KRS 154.24-010: Definitions for KRS 154.24-010 to 154.24-150.

The following words and terms, unless the context clearly indicates a different

meaning, shall have the following respective meanings in KRS 154.24-010 to

154.24-150:

(1) "Affiliate" has the same meaning as in KRS 154.22-010;

(2) "Agreement" means the service and technology agreement made pursuant to

KRS 154.24-120, between the authority and an approved company with

respect to an economic development project;

(3) "Approved company" means any eligible company seeking to locate an

economic development project from outside the Commonwealth into the

Commonwealth, or undertaking an economic development project in the

Commonwealth for which it is approved pursuant to KRS 154.24-100;

(4) "Approved costs" means fifty percent (50%) of the total of the start-up costs up

to a maximum of ten thousand dollars ($10,000) per new full-time job created

and to be held by a Kentucky resident subject to the personal income tax of the

Commonwealth, plus fifty percent (50%) of the annual rent for each elapsed

year of the service and technology agreement;

(5) "Assessment" means the "service and technology job creation assessment

fee" authorized by KRS 154.24-110;

(6) "Authority" means the Kentucky Economic Development Finance Authority, as

created in KRS 154.20-010;

(7) "Average hourly wage" means the wage and employment data published by

the Department of Workforce Development within the Education and Labor

Cabinet collectively translated into wages per hour based on a two thousand

eighty (2,080) hour work year for the following sectors:

(a) Manufacturing;

(b) Transportation, communications, and public utilities;

(c) Wholesale and retail trade;

(d) Finance, insurance, and real estate; and

(e) Services;

(8) "Commonwealth" means the Commonwealth of Kentucky;

(9) "Economic development project" or "project" means a new or expanded

service or technology activity conducted at a new or expanded site by:

(a) An approved company; or

(b) An approved company and its affiliate or affiliates;

(10) "Eligible company" means any corporation, limited liability company,

partnership, limited partnership, sole proprietorship, business trust, or any other

entity engaged in service or technology and meeting the standards

promulgated by the authority in accordance with KRS Chapter 13A;

(11) "Employee benefits" means nonmandated costs paid by an approved company

for its full-time employees for health insurance, life insurance, dental insurance,

vision insurance, defined benefits, 401(k) or similar plans;

(12) "Final approval" means the action taken by the authority authorizing the eligible

company to receive inducements under this subchapter;

(13) "Full-time employee" means a person employed by an approved company for a

minimum of thirty-five (35) hours per week and subject to the state tax imposed

by KRS 141.020;

(14) "In lieu of credits" means a local government appropriation to the extent

permitted by law, or other form of local government grant or service benefit,

directly related to the economic development project and in an amount equal to

one percent (1%) of employees' gross wages, exclusive of any noncash

benefits provided to an employee, or the provision by a local government of an

in-kind contribution directly related to the economic development project and in

an amount equal to one half (1/2) of the rent for the duration of the agreement;

(15) "Inducements" means the tax credits allowed and the assessment authorized

by KRS 154.24-110, which are intended to induce companies engaged in

service and technology industries to locate or expand in the Commonwealth;

(16) "Person" means an individual, sole proprietorship, partnership, limited

partnership, joint venture, trust, unincorporated organization, association,

corporation, limited liability company, institution, entity or government, whether

federal, state, county, city, or otherwise, including without limitation any

instrumentality, division, political subdivision, district, court, agency, or

department thereof;

(17) "Preliminary approval" means the action taken by the authority conditioning

final approval by the authority upon satisfaction by the eligible company of the

requirements under this subchapter;

(18) "Rent" means:

(a) The actual annual rent or leasing fee paid by an approved company to a

bona fide entity negotiated at arms length for the use of a building by the

approved company to conduct the approved activity for which the

inducement has been granted; or

(b) The fair rental value on an annual basis in a building owned by the

approved company of the space used by the approved company to

conduct the approved activity for which the inducement has been granted

as determined by the authority using criteria which is customary in the

real estate industry for the type of building being used. The fair rental

value shall include an analysis of the cost of amortizing the cost of land

and building over the period of time customary in the real estate industry

for the type of building and for the land being utilized;

(c) Rent shall include the customary cost of occupancy, including but not

limited to property taxes, heating and air-conditioning, electricity, water,

sewer, and insurance;

(19)(a) "Service or technology" means either:

1. Any activity involving the performance of work, except work

classified by the divisions, including successor divisions, of

agriculture, forestry and fishing, mining, utilities, construction,

manufacturing, wholesale trade, retail trade, real estate rental and

leasing, educational services, accommodation and food services,

and public administration in accordance with the "North American

Industry Classification System," as revised by the United States

Office of Management and Budget from time to time, or any

successor publication; or

2. Regional or headquarters operations of an entity engaged in an

activity listed in subparagraph 1. of this paragraph.

(b) Notwithstanding paragraph (a) of this subsection, "service or technology"

shall not include any activity involving the performance of work by an

individual who is providing direct service to the public pursuant to a

license issued by the state or an association that licenses in lieu of the

state unless seventy-five percent (75%) of the services provided by the

eligible company from the project are provided to persons located outside

the Commonwealth during the period in which it receives the inducements

authorized in KRS 154.24-110; and

(20) "Start-up costs" means the acquisition cost associated with the project related

to the furnishing and equipping the building for ordinary business functions,

including computers, furnishings, office equipment, the relocation of

out-of-state equipment, and nonrecurring costs of fixed telecommunication

equipment as verified and approved by the authority in accordance with KRS

154.24-130.