AN ACT relating to community improvement districts.

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AN ACT relating to community improvement districts. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 107.310 is amended to read as follows: 3
As used in KRS 107.310[107.320] to 107.500, unless the context otherwise requires: 4
(1) ["District" means a county community improvement district established as provided 5
in KRS 107.310 to 107.500; 6
(2) ]"Board" means the board of commissioners which controls and manages the affairs 7
of the district; 8
(2)[(3) "Governmental unit" means a county or any city of any class, or any corporate 9
agency of any such county or city, or any independent district, authority or other 10
municipal corporation except a board of education, existing within the area of the 11
district; and 12
(4)] "Building and related facilities," or "building" or "facilities" means any real or 13
personal property, including but not limited to structures, sites, parks, forests, 14
wharves, floodwalls, boats and other improvements except sewers, drainage 15
facilities and other utilities unless related to one of the foregoing; 16
(3) "District" means a county community improvement district established as 17
provided in KRS 107.310 to 107.500; 18
(4) "Governmental unit" means a county or any city of any class, or any corporat e 19
agency of any such county or city, or any independent district, authority or other 20
municipal corporation except a board of education, existing within the area of the 21
district; 22
(5) "Green bond" means a fixed -income debt instrument earmarked to raise money 23
for climate or environmental projects: 24
(6) "Green infrastructure" 25
(a) Means a strategically planned network of natural and semi -natural areas 26
with other environmental features designed and managed to deliver a wide 27
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range of ecosystem services while also enhancing biodiversity; and 1
(b) May include water purification, water and stormwater management, 2
improving air quality, providing or enhancing recreational spaces, urban 3
heat control, and natural features that provide other benefits to persons and 4
the environment; and 5
(7) "Social impact bond" means a fixed -income debt instrument with the public 6
sector or local or state government where, by the terms of the contract, payment 7
will be made for specified social outcomes in the areas defined in the contract. 8
Section 2. KRS 107.330 is amended to read as follows: 9
The purpose of the district shall be to provide for the: 10
(1) Acquisition or construction, and the necessary equipping of, such buildings and 11
related facilities as may be needed, for any project which serves a county purpose, 12
by any governmental unit within the territorial limits of the district, or any 13
combination of any such units; 14
(2) Installation and maintenance of public infrastructure that includes streetscapes, 15
sidewalks, broadband, stormwater conveyance, green infrastructure and energy 16
conservation measures; 17
(3) Acquisition, rehabilitation, and development of housing that is affordable to 18
persons who make between sixty percent (60%) and one hundred twenty percent 19
(120%) of the area median income and affordable housing as defined by the 20
United States Department of Housing and Urban Development; 21
(4) Acquisition, maintenance, and operation of street lighting and video cameras 22
used for public safety; 23
(5) Initiation and operation of public health and safety programs such as programs, 24
including programs designed to engage community members in an effort to deter 25
crime and programs designed to promote healthy lifestyles; and 26
(6) Initiation and operation of economic developme nt tools that may include small 27
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business promotion, workforce training, and programs and strategies that bring 1
vacant properties back into productive use. 2
Section 3. KRS 107.340 is amended to read as follows: 3
(1) A district shall be administered by a board of commissioners [(the "board")], which 4
shall control and manage the affairs of the district. The term of each commissioner 5
shall be four (4) years except as herein specified. The board shall consist of four (4) 6
members who shall be appointed by the county judge/executive with the approval 7
of the fiscal court. Initial appointments shall be for terms of one (1), two (2), three 8
(3) and four (4) years as designated by the county judge/executive. Thereafter, as 9
the term of each member expires, his successor shall be appointed for a term of four 10
(4) years. Not more than three-fourths (3/4) of the persons appointed to membership 11
on the board shall be members of the same political party, as determined, in the 12
case of each person , by such person's registration record at the time of his or her 13
appointment. In addition, the county judge/executive shall ensure that the 14
composition of the board members includes a diverse balance of property owners, 15
residents, tenants, small business o wners, and other persons who could be 16
affected by the operations of the district so that no particular interest has an 17
overwhelming control of the district. 18
(2) The board shall elect its chairman from among its members and may appoint a 19
secretary, an executive director, and other officials and employees who need not be 20
