KRS 154.12-100: Economic development fund -- Project selection criteria -- Written

commitment -- Approval -- Report.

(1) "Economic development fund" means the fund authorized by the General Assembly

for the purpose of promoting economic development within the state.

(2) The economic development fund shall be funded through the issuance of bonds by

the State Property and Buildings Commission or other appropriation by the General

Assembly.

(3) The economic development fund shall be administered by the secretary of the

Cabinet for Economic Development. The authority shall promulgate administrative

regulations in accordance with KRS Chapter 13A for project selection criteria and

administration of the economic development fund. The project selection criteria

shall include but not be limited to the following:

(a) Potential job creation or job retention;

(b) Degree of public or private and local involvement;

(c) Degree and conditions of project payback; and

(d) Amount of investment.

(4) Prior to submission of an econom ic development fund project to the authority, the

secretary of the Cabinet for Economic Development shall receive a written

commitment from the public or private organization which has requested funds

outlining projected job creation and retention, an inve stment breakdown, and

overall project description. This shall be submitted by the secretary to the authority.

Subsequently, the secretary of the Cabinet for Economic Development shall execute

a written agreement with the public or private organizations inv olved expressing in

detail the respective obligations on the parties.

(5) Projects of state agencies as defined in KRS 42.005 shall not be eligible for funding

from the economic development fund program, unless expressly provided in a

branch budget bill. Airport construction and renovation projects shall be eligible for

funding under this section. The secretary of the Cabinet for Economic Development

shall consult with the secretary of the Finance and Administration Cabinet on the

terms and conditions relating to the use of funds pursuant to this section before any

commitment is made on any project to any public or private organization.

(6) Following the approval by the authority, the project shall be presented by the

secretary of the Cabinet for Economic De velopment or his or her designee with

supporting documentation for review and approval at the next regularly scheduled

meeting of the Capital Projects and Bond Oversight Committee pursuant to KRS

45.810 and at the next regularly scheduled meeting of the St ate Property and

Buildings Commission pursuant to KRS 56.450.

(7) Notwithstanding the provisions of KRS 56.872(3), the amount of economic

development funds issued during any biennium shall not exceed the balance of the

fund, and any funds authorized in the biennial budget shall carry forward and shall

not lapse.

(8) By November 1 of each year, the Cabinet for Economic Development shall prepare

and post an annual report to the cabinet's Web site as required in KRS 154.12 -2035,

showing the economic development funds issued during the previous fiscal year,

funds disbursed, the amounts paid back, and the balance still owing with respect to

grants or loans made by the Cabinet for Economic Development with proceeds of

economic development funds during the previous five (5) fiscal years.