KRS 154.21-017: Kentucky Product Development Initiative of 2024 -- Establishment --

Grant criteria -- County population ranking and local match for eligible

projects -- Limitations -- Maximum amount -- Pooling of funds -- Report.

(1) The Kentucky Product Deve lopment Initiative of 2024 is hereby established under

the cabinet. The cabinet shall partner with the Kentucky Association for Economic

Development to administer the program. The cabinet's administration of the

program includes:

(a) Creating and making av ailable a standardized grant application and regional

grant application;

(b) Adopting a standardized scoring system pursuant to KRS 154.21-040;

(c) Reviewing the applications and proposals submitted by the proposed grant

recipients;

(d) Verifying the eligibility of the proposed grant recipients;

(e) Verifying that the proposed grant recipient seeks grant money for an eligible

project prior to prioritizing all eligible projects;

(f) Determining the county's population ranking under subsection (3) of this

section;

(g) Awarding grants to selected eligible grant recipients in multiple rounds of

funding; and

(h) Compiling and submitting the reports required by subsections (3) and (5) of

this section.

(2) Upon receipt of eligible grant recipients and eligible proj ect recommendations and

prioritization from the Kentucky Association for Economic Development and the

third-party independent site selection consultant, the cabinet shall verify and

process the eligible grant recipients and eligible project recommendations with the

intent to approve and award grants under the economic development fund program

pursuant to KRS 154.12-100 and based on the following criteria:

(a) Consideration of whether the eligible grant recipient had received a grant

award from the Kentucky Product Development Initiative of 2022 under KRS

154.21-020; and

(b) The matching funds for the selected grant recipient's contribution to its

eligible proje ct based on the county population ranking determined under

subsection (3) of this section.

(3) (a) On or before June 1, 2024, and no later than June 1 every two (2) years

thereafter, the cabinet shall determine a county population ranking for each

county by adding the following two (2) factors:

1. The population density ranking; and

2. The ten (10) year percentage change in population ranking.

(b) The required local match for each county shall be as follows:

1. Eligible projects in counties where the county population ranking is

greater than or equal to one hundred ninety -three (193) shall provide a

minimum amount of local matching funds equal to ten percent (10%) of

the project cost;

2. Eligible projects in counties where the county population ranking is le ss

than one hundred ninety -three (193) but greater than or equal to one

hundred forty -five (145) shall provide a minimum amount of local

matching funds equal to twelve and one -half percent (12.5%) of the

project cost;

3. Eligible projects in counties where the county population ranking is less

than one hundred forty -five (145) but greater than or equal to ninety -

seven (97) shall provide a minimum amount of local matching funds

equal to fifteen percent (15%) of the project cost;

4. Eligible projects in counties where the county population ranking is less

than ninety-seven (97) but greater than or equal to forty -nine (49) shall

provide a minimum amount of local matching funds equal to seventeen

and one-half percent (17.5%) of the project cost;

5. Eligible projects in counties where the county population ranking is less

than forty-nine (49) shall provide a minimum amount of local matching

funds equal to twenty percent (20%) of the project cost; and

6. For eligible projects requesting due diligence as an eligible use, the due

diligence must be completed prior to acquisition of the site. If the due

diligence result leads to the decision to not purchase the site, then the

cabinet may expend up to two hundred thousand dollars ($200,000) with

no local matching funds required. If the amount to be reimbursed by the

cabinet exceeds two hundred thousand dollars ($200,000), the cabinet

shall report to the Interim Joint Committee on Appropriations and

Revenue, or the Senate Standing Committee on Appropriations and

Revenue an d the House Standing Committee on Appropriations and

Revenue, within five (5) days of the disbursement. The report shall

include the name and county location of the eligible project approved,

the amount of the grant awarded, the amount of the funding disbu rsed

for due diligence and the extenuating circumstances related to the due

diligence study.

(c) On or before July 1, 2024, and no later than July 1 every two (2) years

thereafter, the cabinet shall report to the Legislative Research Commission

and the Int erim Joint Committee on Appropriations and Revenue the

following information for each county:

1. The county name;

2. The population density ranking for that county;

3. The ten (10) year percentage change in population ranking for that

county; and

4. The county population ranking for that county.

(d) When awarding grants in this initiative, the cabinet shall not award grants to:

1. An eligible grant recipient or a group of eligible grant recipients in

excess of the amount allocated to the county in which the county is

located, except when pooled pursuant to subsection (4) of this section;

or

2. An eligible grant recipient that received a grant award from the

Kentucky Product Development Initiative of 2022 prior to all other

eligible grant recipients receiving a grant award from the Kentucky

Product Development Initiative of 2024 if the eligible project scores are

equal to or above the score of an eligible project from an eligible grant

recipient who received a grant award from the Kentucky Product

Development Initiative of 2022 under KRS 154.21 -040, and in the case

where the scores are equal, discretion by the Kentucky Association for

Economic Development and the cabinet shall be used.

(e) The maximum funding available for an approved development project is two

million five hundred thousand dollars ($2,500,000) in a heritage county and

two million dollars ($2,000,000) in any other county, except as permitted by

subsection (4) of this section.

(f) If there are funds available after the first round of grant awards of the

Kentucky Product Development Initiative of 2024, the cabinet shall initiate

additional rounds of grant awards.

(4) (a) For selected eligible grant recipients that are involved in a regional project,

the cabinet may pool the potential allocation of funds available for each

county represented by the eligible grant recipients for the grant amount

awarded.

(b) A county that is an eligible grant recipient involved in a regional project shall

provide that county's local matching funds based on the county population

ranking determined under subsection (3) of this section and each county's

local matching funds may be pooled as described in paragraph (a) of this

subsection.

(5) Beginning no later than November 1, 2024, and annually thereafter until the

authorized appropriation is spent or returned, the cabinet shall compile and submit a

report for each application approved by the Kentucky Economic Development

Finance Authority for the Kentucky Product Development Initiative of 2024. The

report shall be electronically delivered to the Legislative Research Commission and

the Interim Joint Committee on Appropriations and Revenue and contain the

following information:

(a) The name of the applicant, a description of the eligible project, and the

location of each proposed project for which an application was approved;

(b) The date the application was approved by the Kentucky Economic

Development Finance Authority;

(c) The amount of funding authorized for each project approved;

(d) The total amount of funding disbursed for each project approved; and

(e) The round of funding for which each project received approval.

(6) The Kentucky Product Development Initiative of 2024 shall begin July 1, 2024.