members of the board. Members of the board shall not receive compensation for 21
their services, but shall be reimbursed for their actual expenses necessarily incurred 22
in the performance of thei r duties. A quorum for the transacting of the business of 23
the board shall consist of three (3) members. 24
(3) A member of the board may be removed from office as provided by KRS 65.007. 25
Section 4. KRS 107.350 is amended to read as follows: 26
In order to accomplish its purposes the district, through its board, may request the fiscal 27
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court of the county in which it is located to levy an ad valorem tax on all property within 1
the district which is assessed for local taxation at a rate which shall not exceed ten [ (10)] 2
cents ($0.10) per $100 of assessed value of said property and which shall not exceed the 3
amount necessary to amortize any bonds,[ (] whether revenue bonds, green bonds, social 4
impact bonds, or general obligation bond s,[)] issued or proposed to be issued to finance 5
the project or projects proposed by the district, plus operating expenses of the district. All 6
ad valorem taxes authorized by KRS 107.310 to 107.500 shall be collected in the same 7
manner as are county ad val orem taxes and shall be turned over to the board as the 8
governing body of the district. Such ad valorem taxes shall be solely for the benefit and 9
purposes of the district and shall be in addition to all other ad valorem taxes. Said fiscal 10
court shall levy the ad valorem tax so requested initially and from year to year thereafter 11
if required to amortize any bonds , [(]whether revenue bonds, green bonds, social impact 12
bonds, or general obligation bonds [)] issued or proposed for a project not disapproved 13
under the authority of KRS 107.310 to 107.500, but it shall refuse to levy any tax if no 14
bonds, [(]whether revenue bonds, green bonds, social impact bonds, or general 15
obligation bonds,[)] are issued or outs tanding, and if the proposed project to be financed 16
by the bonds has been disapproved as set out in KRS 107.360. 17
SECTION 5. A NEW SECTION OF KRS 107.310 TO 107.500 IS CREATED 18
TO READ AS FOLLOWS: 19
In addition to the ad val orem tax allowed under Section 4 of this Act, a community 20
improvement district may request a city or a county to use special assessments imposed 21
under KRS 91A.200 to 91A.290 to support the projects of the community improvement 22
district. Any county so reque sted shall have the authority to levy a special assessment 23
using the terms and conditions established for cities under KRS 91A.200 to 91A.290. 24
SECTION 6. A NEW SECTION OF KRS 107.310 TO 107.500 IS CREATED 25
TO READ AS FOLLOWS: 26
Community improvement districts may receive moneys from private partners as defined 27
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in KRS 65.025, to achieve the purposes of the district by contract. 1
Section 7. KRS 107.380 is amended to read as follows: 2
(1) The board shall annually file a written report concerning its operations with the 3
county judge/executive and the Department for Local Government, which shall 4
make this information available on its official website. In addition to general 5
information concerning its operations, the board shall include performance 6
information regarding: 7
(a) Property values of properties within the district or adjacent to the district 8
that are affected by the district's operations; 9
(b) Employment, including job creation data; 10
(c) Housing, including the number of housing units available in the district 11
and the residents housed in the district by socioeconomic terms; and 12
(d) Equity outcomes of the projects conducted by the distric t relating to the 13
socioeconomic status of persons within the district. 14
(2) The board shall comply with the provisions of KRS 65A.010 to 65A.090. 15
Section 8. KRS 65.7043 is amended to read as follows: 16
The purposes of KRS 65.7041 to 65.7083 are as follows: 17
(1) KRS 65.7047 provides authority for cities and counties to establish local 18
development areas for the development of previously undeveloped land within their 19
jurisdictional boundaries and to devote local resources to sup port the development 20
of projects in those local development areas. Local development areas established 21
under KRS 65.7047 and projects within local development areas shall not be 22
eligible for participation by the Commonwealth; and 23
(2) (a) KRS 65.7049, 65.70 51, and 65.7053 provide a framework for cities and 24
counties: 25
1. To establish development areas for: 26
a. The redevelopment of previously developed land within their 27
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jurisdictional boundaries , including projects initiated under 1
Section 2 of this Act by a community improvement district; and 2
b. The development of previously undeveloped land, if: 3
i. The project proposed for the development area includes an 4
arena as part of the proposed development; 5
ii. The project is a mixed -use development located in a 6
university research park; 7
iii. The project is a mixed -use development located within three 8
(3) miles of a military base that houses, deploys, or employs 9
any combination of at least twenty -five thousand (25,000) 10
military personnel, their families, military retirees, or civilian 11
employees; 12
iv. The project is a mixed -use development which includes 13
