KRS 154.14-060: GRANT Program fund -- Administration -- Use of funds -- Transfer.

(1) There is hereby established in the State Treasury a trust and agency account to be

known as the GRANT Program fund. The fund shall consist of moneys received

from state appropriations, gifts, grants, and federal funds.

(2) The fund shall be administered and maintained by the cabinet.

(3) (a) Amounts deposited in the fund shall be used for awarding:

1. Matching funds to successful applicants of the GRANT Program upon

notification of award of the federal grant requiring matching funds.

Except as provided in paragraph (b) of this subsection, up to twenty

percent (20%) of the amounts deposited in the fund shall be used for

match awards for nonprofit charitable organizations orga nized under 26

U.S.C. sec. 501(c)(3); and

2. Matching funds to successful applicants of the GRANT Program upon

notification of award of the federal grant requiring matching funds.

Except as provided in paragraph (b) of this subsection, up to eighty

percent (80%) of the amounts deposited in the fund shall be used for

match awards to county or city governing bodies.

(b) The cabinet may transfer up to ten percent (10%) of funds remaining in one

(1) of the categories listed in paragraph (a)1. or 2. of this subs ection to the

other category in that paragraph if:

1. The upper limit established is reached within a category;

2. There are eligible projects to be funded from the category that has

reached the limit; and

3. Funds remain available in the other category.

If a transfer is made, the cabinet shall provide notice in writing to the Interim

Joint Committee on Appropriations and Revenue if the transfer is made

during an interim between legislative sessions, or the Senate Standing

Committee on Appropriations and Revenue and the House Standing

Committee on Appropriations and Revenue if the transfer is made during a

legislative session.

(4) Notwithstanding KRS 45.229, moneys in the account not expended at the close of a

fiscal year shall not lapse but shall be carried forward into the next fiscal year.

(5) Any interest earnings of the fund shall become a part of the fund and shal l not

lapse.

(6) Any match funds awarded under subsection (3) of this section shall be canceled

upon denial of the federal award.