FINANCE AND ADMINISTRATION CABINET

KRS tit. VI, ch. 42

in effect

KRS 42.001 Definition of writing

42.001. Definition of writing As used in this chapter, "writing" or "written" means letters, words, or numbers, or their equivalent, set down by handwriting, typewriting, printing, photostating, photographing, magnetic impulse, mechanical or electronic recording, or other form of data compilation. Effective: July 15, 1998 History: Created 1998 Ky. Acts ch. 120, sec. 2, effective July 15, 1998.

KRS 42.005 Definitions for KRS 42.010

42.005. Definitions for KRS 42.010 As used in KRS 42.010, unless the context requires otherwise: (1) "Department" means a basic unit of administrative organization of the Finance and Administration Cabinet designated by statute or by statutorily authorized executive action as a "department." A department may contain offices, divisions, or both, that report to it; (2) "Office" means a basic unit of administrative organization of the Finance and Administration Cabinet. An office may or may not report directly to the secretary of the Finance and Administration Cabinet. An office may contain offices, divisions, or both, that report to it; (3) "Division" means a major branch of a department or office established by statute or by statutorily authorized administrative action; (4) "Administrative body" includes authority, board, bureau, interstate compact, commission, committee, conference, council, and any other form or organization in the executive branch of government, but does not include "office," "department," "program cabinet" or "division"; (5) "Program cabinet" means a group of departments, or departments and commissions, or departments and offices, or other administrative bodies, designated by statute or statutorily authorized executive action as a "program cabinet." Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 48, effective June 20, 2005. -- Created 1982 Ky. Acts ch. 447, sec. 8, effective January 1, 1984.

KRS 42.010 Definition of state agency

42.010. Definition of state agency As used in KRS 42.0171, 42.0172, and 42.425, unless the context requires otherwise, "state agency" means any state administrative body, department or division as defined by KRS 42.005. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 49, effective June 20, 2005. -- Amended 1984 Ky. Acts ch. 111, sec. 32, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 447, sec. 9, effective January 1, 1984. -- Amended 1980 Ky. Acts ch. 188, sec. 15, effective July 15, 1980. -- Amended 1966 Ky. Acts ch. 255, sec. 48. -- Amended 1962 Ky. Acts ch. 210, sec. 5. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4618-69.

KRS 42.012 Secretary as state's chief financial officer

42.012. Secretary as state's chief financial officer The secretary of the Finance and Administration Cabinet shall be the chief financial officer of the state and the adviser of the Governor and the General Assembly in financial matters, and shall at all times protect the financial interests of the state. Effective: July 14, 1992 History: Amended 1992 Ky. Acts ch. 13, sec. 4, July 14, 1992. -- Amended 1982 Ky. Acts ch. 393, sec. 15, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 155, sec. 42, effective June 17, 1978. -- Created 1974 Ky. Acts ch. 74, Art. II, sec. 2.

KRS 42.014 Organization of cabinet

42.014. Organization of cabinet (1) There is established within the cabinet the: (a) Office of the Secretary; (b) Commonwealth Office of Technology and the Office of the Controller, each of which shall be headed by an executive director appointed by the secretary with the approval of the Governor; (c) Kentucky Communications Network Authority established in KRS 154.15- 020 and headed by the executive director of the Commonwealth Office of Technology; (d) Board of the Kentucky Communications Network Authority established in KRS 154.15-030; and (e) Department of Revenue and the Department for Facilities and Support Services, each of which shall be headed by a commissioner appointed by the secretary, upon the approval of the Governor, and responsible to the secretary. Each of these departments may have at least one (1) major assistant not in the classified service. (2) The secretary shall establish the internal organization and assignment of functions which are not established by statute, and shall divide the cabinet into the offices, bureaus, divisions, or other units the secretary deems necessary to perform the functions, powers, and duties of the cabinet, subject to the provisions of KRS Chapter 12. (3) All appointments under this chapter to positions not in the classified service shall be made pursuant to KRS 12.050, and such appointees shall be major assistants to the secretary and shall assist in the development of policy. Effective: March 10, 2026 History: Amended 2026 Ky. Acts ch. 2, sec. 4, effective March 10, 2026. -- Amended 2005 Ky. Acts ch. 85, sec. 5, effective June 20, 2005; and ch. 95, sec. 10, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 12, sec. 2, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 46, sec. 4, effective July 14, 2000; ch. 506, sec. 13, effective July 14, 2000; and ch. 536, sec. 13, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 68, sec. 2, effective July 15, 1998; and ch. 83, sec. 2, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 176, sec. 1, effective July 15, 1994; ch. 216, sec. 2, effective July 15, 1994; and ch. 508, sec. 8, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 321, sec. 2, effective July 13, 1990; and ch. 378, sec. 1, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 273, sec. 3, effective July 15, 1988. -- Amended 1984 Ky. Acts ch. 186, sec. 2, effective July 13, 1984; and ch. 340, sec. 2, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 183, sec. 3, effective July 15, 1982; and ch. 393, sec. 19, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 155, sec. 44, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 299, sec. 7. -- Created 1974 Ky. Acts ch. 74, Art. II, sec. 4.

KRS 42.016 Corporate bodies and instrumentalities attached to Office of Secretary

42.016. Corporate bodies and instrumentalities attached to Office of Secretary The following corporate bodies and instrumentalities of the Commonwealth shall be attached to the Office of the Secretary for administrative purposes and staff services: (1) State Property and Buildings Commission; (2) Kentucky Turnpike Authority; (3) State Investment Commission; (4) Kentucky Housing Corporation; (5) Kentucky River Authority; and (6) Executive Branch Ethics Commission. Effective:March 12, 2021 History: Amended 2021 Ky. Acts ch. 12, sec. 5, effective March 12, 2021. -- Amended 2009 Ky. Acts ch. 12, sec. 20, effective June 25, 2009. -- Amended 2007 Ky. Acts ch. 47, sec. 13, effective June 26, 2007. -- Amended 2006 Ky. Acts ch. 152, sec. 13, effective July 12, 2006. -- Amended 2005 Ky. Acts ch. 85, sec. 50, effective June 20, 2005. -- Amended 2001 Ky. Acts ch. 27, sec. 8, effective June 21, 2001. -- Amended 2000 Ky. Acts ch. 221, sec. 3, effective July 14, 2000; ch. 265, sec. 1, effective July 14, 2000; and ch. 287, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 83, sec. 3, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 208, sec. 3, effective July 15, 1994. -- Amended 1988 Ky. Acts ch. 154, sec. 3, effective July 15, 1988. -- Amended 1984 Ky. Acts ch. 339, sec. 1, effective July 13, 1984; ch. 346, sec. 1, effective July 13, 1984; and ch. 406, sec. 1, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 184, sec. 6, effective July 15, 1982; ch. 382, sec. 29, effective July 15, 1982; and ch. 393, sec. 20, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 295, sec. 13, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 155, sec. 45, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 299, sec. 8. -- Created 1974 Ky. Acts ch. 74, Art. II, sec. 6.

KRS 42.017 Office of General Counsel

42.017. Office of General Counsel (1) The Office of General Counsel established within the Office of the Secretary by KRS 42.0145 shall be responsible for the coordination and provision of legal services for the cabinet and for other functions and duties as the secretary may assign relating to the performance of the cabinet's legal services. (2) The Office of General Counsel shall be headed by an executive director who shall function as the general counsel. The executive director shall be appointed in accordance with KRS 12.210 and shall report to the secretary. The Attorney General, on request of the secretary, may designate attorneys in the Office of General Counsel as assistant attorneys general as provided in KRS 15.105. (3) The Office of General Counsel shall consist of two (2) offices, each of which shall provide legal services for its respective offices and departments, as follows: (a) Office of Legal Services for Finance and Technology, headed by an executive director and composed of organizational entities deemed appropriate by the secretary of the Finance and Administration Cabinet; and (b) Office of Legal Services for Revenue, headed by an executive director, including organizational entities deemed appropriate by the secretary of the Finance and Administration Cabinet. Effective: June 25, 2009 History: Amended 2009 Ky. Acts ch. 12, sec. 21, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 8, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 12, sec. 3, effective July 15, 2002. -- Created 1984 Ky. Acts ch. 340, sec. 3, effective July 13, 1984.

KRS 42.019 Division of Historic Properties -- State curator

42.019. Division of Historic Properties -- State curator (1) The Division of Historic Properties established by KRS 42.425 shall be responsible for overseeing the management and preservation of state-owned historic properties including, but not limited to, the Executive Mansion, Old Governor's Mansion, Vest Lindsey House, Berry Hill, and the State Capitol. In addition, the division shall be responsible for maintaining state-owned furniture, china, silver, and art works and the care, display, inventory, conservation, restoration, and storage of any state- owned item of historical significance. (2) The Department of Parks and the Kentucky Horse Park may advise and consult the Division of Historic Properties in the operation, maintenance, restoration, conservation, and inventory of the state's shrines and museums. (3) The director of the Division of Historic Properties shall serve as state curator pursuant to KRS 11.026. The director may employ the personnel and assemble the records and files necessary to perform the duties, responsibilities, and functions of the office. Effective: July 15, 2008 History: Amended 2008 Ky. Acts ch. 13, sec. 1, effective July 15, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 699, effective June 20, 2005. -- Amended 1994 Ky. Acts ch. 176, sec. 3, effective July 15, 1994. -- Created 1984 Ky. Acts ch. 340, sec. 5, effective July 13, 1984.

KRS 42.024 Office of Material and Procurement Services

42.024. Office of Material and Procurement Services The Office of Material and Procurement Services within the Office of the Controller shall be responsible for the performance of the cabinet's purchasing functions under KRS Chapters 45 and 45A, except those purchasing functions related to the acquisition of interests in real property, and contractual and construction services which are related to and required in connection with the construction, renovation, and repair of state-owned buildings. The Office of Material and Procurement Services shall be responsible for the control of all state-purchased personal property. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 12, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 5, sec. 3, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 216, sec. 6, effective July 15, 1994; and ch. 508, sec. 10, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 386, sec. 1, effective July 13, 1990. -- Amended 1984 Ky. Acts ch. 111, sec. 33, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 393, sec. 23, effective July 15, 1982. -- Created 1978 Ky. Acts ch. 155, sec. 50, effective June 17, 1978. Legislative Research Commission Note (7/15/94). This section was amended by 1994 Ky. Acts chs. 216 and 508. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 508, which was last enacted by the General Assembly, prevails under KRS 446.250.

KRS 42.032 Web site to provide public access to expenditure records of executive branch -- Monthly and weekly updates -- Cabinet is sole custodian of information and records -- Branches to share software and applications

42.032. Web site to provide public access to expenditure records of executive branch -- Monthly and weekly updates -- Cabinet is sole custodian of information and records -- Branches to share software and applications (1) By January 1, 2012, the Finance and Administration Cabinet shall provide public access to records relating to expenditures of the executive branch of state government through display of the records on a Web site. The Web site shall provide: (a) Financial information of expenditures not exempt under the provisions of state or federal law, including: 1. The payee name; 2. The category or type of the expenditure; 3. A description of the reason for the expenditure, if available; 4. The expenditure amount; and 5. A link to the financial document, if the document is electronically available; (b) A searchable format; (c) Access to the current enacted Executive Branch Budget; and (d) A link to the public access Web site displays of the legislative and judicial branches of state government, and of the public institutions of higher education. (2) Information on the Web site shall be updated at least on a monthly basis. However, information on the Web site which is part of, or contained in, an electronic accounting system utilized by all branches of state government, such as the Enhanced Management Administrative Reporting System (EMARS), shall be updated on a weekly basis. (3) The cabinet shall maintain exclusive control and be considered the sole custodian of all information and records generated by and through activity of the executive branch of government, notwithstanding the situs of the information and the records in another branch of government, and disclosure thereof shall only be by the cabinet in accordance with applicable law. (4) In order to reduce Web site development costs and enhance public access and use of records viewed through Web sites as provided by this section and KRS 7.505 and 26A.260, each branch of state government shall freely share with the other branches of state government the software, software developments, and all applications, data, and information within its control used for Web site design, appearance, content, and operation in compliance with, or in furtherance of, the purposes contemplated by this section and KRS 7.505 and 26A.260. Effective: June 8, 2011 History: Created 2011 Ky. Acts ch. 105, sec. 3, effective June 8, 2011.

KRS 42.035 Executive Mansion -- Maintenance and operation -- Duties of cabinet as to food, personnel and Governor's travel expenses

42.035. Executive Mansion -- Maintenance and operation -- Duties of cabinet as to food, personnel and Governor's travel expenses (1) The Finance and Administration Cabinet shall be responsible for the management, maintenance, and operation, including the purchase for all purposes of all food and related supplies, of the Executive Mansion, and further including the reasonable and necessary expenses of the chief executive while traveling on business of the Commonwealth outside of the state. Such personnel, including domestic and household servants, as are necessary for the operation and maintenance of the Executive Mansion shall be employed by the Finance and Administration Cabinet. The provisions of KRS Chapter 42 shall apply to all purchases made for the maintenance and operation of the mansion. None of the provisions of KRS 18A.110 and 18A.155 shall apply to personnel employed for the maintenance and operation of the mansion. (2) A reasonable amount shall be deducted from the salary or other allowance of the Governor for the consumption by the Governor and his family of such food and supplies. (3) A reasonable amount shall be deducted from the salaries of personnel employed in operational and maintenance functions, including domestic and household servants, for the consumption by such personnel of such food and supplies. (4) The Finance and Administration Cabinet shall maintain such records relative to the management, maintenance, and operation of the Governor's Mansion and travel expenses of the chief executive as may be dictated by sound accounting practices. Effective: July 15, 1982 History: Amended 1982 Ky. Acts ch. 448, sec. 60, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 74, Art. II, sec. 9(1). -- Amended 1964 Ky. Acts ch. 18, sec. 1. -- Amended 1962 Ky. Acts ch. 210, sec. 6. -- Created 1956 Ky. Acts ch. 11, sec. 1.

KRS 42.037 Old Governor's Mansion, maintenance and operation -- Duties of cabinet as to food, personnel

42.037. Old Governor's Mansion, maintenance and operation -- Duties of cabinet as to food, personnel (1) The Finance and Administration Cabinet shall be responsible for the management, maintenance, and operation, including the purchase for all purposes of all food and related supplies, of the Old Governor's Mansion. Such personnel, including domestic and household servants, as are necessary for the operation and maintenance of the Old Governor's Mansion shall be employed by the Finance and Administration Cabinet. The provisions of this chapter shall apply to all purchases made for the maintenance and operation of the Old Governor's Mansion. None of the provisions of KRS 18A.110 and 18A.155 shall apply to the personnel employed for the maintenance and operation of the Old Governor's Mansion. (2) A reasonable amount shall be deducted from the salary or other allowance of the Lieutenant Governor for the consumption by the Lieutenant Governor and his family of such food and supplies. (3) A reasonable amount shall be deducted from the salaries of personnel employed in operational and maintenance functions, including domestic and household servants, for the consumption by such personnel of such food and supplies. (4) The Finance and Administration Cabinet shall maintain such records relative to the management, maintenance, and operation of the Lieutenant Governor's mansion as may be dictated by sound accounting practices. History: Amended 1982 Ky. Acts ch. 448, sec. 61, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 74, Art. II, sec. 9(1). -- Amended 1964 Ky. Acts ch. 18, sec. 2. -- Created 1956 Ky. Acts ch. 94, sec. 1. Formerly codified as KRS 56.325.

KRS 42.038 Vest Lindsey House -- Use as state meeting house and visitor information center

42.038. Vest Lindsey House -- Use as state meeting house and visitor information center (1) The Division of Historic Properties shall establish the Vest Lindsey House as a state meeting house and restrict its use, except as provided in subsection (3) of this section, to small meetings, luncheons, receptions, and other similar functions deemed appropriate by the Historic Properties Advisory Commission. (2) The use of the Vest Lindsey House as a state meeting house, as provided in subsection (1) of this section, shall be available to state and local government agencies, nonprofit organizations, and private persons and entities, all subject to availability and with the approval of the director of the Division of Historic Properties or his or her designee. (3) In addition to the use of the Vest Lindsey House as a state meeting house, the Division of Historic Properties shall maintain the Vest Lindsey House as a central visitor information center for the North Frankfort area, and, in consultation with the Kentucky Heritage Council, shall develop and display interpretative materials and other resources regarding the historical and architectural significance of the Vest Lindsey House and other sites in the North Frankfort area. Effective: July 15, 2008 History: Created 2008 Ky. Acts ch. 24, sec. 1, effective July 15, 2008.

KRS 42.065 Powers of Office of Policy and Audit

42.065. Powers of Office of Policy and Audit (1) The Office of Policy and Audit established in the Office of the Secretary in KRS 42.0145 may, with the approval of the secretary of the Finance and Administration Cabinet, conduct any internal audit, investigation, or management review in the Finance and Administration Cabinet related to the secretary's duties and responsibilities as chief financial officer of the Commonwealth pursuant to KRS 42.012. (2) When it is necessary to complete an internal audit, investigation, or management review in the Finance and Administration Cabinet, with the written approval of the secretary of the Finance and Administration Cabinet, the Office of Policy and Audit shall have access during business hours to all books, reports, papers, and accounts in the office or under the custody or control of any budget unit, or of any other program cabinet, department, or agency under the authority and direction of the Governor. Effective: June 25, 2009 History: Amended 2009 Ky. Acts ch. 12, sec. 25, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 13, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 5, sec. 4, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 68, sec. 5, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 216, sec. 7, effective July 15, 1994. -- Created 1986 Ky. Acts ch. 242, sec. 1, effective July 15, 1986.

KRS 42.0145 Office of the Secretary

42.0145. Office of the Secretary (1) The Office of the Secretary of the Finance and Administration Cabinet shall consist of the Office of Inspector General, Office of General Counsel, Office of Administrative Services, Office of Legislative and Intergovernmental Affairs, Office of Policy and Audit, Office of Equal Employment Opportunity and Contract Compliance, and Office of Fleet Management, each headed by an executive director who shall be appointed by the secretary with the approval of the Governor. The Office of the Secretary shall include a deputy secretary who shall be appointed by the secretary with the approval of the Governor. The deputy secretary shall be responsible to and have such authority to sign for the secretary as the secretary designates in writing. (2) The secretary may organize the office into such additional administrative units as he deems necessary to perform the functions and fulfill the duties of the cabinet, subject to the provisions of KRS Chapter 12. (3) All appointments under this chapter to positions not in the classified service shall be made pursuant to KRS 12.050, and such appointees shall be major assistants to the secretary and shall assist in the development of policy. Effective: July 14, 2022 History: Amended 2022 Ky. Acts ch. 51, sec. 3, effective July 14, 2022. -- Amended 2017 Ky. Acts ch. 131, sec. 4, effective June 29, 2017. -- Amended 2009 Ky. Acts ch. 12, sec. 19, effective June 25, 2009. -- Repealed, reenacted, and amended 2005 Ky. Acts ch. 85, sec. 6, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 12, sec. 1, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 5, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 68, sec. 1, effective July 15, 1998. -- Amended 1992 Ky. Acts ch. 13, sec. 5, July 14, 1992. -- Amended 1984 Ky. Acts ch. 340, sec. 1, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 393, sec. 16, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 155, sec. 43, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 299, sec. 6. -- Created 1974 Ky. Acts ch. 74, Art. II, sec. 3. Formerly codified as KRS 42.013.

KRS 42.0146 Office of Equal Employment Opportunity and Contract Compliance -- Oversight of certification program for disabled veteran-owned businesses -- Administrative regulations

42.0146. Office of Equal Employment Opportunity and Contract Compliance -- Oversight of certification program for disabled veteran-owned businesses -- Administrative regulations (1) For purposes of this section: (a) "Disabled veteran" means an individual, domiciled in Kentucky, who has served on active duty in the Armed Forces, has been separated therefrom under honorable or general conditions, and has established the present existence of a service-connected disability or is receiving compensation, disability retirements benefits, or pension because of a public statute administered by the United States Department of Veterans Affairs or Department of Defense, or was terminated from active duty by the Department of Defense because of a disability; and (b) "Disabled veteran-owned business" means a business: 1. Where a disabled veteran has at least fifty-one percent (51%) ownership; 2. That is independently owned and operated; 3. That does not exceed the applicable size standards for its industry, as determined by the United States Small Business Administration; 4. That has been owned and operated by the disabled veteran for at least a full calendar or fiscal year; and 5. For which the disabled veteran has filed a business tax return consisting of a full calendar or fiscal year. (2) The Office of Equal Employment Opportunity and Contract Compliance shall oversee a program that provides certification of a disabled veteran-owned business in order to encourage growth among businesses owned by disabled veterans within the state and assist those businesses in competing for work in other states that require certification by a statewide body. This certification does not provide a preference in state procurement, nor does it create a point system or set aside for disabled veteran-owned businesses. (3) In order to apply for certification, a disabled veteran shall provide proof of his or her disability. Proof shall be in the form of Department of Defense Form DD 214, United States Department of Veterans Affairs disability letter, or other United States Department of Veterans Affairs documentation establishing a service- connected disability. (4) The Finance and Administration Cabinet shall promulgate any administrative regulations necessary to create and manage the disabled veteran-owned business certification program, which may include but is not limited to additional certification requirements, the application process, onsite visitation by the Office of Equal Employment Opportunity and Contract Compliance, and recertification. Effective: July 15, 2016 History: Created 2016 Ky. Acts ch. 100, sec. 1, effective July 15, 2016.

KRS 42.0147 Office of the Inspector General

42.0147. Office of the Inspector General The Office of the Inspector General is established within the Office of the Secretary of the Finance and Administration Cabinet and shall be responsible for conducting various investigations within the executive branch in accordance with KRS 45.131. Effective: June 29, 2021 History: Amended 2021 Ky. Acts ch. 81, sec. 1, effective June 29, 2021. -- Created 2017 Ky. Acts ch. 131, sec. 1, effective June 29, 2017.

KRS 42.0148 Office of Legislative and Intergovernmental Affairs

42.0148. Office of Legislative and Intergovernmental Affairs (1) The Office of Legislative and Intergovernmental Affairs is established within the Finance and Administration Cabinet to provide executive direction and coordination of the cabinet's legislative priorities. (2) The Office of Legislative and Intergovernmental Affairs, in close communication with the secretary, shall: (a) Proactively pursue the goals of the cabinet by working with members of the General Assembly and the staff of the Legislative Research Commission; (b) Oversee all public information issues; (c) Manage requests for information; and (d) Prepare press releases, respond to press inquiries, and coordinate the publication of newsletters, reports, Web site information, and other statewide communications of the Finance and Administration Cabinet. Effective: June 29, 2017 History: Created 2017 Ky. Acts ch. 131, sec. 2, effective June 29, 2017.

KRS 42.0171 Office of Administrative Services

42.0171. Office of Administrative Services (1) The Office of Administrative Services established in KRS 42.0145 shall be generally responsible for all internal administrative and human resource functions of the cabinet, including but not limited to providing administrative assistance; managing and preparing the cabinet's budget; performing general accounting; managing fiscal, personnel, and payroll functions of the cabinet; providing statewide postal and printing services; providing administrative support to boards and commissions; and performing any additional administrative functions and duties the secretary may assign. (2) There shall be established in the Office of Administrative Services: (a) The Office of Budget and Fiscal Management, headed by an executive director who shall report directly to the executive director of the Office of Administrative Services, and consisting of the: 1. Division of Budget; and 2. Division of Fiscal Management; and (b) The following divisions which shall be headed by a division director who shall report to the executive director of the Office of Administrative Services: 1. Division of Human Resources; and 2. Division of Postal Services. (3) Executive directors and division directors appointed under this section shall be appointed by the secretary with the approval of the Governor under KRS 12.050. There may be, if needed, sections assigned to specific areas of work, responsible directly to the executive director of the Office of Administrative Services. Effective: July 14, 2022 History: Amended 2022 Ky. Acts ch. 51, sec. 4, effective July 14, 2022. -- Amended 2021 Ky. Acts ch. 81, sec. 2, effective June 29, 2021. -- Amended 2009 Ky. Acts ch. 12, sec. 22, effective June 25, 2009. -- Repealed, reenacted, and amended 2005 Ky. Acts ch. 85, sec. 9, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 5, sec. 2, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 214, sec. 1, effective July 15, 1994; ch. 216, sec. 5, effective July 15, 1994; and ch. 508, sec. 9, effective July 15, 1994. -- Amended 1982 Ky. Acts ch. 393, sec. 22, effective July 15, 1982. -- Created 1978 Ky. Acts ch. 155, sec. 49, effective June 17, 1978. Legislative Research Commission Note (7/15/94). This section was amended by 1994 Ky. Acts chs. 214, 216, and 508. Where these Acts are not in conflict, they have been codified together. Where a conflict exists between chs. 216 and 508, Acts ch. 508, which was last enacted by the General Assembly, prevails under KRS 446.250. Legislative Research Commission Note. This section was amended by 1982 Acts Chapter 183, Section 2 and 1982 Acts Chapter 393, Section 22 which conflict and cannot be compiled together. Pursuant to KRS 446.250, the amendment in Chapter 393 prevails as the later enactment. Formerly codified as KRS 42.023.

KRS 42.0172 Division of Postal Services

42.0172. Division of Postal Services The Division of Postal Services shall operate the centralized postal services for executive branch agencies as set forth in KRS 12.020. The division shall operate at a central location with additional locations necessary to maintain and improve service levels. Effective: June 25, 2009 History: Amended 2009 Ky. Acts ch. 12, sec. 23, effective June 25, 2009. -- Repealed, reenacted, and amended 2005 Ky. Acts ch. 85, sec. 10, effective June 20, 2005. -- Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 4, sec. 15, effective May 30, 1997. -- Amended 1994 Ky. Acts ch. 214, sec. 2, effective July 15, 1994; and ch. 508, sec. 11, effective July 15, 1994. -- Amended 1982 Ky. Acts ch. 393, sec. 24, effective July 15, 1982. -- Created 1978 Ky. Acts ch. 155, sec. 51, effective June 17, 1978. Formerly codified as KRS 42.025.

