For AI agents: read the machine-readable documentation index at /llms.txt or the single-file full reference at /llms-full.txt.
Form a Business

KENTUCKY INFRASTRUCTURE AUTHORITY

KRS tit. XVIII, ch. 224A
in effect

KRS 224A.011 Definitions for chapter

224A.011. Definitions for chapter As used in this chapter, unless the context requires otherwise: (1) "Administrative fee" means a fee assessed and collected by the authority from borrowers and applicants under assistance agreements, to be used for operational expenses of the authority; (2) "Applicable interest rate" means the rate of interest which shall be used as part of the repayment criteria for an assistance agreement between a governmental agency and the authority, and shall be determined by the authority pertinent to the source of funds from which the assistance agreement is funded; (3) "Applicant" means a governmental agency or private sector entity that has submitted an application to the office for a grant from the broadband deployment fund; (4) "Application" means an application submitted by an applicant for a grant from the broadband deployment fund; (5) "Asset management plan" means a plan for the water and wastewater utility that includes: (a) Identification of all the capital assets owned by or used in the operations of the utility; (b) A detailed engineering analysis of asset condition and useful life to be used to develop an infrastructure inspection, repair, and maintenance program; (c) A description of how the utility will annually review the infrastructure needs; (d) A description of how the utility will conduct planned maintenance; (e) A description of how the utility will conduct timely repair, replacement, or upgrade of capital assets, including pumps, motors, and pipes; and (f) An analysis of customer rates necessa ry to support the asset management plan, including emergency repairs; (6) "Assistance agreement" means the agreement to be made and entered into by and between a governmental agency or a private entity and the authority, as authorized by this chapter, providing for a lease, loan, services, or grant to a governmental agency or a private entity or for the purchase of obligations issued by the governmental agency, and for the repayment thereof to the authority by the governmental agency or a private entity; (7) "Authority" means the Kentucky Infrastructure Authority, which is created by this chapter; (8) "Authority revenues" means the totality of all: (a) Service charges; (b) Utility tax receipts, to the extent not otherwise committed and budgeted by the authority during any fiscal period of the authority; (c) Any gifts, grants, or loans received, to the extent not otherwise required to be applied; (d) Any and all appropriations made to the authority by the General Assembly of the Commonwealth of Kentucky, to th e extent not otherwise required to be applied; (e) All moneys received in repayment of and for interest on any loans made by the authority to a governmental agency, except as provided in KRS 224A.111, 224A.1115, and 224A.112, or as principal of and interest on any obligations issued by a governmental agency and purchased by the authority, or as receipts under any assistance agreement; (f) The proceeds of bonds or long -term debt obligations of governmental agencies pledged to the payment of bond anticipation notes issued by the authority on behalf of the said governmental agency to provide interim construction financing; and (g) Payments under agreements with any agencies of the state and federal government; (9) "Borrower or borrowing entity" means any agency of the state or its political subdivisions, any city, or any special district created under the laws of the state acting individually or jointly under interagency or interlocal cooperative agreements to enter into assistance agreements with the authority; (10) "Broadband deployment fund" means a fund to assist with the construction, development, or improvement of broadband infrastructure, broadband services, or technologies that constitute a part of, or are related to, broadband infrastructure or broadband services, to provide for broadband service in underserved or unserved areas of the Commonwealth; (11) "Broadband deployment project" means a proposed deployment of broadband service infrastructure set forth in an application for which grant funding under KRS 224A.112; (12) "Broadband deployment project area" means a geographic area determined by census block, shapefile geospatial data, or list of addresses which has been proposed for grant funding under this section and KRS 224A.110, 224A.112, and 224A.1121; (13) "Census block" means the smallest geographic unit used by the United States Census Bureau that is reported on the Federal Communications Commission (FCC) Form 477 relating to fixed broadband deployment data; (14) "Community flood damage abatement p roject" means any structural or nonstructural study, plan, design, construction, development, improvement, or other activity to provide for flood control; (15) "Construction" means and includes but is not limited to: (a) Preliminary planning to determine the economic and engineering feasibility of infrastructure projects, the engineering, architectural, legal, fiscal, and economic investigations, and studies necessary thereto, and surveys, designs, plans, working drawings, specifications, procedures, and ot her actions necessary to the construction of infrastructure or solid waste projects; (b) The erection, building, acquisition, alteration, remodeling, improvement, or extension of infrastructure or solid waste projects; and (c) The inspection and supervision of the construction of infrastructure or solid waste projects and all costs incidental to the acquisition and financing of same. This term shall also relate to and mean any other physical devices or appurtenances in connection with, or reasonably attendant to, infrastructure or solid waste projects; (16) "Dams" means any artificial barrier, including appurtenant works, which does or can impound or divert water, and which either: (a) Is or will be twenty-five (25) feet or more in height from the natural bed of the stream or watercourse at the downstream toe of the barrier, as determined by the Energy and Environment Cabinet; or (b) Has or will have an impounding capacity at maximum water storage elevation of fifty (50) acre feet or more; (17) "Distribution facilities" means all or any part of any facilities, devices, and systems used and useful in obtaining, pumping, storing, treating, and distributing water for agricultural, industrial, commercial, recreational, public, and domestic use; (18) "Energy and Environment Cabinet" means the Kentucky Energy and Environment Cabinet, or its successor, said term being meant to relate specifically to the state agency which is designated as the water pollution agency for the Commonwealth of Kentucky, for purposes of the federal act; (19) "Federal act" means the Federal Clean Water Act, 33 U.S.C. sec. 1251 et seq., as said federal act may be amended from time to time in the future, or any other enactment of the United States Congress providing funds that may assist in carrying out the purposes of the authority; (20) "Federally assisted wastewater revolving fund" means that fund which will receive federal and state funds or the proceeds from the sale of revenue bonds of the authority for the purpose of providing loans to finance construction of publicly owned treatment works as defined in Section 212 of the federal act and for the implementation of a management program established under Section 319 of the federal act and for the development and implementation of a conservation and management plan under Section 320 of the federal act; (21) "Governmental agency" means any incorporated city or municipal corporation, or other agency, or unit of government within or a department or a cabinet of the Commonwealth of Kentucky, now having or hereafter granted, the authority and power to finance, acquire, construct, or operate infrastructure or solid waste projects. This definition shall specifically apply but not by way of limitation to incorporated cities; counties, including any counties containing a metropolitan sewer district; sanitation districts; water districts; water associations; sewer construction districts; metropolitan sewer districts; sanitation taxing districts; a regional wastewater commission established under KRS 65.8901 to 65.8923; and any other agencies, commissions, districts, or authorities (either acting alone, or in combination with one another in accordance with any regional or area compact, or intergovernmental cooperative agreements), now or hereafter established in accordance with the laws of the Commonwealth of Kentucky having and possessing the described powers described in this subsection; (22) "Industrial waste" means any liquid, gaseous, or solid waste substances resulting from any process of industry, manufacture, trade, or business, or from the mining or taking, development, processing, or recovery of any natural resources, including heat and radioactivity, together with any sewage as is present therein, which pollutes the waters of the state, and specifically, but not by way of limitation, means heat or thermal differentials created in the waters of the state by any industrial processing, generating, or manufacturing processes; (23) "Infrastructure project" means any construction or acquisition of treatment works, facilities related to the collection, transportation, and treatment of wastewater as defined in KRS 65.8903, distribution facilities, or water resources projects instituted by a governmental agency or an investor-owned water utility which is approved by the authority and, if required, by the Energy and Environment Cabinet, Public Service Commission, or other agency; solid waste projects; dams; storm water control and treatment systems; gas or electric utility; broadband deployment project; or any other public utility or public service project which the authority finds would assist in carrying out the purposes set out in KRS 224A.300; (24) "Infrastructure revolving fund" means that fund which will receive state funds, the proceeds from the sale of revenue bonds of the authority or other moneys earmarked for that fund for the purpose of providing loans or grants to finance construction or acquisition of infrastructure projects as defined in this section; (25) "Loan or grant" means moneys to be made available to governmental agencies by the authority for the purpose of defraying all or any part of the total costs incidental to construction or acquisition of any infrastructure project; (26) "Market interest rate" means the interest rate determined by the authority under existing market conditions at the time the authority shall provide financial assistance to a governmental agency; (27) "Merger" means the act of merging ownership, consolidating, or establishing common management or operations with a contract of more than five (5) years between more than one (1) governmental agency or utility as defined in KRS 278.010. This may include changes to contracts already in place. Merger does not require a physical connection to be established; (28) "Obligation of a governmental agency" means a revenue bond, bond anticipation note, revenue anticipation note, lease, or other obligation issued by a governmental agency under KRS 58.010 et seq. or other applicable statutes; (29) "Office" means the Office of Broadband Development; (30) "Person" means any individual, firm, partnership, association, corporation, or governmental agency; (31) "Pollution" means the placing of any noxious or deleterious substances ("pollutants"), including sewage and industrial wastes, in any waters of the state or affecting the properties of any waters of the state in a manner which renders the waters harmful or inimical to the public health or to animal or aquatic life, or to the use, present or future, of these waters for domestic water supply, industrial or agricultural purposes, or recreational purposes; (32) "Prioritization schedules" means the list of wastewater treatment works, distribution facilities and water resources projects which the Energy and Environment Cabinet has evaluated and determined to be of priority for receiving financial assistance from the federally assisted wastewater revolving fund and the federally assisted drinking water revolving fund, or the list of infrastructure projects which the authority has evaluated and determined to be of priority for receiving financial aid from the infrastructure revolving fund. The evaluation by the authority of infrastructure projects for water systems shall be undertaken with input from the appropriate area development district; (33) "Recovered material" means those materials which have known current use, reuse, or recycling potential, which can be feasibly used, reused, or recycled, and which have been diverted or removed from the solid waste stream for sale, use, reuse, or recycling, whether or not requiring subsequent separation and processing but does not include materials diverted or removed for purposes of energy recovery or combustion except refuse-derived fuel (RDF), which shall be credited as a recovered material in an amount equal to that percentage of the municipal solid waste received on a daily basis at the processing facility and processed into RDF; but not to exceed fifteen percent (15%) of the total amount of the municipal solid waste received at the processing facility on a daily basis; (34) "Recovered material processing facility" means a facility engaged solely in the storage, processing, and resale or reuse of recovered material but does not mean a solid waste facility if solid waste generated by a recovered material processing facility is managed in accordance with KRS Chapter 224 and administrative regulations adopted by the cabinet; (35) "Revenue bonds" means special obligation bonds issued by the authority as provided by the provisions of this chapter, which are not direct or general obligations of the state, and which are payable only from a pledge of, and lien upon, authority revenues as provided in the resolution authorizing the issuance of the bonds, and shall include revenue bond anticipation notes; (36) "Service charge" means any monthly, quarterly, semiannual, or annual charge to be imposed by a governmental agency, or by the authority, for any infrastructure project financed by the authority, which service charge arises by reason of the existence of, and requirements of, any assistance agreement; (37) "Sewage" means any of the waste products or excrements, or other discharges from the bodies of human beings or animals, which pollute the waters of the state; (38) "Shapefile" means a file format for storing, depicting, and analyzing geospatial data showing broadband coverage; (39) "Solid waste" means "solid waste" as defined by KRS 224.1-010(30)(a); (40) "Solid waste facility" means any facility for collection, handling, storage, transportation, transfer, processing, treatment, or disposal of solid waste, whether the facility is associated with facilities generating the waste or otherwise, but does not include a container located on property where the waste is generated and which is used solely for the purpose of collection and temporary storage of that solid waste prior to off-site disposal, or a recovered material processing facility; (41) "Solid waste project" means construction, renovation, or acquisition of a solid waste facility which shall be instituted and owned by a governmental agency; (42) "Solid waste revolving fund" means that fund which shall receive state funds, the proceeds from the sale of revenue bonds of the authority, or other moneys earmarked for the purpose of providing loans or grants to finance solid waste projects defined in this section; (43) "State" means the Commonwealth of Kentucky; (44) "System" means the system owned and operated by a governmental agency with respect to solid waste projects, treatment works, or infrastructure projects financed as provided by the assistance agreement between the governmental agency and the authority; (45) "Treatment works" or "wastewater treatment works" means all or any part of any facilities, devices, and systems used and useful in the storage, treatment, recycling, and reclamation of wastewater or the abatement of pollution, including facilities for the treatment, neutralization, disposal of, stabilization, collecting, segregating, or holding of wastewater, including without limiting the generality of the foregoing, intercepting sewers, outfall sewers, pumping power stations, and other equipment and their appurtenances; extensions, improvements, remodeling, additions, and alterations thereof, and any wastewater treatment works, including site acquisition of the land that will be an integral part of the wastewater treatment process, or is used for ultimate disposal of residues resulting from wastewater treatment, together with any other facilities which are deemed to be treatment works in accordance with the federal act; (46) "Underserved area" means any project area where broadband service with a minimum one hundred (100) megabits per second downstream and twenty (20) megabits per second upstream is not available; (47) "Unserved area" means any project area where broadband service with a minimum twenty-five (25) megabits per second downstream and three (3) megabits per second upstream is not available; (48) "Utility tax" means the tax which may be imposed by the authority on every purchase of water or sewer service in the Commonwealth of Kentucky; (49) "Variable rate revenue bonds" means revenue bonds the rate of interest on which fluctuates either automatically by reference to a predetermined formula or index or in accordance with the standards set forth in KRS 224A.120; (50) "Wastewater" means any water or liquid substance containing sewage, industrial waste, or other pollutants or contaminants derived from the prior use of these waters; (51) "Water resources" means all waters of the state occurring on the surface, in natural or artificial channels, lakes, reservoirs, or impoundments, and in subsurface aquifers, which are available, or which may be made available to agricultural, industrial, commercial, recreational, public, and domestic users; (52) "Water resources project" means any structural or nonstructural study, plan, design, construction, development, improvement, or any other activity including programs for management, intended to conserve and develop the water resources of the state and shall include all aspects of water supply, facilities to collect, transport, and treat wastewater as defined in KRS 65.8903, flood damage abatement, navigation, water- related recreation, and land conservation facilities and measures; and (53) "Waters of the state" means all streams, lakes, watercourses, waterways, ponds, marshes, wells, springs, irrigation systems, drainage systems, and all other bodies or accumulations of water, surface and underground, natural or artificial, which are situated wholly or partly within, or border upon, this state, or are within its jurisdiction, except those private waters which do not combine or effect a junction with natural, surface, or underground waters. Effective: June 29, 2023 History: Amended 2023 Ky. Acts ch. 179, sec. 1, effective June 29, 2023. -- Amended 2022 Ky. Acts ch. 177, sec. 3, effective July 14, 2022; and ch. 202, sec. 2, effective April 14, 2022. -- Amended 2020 Ky. Acts ch. 72, sec. 1, effective July 15, 2020. -- Amended 2017 Ky. Acts ch. 117, sec. 27, effective June 29, 2017. -- Amended 2011 Ky. Acts ch. 98, sec. 19, effective June 8, 2011. -- Amended 2010 Ky. Acts ch. 24, sec. 385, effective July 15, 2010. -- Amended 2006 Ky. Acts ch. 134, sec. 1, effective July 12, 2006. -- Amended 2002 Ky. Acts ch. 342, sec. 15, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 529, sec. 15, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 69, sec. 73, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 373, sec. 1, effective July 15, 1994. – Amended 1991 (1st Extra. Sess.) Ky. Acts ch. 12, sec. 42, effective February 26, 1991. -- Amended 1990 Ky. Acts ch. 217, sec. 1, effective July 13, 1990; and ch. 477, sec. 2, effective July 13, 1990. -- Created 1988 Ky. Acts ch. 124, sec. 1, effective March 31, 1988.

KRS 224A.013 Remediation of property as qualified infrastructure project

224A.013. Remediation of property as qualified infrastructure project Remediation of a property owned by a governmental agency in accordance with KRS 224.1-510 to 224.1-532 shall qualify as an infrastructure project for the purposes of this chapter. Effective: June 21, 2001 History: Created 2001 Ky. Acts ch. 128, sec. 15, effective June 21, 2001.