either or both significant public storm water and sanitary 14
sewer facilities designed to comply with a community -wide 15
court decree mandating corrective action by the local 16
government or an agency thereof;[ or] 17
v. The project is a mixed -use development that includes a tract 18
of previously undeveloped land that was owned by a liberal 19
arts educational institution within four (4) years prior to 20
April 10, 2017, and the previously un developed land is 21
bounded on one (1) side by a four (4) lane United States 22
highway on April 10, 2017. No more than fifty percent 23
(50%) of the previously undeveloped land shall be used for 24
qualified mixed uses; or 25
vi. The project is initiated under Section 2 of this Act by a 26
community improvement district; and 27
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2. To devote local resources to providing redevelopment assistance and 1
supporting projects in those development areas. 2
(b) Projects within development areas established pursuant to KRS 65.7049, 3
65.7051, and 65.7053 shall be eligible for participation by the Commonwealth 4
if such projects meet the requirements for Commonwealth participation 5
established by Subchapter 30 of KRS Chapter 154. 6
Section 9. KRS 65.7045 is amended to read as follows: 7
As used in KRS 65.7041 to 65.7083: 8
(1) "Activation date" means the date established any time within a two (2) year period 9
after the commencement date. The activation date is the date on which the time 10
period for the pledge of incremental revenues shall commence. The governing body 11
may extend th e two (2) year period to no more than four (4) years upon written 12
application by the agency requesting the extension. To implement the activation 13
date, the agency that is a party to the local participation agreement or the local 14
development area agreement shall notify the governing body that created the 15
development area or local development area; 16
(2) "Agency" means: 17
(a) An urban renewal and community development agency established under 18
KRS Chapter 99; 19
(b) A development authority established under KRS Chapter 99; 20
(c) A nonprofit corporation; 21
(d) A housing authority established under KRS Chapter 80; 22
(e) An air board established under KRS 183.132 to 183.160; 23
(f) A local industrial development authority established under KRS 154.50 -301 24
to 154.50-346; 25
(g) A riverport authority established under KRS 65.510 to 65.650; 26
(h) A transportation improvement district established under KRS 184.350 to 27
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184.395;[ or] 1
(i) A community improvement district established under KRS 107.310 to 2
107.500; or 3
(j) A designated department, division, or office of a city or county; 4
(3) "Arena" means a facility which serves primarily as a venue for athletic events, live 5
entertainment, and other performances, and which has a permanent seating capacity 6
of at least five thousand (5,000); 7
(4) "Authority" means the Kentucky Economic Development Finance Authority 8
established by KRS 154.20-010; 9
(5) "Brownfield site" means real property, the expansion, redevelopment, or reuse of 10
which may be complicated by the presence or potential presence of a hazardo us 11
substance, pollutant, or contaminant; 12
(6) "Capital investment" means: 13
(a) Obligations incurred for labor and to contractors, subcontractors, builders, and 14
materialmen in connection with the acquisition, construction, installation, 15
equipping, and rehabilitation of a project; 16
(b) The cost of acquiring land or rights in land within the development area on the 17
footprint of the project, and any cost incident thereto, including recording 18
fees; 19
(c) The cost of contract bonds and of insurance of all kinds that m ay be required 20
or necessary during the course of acquisition, construction, installation, 21
equipping, and rehabilitation of a project which is not paid by the contractor 22
or contractors or otherwise provided; 23
(d) All costs of architectural and engineering se rvices, including test borings, 24
surveys, estimates, plans, specifications, preliminary investigations, 25
supervision of construction, and the performance of all the duties required by 26
or consequent upon the acquisition, construction, installation, equipping, and 27
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rehabilitation of a project; 1
(e) All costs that are required to be paid under the terms of any contract for the 2
acquisition, construction, installation, equipping, and rehabilitation of a 3
project; and 4
(f) All other costs of a nature comparable to those described in this subsection; 5
(7) "City" means any city, consolidated local government, or urban -county 6
government; 7
(8) "Commencement date" means: 8
(a) The date on which a local development area agreement is executed; or 9
(b) The date on which a local participation agreement is executed; 10
(9) "Commonwealth" means the Commonwealth of Kentucky; 11
(10) "County" means any county, consolidated local government, charter county, unified 12
local government, or urban-county government; 13
(11) "Debt charges" means the principal, including any mandatory sinking fund deposits, 14
interest, and any redemption premium, payable on increment bonds as the payments 15
come due and are payable and any charges related to the payment of the foregoing; 16