KRS 42.0174 Office of Policy and Audit

42.0174. Office of Policy and Audit (1) The Office of Policy and Audit established within the Office of the Secretary by KRS 42.0145 shall have the duties and responsibilities established in KRS 42.065. (2) The Office of Policy and Audit shall be headed by an executive director who shall be appointed in accordance with KRS 12.050 and shall report to the secretary. Effective: July 12, 2012 History: Amended 2012 Ky. Acts ch. 69, sec. 3, effective July 12, 2012. -- Created 2009 Ky. Acts ch. 12, sec. 1, effective June 25, 2009.

KRS 42.0175 Office of Fleet Management

42.0175. Office of Fleet Management (1) The Office of Fleet Management pursuant to KRS 42.0145 shall be generally responsible for all technical and administrative services related to the Commonwealth’s fleet of vehicles, including but not limited to: (a) Procuring vehicles; (b) Maintaining and repairing vehicles; (c) Reserving, assigning, and distributing vehicles; (d) Reporting fleet mileage; and (e) Performing any additional administrative functions and duties the secretary may assign. (2) There shall be established in the Office of Fleet Management the following divisions which shall be headed by a division director who shall report to the executive director of the Office of Fleet Management: (a) Division of Maintenance; and (b) Division of Operations and Administration. (3) The division directors appointed under this section shall be appointed by the secretary with the approval of the Governor under KRS 12.050. There may be, if needed, sections assigned to specific areas of work, responsible directly to the executive director of the Office of Fleet Management. Effective: July 14, 2022 History: Created 2022 Ky. Acts ch. 51, sec. 1, effective July 14, 2022.

KRS 42.190 Cost projections of Firefighters Foundation Program fund and Law Enforcement Foundation Program fund -- Disposition of funds collected under KRS 136.392 -- Lapsing of certain funds -- Monthly reports

42.190. Cost projections of Firefighters Foundation Program fund and Law Enforcement Foundation Program fund -- Disposition of funds collected under KRS 136.392 -- Lapsing of certain funds -- Monthly reports (1) On June 1, 1982, and then on or before the first day of each December, March, June, and September thereafter, the cabinet shall request in writing of the administrator of the Firefighters Foundation Program fund, which is established by KRS 95A.220, and of the administrator of the Law Enforcement Foundation Program fund, which is established by KRS 15.430, cost projections of their respective funds for the next quarter. Based on these projections, the cabinet shall determine the proportionate share of total insurance premium surcharge proceeds, prescribed in KRS 136.392, to accrue to each fund. (2) On or before the first day of each quarter, the cabinet shall certify to the State Treasurer a distribution schedule describing the proportionate share of total insurance premium surcharge proceeds accruing to each fund during such quarter, and the State Treasurer shall pay into each fund's trust and agency account its proportionate share of all deposited tax moneys as set forth and in the manner as prescribed in KRS 136.392. (3) Moneys deposited in the Firefighters Foundation Program fund's trust and agency account, and in the Law Enforcement Foundation Program fund's trust and agency account, shall be invested by the state in accordance with state investment practices, and all earnings from such investments shall accrue to, and be paid into the respective account from which such investments are made. All moneys remaining on deposit at the close of the state's fiscal year in the Firefighters Foundation Program fund's trust and agency account and all earnings from investments made from moneys in this account in excess of three million dollars ($3,000,000), beginning with fiscal year 1994-95, through June 30, 1999, shall lapse, except that moneys in the revolving loan fund established in KRS 95A.262 shall not lapse. All moneys remaining on deposit at the close of the state's fiscal year in the Law Enforcement Foundation Program fund's trust and agency account, and all earnings from investments made from moneys in this account, in excess of three million dollars ($3,000,000), beginning with fiscal year 1994-95, through June 30, 1999, shall lapse. On and after July 1, 1999, moneys in these accounts shall not lapse. (4) The cabinet shall provide monthly financial reports to the administrator of the Firefighters Foundation Program fund and the administrator of the Law Enforcement Foundation Program fund respecting the amount of funds received and on deposit in each fund and the amount of earnings accruing to each fund from their investment. Effective: July 15, 1998 History: Amended 1998 Ky. Acts ch. 244, sec. 6, effective July 15, 1998; and ch. 510, sec. 6, effective July 15, 1998. -- Amended 1992 Ky. Acts ch. 381, sec. 6, effective July 14, 1992. -- Amended 1984 Ky. Acts ch. 300, sec. 2, effective July 13, 1984. -- Created 1982 Ky. Acts ch. 246, sec. 2, effective July 15, 1982. Legislative Research Commission Note (7/15/98). This section was amended by 1998 Ky. Acts ch. 244, sec. 6, and ch. 510, sec. 6, which are identical and have been codified together.

KRS 42.200 Water project interest rate buy down fund -- Funding sources, purposes, uses, and administration

42.200. Water project interest rate buy down fund -- Funding sources, purposes, uses, and administration (1) The water project interest rate buy down fund is hereby created as a special fund in the State Treasury. The fund may receive state appropriations, gifts, grants, and federal funds and shall include earnings from investments of moneys in the fund. Any fund balance at the close of the fiscal year shall not lapse but shall be carried forward to the next fiscal year, and moneys in this fund shall be continuously appropriated only for the purposes specified in this section. (2) The fund shall be used to provide financial assistance to government agencies for the construction of publicly owned water supply projects located in rural areas of the Commonwealth. In order to qualify for the financial assistance, the governmental agency shall obtain a loan from a bank or combined bank and trust company organized under the laws of this Commonwealth and at an interest rate no greater than two (2) percentage points higher than the current prime rate. The financial assistance provided shall consist of an annual grant to the governmental agency to be made over the life of the loan obtained by the governmental agency for the construction of the publicly owned water supply project. The amount of the annual grant shall be calculated over the life of the loan to provide to the governmental agency each year the portion of the interest on the loan calculated at a four percent (4%) interest rate. The governmental agency shall be responsible for the payment of the interest on the loan in excess of the four percent (4%) interest rate and for the payment of the principal on the loan. (3) The Finance and Administration Cabinet shall administer the fund and may promulgate administrative regulations as necessary to implement the provisions of this section. The Department for Local Government shall advise government agencies of the fund and how to apply for moneys from the fund. (4) The provisions of this section shall be known and may be cited as the Kentucky Rural Water Act. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 117, sec. 20, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 47, sec. 14, effective June 26, 2007. -- Amended 1998 Ky. Acts ch. 69, sec. 6, effective July 15, 1998. -- Created 1996 Ky. Acts ch. 322, sec. 1, effective July 15, 1996.

KRS 42.0201 Office of the Controller

42.0201. Office of the Controller (1) There is created within the Finance and Administration Cabinet the Office of the Controller. (2) The Office of the Controller shall be headed by an executive director appointed by the secretary of the Finance and Administration Cabinet with the approval of the Governor. The executive director shall function as the state controller, who shall be a person qualified by education and experience for the position and held in high professional esteem in the accounting community. (3) The state controller shall be the Commonwealth's chief accounting officer and shall be responsible for all aspects of accounting policies and procedures, financial accounting systems, and internal accounting control policies and procedures. The Office of the Controller shall establish guidelines for state personnel administration on issues relating to paycheck distribution dates, assignment of data elements to accurately report labor costs, assignment and tracking of actual expenditures by code, and coverage issues relating to Social Security and Medicare. (4) The state controller; the executive director of the Office of Financial Management, Finance and Administration Cabinet; and the state budget director designated under KRS 11.068 shall develop and maintain the Commonwealth's strategic financial management program. (5) Executive directors and division directors appointed under this section shall be appointed by the secretary with the approval of the Governor. (6) There are established in the Office of the Controller the following organizational entities: (a) The Office of Financial Management, which shall be headed by an executive director, shall have the duties and responsibilities established in KRS 42.410, and shall serve as administrative staff to the Turnpike Authority of Kentucky. The executive director shall serve as secretary to the authority; (b) The Office of Material and Procurement Services, which shall be headed by an executive director and shall have the duties established in KRS 42.024. There are established within the Office of Material and Procurement Services the following organizational entities: 1. The Division of Professional Services and Training, which shall be headed by a division director who is appointed by the secretary of the Finance and Administration Cabinet pursuant to KRS 12.050, and who shall report to the executive director; and 2. The Division of Contract Management, which shall be headed by a division director who is appointed by the secretary of the Finance and Administration Cabinet pursuant to KRS 12.050, and who shall report to the executive director; (c) The Division of Local Government Services, which shall be headed by a division director and shall be responsible for: 1. Providing property valuation administrators with fiscal, personnel, payroll, training, and other essential administrative support services; 2. Overseeing Kentucky's Social Security coverage program, including but not limited to all aspects of FICA wage reporting for state government and the Commonwealth's Social Security coverage agreement; 3. Serving as liaison between local governments and the federal Internal Revenue Service and Social Security Administration; 4. Serving as the payroll and fiscal officer for the sheriff and clerk in counties over seventy thousand (70,000) in population, disbursing various reimbursements and expenditures to local governments and serving as liaison and conduit for all court fees associated with report of state money through the Circuit Courts; 5. Directing the federal employment tax program for state employees; and 6. Performing state government's duties relating to the county fee system for local entities; (d) The Office of Statewide Accounting Services, headed by an executive director appointed by the secretary of the Finance and Administration Cabinet, subject to the approval of the Governor. The executive director shall report directly to the state controller. The office shall perform financial record keeping functions at the state controller's direction, and shall be responsible for the performance of the cabinet's functions outlined in KRS 45.305, 48.800, and other related statutes. There is established within the Office of Statewide Accounting Services the Division of Customer Resource Center, which shall be headed by a division director appointed by the secretary pursuant to KRS 12.050 and who shall report to the executive director of the Office of Statewide Accounting Services. The division shall be responsible for: 1. Providing a help desk for users of state government's financial and procurement system, including state employee users and vendors and payees of the Commonwealth who do, or would like to do, business with the state; 2. Training state employees in the use of state government's financial and procurement system; and 3. Assisting cabinet entities in improving the quality of their products and processes; and (e) The Division of State Risk and Insurance Services, headed by a division director appointed by the secretary of the Finance and Administration Cabinet, subject to the approval of the Governor. The director shall report directly to the state controller and shall have the duties specified in KRS 42.0651. Effective: July 15, 2016 History: Amended 2016 Ky. Acts ch. 84, sec. 1, effective July 15, 2016. -- Amended 2012 Ky. Acts ch. 69, sec. 4, effective July 12, 2012. -- Amended 2009 Ky. Acts ch. 12, sec. 24, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 11, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 5, sec. 5, effective July 14, 2000; and ch. 46, sec. 5, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 85, sec. 1, effective July 15, 1998. -- Created 1994 Ky. Acts ch. 508, sec. 1, effective July 15, 1994.

KRS 42.205 Permanent pension fund

42.205. Permanent pension fund (1) There is hereby established within the Finance and Administration Cabinet the Kentucky permanent pension fund for the purpose of addressing the Commonwealth's unfunded pension liabilities. The proceeds contained in this fund shall be used only for contributions to the Commonwealth's pension funds. (2) The fund may receive: (a) State appropriations; (b) The net proceeds from the sale of real property owned by the Commonwealth or any agency thereof; and (c) Any settlements or judgments resulting from litigation in which the Commonwealth or any of its agencies is a party, after costs of litigation and mandatory deductions or restitution to consumers have been deducted. (3) Any unallotted or unencumbered balances in the fund shall be invested pursuant to KRS 42.500. (4) Income earned from the investments shall be credited to and become part of the fund. (5) Notwithstanding KRS 45.229, any fund balance at the close of the fiscal year shall not lapse but shall be carried forward to the next fiscal year. All amounts in the fund shall remain in the fund and shall not be expended or appropriated without the express authority in an enacted biennial budget bill. Effective: July 15, 2016 History: Created 2016 Ky. Acts ch. 133, sec. 8, effective July 15, 2016. 2020-2022 Budget Reference. See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. V, D, 2 at 940.

KRS 42.320 Court cost distribution fund -- Disbursements -- Payments into general fund

42.320. Court cost distribution fund -- Disbursements -- Payments into general fund (1) There is hereby established the court cost distribution fund, which is created to provide a central account into which the court costs collected by all circuit clerks , under KRS 23A.205(1) and 24A.175(1), shall be paid. (2) The fund shall be administered by the Finance and Administration Cabinet, which shall make monthly disbursements from the fund according to the following schedule: (a) Forty-nine percent (49%) of each court cost shall be paid into the general fund; (b) Ten and eight-tenths percent (10.8%) of each court cost, up to five million four hundred thousand dollars ($5,400,000), shall be paid into the State Treasury for the benefit and use of the Kentucky Loc al Correctional Facilities Construction Authority under KRS 441.605 to 441.695; (c) Six and one-half percent (6.5%) of each court cost, up to three million two hundred fifty thousand dollars ($3,250,000), shall be paid into the spinal cord and head injury research trust fund created in KRS 211.504; (d) Five and one-half percent (5.5%) of each court cost, up to two million seven hundred fifty thousand dollars ($2,750,000), shall be paid into the traumatic brain injury trust fund created in KRS 211.476; (e) Five percent (5%) of each court cost, up to two million five hundred thousand dollars ($2,500,000), shall be paid into a trust and agency account with the Administrative Office of the Courts and is to be used by the circuit clerks to hire additional deputy clerks and to enhance deputy clerk salaries; (f) Three and one-half percent (3.5%) of each court cost, up to one million seven hundred fifty thousand dollars ($1,750,000), shall be paid to a special trust and agency account that shall not lapse for the Dep artment of Public Advocacy; (g) Three and four-tenths percent (3.4%) of each court cost, up to one million seven hundred thousand dollars ($1,700,000), shall be paid into the crime victims' compensation fund created in KRS 49.480; (h) Seven-tenths of one percent (0.7%) of each court cost, up to three hundred fifty thousand dollars ($350,000), shall be paid to the Justice and Public Safety Cabinet to defray the costs of conducting record checks on prospective firearms purchasers pursuant to the Brady Handgun Violence Prevention Act and for the collection, testing, and storing of DNA samples; (i) Ten and one-tenth percent (10.1%) of each court cost, up to five million fifty thousand dollars ($5,050,000), deposited in the fund shall be paid to the county sheriff in the county from which the court cost was received; and (j) Five and one-half percent (5.5%) of each court cost, up to two million seven hundred fifty thousand dollars ($2,750,000), deposited in the fund shall be paid to the county treasurer in the county from which the court cost was received and shall be used by the fiscal court in that c ounty for the purposes of defraying the costs of operation of the county jail and the transportation of prisoners. (3) Any moneys remaining in the fund after the monthly disbursements in subsection (2) of this section shall be paid into the general fund. (4) Any moneys collected above the prescribed amount shall be paid into the general fund. Effective: June 29, 2017 History: Amended 2017 Ky. Acts ch. 74, sec. 60, effective June 29, 2017; and ch. 167, sec. 11, effective June 29, 2017. -- Amended 2007 Ky. Acts ch. 85, sec. 123, effective June 26, 2007. -- Created 2002 Ky. Acts ch. 183, sec. 9, effective August 1, 2002. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, H, 4, (2) at 2096. Legislative Research Commission Note (6/29/2017). This statute was amended by 2017 Ky. Acts chs. 74 and 167, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (6/26/2007). 2007 Ky. Acts ch. 85, relating to the creation and organization of the Justice and Public Safety Cabinet, instructs the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in that Act. Such a correction has been made in this section. Legislative Research Commission Note (7/15/2002). This statute number, KRS 42.320, was previously used for a KRS section that was repealed. That earlier section (1974 Ky. Acts ch. 74, Art. VIII, Part I, sec. 1; 1982 Ky. Acts ch. 396, sec. 5) was repealed by 1982 Ky. Acts ch. 450, sec. 79, effective July 1, 1983. The catchline at repeal read, "State clearinghouse functions for federal funds."

KRS 42.345 Definitions for KRS 42.350 to 42.370

42.345. Definitions for KRS 42.350 to 42.370 As used in KRS 42.350 to 42.370 the words: (1) "Beneficiary agency" means an agency eligible to receive the benefit of a capital project to be wholly or partly financed out of the area development fund, including and limited to political subdivisions, special districts and agencies created pursuant to the Interlocal Cooperation Act, or any combination thereof; and, not-for-profit corporations organized for public purposes and performing governmental functions and services; (2) "Fund" means the area development fund established in the State Treasury by KRS 42.350. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 187, sec. 1, effective June 17, 1978. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 12, (1) at 2055.

KRS 42.350 Area development fund for capital projects

42.350. Area development fund for capital projects (1) The area development fund in the State Treasury shall be administered by the Department for Local Government. The fund may receive state appropriations, gifts, grants, and federal funds and shall be disbursed by the State Treasurer upon the warrant of the commissioner of the Department for Local Government. Any unallotted or unencumbered balances in the fund shall be invested in United States government securities maturing not later than one (1) year from the date of investment, and the income from the investments shall be prorated for expenditure for capital projects in area development districts according to the formula provided in KRS 42.370. (2) Money in the fund shall be used only for capital projects which contribute to community or industrial development in the Commonwealth, KRS 48.300 and 48.500 notwithstanding. Capital projects eligible for financing out of the fund include and shall be limited to: (a) The construction, reconstruction, renovation, and maintenance of buildings and other improvements to real estate; (b) The acquisition of real property and interests in real property; (c) The purchase of major items of equipment; (d) Industrial site development projects, including land reclamation, clearing, grading, draining, landscaping, and the construction of walkways and fences; (e) The extension and installation of water, gas, sewer, and electrical utilities lines to public facilities and industrial sites; (f) The provision of solid waste management or disposal systems bringing counties into compliance with state or federal law. All expenses incurred in connection with or incidental to the construction or acquisition of a capital project under this section, including architectural, engineering, legal, and other expenses required for the projects may be paid out of the fund. Money in the fund may be used to retire a mortgage or other indebtedness encumbering an eligible capital project made within the preceding five (5) calendar years to secure the repayment of moneys loaned or advanced to finance the construction or acquisition of the project and may be used in match or in combination with funds obtained from other sources for an eligible capital project. No money shall be expended out of the fund, directly or indirectly, to pay or reimburse the cost o f any feasibility study, master plan for any capital improvement development or redevelopment project, the purchase of consumable supplies or any administrative salary, or other operating or capital expense of any area development district or for the acquisition, construction, reconstruction, renovation, or maintenance of any building or property of schools, state institutions of higher learning, or any road, street, bridge, or highway. (3) The board of directors of each area development district shall dete rmine from among the capital project proposals submitted by eligible beneficiary agencies, the capital projects to be proposed to be constructed or acquired out of the fund. The area development districts shall submit to the commissioner of the Department for Local Government the capital projects selected for construction or acquisition within the districts. Each project proposal shall include: a detailed description of the project; a statement of the public benefit to be derived from the project; if available, design plans and specifications for the project; an itemized estimate of the cost of the project; a statement of the sources and amounts of funds available from any other source for the construction or acquisition of the project; and other information relating to the proposed capital project as the Department for Local Government may require. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 117, sec. 21, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 47, sec. 15, effective June 26, 2007. -- Amended 1998 Ky. Acts ch. 69, sec. 7, effective July 15, 1998. -- Amended 1984 Ky. Acts ch. 111, sec. 35, effective July 13, 1984; and ch. 404, sec. 42, effective July 13, 1984. -- Amended 1978 Ky. Acts ch. 187, sec. 2, effective June 17, 1978. -- Created 1976 Ky. Acts ch. 339, sec. 1. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 12, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 12, (2) at 2055.

KRS 42.355 Examination and approval of projects -- Grants -- Administration -- Conditions

42.355. Examination and approval of projects -- Grants -- Administration -- Conditions (1) The Department for Local Government shall examine each capital project selected by the area development districts, and when it finds that a proposed project conforms to the requirements of KRS 42.350 to 42.370; that the estimated costs of the project are reasonable; that the costs proposed to be paid from the fund are within the amount available; and that the proposed beneficiary agency will be reasonably able to finance the operation and maintain the capital project during its estimated useful life, the commissioner of the Department for Local Government shall approve it. If the Department for Local Government determines that a capital project proposal does not conform to the requirements of KRS 42.350 to 42.370, that the estimated costs of the project are excessive or unreasonable in light of the public benefit to be derived from the project, or the unencumbered balance in the fund available for expenditure in the area development district is insufficient to pay the costs of the project, or the part thereof proposed to be paid out of the fund, or the beneficiary agency cannot reasonably finance the operation of or maintain the capital project during its estimated use ful life, the project proposal shall be disapproved by the Department for Local Government. The final decision to either approve or disapprove any project proposal shall be made no later than forty -five (45) days following official submittal of a complete proposal by the area development district, and the area development district shall be accordingly notified at that time. (2) The commissioner of the Department for Local Government may make direct grants-in-aid of money out of the fund to any beneficiary agency for the construction or acquisition of any approved capital project. When a direct grant-in- aid has been made to a beneficiary agency, all contracts awarded for the purchase of materials, supplies, equipment, or services, except professional and technical services, required for the construction or acquisition of the project shall be awarded to the lowest and best bidder in the discretion of the beneficiary agency after public advertisement as required by KRS Chapter 424 or other applicable law. All contracts awarded under this section for the construction, reconstruction, or renovation of a building or other improvement to real estate shall be deemed contracts for public works within the meaning of KRS 341.317 and KRS Chapter 376 and other applicable statutes. All beneficiary agencies receiving a direct grant - in-aid under this subsection shall keep and maintain complete and accurate records of accounts of all expenditures of the grant moneys which shall be subject to audit by the Commonwealth for a period of five (5) years after completion of the capital project. Beneficiary agencies shall complete approved capital projects within a reasonable period of time as determined by the Department for Local Government. Upon completion of capital projects, beneficiary agencies shall submit project completion reports to the Department for Local Government as prescribed by the Department for Local Government and containing documents and information as may be necessary to determine compliance with KRS 42.350 to 42.360 and other applicable statutes and administrative regulations. Beneficiary agencies shall be liable to repay to the fund any granted funds for failure to submit full project completion reports within a reasonable period of time or for expenditure of granted funds in violation of statutes and regulations. No additional area development funds may be approved until compliance, except at the discretion of the commissioner of the Department for Local Government. Any grant moneys not required after all of the costs of the capital project have been paid by the beneficiary agency shall be promptly returned to the Commonwealth for reallocation for expenditure for other capital projects in the area development district to which the funds had been originally allocated. (3) No capital project shall be constructed under KRS 42.350 to 42.370 except upon land to which (a) the Commonwealth, a political subdivision of the Commonwealth, or the beneficiary agency of the capital project has a good and marketable title, free of encumbrances, or (b) the beneficiary agency of the project has the right to the uninterrupted use, occupancy, and possession for a period longer than the estimated useful life of the capital project; provided nothing herein shall prohibit the construction or renovation of public buildings on land with an existing encumbrance to secure payment of funds obtained for the acquisition or improvement of said land. Each beneficiary agency shall execute and deliver to the Commonwealth its written assurances, which shall be binding on the agencies' successors and assigns, guaranteeing that during its estimated useful life, the capital project shall be operated and maintained for public purposes and pledging that no mortgage or other encumbrances shall be placed against any capital project wholly financed out of the fund, except industrial development projects, for the breach of which assurances the Commonwealth shall have right of entry to the capital project and the beneficiary agency, or its successors and assigns, shall forthwith convey the title to the capital project to the Commonwealth. Similar assurances shall be executed and delivered to the Commonwealth by the beneficiary agencies of capital projects financed in part out of the fund and in part from other sources, except that when additional funding is derived from the issuance and sale of revenue bonds or under other statutorily authorized financing methods, to secure the repayment of which funds a statutory mortgage lien is granted in favor of any person or group of persons, the capital project may be encumbered to the extent authorized or required by the law under which the financing method was undertaken; nor shall anything in this section prohibit the encumbrance of any real property located within an industrial park or constituting an industrial site, developed or improved as a capital project under KRS 42.350 and this section, by any person, firm, company, partnership, or corporation to which the property has been conveyed, to obtain financing for the construction upon the property of industrial and commercial buildings. The written assurances provided by beneficiary agencies under this section shall be lodged for recording and recorded in the office of the county clerk of the county in which the proposed project shall be located. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 117, sec. 22, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 47, sec. 16, effective June 26, 2007. -- Amended 1998 Ky. Acts ch. 69, sec. 8, effective July 15, 1998. -- Amended 1984 Ky. Acts ch. 404, sec. 43, effective July 13, 1984. -- Created 1978 Ky. Acts ch. 187, sec. 3, effective June 17, 1978. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 12, (1) at 2055.

KRS 42.360 Rules and regulations for implementation of KRS 42.350 and 42.355

42.360. Rules and regulations for implementation of KRS 42.350 and 42.355 The commissioner of the Department for Local Government shall promulgate rules and regulations governing submission and approval of proposed capital projects, the expenditure of moneys from the fund, and the designation of beneficiary agencies involved in capital projects as shall be appropriate to the implementation of KRS 42.350 and 42.355. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 117, sec. 23, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 47, sec. 17, effective June 26, 2007. -- Amended 1998 Ky. Acts ch. 69, sec. 9, effective July 15, 1998. -- Amended 1984 Ky. Acts ch. 404, sec. 44, effective July 13, 1984. -- Amended 1978 Ky. Acts ch. 187, sec. 4, effective June 17, 1978. -- Created 1976 Ky. Acts ch. 339, sec. 3. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 12, (1) at 2055.

KRS 42.370 Amounts to be expended from fund

42.370. Amounts to be expended from fund (1) The maximum amount to be expended out of the area development fund for capital projects within each area development district shall be calculated on the basis of the following formula: (a) Sixty percent (60%) of the fund is allocated for expenditure within each district in the ratio that the population of the component counties bears to the total population of the state. (b) Twenty percent (20%) of the fund is allocated for expenditure in each district in inverse proportion to the total manufacturing employment conducted in each such district. (c) Twenty percent (20%) of the fund is allocated for expenditure in each district in inverse proportion to the relative per capita income prevailing in each such district. (2) Any balance remaining in the fund at the close of any fiscal year shall not lapse, but shall continue into and be available for expenditure during the next succeeding fiscal year. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 187, sec. 5, effective June 17, 1978. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 12, (1) at 2055.

