. 149, Pt. I, K, 2, (11) at 1087.

See State/Executive Branch Budget, 2016 Ky. Acts ch. 149, Pt. I, K, 2, (14) at 1087.

154A.140. Acceptance and expenditure of moneys by corporation — Corporation to be self sustaining and self funded.

  1. The corporation is hereby authorized to accept and expend such moneys as may be appropriated by the General Assembly or such moneys as may be received from any source, including income from the corporation’s operations, for effectuating its corporate purposes including, without limitation, the payment of the initial expenses of administration and operation of the corporation and the lottery.
  2. After the transfer of any appropriated funds provided by subsection (1) of this section, the corporation shall be self sustaining and self funded and moneys in the state general fund shall not be used or obligated to pay the expenses of the corporation or prizes of the lottery and no claim for the payment of an expense of the lottery or prizes of the lottery shall be made against any moneys other than moneys credited to the corporate operating account established by KRS 154A.130 .

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 21, effective December 15, 1988.

154A.150. Ticket distribution.

Federally insured financial institutions may be utilized by the corporation to distribute lottery tickets to retailers.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 24, effective December 15, 1988.

154A.160. Prohibitions.

  1. The corporation shall not organize, participate in, or contribute to a political action committee, either directly or indirectly.
  2. No person who receives goods, services, moneys, or rights having monetary value in excess of fifty dollars ($50) pursuant to any contract with the corporation, and no agent, officer, employee, shareholder, or partner of such person, shall pay money, service, or other thing of value, to or for the benefit of, any agent, officer, employee of the corporation or to any person having the authority to appoint or to confirm the appointment of any agent, officer, and employee of the corporation on account of, in consideration for, or to induce the corporation to enter into the contract. This section shall not apply to otherwise lawful contributions to political campaigns.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, §§ 22, 23, 25, effective December 15, 1988; 1994, ch. 170, § 9, effective July 15, 1994; 2005, ch. 105, § 11, effective March 16, 2005.

Opinions of Attorney General.

The prohibitions contained in subsection (2) of this section do not apply when the state auditor retains consultants to assist in performing a performance review of the lottery corporation. OAG 93-23 .

Where an owner, partner, officer, etc. makes a contribution covered by subsection (2) of this section and then leaves his or her accounting firm, both the firm of which one was an officer at the time of making a contribution and the firm of which one who has made such a contribution subsequently becomes an officer, are disqualified from providing auditing services to the Kentucky Lottery Corporation. OAG 93-30 .

Subsection (2) of this section does not impose an express ban upon contributions of (1) a spouse or child of a “person” selected to provide auditing services to the lottery, or (2) a spouse or child of an “officer” of an entity so selected. OAG 93-30 .

The contribution prohibitions contained in subsection (2) of this section do not apply to a contribution made by an “employee” of a person selected to provide auditing services to the lottery or to an employee of an entity so selected unless that contribution is made by a person selected to provide auditing services to the lottery, or by an officer of an entity so selected, using the name of a “non-officer” employee. OAG 93-30 .

Contributions of a partner or officer, etc., of an entity selected to provide auditing services to the lottery to a political action committee, which in turn makes a contribution of the type addressed by the statute, will not disqualify a firm from being selected to provide auditing services to the lottery. OAG 93-30 .

Retailers

154A.400. Statewide network of lottery retailers — Criteria for selection — Uniform fees — Suspension, revocation or termination of contract — Purchase or lease of on-line equipment — Contracts not transferable or assignable — Certificates — General Assembly members not prohibited from being retailers — Payment of prize — Sales tax exemption.

    1. The General Assembly hereby recognizes that to conduct a successful lottery, the corporation must develop and maintain a statewide network of lottery retailers that will serve the public convenience or promote the sale of tickets, while insuring the integrity of the lottery. (1) (a) The General Assembly hereby recognizes that to conduct a successful lottery, the corporation must develop and maintain a statewide network of lottery retailers that will serve the public convenience or promote the sale of tickets, while insuring the integrity of the lottery.
    2. To govern the selection of lottery retailers, the board shall, by administrative regulation, develop a list of objective criteria upon which the selection of lottery retailers shall be based. Separate criteria shall be developed to govern the selection of retailers of instant tickets and on-line retailers. In developing these criteria the board shall consider such factors as the applicant’s financial responsibility, security of the applicant’s place of business or activity, integrity, and reputation; however, the board shall not consider political affiliation, activities, or monetary contributions to political organizations or candidates for any public office. The criteria shall include, but not be limited to the following:
      1. The applicant shall be current in payment of all taxes, interest and penalties owed to any taxing subdivision where the lottery retailer will sell lottery tickets;
      2. The applicant shall be current in filing all applicable tax returns and in payment of all taxes, interest and penalties owed to the Commonwealth of Kentucky, excluding items under formal appeal pursuant to applicable statutes;
      3. No person, partnership, unincorporated association, corporation, or other business entity shall be selected as a lottery retailer for the sale of instant tickets or on-line games who:
        1. Has been convicted of a felony related to the security or integrity of the lottery in this or any other jurisdiction, unless at least ten (10) years have passed since satisfactory completion of the sentence or probation imposed by the court for each felony;
        2. Has been convicted of any illegal gambling activity in this or any other jurisdiction, unless at least ten (10) years have passed since satisfactory completion of the sentence or probation imposed by the court for each conviction;
        3. Has been found to have violated the provisions of this chapter or any administrative regulation adopted hereunder, unless at least ten (10) years have passed since the violation;
        4. Is a vendor or an employee or agent of any vendor doing business with the corporation;
        5. Resides in the same household as an officer of the corporation; or
        6. Has made a statement of material fact to the corporation, knowing such statement to be false, unless at least ten (10) years have passed since the statement was made.
      4. Retailers shall be afforded the same exceptions to disqualification as provided for vendors in KRS 154A.600(4)(a) and (b) or (c).
      5. In addition to the provisions of subsection (3) of this section, no person, partnership, unincorporated association, corporation, or other business entity shall be selected as an on-line lottery retailer who:
        1. Has been denied a license to sell instant tickets on the basis of objective criteria established by the board, or any provision of this chapter; or
        2. Has failed to sell sufficient instant tickets to indicate that the location of an on-line game at his outlet would be of economic benefit to him or the lottery corporation.
      6. The applicant shall not be engaged exclusively in the sale of lottery tickets. However, this paragraph does not preclude the corporation from contracting for the sale of lottery tickets with nonprofit, charitable organizations or units of local government in accordance with the provisions of this chapter.
    3. Persons applying to become lottery retailers shall be charged a uniform application fee for each lottery outlet. Retailers chosen to participate in on-line games shall be charged a uniform annual fee for each on-line outlet.
    4. Any lottery retailer contract executed pursuant to this section may, for good cause, be suspended, revoked, or terminated by the president if the retailer is found to have violated any of the objective criteria established by the board as provided in subsection (1) of this section. Review of such action shall be in accordance with the procedures outlined in KRS 154A.090 . All lottery retailer contracts shall be renewable annually after issuance unless sooner canceled or terminated.
    1. A retailer who has been denied an on-line game for reasons other than financial responsibility, security, or integrity shall be permitted to purchase or lease the equipment necessary to operate such a game from the corporation in a manner consistent with the corporation’s manner of acquisition. A retailer need not file an appeal before being permitted to purchase or lease on-line equipment. (2) (a) A retailer who has been denied an on-line game for reasons other than financial responsibility, security, or integrity shall be permitted to purchase or lease the equipment necessary to operate such a game from the corporation in a manner consistent with the corporation’s manner of acquisition. A retailer need not file an appeal before being permitted to purchase or lease on-line equipment.
    2. After one (1) year of operation, any retailer who purchased or leased on-line equipment pursuant to paragraph (a) of this subsection and whose sales are equal to or greater than the statewide average of sales of on-line retailers, shall be reimbursed the cost of the purchase or lease by the corporation. The board may purchase the terminals of other retailers who purchased their equipment if the board determines that such purchase is in the best interest of the lottery.
  1. No lottery retailer contract awarded under this section shall be transferable or assignable. No lottery retailer shall contract with any person for lottery goods or services except with the approval of the board.
  2. Each lottery retailer shall be issued a lottery retailer certificate which shall be conspicuously displayed at the place where the lottery retailer is authorized to sell lottery tickets. Lottery tickets shall only be sold by the retailer at the location stated on the lottery retailer certificate.
  3. A member of the General Assembly who meets the same requirements as any other applicant to be a retailer may be granted a retail contract to sell lottery tickets or participate in any other lottery game operations. No member of the General Assembly shall be entitled to preference over any other applicant for a contract.
  4. For the convenience of the public, all retailers shall be authorized to pay winners up to six hundred dollars ($600) after the retailer performs validation procedures appropriate to the lottery game involved. Lottery tickets shall be exempt from the Kentucky sales tax.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1 § 9, effective December 15, 1988.