KRS 224A.020 Legislative finding as to infrastructure projects

224A.020. Legislative finding as to infrastructure projects The General Assembly of the Commonwealth of Kentucky finds as a fact that the polluting and befouling of the waters of the state has harmed, and is presently harming and injuring, the state's abundant water resources, and, if unabated, will continue to harm such state water resources, and will endanger the health, safety, welfare and well-being of the general public, and the ability of the state to provide essential governmental services for the benefit of the public, and that such situation, if allowed to continue unchecked, will destroy the natural chemical, physical, and biological integrity of the waters of the state. Further, the conservation, development and proper use of the water resources of the state are of vital importance as a result of population expansion and concentration, industrial growth and technological advances. It is hereby found and determined to be essential to the preservation of the natural water resources, economic potential, and general well-being of the state that, to the maximum and greatest extent possible, the state should and must actively engage in a program of assistance to governmental agencies whereby infrastructure projects may be more economically provided so as to better serve the general public of the state. Effective: March 31, 1988 History: Amended 1988 Ky. Acts ch. 124, sec. 2, effective March 31, 1988. -- Amended 1974 Ky. Acts ch. 336, sec. 2. -- Created 1972 Ky. Acts ch. 329, sec. 2.

KRS 224A.030 Creation of Kentucky Infrastructure Authority -- Membership

224A.030. Creation of Kentucky Infrastructure Authority -- Membership (1) There is hereby created the Kentucky Infrastructure Authority, which authority shall be a body corporate and politic, constituting a public corporation and a governmental agency and instrumentality of the state. The affairs of the authority shall be managed and carried out by a board consisting of eleven (11) members. The secretaries of the Economic Development, Finance and Administration, and Energy and Environment Cabinets; the executive director of the Public Service Commission; and the commissioner of the Department for Local Government shall serve as ex officio members of the authority. The secretaries, the executive director, and the commissioner may designate alternates. T he Governor shall additionally appoint six (6) at-large members. One (1) member shall be selected from a list of three (3) nominees submitted by the Kentucky Association of Counties, two (2) members selected from a list of six (6) nominees submitted by the Kentucky League of Cities, one (1) of whom shall represent a municipal utility that provides water and wastewater service, one (1) member selected from a list of three (3) nominees submitted by the Kentucky Rural Water Association, one (1) member representing for-profit private water companies, and one (1) member selected from a list of three (3) nominees submitted by the Kentucky section of the American Water Works Association. As the terms of the at -large members expire, the Governor shall appoint successors for terms of four (4) years and until their successors are appointed. The members shall constitute the Kentucky Infrastructure Authority, with power in that name to contract and be contracted with, sue and be sued, have and use a corporate seal, and e xercise, in addition to the powers and functions specifically stated in this chapter, all of the usual powers of private corporations to the extent that the powers are not inconsistent with specifically enumerated powers of the authority. In the carrying o ut of its purposes and the exercise by it of the powers conferred by this chapter, the authority is deemed and declared to be performing essential governmental functions and public purposes of the state. (2) The members of the authority shall receive no co mpensation for their services in their official capacity but shall be entitled to reimbursement for all reasonable expenses necessarily incurred in connection with performance of their duties and functions as authority members. (3) Six (6) members of the authority shall constitute a quorum for the transaction of business, and in the absence of a quorum, one (1) or more members may adjourn from time to time until a quorum is convened. The members of the authority shall choose from their ranks a chair and a vice chair. The authority shall elect a secretary and a treasurer who shall not be members of the authority, each of whom shall serve at the pleasure of the authority and shall receive compensation as may be determined by the authority. (4) (a) The authority shall, for administrative purposes, be attached to the Department for Local Government, which shall provide any office space required by the authority. (b) The secretary of the authority shall at all times maintain therein complete records of all of the authority's actions and proceedings which shall constitute public records open to inspection at all reasonable times. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 19, sec. 3, effective July 15, 2024. -- Amended 2010 Ky. Acts ch. 24, sec. 386, effective July 15, 2010; and ch. 117, sec. 85, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 12, sec. 49, effective June 25, 2009; and ch. 29, sec. 1, effective June 25, 2009. -- Amended 2007 Ky. Acts ch. 47, sec. 89, effective June 26, 2007. -- Amended 2000 Ky. Acts ch. 529, sec. 16, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 69, sec. 74, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 373, sec. 2, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 105, sec. 73, effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 477, sec. 5, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 124, sec. 3, effective March 31, 1988. -- Amended 1984 Ky. Acts ch. 216, sec. 10, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 396, sec. 51, effective July 15, 1982. -- Created 1972 Ky. Acts ch. 329, sec. 3.

KRS 224A.035 Purpose and status of Kentucky Infrastructure Authority

224A.035. Purpose and status of Kentucky Infrastructure Authority (1) The Kentucky Infrastructure Authority is created solely to perform essential governmental functions and to serve the public purpose of engaging in a program of assistance to governmental agencies in the state with respect to the: (a) Construction, acquisition, and maintenance of infrastructure projects; and (b) Technical, managerial, and operational capacity of the agency's public drinking water and wastewater systems. (2) In accomplishing these purposes, the Kentucky Infrastructure Authority shall be and constitute a de jure municipal corporation and political subdivision of the state. Effective: July 14, 2022 History: Amended 2022 Ky. Acts ch. 177, sec. 4, effective July 14, 2022. -- Amended 1988 Ky. Acts ch. 124, sec. 4, effective March 31, 1988. -- Amended 1984 Ky. Acts ch. 216, sec. 11, effective July 13, 1984. -- Created 1976 Ky. Acts ch. 204, sec. 1.

KRS 224A.040 Construction or acquisition of infrastructure projects or improvement of public drinking water and wastewater systems

224A.040. Construction or acquisition of infrastructure projects or improvement of public drinking water and wastewater systems The authority may, pursuant to the terms, conditions, restrictions and requirements of this chapter, assist with the construction or acquisition of infrastructure projects or with the improvement of the technical, managerial, or operational capacity of public drinking water and wastewater systems by: (1) Leasing an infrastructure project; (2) Making loans or grants as funds are available, to any governmental agency; or (3) Purchasing obligations of a governmental agency, provided that any financial assistance supplied to the governmental agency, as defined in KRS 224A.011, will not cause the interest on current or future state agency or authority obligations, if excludable from gross income for federal tax purposes, to be included in gross income for federal tax purposes. Effective: July 14, 2022 History: Amended 2022 Ky. Acts ch. 177, sec. 5, effective July 14, 2022. -- Amended 1988 Ky. Acts ch. 124, sec. 5, effective March 31, 1988. -- Amended 1974 Ky. Acts ch. 336, sec. 3, effective July 13, 1984. -- Created 1972 Ky. Acts ch. 329, sec. 4.

KRS 224A.050 Use of funds

224A.050. Use of funds It is hereby found and declared as a legislative finding of fact that in performing its duties and responsibilities, the authority is performing and carrying out essential governmental functions. The authority may, from time to time, receive and accept any and all appropriations to the authority which may be made by the General Assembly of the state, and the appropriations may be made to the authority. The authority may, from time to time, receive and accept from the state, its agencies, and any federal agency, grants for, or in aid of, any infrastructure project, and grants for, or in aid of, research or management studies or training projects related to the purposes for which the authority is created, the grants or contributions to be held, used, and applied only for the purposes for which the grants and contributions are made and received. Effective: March 31, 1988 History: Amended 1988 Ky. Acts ch. 124, sec. 6, effective March 31, 1988. -- Created 1972 Ky. Acts ch. 329, sec. 5.

KRS 224A.060 Authority is taxing district -- Power to levy taxes

224A.060. Authority is taxing district -- Power to levy taxes The authority is hereby declared to constitute an independent taxing district within the meaning of the Constitution of the Commonwealth of Kentucky, which authority, as an independent taxing district, shall encompass the entire geographical area of the Commonwealth of Kentucky. The General Assembly finds and determines as a legislative finding of fact that the use of water in any manner tending to contaminate it creates a pollutant, and that the public health, safety, and welfare of the citizens of Kentucky will best be served by the proper disposition thereof according to the highest public health standards. The carrying out of such objectives serves a statewide public purpose, not related to any specific area or locality of the state, but affecting the welfare and health of all Kentucky citizens and the future of the state, both functionally and economically. The authority, upon resolution duly adopted by its governing body, as an independent taxing district within the Commonwealth of Kentucky, may levy and collect a tax upon every purchase of water service or sewer service in the Commonwealth of Kentucky, such tax to be equal to not more than two percent (2%) of the gross amount of each such purchase of water service or sewer service. All of such utility tax receipts shall, upon receipt, be and constitute authority revenues, and may be used, treated and applied by the authority in common with other authority revenues, to carry out the purposes for which the authority is created, including payment of principal and interest on authority revenue bonds; provided, however, that in connection with the issuance of authority revenue bonds, the authority may pledge such utility tax receipts for bond amortization purposes only to the extent same may be actually levied, collected, and received by the authority, and to the extent same are not otherwise committed or budgeted by the authority during any fiscal period of the authority, and no covenant shall be made by the authority for the continuation of such utility tax in futuro, without the requisite vote required by the provisions of the Constitution of the Commonwealth of Kentucky. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 373, sec. 3, effective July 15, 1994. -- Created 1972 Ky. Acts ch. 329, sec. 6.

KRS 224A.070 Powers

224A.070. Powers The authority may carry out and perform the following essential governmental functions of statewide import and concern: (1) To promulgate administrative regulations and adopt bylaws for the regulation of its affairs and the conduct of its business, which shall define with specificity conditions precedent under which applications for loans or grants may be made and the order of priority upon which applications shall be acted upon; (2) To retain an executive director, who shall be experienced and knowledgeable in the fields in which the authority may act, together with other employees, including for example only, engineers, accountants, and attorneys, necessary and appropriate to enable the authority to fulfill its duties, functions, and responsibilities; (3) To adopt a corporate seal; (4) To sue and be sued in its own name and to have the right, power, and authority to enforce its obligations and covenants made pursuant to the provisions of this chapter; (5) To levy a tax on every purchase of water service and sewer service in the state, such tax to be equal to not more than two percent (2%) of the gross amount of the bill for water services rendered; (6) To approve or reject applications made to the authority for loans or grants; (7) To lease an infrastructure project or make loans or grants to or purchase or refinance obligations of any governmental agency for the purpose of assisting the governmental agency in the construction of an infrastructure project. A lease, loan, or grant shall be in accordance with the terms and conditions of an assistance agreement by and between the authority and the governmental agency, which shall include the provisions and conditions specified in KRS 224A.100, and such other reasonable terms and conditions as the authority shall determine; (8) Without reference to the provisions of KRS Chapter 56, to acquire and hold in the name of the authority, by the exercise of the power of eminent domain pursuant to the Eminent Domain Act of Kentucky, the real property or rights therein, including rights-of-way, easements and licenses, and the personal property reasonably deemed necessary to effectuate the development, implementation, financing, and construction or acquisition of any infrastructure project, and to make the properties available to a governmental agency in connection with an infrastructure project; (9) To receive service charges from governmental agencies which have entered into assistance agreements with the authority, in accordance with the terms and conditions of the assistance agreements, and to use and employ the service charges in accordance with the provisions of this chapter, the service charges to constitute authority revenues; (10) To enter into and enforce assistance agreements made and entered into with governmental agencies by suit, action, mandamus or other proceedings, including the obtaining by judicial decree of the appointment of a receiver to administer infrastructure projects financed by leases, loans or grants which have been undertaken by governmental agencies; (11) To enter into any necessary or required agreement with federal or state agencies or persons to carry out the provisions of this chapter; (12) To bid at a competitive public sale of obligations of a governmental agency or negotiate the purchase or sale of obligations of a governmental agency, notwithstanding any other law to the contrary; (13) To borrow money and issue negotiable bonds and notes pursuant to this chapter; (14) To lend money to governmental agencies or to advance moneys from the infrastructure revolving fund to the federally assisted wastewater revolving fund in order to match federal moneys that may become available; (15) To contract with the federal government as to any infrastructure project; (16) To participate with the federal government or any of its agencies, the state government or any of its agencies or political subdivisions, or any other person in the construction or repair of any infrastructure project; and (17) To have, possess, and exercise all other powers reasonably incident to the carrying out of the duties and responsibilities of the authority. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 529, sec. 17, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 373, sec. 4, effective July 15, 1994. -- Amended 1988 Ky. Acts ch. 124, sec. 7, effective March 31, 1988. -- Amended 1984 Ky. Acts ch. 216, sec. 12, effective July 13, 1984. -- Amended 1976 Ky. Acts ch. 140, sec. 95. -- Created 1972 Ky. Acts ch. 329, sec. 7.

KRS 224A.080 Correlative powers of other governmental agencies

224A.080. Correlative powers of other governmental agencies All governmental agencies shall have and possess, in addition to all other powers now or hereafter vested in them, the following powers: (1) To undertake infrastructure projects; (2) To make application for, and to receive, federal grants or loans in aid of infrastructure projects in accordance with the provisions of any federal laws now in effect, or in effect in the future; (3) To make application for, and to receive, grants or loans in accordance with the terms and provisions of this chapter; (4) To comply with rules, administrative regulations, and bylaws promulgated by the authority; (5) To enter into assistance agreements with the authority; (6) To comply with all terms, conditions and requirements of any assistance agreement. An assistance agreement to which a governmental agency is a party may provide for the making of financing payments by the governmental agency from appropriations made to or by the governmental agency as, if and when received. No such obligation shall be binding on the governmental agency for a period extending beyond the legislative term during which it is incurred, but it may be renewed during successive legislative terms; (7) To covenant with the authority to, and to impose, service charges upon all persons to whom services are provided by infrastructure projects. The service charges shall, as appropriate in the individual cases and circumstances, be in addition to all other rates, rentals, and charges of a similar nature now or hereafter authorized by law and now or hereafter being levied and collected by the governmental agencies. Counties and urban-county governments, including counties containing metropolitan sewer districts, shall have the right to covenant with the authority to pay to the authority on an annual, automatically renewable basis, the moneys and funds pursuant to an assistance agreement as shall enable the authority to amortize revenue bonds issued to provide infrastructure projects to the counties and urban-county governments, subject to constitutional provisions; (8) To covenant with the authority to mandatorily require the use of sanitary sewers by all persons owning, renting, or occupying premises generating pollution, where sewer service is reasonably available to such premises, and to exhaust all remedies for the collection of service charges, including termination of water service to delinquent sewer customers; and to promptly remit all service charges collected to the authority in accordance with the terms, conditions, and requirements of assistance agreements. (9) To covenant with the authority for the payment of state revenues, tax sharing or other state aid, with the exception of funds in aid to education and funds derived from motor fuel taxes or vehicle license taxes pursuant to Section 230 of the Constitution of Kentucky, as the governmental agency may thereafter become entitled to receive from the state, to the authority or to a trustee until the time all delinquent payments by the governmental agency have been paid. If the authority and a governmental agency enter into an agreement, the State Treasurer shall pay the pledged money in accordance with the provisions of the agreement. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 373, sec. 5, effective July 15, 1994. -- Amended 1988 Ky. Acts ch. 124, sec. 8, effective March 31, 1988. -- Amended 1984 Ky. Acts ch. 216, sec. 13, effective July 13, 1984. -- Amended 1974 Ky. Acts ch. 336, sec. 4. - - Created 1972 Ky. Acts ch. 329, sec. 8.

KRS 224A.085 Interim financing

224A.085. Interim financing The authority may enter into interim financing agreements with governmental agencies, and governmental agencies may enter into interim financing agreements with the authority in connection with eligible projects. Each such interim financing agreement may be subject to the approval by the State Water Pollution Agency, or the State Public Service Commission, if applicable, may contain and include such provisions as may be agreed upon by the parties thereto, and shall include and prescribe the following provisions: (1) An estimate of the reasonable cost of the eligible project, as determined by the authority; (2) The amount of state or federal grants or loans to be made to the governmental agency; (3) The time or times at which such state or federal grants or loans shall become payable to the governmental agency; (4) The specific purpose or purposes for which the proceeds of state or federal grants or loans made to the governmental agency shall be expended; (5) The conditions under which state or federal grants or loans may be expended on account of the eligible project by the governmental agency; (6) An agreement by the governmental agency: (a) To proceed expeditiously with and promptly complete the eligible project or cause same to be completed in accordance with the plans and specifications approved by federal and state agencies; (b) To commence or cause to be commenced operation of the eligible project on completion of construction and not to discontinue operations or dispose of such eligible project without the approval of the authority, and the State Water Pollution Agency or State Public Service Commission, if applicable; (c) To operate and maintain or cause to be operated and maintained the eligible project in accordance with applicable provisions of federal and state law and the terms and conditions of the loan documents implementing federal or state grants or loans to the governmental agency; (d) To provide for the payment of the governmental agency's share of the cost of the eligible project through the issuance of the governmental agency long term debt obligations in the appropriate manner and at the appropriate time in order that sufficient funds will be available to repay and retire bond anticipation notes issued by the authority on behalf of said governmental agency. Effective: July 13, 1984 History: Created 1984 Ky. Acts ch. 216, sec. 14, effective July 13, 1984.

