SB 162 — AN ACT relating to state government.

(5) There is established within the Public Protection Cabinet the Kentucky Boxing and Wrestling Commission, which shall be headed by an executive director appointed Page 25 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN by the secretary with the approval of the Governor as required by KRS 12.050.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (d) Military adjudicatory proceedings conducted in accordance with KRS Chapter 35;

(g) Informal hearings which are part of a multilevel hearing process that affords Page 26 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN an administrative hearing at some point in the hearing process if the procedures for informal hearings are approved and promulgated in accordance with subsections (4) and (5) of this section;

Certificate-of-need hearings and licensure conducted under authority of KRS Chapter 216B Page 27 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN b.

Kentucky State Police Trial Board disciplinary hearings conducted under authority of KRS Chapter 16 CHAPTER 185 17 2.

Prison grievance committee hearings conducted under authority of KRS Chapters 196 and 197 Page 28 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 3.

Utility hearings conducted under authority of KRS Chapters 74, 278, and 279 Page 29 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (e) Labor Cabinet 1.

Student suspension and expulsion hearings conducted under authority of KRS Chapter 164 Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 2.

University presidents and faculty removal hearings conducted under authority of KRS Chapter 164 3.

1232 and 34 C.F.R.

99 Page 30 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 5.

The court shall not overturn a decision of the Attorney General Page 31 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN unless the decision was arbitrary or capricious or contrary to law.

PageCHAPTER 32185 of19 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (2) If the compensation is determined by award of the Kentucky Board of Claims[Kentucky Claims Commission] or judgment of a court, as provided in KRS 39A.110, 39A.120, and 39A.130, a certified copy of the award or judgment shall be filed with the Finance and Administration Cabinet which shall draw a warrant on the State Treasurer for the amount of the award or judgment.

The executive Page 33 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN director shall:

(d) Prepare annual reports on the office's and board'sboards' activities;

At least one (1) member shall be an attorney licensed to practice in the Commonwealth, at least one (1) member shall have a taxation Page 34 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN background, and at least one (1) member shall be:

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) A victim as defined in KRS 421.500(1);

Page 35 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (e) Prepare annual reports on the commission's activities;

One (1) member shall be Page 36 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN appointed initially for a four (4) year term.

CHAPTER 185 21 (b) Vacancies for unexpired terms shall be filled in the same manner as regular appointments, but the appointees shall hold office only to the end of the unexpired term of the member replaced.

Page 37 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN There shall be no limit to the amount of reappointments a member may receive.

except, however, regardless of any provision of law to the contrary, the Commonwealth, its cabinets, departments, bureaus, and agencies, and its officers, agents, and employees, while acting Page 38 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN within the scope of their employment by the Commonwealth or any of its cabinets, departments, bureaus, or agencies, shall not be liable for collateral or dependent claims which are dependent on loss to another and not the claimant or damages for mental distress or pain or suffering, and compensation shall not be allowed, awarded, or paid for such claims for damages.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) Vacancies for unexpired terms shall be filled in the same manner as regular appointments, but the appointees shall hold office only to the end of the unexpired term of the member replaced.

One (1) member shall have a background Page 39 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN in business.

(10) The boards shall meet as often as necessary to perform their statutory Page 40 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN responsibilities as outlined in this chapter.

Any claim against the Commonwealth CHAPTER 185 23 or its departments, agencies, officers, agents, or employees, or a school district board of education or its members, officers, agents, or employees, for damages sustained as the result of exposure to asbestos before, during, or after its removal from a facility owned, leased, occupied, or Page 41 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN operated by the Commonwealth or a school district board of education shall be brought before the commission;

However, if a single act of negligence Page 42 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN results in multiple claims, the total award may not exceed four hundred thousand dollars ($400,000), to be equitably divided among the claimants, but in no case may any claimant individually receive more than two hundred fifty thousand dollars ($250,000).

(1) The Board of Claims[commission] created by KRS 49.010 is hereby vested with full power, authority, and jurisdiction to investigate, hear proof, and compensate Page 43 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN persons for damages sustained to either person or property as a proximate result of negligence on the part of any municipality, or any of its officers, agents, or Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY employees while acting within the scope of their employment by the municipality, or any agency thereof, relating to the maintenance by the municipality of state-state-owned owned traffic control devices pursuant to a contract with the Commonwealth.

It is further the intention of the General Assembly to otherwise expressly preserve the sovereign immunity of the Commonwealth, its cabinets, departments, bureaus, and Page 44 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN agencies and its officers, agents, and employees while acting in the scope of their employment in all other situations except where sovereign immunity is specifically and expressly waived as set forth by statute.

(5) No action for negligence against the Commonwealth, any of its cabinets, Page 45 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN departments, bureaus, or agencies, or any officers, agents, or employees thereof may be brought in any other court or forum in the Commonwealth except the board[commission] unless the board[commission] makes a final determination that it does not have primary and exclusive jurisdiction over the claim.

(8) No action for negligence may be brought in any court or forum other than the board[commission] against the Commonwealth, any of its cabinets, departments, bureaus, or agencies or any of its officers, agents, or CHAPTER 185 25 employees while acting within the scope of their employment by the Commonwealth or any of its cabinets, departments, bureaus, or agencies.

(12) Except as otherwise specifically set forth by statute and in reference to subsection (11) of this section, no action for damages may be maintained in any court or forum against the Commonwealth, any of its cabinets, departments, bureaus, or agencies or Page 46 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN any of its officers, agents, or employees while acting within their official capacity and scope of their employment by the Commonwealth or any of its cabinets, departments, bureaus, or agencies.

Page 47 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (16) Any claim against the Commonwealth or its departments, agencies, officers, agents, or employees, or a school district board of education or its members, officers, agents, or employees, for damages sustained as a result of exposure to asbestos before, during, or after its removal from a facility owned, leased, occupied, or operated by the Commonwealth or a school district board of education shall be brought before the Board of Claims.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (1) The Board of Claims[commission] may require affected state agencies to investigate claims and the incidents on which they are based and to furnish to the board[commission] and the claimant in writing the facts learned by investigation.

Page 48 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (2) If the claim is under two thousand five hundred dollars ($2,500), it may be investigated by the board[commission] in-house and if the board[commission] believes it needs additional facts before deciding the claim, the parties may provide the needed information by letter or as directed by the board[commission].