154A.410. Content of contracts — Powers of president in regard to contracts.

  1. Any contract executed by the corporation pursuant to this chapter shall specify the reasons for which any contract may be suspended, revoked, or terminated by the corporation, including, but not limited to:
    1. Commission of a violation of this chapter or administrative regulations adopted pursuant thereto;
    2. Failure to accurately account for lottery tickets, revenues, or prizes as required by the corporation;
    3. Commission of any fraud, deceit, or misrepresentation;
    4. Insufficient sale of tickets;
    5. Conduct prejudicial to public confidence in the lottery;
    6. Any material change in any matter considered by the corporation in executing the contract with the retailer;
    7. Failure to meet any of the objective criteria established by the board pursuant to KRS 154A.400(1).
  2. If, in the discretion of the president, such denial, revocation, suspension or rejection of renewal is in the best interests of the lottery, the public welfare, or the Commonwealth of Kentucky, the president may suspend, revoke, or terminate, after notice and a hearing, any contract issued pursuant to this chapter. Such contract may, however, be temporarily suspended by the president without prior notice, pending any prosecution, hearing, or investigation, whether by a third party or by the president. A contract may be suspended, revoked, or terminated by the president for one (1) or more of the reasons enumerated in subsection (1) of this section.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 10, effective December 15, 1988; 1994, ch. 170, § 10, effective July 15, 1994.

154A.420. Proceeds from ticket sales to constitute trust fund — Administrative regulation governing retailers’ deposit of lottery proceeds — Liability of lottery retailers — Priority of debt to corporation — Lien to secure retailer’s obligation to remit proceeds.

  1. All proceeds from the sale of lottery tickets received by a person in the capacity of a lottery retailer shall constitute a trust fund until paid to the corporation either directly, or through the corporation’s authorized collection representative. Proceeds shall include unsold instant tickets received by a lottery retailer and cash proceeds of sale of any lottery products, net of allowable sales commissions and credit for lottery prizes paid to winners by lottery retailers. Sales proceeds and unused instant tickets shall be delivered to the corporation or its authorized collection representative upon demand. The corporation shall, by administrative regulation, require retailers to place all lottery proceeds due the corporation in accounts in institutions insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation not later than the close of the next banking day after the date of their collection by the retailer until the date they are paid over to the corporation. The corporation may require a retailer to establish a single separate electronic funds transfer account, where available, for the purpose of receiving moneys from ticket sales, making payments to the corporation, and receiving payments from the corporation. Lottery retailers shall be personally liable for all proceeds. This section shall apply to all lottery tickets generated by computer terminal, other electronic device, and any other tickets delivered to lottery retailers.
  2. Whenever any person who receives proceeds from the sale of lottery tickets in the capacity of a lottery retailer becomes insolvent, or dies insolvent, the proceeds due the corporation from such person or his estate shall have preference over all debts or demands.
    1. A lien is hereby given to the corporation on all funds and other personal property, on all real property, and on all rights to real or personal property owned or subsequently acquired by each retailer in the amount of, and to secure, the retailer’s obligations to remit lottery proceeds to the corporation. The lien shall be in the amount of all sums due to the corporation at any time, together with all interest, penalties, fees, commissions, charges, and other expenses incurred by reason of nonpayment of the lottery proceeds to the corporation or in the process of collecting those proceeds, and shall have priority over any other obligation or liability for which the funds or real or personal property are liable. The lien shall be of equal rank with the tax liens of the state, or any city, county, or other taxing authority within the state. The lien shall arise upon the receipt of lottery proceeds by the retailer, whether or not the retailer is at that time obligated to remit all or any portion of those proceeds to the corporation, and shall be enforceable until the liability is paid or extinguished. (3) (a) A lien is hereby given to the corporation on all funds and other personal property, on all real property, and on all rights to real or personal property owned or subsequently acquired by each retailer in the amount of, and to secure, the retailer’s obligations to remit lottery proceeds to the corporation. The lien shall be in the amount of all sums due to the corporation at any time, together with all interest, penalties, fees, commissions, charges, and other expenses incurred by reason of nonpayment of the lottery proceeds to the corporation or in the process of collecting those proceeds, and shall have priority over any other obligation or liability for which the funds or real or personal property are liable. The lien shall be of equal rank with the tax liens of the state, or any city, county, or other taxing authority within the state. The lien shall arise upon the receipt of lottery proceeds by the retailer, whether or not the retailer is at that time obligated to remit all or any portion of those proceeds to the corporation, and shall be enforceable until the liability is paid or extinguished.
    2. The lien imposed by paragraph (a) of this subsection shall not be valid as against any purchaser, judgment lien creditor, or holder of a security interest or mechanic’s lien until notice of the corporation’s lien has been filed by the corporation with the county clerk of any county or counties in which the retailer’s business or residence is located, or in any county in which the retailer has an interest in property. The recording of the lien shall constitute notice of both the original obligation to the corporation and all subsequent obligations to the corporation of the same retailer. Upon request, the corporation shall disclose the specific amount of liability at any given date to any interested party legally entitled to the information.
    3. Even though notice of a lien has been filed as provided by paragraph (b) of this subsection, and notwithstanding the provisions of KRS 382.520 , the lien imposed by paragraph (a) of this subsection shall not be valid with respect to a security interest which comes into existence after the notice of lien has been filed by reason of disbursements made within forty-five (45) days after the date the lien was filed or the date the person making the disbursements had actual notice of the lien filing, whichever is earlier, if the security interest:
      1. Is in property which at the time of filing is subject to the lien imposed by paragraph (a) of this subsection, and is covered by the terms of a written agreement entered into before the lien is filed; and
      2. Is protected under local law against a judgment lien arising as of the time of the lien filing, out of an unsecured obligation.
    4. The corporation shall be afforded the same rights and remedies with respect to enforcement of any lien and collection of lottery proceeds as is afforded state, county, city, and other taxing authorities by KRS Chapter 134.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 13, effective December 15, 1988; 1994, ch. 170, § 11, effective July 15, 1994.