KRS 224A.090 Payment of study expenses from revenue bond proceeds

224A.090. Payment of study expenses from revenue bond proceeds With the approval and the consent of the authority's governing body, and in cooperation and coordination with the State Water Pollution Agency, the executive director of the authority shall cause to be expended out of any funds available for said purposes such moneys as are necessary for the study of any proposed eligible project, to determine as to whether a state grant shall be awarded in connection with any eligible project. All such expenses incurred prior to the issuance of any revenue bonds by the authority shall be charged and allocated to the appropriate eligible project, and upon the sale of authority revenue bonds or notes to provide funds for eligible projects, the funds so expended in connection with the study of such individual eligible projects shall be reimbursed from the proceeds of such bonds or notes. History: Created 1972 Ky. Acts ch. 329, sec. 9.

KRS 224A.100 Assistance agreements -- Contents -- Review by legislative committee

224A.100. Assistance agreements -- Contents -- Review by legislative committee The authority may enter into assistance agreements with governmental agencies, and governmental agencies may enter into assistance agreements with the authority in connection with infrastructure projects. Each assistance agreement shall be subject to review by the Capital Projects and Bond Oversight Committee of the Legislative Research Commission and may contain and include such provisions as may be agreed upon by the parties thereto, and shall include and prescribe the following provisions: (1) An estimate of the reasonable cost of the infrastructure project, as determined by the authority; (2) The amount of the total rentals under any lease of an infrastructure project, loans or grants to be made to the governmental agency, financing payments, or obligations of the governmental agency to be purchased by the authority; (3) The time or times at which the rentals, loans or grants, financing payments, or the purchase price of a governmental agency shall become payable by or to the governmental agency; (4) The specific purpose or purposes for which the leased infrastructure project will be used or the proceeds of the purchase of obligations of the governmental agency or loan or grant made pursuant to the assistance agreement shall be expended; (5) The conditions under which the leased infrastructure project will be used or the proceeds of the purchase of obligations of the governmental agency or loan or grant may be expended on account of the infrastructure project by the governmental agency; (6) An agreement by the governmental agency: (a) To proceed expeditiously with and promptly complete the infrastructure project or cause same to be completed in accordance with plans and specifications approved by federal and state regulatory agencies; (b) To commence or cause to be commenced operation of the infrastructure project on completion of construction, and not to discontinue operations or dispose of such infrastructure project without the approval of the authority; (c) To operate and maintain or cause to be operated and maintained the infrastructure project in accordance with the applicable provisions of federal and state law; (d) To disclose fully to the authority all applications for or award of grants or loans for financial assistance, if any; (e) To provide for the payment of the governmental agency's share of the cost of the infrastructure project, if the entire infrastructure project is not financed by assistance from the authority and describe with specificity the manner in which the governmental agency proposes to finance its share of such cost, if any; (7) A provision that, if assistance which was not included in the calculation of the loan or grant payable pursuant to subsection (2) of this section becomes available to the governmental agency, the amount of the assistance from the authority shall be recalculated with the inclusion of the additional assistance, and the governmental agency shall pay to the authority the amount, if any, by which the loan or grant actually made, exceeds the loan or grant as determined by the recalculation; (8) The extent to which the assistance from the authority shall be repaid to the authority, which shall not be less than the sum of the following, except as provided under KRS 224A.111, 224A.112, and 224A.1115: (a) The aggregate principal amount of the loan; and (b) Interest on the aggregate balance of the principal amount of the loan from time to time remaining unpaid, computed at the applicable interest rate, plus not to exceed one-quarter of one percent (0.25%), except as provided for in KRS 224A.111, 224A.112, and 224A.1115; (9) The time or times and amounts when the repayments required by subsection (8) of this section shall be made by the governmental agency to the authority; (10) The extent to which a service charge shall be imposed by the governmental agency. Any service charge shall be calculated to produce amounts sufficient to meet the repayment schedule prescribed by subsection (8) of this section; and (11) An agreement between the governmental agency and the authority that upon any failure of the governmental agency to make payment to the authority in accordance with the time schedule and repayment schedule fixed by the assistance agreement of the amounts prescribed by said schedules, that in such event the authority may, without further action, require the State Treasurer to pay to the authority such amount of other state revenues, tax sharing, or other state aid, with the exception of funds in aid to education and funds derived from motor fuel taxes or vehicle license taxes pursuant to Section 230 of the Constitution of Kentucky, as the governmental agency may thereafter become entitled to receive from the state, until all delinquent payments pursuant to the repayment schedule, plus interest thereon, from the date of each delinquency at the applicable interest rate per annum, shall have been paid. Effective: July 15, 2002 History: Amended 2002 Ky. Acts ch. 342, sec. 16, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 529, sec. 18, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 373, sec. 6, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 105, sec. 56, effective July 14, 1992. -- Amended 1988 Ky. Acts ch. 124, sec. 9, effective March 31, 1988. -- Amended 1974 Ky. Acts ch. 336, sec. 5. -- Created 1972 Ky. Acts ch. 329, sec. 10.

KRS 224A.104 Residential housing infrastructure fund

224A.104. Residential housing infrastructure fund (1) There is hereby established in the State Treasury a revolving account to be known as the residential housing infrastructure fund. The fund shall consist of moneys received from state appropriations, gifts, grants, federal funds, and all repayment, interest or other return on the investment of fund dollars. (2) The fund shall be administered by the Kentucky Infrastructure Authority. (3) Amounts deposited in the fund shall be used for the purpose of making low-interest loans to local governments for building, upgrading, renovation, or expansion of infrastructure owned, maintained, or operated by the local government seeking funding. (4) Notwithstanding KRS 45.229, fund amounts not expended at the close of a fiscal year shall not lapse but shall be carried forward into the next fiscal year. Effective: April 14, 2026 History: Created 2026 Ky. Acts ch. 161, sec. 111, effective April 14, 2026.

KRS 224A.106 Administrative fee

224A.106. Administrative fee A one-half of one percent (0.5%) administrative fee shall be paid to the Kentucky Infrastructure Authority for the administration of each project funded by the infrastructure for economic development fund for coal-producing counties and the infrastructure for economic development fund for tobacco counties. These administrative fees shall be paid, upon inception of the project, out of the fund from which the project was allocated. Effective: April 14, 2026 History: Created 2026 Ky. Acts ch. 161, sec. 64, effective April 14, 2026.

KRS 224A.110 Deposit of moneys -- Use of revenues

224A.110. Deposit of moneys -- Use of revenues (1) All moneys derived by the authority pursuant to assistance agreements other than those assistance agreements funded under KRS 224A.111, 224A.112, and 224A.1121 shall be received by the authority as constituting authority revenues, and shall, in common with other authority revenues, be immediately deposited into such funds or accounts as the authority shall designate. (2) Moneys derived by the authority pursuant to assistance agreements funded under KRS 224A.111 and all federal and state money or proceeds from the sale of revenue bonds of the authority received in support of assistance agreements funded under KRS 224A.111 shall be deposited into an account designated as the "federally assisted wastewater revolving fund." (3) Moneys derived by the authority pursuant to assistance agreements funded under KRS 224A.112 and all state money or proceeds from the sale of revenue bonds of the authority received in support of KRS 224A.112 shall be deposited into either the infrastructure revolving fund or the broadband deployment fund. (4) All authority revenues shall, before being expended for any other purposes of the authority, first be applied to the payment of the principal of and interest on authority revenue bonds in accordance with the resolution authorizing their issuance, as, and when the same become due and payable. Effective: July 15, 2020 History: Amended 2020 Ky. Acts ch. 72, sec. 2, effective July 15, 2020. -- Amended 1988 Ky. Acts ch. 124, sec. 10, effective March 31, 1988. -- Created 1972 Ky. Acts ch. 329, sec. 11.

KRS 224A.111 Creation of federally assisted wastewater revolving fund -- Purpose -- Duties of authority

224A.111. Creation of federally assisted wastewater revolving fund -- Purpose -- Duties of authority (1) The federally assisted wastewater revolving fund shall be established in the State Treasury and shall be administered by the authority under an agreement with the Energy and Environment Cabinet to assure compliance with the federal act. (2) The fund shall be a dedicated fund and all moneys in the fund shall be dedicated solely to securing the payment of the principal of, interest on, and premium, if any, of revenue bonds issued by the authority under subsection (5) of this section which are to be secured solely by loan payments made by governmental agencies that have been deposited in the fund, making transfers to the federally assisted water supply revolving fund, and providing financial assistance to government agencies for the construction of publicly owned treatment works as defined in Section 212 of the federal act and for the implementation of a management program established under Section 319 of the federal act and for the development and implementation of a conservation and management plan under Section 320 of the federal act. (3) The authority may enter into grant agreements with the administrator of the United States Environmental Protection Agency and accept capitalization grants for the revolving fund in accordance with payment schedules established with the administrator. (4) All payments from the administrator pursuant to subsection (3) of this section shall be deposited in the dedicated revolving fund. (5) The authority may issue its revenue bonds or seek appropriations for deposit into the revolving fund, including the amounts required to match the capitalization grants from the administrator. An amount not exceeding the amount permitted by the federal act may be used for the reasonable costs of administering the fund, for reviewing and regulating project construction and for other reasonable costs of complying with the federal act. (6) The financial assistance which may be provided to governmental agencies by the revolving fund shall be limited to: (a) Making loans, on the condition that the loans are made at or below market interest rates, including interest free loans; that annual principal and interest payments will commence no later than when project construction is completed or one (1) year after initiation of operations, and all loans will be fully amortized not later than thirty (30) years after project construction is completed; that the recipient of a loan will establish a dedicated source of revenue for repayment of loans; and that the fund will be credited with all payments of principal and interest on all loans; (b) Guaranteeing, or purchasing insurance for obligations of the fund where the action would improve credit market access or reduce interest rates; (c) Providing moneys with which to carry out the requirements of assistance agreements; and (d) Providing a source of revenue or security for the payment of principal and interest on bonds or notes issued by the authority or agencies of the state if the proceeds of the sale of the bonds will be deposited in the fund. (7) The revolving fund shall be established, maintained and credited with repayments and the fund balance shall be available in perpetuity solely for its stated purposes. (8) The authority shall obligate all payments from the administrator of the United States Environmental Protection Agency as well as the required state match, within one (1) year after the receipt of the payments. (9) Financial assistance may be provided from the fund only for those infrastructure projects which the Finance and Administration Cabinet has approved from the prioritization schedule prepared by the Energy and Environment Cabinet. (10) The authority may make and condition loans from the fund as required by state or federal law. (11) The authority shall establish fiscal controls and accounting procedures sufficient to assure proper accounting during appropriate accounting periods for payments and disbursements received and made by the revolving fund and for fund balances at the beginning and end of the accounting period. (12) The authority or the Energy and Environment Cabinet may make or prepare any necessary or required plan or report. (13) The authority or the Energy and Environment Cabinet or the loan recipient shall make available to the administrator of the United States Environmental Protection Agency records which the administrator reasonably requires to review in order to determine compliance with any applicable provision of law. (14) The authority may enter into any necessary or required agreement and give or make any necessary or required assurance or certification with any person to receive payments or grants or to make or provide any financial assistance. (15) The authority may enter into any necessary or required agreement with federal or state agencies or persons to carry out the provisions of this section. (16) If a loan is made from the federally assisted wastewater revolving fund which will finance the cost of facility planning and the preparation of plans, specifications, and estimates for construction of publicly owned treatment works, the state shall ensure that if the recipient of the loan receives a grant under section 201(g) of the federal act for construction of such treatment works and an allowance under section 201(1)(l) of the federal act for nonfederal funds expended for the planning and preparation, the recipient shall promptly repay the loan to the extent of the allowance. (17) Financial assistance may be provided from the federally assisted wastewater revolving fund only with respect to a project which is consistent with plans, if any, developed under Sections 205(j), 208, 303(e), 319, and 320 of the federal act, as amended. (18) The authority shall require as a condition of making a loan or providing other assistance, as described in KRS 224A.100(6), from the fund that the recipient of the assistance shall maintain project accounts in accordance with generally accepted governmental accounting standards. (19) Assistance may be provided from the fund, other than under subsection (6)(a) of this section, to a governmental agency with respect to the nonfederal share of the costs of a treatment works project for which the governmental agency is receiving assistance from the administrator of the United States Environmental Protection Agency under any other authority only if the assistance, as determined by the Finance and Administration Cabinet, is necessary to allow the project to proceed. Effective: June 24, 2015 History: Amended 2015 Ky. Acts ch. 73, sec. 1, effective June 24, 2015. -- Amended 2010 Ky. Acts ch. 24, sec. 387, effective July 15, 2010. -- Amended 2003 Ky. Acts ch. 38, sec. 1, effective June 24, 2003. -- Amended 1994 Ky. Acts ch. 373, sec. 7, effective July 15, 1994. -- Created 1988 Ky. Acts ch. 124, sec. 11, effective March 31, 1988.

KRS 224A.112 Creation of infrastructure revolving fund and broadband deployment fund -- Purpose -- Use of moneys

224A.112. Creation of infrastructure revolving fund and broadband deployment fund -- Purpose -- Use of moneys (1) The infrastructure revolving fund shall be established in the State Treasury and shall be administered by the authority. The fund shall be a dedicated fund, and all moneys in the fund shall be allocated and dedicated solely to providing financial assistance to governmental agencies, and investor-owned water systems as provided for in KRS 96.540, 224A.306, 224A.308, and 224A.310, for the construction or acquisition of infrastructure projects through an account designated as the 2020 water service account. (2) The broadband deployment fund shall be established in the State Treasury and shall be administered by the office. The fund shall be a dedicated fund, and all moneys in the fund shall be allocated and dedicated solely to providing grant funds to governmental agencies and private sector entities to construct infrastructure for the deployment of broadband service to households and businesses in underserved or unserved areas of the Commonwealth through an account designated as the broadband deployment fund. (3) Funds in subsections (1) and (2) of this section shall not be commingled and shall be used only for the stated purposes in subsections (1) and (2) of this section. (4) The financial assistance which may be provided by the revolving fund shall be limited to: (a) Making loans, on the condition that the loans are made at or below market interest rates, including interest free loans, at terms not to exceed thirty (30) years and that the fund will be credited with all payments of principal and interest on all loans; (b) Purchasing or guaranteeing, or purchasing insurance for, local or state obligations when the action would improve credit market access or reduce interest rates; (c) Providing a source of revenue or security for the payment of principal and interest on bonds or notes issued by the authority or other agencies of the state if the proceeds of the sale of the bonds will be deposited in the fund; (d) Providing moneys with which to carry out the requirements of assistance agreements; and (e) Making grants as funds specifically appropriated for grants or proceeds from the sale of the authority's revenue bonds are available. (5) The revolving fund shall be established, maintained, and credited with repayments and the fund balance shall be available in perpetuity for its stated purposes. (6) The authority may provide financial assistance from the revolving fund to supplement assistance provided from the federally assisted wastewater revolving fund as created in KRS 224A.111. (7) The authority shall advise governmental agencies of the availability of the infrastructure revolving fund and how moneys may be obtained from the fund. (8) The authority may enter into any necessary or required agreement with federal or state agencies or persons to carry out the provisions of this section. All state agencies shall cooperate with the authority and share information with the authority as appropriate to accomplish the purposes set out in KRS 224A.300. (9) Moneys in the broadband deployment fund are hereby appropriated for the purposes set forth in this section and KRS 224A.1121. (10) Notwithstanding KRS 45.229, any moneys remaining in the broadband deployment fund at the close of the fiscal year shall not lapse but shall be carried forward into the succeeding fiscal year to be used for the purposes set forth in this section and KRS 224A.1121. (11) Interest earned on moneys in the broadband deployment fund shall stay in the fund. Effective:April 14, 2022 History: Amended 2022 Ky. Acts ch. 202, sec. 3, effective April 14, 2022. -- Amended 2020 Ky. Acts ch. 72, sec. 3, effective July 15, 2020. -- Amended 2006 Ky. Acts ch. 134, sec. 2, effective July 12, 2006. -- Amended 2000 Ky. Acts ch. 529, sec. 19, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 69, sec. 75, effective July 15, 1998. -- Amended 1992 Ky. Acts ch. 105, sec. 57, effective July 14, 1992. -- Created 1988 Ky. Acts ch. 124, sec. 12, effective March 31, 1988.

KRS 224A.113 Power to promulgate administrative regulations

224A.113. Power to promulgate administrative regulations The authority may promulgate administrative regulations to implement KRS 224A.111, 224A.1115, and 224A.112. Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 529, sec. 20, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 69, sec. 76, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 373, sec. 9, effective July 15, 1994. -- Created 1988 Ky. Acts ch. 124, sec. 15, effective March 31, 1988.

