KRS 154.34-070: Application and review process -- Memorandum of agreement --

Standards and criteria for approval -- Preliminary and final approval of

company by authority -- Reinvestment agreement -- Notice to department --

Department to monitor use of incentives.

(1) The application and approval process under this subchapter shall be as follows:

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

application to the authority. The application shall include the information

required by subsection (4) of this section;

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

authority may, by resolution, give preliminary approval to a reinvestment

project and authorize the negotiation and execution of a memorandum of

agreement. The memorandum of agreement shall establish the minimum job

retention requirements and maximum total approved cost for the reinvestment

project, shall only allow the recovery of costs incurred after preliminary

approval, and may include any o ther terms as agreed to by the parties to the

agreement. Upon preliminary approval, the preliminarily approved company

may undertake the project in accordance with the memorandum of agreement;

(c) The preliminarily approved company shall submit any documentation required

by the authority upon request of the authority;

(d) The preliminarily approved company shall have up to three (3) years from the

date of preliminary approval to complete the reinvestment project and obtain

final approval. Upon the earlier o f completion of the project or the passage of

three (3) years from the date of preliminary approval, the preliminarily

approved company shall submit documentation required by the authority, and

the authority shall confirm that the minimum investment and jo b retention

requirements established by the memorandum of agreement have been met.

Upon review and confirmation of the documentation, the authority may, by

resolution, give final approval to the preliminarily approved company and

authorize the execution of a reinvestment agreement between the authority

and the approved company pursuant to KRS 154.34 -080. As part of the

reinvestment agreement, the approved costs shall be finally determined, not to

exceed the maximum approved costs as determined at preliminar y approval,

and the approved company shall be eligible to receive incentives in

accordance with the provisions of the reinvestment agreement;

(e) The authority shall monitor the reinvestment agreement at least annually, and

the approved company shall submi t all documentation necessary for the

authority to monitor the agreement. The authority shall, based on the

documentation provided, confirm that the approved company is in continued

compliance with the provisions of the reinvestment agreement and, therefor e,

eligible for incentives; and

(f) Upon final approval, the authority shall notify the department that an

approved company is eligible for incentives and shall provide the department

with the information necessary to monitor the use of incentives by the

approved company. If, at any time during the term of the reinvestment

agreement, an approved company becomes ineligible for incentives, the

authority shall notify the department, and the department shall discontinue the

availability of incentives for the approved company.

(2) The authority may establish standards for preliminary and final approval of eligible

companies and their projects through the promulgation of administrative regulations

in accordance with the provisions of KRS Chapter 13A.

(3) The crite ria for preliminary and final approval of eligible companies and

reinvestment projects shall include but not be limited to the need for the project, the

eligible equipment and other costs to be expended by the eligible company, and the

number of jobs created or preserved as a result of the project.

(4) The application shall include:

(a) The name of the applicant and identification of any affiliates who will have

some relation to the reinvestment project;

(b) A description of the condition of the existing facility, including but not limited

to the status of the physical plant or office space, the financial situation of the

company, and the efficiency and productivity of the facility;

(c) A description of the proposed reinvestment project, including anticipate d

sources of funding, the total anticipated equipment and related costs and skills

upgrade training costs, the impact of the proposed reinvestment project on

full-time employment at the facility, and an explanation of why reinvestment

in the facility and its full-time employees is necessary;

(d) The number of existing full-time jobs at the site of the reinvestment project on

the date of the application and a description and breakdown of the relevant

affiliated employers;

(e) A timeline for the proposed reinvestment project;

(f) A description of the other alternatives that are available to the eligible

company, if incentives are not provided;

(g) The amount of incentives sought, and an explanation of why the requested

incentives are needed;

(h) A certification from the company that the reinvestment project would not be

economically feasible for the company, but for the incentives available under

this subchapter;

(i) Payment of any applicable application fees required by the authority; and

(j) Any additional information relating to the proposed reinvestment project that

the authority may require.

(5) The authority may request any materials and make any inquiries concerning an

application that the authority deems necessary.