(7) In cases of two thousand five hundred dollars ($2,500) or less decided by a member, a claimant may make[If] an application for review [is made ]to the full board[commission] within fourteen (14) days from the date of the order or award.[,] If an application is made, the full board[commission, if the first decision was not made by the full commission,] shall, as soon as practicable, review the evidence, or, Page 49 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN if deemed advisable, hear the parties at issue, their representatives and witnesses, and shall make an order or award and file it as specified in subsection (5) above.

(8) The Office of Claims and Appeals may promulgate an administrative regulation authorizing a filing fee of no more than two hundred dollars ($200) for all appeals that are brought before the Board of Tax Appeals and the Board of Claims.

(2) All awards and cost of operation assessed by the commission against the Department of Highways shall be paid out of the state road fund upon warrants Page 50 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN drawn by the secretary of the Finance and Administration Cabinet upon the State Treasurer.

CHAPTER 185 27 (3) All awards and costs of operation assessed by the board[commission] against other cabinets or agencies of the state, which are not maintained by appropriations out of the general fund, shall be paid out of the funds created or collected for the maintenance and operation of such cabinets or agencies respectively, upon warrants drawn by the secretary of the Finance and Administration Cabinet upon the State Treasurer.

Each cabinet, commission, board, or agency shall remit quarterly their share of the cost of operation to the commissionboard[commission] in the manner provided by law.

(1) All claims must be filed with the board[commission] within one (1) year from the Page 51 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN time the claim for relief accrued.

(1) An award shall be made only after consideration of the facts surrounding the matter in controversy, and no award shall be made unless the Board of Page 52 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Claims[commission] is of the opinion that the damage claimed was caused by such negligence on the part of the Commonwealth or its agents as would entitle claimant to a judgment in an action at law if the state were amenable to such action.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY Section 26.

(2) Any claimant whose claim is two thousand five hundred dollars ($2,500) or greater may within thirty (30) days after receipt of the copy of the report containing the final decision of the board[commission], file a proceeding in the Circuit Court of the county wherein the hearing was conducted to review the decision of the Page 53 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN board[commission].

(1) Any action prosecuted to award, judgment, or final decision, including dismissal, under the provisions of KRS 49.040 to 49.180 shall preclude the right of a claimant to sue the Commonwealth, its cabinets, departments, bureaus, and agencies, and its Page 54 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN officers, agents, or employees in the Board of Claims[commission] or any other forum, except as provided in KRS 49.070(5) when the board[commission] determines that it has no jurisdiction over the claim.

and CHAPTER 185 29 (2) The files of the board[commission] consisting of all papers or other process filed with or by the board[commission].

Page 55 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (1) The Board of Tax Appeals[commission] may hold hearings at any location within the Commonwealth, with a view to securing opportunity to taxpayers to appear before it with as little inconvenience and expense as practicable.

(3) Any party aggrieved by any ruling, order, or determination of any revenue and taxation[state or county] agency charged with the administration of any taxing or Page 56 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN licensing measure may prosecute an appeal to the board[commission] by filing a complaint or petition of appeal before the board[commission] within thirty (30) days from the date of the mailing of the agency's ruling, order, or determination.

(4) If the Department of Revenue is aggrieved by the decision of any county board of assessment appeals on an assessment recommended by the department and prosecutes an appeal to the commissionboard[commission] as authorized in subsection (3) of this section, the commissioner of revenue shall, within twenty (20) days, certify in writing to the board[commission] the assessment recommended.

A protective order shall be entered and shall remain in effect during the entire appeals Page 57 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN process, including appeals to the courts, and thereafter, preventing the parties, their agents and representatives, except the taxpayer, from disclosing the information.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (3) In cases heard by the full board, the board may request that a hearing officer assist the board with the following:

(2) If the board[commission] finds that other issues are necessary to a full determination of the controversy, it may remand the whole proceeding to the agency Page 58 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN from which the appeal was prosecuted for further determination.

Page 59 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (2) This section shall be operative only during those time periods during which the Crime Victims Compensation Board[commission] determines that federal funds are available to the state for the compensation of victims of crime.

CHAPTER 185 31 (3) To request from prosecuting attorneys and law enforcement officers investigations and data to enable the board[ commission] to determine whether, and the extent to which, a claimant qualifies for compensation.

Page 60 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (7) To publicize widely the availability of reparations and information regarding the claims therefor;

Page 61 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Section 40.

If, within ten (10) days after such notification, such Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY United States attorney, Commonwealth's attorney, or county attorney advises the board[commission] that a criminal prosecution is pending upon the same alleged crime and requests that action by the board[commission] be deferred, the board[commission] shall defer all proceedings under KRS 49.270 to 49.490 until such time as such criminal prosecution has been concludedconcluded, and shall so notify such United States attorney, Commonwealth's or county attorney, and the claimant.

When such criminal prosecution has been concluded such United States attorney, Page 62 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Commonwealth's or county attorney shall promptly so notify the board[commission].

Page 63 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (6) Upon completion of the investigator's report, the claim shall be assigned to a board[commission] member who may decide the claim in favor of a claimant in the amount claimed on the basis of the papers filed in support thereof and the report of the investigation of the claim within thirty (30) days of the assignment of the claim.

Following the initial filing of a claim, if a claimant or victim does not take such further Page 64 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN steps as may be necessary to support or perfect the claim as may be required by the Crime Victims Compensation Board[commission] within thirty (30) days after such requirement is made by the board[commission], the claimant or victim shall be deemed in default.

CHAPTER 185 33 Section 43.

(1) No award shall be made unless the Crime Victims Compensation Page 65 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Board[commission] or board[commission] member, as the case may be, finds that:

Unless reduced pursuant to other provisions of KRS 49.270 to 49.490, the Page 66 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN award shall be equal to net earnings at the time of the criminally injurious conduct;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (6) Any award made under KRS 49.270 to 49.490 shall not exceed twenty-five thousand dollars ($25,000) in total compensation to be received by or paid on behalf of a claimant from the fund.

(a) Provides written notice to the creditor or creditor's agent that a claim has been Page 67 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN submitted to the board[commission];

however, the board[commission] or board[commission] member may disregard for this purpose the responsibility of the claimant or the victim for the victim's injury where the record shows that such responsibility was attributable to efforts by the claimant or Page 68 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN victim to prevent a crime or an attempted crime from occurrence in his or her presence or to apprehend a person who had committed a crime in his or her presence or had in fact committed a felony.

