KRS 39A.307: State Aid Funding for Emergencies 4860 (SAFE 4860) fund.

(1) As used in this section:

(a) "Declaration" means the Presidential Declaration of a Major Disaster,

designated FEMA-4860-DR-KY;

(b) "Kentucky disaster" means the severe storms, straight -line winds, flooding,

and landslides that occurred in Kentucky beginning on February 14, 2025, as

named in the declaration; and

(c) "SAFE 4860 fund" means the State Aid Funding for Emergencies 4860 fund

established in subsection (2) of this section.

(2) The State Aid Funding for Emergencies 4860 fund is established and shall be:

(a) Administered by the D epartment of Military Affairs, Division of Emergency

Management, in accordance with this section; and

(b) A separate fund to provide financial support for those directly impacted by the

Kentucky disaster.

(3) (a) The SAFE 4860 fund may receive state approp riations, gifts, grants, federal

funds, and any other funds, both public and private.

(b) Notwithstanding KRS 45.229, moneys in the SAFE 4860 fund shall not lapse

and shall carry forward until June 30, 2028.

(c) Any interest earnings of the SAFE 4860 fund shall become a part of the fund

and shall not lapse.

(4) The Department of Military Affair s or the Division of Emergency Management

shall not publicly advertise or solicit contributions from the general public that

could potentially impact fundraising efforts of nonprofit disaster relief agencies.

(5) (a) Eligibility to receive financial suppor t from the SAFE 4860 fund shall be

limited to a:

1. City, county, urban-county government, consolidated local government,

unified local government, or charter county government;

2. Nonprofit or public utility service provider;

3. State agency; or

4. School district;

that has disaster-related needs as a result of the Kentucky disaster.

(b) An eligible recipient may receive moneys from the SAFE 4860 fund for

expenses to provide disaster and recovery relief if the recipient is located in

the areas of the Kent ucky disaster and has disaster -related needs in response

to the Kentucky disaster.

(6) (a) Eligible expenses shall be those used to support disaster and recovery relief,

including but not limited to:

1. a. Replacement or renovation of publicly owned buildi ngs damaged

by the Kentucky disaster, but only to the extent of damage directly

caused by the Kentucky disaster; and

b. Replacement, renovation, or expansion of an essential government

facility that was used for existing services at the time of the

Kentucky disaster, including police, fire, and ambulance stations,

functioning above capacity at the time of application, but only to

the extent of damage directly caused by the Kentucky disaster;

2. Reimbursement for services, personnel, and equipment provided d uring

the response and recovery to communities impacted by the Kentucky

disaster, but only to the extent of damage directly caused by the

Kentucky disaster;

3. Funding to cities, counties, and publicly owned utilities for the costs of:

a. Replacement or re pair of publicly owned buildings and their

contents; and

b. Water and wastewater infrastructure and those systems supports;

due to the damage from the Kentucky disaster, but only to the extent of

damage directly caused by the Kentucky disaster;

4. Assistance to cities and counties for expenses related to planning efforts

for rebuilding and recovering from the Kentucky disaster, but only to the

extent of damage directly caused by the Kentucky disaster;

5. Assistance to support disaster recovery and relief n eeds of local school

districts, but only to the extent of loss or damage directly caused by the

Kentucky disaster, including but not limited to financial support:

a. For school districts that will experience a default in bond

payments; and

b. To assist sch ool districts with building and tangible property

replacement needs; and

6. Contracted employees to administer and report on the funds.

(b) The financial support shall not cover any new construction inside the one

hundred (100) year floodplain area.

(7) Each recipient of moneys from the SAFE 4860 fund, including any agency of

Kentucky state government, shall:

(a) Retain documentation of a timely application for any applicable

reimbursement, including but not limited to federal emergency disaster grant

assistance, other financial disaster assistance, and insurance proceeds; and

(b) Adhere to the terms of the SAFE 4860 fund regarding reimbursement to the

Commonwealth if funds from other sources are subsequently received after

the receipt of financial assistance from the Commonwealth.

(8) (a) Moneys in the SAFE 4860 fund may be used for the advancement of moneys

to cities, counties, school districts, and nonprofit or public utility service

providers experiencing strained fiscal liquidity while awaiting reimbur sement

from federal emergency management assistance or insurance claims and shall

not be used for capital improvements.

(b) Reimbursement of the advancement under paragraph (a) of this subsection

shall:

1. Be determined by the:

a. State-local finance offic er within the Department for Local

Government for cities and counties, and nonprofit or public

utilities; and

b. Department of Education for school districts; and

2. Include a quarterly accounting of the advancement released and the

outstanding balance through June 30, 2028.

(9) (a) If a recipient of moneys from the SAFE 4860 fund subsequently receives

moneys from any other source, the recipient shall reimburse the

Commonwealth for the amount of the moneys received from the SAFE 4860

fund.

(b) Before July 1 , 2028, all moneys reimbursed to the Commonwealth under

paragraph (a) of this subsection shall be deposited in the SAFE 4860 fund

within thirty (30) days.

(c) After June 30, 2028, all moneys reimbursed to the Commonwealth under

paragraph (a) of this subsec tion shall be deposited in the budget reserve trust

fund account established in KRS 48.705 within thirty (30) days.

(10) The Division of Emergency Management shall promulgate administrative

regulations in accordance with KRS Chapter 13A to carry out this section.

(11) The following reports shall be submitted to the Senate Standing Committee on

Appropriations and Revenue and the House Standing Committee on Appropriations

and Revenue or the Interim Joint Committee on Appropriations and Revenue by the

fifteenth day of each month, beginning May 15, 2025, and ending July 15, 2029:

(a) A report from the Office of State Budget Director that includes:

1. The name of each recipient of moneys from the SAFE 4860 fund;

2. The dollar amount of moneys issued and the dates of issuance;

3. The dollar amount of any proceeds received from the Federal

Emergency Management Agency, an insurance company, or any other

means of reimbursement for damages;

4. A description of how the moneys were used; and

5. A list of all requests:

a. Submitted, including the amount requested;

b. Denied, including a description of the reason for the denial; and

c. Where the amount awarded was greater than or less than the

amount requested, including a description of the reason for the

increase or decrease; and

(b) A report from the Department of Education that includes:

1. The name of each school district receiving moneys from the SAFE 4860

fund;

2. The dollar amount of moneys issued and the dates of issuance;

3. The dollar amount of any proceeds received from the Federal

Emergency Management Agency, an insurance company, or any other

means of reimbursement for damages;

4. A description of how the moneys were used; and

5. A list of all requests:

a. Submitted, including the amount requested;

b. Denied, including a description of the reason for the denial; and

c. Where the amount awarded was greater than or less than the

amount requested, including a des cription of the reason for the

increase or decrease.