154A.430. Computation of retailer’s rental payments.

If a lottery retailer’s rental payments for the business premises are contractually computed, in whole or in part, on the basis of a percentage of retail sales, and such computation of retail sales is not explicitly defined to include sales of tickets in a state-operated lottery, the compensation received by the lottery retailer from the lottery shall be considered the amount of the retail sale for purposes of computing the rental payment.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 14, effective December 15, 1988.

154A.440. Ticket price — Gift — Sale — Tickets given as means of business promotion — Location of sale.

  1. No person shall sell a ticket at a price other than that established by the corporation, unless authorized in writing by the president. No person other than a duly certified lottery retailer shall sell lottery tickets, except that nothing in this chapter shall be construed to prevent a person who may lawfully purchase tickets from making a gift of lottery tickets to another. Nothing in this chapter shall be construed to prohibit the corporation from designating certain of its agents and employees to sell lottery tickets directly to the public.
  2. Lottery tickets may be given by merchants as a means of promoting goods or services to customers or prospective customers subject to approval by the corporation.
  3. No lottery retailer shall sell a ticket away from the locations listed in his contract.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 15, effective December 15, 1988.

154A.450. Lottery vending machines located within sight of retailer’s employee — Exceptions.

  1. Except for lottery vending machines located in factories or lottery vending machines located in package liquor stores, bars, or taverns to which persons under the age of eighteen (18) years are not permitted access, a lottery retailer shall locate any vending machine from which lottery tickets are dispensed in the sight of the employees of the lottery retailer.
  2. The provisions of this section shall not apply to blind persons who operate vending machines as a part of a program established by federal or state law.

History. Enact. Acts 2002, ch. 205, § 1, effective July 15, 2002.

Vendors

154A.600. Purchase, lease, or lease-purchase of goods or services — Investigation of prospective contractees — Disclosure requirements — Prohibited contracts, exceptions — Vendor’s performance bond, letter of credit or deposit of security — Liquidated damages — Laws governing contracts.

  1. The corporation may purchase, lease, or lease-purchase such goods or services as are necessary for effectuating the purposes of this chapter. Applicable leases, purchases, and lease-purchases shall be reported to the capital projects and bond oversight committee for its review and determination in accordance with the provisions of KRS 45.750 to 45.810 . The corporation shall not contract with any person or entity for the total operation and administration of the state lottery, but may make procurements which integrate functions such as lottery game design, lottery ticket distribution to retailers, supply of goods and services, and advertising. In all procurement decisions, the corporation shall take into account the particularly sensitive nature of the state lottery and shall act to promote and ensure security, honesty, fairness and integrity in the operation and administration of the lottery and the objectives of raising net proceeds for the benefit of the public purpose described in this chapter.
  2. The corporation shall investigate the financial responsibility, security, and integrity of any person who submits a bid, proposal or offer as part of a major procurement. At the time of submitting such bid, proposal, or offer to the corporation, the corporation may require the following items:
    1. A disclosure of the vendor’s name and address and, as applicable, the name and address of the following:
      1. If the vendor is a corporation, the officers, directors, and each stockholder in such corporation; except that, in the case of owners of equity securities of a publicly traded corporation, only the names and addresses of those known to the corporation to own beneficially five percent (5%) or more of such securities need be disclosed;
      2. If the vendor is a trust, the trustee and all persons entitled to receive income or benefit from the trust;
      3. If the vendor is an association, the members, officers, and directors; and
      4. If the vendor is a partnership or joint venture, all of the general partners, limited partners, or joint venturers.
    2. A disclosure of all the states and jurisdictions in which the vendor does business, and the nature of the business for each such state or jurisdiction.
    3. A disclosure of all the states and jurisdictions in which the vendor has contracts to supply gaming goods or services, including, but not limited to, lottery goods and services, and the nature of the goods or services involved for each such state or jurisdiction.
    4. A disclosure of all the states and jurisdictions in which the vendor has applied for, has sought renewal of, has received, has been denied, has pending, or has had revoked a gaming license of any kind, and the disposition of such in each such state or jurisdiction. If any gaming license has been revoked or has not been renewed or any gaming license application has been either denied or is pending and has remained pending for more than six (6) months, all of the facts and circumstances underlying the failure to receive such a license shall be disclosed.
    5. A disclosure of the details of any finding of guilt, in a state or federal court, against the vendor for any felony or any other criminal offense other than a traffic violation.
    6. A disclosure of the details of any bankruptcy, insolvency, reorganization, or any pending litigation of the vendor.
    7. Such additional disclosures and information as the corporation may determine to be appropriate for the procurement involved. If the vendor subcontracts any substantial portion of the work to be performed under the contract to a subcontractor, the vendor shall disclose all of the information required by this subsection for the subcontractor as if the subcontractor were itself a vendor.
  3. A contract for a procurement with any vendor subject to subsection (2) of this section who has not complied with the disclosure requirements described in subsection (2) of this section shall not be entered into, and any contract with such a vendor is unenforceable. Any contract with a vendor who does not comply with such requirements for periodically updating such disclosures during the tenure of contract as may be specified in such contract shall be terminated by the corporation. This subsection and subsection (2) of this section shall be construed broadly and liberally to achieve the ends of full disclosure of all information necessary to allow for a full and complete evaluation by the corporation of the competence, integrity, background and character of vendors for major procurements.
  4. A contract shall not be entered into with any vendor who has been found guilty of a felony committed within the preceding ten (10) years, unless the corporation determines that:
    1. The vendor has been pardoned or the vendor’s civil rights have been restored; and
    2. Subsequent to such findings of guilt the vendor has engaged in the kind of law-abiding commerce and good citizenship that would reflect well upon the integrity of the lottery; or
    3. If the vendor is a firm, association, partnership, trust, corporation or other entity, the vendor has terminated its relationship with the individual whose actions directly contributed to the vendor’s guilt.
  5. Each vendor shall, at the execution of the contract with the corporation, post a performance bond or letter of credit from a bank acceptable to the corporation, in an amount equal to the full amount estimated to be paid annually to the vendor under the contract. In lieu of the bond, a vendor may, to assure the faithful performance of its obligations, deposit and maintain with the State Treasurer securities that are interest bearing or accruing and that, with the exception of those specified in paragraph (a) or (b) of this subsection, are rated in one (1) of the three (3) highest classifications by an established nationally recognized investment rating service. Securities eligible under this subsection are limited to:
    1. Certificates of deposit issued by solvent banks or savings associations organized and existing under the laws of this state or under the laws of the United States and having their principal place of business in this state;
    2. United States bonds, notes, and bills for which the full faith and credit of the government of the United States is pledged for the payment of principal and interest;
    3. General obligation bonds and notes of any political subdivision of the state; or
    4. Corporate bonds of any corporation that is not an affiliate or subsidiary of the depositor. Such securities shall be held in trust and shall have at all times a market value at least equal to the full amount estimated to be paid annually to the lottery vendor under contract.
  6. Every contract entered into by the corporation pursuant to this section shall contain a provision for payment of liquidated damages to the corporation for any breach of contract by the vendor.
  7. Each vendor shall be qualified to do business in this state and shall file appropriate tax returns as provided by the laws of this state. All contracts under this section shall be governed by the laws of this state.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 17, effective December 15, 1988.