KRS 224A.115 Legislative findings

224A.115. Legislative findings The General Assembly finds and declares that: (1) Pursuant to KRS 224A.1118(1)(f)2., the Office of Broadband Development is established as the single point of contact and liaison between the Commonwealth and federal agencies with regard to programs to expand access to broadband in Kentucky, including the National Telecommunications and Information Administration, which is part of the United States Department of Commerce; (2) Under the Infrastructure Investment and Jobs Act, Pub. L. No. 117-58, the National Telecommunications and Information Administration has allocated significant funding to support broadband deployment throughout Kentucky as part of the Broadband Equity Access and Deployment Program; and (3) The Office of Broadband Development shall prioritize BEAD Program funds for delivery of service to the last mile of unserved areas consistent with the federal requirements. Effective: April 4, 2024 History: Created 2024 Ky. Acts ch. 82, sec. 1, effective April 4, 2024.

KRS 224A.116 Definitions for KRS 224A.115 to 224A.118

224A.116. Definitions for KRS 224A.115 to 224A.118 As used in KRS 224A.115 to 224A.118: (1) "Administration" means the National Telecommunications and Information Administration; (2) "BEAD Program" means the federal Broadband Equity Access and Deployment Program administered by the National Telecommunications and Information Administration; (3) "Grantee" means the recipient of moneys from the Kentucky BEAD Grant Program; and (4) "Kentucky BEAD Grant Program" means the program established in KRS 224A.117. Effective: April 4, 2024 History: Created 2024 Ky. Acts ch. 82, sec. 2, effective April 4, 2024.

KRS 224A.117 Kentucky BEAD Grant Program -- Purpose -- Powers of office -- Application of federal law -- Grantee applications for funding

224A.117. Kentucky BEAD Grant Program -- Purpose -- Powers of office -- Application of federal law -- Grantee applications for funding (1) The Kentucky BEAD Grant Program is hereby established for the purpose of defraying eligible expenses associated with projects intended to provide broadband service to unserved and underserved areas of the Commonwealth, and, to the extent funding is available, for certain nondeployment purposes allowable under federal law. This program shall be the exclusive means of di stributing BEAD Program money to Kentucky applicants. (2) The office is hereby authorized, consistent with the requirements of this section, to administer the Kentucky BEAD Grant Program. It shall have all power necessary and convenient, not explicitly prohibited or reserved by statute, to carry out and effectuate its purposes, including the powers to: (a) Develop and submit BEAD Program funding requests to the administration or other responsible federal entities; (b) Conduct a challenge process consistent with federal requirements to identify Kentucky locations eligible for funding; (c) Develop an application process for applications for funding from the Kentucky BEAD Grant Program, including the requirements for the applications, in a manner that does not violate the prohibition in KRS 278.5462(1); (d) Determine eligibility criteria for prospective subgrantees and projects; (e) Create rules governing the review process and timeline for applications and challenges to those applications; (f) Make administrative rules necessary for the achievement of the goals of the Kentucky BEAD Grant Program; (g) Coordinate and partner with local governments or private entities as necessary; (h) Determine which grant applications should receive funding and disburse those grants from the BEAD fund established in KRS 224A.118; (i) Enter into contracts or agreements necessary or incidental to the performance of its duties, functions, and responsibilities; (j) Notwithstanding KRS 45A.190, require applicants to submit letters of credit, bonds, or other reasonable means of assuring project c ompletion it deems appropriate and necessary, including giving full effect to the guidance from the administration by allowing the office to provide grantees a range of options to satisfy this paragraph; (k) If funding is available after identifying and fu nding BEAD Program deployment projects, identify and fund nondeployment projects consistent with federal law; (l) Oversee and administer reporting and compliance under grants made under the Kentucky BEAD Grant Program consistent with federal law; and (m) Act as otherwise necessary to pursue the goals of the Kentucky BEAD Grant Program. (3) Except where explicitly stated otherwise, all terms in this section shall have the same meaning as provided in the Infrastructure Investment and Jobs Act, Pub. L. No. 117-58, and in the Notice of Funding Opportunity for the BEAD Program published by the administration on May 13, 2022, including any subsequent guidance issued by the administration with respect to the program after the issuance of the Notice of Funding Opportunity. In the event of any conflict between this section and legal requirements contained in the federal law, the federal law shall take precedence. To the extent this chapter conflicts with any other provision of the Kentucky Revised Statutes, this chapter prevails. (4) The office shall ensure that applications contain sufficient information to allow the office to reasonably evaluate each grantee's ability to comply with all program requirements, including all grantee qualifications and conditions required under federal law. (5) KRS 224A.1121 shall not apply to the Kentucky BEAD Grant Program as contained in KRS 224A.115 to 224A.118. Effective: April 4, 2024 History: Created 2024 Ky. Acts ch. 82, sec. 3, effective April 4, 2024.

KRS 224A.118 BEAD fund

224A.118. BEAD fund (1) The BEAD fund is hereby established in the State Treasury and shall be administered by the office. All moneys in the fund shall be allocated and dedicated to: (a) Providing moneys to grantees that comply with federal requirements and the requirements developed by the office in compliance with this section; and (b) Administering the federal BEAD Program. (2) All moneys obtained from the administration shall be deposited into the BEAD fund. (3) All moneys in the BEAD fund are hereby appropriated for the purposes set forth in KRS 224A.115 to 224A.118. (4) Notwithstanding KRS 45.229, any moneys not expended at the close of a fiscal year shall not lapse but shall be carried forward into the next fiscal year. All funds shall be expended within the five (5) year action plan required by the administration. Effective: April 4, 2024 History: Created 2024 Ky. Acts ch. 82, sec. 4, effective April 4, 2024.

KRS 224A.120 Authority may issue revenue bonds

224A.120. Authority may issue revenue bonds (1) The authority may provide, at one (1) time or from time to time, for the issuance of its Kentucky Infrastructure Authority revenue bonds, for the purpose of providing funds and moneys to the authority to enable it to enter into assistance agreements with governmental agencies, acquire and lease infrastructure projects, to governmental agencies, purchase or refinance obligations of governmental agencies issued for infrastructure projects and make loans or grants for infrastructure projects, and to enable the authority generally to carry out and effectuate its proper corporate purposes. In anticipation of the issuance of the revenue bonds, the authority may provide for the issuance at one (1) time, or from time to time, of revenue bond anticipation notes pursuant to the general laws of the state. The principal of and the interest on the revenue bonds or notes shall be payable solely from authority revenues. Any such notes may be made payable from the proceeds of bonds or renewal notes, or in the event bond or renewal note proceeds are not available, or should the authority deem it financially practicable to pay the notes directly from authority revenues, the notes may be paid from any available authority revenues. Prior to the issuance of the bonds or notes, the authority shall submit any proposed issue to the Capital Projects and Bond Oversight Committee for its review and determination in accordance with the provisions of KRS 45.810. (2) The revenue bonds or notes of the authority shall be dated and may be redeemable prior to maturity at the option of the authority at prices and under terms and conditions determined by the authority. Any bonds or notes shall bear interest at the rate or rates, shall be payable annually or at shorter intervals, and may bear conversion privileges determined by the authority. Notes shall mature at the time or times not exceeding five (5) years from their date or dates, and revenue bonds shall mature at the time or times not exceeding forty (40) years from their date or dates as may be determined by the authority. The authority shall determine the form and manner of execution of the bonds or notes, and shall fix the denomination or denominations and the place or places of payment of principal and interest, which may be any bank or trust company within or without the state. In case any officer of the authority whose signature or facsimile of whose signature shall appear on any revenue bonds or notes, shall cease to be such officer before the delivery thereof, the signature or the facsimile shall be valid and sufficient for all purposes, the same as if the officer had remained in office until the delivery. At the time of issuance of variable rate revenue bonds, the authority may designate individuals or institutions which, in the sole judgment of the authority, have financial market expertise to serve as agent for the authority for establishing and changing from time to time, while the variable rate revenue bonds remain outstanding, the rate of interest to be borne by and the price to be paid for the revenue bonds. The rate-setting procedures and authority of each agent shall be set forth in writing, and may include a formula or an index or indices based upon market factors, and shall be established by the authority at the time of issuance of the revenue bonds. At the time of the issuance of the revenue bonds, the authority shall establish the maximum interest rate to be borne by the revenue bonds. The authority shall retain the right to remove or replace any agent at any time and for any reason. The authority may provide that said bonds or notes may be executed only with the facsimile signatures of its officers, but said bonds or notes shall be executed with the manual signature of a bank or trust company designated by the authority as registrar and paying agent. (3) All revenue bonds or notes issued under the provisions of this chapter shall have and are hereby declared to possess all of the qualities and incidents of negotiable instruments under the laws of the state. The authority may sell the revenue bonds or notes in the manner, either at public or private negotiated sale, and for the price, as it may determine will best effect the purpose of this chapter. If revenue bonds are sold at public, competitive sale, the revenue bonds shall be sold after newspaper advertising conforming to the requirements of KRS Chapter 424 and competitive bids for the sale of the revenue bonds shall be opened and read publicly by the authority at a designated place, day and hour, all of which shall be announced in the advertising made relative thereto. (4) In its proceedings authorizing the issuance of revenue bonds or notes, the authority shall fix and determine contractual provisions with the bondholders relating to the receipt, allocation, pledging, and disbursement of authority revenues, and may enact and determine terms, conditions, and restrictions pursuant to which additional revenue bonds of the authority may be authorized and issued from time to time. The proceedings, determinations and enactments of the authority shall specify that the payment of principal of and interest on such authority revenue bonds and notes shall constitute a first charge and lien against some or all authority revenues before any authority revenues are used, applied, and disbursed for any other valid purposes of the authority, including the payment of operation and maintenance costs incident to the operation of the authority. (5) The proceeds of all revenue bonds or notes shall be used solely for the purpose of enabling the authority to enter into assistance agreements with governmental agencies, to acquire and lease infrastructure projects to governmental agencies, to purchase or refinance obligations of governmental agencies issued for infrastructure projects, to make loans or grants to the governmental agencies for infrastructure projects, or for any purpose authorized in this chapter. Interest coming due on the revenue bonds or notes, for not to exceed three (3) years, together with a debt service reserve equal to two (2) times the maximum principal and interest requirements to come due during any fiscal year ending June 30, in connection with the revenue bonds or notes, may be capitalized from bond proceeds, it being determined and recognized that infrastructure projects, for which loans or grants are made, may in some cases not become fully revenue-producing for a period of time coincident with the construction period of the infrastructure projects. Revenue bond or note proceeds may also be utilized, used and applied for the payment of ordinary and necessary expenses in connection with issuance of the revenue bonds or notes, including, but not by way of limitation, a sum equal to any discount in the sale of revenue bonds or notes, if discount bids are authorized and permitted by the authority; administrative expenses, including the preparation of revenue bonds or notes, publication of notices, printing, and other costs; attorneys' fees; and other ordinary and necessary costs of financing, including the payment of fees to fiscal agents for advice and assistance in the preparation and marketing of revenue bonds or notes. (6) Prior to the preparation of definitive revenue bonds or notes, the authority may, under like restrictions, issue interim receipts or temporary bonds, exchangeable for definitive revenue bonds or notes when the revenue bonds or notes shall have been executed, and are available for delivery. The authority may also provide for the replacement of any revenue bonds or notes that shall have become mutilated or shall have been destroyed or lost. Revenue bonds or notes may be issued under the provisions of this chapter directly by the authority without obtaining the consent or acquiescence of any cabinet, division, commission, board, department, or agency of the state other than the Finance and Administration Cabinet, and without any other proceedings or the happening of any other conditions or things except as specifically required by this chapter and the provisions of the resolution or resolutions of the authority authorizing the issuance of the revenue bonds or notes. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 373, sec. 10, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 477, sec. 6, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 124, sec. 13, effective March 31, 1988. -- Amended 1984 Ky. Acts ch. 216, sec. 15, effective July 13, 1984. -- Created 1972 Ky. Acts ch. 329, sec. 12.

KRS 224A.130 Trust indentures

224A.130. Trust indentures (1) In the discretion of the authority, any revenue bonds or notes issued under the provisions of this chapter may be secured by a trust indenture by and between the authority and a corporate trustee which may be any trust company or bank having the powers of a trust company within or without the State of Kentucky. Such trust indenture, or the resolution of the authority providing for the issuance of such revenue bonds or notes, may pledge or assign for the security of such revenue bonds or notes, all or any part of the totality of authority revenues received and to be received. Such trust indenture or resolution of the authority may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper, and not in violation of law, including, inter alia, covenants and provisions setting forth the duties of the authority in relation to the purposes to which revenue bond and note proceeds may be applied; the disposition or pledging of assets and authority revenues; and the custody, safeguarding, and application of all authority revenues. It shall be lawful for any bank or trust company incorporated under the laws of the state which may act as depository of the proceeds of revenue bonds, notes or of authority revenues, to furnish such indemnifying bonds, or to pledge such securities as may be required by such trust indenture or resolution of the authority. Any such trust indenture or authority resolution may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders, where a trust indenture has been entered into. In addition to the foregoing, any such trust indenture or authority resolution may contain such other provisions as the authority may determine to be reasonable and proper for the further security of the holders of any revenue bonds or notes. All expenses incurred in carrying out the provisions of such trust indenture or bond proceedings may be treated as a part of the cost of operating the authority, and may be paid from authority revenues pledged or assigned to the payment of the principal of and the interest on revenue bonds or notes, or from any other funds properly available to the authority. (2) Notwithstanding any other provision to the contrary, any such trust indenture or authority resolution shall provide that, except to the extent the rights afforded to bondholders by this section shall be enforceable and enforced by a trustee under a trust indenture rather than by the bondholders, any holder of revenue bonds or notes issued by the authority or any of the coupons appurtenant thereto, may, either at law or in equity, by suit, action, mandamus, or other proceedings, protect and enforce any and all rights generally arising under the laws of the state, or granted under this chapter, or under such trust indenture, or by the resolution of the authority authorizing the issuance of such revenue bonds or notes, and may specifically enforce and compel by mandamus the performance of all duties required by this chapter, or by such trust indenture, or such authority resolution, to be performed by the authority or by any officer or employee thereof, including, inter alia, the prompt and full enforcement of the terms and conditions of all assistance agreements, to which the authority is a party. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 373, sec. 11, effective July 15, 1994. -- Created 1972 Ky. Acts ch. 329, sec. 13.

KRS 224A.140 Refunding bonds

224A.140. Refunding bonds (1) The authority is hereby authorized to provide for the issuance of refunding revenue bonds or notes for the purpose of refunding any revenue bonds or notes then outstanding which shall have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such revenue bonds or notes. The issuance and sale of such refunding revenue bonds or notes, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the authority in respect of the same, shall be governed by the provisions of this chapter which relate to the issuance of revenue bonds or notes, insofar as such provisions may be applicable. (2) Refunding revenue bonds or notes may be sold or exchanged directly for outstanding revenue bonds or notes of the authority, and if sold, the proceeds thereof shall be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of such outstanding revenue bonds or notes. Pending the application of the proceeds of any such refunding revenue bonds, with any other available funds, to the payment of the principal, accrued interest, and any redemption premium on the revenue bonds or notes being refunded (and if so provided or permitted in the authority resolution authorizing the issuance of such refunding revenue bonds or notes, or in the trust indenture securing the same, to the payment of any interest on such refunding revenue bonds or notes and any expenses in connection with such refunding), such proceeds may be invested in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America which shall mature or which shall be subject to redemption by the holders thereof at the option of such holders not later than the respective dates when the proceeds, together with the interest accruing thereon, will be required for the purposes intended. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 477, sec. 7, effective July 13, 1990. -- Created 1972 Ky. Acts ch. 329, sec. 14.

KRS 224A.150 Authority's bonds are permissible investments

224A.150. Authority's bonds are permissible investments Revenue bonds and notes issued by the authority under the provisions of this chapter are hereby declared and deemed to be securities in which all public officers and public bodies of the Commonwealth and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such obligations of the authority are hereby declared and determined to be securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state, for the purpose for which the deposit of bonds, notes, or obligations of the state is now, or may hereafter be, authorized by law. History: Created 1972 Ky. Acts ch. 329, sec. 15.

KRS 224A.160 Authority's bonds payable from revenue only

224A.160. Authority's bonds payable from revenue only Revenue bonds or notes issued by the authority under the provisions of this chapter shall not be deemed to constitute a debt of the Commonwealth or of any political subdivision thereof, or a pledge of the faith and credit of the Commonwealth or of any political subdivision thereof; but such bonds shall be payable as to principal and interest solely from authority revenues provided therefor under the provisions of this chapter. All such revenue bonds or notes shall contain on the face thereof a statement to the effect that neither the Commonwealth nor the authority shall be obligated to pay the same, or the interest thereon, except from authority revenues, as defined in this chapter; and that neither the faith and credit, nor the taxing power of the Commonwealth or any political subdivision thereof is pledged to the payment of the principal of and interest on such revenue bonds or notes. History: Created 1972 Ky. Acts ch. 329, sec. 16.

