KRS 154.26-080: Standards for determination of eligibility -- Review of application

-- Request for emergency declaration -- Authorizing resolution --

Application for and approval of supplemental projects -- Meetings.

(1) The authority shall establish standards for the determination and approval of

eligible companies and their projects by the promulgation of administrative

regulations in accordance with KRS Chapter 13A.

(2) The criteria for approval of eligible companies and economic revitalization

projects or supplemental projects shall include but not be limited to the:

(a) Need for the project;

(b) New capital investment in the project or supplemental project that will

result in financial stability for the manufacturing or coal mining and

processing facility; and

(c) Retention or expansion of the greatest number of employees at the

manufacturing or coal mining and processing facility.

(3) With respect to each eligible company making an application to the authority

for inducements, and with respect to the project described in the application,

the authority shall make inquiries and request materials of the applicant,

including but not limited to written evidence that except for a substantial

investment in the project, assisted by the inducements authorized by KRS

154.26-015 to 154.26-100, the eligible company will:

(a) Close its manufacturing or coal mining and processing facility; and

(b) Permanently lay off its employees and cease operations; or

(c) Not resume operations of a closed facility as permitted by KRS

154.26-010(9).

(4) The eligible company shall, in a manner acceptable to the authority, detail the

condition of the facility, including but not limited to financial, efficiency, and

productivity matters; explain in detail why the company intends to close the

facility or not resume operations of the facility as permitted by KRS

154.26-010(9); and set out alternatives that are available to the company.

(5) As a part of its application, an eligible company as described in KRS

154.26-010(10)(b) may request an emergency declaration based upon the

urgency of the request and its impact on the local or regional economy.

(6) A request for an emergency declaration shall be reviewed by the secretary of

the Cabinet for Economic Development, the secretary of the Education and

Labor Cabinet, and the secretary of the Finance and Administration Cabinet

and their findings in connection with the emergency declaration shall be

delivered to the authority.

(7) If the emergency declaration is granted in accordance with subsection (6) of

this section, the eligible company shall not be subject to the requirements

contained in subsection (8), (9), or (11) of this section.

(8) In accordance with, and after the adoption of a resolution under subsection

(10) of this section, the authority shall engage the services of a competent

consulting firm or technical resource to analyze the data made available by the

company, and to collect and analyze additional information necessary to

determine that, in the independent judgment of the consultant, the company

will close the facility or not resume operations of the facility as permitted by

KRS 154.26-010(9) absent a substantial investment in the project, assisted by

the inducements authorized by KRS 154.26-015 to 154.26-100. The company

shall pay the cost of this evaluation.

(9) The company shall cooperate with the consultant and provide all of the data

which could reasonably be required by the consultant to make a fair

assessment of the company's intentions to close the facility or not resume

operations of the facility as permitted by KRS 154.26-010(9).

(10) After a review of relevant materials and completion of inquiries, the authority

may, by resolution, give its preliminary approval by designating an eligible

company as a preliminarily-approved company and authorizing the undertaking

of the economic revitalization project.

(11) The authority shall review the report of the consultant and other information

which has been made available to it in order to assist the authority in

determining whether the company intends to close the facility for valid reasons

or whether it intends or is able to resume operations of the facility in

accordance with the requirements of KRS 154.26-010(10)(b) if inducements

are granted. The authority shall determine the potential of the proposed

revitalization project to make the facility stable, productive, and competitive in

its market.

(12) After the review of the consultant's report or if an emergency declaration has

been issued in accordance with subsection (6) of this section, the authority

shall hold a public hearing to solicit public comment from any person, group, or

interested party regarding the proposed project.

(13) After the public hearing, the authority, by resolution, may:

(a) Declare the jobs then existing at the facility to be lost or the company

unable to resume operations as permitted by KRS 154.26-010(9);

(b) Give its final approval to the eligible company's application for a project;

and

(c) Grant to the eligible company the status of an approved company.

The decision reached by the authority shall be final and no appeal shall be

granted.

(14)(a) During the initial term of an agreement, or within sixty (60) months after

the expiration of the term, an eligible company may apply for, and the

authority may approve, a supplemental project when the applicant:

1. Has expended approved costs of at least fifty million dollars

($50,000,000) on an approved economic revitalization project;

2. Employs a minimum of one hundred (100) employees at the site of

the economic revitalization project;

3. Agrees to incur at least five million dollars ($5,000,000) in additional

eligible costs for improvements to a blast furnace that:

a. Is located at the economic revitalization project;

b. Has burned at least one million (1,000,000) tons of Kentucky

coal during the initial term of the agreement; and

c. Was idled due to unfairly traded imports of carbon steel, with

resulting layoffs of more than five hundred fifty (550)

employees; and

4. Is at risk of closure and carries a significant net loss carry forward

for the last three (3) tax years as certified by the approved company.

(b) The authority may approve a supplemental project by resolution,

authorizing the execution of a supplemental project agreement.

(15) All meetings of the authority shall be held in accordance with KRS 61.805 to

61.850. The authority may, pursuant to KRS 61.815, hold closed sessions of its

meetings to discuss matters exempt from the open meetings law and

pertaining to an eligible company.