2013 Kentucky Revised Statutes CHAPTER 42 - FINANCE AND ADMINISTRATION CABINET 42.4588 Local Government Economic Development Program -- Use of grants -- Procedures.
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42.4588 Local Government Economic Development Program -- Use of grants
-- Procedures.
(1)
(2)
(3)
(a)
A Local Government Economic Development Program is established to
consist of a system of grants to counties to attract new industry. Grants
from funds provided for in KRS 42.4592(1)(a) and (b) shall be
administered by the Department for Local Government. Grants from funds
provided for in KRS 42.4592(1)(c) shall be administered by the Kentucky
Economic Development Finance Authority.
(b) All references in this section to the commissioner of the Department for
Local Government relate only to the grants or industrial development
projects funded through KRS 42.4592(1)(a) and (b). All references in this
section to the secretary of the Cabinet for Economic Development or the
Kentucky Economic Development Finance Authority relate only to grants
or industrial development projects funded through KRS 42.4592(1)(c).
Grants obtained under this program shall be used for:
(a) Industrial development projects if an industrial firm has agreed with the
local government, to the satisfaction of the Kentucky Economic
Development Finance Authority or the Department for Local Government,
to develop, in conjunction with the industrial development project,
manufacturing, processing, assembling, or other facilities approved by the
secretary of the Cabinet for Economic Development or the commissioner
of the Department for Local Government;
(b) Industrial development projects if the secretary of the Cabinet for
Economic Development or the commissioner of the Department for Local
Government finds that the project is necessary for the creation of an
environment for new industry in order to obtain an agreement from an
industrial firm to develop manufacturing, processing, assembling, or other
facilities approved by the secretary of the Cabinet for Economic
Development or the commissioner of the Department for Local
Government; and
(c) Debt service for industrial development projects, as defined in subsection
(2)(a) and (b) of this section, or for facilities approved by the secretary of
the Cabinet for Economic Development or the commissioner of the
Department for Local Government under the provisions of subsection (3)
of this section.
The secretary of the Cabinet for Economic Development or the commissioner
of the Department for Local Government may approve facilities, other than
manufacturing, processing, or assembling facilities, for industrial development
projects when the secretary or the commissioner finds that the facility will add
value to a product. Value-added facilities shall include data processing,
telecommunication, and distribution facilities but shall not include retail facilities
or coal mining, coal processing, or coal transportation facilities. The secretary
or the commissioner may also approve privately owned facilities for transient
lodging and recreation where the secretary or commissioner finds that the cost
of the recreation component of the facility is equal to, or greater than, the cost
of the lodging component of the facility. The criteria for approval of applications
for grants provided for in subsection (10)(a), (b), and (c) of this section shall be
paramount in the case of lodging and recreational facilities.
(4) Applications for grants from funds provided for in KRS 42.4592(1)(a) and (b)
shall be made by the legislative bodies of one (1) or more counties with
accounts in the local government economic development fund. Applications for
grants from funds provided for in KRS 42.4592(1)(c) shall be made by the
legislative bodies of two (2) or more counties with accounts in the local
government economic development fund. No grant shall be awarded without
application for a grant.
(5) A grant may be awarded for an industrial development project located in a
county that does not have an account in the local government economic
development fund, if the secretary of the Cabinet for Economic Development or
the commissioner of the Department for Local Government finds that the
industrial development project may be reasonably expected to create jobs for
residents of the local unit or units of government applying for the grant.
Application for the grant shall be made by the legislative bodies of one (1) or
more counties with accounts in the local government economic development
fund.
(6) An industrial development project may include legal, accounting, engineering,
and marketing expenses for a regional industrial park, in addition to the
activities set forth in subsection (11)(a) of this section.
(7) Grants awarded from funds provided for in KRS 42.4592(1)(a) and (b) shall not
exceed the total balance of the accounts of the applicant counties at the time of
the award of the grant.
(8) Grants awarded under the provisions of subsection (2)(c) of this section may
be for a period not to exceed the current biennium of the Commonwealth and
shall be limited to an amount not to exceed the amount estimated to be
allocated to the applicant county or counties for the current biennium under the
provisions of KRS 42.4592(1)(a) and (b).
(9) Approval of grant applications shall be by the secretary of the Cabinet for
Economic Development or the commissioner of the Department for Local
Government. Award of grants from funds provided for in KRS 42.4592(1)(c)
shall be by the Kentucky Economic Development Finance Authority. Award of
grants from funds provided for in KRS 42.4592(1)(a) and (b) shall be by the
commissioner of the Department for Local Government.