Criminal Background Investigations

154A.650. Criminal background investigations — Duties of corporation or its security division.

  1. The Department of Kentucky State Police shall, at the request of the division of security, perform full criminal background investigations on all potential vendors and potential employees of the corporation at the level of division director and above and at any level within the division of security. The corporation shall reimburse the Department of Kentucky State Police for the actual costs of such investigations.
  2. The corporation or its division of security shall:
    1. Conduct criminal background investigations and credit investigations on all potential retailers and investigate all potential employees of the corporation not referred to in subsection (1) of this section;
    2. Supervise ticket validation and lottery drawings;
    3. Inspect at times determined solely by the division, the facilities of any vendor in order to determine the integrity of the vendor’s product and in order to determine whether the vendor is in compliance with its contract;
    4. Report any suspected violations of this chapter to the appropriate Commonwealth’s attorney, or the Attorney General and law enforcement agencies; and
    5. Upon request, provide assistance to any Commonwealth’s attorney, the Attorney General or law enforcement agency investigating a violation of this chapter.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, § 19, effective December 15, 1988; 2007, ch. 85, § 163, effective June 26, 2007.

Penalties

154A.990. Penalties.

    1. Any person who knowingly sells a lottery ticket to a person under eighteen (18) years of age shall be guilty of a violation for the first offense and for each subsequent offense shall be guilty of a Class B misdemeanor. (1) (a) Any person who knowingly sells a lottery ticket to a person under eighteen (18) years of age shall be guilty of a violation for the first offense and for each subsequent offense shall be guilty of a Class B misdemeanor.
    2. Any lottery retailer who violates KRS 154A.450 shall be notified by the corporation in writing that the retailer shall have thirty (30) days in which to correct the violation. If at the end of that thirty (30) day period the violation is not corrected, the corporation shall remove all lottery vending machines from the retailer’s premises.
  1. Any person who, with intent to defraud, falsely makes, alters, forges, utters, passes, or counterfeits a state lottery ticket shall be guilty of a Class C felony.
  2. Any person who influences or attempts to influence the winning of a prize through the use of coercion, fraud, deception, or tampering with lottery equipment or materials shall be guilty of a Class B felony.
  3. Any person who violates the provisions of KRS 154A.030(2) shall be guilty of a Class D felony and shall be removed from the board.
  4. Any person who violates the provisions of KRS 154A.080(2) shall be fined not less than five thousand dollars ($5,000) nor more than fifty thousand dollars ($50,000) and shall be guilty of a Class D felony.
  5. Any person who violates the provisions of KRS 154A.080(3) shall be guilty of a Class D felony.
  6. Any person who violates the provisions of KRS 154A.080(4) shall be guilty of a Class A misdemeanor.
  7. Any person, including any retailer and any officers, directors, or employees of a corporate retailer, any general partner or employee of a retailer which is a partnership or joint venture, or any owner or employee of a retailer which is a sole proprietorship, who willfully violates the provisions of KRS 154A.420(1) shall be fined not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000) and shall be guilty of a Class D felony.
  8. Any person who violates the provisions of KRS 154A.440(1) for the first offense shall be guilty of a violation and for each subsequent offense shall be guilty of a Class B misdemeanor.
  9. Any person violating KRS 154A.160(2) is guilty of a Class D felony.
  10. Any person who knowingly provides false or intentionally misleading information to the corporation in connection with a background investigation prior to employment pursuant to KRS 154A.080(5), an application for a lottery retailer certificate under KRS 154A.400 , the corporation’s investigation of prospective vendors pursuant to KRS 154A.600 , or any investigation by the corporation’s Division of Security shall be fined not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000), and shall be guilty of a Class D felony.
  11. Unless the corporation shall have promulgated administrative regulations governing its procurements under KRS 154A.120(1), the provisions of KRS 45A.990(1) to 45A.990(8) shall be deemed to apply to procurement activities conducted under this chapter which are governed by KRS Chapter 45A. If the corporation has promulgated administrative regulations governing its procurements, any person who willfully violates the administrative regulations shall be guilty of a Class A misdemeanor.

History. Enact. Acts 1988 (Ex. Sess.), ch. 1, §§ 25, 29, effective December 15, 1988; 1992, ch. 463, § 18, effective July 14, 1992; 1994, ch. 170, § 12, effective July 15, 1994; 2002, ch. 205, § 2, effective July 15, 2002; 2005, ch. 105, § 12, effective March 16, 2005.

Legislative Research Commission Note.

(1988). Although references to the sale of “shares” were deleted in the Senate committee substitute, due to a clerical error, such reference was not deleted in subsection (2) of this section. The Reviser of Statutes, pursuant to KRS 7.136 , has removed the words “or shares” to conform.

NOTES TO DECISIONS

1.Constitutionality.

Subsection (2) of this section, which prohibits the forgery of lottery tickets, was not special legislation in violation of Ky. Const., § 59; the penalty imposed by subsection (2) of this section serves a legitimate governmental interest in maintaining the integrity of the lottery. Harris v. Commonwealth, 878 S.W.2d 801, 1994 Ky. App. LEXIS 68 (Ky. Ct. App. 1994).

When the Kentucky constitution was amended to allow for the creation of the lottery, the General Assembly could have amended KRS 516.020 to include forgery of lottery tickets. Rather than amend the existing legislation, however, it enacted subsection (2) of this section, which addresses only the forgery of lottery tickets. As it clearly would not have been special legislation to amend KRS 154A.020 to include forgery of lottery tickets, similarly this section does not constitute special legislation. Creation of a separate statutory provision is in conformity with the constitutional amendment allowing the General Assembly to promulgate legislation regulating and protecting the integrity of the lottery. Harris v. Commonwealth, 878 S.W.2d 801, 1994 Ky. App. LEXIS 68 (Ky. Ct. App. 1994).

CHAPTER 154B Economic and Jobs Development

154B.100. Definitions. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-510 .

154B.102. Creation of the corporation — Purpose — Interim board of directors. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-515 .

154B.104. Corporation membership — Intergovernmental agreement — Amendment of articles of agreement. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-520 .

154B.106. Board of directors — Terms of office — Vacancies. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-525 .

154B.108. Removal of members — Meetings — Officers. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-527 .

154B.110. Powers and authority of corporation. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-535 .

154B.112. Executive committee — Membership — Powers and duties — Meetings — Expenses. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-540 .

154B.114. Bonds. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-545 .

154B.116. East Kentucky economic development fund. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-550 .

154B.118. Construction of KRS 154B.100 to 154B.150. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-555 .

154B.120. Bonds payable from revenue and assets. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-560 .

154B.122. Negotiability of obligations of the corporation. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-565 .

154B.124. Obligations are authorized investments. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-570 .

154B.126. Limitations on liability of corporate members or officers. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-533 .

154B.128. Tax-exempt status. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-575 .

154B.130. Disclosure of conflict of interest of member, officer, or employee of the corporation. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-530 .

