AN ACT relating to economic development.

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AN ACT relating to economic development. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 154.12-100 is amended to read as follows: 3
(1) "Economic development fund" means the fund authorized by the General Assembly 4
for the purpose of promoting economic development within the state. 5
(2) The economic development fund shall be funded throug h the issuance of bonds by 6
the State Property and Buildings Commission or other appropriation by the General 7
Assembly. 8
(3) The economic development fund shall be administered by the secretary of the 9
Cabinet for Economic Development. The authority shall pro mulgate administrative 10
regulations in accordance with KRS Chapter 13A for project selection criteria and 11
administration of the economic development fund. The project selection criteria 12
shall include but not be limited to the following: 13
(a) Potential job creation or job retention; 14
(b) Degree of public or private and local involvement; 15
(c) Degree and conditions of project payback; and 16
(d) Amount of investment. 17
(4) Prior to submission of an economic development fund project to the authority, the 18
secretary of the Cabinet for Economic Development shall receive a written 19
commitment from the public or private organization which has requested funds 20
outlining projected job creation and retention, an investment breakdown, and 21
overall project description. This shall be submitted by the secretary to the authority. 22
Subsequently, the secretary of the Cabinet for Economic Development shall execute 23
a written agreement with the pub lic or private organizations involved expressing in 24
detail the respective obligations on the parties. 25
(5) Projects of state agencies as defined in KRS 42.005 shall not be eligible for funding 26
from the economic development fund program, unless expressly pro vided in a 27
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branch budget bill. Airport construction and renovation projects shall be eligible for 1
funding under this section. The secretary of the Cabinet for Economic Development 2
shall consult with the secretary of the Finance and Administration Cabinet o n the 3
terms and conditions relating to the use of funds pursuant to this section before any 4
commitment is made on any project to any public or private organization. 5
(6) Following the approval by the authority, the project shall be presented by the 6
secretary of the Cabinet for Economic Development or his or her designee with 7
supporting documentation for review and approval at the next regularly scheduled 8
meeting of: 9
(a) The Capital Projects and Bond Oversight Committee pursuant to KRS 45.810; 10
and 11
(b) [at the next regularly scheduled meeting of ] The State Property and Buildings 12
Commission pursuant to KRS 56.450. 13
(7) Notwithstanding the provisions of KRS 56.872(3), the amount of economic 14
development funds issued during any biennium shall not exceed the balance of the 15
fund, and any funds authorized in the biennial budget shall carry forward and shall 16
not lapse. 17
(8) By November 1 of each year, the Cabinet for Economic Development shall prepare 18
and post an annual report to the cabinet's Web site as required in KRS 154.12-2035, 19
showing the economic development funds issued during the previous fiscal year, 20
funds disbursed, the amounts paid back, and the balance still owing with respect to 21
grants or loans made by the Cabinet for Economic Development with proceeds of 22
economic development funds during the previous five (5) fiscal years. 23