(10) Criteria for approval of applications and the award of grants to be considered, if
applicable, shall include:
(a) The number of jobs to be created or preserved, directly or indirectly, by
the industrial development project;
(b) Payrolls, and the taxes generated, both at the state and local levels, by
the industrial development project and taxes generated by the
employment created or preserved by the industrial development project;
(c) The size, nature, and cost of the industrial development project, including
the prospect of the industrial development project providing long-term
jobs in enterprises consistent with the changing economies of the affected
local units of government;
(d) The needs, and degree of needs, of the local units of government which
will be affected by the industrial development project;
(e) The needs of any industrial firm benefiting from the industrial
development project;
(f) The amount and kind of assistance, if any, available to an industrial firm
from other government agencies through tax exemption or abatement,
financing assistance through industrial development bonds, and
otherwise, with respect to the industrial development project;
(g) The amount of capital made available to the facility by lenders and by the
industrial firm; and
(h) The economic feasibility of the facility.
(11) For purposes of this section:
(a) "Industrial development project" includes the acquisition of any real estate
and the construction, acquisition, and installation thereon and with respect
thereto of improvements and facilities necessary and useful for the
improvement of the real estate for conveyance to or lease to industrial
firms to be used for manufacturing, processing, or assembling purposes,
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, communication, and other similar facilities;
off-site construction of utility extensions to the boundaries of the real
estate; construction and installation on the real estate of the industrial firm
of buildings, including buildings to be used for worker training and
education; rail facilities; roads; sidewalks; curbs; other improvements to
the real estate necessary to its manufacturing, processing, assembling, or
other approved use by industrial entities; workforce training; and job
development incentive grants;
(b) "Industrial firm" means any corporation, limited liability company, limited
liability partnership, partnership, person, or other legal entity, whether
domestic or foreign, which will itself or through its subsidiaries and
affiliates construct and develop a manufacturing, processing, assembling,
or other approved facility on the site of an industrial development project
financed pursuant to this section;
(c) "Job development incentive grant" means an award to a county of funds
from its account administered by the Department for Local Government
pursuant to KRS 42.4592(1)(a) and (b) for the use by the county to
encourage job development for those industrial development projects
located in that county which create at least twenty-five (25) new full-time
jobs held by Kentucky residents who receive a minimum wage of at least
one hundred thirty percent (130%) of the federal minimum wage. Each job
development incentive grant shall be limited to five thousand dollars
($5,000) for each job created which fulfills the requirements of this
subsection. The industrial firm receiving the job development incentive
grant shall pay its employees at the project site an average wage equal to
or greater than one hundred fifty percent (150%) of the federal minimum
wage and shall invest at least ten thousand dollars ($10,000) per new job
created. After a fiscal court has received authorization for the job
development grant by the Department for Local Government, the county,
the industrial firm, and the Department for Local Government shall enter
into an agreement committing the grant funds to be disbursed at such
time as the industrial firm certifies the authenticity of the following
information to be delivered to the county:
1.
The industrial firm has made at least the minimum investment
required;
2.
At least twenty-five (25) new full-time Kentucky jobs have been
created at the project site by the industrial firm;
3.
No employee at the project site is paid a salary by the industrial firm
which is less than one hundred thirty percent (130%) of the federal
minimum wage;
4.
The employees at the project site are paid an average wage by the
industrial firm at least equal to one hundred fifty percent (150%) of
the federal minimum wage;
5.
Each employee hired for the project by the industrial firm shall have
worked on a full-time basis at the minimum wages described in this
section at least twelve (12) full consecutive months at the site prior
to any grant funds disbursement; and
6.
No job created by the industrial firm after twenty-four (24) months
from the date of the first eligible hire at the project site shall be
considered for the grant.
If the county is satisfied the information provided is accurate and qualifies
the industrial firm for the job development incentive grant as described in
the agreement, it shall forward the certified information to the Department
for Local Government, which shall make the job development grant
disbursement upon sufficient evidence that all terms of the agreement
have been met; and
(d) "Regional industrial park" means an industrial development project
authorized for a grant award by the Kentucky Economic Development
Finance Authority for a minimum of three (3) counties eligible for grant
funds provided for in KRS 42.4592(1)(c), which coalition may include a
county as approved under subsection (5) of this section.
(12) Findings by the secretary of the Cabinet for Economic Development or the
commissioner of the Department for Local Government, provided for in
subsections (2)(b), (3), and (5) of this section, shall be made in writing to the
affected counties, the Governor, and the Legislative Research Commission.