(12) "Development area" means an area established under KRS 65.7049, 65.7051, and 17
65.7053; 18
(13) "Economic development projects" means projects which are approved for tax 19
credits under Subchapter 20, 22, 23, 24, 25, 26, 27, 28, 34, or 48 of KRS Chapter 20
154; 21
(14) "Establishment date" means the date on which a development area or a local 22
development area is created. If the development area, local development area, 23
development area plan, or local development area plan is modified or amended 24
subsequent to the original est ablishment date, the modifications or amendments 25
shall not extend the existence of the development area or local development area 26
beyond what would be permitted under KRS 65.7041 to 65.7083 from the original 27
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establishment date; 1
(15) "Governing body" means the body possessing legislative authority in a city or 2
county; 3
(16) "Increment bonds" means bonds and notes issued for the purpose of paying the 4
costs of one (1) or more projects, or grant or loan programs as described in 5
subsection (30)(c) of this section , in a development area or a local development 6
area; 7
(17) "Incremental revenues" means the amount of revenues received by a taxing district, 8
as determined by subtracting old revenues from new revenues in a calendar year 9
with respect to a development area, a project within a development area, or a local 10
development area; 11
(18) "Issuer" means a city, county, or agency issuing increment bonds; 12
(19) "Local development area" means a development area established under KRS 13
65.7047; 14
(20) "Local development area agre ement" means an agreement entered into under KRS 15
65.7047; 16
(21) "Local participation agreement" means the agreement entered into under KRS 17
65.7063; 18
(22) "Local tax revenues" means: 19
(a) Revenues derived by a city or county from one (1) or more of the followi ng 20
sources: 21
1. Real property ad valorem taxes; 22
2. Occupational license taxes, excluding occupational license taxes that 23
have already been pledged to support an economic development project 24
within the development area; and 25
3. The occupational license fee permitted by KRS 65.7056; and 26
(b) Revenues derived by any taxing district other than school districts or fire 27
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districts from real property ad valorem taxes; 1
(23) "Low-income household" means a household in which gross income is no more 2
than two hundred perce nt (200%) of the poverty guidelines updated periodically in 3
the Federal Register by the United States Department of Health and Human 4
Services under the authority of 42 U.S.C. sec. 9902(2); 5
(24) "Mixed-use" has the same meaning as in KRS 154.30-060; 6
(25) "New revenues" means the amount of local tax revenues received by a taxing 7
district with respect to a development area or a local development area in any 8
calendar year beginning with the year in which the activation date occurred; 9
(26) "Old revenues" means the amount of local tax revenues received by a taxing district 10
with respect to a development area or a local development area during the last 11
calendar year prior to the commencement date. If the governing body determines 12
that the amount of local tax revenue s received during the last calendar year prior to 13
the commencement date does not represent a true and accurate depiction of 14
revenues, the governing body may consider revenues for a period of no longer than 15
three (3) calendar years prior to the commencement date, so as to determine a fair 16
representation of local tax revenues; 17
(27) "Outstanding" means increment bonds that have been issued, delivered, and paid 18
for by the purchaser, except any of the following: 19
(a) Increment bonds canceled upon surrender, excha nge, or transfer, or upon 20
payment or redemption; 21
(b) Increment bonds in replacement of which or in exchange for which other 22
increment bonds have been issued; or 23
(c) Increment bonds for the payment, redemption, or purchase for cancellation 24
prior to maturity , of which sufficient moneys or investments, in accordance 25
with the ordinance or other proceedings or any applicable law, by mandatory 26
sinking fund redemption requirements, or otherwise, have been deposited, and 27
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credited in a sinking fund or with a trustee or paying or escrow agent, whether 1
at or prior to their maturity or redemption, and, in the case of increment bonds 2
to be redeemed prior to their stated maturity, notice of redemption has been 3
given or satisfactory arrangements have been made for giving n otice of that 4
redemption, or waiver of that notice by or on behalf of the affected bond 5
holders has been filed with the issuer or its agent; 6
(28) "Planning unit" means a planning commission established pursuant to KRS Chapter 7
100; 8
(29) "Project" means any property, asset, or improvement located in a development area 9
or a local development area and certified by the governing body as: 10
(a) Being for a public purpose; and 11
(b) Being for the development of facilities for residential, commercial, industrial, 12
public, recreational, or other uses, or for open space, including the 13
development, rehabilitation, renovation, installation, improvement, 14
enlargement, or extension of real estate and buildings; and 15
(c) Contributing to economic development or tourism; 16