CHAPTER 185 35 Any person who procures or attempts to procure compensation with the Crime Victims Compensation Board[commission] by filing false information shall have the claim denied and be forever barred from filing a claim with this board[commission.]board[commission]. Section 48.

Section 48.

No award made pursuant to KRS 49.270 to 49.490 shall be Page 69 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN subject to execution or attachment other than for expenses resulting from the injury which is the basis for the claim.

(1) The Crime Victims Compensation Board[commission] may award a lump-sum payment not to exceed twenty-fivetwenty- five thousand dollars ($25,000) to the family of a police officer employed by a city, county, or urban-county government who is killed in the line of duty as a police officer for such city, county, or urban-county and who is not eligible to receive death or disability benefits under a pension plan of the city, county, or urban-county.

Page 70 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Section 52.

(5) Any action taken by any person convicted of a crime, whether by way of execution Page 71 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN of a power of attorney, creation of corporate entities, or otherwise, to defeat the purpose of this section shall be null and void as against the public policy of this state.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (6) The failure of a person to pay moneys to the board[commission] in accordance with subsection (1) shall create a debt due and owing to the board[commission] from that person and shall constitute a preferential lien to the state which may be collected by the board[commission] by civil process.

Nothing herein shall be construed to limit the power of the court to order additional forms of restitutionrestitution, including public or charitable work or reparation to the victim, to the fund, or otherwise as authorized Page 72 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN by law.

Any funds not utilized by the board[commission] shall be used to provide assistance to programs for victimsvictims, and the board[commission] shall allocate such funds to any agency providing services to victims.

All moneys deposited or paid into the sexual assault victim assistance fund are appropriated and shall be available to the commission.board[commission].

(3) Any unencumbered or unallocated balances in the sexual assault victim assistance Page 73 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN fund shall be invested as provided in KRS 42.500(9).

CHAPTER 185 37 (c) Independent investigation by the board[commission] shall not be required for payment of claims under this section;

Page 74 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (1) The state officers elected by the voters of the state at large, except the Governor and the Lieutenant Governor, the heads of departments, offices, and cabinets of the state government, the adjutant general, the members of the Public Service Commission, the members of the State Fair Board and Fish and Wildlife Resources Commission, and the members of the Board of Tax Appeals, Board of Claims, Crime Victims Compensation Board,[Kentucky Claims Commission] and the Alcoholic Beverage Control Board, shall each give bond.

Secretary of State ............................................................................................$10,000......................................................................................................................$10,000 Attorney General ...............................................................................................10,000........................................................................................................................10,000 State Treasurer ................................................................................................300,000..........................................................................................................................300,000 Secretary for economic development ................................................................10,000.........................................................................................10,000 Commissioner of Agriculture ...........................................................................10,000.....................................................................................................10,000 Secretary for education .....................................................................................10,000...............................................................................................................10,000 Auditor of Public Accounts ..............................................................................25,000........................................................................................................25,000 Adjutant general ................................................................................................10,000.........................................................................................................................10,000 Secretary of finance and administration ..........................................................100,000...................................................................................100,000 Commissioner of revenue .................................................................................50,000...........................................................................................................50,000 Secretary of transportation ................................................................................50,000..........................................................................................................50,000 Commissioner of highways ...............................................................................50,000........................................................................................................50,000 Secretary of justice and public safety ................................................................50,000.........................................................................................50,000 Secretary of corrections ....................................................................................25,000..............................................................................................................25,000 Page 75 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Commissioner for public health services ..........................................................10,000....................................................................................10,000 Secretary of labor ................................................................................................5,000..........................................................................................................................5,000 Commissioner for natural resources .................................................................50,000...........................................................................................50,000 State librarian ......................................................................................................5,000................................................................................................................................5,000 Commissioner of alcoholic beverage control ...................................................10,000.............................................................................10,000 Commissioner of financial institutions .............................................................25,000.......................................................................................25,000 Secretary for energy and environment...............................................................50,000environment.........................................................................................50,000 Commissioner of insurance ..............................................................................50,000........................................................................................................50,000 Commissioner of vehicle regulation .................................................................10,000...........................................................................................10,000 Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY Commissioner of fish and wildlife resources .....................................................5,000................................................................................5,000 Secretary for health and family services ...........................................................20,000.....................................................................................20,000 Commissioner of environmental protection .....................................................10,000................................................................................10,000 Secretary of public protection ...........................................................................10,000.....................................................................................................10,000 Secretary of tourism, arts and heritage ..............................................................25,000.......................................................................................25,000 Commissioner for community based services ..................................................20,000............................................................................20,000 Member of the Public Service Commission .....................................................10,000...............................................................................10,000 Member of State Fair Board .............................................................................10,000.......................................................................................................10,000 Member of Fish and Wildlife Resources Commission .......................................1,000.................................................................1,000 Member of Board of Tax Appeals[Kentucky Claims Commission].................10,000Commission]...........................................10,000 Member of Board of Claims.............................................................................10,000Claims.........................................................................................................10,000 Member of Crime Victims Compensation Board............................................10,000Board........................................................................10,000 Associate member of Alcoholic Beverage Control Board ..................................5,000............................................................5,000 Commissioner of local government ................................................................100,000..........................................................................................100,000 Section 58.

(1) The department shall develop and implement a Kentucky tax education and Page 76 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN information program directed at new taxpayers, taxpayer and industry groups, and department employees to enhance the understanding of and compliance with Kentucky tax laws, including the application of new tax legislation to taxpayer activities and areas of recurrent taxpayer noncompliance or inconsistency of administration.

(6) If any taxpayer's failure to submit a timely return or payment to the department is due to the taxpayer's reasonable reliance on written advice from the department, the taxpayer shall be relieved of any penalty or interest with respect thereto, provided Page 77 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN the taxpayer requested the advice in writing from the department and the specific facts and circumstances of the activity or transaction were fully described in the taxpayer's request, the department did not subsequently rescind or modify the advice in writing, and there were no subsequent changes in applicable laws or regulations or a final decision of a court which rendered the department's earlier written advice no longer valid.

(8) The department shall include with each notice of tax due a clear and concise description of the basis and amount of any tax, penalty, and interest assessed against the taxpayer, and copies of the agent's audit CHAPTER 185 39 workpapers and the agent's written narrative setting forth the grounds upon which the assessment is made.