KRS 42.400 Office of Financial Management

42.400. Office of Financial Management (1) The Office of Financial Management established in KRS 42.0201 shall be headed by an executive director responsible to the secretary of the Finance and Administration Cabinet, and appointed by the secretary upon approval of the Governor in accordance with the provisions of KRS 12.050. (2) There are included in the Office of Financial Management established in KRS 42.0201 the positions of deputy executive directors for investment and debt management, who shall be employed in the classified service as set forth in KRS Chapter 18A. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 15, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 46, sec. 6, effective July 14, 2000. -- Amended 1990 Ky. Acts ch. 321, sec. 3, effective July 13, 1990. -- Created 1980 Ky. Acts ch. 310, sec. 1, effective July 15, 1980. Legislative Research Commission Note (4/26/2017). The Reviser of Statutes has corrected a manifest clerical or typographical error in the reference to "KRS 42.4201" in subsections (1) and (2) of this statute. The correct reference is to KRS 42.0201, which created the Office of Financial Management, and that change has been made under the authority of KRS 7.136.

KRS 42.409 Definitions for KRS 42.410 and 45.760

42.409. Definitions for KRS 42.410 and 45.760 As used in KRS 42.410 and 45.760, unless the context requires otherwise: (1) "State total personal income" means the measure of all income received by or on behalf of persons in the Commonwealth, as most recently published in the Survey of Current Business by the United States Department of Commerce, Bureau of Economic Analysis. (2) "Estimated state total personal income" means the personal income figure used by the Governor's Office for Economic Analysis to generate final detailed revenue estimates. (3) "Total revenues" means revenues credited to the general fund and the road fund consistent with the provisions of KRS 48.120, as well as any restricted agency fund account from which debt service is expended. (4) "Anticipated total revenues" means the official revenue estimates, as provided for in KRS 48.120, projected for the general fund and the road fund, as well as any restricted agency fund account from which debt service is expended. (5) "Available revenues" means revenues credited to the general fund and the road fund consistent with the provisions of KRS 48.120, as well as any restricted agency fund account from which debt service is expended, minus any statutorily dedicated receipts of the respective funds. (6) "Anticipated available revenues" means official revenue estimates, as provided for in KRS 48.120, projected for the general fund and the road fund, as well as any restricted agency fund account from which debt service is expended, minus any statutorily dedicated receipts of the respective funds. (7) "Total assessed value of property" means state total net assessed value of property for taxes due, as obtained from the Department of Revenue. (8) "Per capita" means per unit of population, where population figures are the most recent available from the University of Louisville, Kentucky State Data Center. (9) "Appropriation-supported debt service" means the amount of an appropriation identified to be expended for debt service purposes in the executive budget recommendation, and the amount of an appropriation expended for debt services in a completed fiscal year. (10) "Appropriation-supported debt" means the outstanding principal of bonds issued by all state agencies and all individuals, agencies, authorities, boards, cabinets, commissions, corporations, or other entities of, or representing the Commonwealth with the authority to issue bonds, and for which debt service is appropriated by the General Assembly. (11) "Nonappropriation-supported debt" means the outstanding principal of bonds issued by all state agencies and all individuals, agencies, authorities, boards, cabinets, commissions, corporations, or other entities of, or representing the Commonwealth with the authority to issue bonds, and for which debt service is not appropriated by the General Assembly. (12) "Statutorily dedicated receipts" means revenues credited to the general fund and road fund consistent with the provisions of KRS 48.120, as well as any restricted agency fund account, which are required by an enacted statute to be used for a specific purpose. Statutorily dedicated receipts include, but are not limited to, the following: (a) Receipts credited to the general fund which are subject to KRS 42.450 to 42.495, KRS 278.130 to 278.150, or KRS 350.139; (b) Receipts credited to the road fund which are subject to KRS 175.505, KRS 177.320, KRS 177.365 to 177.369, KRS 177.9771 to 177.979, KRS 186.531, or KRS 186.535; and (c) Receipts credited to a restricted agency fund account in accordance with any applicable statute. (13) "True interest cost" means the bond yield according to issue price without a reduction for related administrative costs, and is the same figure as the arbitrage yield calculation described in the United States Tax Reform Act of 1986. Effective: June 25, 2009 History: Amended 2009 Ky. Acts ch. 78, sec. 27, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 52, effective June 20, 2005. -- Amended 2004 Ky. Acts ch. 78, sec. 3, effective April 6, 2004. -- Amended 2000 Ky. Acts ch. 46, sec. 7, effective July 14, 2000. -- Created 1990 Ky. Acts ch. 30, sec. 1, effective July 13, 1990. Legislative Research Commission Note (6/25/2009). As submitted by the drafter, Proposed Senate Committee Substitute to House Bill 423, which became 2009 Ky. Acts ch. 78, contained references to "KRS 48.120(2)" with "(2)" bracketed and stricken through in subsections (4) and (6) of this statute. However, during the processing of that document, the brackets and striking lines were inadvertently omitted from "(2)." This manifest clerical or typographical error has been corrected during codification by the Reviser of Statutes under the authority of KRS 7.136(1).

KRS 42.410 Duties of Office of Financial Management -- Contents of state debt report

42.410. Duties of Office of Financial Management -- Contents of state debt report (1) The Office of Financial Management established in KRS 42.0201 shall, subject to the provisions of KRS 41.020 to 41.375 and KRS 42.500, have and perform functions and duties as follows: (a) The analysis and management of short and long-term cash flow requirements; (b) The maximization of the return on state investments given the cash flow and liquidity requirements; (c) The coordination and monitoring of cash needs relative to investment and debt activity; (d) The development of a long-term debt plan including criteria for the issuance of debt and an evaluation of how much total state debt is justified; (e) The responsibility for liaison with the General Assembly on all investment and debt matters, including, but not limited to, new bond issues, the status of state debt, and the status of state investments; and (f) All other functions of the cabinet relative to state investment and debt management including, but not limited to, the making of debt service payments, the sale of bonds, and staff assistance to the State Property and Buildings Commission, the Asset Liability Commission, and the State Investment Commission. (2) The Office of Financial Management shall render monthly written reports concerning the performance of each investment to the State Investment Commission. (3) The Office of Financial Management shall review state appropriation-supported bond issues for possible debt service savings through refundings as market conditions warrant. (4) The Office of Financial Management shall submit a report within forty-five (45) days after the publication of the Comprehensive Annual Financial Report to the Legislative Research Commission, for referral to the appropriate committee, indicating the bond issues refunded, original and new interest rates, estimated savings, original and new amortization schedules, issuance costs, debt reserves, disposition of savings, and information on economic, fiscal, and market indicators of the Commonwealth's debt position. (5) The state debt report shall include, but not be limited to, economic, fiscal, and market indicators of debt position as set forth in this section. Indicators shall be presented in tabular and, where appropriate, graphical form. Indicators shall be presented for the fiscal year just ended and, if data is available and except as otherwise noted, for the preceding nine (9) fiscal years. (6) Economic indicators shall include: (a) Nonappropriation-supported debt as a percent of state total personal income; (b) Nonappropriation-supported debt as a percent of total assessed value of property; (c) Nonappropriation-supported debt per capita; (d) Appropriation-supported debt as a percent of state total personal income; (e) Appropriation-supported debt as a percent of total assessed value of property; (f) Appropriation-supported debt per capita; (g) Appropriation-supported debt service as a percent of total state personal income; (h) Appropriation-supported debt service as a percent of total assessed value of property; and (i) Appropriation-supported debt service per capita. (7) Fiscal indicators shall be reported separately and in total for the general fund, the road fund, and each restricted fund account from which debt service is expended. (8) Fiscal indicators shall include: (a) Annual appropriation-supported debt service as a percent of total revenues; and (b) Annual appropriation-supported debt service as a percent of available revenues. (9) Market indicators shall include: (a) The rating assigned by Moody's Investors Services, Inc., or a comparable rating agency, to each nonappropriation-supported bond issued in the fiscal year just ended; (b) The rating assigned by Moody's Investors Services, Inc., or a comparable rating agency, to each appropriation-supported bond issued in the fiscal year just ended; (c) A comparison of the difference between the true interest cost of each nonappropriation-supported bond issued and the value of a selected revenue bond index, as published by the Bond Buyer Weekly, the Delphis Hanover Corporation, or other comparable service on a date relevant to the bond issue; and (d) A comparison of the difference between the true interest cost of each appropriation-supported bond issued and the value of a selected municipal bond index, as published by the Bond Buyer Weekly, the Delphis Hanover Corporation, or other comparable service on a date relevant to the bond issue. (10) The state debt report shall contain a complete description of the sources of data used to prepare the report. This description shall include, but not be limited to, an enumeration, by fund and restricted fund account, of all debt, debt service, and revenue figures; the source and publication date of figures used for state total personal income, total assessed value of property, population, and selected bond indexes. (11) If the sources of data used in a current report differ substantially from those used in the report of the preceding year, the report shall include a detailed explanation of the change. If possible, data presented in the current report for previous years shall be calculated so that, in any one (1) report, indicators for all years are calculated using consistent data categories. The use of any inconsistent data shall be noted and explained. (12) Nothing in this section shall authorize any act inconsistent with the authority granted the State Investment Commission by KRS 42.500 and 42.525. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 16, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 46, sec. 8, effective July 14, 2000. -- Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 4, sec. 42, effective May 30, 1997. -- Amended 1994 Ky. Acts ch. 508, sec. 13, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 295, sec. 3, effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 30, sec. 2, effective July 13, 1990; and ch. 321, sec. 4, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 82, sec. 1, effective July 15, 1988. -- Amended 1982 Ky. Acts ch. 382, sec. 23, effective July 15, 1982. -- Created 1980 Ky. Acts ch. 310, sec. 2, effective July 15, 1980. Legislative Research Commission Note (11/21/2011). The Reviser of Statutes has corrected a manifest clerical or typographical error in the reference to "KRS 42.4201" in subsection (1) of this statute. The correct reference is to KRS 42.0201, which created the Office of Financial Management, and that change has been made under the authority of KRS 7.136.

KRS 42.420 Proposed bond issuance subject to approval prior to issuance

42.420. Proposed bond issuance subject to approval prior to issuance All other provisions of the Kentucky Revised Statutes notwithstanding, all state agencies and all individuals, agencies, authorities, boards, cabinets, commissions, corporations, or other entities of, or representing the Commonwealth with the authority to issue bonds, shall submit all proposed bond issues, bond anticipation notes, or interim debt financing to the Office of Financial Management for review and approval prior to issuance of such debt. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 46, sec. 9, effective July 14, 2000. -- Amended 1990 Ky. Acts ch. 321, sec. 5, effective July 13, 1990. -- Created 1980 Ky. Acts ch. 310, sec. 3, effective July 15, 1980.

KRS 42.425 Department for Facilities and Support Services -- Organization -- Duties

42.425. Department for Facilities and Support Services -- Organization -- Duties (1) (a) The Department for Facilities and Support Services established in the Finance and Administration Cabinet by KRS 42.014 shall be generally responsible for performance of the cabinet's functions and duties as outlined in KRS Chapters 45, 45A, and 56 with relation to the management and administration of the State Capital Construction Program, including without limitation to the generality thereof the procurement of necessary consulting services related to capital construction and building renovation projects, construction services, and supervision of building construction projects, and for the maintenance and operation of the state government's real property management fu nctions and physical plant management functions. (b) The department shall be headed by a commissioner appointed by the secretary of the Finance and Administration Cabinet. (c) The department shall have the primary responsibility for developing and implementing policies applicable to all state agencies to ensure effective planning for and efficient operation of state office buildings, and shall provide appropriate assistance regarding the planning and efficient operation of all state facilities. (d) The department shall be divided for administrative and operational purposes into: 1. The Office of Facility Development and Efficiency, headed by an executive director appointed by the secretary in accordance with KRS 12.050. The office shall analyze and monitor g uaranteed energy savings performance contracts for state agencies. The office shall include: a. The Division of Engineering and Contract Administration; and b. The Division of Facility Efficiency; 2. The Office of Building and Mechanical Services, headed by an executive director appointed by the secretary in accordance with KRS 12.050. The office shall provide building and grounds maintenance, mechanical maintenance, and electronic security services to stat e-owned facilities across the Commonwealth and shall consist of the Division of Building Services and the Division of Mechanical Services; 3. The Division of Real Properties; 4. The Division of Historic Properties; and 5. The Division of Surplus Properties . (e) Each division shall be headed by a division director appointed by the secretary, subject to the approval of the Governor, and responsible to the commissioner of the Department for Facilities and Support Services. The commissioner shall provide for the distribution of the department's work among the divisions within the department. (f) The Division of Surplus Properties shall be responsible for the disposition of all personal property of the state declared surplus. The division shall be the single state agency of the Commonwealth of Kentucky that may receive, warehouse, and distribute surplus property under the Federal Property and Administrative Services Act of 1949, as amended, and any other federal law relating to the disposal of surplus federal property to the states and political subdivisions within the states. The division shall comply with federal laws and regulations in the administration of surplus property received through federal agencies. The division director may promulgate administrative regulations in accordance with KRS Chapter 13A as necessary to comply with minimum standards established by federal laws and regulations governing disposal of surplus federal property and to implement the fee or service charge provisions contained in this paragraph. The division director may establish, charge, and collect from donees of federal surplus property a fair and reasonable fee or service charge to defray the cost of operating the surplus property disposal program. The fees shall be deposited in a tr ust and agency account in the State Treasury to the credit of the Division of Surplus Properties. (2) In conjunction with the responsibilities listed in subsection (1) of this section, the Department for Facilities and Support Services shall have the follo wing duties: (a) Establish policies to ensure efficient utilization of state property by: 1. Requiring the development of guidelines which set forth space standards and criteria for determining the space needs of state agencies, and maintaining an inventory which tracks the agencies' compliance with those standards and criteria; and 2. Requiring certification of compliance, or justification for exceptions, as a criterion for approval of additional space; (b) Establish policies to ensure effective planning f or state facilities by: 1. Developing a long-range plan for the Frankfort area, with priority on reducing dependency on leased space and encouraging the consolidation of agencies' central offices into single locations, and shared offices for agencies with similar functions; and 2. Developing long-range plans for housing state agencies in metropolitan areas, with priority on centralization of services and coordination of service delivery systems; and 3. Encouraging executive branch agencies to expand long -range planning efforts, consistent with the policies of the Capital Planning Advisory Board; and 4. Supporting long-range planning for a statewide information technology infrastructure to more efficiently deliver state government services; (c) Establish priorities to allow least-cost financing of state facilities by: 1. Initiating policies which authorize the state to use innovative methods to lease, purchase, or construct necessary facilities; and 2. Requiring cost analysis to determine the most effective me thod of meeting space needs, with consideration for ongoing operations and initial acquisition; and (d) Implement and maintain a comprehensive real property and facilities management database to include all state facilities and land owned or leased by the executive branch agencies, including any postsecondary institution. All state agencies and postsecondary institutions shall work cooperatively with the Department for Facilities and Support Services to implement and maintain the database. (3) The Department for Facilities and Support Services shall develop plans for the placement of computing and communications equipment in all facilities owned or leased by state government. As part of this planning process, the department shall: (a) Provide adequate site preparation in all state-owned facilities and require the same of those from whom the state leases space as part of the lease agreement; (b) Fund a minimum level of site preparation for computing and communications in each new state-owned facility; and (c) As new office sites are developed, or existing ones undergo renovation, consider the placement of shareable high-cost, high-value facilities at strategic locations throughout the state. These facilities may include video teleconference centers, optical scanning and storage services, and gateways to high-speed communication networks. Effective: June 25, 2009 History: Amended 2009 Ky. Acts ch. 12, sec. 26, effective June 25, 2009. -- Repealed, reenacted, and amended 2005 Ky. Acts ch. 85, sec. 17, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 19, sec. 1, effective July 15, 2002. -- Amended 1998 Ky. Acts ch. 68, sec. 3, effective July 15, 1998; and ch. 87, sec. 1, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 176, sec. 2, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 41, sec. 2, effective July 14, 1992. -- Amended 1982 Ky. Acts ch. 393, sec. 25, effective July 15, 1982. -- Created 1978 Ky. Acts ch. 155, sec. 53, effective June 17, 1978. Formerly codified as KRS 42.027. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, F, 4, (1) at 2083.

KRS 42.430 Plaque commemorating prisoners and missing soldiers in Vietnam War -- Duties of Department of Veterans' Affairs and Department for Facilities and Support Services

42.430. Plaque commemorating prisoners and missing soldiers in Vietnam War -- Duties of Department of Veterans' Affairs and Department for Facilities and Support Services (1) To honor those Kentuckians who proudly served their country during the Vietnam War but remain unaccounted for, the Department of Veterans' Affairs shall update the plaque at the base of the Freedom Tree near the Floral Clock on the grounds of the New Capitol Annex to contain the names of Kentucky Vietnam War POW/MIAs from the most recent official accounting available from the United States Department of Defense. The plaque shall also contain a depiction of the POW/MIA flag of the National League of Families of American Prisoners of War and Missing in Southeast Asia. (2) The Department of Veterans' Affairs shall be responsible for the design of the new plaque required by subsection (1) of this section, and the plaque shall be paid for by the Department of Veterans' Affairs. The Department of Veterans' Affairs may receive appropriations, gifts, grants, federal funds, and any other funds, both public and private, to defray the cost of updating the plaque. (3) The Department for Facilities and Support Services shall be responsible for preparing the base for the updated plaque, and for installing the plaque. The Department for Facilities and Support Services shall be reimbursed the cost of the installation by the Department of Veterans' Affairs. The Department for Facilities and Support Services shall also be responsible for the routine maintenance of the Freedom Tree, the memorial plaque, and the grounds surrounding the tree and plaque. Effective: June 20, 2005 History: Repealed, reenacted, and amended 2005 Ky. Acts ch. 85, sec. 18, effective June 20, 2005. -- Created 2002 Ky. Acts ch. 256, sec. 1, effective July 15, 2002. Formerly codified as KRS 42.0271.

KRS 42.435 Plaque commemorating Kentucky Congressional Medal of Honor recipients -- Duties of Department for Facilities and Support Services

42.435. Plaque commemorating Kentucky Congressional Medal of Honor recipients -- Duties of Department for Facilities and Support Services (1) To honor those who have been awarded a Congressional Medal of Honor, the United States' highest military award for valor in combat, the Department for Facilities and Support Services shall create a plaque to contain the names of each Kentucky Congressional Medal of Honor recipient. (2) The Department for Facilities and Support Services shall be responsible for selecting a location on the first floor of the New State Capitol for the plaque required by subsection (1) of this section. The Department for Facilities and Support Services shall also be responsible for the design, installation, and routine maintenance of the plaque. The plaque shall be updated by the Department for Facilities and Support Services within six (6) months of a Congressional Medal of Honor nomination and approval accredited to the Commonwealth of Kentucky. Effective: June 8, 2011 History: Created 2011 Ky. Acts ch. 6, sec. 1, effective June 8, 2011.

KRS 42.450 Local Government Economic Assistance Fund -- Sources

42.450. Local Government Economic Assistance Fund -- Sources (1) There is hereby established in the State Treasury a fund entitled "Local Government Economic Assistance Fund." The fund may receive state appropriations, gifts, grants, and federal funds and shall be disbursed by the State Treasurer upon the warrant of the secretary of the Finance and Administration Cabinet. Any unallotted or unencumbered balances in the fund shall be invested pursuant to KRS 42.500 and the income earned from the investment shall be prorated for expenditure in coal producing and coal impact counties according to each county's allocable part in the fund. (2) Effective July 1, 1981, an amount equal to one -half (1/2) of the tax collected annually on the sale of minerals, exclusive of coal, shall be transferred from the general fund into this fund. The transfers shall be made quarterly, based upon the revenue estimates prevailing at the time each quarterly transfer is due, except that the last quarterly transfer shall be made after the close of the fiscal year accounting records, and shall be adjusted to provide the balance of the annual transfer required by this subsection. (3) Effective October 1, 2010, the quarterly transfer of funds required by subsection (2) of this section shall be made only after the quarterly installment of the annual amount from the prior calendar year allowed as an incentive to an approved company under KRS 143A.025 and 154.27 -060 has been made. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 115, sec. 1, effective July 15, 2010; and ch. 139, sec. 6, effective July 15, 2010. -- Amended 1992 Ky. Acts ch. 107, sec. 1, effective July 1, 1992. -- Amended 1986 Ky. Acts ch. 464, sec. 8, effective July 15, 1986. -- Created 1980 Ky. Acts ch. 394, sec. 1, effective July 1, 1980. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 115 and 139, which do not appear to be in conflict and have been codified together.

KRS 42.453 Kentucky Coal Fields Endowment Authority -- Creation -- Role and duties - - Project eligibility criteria -- Appropriation -- Tax exemption

42.453. Kentucky Coal Fields Endowment Authority -- Creation -- Role and duties - - Project eligibility criteria -- Appropriation -- Tax exemption (1) The Kentucky Coal Fields Endowment Authority is hereby created as a public corporation, governmental agency, and instrumentality of the Commonwealth, with the perpetual succession and with power in that name to: (a) Contract and be contracted with; (b) Acquire and convey property; (c) Sue and be sued; (d) Have and use a corporate seal; (e) Adopt bylaws; (f) Invest moneys; and (g) Exercise, in addition to the powers and functions specifically stated in this section and KRS 42.454, all of the usual powers of private corporations to the extent that the same are not inconsistent with specifically enumerated powe rs or limitations upon public corporations. (2) (a) It shall be the role and duty of the authority to support through funding efforts to diversify the economy of the coal fields within Kentucky. (b) Projects that may be funded shall be nonrecurring investments in: 1. Economic development; 2. Public infrastructure, water, and wastewater; 3. Public health and safety; and 4. Information technology development and access. (c) Projects shall be selected based on economic impact, job creation, workforce development, community benefit, available partnerships, project readiness, and the ability for a project to be self -sustaining. (3) Seven million five hundred thousand dollars ($7,500,000) of the severance an d processing taxes on coal collected annually shall be transferred from the general fund to the Kentucky Coal Fields Endowment Authority established in this section. The transfers shall be made in quarterly amounts of one million eight hundred seventy-five thousand dollars ($1,875,000) at the same time as the transfers to the local government economic development fund. (4) Moneys transferred to the authority 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 purpose. State moneys appropriated that are not spent at the end of the fiscal year shall not lapse. (5) All property and income of the Kentucky Coal Fields Endowment Authority shall be exempt from all taxes and assessment of any nature. Effective: June 29, 2017 History: Created 2017 Ky. Acts ch. 164, sec. 1, effective June 29, 2017. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055. Legislative Research Commission Note (6/29/2017). The Reviser of Statutes has altered the numbering of subsection (2) of this statute from the way it appeared in 2017 Ky. Acts ch. 164, sec. 1, under the authority of KRS 7.136(1)(c).