(30) "Redevelopment assistance," as utilized within a development area, includes the 17
following: 18
(a) Technical assistance programs to provide information and guidance to 19
existing, new, and potential businesses and residences; 20
(b) Programs to market and promote the development area and attract new 21
businesses and residents; 22
(c) Grant and loan programs to encourage the construction or rehabilitation of 23
residential, commercial, and indus trial buildings; improve the appearance of 24
building facades and signage; and stimulate business start -ups and 25
expansions; 26
(d) Programs to obtain a reduced interest rate, down payment, or other improved 27
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terms for loans made by private, for -profit, or nonpro fit lenders to encourage 1
the construction or rehabilitation of residential, commercial, and industrial 2
buildings; improve the appearance of building facades and signage; and 3
stimulate business start-ups and expansions; 4
(e) Local capital improvements, inclu ding but not limited to the installation, 5
construction, or reconstruction of streets, lighting, pedestrian amenities, public 6
utilities, public transportation facilities, public parking, parks, playgrounds, 7
recreational facilities, and public buildings and facilities; 8
(f) Improved or increased provision of public services, including but not limited 9
to police or security patrols, solid waste management, and street cleaning; 10
(g) Provision of technical, financial, or other assistance in connection with: 11
1. Applications to the Energy and Environment Cabinet for a brownfields 12
assessment or a No Further Remediation Letter issued pursuant to KRS 13
224.1-450; or 14
2. Site remediation by means of the Voluntary Environmental Remediation 15
Program to remove environmental cont amination in the development 16
area, or lots or parcels within it, pursuant to KRS 224.1 -510 to 224.1 -17
532;[ and] 18
(h) Direct development by a city, county, or agency of real property acquired by 19
the city, county, or agency. Direct development may include one (1) or more 20
of the following: 21
1. Assembly and replatting of lots or parcels; 22
2. Rehabilitation of existing structures and improvements; 23
3. Demolition of structures and improvements and construction of new 24
structures and improvements; 25
4. Programs of tempora ry or permanent relocation assistance for 26
businesses and residents; 27
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5. The sale, lease, donation, or other permanent or temporary transfer of 1
real property to public agencies, persons, and entities both for profit and 2
nonprofit; and 3
6. The acquisition and construction of projects; and 4
(i) Projects undertaken by a community improvement district under Section 2 5
of this Act; 6
(31) "Service payment agreement" means an agreement between a city, county, or issuer 7
of increment bonds or other obligations and any per son, whereby the person agrees 8
to guarantee the receipt of incremental revenues, or the payment of debt charges, or 9
any portion thereof, on increment bonds or other obligations issued by the city, 10
county, or issuer; 11
(32) "Special fund" means a special fund created under KRS 65.7061 in which all 12
incremental revenues shall be deposited; 13
(33) "Taxing district" means any city, county, or special taxing district other than school 14
districts and fire districts; 15
(34) "Tax incentive agreement" means an agreement ent ered into under KRS 154.30 -16
070; 17
(35) "Termination date" means: 18
(a) For a development area, a date established by the ordinance creating the 19
development area that is no more than twenty (20) years from the 20
establishment date. If a tax incentive agreement fo r a project within a 21
development area or a local participation agreement relating to the 22
development area has a termination date that is later than the termination date 23
established in the ordinance, the termination date for the development area 24
shall be ex tended to the termination date of the tax incentive agreement, or 25
local participation agreement. However, the termination date for the 26
development area shall in no event be more than forty (40) years from the 27
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establishment date; 1
(b) For a local development area, a date established by the ordinance creating the 2
local development area that is no more than twenty (20) years from the 3
establishment date, provided that if a local development area agreement 4
relating to the local development area has a termination date that is later than 5
the termination date established in the ordinance, the termination date for the 6
local development area shall be extended to the termination date of the local 7
development area agreement; 8
(c) For a local partici pation agreement, a date that is no more than twenty (20) 9
years from the activation date. However, the termination date for a local 10
participation agreement shall in no event be more than forty (40) years from 11
the establishment date of the development area to which the local 12
participation agreement relates; and 13
(d) For a local development area agreement, a date that is no more than twenty 14
(20) years from the activation date. However, the termination date for a local 15
development area agreement shall in no eve nt be more than forty (40) years 16