154B.132. Disposition of corporation assets upon termination or dissolution of the corporation. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-580 .

154B.134. Annual report — Annual audit of the corporation. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-585 .

154B.150. Title. [Renumbered.]

Compiler’s Notes.

This section was renumbered as KRS 154.33-501 .

CHAPTER 155 Business Development Corporations

155.001. Title.

This chapter shall be known as “The Business Development Corporation Act.”

History. Enact. Acts 1960, ch. 73, § 1, effective March 21, 1960.

Opinions of Attorney General.

The Business Development Corporation Act does not contain condemnation authority. OAG 67-399 .

155.010. Definitions.

As used in this section and KRS 155.080 and 155.090 , unless the context otherwise requires:

  1. “Corporation” means a business development corporation created under this section and KRS 155.080 and 155.090 .
  2. “Financial institution” means any banking corporation or public or private pension or retirement fund, trust company, building and loan association, insurance company or related corporation, partnership, foundation, or other institution engaged in lending or investing funds.
  3. “Member” means any financial institution authorized to do business within this Commonwealth which undertakes to lend money to a corporation created under this section and KRS 155.080 and 155.090 , upon its call, and in accordance with the provisions of this section and KRS 155.080 and 155.090 .
  4. “Board of directors” means the board of directors of the corporation created under this section and KRS 155.080 and 155.090 .
  5. “Loan limit” means for any member, the maximum amount permitted to be outstanding at one (1) time on loans made by such member to the corporation, other than short term loans, as determined under the provisions of KRS 155.080 and 155.090 .
  6. “Short term loans” means loans to the corporation made for that period not to exceed one (1) year and not to exceed one million dollars ($1,000,000).

History. Enact. Acts 1960, ch. 73, § 2; 1966, ch. 212, § 1.

155.020. Incorporation — Name — Purposes.

Twenty-five (25) or more persons, a majority of whom are residents of this Commonwealth, who desire to create a business development corporation under the provisions of this chapter, for the purpose of promoting, developing and advancing the prosperity and economic welfare of the Commonwealth and, to that end, to exercise the powers and privileges hereinafter provided, may be incorporated in the following manner. Such persons shall, by articles of incorporation filed with the Secretary of State, signed and acknowledged by them, set forth:

  1. The name of the corporation, which shall include the words “business development corporation”;
  2. The location of the principal office of the corporation, but such corporation may have offices in such other places within the Commonwealth as may be fixed by the board of directors;
  3. The purpose for which the corporation is founded, which shall include the following: The purposes of the corporation shall be to promote, stimulate, develop and advance the business prosperity and economic welfare of the Commonwealth of Kentucky and its citizens; to encourage and assist through loans, investments or other business transactions, in the location of new business and industry in this Commonwealth and to rehabilitate and assist existing business and industry; and so to stimulate and assist in the expansion of all kinds of business activity which will tend to promote the business development and maintain the economic stability of this Commonwealth, provide maximum opportunities for employment, encourage thrift, and improve the standard of living of the citizens of this Commonwealth; similarly, to cooperate and act in conjunction with other organizations, public or private, in the promotion and advancement of industrial, commercial, agricultural and recreational developments in this Commonwealth; and to provide financing for the promotion, development, and conduct of all kinds of business activity in this Commonwealth.

History. Enact. Acts 1960, ch. 73, § 3, effective March 21, 1960.

155.030. Powers of corporation.

In furtherance of the purposes set forth in KRS 155.020 above and in addition to the powers conferred on business corporations by the provisions of KRS Chapter 271B, the corporation shall, subject to the restrictions and limitations herein contained, have the following powers:

  1. To elect, appoint and employ officers, agents and employees; to make contracts and incur liabilities for any of the purposes of the corporation; provided, that the corporation shall not incur any secondary liability by way of guaranty or indorsement of the obligations of any person, firm, corporation, joint-stock company, association, or trust, or in any other manner;
  2. To borrow money from any source including the United States government, or any instrumentality thereof, including the small business administration and similar agencies, for any of the purposes of the corporation; to issue therefor its bonds, debentures, notes or other evidences of indebtedness, whether secured or unsecured, and to secure the same by mortgage, pledge, deed of trust or other lien on its property, franchises, rights and privileges of every kind and nature or any part thereof or interest therein, without stockholder or member approval; provided, that no loan to the corporation shall be secured in any manner unless all outstanding loans to the corporation are secured equally and ratably in proportion to the unpaid balance of such loans and in the same manner;
  3. To make loans to any person, firm, corporation, joint-stock company, association or trust, and to establish and regulate the terms and conditions with respect to any such loans and the charges for interest and service connected therewith; provided, however, that the corporation shall not approve any application for a loan unless and until the person applying for said loan shall show that he has applied for the loan through ordinary banking channels and that the application has been refused by at least one (1) bank or other financial institution. The corporation may charge interest on such loans at rates of interest not to exceed whichever is the higher of the two (2) following rates: (a) the rate mentioned in KRS 360.010; (b) two percent (2%) in excess of the prime rate prevailing on unsecured commercial loans among the majority of the New York City clearinghouse member banks on the first day of the month in which the loan is made;
  4. To purchase, receive, hold, lease, or otherwise acquire, and to sell, convey, transfer, lease or otherwise dispose of real and personal property, together with such rights and privileges as may be incidental and appurtenant thereto and the use thereof, including, but not restricted to, any real or personal property acquired by the corporation from time to time in the satisfaction of debts or enforcement of obligations;
  5. To acquire the good will, business, rights, real and personal property, and other assets, or any part thereof, or interest therein, of any persons, firms, corporations, joint-stock companies, associations, or trusts, and to assume, undertake, or pay the obligations, debts, and liabilities of any such person, firm, corporation, joint-stock company, association or trust; to acquire improved or unimproved real estate for the purpose of constructing industrial plants or other business establishments thereon or for the purpose of disposing of such real estate to others for the construction of industrial plants or other business establishments; and to acquire, construct or reconstruct, alter, repair, maintain, operate, sell, convey, transfer, lease, or otherwise dispose of industrial plants or business establishments;
  6. To acquire, subscribe for, own, hold, sell, assign, transfer, mortgage, pledge or otherwise dispose of the stock, shares, bonds, debentures, notes or other securities and evidences of interest in, or indebtedness of, any person, firm, corporation, joint-stock company, association or trust, and while the owner or holder thereof to exercise all the rights, powers, and privileges of ownership, including the right to vote thereon; and to acquire stock or stock options in the corporation or organization to which it makes loans;
  7. To mortgage, pledge, or otherwise encumber any property, right or thing of value, acquired pursuant to the powers contained in subsections (4), (5), or (6), as security for the payment of any part of the purchase price thereof;
  8. To cooperate with and avail itself of the facilities of the Cabinet for Economic Development and the Industrial Development Finance Authority and any similar governmental or private agencies; and to cooperate with and assist, and otherwise encourage organizations in the various communities of the Commonwealth in the promotion, assistance, and development of the business prosperity and economic welfare of such communities or of this Commonwealth or of any part thereof;
  9. To do all acts and things necessary or convenient to carry out the powers granted in this chapter.

History. Enact. Acts 1960, ch. 73, § 4, effective March 21, 1960; 1980, ch. 188, § 115, effective July 15, 1980; 1982, ch. 396, § 37, effective July 15, 1982.

