{"data":{"id":"us-ky/krs-39a.303","jurisdiction":"us-ky","citation":"KRS 39A.303","heading":"East Kentucky State Aid Funding for Emergencies (EKSAFE) fund.","body":"(1) The East Kentucky State Aid Funding for Emergencies (EKSAFE) fund is\nestablished and shall be:\n(a) Administered by the Department of Military Affairs, Division of Emergency\nManagement, in accordance with this section;\n(b) A separate fund to provide financial assistance for those located in the areas\nnamed in the Presidential Declaration of a Major Disaster, designated FEMA -\n4663-DR-KY, and impacted by the July 2022 storms and floodi ng that\noccurred in the eastern Kentucky region; and\n(c) Used to provide financial support to those located in the areas named in the\nPresidential Declaration of a Major Disaster, designated FEMA -4663-DR-\nKY, in the eastern Kentucky region to recover from t he devastation caused by\nthe storms and flooding.\n(2) The Department of Military Affairs or the Division of Emergency Management\nshall not publicly advertise or solicit contributions from the general public that\ncould potentially impact fundraising efforts of not-for-profit disaster relief agencies.\n(3) The EKSAFE fund may receive state appropriations, gifts, grants, federal funds,\nand any other funds, both public and private.\n(4) Moneys in the EKSAFE fund as of June 30, 2023, through June 30, 2026, shall n ot\nlapse and shall carry forward until June 30, 2026.\n(5) Any interest earnings of the EKSAFE fund shall become a part of the EKSAFE\nfund and shall not lapse.\n(6) (a) Eligibility to receive financial support from the EKSAFE fund shall be limited\nto a:\n1. City, county, urban-county government, consolidated local government,\nunified local government, or charter county government;\n2. Nonprofit or public utility service provider;\n3. State agency; or\n4. School district;\nthat has disaster-related needs as a res ult of the devastation experienced from\nthe July 2022 storms and flooding.\n(b) An eligible recipient may receive moneys for expenses to provide disaster and\nrecovery relief if the recipient:\n1. Is located in the areas named in the Presidential Declaration of a Major\nDisaster, designated FEMA -4663-DR-KY, relating to the storms and\nflooding that occurred in July 2022; and\n2. Has disaster -related needs in response to the storms and flooding that\noccurred in July 2022.\n(c) The financial support shall not cover any new construction inside the one\nhundred (100) year floodplain area.\n(d) 1. Eligible expenses shall be those used to support disaster and recovery\nrelief, including but not limited to:\na. i. Replacement or renovation of publicly owned buildings\ndamaged by the storms and flooding, but only to the extent\nof damage directly caused by the storms and flooding; and\nii. Replacement, renovation, or expansion of an essential\ngovernment facility that was used for existing services at the\ntime of the disaster, incl uding police, fire, and ambulance\nstations, functioning above capacity at the time of\napplication, but only to the extent of damage directly caused\nby the storms and flooding;\nb. Reimbursement for services, personnel, and equipment provided\nduring the response and recovery to communities impacted by the\nstorms and flooding, but only to the extent of damage directly\ncaused by the storms and flooding;\nc. Funding to cities, counties, and publicly owned utilities for the\ncosts of replacement or repair of public ly owned buildings and\ntheir contents due to the damage from the storms and flooding, but\nonly to the extent of damage directly caused by the storms and\nflooding;\nd. Assistance to cities and counties for expenses related to planning\nefforts for rebuilding and recovering from the damage, but only to\nthe extent of damage directly caused by the storms and flooding;\ne. Assistance to support disaster recovery and relief needs of local\nschool districts, but only to the extent of loss or damage directly\ncaused by the storms and flooding, including but not limited to:\ni. Financial support for school districts that will experience a\ndefault in bond payments; and\nii. Financial support to assist school districts with building and\ntangible property replacement needs; and\nf. Contracted employees to administer and report on the funds.\n2. a. Moneys used for the eligible expenses described in subparagraph\n1.a.i. or ii. of this paragraph shall be:\ni. Issued in the form of a loan; and\nii. Used to replace, renovate, or expand an essential government\nfacility that was used for existing services at the time of the\ndisaster at up to one hundred twenty percent (120%) of\ncapacity at the time of application for proceeds.\nb. Any loan issued under s ubdivision a. of this subparagraph shall\ncontain the following terms:\ni. An interest rate of zero percent (0%);\nii. A time for repayment of no longer than twenty (20) years;\nand\niii. A repayment structure of quarterly payments due on the\nthirtieth day of M arch, June, September, and December of\neach year until the loan is repaid.