KRS 224A.165 Reserve funds or replacement funds -- Maintaining required level -- Approval of General Assembly required for certain bond or note issuances

224A.165. Reserve funds or replacement funds -- Maintaining required level -- Approval of General Assembly required for certain bond or note issuances (1) The authority may, in connection with the issuance of its revenue bonds and notes for the accomplishment of its public purposes pursuant to this chapter, establish in respect of the revenue bonds and notes reserve funds or replacement funds required in the sound discretion of the board of the authority in order to enable the authority to effectuate its proper public purposes, and to issue revenue bonds and notes in the most advantageous manner. If any reserve fund or replacement fund created by the authority in connection with any revenue bond issue or note issue should, in violation of any contract made by the authority with any bond holder or note holder, be monetarily deficient in any respect as of any date of accounting stipulated by the authority, the authority shall immediately make formal request in writing to the secretary of the Finance and Administration Cabinet, and to the Governor of Kentucky, that sums adequate to restore the reserve fund or replacement fund to its contractually required level and to pay any overdue principal and interest on any outstanding revenue bonds and notes of the authority be included in the next succeeding executive budget, and that the budget request be presented to the General Assembly of Kentucky with recommendation for approval by the General Assembly for payment to the authority for the use and benefit of the reserve fund or replacement fund. (2) If the provisions of KRS 56.870(3) are determined to apply to a revenue bond or note, and if the proceeds of the bond or note are made available to a governmental agency or private entity, and if the debt is not fully guaranteed by the United States government or secured by a nationally recognized entity authorized to issue guarantees and rated in the highest rating category by at least one (1) of the nationally recognized rating services, the authority shall obtain approval from the General Assembly in accordance with the provisions of KRS 56.870(1) prior to the issuance of the bonds or notes. Notwithstanding the foregoing, no such approval shall be required for the following issues of bonds or notes: (a) Refunding bonds or notes which are issued for the purpose of achieving debt service savings and which do not extend the term of the refunded bonds; (b) Bonds or notes if the aggregate principal amount of the bonds or notes outstanding under any trust indenture or bond resolution does not exceed the sum of five hundred million dollars ($500,000,000). The incremental amount of principal debt incurred by issuing refunding bonds or notes which are issued for the purpose of achieving debt service savings and which do not extend the term of the refunded bond or note shall not be subject to the limits defined in paragraph (b). Effective: June 24, 2003 History: Amended 2003 Ky. Acts ch. 38, sec. 3, effective June 24, 2003. -- Amended 1994 Ky. Acts ch. 53, sec. 5, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 477, sec. 8, effective July 13, 1990. -- Created 1974 Ky. Acts ch. 336, sec. 6.

KRS 224A.170 Authority's money deemed to be trust fund

224A.170. Authority's money deemed to be trust fund Notwithstanding any other provisions of law to the contrary, all moneys, funds, properties, and assets acquired by the authority, pursuant to this chapter, whether as proceeds from the sale of authority revenue bonds or notes, or as authority revenues, or otherwise, shall be deemed to be trust funds, to be held and applied solely as provided by this chapter; and same shall be held by the authority in trust for the purposes of carrying out its powers and duties and for the payment of the authority's revenue bonds or notes, both as to principal and interest, and shall be used and reused as provided in this chapter and shall at no time be deemed to be public funds of the Commonwealth, or of any agency or department thereof. The resolutions of the authority authorizing any revenue bonds or notes, or any trust indenture securing the same, may provide that any such moneys, funds, properties, and assets may be temporarily invested pending the disbursement thereof, and shall provide that any officer with whom, or any bank or trust company with which, any moneys shall be deposited, shall act as trustee of such assets and shall hold and apply the same for the purposes of this chapter, subject to such conditions, restrictions, requirements, limitations, and mandatory investment procedures and requirements as this chapter, and such authorizing resolutions of the authority, or trust indenture, may provide. Any such moneys, funds, properties, and assets or any other moneys of the authority may be invested as provided by KRS 386.020, in addition to such provisions for investment as may be enacted by resolution of the authority. History: Created 1972 Ky. Acts ch. 329, sec. 17.

KRS 224A.180 Enforcement powers of authority in the event of default

224A.180. Enforcement powers of authority in the event of default (1) In order to protect the public health, safety, and welfare, and in order to assure the prompt and necessary payment to the authority of all monetary requirements arising from assistance agreements entered into by and between the authority and the governmental agencies, and thereby assure the financial integrity of the authority, and the prompt payment of principal of and interest on revenue bonds and notes issued by the authority, the authority is specifically authorized, if any governmental agency which is a party to an assistance agreement fails to promptly and duly perform all of the terms and conditions of the assistance agreement, to directly impose, in the authority's name and for the authority's benefit, service charges upon all users of the eligible project constructed pursuant to such assistance agreement, and to proceed to directly enforce and collect such service charges, together with all necessary costs of the enforcement and collection, in the name of the authority and for the benefit of the authority. (2) In addition to the powers conferred by subsection (1) of this section, the authority may, upon the occurrence of any event of default by such governmental agencies, mandatorily require the owner, tenant, or occupant of each and every lot or parcel of land which abuts upon a street or other public way containing a sanitary sewer or drinking water facility, and upon which lot or parcel of land an improvement exists for residential, commercial, or industrial use, or where a sanitary sewer or drinking water facility is reasonably available to serve such improved lot or parcel of land, to forthwith connect such improvement to the sanitary sewer or drinking water facility and to cease to use any other means for the disposal of sewage, sewage waste, or other pollutants. (3) In the implementation of its enforcement authority, the authority shall have and possess all of the powers of incorporated municipalities which are granted by KRS 96.930 to 96.943, providing for the termination of water services to any premises where the bill for sewer services is delinquent. (4) The authority is further expressly authorized and empowered by suit, action, mandamus, or other proceedings, to compel performance by governmental agencies of all of the terms and conditions of assistance agreements, including, inter alia, the adjustment and increase of service charges as required to meet the needs of any assistance agreement, and the enforcement and collection of such service charges. (5) In addition to the powers conferred by subsection (1) of this section, the authority may upon the occurrence of any event of default by such governmental agency, and without the consent of the governmental agency, place a system in receivership. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 373, sec. 12, effective July 15, 1994. -- Amended 1988 Ky. Acts ch. 124, sec. 14, effective March 31, 1988. -- Created 1972 Ky. Acts ch. 329, sec. 18.

KRS 224A.190 Imposition of service charges by local governmental agencies

224A.190. Imposition of service charges by local governmental agencies (1) Each governmental agency which has entered into an assistance agreement with the authority whereby such governmental agency has covenanted to impose service charges and remit same to the authority, shall, as provided in such assistance agreement, at the due time impose such service charges, use and employ all of such governmental agency's power and authority to enforce and collect such service charges, including requiring termination of water service to any delinquent user, and promptly remit the amounts collected as representing service charges from its users directly to the authority. All such service charges shall be remitted to the authority with a report showing collections and any delinquencies, such report to be made on or before the twentieth day of the month following the payment of such service charges. (2) All sums received by the authority as representing service charges generated by assistance agreements shall constitute authority revenues and shall be used, treated, and employed by the authority in accordance with the provisions of this chapter. (3) In the event, for any reason, the schedule of service charges levied by the governmental agency in accordance with an assistance agreement shall prove to be insufficient to afford repayment to the authority of the minimum sums stipulated in KRS 224A.100, in accordance with the agreed repayment schedule, the authority shall forthwith advise the governmental agency, and the governmental agency shall promptly adjust such service charges so as to provide funds sufficient for such payments to the authority in accordance with the terms and conditions of the assistance agreement. As provided in this chapter, the authority may compel any such governmental agency to adjust such service charges to meet the requirements of any assistance agreement, or may proceed to adjust, levy, and collect such service charges itself, in the name of the authority, and for the benefit of the authority, such direct levies and collections to additionally provide sums sufficient for the costs of levying, billing, and collecting such service charges. History: Created 1972 Ky. Acts ch. 329, sec. 19.

KRS 224A.200 Assistance agreements may contain provision for reduction of payments to authority

224A.200. Assistance agreements may contain provision for reduction of payments to authority The authority, as provided in KRS 224A.060, is created and constituted as an independent taxing district and taxing authority with the right to levy in its own name and for its proper public and essential governmental purposes a water utility tax on every purchase of water service in the Commonwealth of Kentucky in an amount equal to not more than two percent (2%) of the gross amount of each such water bill. Any assistance agreements entered into by and between the authority and governmental agencies may provide by their terms that service charges levied by governmental agencies for payment to the authority in accordance with this chapter, may be reduced, diminished or extinguished to the extent that the authority has, during any fiscal period of the authority, levied and collected water utility taxes pursuant to this chapter, or to the extent that other authority revenues have been received by the authority, or to maximize federal grant participation in the state, such reduction, diminution or extinguishment of service charges to be based upon formulas, procedures, and other rules and regulations which shall be prescribed by the authority from time to time pursuant to its power to make, promulgate, and enact rules, regulations and bylaws; provided, however, that such adjustment agreement shall not void, abate or render nugatory any other provisions of any assistance agreements. History: Created 1972 Ky. Acts ch. 329, sec. 20.

KRS 224A.210 Tax-exempt nature of authority property and bonds

224A.210. Tax-exempt nature of authority property and bonds (1) The exercise by the authority of the powers, duties, and responsibilities granted and created by this chapter will be in all respects for the benefit of the citizens of the state, for the preservation, improvement, and enhancement of their health, safety, convenience, and welfare, for the enhancement of their residential, agricultural, recreational, economic, commercial, and industrial opportunities, and for the preservation of the natural resources of the state, and will thereby constitute the performance of essential public purposes and governmental functions by the authority. (2) As the authority will in all respects be performing essential governmental and public functions, said authority shall not be required to pay any taxes or assessments upon any of its property, real, personal, or mixed, nor upon the income therefrom, and revenue bonds or notes issued under this chapter, the income thereon, and the transfer thereof, including any profit made on the sale thereof, shall at all times be exempt from taxation or assessment of any type by the state, its agencies and cabinets, and by all political subdivisions within the state. History: Created 1972 Ky. Acts ch. 329, sec. 21.

KRS 224A.230 Immunity of authority member or officer

224A.230. Immunity of authority member or officer No member or other officer of the authority shall be subject to any personal liability or accountability by reason of his execution of any revenue bonds or notes, or the issuance thereof. History: Created 1972 Ky. Acts ch. 329, sec. 23.

KRS 224A.240 Self-dealing prohibited

224A.240. Self-dealing prohibited No member, officer, or employee of the authority shall be financially interested, directly or indirectly, in any contract of any person with the authority, or have an ownership interest in any firm or corporation interested directly or indirectly in any contract with the authority. History: Created 1972 Ky. Acts ch. 329, sec. 24.

KRS 224A.250 Public nature of meetings and records -- Exception for trade secrets

224A.250. Public nature of meetings and records -- Exception for trade secrets All meetings of the authority shall be public, and the records of the authority shall be open to public inspection at all reasonable times except as otherwise provided in this section. All final actions of the authority shall be journalized, and such journal shall also be open to the inspection of the public at all reasonable times. Any records or information relating to secret processes or secret methods of manufacture or production which may be obtained by the authority, acting in its public and governmental capacity, shall be confidential and shall not be disclosed. History: Created 1972 Ky. Acts ch. 329, sec. 25.

KRS 224A.260 Authority may finance pollution control facilities

224A.260. Authority may finance pollution control facilities (1) The Kentucky Infrastructure Authority may finance pollution control facilities in the manner provided by KRS 103.246. For such purposes, the terms "city" and "county" as used in KRS 103.246 shall also mean and refer to the Kentucky Infrastructure Authority. (2) The authority may enter into the agreements with the United States Small Business Administration as shall be necessary in connection with the financing of pollution control facilities in order to provide for the guarantee of bonds or notes of the Kentucky Infrastructure Authority by the United States Small Business Administration. (3) The authority granted to the Kentucky Infrastructure Authority by this section shall not include the power to acquire property, rights-of-way or easements by condemnation. (4) Neither the Kentucky Infrastructure Authority nor the state or any political subdivision of the state shall be pecuniarily responsible or liable in any manner for the payment of principal of and interest on bonds or notes issued by the authority under this section. The bonds or notes shall be payable solely from revenues, receipts and payments derived from the lease, sale or vesting of the pollution control facilities in and to industrial concerns and utility companies with whom the authority contracts. Effective: March 31, 1988 History: Amended 1988 Ky. Acts ch. 124, sec. 16, effective March 31, 1988. -- Amended 1984 Ky. Acts ch. 216, sec. 16, effective July 13, 1984. - Created 1978 Ky. Acts ch. 97, sec. 1, effective June 17, 1978.

KRS 224A.300 Findings and goals of General Assembly regarding provision of water services in the Commonwealth -- Transfer of responsibility -- Administrative regulations

224A.300. Findings and goals of General Assembly regarding provision of water services in the Commonwealth -- Transfer of responsibility -- Administrative regulations (1) The General Assembly finds that it is necessary to encourage regionalization, consolidation, and partnerships among governmental agencies, and private parties when appropriate, with the goal of making public water and wastewater treatment secure for all Kentuckians. This is accomplished through the maximization of financial, managerial, and technical resources and the protection of source water of the Commonwealth. Based on these findings, the General Assembly declares that the Kentucky Infrastructure Authority shall implement a program for reliable infrastructure and the security and safety of water and wastewater systems as authorized in the budget and directed by the General Assembly. The Energy and Environment Cabinet shall provide technical support to the Kentucky Infrastructure Authority as needed to implement this program. (2) The authority shall be responsible for the management and operation of the Water Resource Information System. The authority shall maintain and, at least annually, update the information contained in this system to ensure its accuracy. (3) The authority may request all branches of state and local government, including special districts and water districts, to provide information relating to the status of existing plants, the financial condition of existing systems, and the existing regulatory authority held by agencies of government regarding the issue of water management. All branches of state and local government shall, to the extent reasonable and appropriate, comply with such requests for information. (4) The authority shall promulgate administrative regul ations that require a water supply and distribution system receiving or seeking funding to provide current information regarding the financial, managerial, and technical aspects of its system and, thereafter, to furnish updates to the information so provid ed. Effective: June 29, 2023 History: Amended 2023 Ky. Acts ch. 179, sec. 2, effective June 29, 2023. -- Amended 2007 Ky. Acts ch. 47, sec. 90, effective June 26, 2007. -- Created 2000 Ky. Acts ch. 529, sec. 1, effective July 14, 2000.

KRS 224A.302 Establishment of water management areas by area development districts

224A.302. Establishment of water management areas by area development districts Within twelve (12) months of July 14, 2000, each area development district shall establish water management areas. The entire area within the area development district shall be included in one (1) or more water management areas. The area development district may determine the boundaries of water management areas by considering geographical or topographical conditions and the potential integration of existing water systems. Where water management areas may lie within more than one (1) area development district, the area development districts shall share planning and plan implementation responsibilities. The area development districts shall develop maps of uniform scale to show, accurately and clearly, the boundaries of each water management area. Effective: June 29, 2023 History: Amended 2023 Ky. Acts ch. 179, sec. 3, effective June 29, 2023. -- Created 2000 Ky. Acts ch. 529, sec. 2, effective July 14, 2000.

KRS 224A.304 Establishment of water and wastewater service regionalization account within infrastructure revolving fund

224A.304. Establishment of water and wastewater service regionalization account within infrastructure revolving fund A water and wastewater service regionalization account is established within the infrastructure revolving fund. The purpose of the account shall be to enhance the effectiveness, reliability, and resilience of the state's water and wastewater systems, and where inefficiencies exist, to eliminate structural and administrative duplication of infrastructure and service delivery systems, by using a variety of tools, including but not limited to regionalization, merger, and consolidation. The authority shall manage the account as funding is authorized by the General Assembly and in a manner to achieve the purposes set out in KRS 224A.300. Effective: June 29, 2023 History: Amended 2023 Ky. Acts ch. 179, sec. 4, effective June 29, 2023. -- Created 2000 Ky. Acts ch. 529, sec. 7, effective July 14, 2000.