The taxpayer fails to provide any requested financial condition update Page 78 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN information;

When the department releases any erroneous lien or levy, notice of the fact shall be mailed to the taxpayer and, if requested by the taxpayer, a copy of the release, together with an Page 79 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN explanation, shall be mailed to the major credit reporting companies located in the county where it was filed.

In the awarding of damages pursuant to this subsection, the commissionboard[commission] shall take into consideration the negligence or omissions, if Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY any, on the part of the taxpayer which contributed to the damages.

(15) Taxpayers shall have the right to privacy with regard to the information provided on their Kentucky tax returns and reports, including any attached information or Page 80 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN documents.

Page 81 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (3) After considering the taxpayer's protest, including any matters presented at the final conference, the department shall issue a final ruling on any matter still in controversy, which shall be mailed to the taxpayer.

however, the penalty shall not be less than ten dollars ($10).($10);[.] (2) Any taxpayer who fails to withhold or collect any tax as required by law, fails to pay the tax computed due on a return or report on or before the due date prescribed for it or the due date as extended by the department or, excluding underpayments determined under KRS 141.044 or 141.305, fails to have timely paid at least seventy-five percent (75%) of the tax determined due by the department shall, unless it is shown to the satisfaction of the department that the failure is due to reasonable cause, pay a penalty equal to two percent (2%) of the tax not withheld, collected, or timely paid for each thirty (30) days or fraction thereof that the CHAPTER 185 41 withholding, collection, or payment is late.

(2) Any taxpayer who fails to withhold or collect any tax as required by law, fails to pay the tax computed due on a return or report on or before the due date prescribed for it or the due date as extended by the department or, excluding underpayments determined under KRS 141.044 or 141.305, fails to have timely paid at least Page 82 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN seventy-five percent (75%) of the tax determined due by the department shall, unless it is shown to the satisfaction of the department that the failure is due to reasonable cause, pay a penalty equal to two percent (2%) of the tax not withheld, collected, or timely paid for each thirty (30) days or fraction thereof that the withholding, collection, or payment is late.

however, the penalty shall not be less than ten dollars ($10).($10);[.] (3) If any taxpayer fails or refuses to make and file a report or return or furnish any information requested in writing by the department, the department may make an estimate of the tax due from any information in its possession, assess the tax at not more than twice the amount estimated to be due, and add a penalty equal to five percent (5%) of the tax assessed for each thirty (30) days or fraction thereof that the return or report is not filed.

(3) If any taxpayer fails or refuses to make and file a report or return or furnish any information requested in writing by the department, the department may make an estimate of the tax due from any information in its possession, assess the tax at not more than twice the amount estimated to be due, and add a penalty equal to five percent (5%) of the tax assessed for each thirty (30) days or fraction thereof that the return or report is not filed.

This penalty shall be applicable whether or not any tax is determined to be due on a subsequently filed return or if the subsequently filed return results in a refund.refund;[.] (4) If any taxpayer fails or refuses to pay within sixty (60) days of the due date any tax assessed by the department which is not protested in accordance with KRS 131.110, there shall be added a penalty equal to two percent (2%) of the unpaid tax for each thirty (30) days or fraction thereof that the tax is final, due, and owing, but not paid.

(4)(5) IfAny any taxpayer who fails orto refusesobtain toany payidentification withinnumber, sixtypermit, (60)license, daysor other document of authority from the duedepartment datewithin anythe taxtime assessedrequired by thelaw departmentshall, whichunless it is notshown protestedto inthe accordancesatisfaction withof KRSthe 131.110,department therethat shallthe befailure addedis due to reasonable cause, pay a penalty equal to twoten percent (2%)(10%) of theany unpaidcost taxor forfee eachrequired thirtyto (30)be dayspaid orfor fraction thereof that the taxidentification isnumber, final,permit, due,license, andor owing,other butdocument notof paid.authority;

(5)however, Anythe taxpayerpenalty whoshall failsnot tobe obtainless anythan identificationfifty number,dollars permit,($50);[.] license,(6) orIf otherany documenttax ofassessed authorityby from the department withinis the timeresult requiredof negligence by lawa shall,taxpayer unlessor itother isperson, showna penalty equal to theten satisfactionpercent (10%) of the departmenttax thatso assessed shall be paid by the failuretaxpayer or other person who was negligent;[.] (7) If any tax assessed by the department is duethe toresult reasonableof cause,fraud paycommitted by the taxpayer or other person, a penalty equal to tenfifty percent (10%)(50%) of anythe costtax so assessed shall be paid by the taxpayer or feeother requiredperson who committed fraud;[.] (8) If any check tendered to bethe department is not paid forwhen presented to the identificationdrawee number,bank permit,for license,payment, orthere othershall documentbe Pagepaid 83as ofa 265penalty SB016220.100by -the 1237taxpayer -who XXXXtendered Engrossedthe UNOFFICIALcheck, COPYupon 21notice RSand SBdemand 162/ENof the department, an amount equal to ten percent (10%) of authority;the check.

however, the penalty shall not be less than fifty dollars ($50).

(6) If any tax assessed by the department is the result of negligence by a taxpayer or other person, a penalty equal to ten percent (10%) of the tax so assessed shall be paid by the taxpayer or other person who was negligent.

(7) If any tax assessed by the department is the result of fraud committed by the taxpayer or other person, a penalty equal to fifty percent (50%) of the tax so assessed shall be paid by the taxpayer or other person who committed fraud.

(8) If any check tendered to the department is not paid when presented to the drawee bank for payment, there shall be paid as a penalty by the taxpayer who tendered the check, upon notice and demand of the department, an amount equal to ten percent (10%) of the check.

