KRS 14.125: Federal qualified elementary and secondary education scholarship tax

credit -- Duties -- Administrative regulations -- Fees -- Immunity.

(1) Pursuant to 26 U.S.C. sec. 25F(g):

(a) The General Assembly hereby designates itself under state law t o make the

election on behalf of the Commonwealth with respect to federal tax benefits

under 26 U.S.C. sec. 25F;

(b) The General Assembly hereby elects that in each calendar year the

Commonwealth of Kentucky shall:

1. Participate in the qualified elementar y and secondary education

scholarship federal tax credit established under 26 U.S.C. sec. 25F, or

any successor program, for individuals who make qualifying

contributions to scholarship granting organizations; and

2. Identify scholarship granting organizations in the state;

(c) The Secretary of State is hereby designated under Kentucky law as the sole

official authorized to:

1. Report the state's election to participate in the qualified elementary and

secondary education scholarship federal tax credit under 26 U.S.C. sec.

25F; and

2. Submit a list as described in 26 U.S.C sec. 25F(g) and perform other

functions necessary to implement the General Assembly's election under

paragraph (a) of this subsection; and

(d) The Secretary of State shall notify the United States Secretary of the Treasury

of the Commonwealth's participation in the qualified elementary and

secondary education scholarship federal tax credit and submit the list

established by the Secretary of State by January 1 of each year.

(2) The Secretary of State shall publish the associated administrative regulations and

other applicable guidance issued by the United States Secretary of the Treasury or

the Internal Revenue Service on the Secretary of State's website.

(3) The Secretary of State may promulgate administrative regulations in accordance

with KRS Chapter 13A necessary to carry out this section.

(4) The Secretary of State shall collect a fee from scholarship granting organizations or

accept private c ontributions to pay the necessary costs of administration of this

section. All amounts received under this subsection shall be deposited in a restricted

fund account, not commingled, and shall be used solely to administer this section.

(5) Any immunity und er the Eleventh Amendment to the Constitution of the United

States is waived under this section.