Legislative Research Commission Note.

(10/29/96). Under KRS 7.136(2), a reference to the Department of [i.e., for] Existing Business and Industry in subsection (8) of this statute has been changed to the Cabinet for Economic Development. This department was eliminated by the repeal of KRS 154.12-209 by 1994 Ky. Acts ch. 499, sec. 28, and the duties and functions of the department were reassigned to the cabinet, see 1994 Ky. Acts ch. 499, secs. 13, 14, and 15.

155.040. Contents of articles of incorporation.

The articles of incorporation shall set forth the amount of total authorized capital stock and the number of shares in which it is divided, the par value of each share, and the amount of capital stock with which the corporation will commence business and, if there is more than one (1) class of stock, a description of the different classes, and the names and post office addresses of the subscribers of stock and the number of shares subscribed by each. The aggregate of the subscription shall be the amount of capital with which the corporation will commence business. The articles of incorporation may also contain any provision consistent with the laws of this Commonwealth for the regulation of the affairs of the corporation or creating, defining, limiting, and regulating its power.

History. Enact. Acts 1960, ch. 73, § 5, effective March 21, 1960.

155.050. Approval of Governor — Effective date of incorporation.

Before the said articles of incorporation shall become effective, they must be approved by the Governor, and from the date the said articles of incorporation are filed in the office of the Secretary of State, with such approval, the stock subscribers, their successors and assigns, shall become a body corporate, by the name specified in the articles, subject to amendment and dissolution as provided in this chapter.

History. Enact. Acts 1960, ch. 73, § 6, effective March 21, 1960.

155.060. First meeting.

  1. The first meeting of the corporation shall be called by a notice signed by three (3) or more of the incorporators, stating the time, place and purpose of the meeting, a copy of which notice shall be mailed, or delivered, to each incorporator at least five (5) days before the day appointed for the meeting. Said first meeting may be held without such notice upon agreement in writing to that effect signed by all the incorporators. There shall be recorded in the minutes of the meeting a copy of said notice or of such unanimous agreement of the incorporators.
  2. At such first meeting the incorporators shall organize by the choice, by ballot, of a temporary clerk, by the adoption of bylaws, by the election by ballot of directors, and by action upon such other matters within the powers of the corporation as the incorporators may see fit. The temporary clerk shall be sworn and shall make and attest a record of the proceedings. Ten (10) of the incorporators shall be a quorum for the transaction of business.

History. Enact. Acts 1960, ch. 73, § 17, effective March 21, 1960.

155.070. Powers and limitations of other corporate bodies in relation to corporation.

Notwithstanding any rule at common law or any provision of any general or special law or any provision in their respective charters, agreements of association, articles of organization, or trust indentures: (1) all domestic corporations organized for the purpose of carrying on business within this Commonwealth including without implied limitation any public utility companies and insurance and casualty companies and foreign corporations licensed to do business in the Commonwealth, and all trusts, and private or public pension or retirement funds are hereby authorized to acquire, purchase, hold, sell, assign, transfer, mortgage, pledge or otherwise dispose of any bonds, securities or other evidences of indebtedness created by, or the shares of the capital stock of, the corporation, and while owners of said stock to exercise all the rights, powers and privileges of ownership, including the right to vote thereon, all without the approval of any regulatory authority of the Commonwealth; (2) all financial institutions are hereby authorized to become members of the corporation and to make loans to the corporation as provided herein; (3) a financial institution which does not become a member of the corporation shall not be permitted to acquire any shares of the capital stock of the corporation; and (4) each financial institution which becomes a member of the corporation is hereby authorized to acquire, purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwise dispose of, any bonds, securities or other evidences of indebtedness created by, or the shares of the capital stock of the corporation, and while owners of said stock to exercise all the rights, powers and privileges of ownership, including the right to vote thereon, all without the approval of any regulatory authority of the Commonwealth; provided, that the amount of the capital stock of the corporation which may be acquired by any member pursuant to the authority granted herein shall not exceed ten percent (10%) of the loan limit of such member, except that a public pension or retirement fund which becomes a member may acquire capital stock of the corporation not to exceed twenty-five percent (25%) of the loan limit of such member. The amount of capital stock of the corporation which any member is authorized to acquire pursuant to the authority granted herein is in addition to the amount of capital stock in corporations which such member may otherwise be authorized to acquire.

History. Enact. Acts 1960, ch. 73, § 7, effective March 21, 1960.

155.080. Membership — Duty of members — Loan limit formula.

  1. Any financial institution may request membership in the corporation by making application to the board of directors on such form and in such manner as said board of directors may require, and membership shall become effective upon acceptance of such application by said board.
  2. Except for short term loans which members may make at their discretion, each member of the corporation shall make loans to the corporation as and when called upon by it to do so on such terms and other conditions as shall be approved from time to time by the board of directors, subject to the following conditions:
    1. All loan limits shall be established at the thousand dollar ($1,000) amount nearest to the amount computed in accordance with the provisions of this section;
    2. No loan to the corporation shall be made if immediately thereafter the total amount of the obligations of the corporation would exceed twenty (20) times the amount then paid in on the outstanding capital stock of the corporation; and
    3. The total amount outstanding on loan to the corporation made by any member at any one (1) time when added to the amount of the investment in the capital stock of the corporation then held by such member shall not exceed the following limit, to be determined as of the time such member becomes a member on the basis of the audited balance sheet of such member at the close of its fiscal year immediately preceding its application for membership, or, in the case of an insurance company, its last annual statement to the commissioner of insurance:
      1. Two percent (2%) of the capital and surplus of commercial banks and trust companies;
      2. One percent (1%) of the total outstanding loans made by a building and loan association: provided, however, that any business development corporation created pursuant to this section, KRS 155.010 and 155.090 may in its articles of incorporation, or by appropriate amendment thereto, provide that the loan limit of a building and loan association member shall be only one-half of one percent (0.5%) of the total outstanding loans made by such building and loan association member;
      3. One percent (1%) of the capital and unassigned surplus of stock insurance companies, except fire insurance writing companies;
      4. One percent (1%) of the unassigned surplus of mutual insurance companies, except fire insurance writing companies;
      5. One-tenth of one percent (0.1%) of the assets of fire insurance writing companies; and
      6. Such limits as may be approved by the board of directors of the corporation for other financial institutions.

History. Enact. Acts 1960, ch. 73, § 8; 1962, ch. 197, § 1; 1966, ch. 212, § 2; 1976, ch. 214, § 9; 2010, ch. 24, § 208, effective July 15, 2010.

155.090. Distribution among members of loan call — Interest rate.

  1. Each call made by the corporation shall be prorated among the members of the corporation in substantially the same proportion that the adjusted loan limit of each member bears to the aggregate of the adjusted loan limits of all members. The adjusted loan limit of a member shall be the amount of such member’s loan limit, reduced by the balance of outstanding loans made by such member to the corporation, other than short term loans, and the investment in capital stock of the corporation held by such member at the time of such call.
  2. All loans to the corporation by members, other than short term loans, shall be evidenced by bonds, debentures, notes, or other evidence of indebtedness of the corporation, which shall be freely transferable at all times, and which shall bear interest at a rate of not less than one-quarter of one percent (0.25%) in excess of the rate of interest as determined by the prime rate prevailing on unsecured commercial loans among the majority of the New York City clearing house member banks on the first day of the month in which the loan is made to the corporation.