If the taxpayer who tendered the check shows to the department's satisfaction that the failure to honor payment of the check resulted from error by parties other than the taxpayer, the department shall waive the penalty.penalty;[.] (9) Any person who fails to make any tax report or return or pay any tax within the time, or in the manner required by law, for which a specific civil penalty is not provided by law, shall pay a penalty as provided in this section, with interest from the date due at the tax interest rate as defined in KRS 131.010(6);[.] (10) The penalties levied pursuant to subsection (4) of this section shall apply to any tax assessment protested pursuant to KRS 131.110 to the extent that any appeal of the assessment or portion of it is ruled by the Board of Tax Appeals[Kentucky Claims Commission] or, if appealed from, the court of last resort, as not protested, appealed, or pursued in good faith by the taxpayer;[.] (11) Nothing in this section shall be construed to prevent the assessment or collection of more than one (1) of the penalties levied under this section or any other civil or criminal penalty provided for violation of the law for which penalties are imposed;

(9)and[.] Any(12) personAll whopenalties failslevied pursuant to makethis anysection tax report or return or pay any tax within the time, or in the manner required by law, for which a specific civil penalty is not provided by law, shall paybe aassessed, penaltycollected, asand providedpaid in this section, with interest from the datesame duemanner at the tax interest rate as definedtaxes. in KRS 131.010(6).

(10) The penalties levied pursuant to subsection (4) of this section shall apply to any tax assessment protested pursuant to KRS 131.110 to the extent that any appeal of the assessment or portion of it is ruled by the Board of Tax Appeals[Kentucky Claims Commission] or, if appealed from, the court of last resort, as not protested, appealed, or pursued in good faith by the taxpayer.

(11) Nothing in this section shall be construed to prevent the assessment or collection of more than one (1) of the penalties levied under this section or any other civil or criminal penalty provided for violation of the law for which penalties are imposed.

Page 84 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (12) All penalties levied pursuant to this section shall be assessed, collected, and paid in the same manner as taxes.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) Whenever any peace officer of this state, or any representative of the department, finds any contraband cigarettes, the cigarettes shall be immediately seized and stored in a depository to be selected by the officer or representative.

(e) The owner or any person having an interest in the seized cigarettes may appeal to the Board of Tax Appeals[Kentucky Claims Commission] a final Page 85 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN determination made by the department pursuant to KRS 49.220.

(1) Any person who has failed to list for taxation any property omitted from assessment, except such as is subject to assessment by the Department of Revenue, Page 86 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN may at any time list such property with the property valuation administrator.

CHAPTER 185 43 (4) Any property voluntarily listed as omitted property for taxation under this section shall be subject to penalties provided in KRS 132.290(3).

Page 87 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Section 63.

The property valuation administrator shall be entitled to a hearing before the Board of Tax Appeals[Kentucky Claims Commission], and an appeal may be taken from Page 88 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN the final action of the board[Kentucky Claims Commission] to the courts as provided by law.

or Page 89 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN h.

A person representing a property owner before the property valuation administrator shall present written authorization from the property owner which sets forth his or her professional capacity Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY and shall disclose to the property valuation administrator any personal or private interests he or she may have in the matter, including any contingency fee arrangements, except that attorneys shall not be required to disclose the terms and conditions of any contingency fee arrangement.

Page 90 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (c) The appeal shall be filed no later than one (1) workday following the conclusion of the inspection period provided for in KRS 133.045 or no later than the last day of an extension granted under paragraph (d) of this subsection.

Page 91 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (g) Any real property owner who has listed his or her property with the property valuation administrator at its fair cash value may ask the county board of assessment appeals to review the assessments of real properties he or she believes to be assessed at less than fair cash value, if he or she specifies in writing the individual properties for which the review is sought and factual information upon which his or her request is based, such as comparable sales or cost data and if the request is made no later than one (1) work day following the conclusion of the inspection period provided for in KRS 133.045, or no later than the last day of an extension granted under paragraph (d) of this subsection.

CHAPTER 185 45 (b) The department may be present at the hearing and present any pertinent evidence as it pertains to the appeal.

(d) This information shall include but not be limited to the physical characteristics of land and improvements, insurance policies, cost of construction, real estate sales listings and contracts, income and expense statements for commercial Page 92 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN property, and loans or mortgages.

6 A licensed or certified Kentucky real estate appraiser;

(5) The board shall provide a written opinion justifying its action for each assessment Page 93 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN either decreased or increased in the record of its proceedings and orders required in KRS 133.125 on forms or in a format provided or approved by the department.

(10) Any member of the county board of assessment appeals may be required to give evidence in support of the board's findings in any appeal from its actions to the Board of Tax Appeals[Kentucky Claims Commission] Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY pursuant to KRS 49.220.

Any persons aggrieved by a decision of the board, including the property valuation administrator, taxpayer, and department, may appeal the decision to the Board of Page 94 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Tax Appeals[Kentucky Claims Commission] pursuant to KRS 49.220.

(3) Within ten (10) days from the date that the department's aggregate equalization of Page 95 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN any or all classes or subclasses of property becomes final by failure of the fiscal court to prosecute an appeal or by order of the Board of Tax Appeals[Kentucky Claims Commission] pursuant to KRS 49.200 to 49.250 or the courts, the fiscal court shall cause to be published, at least one (1) time, in the newspaper having the largest circulation within the county, a public notice of the department's action.

Within five (5) days of the adjournment of the reconvened board, he shall Page 96 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN notify each property owner in writing of the final action of the board with relation to the equalization increase and shall forward a copy of the proceedings certified by the chairman of the board and attested by him to the Department of Revenue and to the other taxing districts participating in the tax.

CHAPTER 185 47 (9) The provisions of subsections (4), (5), (6), (7), and (8) of this section shall only apply to appeals growing out of equalization action by the Department of Revenue under the provisions of KRS 133.150.

The property covered by the void Page 97 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN certificate shall be assessed immediately as omitted property and the tax bill shall be payable as soon as prepared.

Page 98 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN The refunded amount shall not include any filing fees paid by the third-third-party party purchaser to the county clerk.

or Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY b.

Page 99 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN iii.

and (b) "Overpayment" or "payment where no tax was due" means the excess of the Page 100 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN tax payments made over the correct tax liability determined under the terms of the applicable statute without reference to the constitutionality of the statute.

Each claim or application for a refund shall be in writing and CHAPTER 185 49 state the specific grounds upon which it is based.

(4) Notwithstanding any provision of this section, when an assessment of limited liability entity tax is made under KRS 141.0401 against a pass-through entity as defined in KRS 141.206, the corporation or individual partners, members, or shareholders of the pass-through entity shall have the greater of the time period provided by this section or one hundred eighty (180) days from the date the assessment becomes final to file amended returns requesting any refund of tax for the taxable year of the assessment and to allow for items of income, deduction, and credit to be properly reported on the returns of the partners, members, or Page 101 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN shareholders of the pass-through entity subject to adjustment.