KRS 42.454 Membership of Kentucky Coal Fields Endowment Authority -- Terms -- Disclosure of certain ownership interest -- Officers -- Investment options

42.454. Membership of Kentucky Coal Fields Endowment Authority -- Terms -- Disclosure of certain ownership interest -- Officers -- Investment options (1) As used in this section: (a) "Authority" means the Kentucky Coal Fields Endowment Authority; (b) "Board" means the chair, vice chair, and secretary -treasurer of the authority; (c) "Chair" means the chair of the Kentucky Coal Fields Endowment Authority; (d) "Commissioner" means the commissioner of the Department for Local Government; and (e) "Eligible counties" means counties of the Commonwealth of Kentucky participating in the local government economic development fund on June 29, 2017, and those that participated on January 1, 2016. (2) The authority shall consist of seven (7) persons, who shall be selec ted as follows: (a) Two (2) persons, appointed by the Governor, from counties located within the Eastern Coal Field; (b) Two (2) persons, appointed by the Governor, from counties located within the Western Coal Field; (c) Two (2) persons, appointed by the Governor, possessing experience and expertise in finance and investment; and (d) The commissioner or the commissioner's proxy. (3) Two (2) members initially appointed to the author ity shall have a term of one (1) year each, two (2) members initially appointed to the authority shall have a term of two (2) years each, and two (2) members initially appointed to the authority shall have a term of three (3) years each, except that any pe rson 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. (4) The board members are hereby determined to be officers and agents of the Commonwealth of Kentucky and, as such, shall enjoy the same immunities from suit for the performance of their official acts as do other officers of the Commonwealth of Kentucky. (5) If any member or officer of the authority shall be interested in, either directly or indirectly, or shall be an officer of, employee of, or have an ownership interest in any firm or corporation interested directly or indirectly in any project funded by the authority, the interest shall be disclosed clearly in the application and shall be set forth in the minutes of the authority, and the member or officer having an interest therein shall not participate in the application process. (6) Any person appointed to the authority shall be eligible for reappointment. (7) The members of the authority shall elect biennially from the authority's membership the following offices: chair, vice chair, secretary -treasurer, and any assistant secretaries and assistant treasurers the authority deems necessary. The commissioner shall not be eligible to hold any of these offices. (8) A majority of the members of the authority, 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 authority shall be required for the purposes of conducting its business and exercising its powers and for all other purposes. (9) The authority shall prepare bylaws and procedures applicable to the operation of the authority and submit them to the commissioner to be promulgated as administrative regulations in accordance with KRS Chapter 13A. (10) Members of the authority shall be entitled to reimbursement for all necessary expenses in connection with the performance of their duties. (11) The authority shall meet twice annually and at other times upon call of the chair or a majority of the board to discuss and vote on funding for projects in eligible counties permitted to receive moneys from the authority under KRS 42.453(2). (12) The authority may invest any and all of the assets of the fund in: (a) Obligations and contracts for future delivery of obligations backed by the full faith and credit of the United States or a United States government agency, including but not limited to: 1. United States Treasury; 2. Export-Import Bank of the United States; 3. Farmers Home Administration; 4. Government National Mortgage Corporation; and 5. Merchant Marine bonds; (b) Obligations of any corporation of the United States government or government-sponsored enterprise, including but not limited to: 1. Federal Home Loan Mortgage Corporation; 2. Federal Farm Credit Banks: a. Bank for Cooperatives; b. Federal Intermediate Credit Banks; and c. Federal Land Banks; 3. Federal Home Loan Banks; 4. Federal National Mortgage Association; and 5. Tennessee Valley Authority obligations; (c) Collateralized or uncollateralized certificates of deposit, issued by banks rated in one (1) of the three (3) highest categories by a nationally recognized statistical rating organization or other interest -bearing accounts in depository institutions chartered by this state or by the United States, except for shares in mutual savings banks; (d) Bankers acceptances for banks rated in the highest short -term category by a nationally recognized statistical rating organization; (e) Commercial paper rated in the h ighest short-term category by a nationally recognized statistical rating organization; (f) Securities issued by a state or local government, or any instrumentality or agency thereof, in the United States, and rated in one (1) of the three (3) highest long-term categories by a nationally recognized statistical rating organization; (g) United States denominated corporate, Yankee, and Eurodollar securities, excluding corporate stocks, issued by foreign and domestic issuers, including sovereign and supranational governments, rated in one (1) of the three (3) highest long-term categories by a nationally recognized statistical rating organization; (h) Asset-backed securities rated in the highest category by a nationally recognized statistical rating organization; (i) Shares of mutual funds, each of which shall have the following characteristics: 1. The mutual fund shall be an open-end diversified investment company registered under Federal Investment Company Act of 1940, as amended; 2. The management company of the investment company shall have been in operation for at least five (5) years; and 3. The mutual fund shall be rated in the highest category by a nationally recognized statistical rating organization; and (j) State and local delinquent property tax claims which upon purchase shall become certificates of delinquency secured by interests in real property not to exceed twenty-five million dollars ($25,000,000) in the aggregate. For any certificates of delinquency that have been exonerated pursuant to KRS 132.220(5), the Department of Revenue shall offset the loss suffered by the Finance and Administration Cabinet against subsequent local distributions to the affected taxing districts as shown on the certificate of delinquency. Effective: June 29, 2017 History: Created 2017 Ky. Acts ch. 164, sec. 2, effective June 29, 2017. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.455 Local Government Economic Assistance Program -- Grants for priority expenditures -- Administrative regulations -- Public hearings -- Reports -- Directory of coal road system

42.455. Local Government Economic Assistance Program -- Grants for priority expenditures -- Administrative regulations -- Public hearings -- Reports -- Directory of coal road system (1) There is established within the Department for Local Government a Local Government Economic Assistance Program to consist of a system of grants to local governments to improve the environment for new industry and to improve the quality of life for the residents. (2) Grants obtained under this program shall be used for priority expenditures. Thirty percent (30%) of all moneys in the fund shall be spent on the coal haul road system as described in subsection (8) of this section. The remaining seventy percent (70%) of the fund shall be spent on priority categories limited to the following, but in no event shall grants obtained under this program be used for expenses related to administration of government: (a) Public safety, including law enforcement, fire protection, ambulance service, and other related services; (b) Environmental protection, including sewage disposal, sanitation, solid waste, and other related programs; (c) Public transportation, including mass transit systems, streets, and roads; (d) Health; (e) Recreation; (f) Libraries and educational facilities; (g) Social services for the poor, the elderly, and individuals with disabilities; (h) Industrial and economic development; (i) Vocational education; (j) Workforce training; and (k) Secondary wood industry development. (3) The use of entitlement funds for repayment of debt as related to long-term bond issues is permissible as long as the revenue from the bond issues is expended on priority categories. (4) Grants obtained under this program may be used as local portion to secure federal programs as long as program expenditures are in the priority category area. Interest earned on funds received by local units of government shall be considered available for use by the local unit of government in the priority expenditure categories. (5) The Department for Local Government shall be responsible for the promulgation of rules and regulations necessary to implement the grants programs authorized by this section. (6) The Department for Local Government shall submit an annual report to the Governor indicating how the grants were used and an evaluation of the program's effectiveness in improving the economy of the units of government receiving assistance. (7) Prior to a local government's expenditure of any funds it receives under this section, the local government shall allow an opportunity for public input and comments regarding the expenditure of those funds. Before any unit of local government expends any funds it receives under this section, it shall: (a) Provide an opportunity to the public to provide input with regard to the project or projects in a public meeting for which notice has been given under KRS 61.823(2) to (4); (b) Include the topic as a specific item on the public meeting agenda and shall allow any person to speak with regard to any proposed project, any project which he or she feels should be built or done which has not been proposed, priorities for completion of projects, and any other matter related to expenditure of any funds it receives under this section. The local government shall not be bound by the comments and input provided at the meeting but shall give due consideration to them; and (c) Not begin construction on a project until the meeting as provided in this section has been held. This subsection shall not be construed to require a separate meeting for each project. A single meeting encompassing the program, if all projects subsequently undertaken have been identified at the meeting, shall meet the requirements of this subsection. (8) On or before August 15, 1980, and each year thereafter, the Transportation Cabinet shall publish and furnish to the Department for Local Government a directory, including supporting maps and other documents, designating the official state coal road system in coal-impact and coal-producing counties which shall include all public highways, roads, and streets over which quantities of coal, sufficient to significantly affect the condition and state of repair of highways, roads, and streets, have been transported in the immediately preceding fiscal year. The cabinet shall further publish the total county mileage of the official state coal road system and the total ton/miles within each coal-impact and coal-producing county for said preceding fiscal year. (9) Every person shipping or transporting coal, and every carrier for hire or common carrier hauling coal over the public highways, roads, and streets shall file with the Transportation Cabinet such information and at intervals as the cabinet shall designate by regulation duly adopted for the purpose of identifying those highways, roads, and streets comprising the coal haul road system and the quantities of coal transported thereon, in order that the cabinet can accurately calculate total ton/miles within each coal-impact and coal-producing county. (10) The Department of Revenue shall make available to the Transportation Cabinet coal severance and processing tax data for use in verifying and supplementing the information furnished under the provisions of subsection (9) of this section. The information shall be furnished in such a manner as to conceal the identity of individual taxpayers; if the data cannot be furnished without revealing the identity of individual taxpayers, it shall be withheld. Effective: July 14, 2022 History: Amended 2022 Ky. Acts ch. 103, sec. 1, effective July 14, 2022. -- Amended 2010 Ky. Acts ch. 117, sec. 24, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 47, sec. 18, effective June 26, 2007. -- Amended 2005 Ky. Acts ch. 85, sec. 53, effective June 20, 2005. -- Amended 1998 Ky. Acts ch. 69, sec. 10, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 18, sec. 1, effective July 15, 1994; ch. 224, sec. 17, effective July 15, 1994; and ch. 405, sec. 8, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 107, sec. 2, effective July 1, 1992. -- Amended 1990 Ky. Acts ch. 50, sec. 1, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 374, sec. 5, effective July 15, 1986. -- Amended 1982 Ky. Acts ch. 393, sec. 29, effective July 15, 1982. -- Created 1980 Ky. Acts ch. 394, sec. 2, effective July 1, 1980. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (2) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.460 Independent annual audit and certification of compliance -- Exception

42.460. Independent annual audit and certification of compliance -- Exception Except as provided in KRS 91A.040(6)(b), any assistance granted under KRS 42.450 to 42.495 shall include an agreement that an independent annual audit shall be conducted and that the audit report shall include a certification that the funds were expended for the purpose intended. A copy of the audit and certification of compliance shall be forwarded to the Department for Local Government, in the case of assistance granted from the local government economic assistance fund or the local government economic development fund as allocated in KRS 42.4592(1)(a) and (b), or to the Cabinet for Economic Development and the Kentucky Economic Development Finance Authority, in the case of assistance granted from the local government economic development fund, within eighteen (18) months after the end of the fiscal year. Effective: June 27, 2025 History: Amended 2025 Ky. Acts ch. 153, sec. 5, effective June 27, 2025. -- Amended 2019 Ky. Acts ch. 91, sec. 3, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 10, sec. 3, effective July 14, 2018. -- Amended 2010 Ky. Acts ch. 117, sec. 28, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 47, sec. 22, effective June 26, 2007. -- Amended 2006 Ky. Acts ch. 210, sec. 4, effective July 12, 2006. -- Amended 2002 Ky. Acts ch. 338, sec. 46, effective July 15, 2002. -- Amended 2001 Ky. Acts ch. 34, sec. 4, effective June 21, 2001. -- Amended 1998 Ky. Acts ch. 69, sec. 13, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 499, sec. 8, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 107, sec. 9, effective July 1, 1992. -- Amended 1990 Ky. Acts ch. 52, sec. 4. effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 374, sec. 6, effective July 15, 1986. -- Amended 1982 Ky. Acts ch. 393, sec. 30, effective July 15, 1982. -- Created 1980 Ky. Acts ch. 394, sec. 3, effective July 1, 1980. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.465 Approval of assistance

42.465. Approval of assistance No assistance shall be approved in excess of funds received and transferred to the account of any respective unit of government, and no assistance shall be approved for a unit of government failing to submit the certification of compliance required in KRS 42.460. Effective: July 1, 1980 History: Created 1980 Ky. Acts ch. 394, sec. 4, effective July 1, 1980. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.470 Allocation of funds among counties -- Limitation of reduction of funds to counties and their incorporated areas

42.470. Allocation of funds among counties -- Limitation of reduction of funds to counties and their incorporated areas Moneys in the local government economic assistance fund shall be allocated among the counties as follows: (1) Funds allocated under KRS 42.4585: (a) Sixty percent (60%) shall be distributed to each coal producing county on the basis of the ratio of coal severed in each respective county to the coal severed statewide. (b) Thirty percent (30%) shall be distributed to each coal producing county on the basis of per capita income (inverse order), ton miles of resource roads and population, equally weighted. (c) Ten percent (10%) shall be distributed to non -coal producing counties impacted by the transport of coal on the basis of geographic a rea, ton miles of resource roads, and per capita income (inverse order), weighted on a basis of 30/100, 40/100, and 30/100, respectively. The expenditure of such funds shall be limited to the categories of projects set out in KRS 42.455(2)(c). All counties shall receive an annual payment based on the average of total ton miles within the county during the most recent three (3) year period. To qualify for the funds distributed under the provisions of this paragraph, a county must have within its geographic b oundaries in any single year twenty - five hundredths of one percent (0.25%) of the total ton miles within coal impact counties during the most recent three (3) year period. (2) (a) All funds allocated under KRS 42.450(2) shall be distributed among the mineral producing counties on the basis of the tax collected on minerals severed in each respective county. (b) In no event shall the amount of funds distributed to a mineral producing county, and to the incorporated areas within that county under KRS 42.475, i n any given quarter be reduced by greater than fifty percent (50%) as a result of any refund of the tax imposed on the severance and processing of minerals. If a refund of tax occurs and a county's allocated share of the refund amount is greater than fifty percent (50%) of the quarterly distribution due that county and its incorporated areas, the remainder shall carry forward to be offset in successive quarters as necessary until it is satisfied in full. Effective: July 1, 2016 History: Amended 2016 Ky. Acts ch. 110, sec. 4, effective July 1, 2016. -- Amended 1994 Ky. Acts ch. 488, sec. 4, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 107, sec. 3, effective July 1, 1992. -- Created 1980 Ky. Acts ch. 394, sec. 5, effective July 1, 1980. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (1) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.472 Use of tar sands moneys by counties

42.472. Use of tar sands moneys by counties Moneys from tar sands distributed to counties under KRS 42.470(2) shall be used for economic development purposes as approved by the Department for Local Government. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 117, sec. 29, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 47, sec. 23, effective June 26, 2007. -- Created 2002 Ky. Acts ch. 367, sec. 3, effective July 15, 2002. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.475 Allocation of funds to incorporated areas -- Allocation to counties

42.475. Allocation of funds to incorporated areas -- Allocation to counties (1) Except as provided in subsection (2) of this section, ten percent (10%) of the funds allocated to each county under the provisions of KRS 42.470 shall be allotted to the incorporated areas within the county based on the ratio that the population of each incorporated area bears to the total population of all the incorporated areas within the county; except that incorporated areas shall not be eligible for funds allocated to counties under the provisions of KRS 42.490 and 1980 Acts, ch. 394, sec. 11. (2) If the amount of funds to be allotted to an incorporated area under subsection (1) of this section is less than twenty-five dollars ($25) in any given quarter, then the allotment shall not be made and the applicable funds shall instead be distributed to the county to which they were allocated under KRS 42.470. Effective: July 1, 2016 History: Amended 2016 Ky. Acts ch. 110, sec. 5, effective July 1, 2016. -- Created 1980 Ky. Acts ch. 394, sec. 6, effective July 1, 1980. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.480 Estimate of funds to be allocated -- Remittance of funds

42.480. Estimate of funds to be allocated -- Remittance of funds (1) On or before July 1, 1992, and each year thereafter, the commissioner of the Department for Local Government shall provide the Cabinet for Economic Development, the Kentucky Economic Development Finance Authority, and the legislative body of each local government eligible for funds under the provisions of KRS 42.450 to 42.495, an estimate of the funds that will be allocated to the local government for fiscal year 1992-93, and each year thereafter. (2) On or before the fifteenth of the first month of a quart er, the commissioner of the Department for Local Government shall cause to be remitted to the legislative bodies of the local governments eligible for funds from the local government economic assistance fund, the funds allocated to the respective local gov ernments for the prior quarter; except that the remittance for the last quarter of a fiscal year shall be made after the close of the fiscal year accounting records and shall be adjusted to provide the balance of the annual allocation due the local governm ent. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 117, sec. 30, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 47, sec. 24, effective June 26, 2007. -- Amended 2002 Ky. Acts ch. 338, sec. 47, effective July 15, 2002. -- Amended 2001 Ky. Acts ch. 34, sec. 5, effective June 21, 2001. -- Amended 1998 Ky. Acts ch. 69, sec. 14, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 499, sec. 9, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 107, sec. 10, effective July 1, 1992. -- Amended 1986 Ky. Acts ch. 374, sec. 7, effective July 15, 1986. -- Created 1980 Ky. Acts ch. 394, sec. 7, effective July 1, 1980. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.485 Funds not to lapse

42.485. Funds not to lapse Moneys in the local government economic assistance fund are hereby appropriated, and shall be treated as a continuing appropriation and shall not lapse at the end of the fiscal year. Effective: July 1, 1980 History: Created 1980 Ky. Acts ch. 394, sec. 8, effective July 1, 1980. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.490 Transfer of fund balances of county

42.490. Transfer of fund balances of county All unencumbered fund balances in each county's account established under KRS 42.300, and all unencumbered fund balances in each county's account established under KRS 42.330, and all unencumbered fund balances in each county's account established under KRS 177.970, shall be transferred to that county's account established to implement the provisions of KRS 42.450 to 42.495. Funds transferred may be used for those purposes authorized by KRS 42.450 to 42.495. Effective: July 1, 1980 History: Created 1980 Ky. Acts ch. 394, sec. 9, effective July 1, 1980. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.495 Effect of reduction of local general tax effort

42.495. Effect of reduction of local general tax effort (1) If a qualifying local government unit reduces its general tax effort for any fiscal year, below the level of fiscal year 1991-92, that governmental unit shall forfeit funds that would otherwise be available under the provisions of KRS 42.450 to 42.495 on a dollar-for-dollar basis. (2) For purposes of this section, "general tax effort" shall mean the total revenues raised in fiscal year 1991-92 from the levy of all of the taxing district's taxes in fiscal year 1991-92. Taxes based upon the 1991 assessment of property shall be considered to be taxes levied and collected for fiscal year 1991-92. Effective: July 1, 1992 History: Amended 1992 Ky. Acts ch. 107, sec. 11, effective July 1, 1992. -- Created 1980 Ky. Acts ch. 394, sec. 10, effective July 1, 1980.

KRS 42.500 State Investment Commission -- Powers

42.500. State Investment Commission -- Powers (1) There shall be a State Investment Commission composed of: (a) The State Treasurer who shall be chairman; (b) The secretary of the Finance and Administration Cabinet; (c) The state controller; and (d) Two (2) persons appointed by the Governor. (2) The individuals appointed by the Governor shall be selected as follows: one (1) to be selected from a list of five (5) submitted to the Governor by the Kentucky Bankers Association, and one (1) to be selected from a list of five (5) submitted to the Governor by the Independent Community Bankers Association. (3) The State Investment Commission shall meet at least quarterly to review investment performance and conduct other business. This provision shall not prohibit the commission from meeting more frequently as the need arises. (4) The State Treasurer and secretary of the Finance and Administration Cabinet shall each have the authority to designate, by an instrument in writing over his or her signature and filed with the secretary of the commission as a public record of the commission, an alternate with full authority to: (a) Attend in the member's absence, for any reason, any properly convened meeting of the commission; and (b) Participate in the consideration of, and vote upon, business and transactions of the commission. Each alternate shall be a person on the staff of the appointing member or in the employ of the appointing member's state agency or department. (5) Any designation of an alternate may, at the appointing member's direction: (a) Be limited upon the face of the appointing instrument to be effective for only a specific meeting or specified business; (b) Be shown on the face of the appointing instrument to be a continuing designation, for a period of no more than four (4) years, whenever the appointing member is unable to attend; or (c) Be revoked at any time by the appointing member in an instrument in writing, over his or her signature, filed with the secretary of the commission as a public record of the commission. (6) Any person transacting business with, or materially affected by, the business of the commission may accept and rely upon a joint certificate of the secretary of the commission and any member of the commission concerning the designation of any alternate, the time and scope of the designation, and, if it is of a continuing nature, whether and when the designation has been revoked. The joint certificate shall be made and delivered to the person requesting it within a reasonable time after it has been requested in writing, with acceptable identification of the business or transaction to which it refers and the requesting person's interest in the business or transaction. (7) Any three (3) persons who are members of the commission or alternates authorized under subsections (4) and (5) of this section shall constitute a quorum and may, by majority vote, transact any business of the commission. Any three (3) members of the commission may call a meeting. (8) The provisions of KRS 61.070 shall not apply to members of the commission. (9) The commission shall have authority and may, if in its opinion the cash in the State Treasury is in excess of the amount required to meet current expenditures, invest any and all of the excess cash in: (a) Obligations and contracts for future delivery of obligations backed by the full faith and credit of the United States or a United States government agency, including but not limited to: 1. United States Treasury; 2. Export-Import Bank of the United States; 3. Farmers Home Administration; 4. Government National Mortgage Corporation; and 5. Merchant Marine bonds; (b) Obligations of any corporation of the United States government or government-sponsored enterprise, including but not limited to: 1. Federal Home Loan Mortgage Corporation; 2. Federal Farm Credit Banks: a. Bank for Cooperatives; b. Federal Intermediate Credit Banks; and c. Federal Land Banks; 3. Federal Home Loan Banks; 4. Federal National Mortgage Association; and 5. Tennessee Valley Authority obligations; (c) Collateralized or uncollateralized certificates of deposit, issued by banks rated in one (1) of the three (3) highest categories by a nationally recognized statistical rating organization or other interest-bearing accounts in depository institutions chartered by this state or by the United States, except for shares in mutual savings banks; (d) Bankers acceptances for banks rated in the highest short-term category by a nationally recognized statistical rating organization; (e) Commercial paper rated in the highest short-term category by a nationally recognized statistical rating organization; (f) Securities issued by a state or local government, or any instrumentality or agency thereof, in the United States, and rated in one (1) of the three (3) highest long-term categories by a nationally recognized statistical rating organization; (g) United States denominated corporate, Yankee, and Eurodollar securities, excluding corporate stocks, issued by foreign and domestic issuers, including sovereign and supranational governments, rated in one (1) of the three (3) highest long-term categories by a nationally recognized statistical rating organization; (h) Asset-backed securities rated in the highest category by a nationally recognized statistical rating organization; (i) Shares of mutual funds, each of which shall have the following characteristics: 1. The mutual fund shall be an open-end diversified investment company registered under Federal Investment Company Act of 1940, as amended; 2. The management company of the investment company shall have been in operation for at least five (5) years; 3. The mutual fund shall be rated in the highest category by a nationally recognized statistical rating organization; 4. All of the securities in the mutual fund shall be eligible investments pursuant to this section; and (j) State and local delinquent property tax claims which upon purchase shall become certificates of delinquency secured by interests in real property not to exceed twenty-five million dollars ($25,000,000) in the aggregate. For any certificates of delinquency that have been exonerated pursuant to KRS 132.220(5), the Department of Revenue shall offset the loss suffered by the Finance and Administration Cabinet against subsequent local distributions to the affected taxing districts as shown on the certificate of delinquency. (10) The State Investment Commission shall promulgate administrative regulations for the investment and reinvestment of state funds in shares of mutual funds, and the regulations shall specify: (a) The long and short term goals of any investment; (b) The specification of moneys to be invested; (c) The amount of funds which may be invested per instrument; (d) The qualifications of instruments; and (e) The acceptable maturity of investments. (11) Any investment in obligations and securities pursuant to subsection (9) of this section shall satisfy this section if these obligations are subject to repurchase agreements, provided that delivery of these obligations is taken either directly or through an authorized custodian. (12) (a) Income earned from investments made pursuant to this section shall accrue to the credit of the investment income account of the general fund, except that interest from investments of excess cash in the road fund shall be credited to the surplus account of the road fund and interest from investments of excess cash in the game and fish fund shall be credited to the game and fish fund, interest earned from investments of imprest cash funds and funds in the trust and revolving fund for each state public university shall be credited to the appropriate institutional account, and interest earned from the investment of funds accumulated solely by means of contributions and gifts shall not be diverted to any purpose other than that stipulated by the donor, when the donor shall have designated the use to which the interest shall be placed. (b) Except as otherwise provided by law, or by the obligations and covenants contained in resolutions and trust indentures adopted or entered into for state bond issues, interest earned from the investment of moneys appropriated to the capital construction accounts, trust and agency accounts, and trust and agency revolving accounts shall accrue to the capital construction investment income account. (c) If there is a revenue shortfall, as defined in KRS 48.010, of five percent (5%) or less, the secretary of the Finance and Administration Cabinet, upon the recommendation of the state budget director, may direct the transfer of excess unappropriated capital construction investment income to the general fund investment income account. The amount of the transfer shall not exceed the amount of the shortfall in general fund revenues. (d) If the capital construction investment income is less than that amount appropriated by the General Assembly, the secretary of the Finance and Administration Cabinet may, upon recommendation of the state budget director, direct the transfer of excess unappropriated general fund investment income to the capital construction investment income account. The transfer of general fund investment income revenues to the capital construction investment income account shall be made only when the actual general fund revenues are in excess of the enacted estimates under KRS 48.120 and shall be limited to the amount of the excess general fund revenues. The amount of the transfer shall not exceed the amount of the shortfall in the capital construction fund revenues. (13) The authority granted by this section to the State Investment Commission shall not extend to any funds that are specifically provided by law to be invested by some other officer or agency of the state government. (14) The authority granted by this section to the State Investment Commission shall only be exercised pursuant to the administrative regulations mandated by KRS 42.525. (15) Each member of the State Investment Commission shall post bond for his or her acts or omissions as a member thereof identical in amount and kind to that posted by the State Treasurer. Effective: June 29, 2021 History: Amended 2021 Ky. Acts ch. 159, sec. 1, effective June 29, 2021. -- Amended 2013 Ky. Acts ch. 60, sec. 1, effective June 25, 2013. -- Amended 2009 Ky. Acts ch. 78, sec. 28, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 54, effective June 20, 2005. -- Amended 1998 Ky. Acts ch. 209, sec. 19, effective March 30, 1998. -- Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 4, sec. 36, effective May 30, 1997. -- Amended 1996 Ky. Acts ch. 101, sec. 1, effective July 15, 1996. -- Amended 1990 Ky. Acts ch. 277, sec. 1, effective July 13, 1990; ch. 291, sec. 1, effective July 13, 1990; and ch. 294, sec. 1, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 368, sec. 2, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 408, sec. 1, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 324, sec. 60, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 300, sec. 5, effective July 15, 1982; repealed, reenacted and amended as KRS 42.500, ch. 382, sec. 6, effective July 15, 1982; and amended ch. 450, sec. 58, effective July 1, 1983. -- Amended 1980 Ky. Acts ch. 295, sec. 11, effective July 15, 1980; and ch. 347, sec. 1, effective January 1, 1982. -- Amended 1954 Ky. Acts ch. 245, sec. 1, effective June 17, 1954. -- Created 1952 Ky. Acts ch. 86, sec. 1. Formerly codified as KRS 41.380.

KRS 42.505 Authority of State Investment Commission

42.505. Authority of State Investment Commission Subject to the limitations of KRS Chapters 41 and 42 the State Investment Commission is authorized to make purchases, sales, exchanges, investments, and reinvestments, of any of the securities and investments in which any of the state funds shall have been invested, as well as the proceeds of said investments and any money belonging to said funds. Effective: July 15, 1982 History: Created 1982 Ky. Acts ch. 382, sec. 7, effective July 15, 1982.

KRS 42.520 Priority for assignment of public funds

42.520. Priority for assignment of public funds (1) The State Investment Commission shall assign public funds to public depositories by priority based on evidence that the public depository serves the convenience and economic development needs of the communities in which they are chartered to do business. The convenience and needs of communities shall include the need for credit services as well as deposit services. (2) The State Investment Commission shall only assign priorities to public depositories on the basis of compliance with regulations promulgated pursuant to KRS Chapter 13A. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 208, sec. 2, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 276, sec. 8, effective July 15, 1994. -- Created 1982 Ky. Acts ch. 382, sec. 10, effective July 15, 1982.