KRS 224A.306 Conditions for receiving assistance from fund for water-related infrastructure projects

224A.306. Conditions for receiving assistance from fund for water-related infrastructure projects (1) The authority shall require the following as conditions for receiving assistance from any fund administered by the authority for infrastructure projects related to water and wastewater service: (a) Establishment and use of a financial accounting system that accounts for the operations of water treatment and distribution separately from all other operations of the applicant; (b) Establishment of service rates based upon the cost of providing the service; and (c) An agreement that the authority may require an audit to be conducted of the applicant at least once every two (2) years. (2) The authority shall require all applicants within a class to use the same accounting system. The authority may accept present accounting systems in use and applied uniformly to all applicants within a class, for example, the uniform system of accounts established by the National Association of Regulatory Utility Commissioners. (3) The authority may assist water providers to establish accounting systems that meet the requirements of this section. The authority may provide assistance by paying for third-party private contractors or assistance from the Kentucky Auditor of Public Accounts. (4) The authority may pay for costs related to establishing a new uniform accounting system for the use of governmental agencies that merge or consolidate their water services if: (a) The merging or consolidating entities use different accounti ng systems; and (b) The merger or consolidation is consistent with a water management planning council plan as reviewed and prioritized under KRS 151.607. Effective: June 29, 2023 History: Amended 2023 Ky. Acts ch. 179, sec. 5, effective June 29, 2023. -- Created 2000 Ky. Acts ch. 529, sec. 8, effective July 14, 2000.

KRS 224A.308 Establishment of program to detect water loss from distribution lines or develop or maintain asset management plans -- Loans forgiven

224A.308. Establishment of program to detect water loss from distribution lines or develop or maintain asset management plans -- Loans forgiven (1) The authority shall establish a program to assist governmental agencies in detecting water loss from distribution lines or develop or maintain asset management plans. This may include contracting with third parties to conduct water loss audits, the creation of asset management plans, and leak detection. The assistance may include giving low interest loans, on a priority basis established by the authority consistent with the findings and purposes set out in KRS 224A.300, for the repair or replacement of distribution facilities, deemed reasonable by the authority, undertaken as a result of the water loss audi t. (2) The authority may forgive any amount of a distribution facility repair or replacement loan from the authority remaining unpaid if: (a) Within five (5) years of entering into the loan agreement the governmental agency merges with or consolidates with at least one (1) other public or private water system; and (b) The merger or consolidation is consistent with a water management planning council plan as reviewed and prioritized under KRS 151.607. Effective: June 29, 2023 History: Amended 2023 Ky. Acts ch. 179, sec. 6, effective June 29, 2023. -- Created 2000 Ky. Acts ch. 529, sec. 9, effective July 14, 2000.

KRS 224A.310 Establishment of incentive programs to encourage consolidation of water and wastewater systems and elimination of duplication

224A.310. Establishment of incentive programs to encourage consolidation of water and wastewater systems and elimination of duplication (1) The authority shall establish an incentive program that allocates funds from the water and wastewater service regionalization account that encourages the regionalization, merger, and consolidation of water and wastewater systems and elimination of structural and administrative duplication. Established incentives may be used by government owned and private systems. (2) The incentive program shall target water and wastewater systems that have high debt, inadequate operational and maintenance resources, high maintenance costs, old and inadequately maintained treatment works, a history of violations of the Division of Water's statutes and administrative regulations due to inadequate operational and maintenance resources, or insufficient financial resources to extend system service to unserved or underserved areas. (3) In developing the incentives to encourage governmental agencies to merge, regionalize, consolidate, and partner with target systems and develop or maintain an asset management plan, the authority shall give priority to those projects which have been identified in a water management planning council plan prioritized under KRS 151.607 and meet the funding priorities established by the authority. Effective: June 29, 2023 History: Amended 2023 Ky. Acts ch. 179, sec. 7, effective June 29, 2023. -- Created 2000 Ky. Acts ch. 529, sec. 12, effective July 14, 2000.

KRS 224A.312 Incentive program encouraging infrastructure projects that provide and improve water service to needy areas -- Funding priorities

224A.312. Incentive program encouraging infrastructure projects that provide and improve water service to needy areas -- Funding priorities (1) The authority shall develop an incentive program that allocates funds to encourage new infrastructure projects to provide service to unserved areas and improve service to underserved areas of the state. The incentives may be used by government owned and private systems. (2) The incentives shall be developed to give priority to those projects that have been identified in a water management planning council plan prioritized under KRS 151.607 and meet the funding priorities established by the authority. Effective: June 29, 2023 History: Amended 2023 Ky. Acts ch. 179, sec. 8, effective June 29, 2023. -- Created 2000 Ky. Acts ch. 529, sec. 13, effective July 14, 2000.

KRS 224A.316 Legislative findings -- Program implementation -- Priority to regional projects

224A.316. Legislative findings -- Program implementation -- Priority to regional projects (1) In furtherance of the goal of making access to public water and wastewater systems more resilient and available to the public, the General Assembly finds an d declares that governmental agencies should provide to water and wastewater systems the requisite financial resources to: (a) Develop the technical, managerial, and operational expertise needed to properly operate and maintain their drinking water and was tewater systems; (b) Conserve, protect, and maximize the resources needed to offer drinking water and wastewater systems and services; (c) Upgrade drinking water and wastewater systems and services to prevent water loss and inflow and infiltration from deg rading infrastructure; and (d) Leverage existing finance with anticipated federal dollars or with other sources as may be available from time to time to create a larger pool of finance for water and wastewater systems to make improvements while keeping customer rates affordable. (2) The Kentucky Infrastructure Authority shall implement a program to assist governmental agencies that provide drinking water and wastewater services with the financial resources for both capital and non -capital expenses, including but not limited to: (a) Developing technical, operational, and maintenance resources and expertise; (b) Improving utility infrastructure planning, repair, maintenance, renovation, and management of plants and assets; (c) Obtaining technical expertise in areas of rate-setting, cost-of-service, and proper utility accounting standards for the utility type; (d) Performing and correcting deficiencies from drinking water, wastewater, and financial audits; (e) Providing finance for financial inadequacies, including debt service coverage through relief or refinance of the drinking water or wastewater system's debt; (f) Payment assistance for other financial inadequacies such as excessive maintenance costs, fines and penalties from past violations, or consultants; and (g) Extending finance for inadequately maintained distribution, collection, or treatment works, including service extensions to unserved or underserved areas and the renovation of treatment works to c onserve resources. (3) The authority shall give priority for projects that are regional in nature and achieve the purposes set out in KRS 224A.300, including but not limited to projects designed to correct state or federal deficiencies of a public water or wastewater system that is being acquired as described in KRS 65.058, but only during the forbearance period granted to the acquired public water or wastewater system under that section. Effective: April 12, 2024 History: Amended 2024 Ky. Acts ch. 185, sec. 5, effective April 12, 2024. -- Amended 2023 Ky. Acts ch. 179, sec. 9, effective June 29, 2023. -- Created 2022 Ky. Acts ch. 177, sec. 1, effective July 14, 2022.

KRS 224A.318 Water management assistance fund

224A.318. Water management assistance fund (1) The water management assistance fund shall be established in the State Treasury and shall be administered by the authority. (2) The fund shall be a dedicated fund, and all moneys in the fund shall be allocated for and dedicated to providing financial assistance for both capital and non-capital expenses for governmental agencies that: (a) Provide public drinking water or wastewater services to ratepayers in the Commonwealth; and (b) Are considered financially at risk. (3) The fund may receive donations and gifts, state and federal appropriations, federal grants or loans, and revenues or proceeds from the sale of bonds or from other financial instruments. The fund may receive proceeds from the authority's revolving fund, as available, and if not contrary to the requirements which establish and govern the management and use of those funds. (4) Moneys in the fund shall not lapse but shall be carried forward to the next fiscal year and used solely for the stated purposes in this section and KRS 224A.316. Effective: July 14, 2022 History: Created 2022 Ky. Acts ch. 177, sec. 2, effective July 14, 2022.

KRS 224A.320 Definitions for KRS 224A.320 to 224A.325 -- Kentucky Water and Wastewater Assistance for Troubled or Economically Restrained Systems (WWATERS) Program -- Purpose -- Duties -- Application for funding -- Evaluation of application -- Annual report

224A.320. Definitions for KRS 224A.320 to 224A.325 -- Kentucky Water and Wastewater Assistance for Troubled or Economically Restrained Systems (WWATERS) Program -- Purpose -- Duties -- Application for funding -- Evaluation of application -- Annual report (1) As used in KRS 224A.320 to 224A.325: (a) "Board" means the Kentucky Infrastructure Authority board established in KRS 224A.030; (b) "Eligible funding recipient" means a public water or wastewater system that meets three (3) or more of the criteria lis ted in subsection (7)(d)1. to 8. of this section; (c) "Eligible project": 1. Means a project that would require capital or non -capital expenses including but not limited to expenses relating to: a. Developing technical, operational, and maintenance resourc es and expertise; b. Improving utility infrastructure planning, repair, maintenance, renovation, and management of plants and assets; c. Obtaining technical expertise in areas of rate -setting, cost-of- service, and proper utility accounting standards for th e utility type; d. Performing and correcting deficiencies from drinking water, wastewater, and financial audits; e. Providing financing for financial inadequacies, including debt service coverage through relief or refinance of the drinking water or wastewater system's debt; f. Providing payment assistance for other financial inadequacies including but not limited to excessive maintenance costs, fines and penalties from past violations, or consultants; and g. Extending financing for inadequately maintained distribution, collection, or treatment works, including service extensions to unserved or underserved areas and the renovation of treatment works to conserve resources; and 2. Does not include any project to expand the utility service area of a funding applicant; (d) "Kentucky Water and Wastewater Assistance for Troubled or Economically Restrained Systems Program" or "Ke ntucky WWATERS Program" means the program established under this section and administered by the Kentucky Infrastructure Authority under the direction of its board; and (e) "Public water or wastewater system" means any of the following that serve a community: 1. A water district, water association, or joint water commission formed under KRS Chapter 74; 2. A sewer district or sanitation district formed under KRS Chapter 67, 76, or 220; 3. A municipal water utility and water works, sewer utility, sewage system or works, or combined electric and water plant formed under KRS Chapter 96; and 4. Any combination of two (2) or more of the entities listed in subparagraphs 1. to 3. of this paragraph. (2) The Kentucky WWATERS Program is hereby established under the aut hority to provide for an orderly process for eligible public water or wastewater systems to apply for funds for eligible projects and for those applications to be evaluated, scored, and presented to the General Assembly for consideration for funding. The administration of the program by the authority, under the direction of the board, includes but is not limited to the following: (a) Creating and making available standardized funding applications and regional funding applications; (b) Verifying the eligibil ity of proposed funding recipients, including but not limited to engaging in financial reviews of proposed funding recipients to ensure that they will be able to repay the requested amounts; (c) Verifying that the proposed funding recipient seeks money for an eligible project; (d) Awarding funding to selected eligible funding recipients, which shall be accomplished within sixty (60) days of the effective date of legislation enacted by the General Assembly that authorizes and appropriates the funding; (e) Administering the funding and monitoring funding recipients for their success in improving on any of the performance criteria described in subsection (7)(d)1. to 8. of this section; (f) Enforcing compliance with the requirements of this section for eligible funding recipients; and (g) On or before October 1, 2025, and each quarter thereafter, submitting a report on the status of all funding awarded and administered by the authority pursuant to this section and KRS 224A.322 to the Legislative Research Commission for referral to the Interim Joint Committee on Appropriations and Revenue, or to the House and Senate Standing Committees on Appropriations and Revenue when the General Assembly is in session. (3) (a) To participate in the Kentucky WWATERS Program, a fu nding applicant shall submit an application to the board, which shall include: 1. A corrective action plan detailing how the requested funds would be used to address the performance deficiencies that made the applicant eligible for the funding; and 2. A detailed budget for all proposed project expenses, including but not limited to depreciation plans and explanations for expenses categorized as administrative, miscellaneous, or other expenses. (b) Funding applications may be shared with third-party independent consultants, state agencies, or special purpose governmental entities in reviewing the funding application as allowed under subsection (4) of this section. Once the application process is complete and the funding application is ready for review, it shall be made available to the public. (c) Funding applicants wishing to engage in a regional project shall submit a single application. (d) A funding application for a capital construction project shall include cost and timeline estimates. (e) The board may evaluate and score funding applications for proposed projects in phases as it deems appropriate. (4) The board may contract or consult with a third-party independent consultant, state agencies, or special purpose governmental entities to assist with the funding applicant analysis and scoring described in this section. (5) If a funding applicant is selected as an eligible funding recipient approved under the Kentucky WWATERS Program, it shall: (a) Comply with any reporting or other requirements deemed necessary by the authority to verify that the awarded funding goes toward an eligible project and that the funding recipient is making improvements on the performance criteria described in subsection (7)(d)1. to 8. of this section; (b) Comply with any internal management and governance procedures that the authority may impose in order to correct any performance deficiencies that gave rise to the need for the requested funds; and (c) Adopt best management practices as established and administered by the board that would address the performance deficiencies that made the applicant eligible for the funding, including but not limited to practices relating to: 1. Regulatory compliance; 2. Minimum debt service coverage ratios; 3. Operating ratio targets; 4. Regular rate reviews and adjustments; 5. Minimum cash reserve requirements; 6. Accounts receivable turnover and collection rates; 7. Asset management, lifecycle planning, capital depreciation, and capital reserve funding; 8. Audits, financial reporting, and rate transparency; 9. Water loss reduction; and 10. Training, certification, and emergency preparedness. (6) (a) A funding recipient shall forfeit all moneys received pursuant to this section and KRS 224A.322 and all outstanding funding amounts, including accrued interest, shall be immediately due to the authority if the selected funding recipient: 1. Fails to comply with any of the requirements of this section; 2. Uses the awarded funding for any purpose other than the eligible project for which the funding was awarded; or 3. Transfers or assigns the obligation to repay the funding amounts to any other entity, including any successor in interest. (b) Funding recipients may also forfeit funds and be subject to immediate repayment to the authority of all outstanding funding amounts, including accrued interest, if the authority finds that the recipient has not made adequate improvements on the performance criteria described in subsection (7)(d)1. to 8. of this section. (7) In the implementation of the Kentucky WWATERS Program, the board shall: (a) Hold at least monthly meetings, which may be in conjunction with regularly scheduled board meetings, to discharge its duties under this section; (b) Determine whether a funding applicant is an eligible funding recipient and is seeking funding for an eligible project; (c) Based on the criteria listed in paragraph (d) of this subsection, develop an objective score card or rubric, which may be amended from time to time, to aid in the analysis and scoring of funding applications; (d) Separately evaluate and score each funding applicant's individual project according to the extent to which it meets the following criteria: 1. The median household income within the service area of the funding applicant is less than the Commonwealth's median household income; 2. User rates for the public drinking water or wastewater services provided by the funding applicant are at or above one percent (1%) of annual household income for its service area; 3. The funding applicant has failed to produce a financial statement audit in at least one (1) of the prior three (3) years; 4. The funding applicant has negative income in any two (2) of the previous five (5) years; 5. The funding applicant's debt service coverage ratio, calculated by dividing its annual net operating income by its annual debt payments, was less than one and one-tenth (1.1) in any three (3) of the previous five (5) years; 6. The funding applicant has received a notice of violation or has entered into an agreed order or consent decree as a result of a violation of the requirements of the Safe Drinking Water Act, 42 U.S.C. sec. 300f et seq., or the Clean Water Act, 33 U.S.C. sec. 1251 et seq., and the funding applicant's proposed project would contribute to resolving the violation, ensuring its continued compliance with the relevant requirements of law, or both; 7. The percentage of water loss of the funding applicant's system is greater than thirty percent (30%); 8. The funding applicant can demonstrate, in the form and to the extent that the board may require, that the amount of stormwater inflow and groundwater infiltration entering the funding applicant's system seriously impairs its effectiveness; 9. The funding applicant can demonstrate that the estimated costs of the proposed project are comparable to the actual costs incurred for similar recently completed projects in the same or other systems; 10. The funding applicant has previously received funding through the Kentucky WWATERS Program for a prior phase of the proposed project that has been completed in accordance with the requirements of the program and the funding applicant is seeking additional funding to complete the next phase; 11. For a funding application for a capital construction project, the cost and timeline estimates have been reviewed by a licensed professional engineer permitted to provide such service in the Commonwealth; 12. The funding applicant is willing to use the funding for regionalization, consolidation, or partnerships, consistent with the policy stated in KRS 224A.300(1); 13. The funding applicant, after receiving the funding, will be able to fully resolve the pending issues that are the subject of its application using the funding and other funding sources, if available; and 14. The funding applicant's proposed project demonstrates a high level of community or regional impact potential if funding is awarded; (e) Separately score and individually rank all eligible projects, including proposed projects from the same funding applicant, with additional consideration given to how important the completion of the proposed project would be in providing or restoring safe water or wastewater utility service that is compliant with state and federal law; (f) Within sixty (60) days of a funding application being deemed complete under subsection (3)(b) of this section, make determinations on the eligibility of the proposed project and the applicant and issue a project score for the application; (g) Provide detailed feedback to all funding applicants within fourteen (14) days of the project score being completed; and (h) No later than December 1, 2024, and each December 1 thereafter, submit to the Legislative Research Commission for referral to the Interim Joint Committee on Appropriations and Revenue an annual report containing: 1. The evaluations and scores of the proposed funding recipients for the year to allow for the General Assembly to make the determinations for funding the proposed funding recipients. For each proposed funding recipient that meets the eligibility requirement s for funding, the board shall provide a proposal for the structure and the terms of the funding, including but not limited to whether the funding should be awarded in whole or in part as a grant, loan, no -interest loan, or forgivable loan, the repayment terms and interest rates for loans or portions of loans, and any other conditions that the board proposes to be placed on the funding; 2. A list of all program applicants; 3. The identity of applicants who did not meet the eligibility requirements for participation in the program; 4. Trends found in feedback given to applicants who did not meet the eligibility requirements for participation in the program; and 5. Eligible uses of funding cited in the funding applications. Effective: April 13, 2026 History: Amended 2026 Ky. Acts ch. 116, sec. 1, effective April 13, 2026. -- Created 2024 Ky. Acts ch. 185, sec. 1, effective April 12, 2024.