History. Enact. Acts 1960, ch. 73, § 9; 1966, ch. 212, § 3.

155.100. Duration of membership — Withdrawal.

Membership in the corporation shall be for the duration of the corporation; provided that,

  1. Upon written notice given to the corporation three (3) years in advance, a member may withdraw from membership in the corporation at the expiration date of such notice;
  2. A member shall not be obligated to make any loans to the corporation pursuant to calls made subsequent to the notice of intention to withdraw of said member.

History. Enact. Acts 1960, ch. 73, § 10, effective March 21, 1960.

155.110. Powers of members and stockholders — Voting.

  1. The stockholders and members of the corporation shall have the following powers of the corporation:
    1. To determine the number of and elect directors as provided in KRS 155.130 ;
    2. To make, amend and repeal bylaws;
    3. To amend its articles of incorporation as provided in KRS 155.120 ;
    4. To exercise such other of the powers of the corporation as may be conferred on the stockholders and the members by the bylaws.
  2. As to all matters requiring action by the stockholders and the members of the corporation, said stockholders and said members shall vote separately thereon by classes, and, except as otherwise herein provided, such matters shall require the affirmative vote of a majority of the votes to which the stockholders present or represented at the meeting are entitled, and the affirmative vote of a majority of the votes to which the members present or represented at the meeting are entitled.
  3. Each stockholder shall have one (1) vote, in person or by proxy, for each share of capital stock held by him, and each member shall have one (1) vote, in person or by proxy, except that any member having a loan limit of more than one thousand dollars ($1,000) shall have one (1) additional vote, in person or by proxy, for each additional one thousand dollars ($1,000) which such member is authorized to have outstanding on loans to the corporation at any one (1) time as determined under paragraph (c) of subsection (2) of KRS 155.080 .

History. Enact. Acts 1960, ch. 73, § 11, effective March 21, 1960.

155.120. Amendment of articles of incorporation.

  1. Articles of incorporation may be amended by the votes of the stockholders and the members of the corporation, voting separately by classes, and such amendments shall require approval by the affirmative vote of two-thirds (2/3) of the votes to which the stockholders are entitled and two-thirds (2/3) of the votes to which the members are entitled; provided, that no amendment of the articles of incorporation which is inconsistent with the general purposes expressed herein or which authorizes any additional class of capital stock to be issued, shall be made.
  2. Within thirty (30) days after any meeting at which amendment of the articles of incorporation has been adopted, articles of amendment signed and sworn to by the president, treasurer and a majority of the directors, setting forth such amendment and the due adoption thereof, shall be submitted to the Secretary of State, as provided in KRS Chapter 271B.

History. Enact. Acts 1960, ch. 73, § 12, effective March 21, 1960; 1980, ch. 188, § 116, effective July 15, 1980; 1988, ch. 23, § 175, effective January 1, 1989.

155.130. Board of directors — Functions — Composition — Freedom from liability.

  1. The business and affairs of the corporation shall be managed and conducted by a board of directors, a president and treasurer, and such other officers and such agents as the corporation by its bylaws shall authorize. The board of directors shall consist of such number, not less than fifteen (15) nor more than thirty (30), as shall be determined in the first instance by the incorporators and thereafter annually by the members and the stockholders of the corporation.
  2. The board of directors may exercise all the powers of the corporation except such as are conferred by law or by the bylaws of the corporation upon the stockholders or members and shall choose and appoint all the agents and officers of the corporation and fill all vacancies, except vacancies in the office of director, which shall be filled as hereinafter provided.
  3. The board of directors shall be elected in the first instance by the incorporators and thereafter at each annual meeting of the corporation, or if no annual meeting is held in any year at the time fixed by the bylaws, at a special meeting held in lieu of the annual meeting. At each annual meeting, or at each special meeting held in lieu of the annual meeting, the members of the corporation shall elect two-thirds (2/3) of the board of directors and the stockholders shall elect the remaining directors. The directors shall hold office until the next annual meeting of the corporation or special meeting held in lieu of the annual meeting after their election and until their successors are elected and qualified unless sooner removed in accordance with the provisions of the bylaws. Any vacancy in the office of a director elected by the members shall be filled by the directors elected by the members, and any vacancy in the office of a director elected by the stockholders shall be filled by the directors elected by the stockholders.
  4. Directors and officers shall not be responsible for losses unless the same shall have been occasioned by the willful misconduct of such directors and officers.

History. Enact. Acts 1960, ch. 73, § 13; 1962, ch. 197, § 2.

155.140. Required earned surplus.

Each year the corporation shall set apart as earned surplus not less than ten percent (10%) of its net earnings for the preceding fiscal year until such surplus is equal in value to one-half (1/2) of the amount paid in on the capital stock then outstanding. Whenever the amount of surplus established herein becomes impaired, it shall be built up again to the required amount in the manner provided for its original accumulation. Net earnings and surplus shall be determined by the board of directors, after providing for such reserves as said directors deem desirable, and the directors’ determination made in good faith shall be conclusive on all persons.

History. Enact. Acts 1960, ch. 73, § 14, effective March 21, 1960.

155.150. Restrictions on deposits.

  1. The corporation shall not deposit any of its funds in any banking institution unless such institution has been designated as a depository by a vote of a majority of the directors present at an authorized meeting of the board of directors, exclusive of any director who is an officer or director of the depository so designated.
  2. The corporation shall not receive money on deposit except for purposes stated in this chapter.

History. Enact. Acts 1960, ch. 73, § 15, effective March 21, 1960.

155.160. Regulation by state officials.

The corporation shall be subject to the examination of the commissioner of the Department of Financial Institutions, and shall make reports of its condition not less often than annually to said commissioner, who in turn shall make copies of such reports available to the commissioner of insurance and to the Governor. The corporation shall also furnish such other information as may from time to time be required by the Secretary of State.

History. Enact. Acts 1960, ch. 73, § 16, effective March 21, 1960; 2010, ch. 24, § 209, effective July 15, 2010.