(13) By October 1 of each odd-numbered year, the secretary of the Cabinet for
Economic Development and the commissioner of the Department for Local
Government shall each provide, in writing, to the Governor and the Legislative
Research Commission a listing of all applications for grants received pursuant
to this section subsequent to the last report, indicating which applications were
approved or disapproved, with the reason for disapproval when the decision
was to disapprove, and a listing of all grants awarded, with the amount of the
award, the recipient county, and the related industrial development project.
(14) (a)
(b)
(c)
(d)
Projects specifically authorized by appropriations made by the General
Assembly in an enacted budget bill, with the funding source identified as
funds allocated to individual counties under KRS 42.4592(1)(a) or (b),
shall be deemed approved and shall not be subject to the application
process established in this section.
Projects described in paragraph (a) of this subsection shall be subject to
a memorandum of agreement between the entity identified in the
appropriation and the Department for Local Government. The
memorandum of agreement shall address the legal requirements for the
disbursement and accounting of funds.
Within thirty (30) days of the receipt of a written request from an entity
designated in the appropriation for funding related to a project described
in paragraph (a) of this subsection, the Department for Local Government
shall prepare and send a memorandum of agreement to the designated
entity for review and signature. Upon receipt of the signed memorandum
of agreement from the designated entity, the Department for Local
Government shall release the funds for the project for use by the
designated entity.
Funds appropriated for specific projects as described in paragraph (a) of
this subsection shall not be expended for any other purpose, provided
that the commissioner of the Department for Local Government may,
upon written request by a designated entity identifying an extraordinary
circumstance or emergency situation, approve the reallocation of funds
appropriated for a specific project as described in paragraph (a) of this
subsection to the extent necessary to address the extraordinary
circumstance or emergency situation. Any approval under this paragraph
shall be made in writing, and shall be reported to the State Budget
Director and the Interim Joint Committee on Appropriations and Revenue
within thirty (30) days of the approval being made.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 117, sec. 25, effective July 15, 2010. -Amended 2008 Ky. Acts ch. 123, sec. 1, effective July 15, 2008. -- Amended
2007 Ky. Acts ch. 47, sec. 19, effective June 26, 2007. -- Amended 2006 Ky.
Acts ch. 210, sec. 2, effective July 12, 2006. -- Amended 2002 Ky. Acts ch. 338,
sec. 1, effective July 15, 2002. -- Amended 2001 Ky. Acts ch. 34, sec. 2,
effective June 21, 2001. -- Amended 2000 Ky. Acts ch. 300, sec. 1, effective
July 14, 2000. -- Amended 1998 Ky. Acts ch. 170, sec. 2, effective July 15,
1998. -- Amended 1996 Ky. Acts ch. 194, sec. 1, effective July 15, 1996. -Amended 1994 Ky. Acts ch. 18, sec. 2, effective July 15, 1994; and ch. 499,
sec. 6, effective July 15, 1994. -- Created 1992 Ky. Acts ch. 107, sec. 6,
effective July 1, 1992.
Legislative Research Commission Note (7/15/2008). 2008 Ky. Acts ch. 123,
sec. 2 provides that amendments made to this section by that Act "shall apply to
projects beginning with those authorized in the 2008-2010 biennial budget."
Legislative Research Commission Note (6/21/2001). A reference to "subsection
(9)" in subsection (3) of this statute has been changed in codification to
"subsection (10)" under KRS 7.136(1)(e) and (h). In 2000 Ky. Acts ch. 300,
sec. 1, the existing subsection (9) was renumbered as subsection (10), but an
internal reference to that subsection in the existing language of this statute was
overlooked.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, A, 13, (18) at 1094.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, A, 13, (19) at 1094.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, A, 13, (20) at 1094.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, A, 13, (21) at 1094.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, A, 13, (22) at 1095.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, A, 13, (23) at 1095.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, A, 13, (25) at 1095.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, A, 13, (28) at 1095.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, A, 13, (29) at 1095.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, A, 13, (30) at 1095.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, C, 1, (3) at 1107.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, E, 4, (1) at 1117.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, E, 7, (5) at 1119.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. I, M, 1, (1) at 1140.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. II, E, 3, 001, (1) at 1154.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. II, F, 1, 001, (2) at 1154.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. II, M, (1) at 1189.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. II, M, (2) at 1189.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. II, M, (4) at 1190.
2012-2014 Budget Reference. See State/Executive
ch. 144, Pt. V, A, 2 at 1243.
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
Branch Budget, 2012 Ky. Acts
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