(a) The Commonwealth hereby revokes and withdraws its consent to suit in any forum whatsoever on any claim for recovery, refund, or credit of any tax Page 102 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN overpayment for any taxable year ending before December 31, 1995, made by an amended return or any other method after December 22, 1994, and based on a change from any initially filed separate return or returns to a combined return under the unitary business concept or to a consolidated return.

and (b) No provision of the Kentucky Revised Statutes shall constitute an appropriation or mandated appropriation for the payment of any claim for recovery, refund, or credit of any tax overpayment for Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY any taxable year ending before December 31, 1995, made by an amended return or any other method Page 103 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN after December 22, 1994, and based on a change from any initially filed separate return or returns to a combined return under the unitary business concept or to a consolidated return.

The state, county, city, school, and other taxes found to be due on any protested assessment or portion thereof shall begin to bear legal interest on the sixty-first day after the Board of Tax Appeals[Kentucky Claims Commission] acknowledges receipt of a protest of any assessment or enters an order to certify the unprotested portion of any assessment until paid, except that in no event shall interest begin to accrue prior to January 1 following April 30 of the year in which the report is due.

The oversight committee shall consist of nine (9) members appointed by the Governor and shall be Page 104 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN representative of local government and state government officials.

(3) The department shall provide the oversight committee with an annual report Page 105 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN reflecting the amounts distributed to each participating political subdivision, school district, special district, or sheriff department.

CHAPTER 185 51 (b) The parties shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses;

Page 106 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Section 72.

The transporter so notified of the assessment shall have Page 107 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN the right to an appeal to the Board of Tax Appeals[Kentucky Claims Commission] pursuant to KRS 49.220.

(d) After the fifteen (15) day period, the retailer may pay the tax due on the tobacco products or vapor products described in paragraph (c) of this subsection according to administrative regulations Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY promulgated by the department, and after which may proceed to sell the tobacco products or vapor products.

(3) If a retailer, who is not a licensed retail distributor, purchases tobacco products or vapor products for resale from a person not licensed under KRS 138.195(7), which is prohibited by KRS 138.140(2), the retailer may not sell those tobacco products or Page 108 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN vapor products until the retailer applies for and is granted a retail distributor's license under KRS 138.195(7)(b).

Any seized tobacco products or vapor products shall be held for a period of twenty (20) days, and if after that period no person has claimed the tobacco products or vapor products as his or her property, the commissioner shall cause the Page 109 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN tobacco products or vapor products to be destroyed.

(1) It is declared to be the legislative intent of KRS 138.130 to 138.205 that any untax-untax-paid paid cigarettes held, owned, possessed, or in control of any person other than as provided in KRS 138.130 to 138.205 are contraband and subject to seizure and forfeiture as set out in this section.

(2) (a) Whenever any peace officer of this state, or any representative of the department, finds any untax-paid cigarettes within the borders of this state in the possession of any person other than a licensee authorized to possess untax-untax-paid paid cigarettes by the provisions of KRS 138.130 to 138.205, those cigarettes Page 110 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN shall be immediately seized and stored in a depository to be selected by the officer or agent.

CHAPTER 185 53 (b) At the time of seizure, the officer or agent shall deliver to the person in whose custody the cigarettes are found a receipt for the cigarettes.

It is declared to be the legislative intent that any motor vehicle used to transport any Page 111 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN such cigarettes by other persons is contraband and subject to seizure and forfeiture.

The peace officer or agent of the department shall proceed as provided in subsection (2) of this sectionsection, and the commissioner of the department shall cause the motor vehicle to be sold, and the proceeds applied, as established in subsection (2) of this section.

(5) (a) The owner or any person having an interest in any goods, machinesmachines, or vehicles seized as provided under subsections (1) to (4) of this section may apply to the commissioner of the department for remission of the forfeiture for good cause shown.

Page 112 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (b) No person shall act as a distributor of tobacco products or vapor products without first obtaining a license from the department as set out in this section.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY for ten (10) years from the expiration of probation or final discharge from parole or maximum expiration of sentence.

Page 113 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (b) Each license shall be secured on or before July 1 of each year.

(6) Each unclassified acquirer shall secure a license for the privilege of acquiring Page 114 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN cigarettes on which the cigarette tax has not been paid.

CHAPTER 185 55 b.

(b) The department may, upon application, grant a retail distributor's license to a Page 115 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN retailer for the privilege of purchasing tobacco products or vapor products from a distributor not licensed by the department.

Page 116 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (f) Any person whose license has been revoked for the willful violation of any provision of KRS 131.600 to 131.630, 138.130 to 138.205, 248.752, or 248.754 or any administrative regulations promulgated thereunder shall not be entitled to any license provided for in this section, or have any interest in any license, either disclosed or undisclosed, either as an individual, partnership, corporation or otherwise, for a period of two (2) years after the revocation.

(10) No license issued pursuant to this section shall be transferable or negotiablenegotiable, except that a license may be transferred between an individual and a corporation, if that individual is the exclusive owner of that corporation, or between a subsidiary corporation and its parent corporation.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (13) (a) Licensed distributors of tobacco products or vapor products shall pay and report the tobacco products tax or vapor products tax on or before the twentieth day of the calendar month following the month in which the possession or title of the tobacco products or vapor products are transferred from the licensed distributor to retailers or consumers in this state, as the case may be.

(b) Retailers who have applied for and been granted a retail distributor's license for the privilege of purchasing tobacco products or vapor products from a Page 117 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN person who is not a distributor licensed under KRS 138.195(7)(a) shall report and pay the tobacco products tax or vapor products tax on or before the twentieth day of the calendar month following the month in which the products are acquired by the licensed retail distributors.

(1) If any dealer or transporter required to be licensed under KRS 138.310 files a false report of the data or information required by KRS 138.210 to 138.280, or fails, Page 118 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN refuses or neglects to file the reports required by those sections, even though no tax is due, or to pay the full amount of tax as required by those sections, or fails to meet the qualifications of a dealer as set out in KRS 138.210, or violates any other provision of this chapter, the license of the dealer or transporter may be revoked by the Department of Revenue.

or knowingly aid or assist in making any such false or Page 119 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN fraudulent statement or claim;

CHAPTER 185 57 (2) The refund permit of any person who shall violate any provision of subsection (1) of this section may be revoked by the Department of Revenue subject to appeal to the Board of Tax Appeals[Kentucky Claims Commission] pursuant to KRS 49.220, and may not be reissued until two (2) years have elapsed from the date of such revocation.