from the establishment date of the local development area to which the 17
development area agreement relates; and 18
(36) "University research park" means land owned by a public university that has been 19
designated by the public u niversity as being primarily for the development of 20
projects and facilities to support high -tech, pharmaceutical, laboratory, and other 21
research-based businesses, including projects and facilities to support and 22
complement the development of high -tech, pha rmaceutical, laboratory, and other 23
research-based businesses. 24
Section 10. KRS 65.7049 is amended to read as follows: 25
Any city or county may establish a development area pursuant to this section, KRS 26
65.7051, and 65.7053 to encourage investment and reinvestment in and development, 27
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use, and reuse of areas of the city or county under the following conditions: 1
(1) The area shall be contiguous and shall be no more than three (3) square miles; 2
(2) The establishment or expansion of the development area shall not cause the 3
assessed value of taxable real property within all development areas and local 4
development areas of the city or county establishing the development area to exceed 5
twenty percent (20%) of the assessed value of all taxable real property within its 6
jurisdiction. For the purpose of determining whether the twenty percent (20%) 7
threshold has been met, the assessed val ue of taxable real property within all of the 8
development areas and local development areas shall be valued as of the 9
establishment date; 10
(3) The governing body of the city or county shall determine that the development area 11
either: 12
(a) Has two (2) or more of the following conditions: 13
1. Substantial loss of residential, commercial, or industrial activity or use; 14
2. Forty percent (40%) or more of the households are low -income 15
households; 16
3. More than fifty percent (50%) of residential, commercial, or industr ial 17
structures are deteriorating or deteriorated; 18
4. Substantial abandonment of residential, commercial, or industrial 19
structures; 20
5. Substantial presence of environmentally contaminated land; 21
6. Inadequate public improvements or substantial deterioration in public 22
infrastructure; or 23
7. Any combination of factors that substantially impairs or arrests the 24
growth and economic development of the city or county; impedes the 25
provision of adequate housing; impedes the development of commercial 26
or industrial prope rty; or adversely affects public health, safety, or 27
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general welfare due to the development area's present condition and 1
use;[ or] 2
(b) The project meets the requirements of KRS 65.7043(2)(a)1.b.; or 3
(c) The project is one initiated under Section 2 of this A ct by a community 4
improvement district; and 5
(4) The governing body of the city or county shall find that all of the following are true 6
for projects meeting the requirements of paragraph (a) of subsection (3) of this 7
section: 8
(a) That the development area is not reasonably expected to be developed without 9
public assistance. This finding shall be supported by specific reasons and 10
supporting facts, including a clear demonstration of the financial need for 11
public assistance; and 12
(b) That the public benefits of the development area justify the public costs 13
proposed. This finding shall be supported by specific data and figures 14
demonstrating that the projected benefits outweigh the anticipated costs and 15
shall take into account the positive and negative effects of i nvestment in the 16
development on existing businesses and residents within the community as a 17
whole; and 18
(c) 1. That the area immediately surrounding the development area has not 19
been subject to growth and development through investment by private 20
enterprise; or 21
2. If the area immediately surrounding the development area has been 22
subject to growth and development through investment by private 23
enterprise, the identification of special circumstances within the 24
development area that would prevent its development without public 25
assistance. 26
SECTION 11. A NEW SECTION OF KRS 107.310 TO 107.500 IS CREATED 27
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TO READ AS FOLLOWS: 1
(1) A Community Improvement District Grant Program is hereby established to 2
consist of a system of grants to community improvement districts established 3
under this chapter. Grants shall be administered by the Department for Local 4
Government. 5
(2) Grants obtaine d under this program shall be used for projects undertaken by 6
community improvement districts as authorized pursuant to Section 2 of this Act. 7
(3) Applications for grants from the fund established for in Section 12 of this Act 8
shall be made by the communit y improvement district with any approvals 9
necessary to guarantee the viability of the project made by the legislative body or 10
bodies wherein the project is located. The applications shall contain any 11
additional information required by the Department for Lo cal Government 12
deemed necessary by the department to carry out the provisions of this section. 13
(4) The Department for Local Government shall review and approve grant 14
applications and shall award funds to projects approved until available moneys in 15
the fund set out in Section 12 of this Act are depleted each fiscal year. The 16