KRS 42.525 Authority to promulgate administrative regulations

42.525. Authority to promulgate administrative regulations (1) The State Investment Commission shall promulgate administrative regulations for the investment and reinvestment of state funds and the acquisition, retention, management, and disposition of investments. (2) The regulations shall specify: (a) The long and short term goals of any investment; (b) The specification of moneys to be invested; (c) The amount of funds which may be invested per instrument; (d) The qualifications of instruments; (e) The acceptable maturity of investments; (f) The investment procedure with respect to in-state and out-of-state depositories provided that funds available for investment shall be offered first to qualified Kentucky depositories consistent with the investment guidelines; and (g) The distribution method of funds among types of institutions. Effective: May 30, 1997 History: Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 4, sec. 37, effective May 30, 1997. -- Created 1982 Ky. Acts ch. 382, sec. 11, effective July 15, 1982.

KRS 42.530 Quarterly reports of commission

42.530. Quarterly reports of commission The State Investment Commission shall render quarterly written reports concerning the performance of each investment to the Legislative Research Commission. The reports may contain recommendations of the commission for legislative or other action to effectuate the purposes and policies of this chapter. Effective: July 15, 1982 History: Created 1982 Ky. Acts ch. 382, sec. 12, effective July 15, 1982.

KRS 42.535 Annual reports of agencies holding funds

42.535. Annual reports of agencies holding funds Each agency holding funds listed in this section shall make a report according to generally accepted accounting principles of all money received and disbursed by the listed funds during each fiscal year, on or before the fifteenth of July, showing the receipts, expenditures, depositories, rates of interest paid by depositories, investments, and rates of return on investments by each listed fund to the Office of the Controller. The funds which shall be reported are: (1) Tobacco research trust fund; (2) The uninsured employers' fund; (3) The administrative fund created by KRS 342.440, also known as the workers' compensation maintenance fund; (4) The special claim fund; and (5) The common school fund. Effective: July 15, 1998 History: Amended 1998 Ky. Acts ch. 85, sec. 2, effective July 15, 1998. -- Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 4, sec. 38, effective May 30, 1997. -- Created 1982 Ky. Acts ch. 382, sec. 13, effective July 15, 1982. Legislative Research Commission Note(5/30/97). KRS 342.440, cited in this statute, was repealed by 1987 (1st Extra. Sess.) Ky Acts ch. 1, sec. 72(2), effective January 4, 1988.

KRS 42.540 Annual reports of nonprofit fiduciary holding funds for benefit of state organization

42.540. Annual reports of nonprofit fiduciary holding funds for benefit of state organization Notwithstanding KRS 41.290, every nonprofit fiduciary holding funds for the benefit of any form of state organization, including, but not limited to, Eastern Kentucky University, Kentucky State University, Morehead State University, Murray State University, Northern Kentucky University, University of Kentucky, University of Louisville, Western Kentucky University, Kentucky Community and Technical College System, and the State Fair Board shall make a report according to generally accepted accounting principles of all money received and disbursed during each fiscal year, on or before the fifteenth of July, showing receipts, expenditures, depositories, rates of interest paid by depositories, investments, and rates of return in investments to the Office of the Controller. These fiduciaries include, but are not limited to, Eastern Kentucky University Foundation; Kentucky State University Foundation, Inc.; Morehead State University Foundation, Inc.; Morehead Alumni Foundation, Inc.; Eagle Athletic Foundation, Inc.; Murray State University Foundation; Northern Kentucky University Foundation, Inc.; University of Kentucky Research Foundation; University of Kentucky Athletics Association; the Fund for the Advancement of Education and Research in the University of Kentucky Medical Center; Health Care Collection Service, Inc.; McDowell Cancer Network, Inc.; University of Kentucky-Business Partnership Foundation, Inc.; Kentucky Medical Services Foundation, Inc.; University of Louisville Foundation, Inc.; University of Louisville Hospital, Inc.; University of Louisville Institute of Industrial Research, Inc.; University of Louisville Medical School Fund, Inc.; the College Heights Foundation; KFEC Research and Development Foundation, Inc.; Kentucky Export Resources Authority, Inc.; and all similar nonprofit fiduciaries for the benefit of any form of state organization and their successors. Effective: May 30, 1997 History: Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 32, effective May 30, 1997; and ch. 4, sec. 39, effective May 30, 1997. -- Amended 1990 Ky. Acts ch. 325, sec. 22, effective July 13, 1990. -- Created 1982 Ky. Acts ch. 382, sec. 14, effective July 15, 1982. Legislative Research Commission Note (7/28/97). This section was amended by 1997 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 32, and ch. 4, sec. 39, which do not appear to be in conflict and have been compiled together under KRS 7.136(3).

KRS 42.545 Annual report of each agency authorized to issue bonds

42.545. Annual report of each agency authorized to issue bonds Each agency authorized to issue bonds listed in this section shall make a report according to generally accepted accounting principles of all money received and disbursed during each fiscal year, on or before the fifteenth of July, showing the receipts, expenditures, trustees, depositories, rates of interest paid by depositories, investments, and rates of return on investments by each agency to the Office of the Controller. The agencies required to report under this section are Eastern Kentucky University; Kentucky State University; Morehead State University; Murray State University; Northern Kentucky University; University of Kentucky; University of Louisville; Western Kentucky University; Kentucky Community and Technical College System; Kentucky Housing Corporation; Kentucky Higher Education Student Loan Corporation; Kentucky School Building Authority; the Turnpike Authority of Kentucky; the State Property and Buildings Commission; Churchill Downs Authority; State Fair Board; Department of Fish and Wildlife Resources; Water Resources Authority of Kentucky; and any other agency or instrumentality authorized to issue bonds. Effective: July 15, 2020 History: Amended 2020 Ky. Acts ch. 36, sec. 1, effective July 15, 2020. -- Amended 2005 Ky. Acts ch. 85, sec. 55, effective June 20, 2005. -- Amended 1998 Ky. Acts ch. 83, sec. 5, effective July 15, 1998. -- Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 33, effective May 30, 1997; and ch. 4, sec. 40, effective May 30, 1997. -- Created 1982 Ky. Acts ch. 382, sec. 15, effective July 15, 1982.

KRS 42.550 Annual reports of school funds from Department of Education

42.550. Annual reports of school funds from Department of Education The Department of Education shall make a report according to generally accepted accounting principles of all money received and disbursed from the common school fund and the Support Education Excellence in Kentucky (SEEK) Program to local school districts showing their receipts, expenditures, depositories, rates of interest paid by depositories, investments, and rates of return on investments by each fund to the Office of the Controller for each fiscal year on or before the fifteenth of July. Effective: May 30, 1997 History: Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 4, sec. 41, effective May 30, 1997. -- Amended 1990 Ky. Acts ch. 476, Pt. IV, sec. 117, effective July 13, 1990. -- Created 1982 Ky. Acts ch. 382, sec. 20, effective July 15, 1982.

KRS 42.555 Investment commission as Sinking Fund Commission -- Sale of stock in Bank of Kentucky

42.555. Investment commission as Sinking Fund Commission -- Sale of stock in Bank of Kentucky (1) For the purposes of Section 185 of the Constitution of Kentucky, the State Investment Commission shall constitute the Sinking Fund Commission. (2) The State Investment Commission may sell the stock in the Bank of Kentucky referred to in Sections 184 and 185 of the Constitution of Kentucky. The State Investment Commission may sell and reinvest the proceeds of the sale of the stock in the Bank of Kentucky from time to time. Effective: Created 1982 Ky. Acts ch. 382, sec. 21, effective July 15, 1982.

KRS 42.560 Energy assistance trust fund -- Allocation of interest

42.560. Energy assistance trust fund -- Allocation of interest (1) There is established in the Treasury of the Commonwealth a trust fund to be known as the "Energy Assistance Trust Fund" referred to in KRS 42.560 to 42.572 as the "trust fund." (2) The trust fund shall consist of any oil overcharge refunds which become available to the state as a result of litigation for alleged overcharges for crude oil or refined petroleum products sold during the period of time in which federal price controls on such products were in effect, any moneys as may be appropriated by the general fund, and any investment interest earned on the fund. (3) The fund shall be managed by the state Office of Financial Management within the Office of the Controller and all moneys in excess of the amount to be disbursed in a given fiscal year shall be invested to maximize returns. The principal and any interest earnings of the trust fund shall at no time lapse to the general fund. (4) The accumulated interest shall be made available as follows: (a) Fifty percent (50%) to the Finance and Administration Cabinet to be allocated to weatherization services to low-income households; and (b) Fifty percent (50%) to the Cabinet for Health and Family Services to be allocated to low-income energy assistance services. The funds to be available for expenditure in any fiscal year shall be appropriated by the General Assembly from the trust fund as provided in KRS 48.300. Effective: July 12, 2012 History: Amended 2012 Ky. Acts ch. 69, sec. 5, effective July 12, 2012; and ch. 158, sec. 8, effective July 12, 2012. -- Amended 2005 Ky. Acts ch. 85, sec. 56, effective June 20, 2005; and ch. 99, sec. 102, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 46, sec. 10, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 426, sec. 81, effective July 15, 1998. -- Amended 1990 Ky. Acts ch. 321, sec. 6, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 10, sec. 1, effective February 19, 1988. -- Created 1986 Ky. Acts ch. 262, sec. 1, effective April 3, 1986. Legislative Research Commission Note (7/12/2012). This statute was amended by 2012 Ky. Acts chs. 69 and 158, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (7/12/2012). 2012 Ky. Acts ch. 158, sec. 82, provides: "The Finance and Administration Cabinet, which is assigned the functions, duties, and responsibilities associated with the administration of the weatherization program operated in accordance with the requirements for funding received from the United States Department of Energy and any subordinate entities in Executive Order 2011-353 and this Act, is hereby authorized to engage and contract with the Kentucky Housing Corporation to operate and manage the weatherization program if the cabinet deems it to be in the best interest of the weatherization program and the Commonwealth of Kentucky."

KRS 42.566 Energy assistance trust fund -- Allocation of appropriations

42.566. Energy assistance trust fund -- Allocation of appropriations The funds appropriated by the General Assembly from the energy assistance trust fund shall be expended in a manner consistent with the judgments and settlements, as amended, which produced the oil overcharge refunds, as follows: (1) The sum of five hundred thousand dollars ($500,000) or eight percent (8%) of the amount appropriated each fiscal year, whichever is greater, shall be distributed annually to the Energy and Environment Cabinet for expenditure in the Institutional Conservation Program established pursuant to Part G of Title III of the Energy Policy and Conservation Act, 42 U.S.C. secs. 6371 et seq. The source of these funds shall be deemed to be the trust funds produced by the Stripper Well litigation, In Re Department of Energy Stripper Well Exemption Litigation, D.C. Kan., M.D.L. No. 378, and the Diamond Shamrock litigation, Diamond Shamrock Refining Co. v. Standard Oil of Indiana, D.C. Ind., Civil Action No. C-84-1432, and interest accumulated thereon; and (2) The balance of the trust funds appropriated for expenditure in any fiscal year shall be distributed as follows: (a) Forty percent (40%) to the Finance and Administration Cabinet to be allocated to the cabinet's program for weatherization of low-income households established pursuant to Part A of the Energy Conservation and Existing Buildings Act of 1976, 42 U.S.C. secs. 6861 et seq.; and (b) Sixty percent (60%) to the Cabinet for Health and Family Services to be allocated to the cabinet's program for energy crisis or prevention services for low-income households established pursuant to the Low-Income Home Energy Assistance Act of 1981, 42 U.S.C. secs. 8621 et seq. Effective: July 12, 2012 History: Amended 2012 Ky. Acts ch. 69, sec. 6, effective July 12, 2012; and ch. 158, sec. 9, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 33, effective July 15, 2010. -- Amended 2005 Ky. Acts ch. 99, sec. 103, effective June 20, 2005. -- Amended 1998 Ky. Acts ch. 426, sec. 82, effective July 15, 1998. -- Amended 1990 Ky. Acts ch. 325, sec. 23, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 10, sec. 2, effective February 19, 1988. -- Created 1986 Ky. Acts ch. 262, sec. 4, effective April 3, 1986. Legislative Research Commission Note (7/12/2012). This statute was amended by 2012 Ky. Acts chs. 69 and 158, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (7/12/2012). 2012 Ky. Acts ch. 158, sec. 82, provides: "The Finance and Administration Cabinet, which is assigned the functions, duties, and responsibilities associated with the administration of the weatherization program operated in accordance with the requirements for funding received from the United States Department of Energy and any subordinate entities in Executive Order 2011-353 and this Act, is hereby authorized to engage and contract with the Kentucky Housing Corporation to operate and manage the weatherization program if the cabinet deems it to be in the best interest of the weatherization program and the Commonwealth of Kentucky." Legislative Research Commission Note (6/8/2011). The Reviser of Statutes has corrected the internal numbering of subdivisions of this statute from the way they appeared in 2010 Ky. Acts ch. 24, sec. 33, under the authority of KRS 7.136.

KRS 42.572 Annual status report

42.572. Annual status report The State Office of Financial Management shall prepare and submit to the Legislative Research Commission a report by July 30 of each year on the operational and financial status of the fund. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 46, sec. 11, effective July 14, 2000. -- Amended 1990 Ky. Acts ch. 321, sec. 7, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 10, sec. 3, effective February 19, 1988. -- Created 1986 Ky. Acts ch. 262, sec. 7, effective April 3, 1986.

KRS 42.580 Definitions for KRS 42.580 to 42.588

42.580. Definitions for KRS 42.580 to 42.588 As used in KRS 42.580 to 42.588: (1) "Cabinet" means the Finance and Administration Cabinet; (2) "Demand-side management" has the same meaning as in KRS 278.010; (3) "Energy audit" has the same meaning as in KRS 56.770; (4) "Energy-efficient heating, cooling, ventilation, or hot water system" has the same meaning as in KRS 141.435; (5) "Energy-efficient interior lighting system" has the same meaning as in KRS 141.435; (6) "Energy-efficient windows and storm doors" has the same meaning as in KRS 141.435; (7) "Engineered demand-side management project" means a project undertaken to reduce the amount of energy consumed in an existing structure, including but not limited to: (a) Energy-efficient heating, cooling, ventilation, or hot water systems; (b) Energy-efficient interior lighting systems; (c) Energy-efficient windows and storm doors; (d) Qualified energy property; (e) Upgraded insulation; (f) Solar water-heating systems; and (g) Any other energy conservation measures that will reduce energy costs, including those that will use solar power, either active or passive; (8) "Private sector building" means a building owned by a private retail, commercial, or industrial business; (9) "Public sector building" means a building owned by the Commonwealth of Kentucky, any public university of the Commonwealth, or any public community college of the Commonwealth; (10) "Qualified energy property" has the same meaning as in KRS 141.435; (11) "Simple payback period" has the same meaning as in KRS 56.770; (12) "Solar water-heating system" has the same meaning as in KRS 141.435; and (13) "Upgraded insulation" has the same meaning as in KRS 141.435. Effective: July 15, 2014 History: Amended 2014 Ky. Acts ch. 65, sec. 5, effective July 15, 2014. -- Repealed and reenacted 2010 Ky. Acts ch. 5, sec. 20, effective February 25, 2010. -- Created 2008 Ky. Acts ch. 139, sec. 21, effective July 15, 2008. 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."

KRS 42.582 Kentucky Bluegrass Turns Green Program -- Purposes -- Funding

42.582. Kentucky Bluegrass Turns Green Program -- Purposes -- Funding (1) There is established in the cabinet the Kentucky Bluegrass Turns Green Program for the purposes of: (a) Concentrating on energy demand-side management in private and public sector buildings; (b) Generating savings to taxpayers and the Commonwealth; (c) Allowing for continued economic development; (d) More efficiently using the Commonwealth's precious natural resources; and (e) Establishing the Commonwealth as a benchmark state for demand-side management efforts. (2) The Kentucky Blue Grass Turns Green Program shall consist of the bluegrass turns green public sector grant fund established in KRS 42.584 and the bluegrass turns green private sector loan fund established in KRS 42.586. Effective: February 25, 2010 History: Repealed and reenacted 2010 Ky. Acts ch. 5, sec. 21, effective February 25, 2010. -- Created 2008 Ky. Acts ch. 139, sec. 22, effective July 15, 2008. 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."

KRS 42.584 Bluegrass turns green public sector grant fund -- Purpose -- Eligibility -- Payback period -- Administrative regulations

42.584. Bluegrass turns green public sector grant fund -- Purpose -- Eligibility -- Payback period -- Administrative regulations (1) (a) The bluegrass turns green public sector grant fund is created as a trust and agency fund. The fund shall be administered by the cabinet and shall consist of: 1. Proceeds from grants, contributions, appropriations, or other moneys made available for purposes of the trust and agency fund; and 2. Funds derived from the bond issuance authorized under 2008 Ky. Acts ch. 139, sec. 27. (b) Notwithstanding KRS 45.229, fund amounts not expended at the close of the fiscal year shall not lapse but shall be carried forward to the next fiscal year. Any interest earnings of the trust and agency fund shall become part of the trust and agency fund and shall not lapse. (2) Trust and agency fund moneys shall be used by the cabinet to provide grants to the public sector for engineered demand-side management projects in public sector buildings. The cabinet shall not award more than one (1) grant per public university campus or public community college campus within an eighteen (18) month period. (3) To be eligible for a grant under this section, the cost of a proposed engineered demand-side management project shall be at least five thousand dollars ($5,000) and shall not exceed one million five hundred thousand dollars ($1,500,000) per project. (4) Beginning July 1, 2009, and ending June 30, 2013, the simple payback period for an approved engineered demand-side management project shall be no more than five (5) years. Beginning July 1, 2013, the cabinet may consider a simple payback period of no more than twelve (12) years. (5) Moneys in the grant fund are hereby appropriated for the purposes set forth in subsection (2) of this section. (6) The cabinet shall not approve an applicant for a grant under this section, unless the applicant: (a) Agrees to undergo and pay for an energy audit to establish a baseline of energy consumption; and (b) Meets all the requirements established in this section and any regulations promulgated thereunder. Effective: February 25, 2010 History: Repealed and reenacted 2010 Ky. Acts ch. 5, sec. 22, effective February 25, 2010. -- Created 2008 Ky. Acts ch. 139, sec. 23, effective July 15, 2008. 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."

KRS 42.586 Bluegrass turns green private sector loan fund -- Purpose -- Eligibility -- Payback period -- Interest rate -- Administrative regulations

42.586. Bluegrass turns green private sector loan fund -- Purpose -- Eligibility -- Payback period -- Interest rate -- Administrative regulations (1) (a) The bluegrass turns green private sector loan fund is created as a separate revolving fund. The fund shall be administered by the cabinet and shall consist of: 1. Proceeds from grants, contributions, appropriations, or other moneys made available for purposes of the revolving fund; 2. Loan repayments made by the private sector; 3. Funds derived from the bond issuance authorized under 2008 Ky. Acts ch. 139, sec. 28. (b) Notwithstanding KRS 45.229, fund amounts not expended at the close of a fiscal year shall not lapse but shall be carried forward to the next fiscal year. Any interest earnings of the fund shall become part of the revolving fund and shall not lapse. (2) Revolving fund moneys shall be used by the cabinet to provide low-interest loans to the private sector for engineered demand-side management projects in private sector buildings. The cabinet shall not have more than one (1) loan outstanding at a time to any private retail, commercial, or industrial business. (3) To be eligible for a loan under this section, the cost of a proposed engineered demand-side management project shall be at least five thousand dollars ($5,000) and shall not exceed one million five hundred thousand dollars ($1,500,000) per project. (4) Beginning July 1, 2009, and ending June 30, 2013, the simple payback period for an approved engineered demand-side management project shall be no more than five (5) years. Beginning July 1, 2013, the cabinet may consider a simple payback period of no more than twelve (12) years. (5) The loans provided under this section shall be subject to the prime interest rate minus one percent (1%). (6) Moneys in the fund are hereby appropriated for the purposes set forth in subsection (2) of this section. (7) The cabinet shall not approve an applicant for a loan under this section, unless the applicant: (a) Can demonstrate that the applicant has no outstanding liabilities with the Commonwealth; (b) Can demonstrate that the applicant has a positive payment history with the applicant's electricity provider for the preceding three (3) consecutive years; (c) Agrees to undergo and pay for an energy audit to establish a baseline of energy consumption; and (d) Meets all the requirements established in this section and any administrative regulations promulgated thereunder. Effective: February 25, 2010 History: Repealed and reenacted 2010 Ky. Acts ch. 5, sec. 23, effective February 25, 2010. -- Created 2008 Ky. Acts ch. 139, sec. 24, effective July 15, 2008. 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."

KRS 42.588 Administrative regulations -- Reports to Governor and Legislative Research Commission

42.588. Administrative regulations -- Reports to Governor and Legislative Research Commission (1) The cabinet shall, by administrative regulations promulgated in accordance with KRS Chapter 13A: (a) Develop a method to score applications for the bluegrass turns green private sector loan fund established in KRS 42.586 and the bluegrass turns green public sector grant fund established in KRS 42.584; (b) Develop a list of companies qualified to perform energy audits for the purposes of determining a baseline of energy consumption and any subsequent projected energy cost savings for: 1. Private sector recipients of low-interest loans provided from the bluegrass turns green private sector loan fund established in KRS 42.586; and 2. Public sector recipients of grants awarded from the public sector turns green grant fund established in KRS 42.584; and (c) Establish a process for the collection of loan payments from the private sector to repay amounts that were made available under the bluegrass turns green loan private sector fund. The cabinet shall also promulgate any other administrative regulations necessary to administer the provisions of KRS 42.580 to 42.588. (2) The cabinet shall report to the Governor and the Legislative Research Commission on or before November 1, 2009, and on or before each November 1 thereafter, the following for the bluegrass turns green private sector loan fund and the bluegrass turns green public sector grant fund for the immediately preceding fiscal year: (a) The number of applicants; (b) A description of the engineered demand-side management projects on which loans or grants were provided; (c) The total amount loaned to the private sector and the total amount of grants provided to the public sector; (d) The projected private sector energy cost savings; (e) The projected public sector energy cost savings; (f) The number of applicants and the amount of loan and grants for which funding was not available; and (g) Based upon the energy audits performed, the amount of increased energy capacity realized. Effective: February 25, 2010 History: Repealed and reenacted 2010 Ky. Acts ch. 5, sec. 24, effective February 25, 2010. -- Created 2008 Ky. Acts ch. 139, sec. 25, effective July 15, 2008. 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."

KRS 42.600 Report of Court of Justice as to collections

42.600. Report of Court of Justice as to collections The Court of Justice shall make a report according to generally accepted accounting principles of all money received and disbursed pursuant to fines, court costs, or fees established by enactment of the General Assembly, showing the receipts, expenditures, depositories, rates of interest paid by depositories, investments, and rates of return on investments by each fund to the Legislative Research Commission for each fiscal year on or before the 15th of July. Effective: July 15, 1982 History: Created 1982 Ky. Acts ch. 382, sec. 16, effective July 15, 1982.

KRS 42.605 Reports of Court of Justice concerning money judgments

42.605. Reports of Court of Justice concerning money judgments The Court of Justice shall make a report according to generally accepted accounting principles of all money received and disbursed pursuant to any action based on a cause of action established by enactment of the General Assembly, showing the receipts, expenditures, depositories, rates of interest paid by depositories, investments, and rates of return on investments by each fund to the Legislative Research Commission for each fiscal year on or before the 15th of July. Effective: July 15, 1982 History: Created 1982 Ky. Acts ch. 382, sec. 17, effective July 15, 1982.

KRS 42.610 Reports to be similar in form

42.610. Reports to be similar in form The Legislative Research Commission shall, by regulations promulgated pursuant to KRS Chapter 13A, require reports by the Court of Justice, under KRS 42.600 and 42.605, to be substantially similar in form to the reports made to the State Investment Commission under KRS 42.535 to 42.550. Effective: July 15, 1982 History: Created 1982 Ky. Acts ch. 382, sec. 18, effective July 15, 1982. Legislative Research Commission Note (10/5/90). Pursuant to KRS 7.136(1), KRS Chapter 13A has been substituted for the prior reference to KRS Chapter 13 in this statute. The sections in KRS Chapter 13 were repealed by 1984 Ky. Acts ch. 417, § 36 and KRS Chapter 13A was created in that same chapter of the 1984 Ky. Acts.

KRS 42.615 Annual reports of retirement funds

42.615. Annual reports of retirement funds Each retirement fund listed in this section shall make a report according to generally accepted accounting principles of all money received and disbursed by the listed fund during each fiscal year on or before the first day of October after the fiscal year, showing receipts, expenditures, depositories, rates of interest paid by depositories, investments, and rates of return on investments by each listed fund to the Legislative Research Commission. The funds which shall be reported are: (1) Kentucky employees' retirement fund; (2) State Police retirement fund; (3) County employees' retirement fund; (4) Kentucky retirement systems insurance fund; (5) Funds controlled by the Teachers' Retirement System of the State of Kentucky; (6) Judicial retirement fund; (7) Legislators retirement fund; and (8) The Kentucky state public employees deferred compensation trust fund. Effective: July 15, 1988 History: Amended 1988 Ky. Acts ch. 77, sec. 1, effective July 15, 1988. -- Created 1982 Ky. Acts ch. 382, sec. 19, effective July 15, 1982.

KRS 42.630 Legislative findings

42.630. Legislative findings The General Assembly finds and declares that: (1) Much of the Commonwealth's information is geographically referenced and may be presented through geographic information systems; (2) Geographic information systems allow for the exchange of information between levels of government and facilitate the management of the Commonwealth's natural, human, cultural, and economic resources; (3) There is a need to reduce redundancy in data-collection and development efforts, to coordinate the various activities in geographic information systems, and to share geographic information system resources and expertise to maximize the Commonwealth's investment in geographic information systems technology; (4) Considerations of cost and the need for the transfer of information among agencies of state government in the most timely and useful form possible require a uniform policy and coordinated approach for the use of geographic information systems; (5) It is the policy of the Commonwealth of Kentucky to coordinate and direct the use of geographic information resources and technologies to provide the most cost- effective and useful retrieval of information by its elected and appointed officials. Effective: July 15, 1994 History: Created 1994 Ky. Acts ch. 327, sec. 1, effective July 15, 1994.