The dealer or refund Page 120 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN permit holder shall be notified by certified or registered letter.

Page 121 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN The word "premises" as used in this section includes lands, private ways, and any buildings and structures thereon.

Every manufacturer or dealer registered under this section shall be furnished additional dealer's plates upon the payment of fourteen dollars and fifty cents Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY ($14.50) for each additional plate requested.

This provision shall be limited to one (1) trip or demonstration to the same prospective Page 122 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN customer.

(c) Any person who is hired as a driver by a motor vehicle dealer for the limited, Page 123 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN specific purpose of transporting a motor vehicle to or from that dealer's place of business may, for that purpose only, operate a motor vehicle bearing a dealer plate.

At the end of the revocation or suspension periodperiod, the manufacturer or dealer whose license has been revoked or suspended and dealer's plates canceled may follow the provisions of this section and again be registered and secure dealer's plates from the clerk.

Page 124 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Section 82.

CHAPTER 185 59 (1) Application for a fluidized bed combustion technology tax exemption certificate shall be filed with the Department of Revenue in the manner and form prescribed by the Department of Revenue and shall contain plans and specifications of the fluidized bed combustion unitunit, including all materials incorporated and to be incorporated therein and a descriptive list of all equipment acquired or to be acquired by the applicant for the purpose of installing a fluidized bed combustion unit to reduce the sulfur emissions from coal combustioncombustion, and any additional information deemed useful by the Department of Revenue for the proper administration of this section.

Page 125 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (4) On mailing of notice of the action of the Department of Revenue revoking or modifying a certificate as provided in subsection (5) of this section, the certificate shall cease to be in force or shall remain in force only as modified as the case may require.

(9) The fluidized bed combustion technology tax exemption certificate, upon approval, shall exempt the facilities from taxes outlined in the provision of this section and Page 126 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN KRS Chapters 132, 136, 138, and 139.

(2) Every hospital of this state which offers emergency services shall provide that a physician, a sexual assault nurse examiner, who shall be a registered nurse licensed in the Commonwealth and credentialed by the Kentucky Board of Nursing as provided under KRS 314.142, or another qualified medical professional, as Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY defined by administrative regulation promulgated by the Justice and Public Safety Cabinet in consultation with the Sexual Assault Response Team Advisory Committee as defined in KRS 403.707, is available on call twenty-four (24) hours each day for the examinations of persons seeking treatment as victims of sexual offenses as defined by KRS 510.040, 510.050, 510.060, 510.070, 510.080, 510.090, 510.110, 510.120, 510.130, 510.140, 530.020, 530.064(1)(a), and 531.310.

(4) The physician, sexual assault nurse examiner, or other qualified medical professional, acting under a statewide medical forensic protocol which shall be developed by the Justice and Public Safety Cabinet in consultation with the Sexual Assault Response Team Advisory Committee as defined in KRS 403.707, and Page 127 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN promulgated by the secretary of justice and public safety pursuant to KRS Chapter 13A shall, upon the request of any peace officer or prosecuting attorney, and with the consent of the victim, or upon the request of the victim, examine such person for the purposes of providing basic medical care relating to the incident and gathering samples that may be used as physical evidence.

(b) Upon receipt of a completed claim form supplied by the board and an itemized billing for a forensic sexual assault examination or related services that are within the scope of practice of the respective provider and were performed no more than twelve (12) months prior to submission of the form, Page 128 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN the board shall reimburse the hospital or sexual assault examination facility, pharmacist, health department, physician, sexual assault nurse examiner, or other qualified medical professional as provided in administrative regulations promulgated by the board pursuant to KRS Chapter 13A.

Reimbursement shall be made to an out-of-state nurse who is credentialed in the other state to provide sexual assault examinations, an out-of-state hospital, or an out-of-out-of-state state physician if the sexual assault occurred in Kentucky.

CHAPTER 185 61 (c) 1.

All samples collected during an exam where the victim has chosen not to immediately report to law enforcement shall be stored, released, and destroyed, if appropriate, in accordance with an administrative regulation promulgated by the Justice and Public Safety Cabinet in Page 129 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN consultation with the Sexual Assault Response Team Advisory Committee as defined in KRS 403.707.

The cabinet shall provide technical assistance and factual information as requested in writing by the Page 130 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Department of Revenue.

If the Department of Revenue finds that the facility qualifies as a pollution control facility as defined in KRS 224.1-300(1),224.1- 300(1), it shall enter a finding and issue a certificate to that effect.

Notice of an order of the Department of Revenue denying, revoking, or modifying a certificate in the form of Page 131 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN certified copies thereof shall be sent by certified mail to the applicant or the holder thereof and shall be sent to the secretary of the cabinet.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (7) In the event of the sale, lease, or other transfer of a pollution control facility, not involving a different location or use, the holder of a pollution control tax exemption certificate for such facility may transfer the certificate by written instrument to the person who, except for the transfer of the certificate, would be obligated to pay taxes on such facility.

(1) If a licensee at any time files a false monthly report of the information required, or fails or refuses to file the monthly report or to pay the full amount of the tax or violates any other provision of KRS 234.310 to 234.440, without a showing that the failure was due to reasonable cause, the department may cancel the license and Page 132 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN suspend the privilege of acting as a liquefied petroleum gas motor fuel dealer.

Page 133 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (6) If the license is canceled by the department as provided in this section, and if the licensee has paid to this state all taxes, interest, and penalties under KRS 234.310 to 234.440, the department shall cancel the bond filed by the licensee.

(1) Application for an alcohol production exemption certificate shall be filed with the Department of Revenue in such manner and in such form as may be prescribed by regulations issued by the Department of Revenue and shall contain plans and specifications of the structure or structuresstructures, including all materials incorporated and to be incorporated therein and a descriptive list of all equipment acquired or to be acquired by the applicant for the purpose of producing ethanol for fuel useuse, and any additional information deemed necessary by the Department of Revenue for the proper administration of KRS 247.910 and this section.

CHAPTER 185 63 (2) Before issuing an alcohol production tax exemption certificate, the Department of Revenue shall give notice in writing by mail to the Office of Energy Policy, and shall afford to the applicant and to the Office of Energy Policy an opportunity for a hearing.

or (c) The structure or equipment or both to which the certificate relates has ceased Page 134 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN to be used for the primary purpose of alcohol production for fuel use and is being used for a different purpose.