KRS 224A.322 Kentucky water and wastewater assistance for troubled or economically restrained systems fund

224A.322. Kentucky water and wastewater assistance for troubled or economically restrained systems fund (1) The Kentucky water and wastewater assistance for troubled or economically restrained systems fund is hereby established in the State Treasury and shall be administered by the authority. (2) The fund shall be a dedicated revolving fund, and all moneys in the fund shall be allocated by the General Assembly for and dedicated to providing funding for both capital and non-capital expenses for eligible projects by public water or wastewater systems, as evaluated and scored pursuant to KRS 224A.320. (3) Funding may be awarded pursuant to this section in the form of grants, loans, no- interest loans, or forgivable loans as proposed by the board and determined by the General Assembly. Interest rates for loans awarded pursuant to this section shall be set using the same criteria to set the interest rates for loans from the federally- assisted water supply revolving fund administered by the authority under KRS 224A.1115 and the federally-assisted wastewater revolving fund administered by the authority under KRS 224A.111, except that interest rates for loans awarded pursuant to this section shall be set at least one-half of one percent (0.5%) lower than they would have been if awarded from the federally-assisted water supply and wastewater revolving funds, provided that a loan interest rate for a loan awarded pursuant to this section shall not be less than zero percent (0%). (4) (a) The fund may receive donations, gifts, state appropriations, repayments from the funding provided under subsection (2) of this section, and revenues or proceeds from the sale of bonds or from other financial instruments. (b) The fund may receive proceeds from the authority's infrastructure revolving fund under KRS 224A.304, as available, if: 1. Not contrary to the requirements which establish and govern the management and use of those funds; and 2. The proceeds do not contain any federal moneys. (c) Any interest earnings of the fund shall become a part of the fund and shall not lapse. (5) Notwithstanding KRS 45.229, moneys in the fund shall not lapse but shall be carried forward to the next fiscal year and used solely for the stated purposes in this section and KRS 224A.320. (6) The authority may use up to one-half of one percent (0.5%) of moneys deposited into the fund established by this section for administrative costs resulting from the discharge of its duties under KRS 224A.320 to 224A.325. Effective: April 12, 2024 History: Created 2024 Ky. Acts ch. 185, sec. 2, effective April 12, 2024.

KRS 224A.325 Emergency Kentucky water and wastewater assistance for troubled or economically restrained systems fund

224A.325. Emergency Kentucky water and wastewater assistance for troubled or economically restrained systems fund (1) The emergency Kentucky water and wastewater assistance for troubled or economically restrained systems fund is hereby established in the State Treasury and shall be administered by the authority. (2) The fund shall be a dedicated revolving fund, and all moneys in the fund shall be dedicated to providing funding for both capital and non-capital expenses relating solely to restoring or avoiding imminent interruption of utility service provided by a public water or wastewater system after a statewide state of emergency has been declared pursuant to KRS Chapter 39A or a local state of emergency has been declared for the jurisdiction where the public water or wastewater system is located pursuant to KRS Chapter 39B. (3) The authority may require a public water or wastewater system to include with its application for funding under this section a corrective action plan detailing how the applicant plans to address any performance deficiencies that may have given rise to the need for the requested funding. (4) Interest rates for loans awarded pursuant to this section shall be set using the same criteria to set the interest rates for loans from the federally-assisted water supply revolving fund administered by the authority under KRS 224A.1115 and the federally-assisted wastewater revolving fund administered by the authority under KRS 224A.111. (5) (a) The fund may receive donations, gifts, state appropriations, repayments from the funding provided under subsection (2) of this section, and revenues or proceeds from the sale of bonds or from other financial instruments. (b) The fund may receive proceeds from the authority's infrastructure revolving fund under KRS 224A.304, as available, if: 1. Not contrary to the requirements which establish and govern the management and use of those funds; and 2. The proceeds do not contain any federal moneys. (c) Any interest earnings of the fund shall become a part of the fund and shall not lapse. (6) Notwithstanding KRS 45.229, moneys in the fund shall not lapse but shall be carried forward to the next fiscal year and used solely for the stated purposes in this section. Effective: April 12, 2024 History: Created 2024 Ky. Acts ch. 185, sec. 3, effective April 12, 2024.

KRS 224A.1115 Creation of federally assisted water supply revolving fund -- Purpose -- Duties of authority

224A.1115. Creation of federally assisted water supply revolving fund -- Purpose -- Duties of authority (1) The federally-assisted water supply revolving fund shall be established in the State Treasury and shall be administered by the authority under an agreement with the Energy and Environment Cabinet to assure compliance with the federal act. (2) The fund shall be a dedicated fund and all moneys in the fund shall be dedicated solely to securing the payment of the principal of, interest on, and premium, if any, of revenue bonds issued by the authority under subsection (5) of this section which are to be secured solely by loan payments made by governmental agencies that have been deposited in the fund, making transfers to the federally-assisted water supply revolving fund, and providing financial assistance to government agencies for the construction of publicly-owned water supply projects. (3) The authority may enter into grant agreements with the administrator of the United States Environmental Protection Agency and accept capitalization grants for the revolving fund in accordance with payment schedules established with the administrator of the United States Environmental Protection Agency. (4) All payments from the administrator of the United States Environmental Protection Agency pursuant to subsection (3) of this section shall be deposited in the dedicated revolving fund. (5) The authority may issue its revenue bonds or seek appropriations for deposit into the revolving fund, including the amounts required to match the capitalization grants from the administrator of the United States Environmental Protection Agency. An amount not exceeding the amount permitted by the federal act may be used for the reasonable costs of administering the fund, for reviewing and regulating project construction and for other reasonable costs of complying with the federal act. (6) The authority shall make any loan from the revolving fund subject to those conditions established by state or federal law. (7) The revolving fund shall be established, maintained, and credited with repayments and the fund balance shall be available in perpetuity solely for its stated purposes. (8) Financial assistance may be provided from the fund only for those infrastructure projects which the Finance and Administration Cabinet has approved from the prioritization schedule prepared by the Energy and Environment Cabinet. (9) The authority shall establish fiscal controls and accounting procedures sufficient to assure proper accounting during appropriate accounting periods for payments and disbursements received and made by the revolving fund and for fund balances at the beginning and end of the accounting period. (10) The authority or the Energy and Environment Cabinet may make or prepare any necessary or required plan or report. (11) The authority or the Energy and Environment Cabinet or the loan recipient shall make available to the administrator of the United States Environmental Protection Agency records which the administrator reasonably requires to review in order to determine compliance with any applicable provision of law. (12) The authority may enter into any necessary or required agreement and give or make any necessary or required assurance or certification with any person to receive payments or grants or to make or provide any financial assistance. (13) The authority may enter into any necessary or required agreement with federal or state agencies or persons to carry out the provisions of this section. (14) If the loan is made from the federally-assisted water supply revolving fund which will finance the cost of facility planning and the preparation of plans, specifications, and estimates for construction of publicly-owned water supply projects, the state shall ensure that if the recipient of the loan receives a grant under the federal act for construction of those water supply projects and an allowance under the federal act for nonfederal funds expended for the planning and preparation, the recipient shall promptly repay the loan to the extent of the allowance. (15) Financial assistance may be provided from the federally-assisted water supply revolving fund only with respect to a project which is consistent with plans, if any, developed under the federal act, as amended. (16) The authority shall require as a condition of making a loan or providing other assistance, as described in KRS 224A.100(6), from the fund that the recipient of the assistance shall maintain project accounts in accordance with generally-accepted governmental accounting standards. (17) Assistance may be provided from the fund to a governmental agency with respect to the nonfederal share of the costs of a water supply system project for which the governmental agency is receiving assistance from the administrator of the United States Environmental Protection Agency under any other authority only if the assistance is necessary to allow the project to proceed, as determined by the Finance and Administration Cabinet. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 388, effective July 15, 2010. -- Amended 2003 Ky. Acts ch. 38, sec. 2, effective June 24, 2003. -- Created 1994 Ky. Acts ch. 373, sec. 8, effective July 15, 1994.

KRS 224A.1118 Office of Broadband Development -- Purpose -- Duties and responsibilities

224A.1118. Office of Broadband Development -- Purpose -- Duties and responsibilities (1) There is established the Office of Broadband Development, which shall: (a) Be administratively attached to the Kentucky Infrastructure Authority; (b) Encourage, foster, develop, and improve broadband within the Commonwealth to: 1. Drive job creation, promote innovation, and expand markets for Kentucky businesses; and 2. Serve the ongoing and growing needs of Kentucky's: a. Agricultural, educational, health care, and public safety systems; b. Industries and businesses; c. Governmental operations; and d. Citizens; (c) Improve broadband accessibility for unserved and underserved communities and populations; (d) Develop, coordinate, administer, and implement the Commonwealth's broadband deployment fund under KRS 224A.112; (e) Perform all administrative functions necessary to carry out the purposes of this section; (f) On behalf of the Commonwealth, serve as: 1. The central broadband planning and coordination entity; 2. The single point of contact and liaison to federal agencies and programs regarding broadband issues, including but not limited to: a. National Telecommunications and Information Administration; b. Federal Communications Commission; c. United States Department of Agriculture Rural Utilities Service; and d. United States Treasury; and 3. An information clearinghouse for federal programs providing financial assistance to institutions located in rural areas seeking to obtain access to broadband; (g) Coordinate with other state, regional, local, and private entities to: 1. Develop and implement a statewide broadband plan, including relevant goals and objectives; 2. Develop and encourage cost-effective broadband; 3. Make recommendations for broadband infrastructure development, particularly in rural, unserved, and underserved areas; and 4. Provide consultation services to local units of government or other project sponsors in connection with the planning, acquisition, improvement, construction, or development of any broadband deployment project; (h) Monitor the broadband development efforts of other states and nations; (i) Maintain data and statistics on broadband throughout the Commonwealth by: 1. Collecting broadband availability data from Kentucky broadband providers and other sources on a street address or location-specific basis; 2. Verifying the accuracy of that data through on-the-ground testing; 3. Creating and maintaining a statewide interactive map displaying broadband availability, which shall be available for public and state government use online; 4. Analyzing the deployment data collected to inform and guide future investments in broadband infrastructure, including moneys expended under the broadband deployment fund; 5. Empirically validating, on a targeted basis, the accuracy of broadband data that is routinely collected by the Federal Communications Commission to pinpoint areas of overstatement and understatement that may exist; 6. Challenging the validity of the data as may be warranted, on behalf of the Commonwealth, to ensure that this state is receiving its due share of funding from federal broadband programs; and 7. Monitoring the progress of federal awards for deploying broadband infrastructure to Kentucky locations and issuing an annual report to the Governor and the Interim Joint Committee on Appropriations and Revenue by November 1 of each year; (j) Develop a process for: 1. Receiving complaints related to insufficient broadband service; 2. Incorporating forms for the collection of data related to the complaints; 3. Resolving complaints; 4. Reporting the information collected on unresolved complaints; and 5. Referring complaints to the Office of the Attorney General, Federal Communications Commission, or Federal Trade Commission, as appropriate; and (k) Perform other duties and responsibilities as necessary to promote the development of broadband within the Commonwealth. (2) The office shall have all the power, not explicitly prohibited by statute, necessary and convenient to carry out and effectuate the purposes of this section, including: (a) Entering into contracts or agreements necessary or incidental to the performance of its duties, functions, and responsibilities; (b) Soliciting, borrowing, accepting, receiving, and expending funds from any public or private source, property, labor, or other things of value to be used to carry out the office's operations, functions, and responsibilities; and (c) Promulgating administrative regulations under KRS Chapter 13A. (3) (a) The authority may contract with a private nonprofit corporation with at least five (5) years of broadband and telecommunications public policy research and mapping experience to fulfill the purposes, duties, and responsibilities of the office as required in subsections (1) and (2) of this section. (b) If the authority exercises its option to contract with an entity to fulfill the office's obligations under this section, the procurement shall not abrogate the authority from fulfilling the office's duties or achieving the timelines for issuing grants in KRS 224A.1121. (4) The authority shall report the activities of the office to the Legislative Research Commission on a semiannual basis, each January 1 and each July 1. Effective:April 14, 2022 History: Created 2022 Ky. Acts ch. 202, sec. 1, effective April 14, 2022.

KRS 224A.1121 Purpose of broadband deployment account -- Grant program -- Funding criteria and prioritization schedules -- Guidelines and standards for grants -- Applications available to public -- Challenge -- Partial funding -- Administrative regulations