KRS 42.650 Division of Geographic Information Systems -- Powers and duties -- Authority for administrative regulations

42.650. Division of Geographic Information Systems -- Powers and duties -- Authority for administrative regulations (1) The Division of Geographic Information Systems is hereby established in the Office of Architecture and Governance within the Commonwealth Office of Technology in the Finance and Administration Cabinet. (2) The Division of Geographic Information Systems shall be headed by a division director, whose appointment is subject to KRS 12.050. The division director may employ personnel, pursuant to the provisions of KRS Chapter 18A, as required to perform the functions of the office. (3) The division may solicit, receive, and consider proposals for funding from any state agency, federal agency, local government, university, nonprofit organization, or private person or corporation. The division may also solicit and accept money by grant, gift, donation, bequest, legislative appropriation, or other conveyance. (4) The division shall: (a) Establish the central statewide geographic information clearinghouse to maintain map inventories, information on current and planned geographic information systems applications, information on grants available for the acquisition or enhancement of geographic information resources, and a directory of geographic information resources available within the state or from the federal government; (b) Make all reasonable efforts to collect and present geographic information in a manner which meets the needs of all state agencies; (c) Coordinate multiagency geographic information system projects, including overseeing the development and maintenance of statewide base maps and geographic information systems; (d) Provide access to both consulting and technical assistance, and education and training, on the application and use of geographic information technologies to state and local agencies; (e) Maintain, update, and interpret geographic information and geographic information systems standards, under the direction of the council; (f) Provide geographic information system services, as requested, to agencies wishing to augment their geographic information system capabilities; (g) In cooperation with other agencies, evaluate, participate in pilot studies, and make recommendations on geographic information systems hardware and software; (h) Assist the council with review of agency information resource plans and participate in special studies as requested by the council; (i) Provide staff support and technical assistance to the Geographic Information Advisory Council; and (j) Prepare proposed legislation and funding proposals for the General Assembly which will further solidify coordination and expedite implementation of geographic information systems. (5) The division may promulgate necessary administrative regulations for the furtherance of this section. Effective: July 14, 2022 History: Amended 2022 Ky. Acts ch. 229, sec. 2, effective July 14, 2022. -- Amended 2021 Ky. Acts ch. 81, sec. 4, effective June 29, 2021. -- Amended 2018 Ky. Acts ch. 78, sec. 1, effective July 14, 2018. -- Amended 2012 Ky. Acts ch. 69, sec. 7, effective July 12, 2012. -- Amended 2005 Ky. Acts ch. 85, sec. 57, effective June 20, 2005. -- Created 1994 Ky. Acts ch. 327, sec. 3, effective July 15, 1994.

KRS 42.0651 Duties of Division of State Risk and Insurance Services -- Assistance from other agencies -- Risk management program

42.0651. Duties of Division of State Risk and Insurance Services -- Assistance from other agencies -- Risk management program (1) The Division of State Risk and Insurance Services shall: (a) Oversee and assist the management of the Commonwealth's pro perty and casualty insurance fund established in KRS Chapter 56; (b) Develop and manage programs of risk assessment and insurance for the protection of state property not covered by the Commonwealth's property and casualty insurance fund; (c) Advise the secretary of the Finance and Administration Cabinet on the fiscal management of programs relating to life insurance, workers' compensation, and health care benefits for state employees; (d) Serve as the central clearinghouse for coordinating and evaluating e xisting and new risk management programs within all state agencies; (e) Develop financing techniques for risk protection; (f) Provide insurance for all state-owned and state-operated facilities and vehicles; and (g) Develop and implement other risk managem ent, insurance, and self-insurance programs or other functions and duties as the secretary of the Finance and Administration Cabinet may direct the division to undertake and implement within the general statutory authority and control of the Finance and Administration Cabinet over state property and fiscal affairs of the executive branch of state government, including, but not limited to, those areas pertaining to tort and contractual liability, fidelity, and property risks. (2) Nothing in this section shall be construed or interpreted as affecting the operation of the employee benefit programs generally administered by the Office of Employee Relations and Department of Employee Insurance within the Personnel Cabinet. These agencies shall coordinate the operation of life insurance, workers' compensation, health care benefit programs, and other self -insured programs with the Division of State Risk and Insurance Services. (3) All cabinets, departments, boards, commissions, and other state agencies shall provide to the Division of State Risk and Insurance Services the technical advice and other assistance the Division of State Risk and Insurance Services or the secretary of the Finance and Administration Cabinet shall request in the performance of the functions of the division as described in this section. (4) (a) The secretary of the Finance and Administration Cabinet shall have the power and authority to promulgate administrative regulations pursuant to KRS Chapter 13A for purposes of implementing a risk management program for the executive branch of state government. (b) Any administrative regulations promulgated by the secretary shall be administered by the Division of State Risk and Insurance Services. Effective: March 31, 2025 History: Amended 2025 Ky. Acts ch. 136, sec. 12, effective March 31, 2025. -- Amended 2012 Ky. Acts ch. 10, sec. 7, effective July 12, 2012; and repealed, reenacted, and amended 2012 Ky. Acts ch. 69, sec. 2, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 32, effective July 15, 2010. -- Repealed, reenacted, and amended 2005 Ky. Acts ch. 85, sec. 14, effective June 20, 2005. -- Amended 2001 Ky. Acts ch. 164, sec. 3, effective June 21, 2001. -- Amended 1998 Ky. Acts ch. 82, sec. 12, effective July 15, 1998; and ch. 154, sec. 62, effective July 15, 1998. -- Renumbered by Reviser of Statutes and amended 1994 Ky. Acts ch. 116, sec. 3, effective July 15, 1994; and ch. 216, sec. 4, effective July 15, 1994. -- Created 1990 Ky. Acts ch. 377, sec. 1, effective July 13, 1990. Formerly codified as KRS 42.0245. Formerly codified as KRS 42.0192. Legislative Research Commission Note (7/15/94). This statute was formerly codified as KRS 42.0192 and was renumbered by the Reviser of Statutes pursuant to KRS 7.136(1)(a) because of changes made by 1994 Ky. Acts ch. 216, sec. 4.

KRS 42.655 Geographic information clearinghouse -- Availability to state agencies -- Administrative regulations

42.655. Geographic information clearinghouse -- Availability to state agencies -- Administrative regulations (1) The geographic information clearinghouse maintained by the Division of Geographic Information Systems shall be the sole database of geographic information maintained by state agencies. The Division of Geographic Information Systems shall make the clearinghouse available to all state agencies. (2) The division shall make all reasonable efforts to collect and present geographic information in a manner that meets the needs of all state agencies. (3) Pursuant to the procedures described in KRS 12.090, any head of a state agency may request modifications to the methods of geographic information collection and presentation utilized by the Division of Geographic Information Systems to meet the needs of the state agency. (4) State agencies shall, whenever possible, request and use nonlicensed geographic information in order to allow the Division of Geographic Information Systems to effectively discharge its statutory responsibility to maintain an accurate and complete central statewide geographic information clearinghouse for official state use. (5) State agencies shall, whenever possible, consolidate their requests for the collection, purchase, or creation of geographic information into multiagency projects to minimize redundancy within the clearinghouse and to lower overall costs. (6) The Division of Geographic Information Systems may promulgate necessary administrative regulations for the furtherance of this section. Effective: July 14, 2022 History: Created 2022 Ky. Acts ch. 229, sec. 1, effective July 14, 2022.

KRS 42.705 Legislative findings and declarations -- Display of historic religious and nonreligious artifacts, monuments, symbols, and texts in public buildings and on public property owned by the Commonwealth

42.705. Legislative findings and declarations -- Display of historic religious and nonreligious artifacts, monuments, symbols, and texts in public buildings and on public property owned by the Commonwealth The General Assembly hereby finds and declares as follows: (1) The Commonwealth's public buildings and their surrounding grounds provide Kentucky's citizens and others a place at which they may conduct public business, visit and interact with government officials, and learn about the Commonwealth's history and government; (2) The Commonwealth's public buildings and public properties are themselves important symbols of Kentucky's history; (3) Whether it be former battlegrounds, Native American sites, parks, recreation areas, historic government sites, homes of famous Kentuckians, or any other site of interest, without historic artifacts, monuments, symbols, and texts on the properties and in the buildings, most persons would not even know of the significance of the site or building; (4) Kentucky is justly proud of its history, as the past is the prologue to how we live today, how our government functions, and what things we hold to be important to us; (5) It is not in Kentucky's best interest to hide its heritage or traditions, or the beliefs or deeply held opinions of its citizens; (6) It is in Kentucky's best interest that its public buildings and public properties reflect the Commonwealth's rich history by exhibiting items of significance to Kentucky's civic and cultural development; (7) The display of historic artifacts, monuments, symbols, and texts in and on the grounds of Kentucky's public buildings and public properties promotes its citizens' awareness of their common history and an appreciation of the persons and events contributing to that history; (8) The free exercise of religion, as well as the right to have no religion, is a right guaranteed by the Constitution of the United States and the Constitution of Kentucky; (9) The right of the people to express themselves is enshrined in the freedom of speech guaranteed by the Constitution of the United States and the Constitution of Kentucky; (10) While the authors of the Constitution of the United States and the Constitution of Kentucky were guaranteeing the free exercise of religion and prohibiting the establishment of a state-sponsored religion, these same authors and the public officials of that date publicly and regularly proclaimed a belief in a supreme being, prayed openly, and placed religious-based statements and symbols in and on their public buildings and properties, and that tradition has continued unbroken to this day; (11) The free exercise of religion, in all of its myriad expressions, is a significant component of Kentucky's historical heritage and may be acknowledged as such; (12) Historic artifacts, monuments, symbols, and texts, including but not limited to religious materials, may be displayed in Kentucky's public schools, within the framework of applicable legal precedents, if they are displayed in connection with a course of study that is academic, balanced, objective, and not devotional in nature, and that neither favors nor disfavors religion generally or any particular religious belief; and (13) Historic artifacts, monuments, symbols, and texts, including but not limited to religious materials, may be displayed in Kentucky's public buildings and on Kentucky's public properties if they are displayed in a: (a) Balanced, objective, and not solely religious manner; (b) Manner that neither favors nor disfavors religion generally; (c) Manner that neither favors nor disfavors any religious belief; and (d) Manner which promotes the display of Kentucky's historic, cultural, political, and general heritage and achievements. Effective: March 24, 2006 History: Created 2006 Ky. Acts ch. 34, sec. 1, effective March 24, 2006.

KRS 42.710 Agency or instrumentality of state authorized to display historic religious and nonreligious artifacts, monuments, symbols, and texts in public buildings and on public property owned by the Commonwealth

42.710. Agency or instrumentality of state authorized to display historic religious and nonreligious artifacts, monuments, symbols, and texts in public buildings and on public property owned by the Commonwealth Any agency or instrumentality of state government may display historic artifacts, monuments, symbols, and texts, including but not limited to religious materials, in public buildings and public property owned by the Commonwealth if the display is consistent with the requirements of KRS 42.705. Effective: March 24, 2006 History: Created 2006 Ky. Acts ch. 34, sec. 2, effective March 24, 2006.

KRS 42.720 Legislative findings

42.720. Legislative findings The General Assembly finds and declares that: (1) The establishment of the position of the executive director of the Commonwealth Office of Technology, appointed by the secretary of the Finance and Administration Cabinet with the approval of the Governor, as the Commonwealth's single point of contact and spokesperson for all matters related to information technology and resources, including policies, standard setting, deployment, strategic and tactical planning, acquisition, management, and operations is necessary and in keeping with the industry trends of the private and public sectors; (2) The appropriate use of information technology by the Commonwealth can improve operational productivity, reduce the cost of government, enhance service to customers, and make government more accessible to the public; (3) Government-wide planning, investment, protection, and direction for information resources must be enacted to: (a) Ensure the effective application of information technology on state business operations; (b) Ensure the quality, security, and integrity of state business operations; and (c) Provide privacy to the citizens of the Commonwealth; (4) The Commonwealth must provide information technology infrastructure, technical directions, and a proficient organizational management structure to facilitate the productive application of information technology and resources to accomplish programmatic missions and business goals; (5) Oversight of large scale and government statewide systems or projects is necessary to protect the Commonwealth's investment and to ensure appropriate integration with existing or planned systems; (6) A career development plan and professional development program for information technology staff of the executive branch is needed to provide key competencies and adequate on-going support for the information resources of the Commonwealth and to ensure that the information technology staff will be managed as a Commonwealth resource; (7) The Commonwealth is in need of information technology advisory capacities to the Governor and the agencies of the executive cabinet; (8) Appropriate public-private partnerships to supplement existing resources must be developed as a strategy for the Commonwealth to comprehensively meet its spectrum of information technology and resource needs; (9) Technological and theoretical advances in information use are recent in origin, immense in scope and complexity, and change at a rapid rate, which presents Kentucky with the opportunity to provide higher quality, more timely, and more cost-effective government services to ensure standardization, interoperability, and interconnectivity; (10) The sharing of information resources and technologies among executive branch state agencies is the most cost-effective method of providing the highest quality and most timely government services that would otherwise be cost-prohibitive; (11) The ability to identify, develop, and implement changes in a rapidly moving field demands the development of mechanisms to provide for the research and development of technologies that address systems, uses, and applications; and (12) The exercise by the executive director of the Commonwealth Office of Technology of powers and authority conferred by KRS 42.720 to 42.742, 45.253, 171.420, 186A.040, and 186A.285 shall be deemed and held to be the performance of essential governmental functions. Effective: July 15, 2020 History: Amended 2020 Ky. Acts ch. 36, sec. 2, effective July 15, 2020. -- Repealed, reenacted, and amended 2009 Ky. Acts ch. 12, sec. 2, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 21, effective June 20, 2005; and ch. 99, sec. 3, effective June 20, 2005. -- Repealed, reenacted, and amended 2000 Ky. Acts ch. 506, sec. 1, effective July 14, 2000; and ch. 536, sec. 1, effective July 14, 2000. -- Created 1998 Ky. Acts ch. 353, sec. 1, effective July 15, 1998. Formerly codified as KRS 11.501 and 61.935.

KRS 42.722 Definitions for KRS 42.720 to 42.742

42.722. Definitions for KRS 42.720 to 42.742 As used in KRS 42.720 to 42.742: (1) "Artificial intelligence" means the use of machine learning and related technologies that uses data to train statistical models for the purpose of enabling computer systems to perform tasks normally associated with human intelligence or perception; (2) "Artificial intelligence system": (a) Means any machine-based computing system that, for any explicit or implicit objective, infers from the inputs such system receives how to generate outputs, including but not limited to content, decisions, predictions, or recommendations, that can influence physical or virtual environments; and (b) Does not include an artificial intelligence system that is used for development, prototyping, and research activities before such artificial intelligence system; (3) "Communications" or "telecommunications" means any transmission, emission, or reception of signs, signals, writings, images, and sounds of intelligence of any nature by wire, radio, optical, or other electromagnetic systems, and includes all facilities and equipment performing these functions; (4) "Consequential decision" means any decision that has a material legal or similarly significant effect on the provision or denial of services, cost, or terms to any citizen or business; (5) "Deployer" means any state department, state agency, or state administrative body in the Commonwealth that puts into use a high-risk artificial intelligence system; (6) "Developer" means any department, agency, or administrative body that develops or intentionally and substantially modifies a high-risk artificial intelligence system that is offered, purchased, sold, leased, given, or otherwise provided to citizens and businesses in the Commonwealth; (7) "Foundation model" means a machine learning model that is trained on broad data at scale, designed for generality of output, and can be adapted to a wide range of distinctive tasks; (8) "General-purpose artificial intelligence model": (a) Means a model used by any form of artificial intelligence system that displays significant generality, is capable of performing a wide range of distinct tasks, and can be integrated into a variety of subsequent applications or systems; and (b) Does not include any artificial intelligence model that is used for development, prototyping, and research activities before such artificial intelligence model is released on the market; (9) "Generative artificial intelligence" means an artificial intelligence system that is capable of producing and used to produce synthetic content, including audio, images, text, and videos; (10) "Generative artificial intelligence system" means any artificial intelligence system or service that incorporates generative artificial intelligence; (11) "Geographic information system" or "GIS" means a computerized database management system for the capture, storage, retrieval, analysis, and display of spatial or locationally defined data; (12) "High-risk artificial intelligence system": (a) Means any artificial intelligence system that is a substantial factor in the decision-making process or specifically intended to autonomously make, or be a substantial factor in making, a consequential decision; and (b) Does not include a system or service intended to perform a narrow procedural task, improve the result of a completed human activity, or detect decision- making patterns or deviations from previous decision-making patterns and is not meant to replace or influence human assessment without human review, or perform a preparatory task in an assessment relevant to a consequential decision; (13) "Information resources" means the procedures, equipment, and software that are designed, built, operated, and maintained to collect, record, process, store, retrieve, display, and transmit information, and associated personnel; (14) "Information technology" means data processing and telecommunications hardware, software, services, supplies, facilities, maintenance, and training that are used to support information processing and telecommunications systems to include geographic information systems; (15) "Machine learning" means the development of algorithms to build data-derived statistical models that are capable of drawing inferences from previously unseen data without explicit human instruction; (16) "Personal information" has the same meaning as in KRS 61.931; (17) "Project" means a program to provide information technologies support to functions within an executive branch state agency, which should be characterized by well- defined parameters, specific objectives, common benefits, planned activities, expected outcomes and completion dates, and an established budget with a specified source of funding; (18) "Security breach" has the same meaning as in KRS 61.931; and (19) "Technology infrastructure" means any computing equipment, servers, networks, storage, desktop support, telephony, enterprise shared systems, information technology security, disaster recovery, business continuity, database administration, and software licensing. Effective: March 24, 2025 History: Amended 2025 Ky. Acts ch. 66, sec. 1, effective March 24, 2025. -- Amended 2014 Ky. Acts ch. 74, sec. 5, effective January 1, 2015; ch. 89, sec. 9, effective July 15, 2014; and ch. 138, sec. 2, effective July 15, 2014. -- Repealed, reenacted, and amended 2009 Ky. Acts ch. 12, sec. 3, effective June 25, 2009. -- Created 2000 Ky. Acts ch. 506, sec. 2, effective July 14, 2000; and ch. 536, sec. 2, effective July 14, 2000. Formerly codified as KRS 11.503.

KRS 42.724 Commonwealth Office of Technology

42.724. Commonwealth Office of Technology (1) There is hereby created within the Finance and Administration Cabinet an agency of state government known as the Commonwealth Office of Technology. (2) The Commonwealth Office of Technology shall be headed by an executive director, also known as the chief information officer, appointed by the secretary of the Finance and Administration Cabinet and approved by the Governor. Duties and functions of the executive director shall include serving on the Governor's Executive Cabinet and those established in KRS 42.730. (3) The Commonwealth Office of Technology shall consist of the following offices, each headed by an executive director and organized into divisions headed by a division director: (a) Office of Infrastructure Services, consisting of the: 1. Division of Network Services; and 2. Division of Platform Services; (b) Office of Architecture and Governance, consisting of the: 1. Division of Enterprise Solutions; 2. Division of Mainframe Services; 3. Division of Geographic Information Systems; and 4. Division of Governance and Strategy; (c) Office of the Chief Information Security Officer. The office shall ensure the efficiency and effectiveness of information technology security functions and responsibilities; and (d) Office of Client Support Services, consisting of the: 1. Division of Field Services; and 2. Division of Support Services. (4) Executive directors and division directors appointed under this section shall be appointed by the secretary with the approval of the Governor. Effective: June 29, 2021 History: Amended 2021 Ky. Acts ch. 81, sec. 3, effective June 29, 2021. -- Amended 2018 Ky. Acts ch. 78, sec. 2, effective July 14, 2018. -- Amended 2014 Ky. Acts ch. 89, sec. 10, effective July 15, 2 014; and ch. 138, sec. 3, effective July 15, 2014. -- Amended 2012 Ky. Acts ch. 69, sec. 8, effective July 12, 2012. -- Repealed, reenacted, and amended 2009 Ky. Acts ch. 12, sec. 4, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 22, effective June 20, 2005. -- Amended 2001 Ky. Acts ch. 59, sec. 1, effective June 21, 2001. -- Created 2000 Ky. Acts ch. 506, sec. 3, effective July 14, 2000; and ch. 536, sec. 3, effective July 14, 2000.. Formerly codified as KRS 11.505.

KRS 42.726 Roles, duties, and permissible activities for Commonwealth Office of Technology -- Duties of Archives and Records Commission and Department for Libraries and Archives not affected -- Annual report concerning security breaches

42.726. Roles, duties, and permissible activities for Commonwealth Office of Technology -- Duties of Archives and Records Commission and Department for Libraries and Archives not affected -- Annual report concerning security breaches (1) The Commonwealth Office of Technology shall be the lead organizational entity within the executive branch regarding delivery of information technology services, including application development and delivery, and shall serve as the single information technology authority for the Commonwealth. (2) The roles and duties of the Commonwealth Office of Technology shall include but not be limited to: (a) Providing technical support and services to all executive agencies of state government in the application of information technology; (b) Assuring compatibility and connectivity of Kentucky's information systems; (c) Developing strategies and policies to support and promote the effective applications of information technology within state government as a means of saving money, increasing employee productivity, and improving state services to the public, including electronic public access to information of the Commonwealth; (d) Developing, implementing, and managing strategic information technology directions, standards, and enterprise architecture, including implementing necessary management processes to ensure full compliance with those directions, standards, and architecture; (e) Promoting effective and efficient design and operation of all major information resources management processes for executive branch agencies, including improvements to work processes; (f) Developing, implementing, and maintaining the technology infrastructure of the Commonwealth and all related support staff, planning, administration, asset management, and procurement for all executive branch cabinets and agencies except: 1. Agencies led by a statewide elected official; 2. The nine (9) public institutions of postsecondary education; 3. The Department of Education's services provided to local school districts; 4. The Kentucky Retirement Systems, the County Employees Retirement System, the Kentucky Public Pensions Authority, and the Teachers' Retirement System; 5. The Kentucky Housing Corporation; 6. The Kentucky Lottery Corporation; 7. The Kentucky Higher Education Student Loan Corporation; and 8. The Kentucky Higher Education Assistance Authority; (g) Facilitating and fostering applied research in emerging technologies that offer the Commonwealth innovative business solutions; (h) Reviewing and overseeing large or complex information technology projects and systems for compliance with statewide strategies, policies, and standards, including alignment with the Commonwealth's business goals, investment, and other risk management policies. The executive director is authorized to grant or withhold approval to initiate these projects; (i) Integrating information technology resources to provide effective and supportable information technology applications in the Commonwealth; (j) Establishing the central statewide geographic information clearinghouse to maintain map inventories, information on current and planned geographic information systems applications, information on grants available for the acquisition or enhancement of geographic information resources, and a directory of geographic information resources available within the state or from the federal government; (k) Coordinating multiagency information technology projects, including overseeing the development and maintenance of statewide base maps and geographic information systems; (l) Providing access to both consulting and technical assistance, and education and training, on the application and use of information technologies to state and local agencies; (m) In cooperation with other agencies, evaluating, participating in pilot studies, and making recommendations on information technology hardware and software; (n) Providing staff support and technical assistance to the Geographic Information Advisory Council and the Kentucky Information Technology Advisory Council; (o) Overseeing the development of a statewide geographic information plan with input from the Geographic Information Advisory Council; (p) Developing for state executive branch agencies a coordinated security framework and model governance structure relating to the privacy and confidentiality of personal information collected and stored by state executive branch agencies, including but not limited to: 1. Identification of key infrastructure components and how to secure them; 2. Establishment of a common benchmark that measures the effectiveness of security, including continuous monitoring and automation of defenses; 3. Implementation of vulnerability scanning and other security assessments; 4. Provision of training, orientation programs, and other communications that increase awareness of the importance of security among agency employees responsible for personal information; and 5. Development of and making available a cyber security incident response plan and procedure; (q) Establishing, publishing, maintaining, and implementing comprehensive policy standards and procedures for the responsible, ethical, and transparent use of generative artificial intelligence systems and high-risk artificial intelligence systems by departments, agencies, and administrative bodies, including but not limited to policy standards and procedures that: 1. Govern their procurement, implementation, and ongoing assessment; 2. Address and provide resources for security of data and privacy; and 3. Create guidelines for acceptable use policies for integrating high-risk artificial intelligence systems; (r) Preparing proposed legislation and funding proposals for the General Assembly that will further solidify coor dination and expedite implementation of information technology systems; and (s) Carrying out the functions and respo nsibilities of the Kentucky Communications Network Authority established in KRS 154.15 -020. (3) The Commonwealth Office of Technology may: (a) Provide general consulting services, technical training, and support for generic software applications, upon requ est from a local government, if the executive director finds that the requested services can be rendered within the established terms of the federally approved cost allocation plan; (b) Promulgate administrative regulations in accordance with KRS Chapter 1 3A necessary for the implementation of KRS 42.720 to 42.742, 45.253, 171.420, 186A.040, and 186A.285; (c) Solicit, receive, and consider proposals from any state agency, federal agency, local government, university, nonprofit organization, private person, or corporation; (d) Solicit and accept money by grant, gift, donation, bequest, legislative appropriation, or other conveyance to be held, used, and applied in accordance with KRS 42.720 to 42.742, 45.253, 171.420, 186A.040, and 186A.285; (e) Make and enter into memoranda of agreement and contracts necessary or incidental to the performance of duties and execution of its powers, including but not limited to agreements or contracts with the United States, other state agencies, and any governmental subdivisio n of the Commonwealth; (f) Accept grants from the United States government and its agencies and instrumentalities, and from any source, other than any person, firm, or corporation, or any director, officer, or agent thereof that manufactures or sells information resources technology equipment, goods, or services. To these ends, the Commonwealth Office of Technology shall have the power to comply with those conditions and execute those agreements that are necessary, convenient, or desirable; and (g) Purchase interest in contractual services, rentals of all types, supplies, materials, equipment, and other services to be used in the research and development of beneficial applications of information resources technologies. Competitive bids may not be required fo r: 1. New and emerging technologies as approved by the executive director or her or his designee; or 2. Related professional, technical, or scientific services, but contracts shall be submitted in accordance with KRS 45A.690 to 45A.725. (4) Nothing in this section shall be construed to alter or diminish the provisions of KRS 171.410 to 171.740 or the authority conveyed by these statutes to the Archives and Records Commission and the Department for Libraries and Archives. (5) The Commonwealth Office of Technology shall, on or before October 1 of each year, submit to the Legislative Research Commission a report in accordance with KRS 57.390 detailing: (a) Any security breaches that occurred within organizational units of the executive branch of state government during the prior fiscal year that required notification to the Commonwealth Office of Technology under KRS 61.932; (b) Actions taken to resolve the security breach, and to prevent additional security breaches in the future; (c) A general description of what actions are taken as a matter of course to protect personal data from security breaches; and (d) Any quantifiable financial impact to the agency reporting a security breach. Effective: March 10, 2026 History: Amended 2026 Ky. Acts ch. 2, sec. 5, effective March 10, 2026. -- Amended 2025 Ky. Acts ch. 66, sec. 2, effective March 24, 2025. -- Amended 2022 Ky. Acts ch. 229, sec. 3, effective July 14, 2022. -- Amended 2020 Ky. Acts ch. 36, sec. 3, effective July 15, 2020; and ch. 79, sec. 16, effective April 1, 2021. -- Amended 2018 Ky. Acts ch. 78, sec. 3, effective July 14, 2018. -- Amended 2014 Ky. Acts ch. 74, sec. 6, effective January 1, 2015; ch. 89, sec. 11, effective July 15, 2014; and ch. 138, sec. 4, effective July 15, 2014. -- Amended 2012 Ky. Acts ch. 69, sec. 9, effective July 12, 2012. -- Repealed, reenacted, and amended 2009 Ky. Acts ch. 12, sec. 5, effective June 25, 2009. -- Amended 2006 Ky. Acts ch. 193, sec. 10, effective July 12, 2006. -- Amended 2005 Ky. Acts ch. 85, sec. 30, effective June 20, 2005; and ch. 99, sec. 4, effective June 20, 2005. -- Created 2000 Ky. Acts ch. 506, sec. 4, effective July 14, 2000; and ch. 536, sec. 4, effective July 14, 2000. Formerly codified as KRS 11.507. Legislative Research Commission Note (1/1/2015). 2014 Ky. Acts ch. 74, sec. 10 provided that "the provisions of this Act shall not impact the provisions of KRS 61.870 to 61.884." That proviso applies to this statute as amended in Section 6 of that Act.