\nc. The recipient of any loan issued under subdivision a. of this\nsubparagraph shall report to the Department of Military Affairs,\nDivision of Emergency Management, on a quarterly basis:\ni. The amount of any insurance proceeds received related to the\nreplacement, renovation, or expansion of an essential\ngovernment facility for which the loan was granted; and\nii. The name and address of the insurance provider.\nd. No later than November 1, 2023, and each November 1 thereafter,\nthe Department of Military Affairs, Division of Emergency\nManagement, shall compile the information reported by each\nrecipient under subdivision c. of this subparagraph and report the\ncompiled information to the In terim Joint Committee on\nAppropriations and Revenue.\n(7) Each recipient of moneys from the EKSAFE fund, including any agency of\nKentucky state government, shall:\n(a) Retain documentation of a timely application for any applicable\nreimbursement, including b ut not limited to federal emergency disaster grant\nassistance, other financial disaster assistance, and insurance proceeds; and\n(b) Adhere to the terms of the EKSAFE fund regarding reimbursement to the\nCommonwealth if funds from other sources are subsequen tly received after\nthe receipt of financial assistance from the Commonwealth.\n(8) (a) Moneys in the EKSAFE fund may be used for the advancement of moneys to\ncities, counties, school districts, and nonprofit or public utility service\nproviders experiencing strained fiscal liquidity while awaiting reimbursement\nfrom federal emergency management assistance or insurance claims and shall\nnot be used for capital improvements.\n(b) Reimbursement of the advancement under paragraph (a) of this subsection\nshall:\n1. Be determined by the:\na. State-local finance officer within the Department for Local\nGovernment for cities and counties, and nonprofit or public\nutilities; and\nb. Department of Education for school districts; and\n2. Include a quarterly accounting of the adva ncement released and the\noutstanding balance through June 30, 2026.\n(9) (a) 1. If a recipient of moneys from the EKSAFE fund subsequently receives\nmoneys from any other source, the recipient shall reimburse the\nCommonwealth for the amount of the moneys rec eived from the\nEKSAFE fund.\n2. Before July 1, 2026, all moneys reimbursed to the Commonwealth under\nsubparagraph 1. of this paragraph shall be deposited in the EKSAFE\nfund within thirty (30) days, and shall be continuously appropriated.\n3. After June 30, 2 026, all moneys reimbursed to the Commonwealth\nunder subparagraph 1. of this paragraph shall be deposited into the\nbudget reserve trust fund account established in KRS 48.705 within\nthirty (30) days.\n(b) 1. If a recipient receives moneys in the form of a l oan under subsection\n(6)(d)2. of this section, the recipient shall reimburse the Commonwealth\nfor the amount of the moneys received from the EKSAFE fund\naccording to the repayment structure under subsection (6)(d)2.b.iii. of\nthis section.\n2. Before July 1, 2026, all moneys reimbursed to the Commonwealth under\nsubparagraph 1. of this paragraph shall be deposited in the EKSAFE\nfund within thirty (30) days, and shall be continuously appropriated.\n3. After June 30, 2026, all moneys reimbursed to t he Commonwealth\nunder subparagraph 1. of this paragraph shall be deposited into the\nbudget reserve trust fund account established in KRS 48.705 within\nthirty (30) days.\n(10) The Division of Emergency Management shall promulgate administrative\nregulations to carry out this section.\n(11) The following reports shall be submitted to the Senate Standing Committee on\nAppropriations and Revenue and the House Standing Committee on Appropriations\nand Revenue or the Interim Joint Committee on Appropriations and Reven ue by the\ntenth day of each month, beginning September 10, 2022, and ending July 10, 2026:\n(a) A report from the Office of State Budget Director that includes:\n1. The name of each recipient of moneys from the EKSAFE fund;\n2. The dollar amount of moneys issued and the dates of issuance;\n3. A description of how the moneys were used; and\n4. A list of all requests:\na. Submitted, including the amount requested;\nb. Denied, including a description of the reason for the denial; and\nc. Where the amount awarded was g reater than or less than the\namount requested, including a description of the reason for the\nincrease or decrease; and\n(b) A report from the Department of Education that includes:\n1. The name of each school district receiving moneys from the EKSAFE\nfund;\n2. The dollar amount of moneys issued and the dates of issuance;\n3. A description of how the moneys were used; and\n4. A list of all requests:\na. Submitted, including the amount requested;\nb. Denied, including a description of the reason for the denial; and\nc. Where the amount awarded was greater than or less than the\namount requested, including a description of the reason for the\nincrease or decrease.","path":["KRS Chapter 39A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53478","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:58Z","sha256":"0b0f147277e8c48884dfd92adad72efe0546cb862555b260b4d5a0d3e58f6c60","source_id":"us-ky","stale":false,"prev":"us-ky/krs-39a.300","next":"us-ky/krs-39a.305"},"notice":"GroundRules: Original legal text. Not legal advice."}