Department for Local Government shall award grants in proportion to the 17
community needs and in a manner that includes as many types of projects set 18
forth in Section 2 of this Act as poss ible based on the applications submitted by 19
the community improvement district and the available moneys in the fund. 20
(5) By October 1 of each year, the commissioner of the Department for Local 21
Government shall provide, in writing, to the Governor and the L egislative 22
Research Commission a listing of all applications for grants received pursuant to 23
this section since the last report, a listing of all grants awarded, the amount of the 24
award, the recipient agency, and the related project. 25
(6) The Department for Local Government shall require that any funds granted 26
under this section include an agreement that the recipient shall certify that the 27
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funds were expended for the purpose intended. The department shall determine 1
whether the certification requires an inde pendent annual audit or an internal 2
certification taking into account the size of district and the financial burden an 3
independent annual audit may impose on the district. In the case of an 4
independent annual audit, the audit report shall include a certifi cation that the 5
funds were expended for the purpose intended. A copy of the audit or certification 6
of compliance shall be forwarded to the Department for Local Government within 7
eighteen (18) months of the end of the fiscal year. 8
SECTION 12. A NEW SECTION OF KRS 107.310 TO 107.500 IS CREATED 9
TO READ AS FOLLOWS: 10
(1) There is hereby established in the State Treasury a trust and agency account to be 11
known as the Community Improvement District Grant Program fund. The fund 12
shall consist of moneys received from state appropriations, gifts, grants, and 13
federal funds. 14
(2) The fund shall be administered by the Department for Local Government. 15
(3) Amounts deposited in the fund shall be used for the purposes set out in Section 11 16
of this Act and for no other purpose. 17
(4) Notwithstanding KRS 45.229, fund amounts not expended at the close of a fiscal 18
year shall not lapse but shall be carried forward into the next fiscal year. 19
SECTION 13. A NEW SECTION OF KRS 107.310 TO 107.500 IS CREATED 20
TO READ AS FOLLOWS: 21
(1) Any project undertaken by a community improvement district after the effective 22
date of this Act shall either be complete or shall cease operations ten (10) years 23
after the date the project comme nces unless the project is authorized to continue 24
by a majority of persons owning property within the boundaries of the district. 25
(2) In order to conduct a vote to determine whether or not a project may continue, 26
the community improvement district shall co nsult with the county clerk and the 27
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property valuation administrator to determine properties and owners within the 1
boundaries of the district, in accordance with the following: 2
(a) The board of the community improvement district shall advertise, pursuant 3
to KRS Chapter 424, that a vote will be conducted to seek reapproval of a 4
project it has undertaken. The advertisement shall at least contain a general 5
description of the boundaries of the community improvement district, the 6
opening and closing vote of the date, where and how property owners can 7
vote, and a description of the project in question; 8
(b) The board of the community improvement district shall conduct the vote by 9
mail, in-person voting, electronic voting, or by any other means the board 10
may choose; 11
(c) Any means chosen by the board shall ensure that only one (1) vote per 12
property shall be counted, and that the property owner voting is in fact the 13
owner of the property, or is otherwise authorized to vote on behalf of the 14
property; 15
(d) The time allowe d for receiving votes of property owners shall not exceed 16
ninety (90) days from the time that voting is opened; 17
(e) The question put before the property owners shall specifically identify the 18
project the community improvement district seeks to continue, an d shall be 19
framed in a simple and concise manner so that the property owner may vote 20
"yes" to continue the project or "no" to cease the operations relating to the 21
project; 22
(f) The board shall ensure proper chain of custody and security for the votes; 23
and 24
(g) In any manner of collecting the votes, the board shall ensure the 25
confidentiality of any property owner's vote is maintained and the 26
knowledge of the vote made by the property owner is limited only to staff 27
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tallying the vote. 1
(3) The timing of the vote shall be such that it is possible to cease any tax collections 2
or revenue generating means beyond the calendar year of the end of the tenth 3
year prior to the question of whether or not to continue the project. 4
(4) If a majority of property owners vote to continue the project, the project may 5
continue for another ten (10) years. If less than a majority of the property owners 6
vote to continue the project, the board of the community improvement district 7
shall take all necessary steps to ensure the cessation o f the project's operations as 8
soon as practicable after the end of the tenth year. 9