224A.1121. Purpose of broadband deployment account -- Grant program -- Funding criteria and prioritization schedules -- Guidelines and standards for grants -- Applications available to public -- Challenge -- Partial funding -- Administrative regulations (1) (a) The purpose of the broadband deployment fund set forth in KRS 224A.112 shall be to: 1. Assist governmental agencies and private sector entities to construct infrastructure for the deployment of broadband service to underserved or unserved areas of the Commonwealth; and 2. Provide supplemental funding for recipients of federal government awards specifically to support the deployment or expansion of broadband networks. (b) The office shall manage the fund and may accept and receive appropriations from the General Assembly or other funds or gifts from both public and private sources, including but not limited to local governments and federal agencies. (2) The office shall establish a grant program that allocates funds from the broadband deployment fund in accordance with this section. (3) (a) The office shall issue grant applications for all projects awarded grant funds on or after April 5, 2022. (b) Grant funds may be used by government or private sector entities for broadband deployment projects. (4) The office shall develop funding criteria and prioritization schedules for broadband deployment projects in accordance with this section. (5) (a) The office shall establish guidelines and standards for applying for and approving grants from the broadband deployment fund according to the minimum requirements in this section. No additional requirement shall be added which could delay broadband deployment. (b) An eligible applicant shall submit an application to the office. (c) An application for a grant shall contain any information the office requires, including but not limited to: 1. A shapefile of the broadband deployment project area and a list of addresses in the broadband deployment project area; 2. A description of the broadband deployment project, including facilities, equipment, total cost, timeframe for completion, and network capabilities, including minimum speed thresholds; 3. Documentation of the applicant's technical, financial, and managerial resources and experience to build, operate, and manage broadband networks serving citizens, households, and businesses in Kentucky, including a detailed project management plan identifying staff, contractors, and key responsibilities; 4. Documentation of the economic and commercial feasibility of the proposed broadband deployment project, including a detailed project budget and documentation of availability of supplies; 5. The number of addresses within the broadband deployment project area that would have new access to broadband as a result of the grant; 6. The amount of matching funds the eligible applicant will contribute and a certification that no portion of the matching funds is derived from any state or federal grant received for the purpose of funding broadband infrastructure within the project area; and 7. A certification that none of the funds provided by the program for the project in the application will be used to extend or deploy facilities to any currently served addresses. (6) The office shall make all information within each application available to the public within five (5) business days following the deadline for submission of applications, provided the information contained within an application is not exempt from disclosure under the provisions of the Open Records Act, KRS 61.870 to 61.884. The description of the geographic scope of the broadband deployment project area shall not be exempt under the Open Records Act, KRS 61.870 to 61.884, and shall be made available to the public within five (5) days after submission of the application. (7) (a) As part of the grant application process under subsection (5) of this section, the office shall include an opportunity for a challenging broadband service provider to challenge an application within fifteen (15) business days of making all information available to the public under subsection (6) of this section. (b) A challenging provider shall provide the office with proof that: 1. The broadband deployment project area is: a. Currently served; or b. Under construction for provision of broadband service within twelve (12) months of the challenge; or 2. The applicant has received funds from another state or federally funded grant program designed to encourage broadband deployment in the broadband deployment project area that covers more than fifty percent (50%) of the eligible project expenses. (c) As part of the challenge process and in order to meet the burden of proof in paragraph (b) of this subsection, the challenging provider shall submit: 1. A shapefile and a list of addresses containing all addresses within the broadband deployment project area that the challenging broadband service provider currently serves and the maximum megabits per second downstream speed and the maximum megabits per second upstream speed provided to each challenged address; 2. A feasibility study, construction plan, or other relevant documentation that clearly and convincingly demonstrates that the challenging broadband service provider will be under construction within twelve (12) months of the application date for the broadband deployment fund grant, which may be extended by the office an additional six (6) months because of undue construction delays; or 3. Loan documents, grant award receipts, or other financial information that clearly and convincingly demonstrates to the office that the challenging broadband service provider has received adequate funds from another state or federally funded grant program designed to encourage broadband deployment in the area. (d) Within five (5) business days of a challenge being submitted to the office, the provider submitting the application which is challenged shall be provided copies of all challenge material. (e) The office shall treat any information submitted as part of a challenge as confidential and exempt from disclosure under the Open Records Act, KRS 61.870 to 61.884, upon the challenging provider's request for confidential treatment. (f) Within fifteen (15) business days of receipt of the copies under paragraph (d) of this subsection, the applicant shall respond to the challenge. (g) Once the response to the challenge is submitted to the office by the applicant, the office shall have fifteen (15) business days to resolve the dispute. (h) Upon a determination that a challenge is unsuccessful because the challenging provider is unable to prove, within the timeframe provided under this section, that the provider currently serves a broadband deployment project area, the office shall move forward with the funding process provided in this section. (8) (a) Upon a determination that an application meets the funding criteria, but the proposed project area is found to be partially served, the applicant may amend and resubmit the application within fifteen (15) business days and the office may grant partial funding based on the partial service provided in order to ensure that grant funds are used to only provide broadband service to addresses deemed underserved or unserved. (b) In the event of a challenge that involves subsection (7)(c)2. of this section and those addresses are not under construction within twelve (12) months, or eighteen (18) months if extended by the office, the challenging provider shall pay a civil penalty to the broadband deployment fund in an amount equal to the amount of grant funding for those addresses plus ten percent (10%). (9) When awarding grant funds, the office shall award funding to addresses with no service first, then to addresses that are unserved, and then lastly to addresses that are underserved. The office shall: (a) Score the unserved and underserved grant applications based on the following criteria, giving priority consideration in the order listed: 1. Projects in unserved and underserved areas that reach the customers that are the least economical to serve, in the following order; a. Projects that average zero to five (5) locations per route mile; b. Projects that average five (5) to ten (10) locations per route mile; and c. Projects that average eleven (11) locations or more per route mile; 2. Projects in unserved and underserved areas where local, state, or federal funds are not available; 3. Fiber-to-the-premise projects that will deploy broadband services with a capacity to transmit data from or to the Internet with symmetrical downstream and upstream speeds of at least one (1) gigabit; 4. Projects deploying infrastructure capable of achieving symmetrical speeds at a minimum of one hundred (100) megabits per second download and upload speeds; 5. The size and the scope of the unserved and underserved area proposed to be served; 6. The technical, managerial, and financial capabilities of the applicant, demonstrating the ability to successfully deploy the proposed project and provide broadband service; 7. A project requesting less than fifty percent (50%) funding from the requested grant; 8. Projects that will be eligible for the Affordable Connectivity Program for low-income consumers administered by the Federal Communications Commission; and 9. Projects that plan to encourage adoption of broadband services, including community outreach to promote adoption, technical support, and training on how to connect; (b) Award no more than fifty percent (50%) of the total project cost, unless the project meets the following density requirements: 1. Projects that average zero to five (5) locations per route mile, which may be eligible for reimbursement of up to seventy percent (70%) of the cost of the project; 2. Projects that average five (5) to ten (10) locations per route mile, which may be eligible for reimbursement of up to sixty percent (60%) of the cost of the project; and 3. Projects that average eleven (11) locations or more per route mile, which may be eligible for reimbursement of fifty percent (50%) of the cost of the project; (c) Require the remaining project costs to be paid by matching funds from: 1. A private source, including but not limited to financial institutions that serve distribution cooperatives; 2. A city, county, urban-county government, or consolidated local government; or 3. Any combination of matching moneys provided under subparagraphs 1. and 2. of this paragraph; (d) Allow eligible project expenses, including those that are incurred starting on or after the date in the written acknowledgement of acceptance issued under paragraph (f) of this subsection and ending at the conclusion of the grant project, or grant project contractual term, whichever is earlier, and may include: 1. Project engineering or design plans; 2. Permitting; 3. Pre-construction costs to make ready the project site; 4. Outside plant materials, including fiber; poles, hardware, conduit or splitters; 5. Labor, construction management, and equipment; and 6. Installation and testing of the broadband services; (e) Make a determination that an application meets the funding criteria, unless the proposed project area is found to be partially served, in which case the application may be amended and partial funding based on the partial service provided may be granted; and (f) 1. Issue within sixty (60) days of receipt of an application for grant funds, except in the case of a challenged application under the timeline in subsection (7) of this section, a written acknowledgement of either: a. Acceptance; b. Denial and any reasons for denial of the application; or c. A request for additional information to process the application listing the specific information required; and 2. Issue grant funds to the applicant by the fifteenth day of the month, or the next business day if the fifteenth day falls on a weekend day or state or federal holiday, when a complete requisition of funds packet is received prior to the fifth day of the month. (10) The office shall not reimburse applicants for special construction charges, including fees or charges imposed upon the end user as a condition of receiving broadband service at an address. (11) The office may provide an incentive for timely completion or a disincentive for not meeting agreed upon timeframes. (12) Grant funds awarded to an applicant to supplement the applicant's federal fund award may not be used for costs that will be reimbursed by the other federal funds. (13) No funds shall be used: (a) To support any broadband deployment project involving the upgrade of an existing facility already delivering broadband services, including an upgrade of existing wireline, or terrestrial infrastructure capable of delivering services greater than twenty-five (25) megabits per second downstream and three (3) megabits per second upstream; or (b) For non-capital expenses, non-broadband services, marketing, or advertising. (14) Moneys in this fund shall not be used by or transferred to the Kentucky Communications Network Authority. (15) (a) To carry out the purposes of this section, the office may promulgate administration regulations under KRS Chapter 13A. (b) The office shall not promulgate any regulations that place obligations on the applicants that are more restrictive than applicable federal or state law. (c) In the event that any state law or administrative regulation affecting the broadband deployment fund conflicts with any federal law or regulation related to federal broadband funding, the federal law or regulation shall govern. The office may adopt state and local program requirements to comply with all federal laws and regulation related to federal broadband funding. Effective:April 14, 2022 History: Amended 2022 Ky. Acts ch. 202, sec. 4, effective April 14, 2022. -- Amended 2020 Ky. Acts ch. 72, sec. 4, effective July 15, 2020. -- Created 2006 Ky. Acts ch. 134, sec. 3, effective July 12, 2006.

KRS 224A.1123 Rural infrastructure improvement fund -- Kentucky Rural Infrastructure Improvement Program

224A.1123. Rural infrastructure improvement fund -- Kentucky Rural Infrastructure Improvement Program (1) The General Assembly hereby finds and declares that: (a) A rural infrastructure improvement fund, and a program to administer the fund, is necessary to further the Commonwealth's goal to expand and accelerate access to broadband service throughout the entire Commonwealth; and (b) Supporting the replacement of utility poles will provide benefits to Kentucky residents by: 1. Facilitating the construction of broadband networks; 2. Minimizing the potential for disputes between broadband providers and utility pole owners that could otherwise delay deployment; 3. Improving the resiliency and longevity of broadband infrastructure; and 4. Addressing needs for broadband investment not yet fully met by existing programs. (2) As used in this section: (a) "Application" means an application made under subsection (4) of this section for eligible pole replacement costs; (b) "Eligible pole replacement": 1. Means the removal of an existing utility pole and replacement with a new utility pole in an unserved area in order to accommodate the attachment of facilities to be used, in whole or in part, by a retail provider to provide qualifying broadband service access to residences or businesses within an unserved area; and 2. Does not include the removal and replacem ent of a utility pole in order to accommodate facilities used only for the provision of wholesale broadband or data transport service, where the owner of the facilities, or its affiliate, does not use the facilities to provide qualifying broadband services directly to residences or businesses; (c) "Eligible pole replacement costs": 1. Means: a. The actual and reasonable costs paid or incurred to perform an eligible pole replacement; b. The amounts of any expenditures to remove and dispose of the existing utility pole, to purchase and install a replacement utility pole, or to transfer any existing facilities to the new pole; and c. The costs of reimbursing another party for the costs of performing an eligible pole replacement, when paid or incurred by the per son responsible for the costs; and 2. Does not include: a. Costs paid or incurred to perform an eligible pole replacement by a party who is not responsible for those costs, and which are charged or passed along to the responsible party; b. Costs for which the party incurring or paying the costs separately has received or is entitled to receive reimbursement under the terms of a state or federal grant program for the deployment of broadband facilities; and c. The receipt of a state or federal grant where the pole replacement costs, for which reimbursement is requested, exceed the pole replacement costs that were reasonably anticipated at the time of, or on which the amount of, the other support funding was predicated. Costs are considered separately reimburs ed for purposes of this paragraph if the amount of an award under another state or federal broadband program included consideration, by the awarding entity, of the pole replacement costs by the applicant; (d) "Fund" means the rural infrastructure improveme nt fund established by subsection (3) of this section; (e) "Pole owner" means any person or entity that owns or controls a utility pole; (f) "Program" means the Kentucky Rural Infrastructure Improvement Program established by subsection (4) of this section ; (g) "Qualifying broadband service" means a retail wireline broadband service capable of delivering Internet access at speeds of at least one hundred (100) megabits per second in both the downstream and upstream directions, and with latency at a level sufficient to permit real-time, interactive applications; and (h) "Utility pole" means any pole used, in whole or in part, for any wire communications or electric distribution, regardless of the owner or operator of the pole. (3) (a) There is created within the State Treasury a trust and agency account to be known as the rural infrastructure improvement fund, consisting of moneys appropriated by the General Assembly, federal funds, grants, and gifts. (b) The fund shall be administered by the Office of Broadba nd Development and all money deposited in the fund shall be used: 1. By the office to provide reimbursements to qualified applicants under the Rural Infrastructure Improvement Program established under subsection (4) of this section; 2. For the purposes of covering the costs of program administration and operation; and 3. In a manner consistent with federal law. (c) Notwithstanding KRS 45.229, any moneys remaining in the fund at the close of the fiscal year shall not lapse but shall be carried forward into the succeeding fiscal year to be used for the purposes set forth in this section. (d) Interest earned on money deposited to the credit of the fund shall be retained in the fund and shall not lapse. (e) Moneys deposited in the fund are hereby appropriated for the purposes in this section. (4) (a) There is hereby established the Kentucky Rural Infrastructure Improvement Program for the purpose of expediting and facilitating the deployment of broadband service to individuals, businesses, agricultural operations, and community access points in unserved areas by reimbursing a portion of eligible pole replacement costs incu rred by eligible applicants. (b) The office shall administer and provide staff assistance for the program and shall be responsible for receiving, reviewing, and approving applications for pole reimbursements. (c) The office shall award pole reimbursements from moneys in the fund created by subsection (3) of this section until all moneys in the fund are exhausted. (d) No later than September 1, 2022, the office shall: 1. Promulgate administrative regulations under KRS Chapter 13A necessary for the administr ation of this section; 2. Publish an application for pole replacement reimbursements that shall require: a. Information sufficient to establish the number, cost, and eligibility of eligible pole replacements that qualify for reimbursement; b. Documentation sufficient to establish that the claimed eligible pole replacements have been completed, including receipts verifying the amount of eligible pole replacement costs paid by the applicant; c. The amount of program reimbursement requested in the application and any grant funding or accounting information required to justify the amount of the request; d. i. A statement that the costs for which reimbursement is requested have not been reimbursed through any other state or federal broadband grant program. ii. If the applicant is a recipient of funding from another program, the statement shall include an explanation of how the costs for which reimbursement is requested exceed the pole replacement costs on which the original award was predicated or that were reasonably anticipated at the time of the original award; e. A notarized statement from an officer or agent of the applicant that the contents of the application are true and accurate and that the applicant accepts the requirements of this section and any promulgated administrative regulations as a condition of receiving an award of program reimbursement; and f. Any other information necessary for the office to comply with any conditions on federal funding used in connection with the program; and 3. Publish and maintain on its Web site: a. Statistics on the number of applications received, processed, and rejected by the office under the pole replacement program; b. Statistics on the size, number, and status of reimbursements awarded by the office under the pole re placement program, including the pole owners and broadband providers receiving reimbursements; and c. The amount of money remaining in the fund. (e) An applicant who incurs or pays the costs of an eligible pole replacement to accommodate broadband faciliti es consistent with this section may apply to the office for reimbursement. (f) As a condition of receiving reimbursement under this subsection, an applicant shall: 1. Certify its compliance with the requirements of this section; 2. Agree to comply with any requirements that the office determines to be necessary conditions on federal funding used in connection with the program; 3. Agree to refund, with interest at the applicable federal funds rate as specified by KRS 355.4A-506, to the fund, any reimbursements or portions of reimbursements received from the fund under this subsection, if the office finds, upon substantial evidence a nd after notice and opportunity to respond, that the recipient materially violated any of the requirements agreed to under this section; 4. Agree that no funds awarded by the program will be used to meet any cash match requirement under any other broadband program administered by the Commonwealth or one (1) of its subdivisions; 5. Agree to submit reports as the office may require regarding broadband deployment facilitated by the program, which may include reports demonstrating that an application that has r eceived a federally funded award is meeting or exceeding buildout requirements contained in that award; and 6. Agree to not include in any rates or fees charged for its services any eligible pole replacement costs that were reimbursed by the program, paid for by a broadband provider, or funded by another grant source. (g) 1. If the necessary information is not otherwise reasonably available to the applicant, the applicant may request a pole owner performing an eligible pole replacement to provide the number and costs of the pole replacements, receipts verifying the amount of pole replacement costs paid by the applicant, and confirmation that the pole replacement costs were incurred to accommodate the applicant’s attachment and not due to some other reason. 2. In the event the office requires additional information from an applicant following the submission of an application to confirm the eligibility of costs in an application that is in the possession of the pole owner and not otherwise reasonably available to the applicant, the applicant may also request that the pole owner assist with providing the information as requested by the office. 3. A pole owner shall coordinate in good faith to provide the information to the applicant, and may require reimbursement from the broadband provider of its actual and reasonable administrative expenses in connection with the coordination, which shall not exceed five percent (5%) of the eligible pole replacement costs. 4. Administrative costs that a broadband provider reimburses to a pole owner under this subsection are not eligible for reimbursement from the fund as eligible pole replacement costs. (h) Within sixty (60) days of receipt of a completed application establishing the eligibility of costs for reimbursement, and to the extent that moneys are available in the fund, the office shall award the lesser of: 1. Five thousand dollars ($5,000) for each pole replaced; or 2. Fifty percent (50%) of the total amount incurred or paid by the applicant for eligible pole replacement costs. (i) Any application pending at the exhaustion of the moneys in the fund shall be deemed denied but may be refiled if sufficient moneys are later made available in the fund. (j) No later than one (1) year after the fund receives moneys for the purpose of providing pole replacement reimbursements to qualified applicants, the authority shall, on an annual basis, cause to be conducted an independent audit of the office's administration of the fund for compliance with the requirements of this section. This audit may be performed by either the Auditor of Public Accounts or a certified public accountant in conjunction with the annual audit of the authority. The authority shall comply with the provisions of KRS 45.149 before entering into a contract for audit services with a certified public accountant. (5) A broadband provider's use of funds reimbursed under this subsection to pay eligible pole replacement costs shall have no effect on the subsequent ownership of any replacement pole purchases and installed by a pole owner using the funds. Effective: April 14, 2022 History: Created 2022 Ky. Acts ch. 202, sec. 5, effective April 14, 2022. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 5, (2) at 2053.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38342Fetched: 10/20/2026

Starting a business in Kentucky? Kentucky LLC guide: costs and requirements