KRS 42.728 State agencies to assist Commonwealth Office of Technology -- Exceptions for judicial and legislative branches and retirement systems. (Effective April 1, 2021)

42.728. State agencies to assist Commonwealth Office of Technology -- Exceptions for judicial and legislative branches and retirement systems. (Effective April 1, 2021) (1) To accomplish the work of the Commonwealth Office of Technology, all organizational units and administrative bodies, as defined in KRS 12.010, and all members of the state postsecondary education system, as defined in KRS 164.001, shall furnish the Commonwealth Office of Technology necessary assistance, resources, information, records, and advice as required. (2) The provisions of KRS 42.720 to 42.742, 45.253, 171.420, 186A.040, and 186A.285 shall not be construed to grant any authority over the judicial or legislative branches of state government, or agencies thereof, to the Commonwealth Office of Technology. (3) The information, technology, personnel, agency resources, and confidential records of the Kentucky Retirement Systems, the County Employees Retirement System, the Kentucky Public Pensions Authority, and the Kentucky Teachers' Retirement System shall be excluded from the provisions of KRS 42.720 to 42.742, 45.253, 171.420, 186A.040, and 186A.285 and shall not be under the authority of the Commonwealth Office of Technology. Effective: April 1, 2021 History: Amended 2020 Ky. Acts ch. 36, sec. 4, effective July 15, 2020; and ch. 79, sec. 17, effective April 1, 2021. -- Repealed, reenacted, and amended 2009 Ky. Acts ch. 12, sec. 6, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 31, effective June 20, 2005; and ch. 99, sec. 5, effective June 20, 2005. -- Created 2000 Ky. Acts ch. 506, sec. 5, effective July 14, 2000; and ch. 536, sec. 5, effective July 14, 2000. Formerly codified as KRS 11.509. Legislative Research Commission Note (4/1/2021). This statute was amended by 2020 Ky. Acts chs. 36 and 79, which do not appear to be in conflict and have been codified together.

KRS 42.730 Executive director of Commonwealth Office of Technology -- Roles and duties

42.730. Executive director of Commonwealth Office of Technology -- Roles and duties (1) The executive director of the Commonwealth Office of Technology shall be the principal adviser to the Governor and the executive cabinet on information technology policy, including policy on the acquisition and management of information technology and resources. (2) The executive director of the Commonwealth Office of Technology shall also serve as the chief information officer for all agencies within the executive branch, including the Commonwealth Office of Technology. (3) The executive director shall carry out functions necessary for the efficient, effective, and economical administration of information technology and resources within the executive branch. Roles and duties of the executive director shall include but not be limited to: (a) Assessing, recommending, and implementing information technology governance and organization design to include effective information technology personnel management practices; (b) Integrating information technology and resources plans with agency business plans; (c) Overseeing shared Commonwealth information technology resources and services; (d) Performing as the focal point and representative for the Commonwealth in information technology and related areas with both the public and private sector; (e) Establishing appropriate partnerships and alliances to support the effective implementation of information technology projects in the Commonwealth; (f) Identifying information technology applications that should be statewide in scope, and assisting agencies in avoiding duplicate services; (g) Establishing performance measurement and benchmarking policies and procedures; (h) Preparing annual reports and plans concerning the status and result of the state's specific information technology plans and submitting these annual reports and plans to the Governor and the General Assembly; (i) Managing the Commonwealth Office of Technology and its budget; and (j) Approving technology acquisition prior to any procurement. Effective: July 14, 2018 History: Amended 2018 Ky. Acts ch. 78, sec. 4, effective July 14, 2018. -- Amended 2011 Ky. Acts ch. 75, sec. 3, effective March 16, 2011. -- Repealed and reenacted 2009 Ky. Acts ch. 12, sec. 7, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 23, effective June 20, 2005. -- Repealed, reenacted, and amended 2000 Ky. Acts ch. 506, sec. 6, effective July 14, 2000; and ch. 536, sec. 6, effective July 14, 2000. -- Created 1998 Ky. Acts ch. 353, sec. 2, effective July 15, 1998. Formerly codified as KRS 11.511 and 61.936.

KRS 42.731 Duties of Artificial Intelligence Governance Committee -- Duties of Commonwealth Office of Technology regarding artificial intelligence systems - - Establishment of policies and operating standards on use of artificial intelligence by state agencies -- Report -- Administrative regulations

42.731. Duties of Artificial Intelligence Governance Committee -- Duties of Commonwealth Office of Technology regarding artificial intelligence systems - - Establishment of policies and operating standards on use of artificial intelligence by state agencies -- Report -- Administrative regulations (1) The Commonwealth Office of Technology shall create an Artificial Intelligence Governance Committee to govern the use of artificial intelligence systems by state departments, state agencies, and state adminis trative bodies by: (a) Developing policy standards and guiding principles to mitigate risks and protect data and privacy of Kentucky citizens and businesses that adhere to the latest version of Standard ISO/IEC 42001 of the International Organization for Standardization; (b) Establishing technology standards to provide protocols and requirements for the use of generative artificial intelligence and high -risk artificial intelligence systems; (c) Ensuring transparency in the use of artificial intelligence sys tems; (d) Maintaining a centralized registry to include current inventory of generative artificial intelligence systems and high -risk artificial intelligence systems; and (e) Developing an approval process to include a registry of application, use case, and decision rationale aimed at mitigation of risks. (2) The Artificial Intelligence Governance Committee shall develop policies and procedures to ensure that any department, program, cabinet, agency, or administrative body that utilizes and accesses the Com monwealth's information technology and technology infrastructure shall: (a) Verify the use and development of generative artificial intelligence systems and high-risk artificial intelligence systems; and (b) Act in compliance with responsible, ethical, and transparent procedures to implement the use of artificial intelligence technologies by: 1. Ensuring artificial intelligence models have comprehensive and complete documentation that is available for review and inspection; 2. Requiring review and intervention by humans dependent on the use case and potential risk for all outcomes from generative and high -risk artificial intelligence systems; and 3. Ensuring the use of generative artificial intelligence and high -risk artificial intelligence systems are resilient, accountable, and explainable. (3) The Commonwealth Office of Technology shall prioritize personal privacy and the protection of the data of individuals and businesses as the state develops, implements, employs, and procu res artificial intelligence systems, generative artificial intelligence systems, and high -risk artificial intelligence systems by ensuring all departments, agencies, and administrative bodies: (a) Allow only the use of necessary data in artificial intellig ence systems; (b) Do not allow unrestricted access to personal data controlled by the Commonwealth; and (c) Secure all data and implement a timeframe for data retention. (4) To maintain and secure the technology infrastructure, information technology, information resources, and personal information, all departments, agencies, and administrative bodies shall be subject to review of generative artificial intelligence systems or high-risk artificial intelligence systems. (5) At a minimum, the executive director of the Commonwealth Office of Technology shall consider and document: (a) How the artificial intelligence system will not result in unlawful discrimination against any individual or group of individuals; (b) How the use of generative artificial intelligence or other artificial intelligence capabilities will benefit the citizens of the Commonwealth and serve the objectives of the department or agency; (c) To what extent oversight and human interaction of the artificial intelligence system should be required; (d) The potential risks, including cybersecurity, data protection and privacy, and health and safety of individuals and businesses, and a mitigation strategy to any identified or potential risk; and (e) The proper control and management for all data possessed by the Commonwealth to maintain security and data quality. (6) (a) A department, agency, or administrative body shall disclose to the public, through a clear and conspicuous disclaimer, when generative artificial intelligence, artificial intelligence systems, or other artificial intelligence- related capabilities are used: 1. To render any decision regarding individual citizens or businesses within the state; 2. In any process, or to produce materials used by the system or humans, to inform a decision or create an output; or 3. To produce information or outputs accessible by citizens and businesses. (b) When an artificial intelligence system makes external decisions related to citizens of the Commonwealth, a department, agency, or administrative body shall: 1. Disclose how artificial intelligence is used in the decision-making process; 2. Provide the extent of human involvement in validating and oversight of any decision made; and 3. Make readily available options for individuals to appeal a consequential decision that involves artificial intelligence. (c) Any disclaimer under paragraph (a) of this subsection shall also provide information regarding third-party artificial intelligence products or programs, including but not limited to information as to how the high-risk artificial intelligence system or generative artificial intelligence system works, such as system cards or other documented information provided by developers. (7) The Commonwealth Office of Technology shall establish policies to encompass legal and ethical frameworks to ensure that any artificial intelligence systems shall align with existing laws, administrative regulations, and guidelines, which shall be updated at least annually to maintain compliance as technology and industry best practices evolve. (8) (a) Operating standards for utilization of high-risk artificial intelligence systems shall prohibit the use of a high-risk artificial intelligence system to render a consequential decision without the design and implementation of a risk management policy and program for high-risk artificial intelligence systems. The risk management policy shall: 1. Specify principles, process, and personnel that shall be utilized to maintain the risk management program; and 2. Identify, mitigate, and document any bias or potential bias that is a potential consequence of use in making a consequential decision. (b) Each risk management policy designed and implemented shall at a minimum adhere to the latest version of Standard ISO/IEC 42001 of the International Organization for Standardization or another national or internationally recognized risk management framework for artificial intelligence systems, and consider the: 1. Size and complexity of the deployer; 2. Nature, scope, and intended use of the high-risk artificial intelligence system and its deployer; and 3. Sensitivity and volume of data processed. (9) This section and KRS 42.722 and 42.726 shall not be construed to require the disclosure of trade secrets, confidential or proprietary information about the design or use of an artificial intelligence system, or any information which would create a security risk. (10) The Commonwealth Office of Technology shall provide education and training of employees about the benefits and risks of artificial intelligence and allowable use policies. (11) (a) The Commonwealth Office of Technology shall transmit reports to the Legislative Research Commission and the Interim Joint Committee on State Government by December 1, 2025, and annually every year thereafter. The reports shall include: 1. The artificial intelligence registry, which shall include the current inventory and use case of artificial intelligence utilized in state government; 2. Applications received for use of artificial intelligence, including the decision and rationale in approving or disapproving a request in compliance with subsection (5)(c) of this section; and 3. Third-party artificial intelligence developers, system administrators, providers, and contractors submitted for review in compliance with subsection (5) of this section. (b) To facilitate the report in paragraph (a) of this subsection, the Commonwealth Office of Technology shall receive from each department, agency, and administrative body a report examining and identifying potential use cases for the deployment of generative artificial intelligence systems and high-risk artificial intelligence systems, including a description of the benefits and risks to individuals, communities, government, and government employees. (12) The Commonwealth Office of Technology shall promulgate administrative regulations in accordance with KRS Chapter 13A to implement this section and KRS 42.726 by December 1, 2025. Effective: March 24, 2025 History: Created 2025 Ky. Acts ch. 66, sec. 3, effective March 24, 2025.

KRS 42.732 Kentucky Information Technology Advisory Council -- Purposes -- Members

42.732. Kentucky Information Technology Advisory Council -- Purposes -- Members (1) There is hereby created the Kentucky Information Technology Advisory Council to: (a) Advise the executive director of the Commonwealth Office of Technology on approaches to coordinating information technology solutions among libraries, public schools, local governments, universities, and other public entities; (b) Advise the executive director of the Commonwealth Office of Technology on coordination among and across the organizational units of the executive branch of state government to prepare for, respond to, and prevent attacks; and (c) Provide a forum for the discussion of emerging technologies that enhance electronic accessibility to various publicly funded sources o f information and services. (2) The Kentucky Information Technology Advisory Council shall consist of: (a) The state budget director or a designee; (b) The state librarian or a designee; (c) One (1) representative from the public universities to be appoint ed by the Governor from a list of three (3) persons submitted by the Council on Postsecondary Education; (d) Three (3) citizen members from the private sector with information technology knowledge and experience appointed by the Governor; (e) Two (2) representatives of local government appointed by the Governor; (f) 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; (g) One (1) member of the media appointed by the Governor; (h) The executive director of the Kentucky Authority for Educational Television; (i) The chair of the Public Service Commission or a designee; (j) Two (2) members of the Kentucky General Assembly, one (1) from each chamber, selected by the Legislative Research Commission; (k) One (1) representative of the Administrative Office of the Courts; (l) One (1) representative from the public schools system appointed by the Governor; (m) One (1) representative of the Kentucky Chamber of Commerce; and (n) The executive director of the Commonwealth Office of Technology. (3) Appointed members of the council shall serve for a term of two (2) years. Members who serve by virtue of an office shall serve on the council while they hold the office. (4) Vacancies on the council shall be filled in the same manner as the original appointments. If a nominating organization changes its name, its successor organization having the same responsibilities and purposes shall be the nominating organization. (5) Members shall receive no compensation but shall receive reimbursement for actual and necessary expenses in accordance with travel and subsistence requirements established by the Finance and Administration Cabinet. Effective: March 10, 2026 History: Amended 2026 Ky. Acts ch. 2, sec. 6, effective March 10, 2026. -- Amended 2017 Ky. Acts ch. 89, sec. 6, effective June 29, 2017. -- Amended 2014 Ky. Acts ch. 74, sec. 7, effective January 1, 2015. -- Repealed and reenacted 2009 Ky. Acts ch. 12, sec. 8, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 32, effective June 20, 2005. -- Created 2000 Ky. Acts ch. 506, sec. 7, effective July 14, 2000; and ch. 536, sec. 7, effective July 14, 2000. Formerly codified as KRS 11.513. Legislative Research Commission Note (1/1/2015). 2014 Ky. Acts ch. 74, sec. 10 provided that "the provisions of this Act shall not impact the provisions of KRS 61.870 to 61.884." That proviso applies to this statute as amended in Section 7 of that Act.

KRS 42.734 Kentucky Wireless Interoperability Executive Committee created

42.734. Kentucky Wireless Interoperability Executive Committee created The Kentucky Wireless Interoperability Executive Committee is hereby created to address communications interoperability, a homeland security issue which is critical to the ability of public safety first responders to communicate with each other by radio. The committee shall advise and make recommendations to the executive director of the Commonwealth Office of Technology regarding strategic wireless initiatives to achieve public safety voice and data communications interoperability. Effective: June 25, 2009 History: Repealed and reenacted 2009 Ky. Acts ch. 12, sec. 10, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 34, effective June 20, 2005. -- Created 2003 Ky. Acts ch. 164, sec. 1, effective June 24, 2003. Formerly codified as KRS 11.5161.

KRS 42.736 Definitions for KRS 42.734, 42.736, and 42.738

42.736. Definitions for KRS 42.734, 42.736, and 42.738 As used in this section and KRS 42.734 and 42.738, unless the context requires otherwise: (1) "Architecture" means the design principles, physical structure, and functional organization of a land mobile radio system; (2) "Frequency" means for a periodic function, the number of cycles or events per unit time that comprises the frequency spectrum used by or assigned to a wireless public safety voice or data communications system; (3) "Interoperability" means: (a) The ability of public safety agencies to be able to communicate with one another; to exchange voice or data with one another in real time; (b) The ability of systems, units, or forces to provide services to and accept services from other systems, units, or forces and to use the services so exchanged to enable them to operate effectively together; and (c) The condition achieved among communications-electronics systems or items of communications-electronic equipment when information or services can be exchanged directly and satisfactorily between them and their users; (4) "Primary wireless public safety voice or data communications systems" means a regular interacting group of base, mobile, and associated control and fixed relay stations intended to provide land mobile radio voice or data communications service over a single area of operation for public safety agencies. This definition shall not include "911" telephone systems; (5) "Public safety shared infrastructure" means any component that by the nature of its function or physical characteristics can be used by multiple agencies to implement or support primary wireless public safety voice or data communications systems. This shall include but not be limited to towers, equipment shelters, radios, and other electronic equipment, backbone communications networks, and communications- related software; (6) "Public safety working group" means a working group whose mission is to design and develop a seamless coordinated plan for the use of the public safety frequency spectrum as regulated by the Federal Communications Commission; (7) "Spectrum" means a usable radio frequency in the electromagnetic distribution; and (8) "Standards" means: (a) Engineering and technical requirements that are necessary to be employed in the design of systems, units, or forces and to use the services so exchanged to enable them to operate effectively together, including but not limited to operating frequencies, over-the-air protocols, and bandwidth; and (b) Established protocol that provides a common interface. Effective: June 25, 2009 History: Repealed, reenacted, and amended 2009 Ky. Acts ch. 12, sec. 11, effective June 25, 2009. -- Amended 2004 Ky. Acts ch. 48, sec. 1, effective July 13, 2004. -- Created 2003 Ky. Acts ch. 164, sec. 2, effective June 24, 2003. Formerly codified as KRS 11.5162.

KRS 42.738 Statewide public safety interoperability plan -- Annual report by executive director -- Duties of Kentucky Wireless Interoperability Executive Committee - - Membership -- Public Safety Working Group

42.738. Statewide public safety interoperability plan -- Annual report by executive director -- Duties of Kentucky Wireless Interoperability Executive Committee - - Membership -- Public Safety Working Group (1) The executive director shall establish and implement a statewide public safety interoperability plan. This plan shall include the development of required architecture and standards that will insure that new or upgraded Commonwealth public safety communications systems will interoperate. The Kentucky Wireless Interoperability Executive Committee shall be responsible for the evaluation and recommendation of all wireless communications architecture, standards, and strategies. The executive director shall provide direction, stewardship, leadership, and general oversight of information technology and information resources. The executive director shall report by September 15 annually to the Interim Joint Committee on Seniors, Veterans, Military Affairs, and Public Protection and the Interim Joint Committee on State Government on progress and activity by agencies of the Commonwealth to comply with standards to achieve public safety communications interoperability. (2) The Kentucky Wireless Interoperability Executive Committee shall serve as the advisory body for all wireless communications strategies presented by agencies of the Commonwealth and local governments. All state agencies in the Commonwealth shall present all project plans for primary wireless public safety voice or data communications systems for review and recommendation by the committee, and the committee shall forward the plans to the executive director for final approval. Local government entities shall present project plans for primary wireless public safety voice or data communications systems for review and recommendation by the Kentucky Wireless Interoperability Executive Committee. (3) The committee shall develop funding and support plans that provide for the maintenance of and technological upgrades to the public safety shared infrastructure, and shall make recommendations to the executive director, the Governor's Office for Policy and Management, and the General Assembly. (4) The executive director shall examine the project plans for primary wireless public safety voice or data communications systems of state agencies as required by subsection (2) of this section, and shall determine whether they meet the required architecture and standards for primary wireless public safety voice or data communications systems. (5) The Kentucky Wireless Interoperability Executive Committee shall consist of twenty (20) members as follows: (a) A person knowledgeable in the field of wireless communications appointed by the executive director who shall serve as chair; (b) The executive director of the Office of Infrastructure Services, Commonwealth Office of Technology; (c) The executive director of Kentucky Educational Television, or the executive director's designee; (d) The information technology lead of the Transportation Cabinet; (e) The information technology lead of the Justice and Public Safety Cabinet; (f) The information technology lead of the Department of Kentucky State Police; (g) The commissioner of the Department of Fish and Wildlife Resources, or the commissioner's designee; (h) The information technology lead of the Energy and Environment Cabinet; (i) The director of the Division of Emergency Management, Department of Military Affairs; (j) The executive director of the Kentucky Office of Homeland Security; (k) The information technology lead of the Department for Public Health, Cabinet for Health and Family Services; (l) A representative from an institution of postsecondary education appointed by the Governor from a list of three (3) names submitted by the president of the Council on Postsecondary Education; (m) The executive director of the Center for Rural Development, or the executive director's designee; (n) A representative from a municipal government to be appointed by the Governor from a list of three (3) names submitted by the Kentucky League of Cities; (o) A representative from a county government to be appointed by the Governor from a list of three (3) names submitted by the Kentucky Association of Counties; (p) A representative from a municipal police department to be appointed by the Governor from a list of three (3) names submitted by the Kentucky Association of Chiefs of Police; (q) A representative from a local fire department to be appointed by the Governor from a list of three (3) names submitted by the Kentucky Association of Fire Chiefs; (r) A representative from a county sheriff's department to be appointed by the Governor from a list of three (3) names submitted by the Kentucky Sheriffs' Association; (s) A representative from a local Emergency Medical Services agency to be appointed by the Governor from a list of three (3) names submitted by the Kentucky Board of Emergency Medical Services; and (t) A representative from a local 911 dispatch center to be appointed by the Governor from a list of three (3) names submitted by the Kentucky Chapter of the National Emergency Number Association/Association of Public Safety Communications Officials. (6) Appointed members of the committee shall serve for a two (2) year term. Members who serve by virtue of an office shall serve on the committee while they hold that office. (7) The committee shall meet quarterly, or as often as necessary for the conduct of its business. A majority of the members shall constitute a quorum for the transaction of business. Members' designees shall have voting privileges at committee meetings. (8) The committee shall be attached to the Commonwealth Office of Technology for administrative purposes only. Members shall not be paid and shall not be reimbursed for travel expenses. (9) The Public Safety Working Group is hereby created for the primary purpose of fostering cooperation, planning, and development of the public safety frequency spectrum as regulated by the Federal Communications Commission, including the 700 MHz public safety band. The group shall endeavor to bring about a seamless, coordinated, and integrated public safety communications network for the safe, effective, and efficient protection of life and property. The Public Safety Working Group membership and other working group memberships deemed necessary shall be appointed by the chair of the Kentucky Wireless Interoperability Executive Committee. (10) The committee may establish additional working groups as determined by the committee. Effective: June 29, 2021 History: Amended 2021 Ky. Acts ch. 81, sec. 5, effective June 29, 2021. -- Amended 2018 Ky. Acts ch. 78, sec. 5, effective July 14, 2018. -- Amended 2010 Ky. Acts ch. 24, sec. 34, effective July 15, 2010. -- Repealed, reenacted, and amended 2009 Ky. Acts ch. 12, sec. 12, effective June 25, 2009. -- Amended 2007 Ky. Acts ch. 85, sec. 6, effective June 26, 2007. -- Amended 2006 Ky. Acts ch. 193, sec. 8, effective July 12, 2006. -- Amended 2005 Ky. Acts ch. 85, sec. 35, effective June 20, 2005; ch. 95, sec. 6, effective June 20, 2005; and ch. 99, sec. 74, effective June 20, 2005. -- Amended 2004 Ky. Acts ch. 48, sec. 2, effective July 13, 2004. -- Created 2003 Ky. Acts ch. 164, sec. 3, effective June 24, 2003. Legislative Research Commission Note (7/13/2004). In subsection (5)(i) of this statute, a reference to "the Department of Emergency Management" has been changed to read "the Division of Emergency Management" to reflect the correct structure of the Department of Military Affairs. The Reviser of Statutes has corrected this manifest clerical error under the authority of KRS 7.136(1)(h). Formerly codified as KRS 11.5163.

