KRS 154.20-226: Application, approval, and review process.

(1) The application, approval, and review process under KRS 154.20 -220 to 154.20 -

229 shall be as follows.

(a) An eligible company with a proposed data center project may submit an

application to the authority detailing the proposed data center project;

(b) Upon review of the application and any additional information submitted, the

authority may, by resolution, give preliminary approval to an eligible

company and authorize the negotiation and execution of a memorandum of

agreement;

(c) The memorandum of agreement shall establish the estimated eligible costs for

the qualified data center project;

(d) Upon preliminary approval:

1. The preliminarily approved company may:

a. Undertake the project in accordance with the memorandum of

agreement;

b. Begin to make the capital investment; and

c. Begin to purchase or lease data center equipment exempt from

sales and use tax as provided in KRS 139.499;

2. The authority shall:

a. Notify the department of the preliminary approval, provide the

department with the information contained in the memorandum of

agreement, and authorize the department to issue a certificate of

exemption to the preliminarily approved company under KRS

139.499; and

b. Post the preliminarily approved company's name, the location of

the qualified data center project, and the amount of investment

costs on the cabinet's website; and

3. The preliminarily approved company shall submit any documentation

required by the authority upon request of the authority;

(e) If, on or before the fifth anniversary of the memorandum of agreement, the

preliminarily approved company fails to meet the minimum capital

investment as established in the memorandum of agreement:

1. The authority shall notify the department;

2. The department shall revoke the certificate of exemption; and

3. The preliminarily approved company shall immediately pay the tax that

was not paid as a result of the sales and use tax exemption upon receipt

of the no tice of assessment issued by the department under KRS

139.499; and

(f) 1. To obtain final approval, a preliminarily approved company shall submit

documentation required by the authority to confirm that the

requirements established in the memorandum of agre ement have been

met.

2. Upon review and confirmation of the documentation, the authority may,

by resolution, give final approval to the preliminarily approved

company.

3. Upon final approval, the approved company shall be finally approved

for the exemption provided by KRS 139.499 for the term of the

memorandum of agreement.

(2) (a) The authority may establish procedures and standards for the review and

approval of eligible companies and their data center projects through the

promulgation of administrative r egulations in accordance with KRS Chapter

13A.

(b) Standards to be used by the authority in reviewing and approving an eligible

company and its data center project shall include but not be limited to:

1. The creditworthiness of the eligible company;

2. The proposed capital investment to be made; and

3. The likelihood of the economic success of the proposed data center

project.

(3) The application shall include but not be limited to:

(a) The name of the applicant for the proposed data center project;

(b) A description of the proposed data center project, including its location, the

total proposed capital investment in the proposed project, and total proposed

eligible costs; and

(c) Any other information the authority may require.