155.170. Excise tax on corporations — Report — Items free from taxation — Credit for losses.

  1. An annual excise tax is hereby levied on every corporation organized under this chapter for the privilege of transacting business in this Commonwealth during the calendar year, according to or measured by its entire net income, as defined herein, received or accrued from all sources during the preceding calendar year, hereinafter referred to as taxable year, at the rate of four and one-half percent (4.5%) of such entire net income. The minimum tax assessable to any one (1) such corporation shall be ten dollars ($10). The liability for the tax imposed by this section shall arise upon the first day of each calendar year, and shall be based upon and measured by the entire net income of each such corporation for the preceding calendar year, including all income received from government securities in such year. As used in this section the words “taxable year” mean the calendar year next preceding the calendar year for which and during which the excise tax is levied.
  2. The excise tax levied under subsection (1) of this section shall be in lieu of the taxes imposed by KRS 141.040 and the taxes imposed by KRS 141.040 1. It is the purpose and intent of the General Assembly to levy taxes on corporations organized pursuant to this chapter so that all such corporations will be taxed uniformly in a just and equitable manner in accordance with the provisions of the Constitution of the Commonwealth of Kentucky. The intent of this section is for the General Assembly to exercise the powers of classification and of taxation on property, franchises, and trades conferred by Section 171 of the Constitution of the Commonwealth.
  3. On or before June 1 of each year, the executive officer or officers of each corporation shall file with the commissioner of the Department of Revenue a full and accurate report of all income received or accrued during the taxable year, and also an accurate record of the legal deductions in the same calendar year to the end that the correct entire net income of the corporation may be determined. This report shall be in such form and contain such information as the commissioner of the Department of Revenue may specify. At the time of making such report by each corporation, the taxes levied by this section with respect to an excise tax on corporations organized pursuant to this chapter shall be paid to the commissioner of the Department of Revenue.
  4. The securities, evidences of indebtedness, and shares of the capital stock issued by the corporation established under the provisions of this chapter, their transfer, and income therefrom and deposits of financial institutions invested therein, shall at all times be free from taxation within the Commonwealth.
  5. Any stockholder, member, or other holder of any securities, evidences of indebtedness, or shares of the capital stock of the corporation who realizes a loss from the sale, redemption, or other disposition of any securities, evidences of indebtedness, or shares of the capital stock of the corporation, including any such loss realized on a partial or complete liquidation of the corporation, and who is not entitled to deduct such loss in computing any of such stockholder’s, member’s, or other holder’s taxes to the Commonwealth shall be entitled to credit against any taxes subsequently becoming due to the Commonwealth from such stockholder, member, or other holder, a percentage of such loss equivalent to the highest rate of tax assessed for the year in which the loss occurs upon mercantile and business corporations.

History. Enact. Acts 1960, ch. 73, § 18, effective March 21, 1960; 2005, ch. 168, § 35, effective January 1, 2006; 2006 (1st Ex. Sess.), ch. 2, § 67, effective June 28, 2006; 2019 ch. 151, § 73, effective June 27, 2019.

Legislative Research Commission Notes.

(4/27/2018). KRS 136.070 was repealed in 2018 Ky. Acts chs. 171 and 207, but a conforming amendment was not made to this statute to address the reference it contains to KRS 136.070 . The Reviser of Statutes has determined that making such a conforming change during the 2018 codification exceeds the permissible correction of manifest clerical or typographical errors under KRS 7.136(1)(h). Therefore, the reference to KRS 136.070 remains unchanged and would have to be changed pursuant to future legislative action.

(6/28/2006). 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 73, provides that “unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007.”

155.180. Duration of corporation.

The period of duration of a corporation organized under this chapter shall be perpetual.

History. Enact. Acts 1960, ch. 73, § 19, effective March 21, 1960; 1976, ch. 214, § 10.

155.190. Effect of failure of any corporation to organize, or of organized corporation to begin doing business.

If a corporation organized pursuant to this chapter fails to begin business within three (3) years from the effective date of its certificate of incorporation, then said certificate shall become null and void. If, within three (3) years from March 21, 1960, no corporation is organized pursuant to this chapter, then and in that event, this chapter shall become null and void.

History. Enact. Acts 1960, ch. 73, § 20, effective March 21, 1960.

155.200. Credit of Commonwealth is not pledged.

Under no circumstances is the credit of the Commonwealth pledged herein.

History. Enact. Acts 1960, ch. 73, § 21, effective March 21, 1960.

155.210. Specified late charges for default of loan and litigation charges treated as liquidated damages.

A business development corporation may require as a part of any loan made by it, that in the event of a default by the borrower in the repayment or other terms of the loan obligation, the borrower shall pay late charges of a specified amount of up to five percent (5%) per month of the amount of the monthly installment in arrears. Moreover, a business development corporation may require that in the event any litigation becomes necessary as a consequence of the borrower’s default, the borrower shall further be liable for a specified amount of up to two percent (2%) of the unpaid principal balance owed on such loan. Such provisions shall be treated as liquidated damages and shall be valid and enforceable by the courts for all purposes.

History. Enact. Acts 1980, ch. 360, § 1, effective July 15, 1980.

155.220. Interest on judgment for collection or repayment of defaulted loan.

Notwithstanding any law to the contrary, and regardless of the legal rate of interest, in any case brought by a business development corporation to obtain the collection or repayment of a defaulted loan, as part of a successful judgment against the debtor or guarantor the business development corporation shall be entitled to an award of interest thereon at the rate of interest provided in the loan documents executed by the debtor pertaining to the defaulted loan, and the rate of interest shall run and shall be payable until the judgment is satisfied in full.

History. Enact. Acts 1980, ch. 360, § 2, effective July 15, 1980.

155.230. Reasonable attorneys’ fees, provision for.

In any legal action brought by a business development corporation to obtain the collection or repayment of a defaulted loan, as part of a successful judgment against the debtor or guarantor the business development corporation shall be entitled to an award of reasonable attorneys’ fees incurred in the recovery of the defaulted loan, provided that a provision therefor is contained in the loan documents signed by the debtor or guarantor as part of a loan transaction between the debtor or guarantor and the business development corporation.

History. Enact. Acts 1980, ch. 360, § 3, effective July 15, 1980.

Commonwealth Venture Fund

155.400. Title. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 123, § 1, effective July 15, 1988) was repealed, reenacted, and amended as KRS 154.20-300 by Acts 1992, ch. 105, § 42, effective July 14, 1992.

155.410. Purpose. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 123, § 2, effective July 15, 1988) was repealed, reenacted, and amended as KRS 154.20-305 by Acts 1992, ch. 105, § 43, effective July 14, 1992.

155.420. Definitions. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 123, § 3, effective July 15, 1988) was repealed, reenacted, and amended as KRS 154.20-310 by Acts 1992, ch. 105, § 44, effective July 14, 1992.

155.430. Establishment and operation of fund. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 123, § 4, effective July 15, 1988) was repealed, reenacted, and amended as KRS 154.20-320 by Acts 1992, ch. 105, § 45, effective July 14, 1992.

155.440. Investment tax credits — Years — Carryovers. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 123, § 5, effective July 15, 1988) was repealed, reenacted, and amended as KRS 154.20-340 by Acts 1992, ch. 105, § 46, effective July 14, 1992.

155.450. Maximum credits. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 123, § 6, effective July 15, 1988) was repealed, reenacted, and amended as KRS 154.20-350 by Acts 1992, ch. 105, § 47, effective July 14, 1992.

155.460. Application of tax credit. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 123, § 7, effective July 15, 1988) was repealed, reenacted, and amended as KRS 154.20-360 by Acts 1992, ch. 105, § 48, effective July 14, 1992.

155.470. Procedure to receive tax credit. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 123, § 8, effective July 15, 1988) was repealed, reenacted, and amended as KRS 154.20-370 by Acts 1992, ch. 105, § 49, effective July 14, 1992.

155.480. Loss of credit through early redemption. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 123, § 9, effective July 15, 1988) was repealed, reenacted, and amended as KRS 154.20-380 by Acts 1992, ch. 105, § 50, effective July 14, 1992.

155.490. Reporting requirements. [Repealed, reenacted, and amended.]

Compiler’s Notes.

This section (Enact. Acts 1988, ch. 123, § 10, effective July 15, 1988) was repealed, reenacted, and amended as KRS 154.20-390 by Acts 1992, ch. 105, § 51, effective July 14, 1992.