KRS 42.740 Geographic Information Advisory Council -- Purpose -- Members -- Conflicts of interest

42.740. Geographic Information Advisory Council -- Purpose -- Members -- Conflicts of interest (1) There is hereby established a Geographic Information Advisory Council, attached to the Commonwealth Office of Technology for administrative pur poses, to advise the executive director of the Commonwealth Office of Technology on issues relating to geographic information and geographic information systems. (2) The council shall recommend policies and procedures that assist state and local jurisdictions in developing, deploying, and leveraging geographic information resources and geographic information systems technology for the purpose of improving public administration. (3) The council shall closely coordinate with users of geographic information sy stems to recommend policies and procedures that ensure the maximum use of geographic information by minimizing the redundancy of geographic information and geographic information resources, as well as to ensure that the geographic information clearinghouse maintained by the Division of Geographic Information Systems meets the needs of all state agencies. (4) (a) The Geographic Information Advisory Council shall consist of twenty -five (25) members and one (1) legislative liaison. The members shall be knowledgeable in the use and application of geographic information systems technology and shall have sufficient authority within their organizations to influence the implementation of council recommendations. (b) The council shall consist of: 1. The secretary of the Transportation Cabinet or his or her designee; 2. The secretary of the Cabinet for Health and Family Services or his or her designee; 3. The director of the Kentucky Geological Survey or his or her designee; 4. The secretary of the Finance and Administration Cabinet or his or her designee; 5. The executive director of the Commonwealth Office of Technology or her or his designee, who shall serve as chair; 6. The secretary of the Economic Development Cabinet or his or her designee; 7. The commissioner of the Department for Local Government or his or her designee; 8. The secretary of the Justice and Public Safety Cabinet or his or her designee; 9. One (1) member appointed by the Governor from a list of three (3) persons submitted by the president of the Council on Postsecondary Education; 10. The adjutant general of the Department of Military Affairs or his or her designee; 11. The commissioner of the Department of Education or his or her designee; 12. The secretary of the Energy and Environment Cabinet or his or her designee; 13. The Commissioner of the Department of Agriculture or his or her designee; 14. The secretary of the Tourism, Arts and Heritage Cabinet or his or her designee; 15. The executive director of the Office of Property Valuation or his or her designee; 16. One (1) member appointed by the Governor from a list of three (3) persons submitted by the president of the Kentucky League of Cities; 17. One (1) member appointed by the Governor from a list of three (3) persons submitted by the president of the Kentucky Association of Counties; 18. One (1) member appointed by the Governor from a list of three (3) persons submitted by the president of the Kentucky Chapter of the American Planning Association; 19. One (1) member appointed by the Governor from a list of three (3) persons submitted by the president of the Kentucky Association of Professional Surveyors; 20. One (1) member appointed by the Governor from a list of three (3) persons submitted by the president of the Kentucky Society of Professional Engineers; 21. One (1) member appointed by the Governor from a list of three (3) persons submitted by the chairman of the Kentucky Board of Registered Geologists; 22. One (1) member appointed by the Governor from a list of three (3) persons submitted by the president of the Council of Area Development Districts; 23. One (1) member appointed by the Governor from a list of three (3) persons submitted by the president of the Kentucky Association of Mapping Professionals; 24. One (1) member appointed by the Governor from a list of three (3) persons submitted by the executive director of the Kentucky Property Valuation Administrators Association; and 25. The executive director of the Kentucky Office of Homeland Security. (c) The council shall have one (1) nonvoting legislative liaison, to be appointed by the Legislative Research Commission. (5) The council may have committees and subcommittees as determined by the council or an executive committee, if an executive committee exists. (6) A member of the council shall not: (a) Be an officer, employee, or paid consultant of a business entity that has, or of a trade association for business entities that have, a substantial interest in the geographic information industry and is doing business in the Commonwealth; (b) Own, control, or have, directly or indirectly, more than ten percent (10%) interest in a business entity that has a substantial interest in the geographic information industry; (c) Be in any manner connected with any contract or bid for furnishing any governmental body of the Commonwealth with geographic information systems, the computers on which they are automated, or a service related to geographic information systems; (d) Be a person required to register as a lobbyist because of activities for compensation on behalf of a business entity that has, or on behalf of a trade association of business entities that have, substantial interest in the geographic information industry; (e) Accept or receive money or another thing of value from an individual, firm, or corporation to whom a contract may be awarded, directly or indirectly, by rebate, gift, or otherwise; or (f) Be liable to civil action or any action performed in good faith in the performance of duties as a council member. (7) Those council members specified in subsection (4)(b) of this section who serve by virtue of an office shall serve on the board while they hold that office. (8) Appointed members of the council shall serve for a term of four (4) years. Vacancies in the membership of the council shall be filled in the same manner as the original appointments. If a nominating organization changes its name, its successor organization having the same responsibilities and purposes shall be the nominating organization. (9) The council shall have no funds of its own, and council members shall not receive compensation of any kind from the council. (10) A majority of the members shall constitute a quorum for the transaction of business. Members' designees shall have voting privileges at council meetings. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 121, sec. 2, effective July 15, 2026. -- Amended 2022 Ky. Acts ch. 229, sec. 4, effective July 14, 2022. -- Amended 2019 Ky. Acts ch. 139, sec. 1, effective June 27, 2019. -- Amended 2012 Ky. Acts ch. 69 , sec. 10, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 35, effective July 15, 2010; and ch. 117, sec. 31, effective July 15, 2010. -- Repealed, reenacted, and amended 2009 Ky. Acts ch. 12, sec. 9, effective June 25, 2009; and amended 2009 Ky. Acts ch. 16, sec. 2, effective June 25, 2009. -- Amended 2007 Ky. Acts ch. 47, sec. 5, effective June 26, 2007; and ch. 85, sec. 5, effective June 26, 2007. -- Amended 2005 Ky. Acts ch. 85, sec. 33, effective June 20, 2005; ch. 95, sec. 5, effective June 20, 2005; ch. 99, sec. 5, effective June 20, 2005; and ch. 123, sec. 65, effective June 20, 2005. -- Repealed, reenacted, and amended 2000 Ky. Acts ch. 506, sec. 8, effective July 14, 2000; and ch. 536, sec. 8, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 48, sec. 4, effective July 15, 1998; ch. 69. sec. 23, effective July 15, 1998; and ch. 426, sec. 87, effective July 15, 1998. -- Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 40, effective May 30, 1997. -- Created 1994 Ky. Acts ch. 327, sec. 4, effective July 15, 1994. Formerly codified as KRS 11.515 and 61.958. Legislative Research Commission Note (7/14/2022). Under the authority of KRS 7.136(1), the Reviser of Statutes has corrected the format of this section following the enactment of 2022 Ky. Acts ch. 229, sec. 4. The words in the text were not changed.

KRS 42.742 Duties of Geographic Information Advisory Council

42.742. Duties of Geographic Information Advisory Council (1) The Geographic Information Advisory Council's duties shall include the following: (a) Recommending the development and adoption of policies and procedures related to geographic information and geographic information systems; (b) Providing input and recommendations for the development of a strategy for the maintenance and funding of a statewide base map and geographic information system; (c) Recommending standards on geographic information and geographic information systems for inclusion in the statewide architecture; (d) Contributing to the development and delivery of a statewide geographic information plan; (e) Recommending policies and procedures that ensure that the geographic information clearinghouse maintained by the Division of Geographic Information Systems meets the needs of all state agencies; (f) Overseeing the development of operating policies and procedures for the management of the council and any standing or ad hoc committees and associated advisory groups; and (g) Promoting collaboration and the sharing of data and data development, as well as other aspects of geographic information systems. (2) The Division of Geographic Information Systems shall provide necessary staff support services to the council. All cabinets, departments, divisions, agencies, and officers of the Commonwealth shall furnish the council necessary assistance, resources, information, records, or advice as it may require to fulfill its duties. Effective: July 14, 2022 History: Amended 2022 Ky. Acts ch. 229, sec. 5, effective July 14, 2022. -- Amended 2021 Ky. Acts ch. 81, sec. 6, effective June 29, 2021. -- Amended 2018 Ky. Acts ch. 78, sec. 6, effective July 14, 2018. -- Amended 2012 Ky. Acts ch. 69, sec. 11, effective July 12, 2012. -- Repealed, reenacted, and amended 2009 Ky. Acts ch. 12, sec. 13, effective June 25, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 36, effective June 20, 2005. -- Repealed, reenacted, and amended 2000 Ky. Acts ch. 506, sec. 9, effective July 14, 2000; and ch. 536, sec. 9, effective July 14, 2000. -- Created 1994 Ky. Acts ch. 327, sec. 5, effective July 15, 1994. Formerly codified as KRS 11.517 and 61.959.

KRS 42.744 Addition of nonlicensed raster-based datasets of publicly funded Kentucky locations to the Geospatial Data Warehouse -- Exceptions -- Confidentiality

42.744. Addition of nonlicensed raster-based datasets of publicly funded Kentucky locations to the Geospatial Data Warehouse -- Exceptions -- Confidentiality (1) All entities in Kentucky that create or purchase digital ortho-rectified aerial imagery, remotely sensed imagery, LiDAR, digital elevation models, or any other form of nonlicensed raster-based datasets of locations in Kentucky using public funds, in whole or in part, shall provide a copy of the information to the Commonwealth Office of Technology, Division of Geographic Information Systems, without cost, in order to allow the Commonwealth Office of Technology to effectively discharge its statutory responsibility to maintain an accurate and complete central statewide geographic information clearinghouse for official state use. The imagery provided to the Commonwealth Office of Technology shall be added to Kentucky's secure Geospatial Data Warehouse for official government use only. (2) All entities in Kentucky that create or purchase digital ortho-rectified aerial imagery, remotely sensed imagery, LiDAR, digital elevation models, or any other form of raster-based datasets of locations in Kentucky using public funds, in whole or in part, shall create or purchase that information in a nonlicensed format whenever such a format is available. (3) Subsection (1) of this section shall not apply to roads, land parcels, structure locations, or other vector-based datasets acquired with public funding. (4) The Commonwealth Office of Technology shall not disclose to the general public or make available for distribution, download, or purchase any data that an entity providing data under subsection (1) of this section has requested remain confidential. Effective: July 14, 2022 History: Amended 2022 Ky. Acts ch. 229, sec. 6, effective July 14, 2022. -- Amended 2021 Ky. Acts ch. 81, sec. 7, effective June 29, 2021. -- Amended 2018 Ky. Acts ch. 78, sec. 7, effective July 14, 2018. -- Amended 2012 Ky. Acts ch. 69, sec. 12, effective July 12, 2012. -- Repealed and reenacted 2009 Ky. Acts ch. 12, sec. 14, effective June 25, 2009. -- Created 2006 Ky. Acts ch. 206, sec. 1, effective July 12, 2006. Formerly codified as KRS 11.518.

KRS 42.746 Statewide planning and mapping system for public buildings

42.746. Statewide planning and mapping system for public buildings (1) To the extent funds are made available, the Commonwealth Office of Technology shall establish a statewide planning and mapping system for public buildings in this state for use by response agencies who are called to respond to an act of terrorism or an emergency. (2) The statewide planning and mapping system for public buildings shall include: (a) Floor plans, fire protection information, building evacuation plans, utility information, known hazards, and information on how to contact emergency personnel; (b) The manner by which the information required by paragraph (a) of this subsection shall be transferred to the system from state agencies and the local political subdivisions who participate in the system; (c) Standards for the software that shall be used by state agencies and local political subdivisions that participate in the system; (d) Conditions for use of the system by response agencies; (e) Guidelines for: 1. The accessibility and confidentiality of information contained within the system; and 2. The incorporation, in connection with the use of the system, of the items described in subsection (3)(b) of this section; (f) In accordance with information obtained by the Kentucky Office of Homeland Security, a priority for the distribution of any money that may be available for state agencies and political subdivisions to participate in the system; and (g) Guidelines recommended by the Division of Emergency Management for the training of persons employed by the response agencies concerning the use of the system. (3) To the extent money is available, state agencies and political subdivisions shall: (a) Participate in the statewide planning and mapping system; and (b) Incorporate into their use of the system, without limitation: 1. Evacuation routes and strategies for evacuation; 2. Alarms and other signals or means of notification; 3. Plans for remaining inside a building, room, structure, or other location during an emergency when egress may be impossible or when egress may present a more substantial risk than remaining inside; and 4. Training and strategies for prevention in connection with attacks involving violence. If a state agency or political subdivision uses its own planning and mapping system before the Commonwealth Office of Technology establishes a statewide planning and mapping system, the state agency or political subdivision may continue to use its system unless money is made available for the state agency or political subdivision to update or modify its system as necessary for inclusion in the statewide system. (4) The Commonwealth Office of Technology: (a) Shall pursue any money that may be available from the federal government for the development and operation of a statewide planning and mapping system for public buildings, and for the distribution of grants to state agencies and political subdivisions that participate in the system; and (b) May accept gifts, grants, and contributions for the development and operation of a statewide planning and mapping system, and for the distribution of grants to the state agencies and political subdivisions that participate in the system. (5) Each state agency and political subdivision that participates in the system shall, on or before July 1, 2007, and on or before July 1 of each year thereafter, submit to the Commonwealth Office of Technology a progress report setting forth, in accordance with regulations promulgated by the Commonwealth Office of Technology, the experience of the agency or political subdivision with respect to its participation in the system. The Commonwealth Office of Technology shall receive and process the progress reports, and provide a summarized overview of the system to the Legislative Research Commission on or before October 1, 2007, and on or before October 1 of each year thereafter. Effective: June 25, 2009 History: Repealed and reenacted 2009 Ky. Acts ch. 12, sec. 15, effective June 25, 2009. -- Created 2006 Ky. Acts ch. 223, sec. 1, effective July 12, 2006. Legislative Research Commission Note (7/12/2006). 2006 Ky. Acts ch. 193, sec. 14, instructs the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in the Act, as it confirms reorganization within the executive branch and establishes the Kentucky Office of Homeland Security. Such a correction has been made in this section. Formerly codified as KRS 11.520.

KRS 42.747 Blockchain Technology Working Group

42.747. Blockchain Technology Working Group (1) As used in this section, unless the context otherwise requires: (a) "Blockchain technology" means shared or distributed data structures or digital ledgers used in peer-to-peer networks that: 1. Store digital transactions; 2. Verify and secure transactions cryptographically; and 3. Allow automated self-execution of smart contracts; (b) "Peer-to-peer networks" means computer systems that are connected to each other over the Internet so that each computer system: 1. Is a client and a server simultaneously; and 2. Allows file sharing without use of a central server; (c) "Smart contract" means a computerized transaction protocol that self-executes the terms of a contract and that is integrated into the blockchain program architecture; and (d) "Contract" means an agreement of the parties in fact, as found in their language or inferred from other circumstances, including course of performance, course of dealing, or usage of trade, reached through offer and mutual acceptance by the parties to be legally bound by the terms of the agreement which includes valuable consideration for all parties. (2) There is hereby established a Blockchain Technology Working Group which shall be attached to the Commonwealth Office of Technology for administrative purposes. (3) The working group shall evaluate the feasibility and efficacy of using blockchain technology to enhance the security of and increase protection for the state's critical infrastructure, including but not limited to the electric utility grid, natural gas pipelines, drinking water supply and delivery, wastewater, telecommunications, and emergency services. The workgroup shall create a priority list of critical infrastructure that could benefit from the use of blockchain technology and then determine whether: (a) Blockchain fits the distributed nature of transactions; (b) The peer-to-peer network is robust enough to support the use of blockchain technology; (c) A cost-benefit analysis of blockchain for each case is warranted to demonstrate its value, applicability, or efficiency; and (d) If the parties involved in the blockchain would agree to its usage if deployed. (4) The workgroup shall consist of nine (9) members, three (3) of which shall be ex officio, as follows: (a) The chief information officer for the Commonwealth Office of Technology or his or her designee who shall serve as chair; (b) The secretary for the Energy and Environment Cabinet or his or her designee; (c) The chief information officer for the Finance and Administration Cabinet or his or her designee; (d) A representative designated by the executive director of the Kentucky Public Service Commission, who has knowledge of the spatial characteristics of the infrastructure used by public utilities; (e) The executive director of Kentucky Department of Homeland Security or his or her designee; (f) One (1) member in academia designated by the chief information officer of the Commonwealth Office of Technology, who has expertise in blockchain technology and its applicability to different industry sectors; (g) One (1) ex officio member representing municipal utilities designa ted by the Kentucky League of Cities; (h) One (1) ex officio member representing the investor -owned electric utilities designated by the executive director of the Kentucky Public Service Commission; and (i) One (1) ex officio member representing Kentucky e lectric cooperatives designated by the chairman of the board of the Kentucky Association of Electric Cooperatives. (5) The workgroup shall be staffed by the Commonwealth Office of Technology. (6) The workgroup shall report to the Governor and to the Legisl ative Research Commission by December 1 of each year. The report shall include the current priority list and a discussion of whether blockchain could be deployed, and any associated cost-benefit analysis. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 19, sec. 1, effective July 15, 2024. -- Created 2020 Ky. Acts ch. 108, sec. 1, effective July 15, 2020.

KRS 42.4501 Definitions for KRS 42.450 to 42.495

42.4501. Definitions for KRS 42.450 to 42.495 As used in KRS 42.450 to 42.495: (1) "Refund" means a payment of money from the State Treasury to a taxpayer, upon the authorization of the Department of Revenue following the submission of a timely request filed in accordance with applicable statutes and administrative regulations, representing all or part of an overpayment previously made by the taxpayer for a tax liability arising under KRS 143.020 or 143A.020; and (2) "Severance and processing taxes on coal collected annually" means the total amount of money collected from the tax imposed by KRS 143.020 in a given fiscal year, reduced by the total amount of refunds of that tax paid during the prior fiscal year. Effective: July 1, 2016 History: Created 2016 Ky. Acts ch. 110, sec. 1, effective July 1, 2016. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.4582 Local government economic development fund -- Adjustment for quarterly transfers -- Schedule of transfers from general fund

42.4582. Local government economic development fund -- Adjustment for quarterly transfers -- Schedule of transfers from general fund (1) There is hereby established in the State Treasury a fund entitled "Local Government Economic Development Fund." The fund may receive state appropriations, gifts, grants, and federal funds and shall be disbursed by the State Treasurer upon the warrant of the secretary of the Finance and Administration Cabinet. Any unallotted or unencumbered balances in the fund shall be invested as provided for in KRS 42.500(9). Income earned from the investments shall be prorated for grants to counties according to the allotment schedule set out in KRS 42.4592. (2) (a) Moneys shall be transferred from the general fund in an amount equal to fifty percent (50%) of the severance and processing taxes on coal collected annually, unless otherwise amended by the budget bill. (b) The transfers shall be made quarterly, based upon the revenue estimates prevailing at the time each quarterly transfe r is due. Each quarterly transfer shall be adjusted to account for refunds by determining the total amount of refunds paid in the prior fiscal year, dividing that amount by four (4), and reducing each transfer by this amount. The last quarterly transfer sh all be made after the close of the fiscal year accounting records, and shall be adjusted to provide the balance of the annual transfer required by this subsection. (c) The quarterly calculation and transfer of funds pursuant to this section shall be made only after distribution of the quarterly installment of the annual amount from the prior calendar year allowed as an incentive to an approved company under KRS 143.024 and 154.27-060. Effective: July 1, 2016 History: Amended 2016 Ky. Acts ch. 110, sec. 2, e ffective July 1, 2016. -- Amended 2012 Ky. Acts ch. 110, sec. 13, effective April 11, 2012. -- Amended 2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec. 15, effective August 30, 2007. -- Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 76, effective December 12, 1996. -- Amended 1996 Ky. Acts ch. 101, sec. 3, effective July 15, 1996. -- Created 1992 Ky. Acts ch. 107, sec. 4, effective July 1, 1992. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, F, 3, (4) at 2082. Legislative Research Commission Note (7/15/96). The reference to KRS 45.4592 at the end of subsection (1) of this statute has been corrected to read KRS 42.4592, remedying an inadvertent misnumbering in codification. See 1992 Ky. Acts ch. 107, secs. 4 and 7.

KRS 42.4585 Transfers from local government economic development fund to local government economic assistance fund -- Schedule of transfers

42.4585. Transfers from local government economic development fund to local government economic assistance fund -- Schedule of transfers (1) A portion of each quarterly transfer of moneys provided for in KRS 42.4582 shall be transferred from the local go vernment economic development fund into the local government economic assistance fund. (2) The amount transferred annually from the local government economic development fund into the local government economic assistance fund under the provisions of subsection (1) of this section shall be not less than an amount equal to fifteen percent (15%) of the severance and processing taxes on coal collected annually. (3) The quarterly calculation and transfer of funds pursuant to subsections (1) and (2) of this section shall be made only after distribution of the quarterly installment of the annual amount from the prior calendar year allowed as an incentive to an approved company under KRS 143.024 and 154.27 -060. Effective: April 11, 2012 History: Amended 2012 Ky. Acts ch. 110, sec. 14, effective April 11, 2012. -- Amended 2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec. 16, effective August 30, 2007. - - Amended 2002 Ky. Acts ch. 338, sec. 2, effective July 15, 2002. -- Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 77, effective December 12, 1996. -- Created 1992 Ky. Acts ch. 107, sec. 5, effective July 1, 1992. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.4588 Local Government Economic Development Program -- Use of grants -- Procedures

42.4588. Local Government Economic Development Program -- Use of grants -- Procedures (1) (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). (2) Grants obtained under this program shall be used for: (a) Industrial development projects if an industrial f irm 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 fac ilities 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. (3) 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 wor k; 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) 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. (b) 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. (c) 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. (d) 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 extrao rdinary 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. 499, sec. 6, effective July 15, 1994. – Created 1992 Ky. Acts ch. 107, sec. 6, effective July 1, 1992. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055. 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.

KRS 42.4592 Allocation of remaining moneys in local government economic development fund

42.4592. Allocation of remaining moneys in local government economic development fund (1) Moneys remaining in the local government economic development fund following the transfer of moneys to the local government economic assistance fund provided for in KRS 42.4585 shall be allocated as follows: (a) Thirty-three and one-third percent (33-1/3%) shall be allocated to each coal producing county on the basis of the ratio of total coal severed in the current and preceding four (4) years in each respective county to the total coal severed statewide in the current and four (4) preceding years; (b) Thirty-three and one-third percent (33-1/3%) shall be allocated quarterly to each coal-producing county on the basis of the following factors, which shall be computed for the current and four (4) preceding years, and which shall be equally weighted: 1. Percentage of employment in mining in relation to total employment in the respective county; 2. Percentage of earnings from mining in relation to total earnings in the respective county; and 3. Surplus labor rate; and (c) Thirty-three and one-third percent (33-1/3%) shall be reserved for expenditure for industrial development projects benefiting two (2) or more coal -producing counties. For purposes of this paragraph, "coal -producing county" shall mean a county which has produced coal in the current or any one of the four (4) preceding years. (2) (a) For purposes of paragraph (b) of subsection (1) of this section, "percentage of employment in mining" and "percentage of earni ngs from mining" shall be provided by the Department of Workforce Development in the Education and Labor Cabinet, and "surplus labor rate" shall be the rate published for the latest available five (5) year period by the Department of Workforce Development as provided in paragraph (b) of this subsection. (b) 1. Each year the Department of Workforce Development shall estimate surplus labor for each county and for the Commonwealth and shall annually publish an estimate of the surplus labor rate for each county and the Commonwealth. 2. The estimate of surplus labor for each county and for the Commonwealth shall be made using the best practical method available at the time the estimates are made. In determining the method to be adopted, the Department of Workforce Development may consult with knowledgeable individuals, including but not limited to the Office of the United States Bureau of Labor Statistics, state and national researchers, state and local officials, and staff of the Legislative Research Commission. The description of the method used to estimate surplus labor shall be reported in each annual publication provided for in subparagraph 1. of this paragraph. 3. For purposes of this section, "surplus labor" means the total number of residents who can be classified as unemployed or as discouraged workers, and "surplus labor rate" means the percentage of the potential civilian labor force which is surplus labor. (3) The funds allocated under the provisions of paragraphs (a) and (b) of subsection (1) of this section shall retain their identity with respect to the county to which they are attributable, and a separate accounting of available moneys within the fund shall be maintained for the respective counties. Accounting for funds allocated under the provisions of this section shall be by the Department for Local Government. Effective: July 1, 2022 History: Amended 2022 Ky. Acts ch. 236, sec. 17, effective July 1, 2022. -- Amended 2019 Ky. Acts ch. 146, sec. 5, effective June 27, 2019. -- Amended 2016 Ky. Acts ch. 110, sec. 3, effective July 1, 2016. -- Amended 2013 Ky. Acts ch. 49, sec. 1, effective June 25, 2013. -- Amended 2010 Ky. Acts ch. 117, sec. 26, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 11, sec. 8, effective June 25, 2009. -- Amended 2007 Ky. Acts ch. 47, sec. 20, effective June 26, 2007. -- Amended 2006 Ky. Acts ch. 211, sec. 10, effective July 12, 2006. -- Amended 1998 Ky. Acts ch. 69, sec. 11, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 271, sec. 4, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 224, sec. 16, effective July 15, 1994. -- Created 1992 Ky. Acts ch. 107, sec. 7, effective July 1, 1992. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (3) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

KRS 42.4595 Authority for administrative regulations

42.4595. Authority for administrative regulations The Department for Local Government may promulgate administrative regulations to implement the provisions of KRS 42.4582, 42.4585, 42.4592, and KRS 42.4588 as it relates to KRS 42.4592(1)(a) and (b). The Cabinet for Economic Development or the Kentucky Economic Development Finance Authority may promulgate administrative regulations to implement the provisions of KRS 42.4588 as it relates to KRS 42.4592(1)(c). Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 117, sec. 27, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 47, sec. 21, effective June 26, 2007. -- Amended 2006 Ky. Acts ch. 210, sec. 3, effective July 12, 2006. -- Amended 2002 Ky. Acts ch. 338, sec. 45, effective July 15, 2002. -- Amended 2001 Ky. Acts ch. 34, sec. 3, effective June 21, 2001. -- Amended 1998 Ky. Acts ch. 69, sec. 12, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 499, sec. 7, effective July 15, 1994. – Created 1992 Ky. Acts ch. 107, sec. 8, effective July 1, 1992. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 10, (3) at 2054. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (1) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (2) at 2055. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 11, (4) at 2055.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=37225Fetched: 10/20/2026