The transferee shall give written notice of the effective Page 135 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN date of the transfer, together with a copy of the instrument of transfer to the Office of Energy Policy and the Department of Revenue.

Any written or oral statement as part of, or in support of, a claim for payment or other benefit pursuant to an insurance policy or from a "self-"self-insurer" insurer" as defined by KRS Chapter 342, knowing that the statement contains any false, incomplete, or misleading information concerning any fact or thing material to a claim;

or PageLegislative 136Research ofCommission 265PDF SB016220.100Version -ACTS 1237OF -THE XXXXGENERAL EngrossedASSEMBLY UNOFFICIAL COPY 21 RS SB 162/EN 2.

Page 137 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN a.

Not to exceed the period set forth in KRS 532.090 if the crime is a Class Page 138 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN A misdemeanor;

CHAPTER 185 65 (b) A fine, per occurrence, of:

The claimant shall Page 139 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN have the right to recover the damages provided in subsection (6) of this section.

When a final ruling is requested, the funding commission shall issue such ruling within sixty (60) days or at the next board of directors meeting, whichever is later, from the date the request is received Page 140 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN by the funding commission.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (8) Assessment payers shall preserve, retain, and provide all documents relevant to quarterly premium reports and subject to audits to the funding commission upon request during the completion of the audit.

If, after goodgood-faith faith efforts, the refund cannot be returned to the insured, the refund amount shall be remitted to the funding commission within thirty (30) days from the last date of attempting the refund.

Page 141 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (10) "Assessment payer" as used in this section means insurance carrier, self-insured group, and self-insured employer.

(1) Actions to collect the revenue and all other claims, demands and penalties due the Commonwealth, or to have satisfaction made of judgments in favor of the Commonwealth, except those actions which are prosecuted by an appeal to the Board of Tax Appeals[Kentucky Claims Commission] under the provisions of KRS 49.220 and 131.110.131.110;[.] (2) Actions against persons required to collect money due the Commonwealth, to pay money into the State Treasury, or to do any other act connected with the payment of money into the State Treasury after it has been collected, and against the sureties, heirs, devisees or representatives of such persons;[.] (3) Actions to surcharge and correct fee bills, accounts, and settlements, with their debits and credits, and all claims against the Treasury allowed and approved by any court in the Commonwealth to any person;[.] (4) Actions to recover any fraudulent, erroneous or illegal account, fee bill, charge, credit or claim approved and allowed or paid out of the Treasury to any person;

Pageand[.] 142(5) ofThe 265defendant SB016220.100in -any 1237action -brought XXXXin EngrossedFranklin UNOFFICIALCircuit COPYCourt 21or RSFranklin SBDistrict 162/ENCourt (2)under Actionsthe againstprovisions personsof requiredsubsection to(1) collectof moneythis duesection for the Commonwealth,collection toof paytaxes moneyassessed intounder theKRS StateChapter Treasury,141 orshall at any time prior to dothe anysubmission otherfor actjudgment connectedupon withproper themotion paymenthave a change of moneyvenue intoto the Statecounty Treasuryin afterwhich ithe hasresides beenor collected,his andprincipal againstoffice or place of business is located at no cost to the sureties,defendant heirs,in deviseesFranklin orCircuit representativesCourt ofor suchFranklin persons.District Court.

(3) Actions to surcharge and correct fee bills, accounts and settlements, with their debits and credits, and all claims against the Treasury allowed and approved by any court in the Commonwealth to any person.

(4) Actions to recover any fraudulent, erroneous or illegal account, fee bill, charge, credit or claim approved and allowed or paid out of the Treasury to any person.

(5) The defendant in any action brought in Franklin Circuit Court or Franklin District Court under the provisions of subsection (1) of this section for the collection of taxes assessed under KRS Chapter 141 shall at any time prior to the submission for judgment upon proper motion have a change of venue to the county in which he resides or his principal office or place of business is located at no cost to the defendant in Franklin Circuit Court or Franklin District Court.

The challenge shall be heard within ten (10) days of its filing or the nearest court date CHAPTER 185 67 thereafter.

The clerk shall be Page 143 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN entitled to collect a fee of two dollars and fifty cents ($2.50) from each account for which a disbursement is made at the time of disbursement.

(1) The conditions of probation and conditional discharge shall be such as the court, in its discretion, deems reasonably necessary to insureensure[insure] that the defendant will lead a law-abiding life or to assist him to do so.

(k) Answer all reasonable inquiries by the probation officer and promptly notify Page 144 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN the probation officer of any change in address or employment;

(3) When imposing a sentence of probation or conditional discharge in a case where a victim of a crime has suffered monetary damage as a result of the crime due to his property having been converted, stolen, or unlawfully obtained, or its value substantially decreased as a result of the crime, or where the victim suffered actual medical expenses, direct out-of-pocket losses, or loss of earning as a direct result of the crime, or where the victim incurred expenses in relocating for the purpose of the victim's safety or the safety of a member of the victim's household, or if as a direct Page 145 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN result of the crime the victim incurred medical expenses that were paid Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY by the Cabinet for Health and Family Services, the Crime Victims Compensation Board[Kentucky Claims Commission], or any other governmental entity, the court shall order the defendant to make restitution in addition to any other penalty provided for the commission of the offense.

This fee shall be paid by the defendant and shall inure to a trust and agency account which shall not lapse and which shall be used to hire additional deputy clerks and Page 146 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN office personnel or increase deputy clerk or office personnel salaries, or combination thereof;

(c) When a defendant fails to make restitution ordered to be paid through the circuit clerk or a court-authorizedcourt- authorized program run by the county attorney or the Commonwealth's attorney, the circuit clerk or court-authorized program shall notify the court;

Time spent in confinement or home incarceration under this subsection shall be credited against the maximum term of imprisonment Page 147 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN assessed for the defendant pursuant to KRS Chapter 532, if probation or conditional discharge is revoked and the defendant is sentenced to imprisonment.

CHAPTER 185 69 (1) Each cabinet secretary on the Governor's Executive Cabinet, established pursuant to KRS 11.065, shall designate a small business ombudsman from among their respective existing cabinet employees.

(3) Each cabinet shall provide contact information for the cabinet's small business ombudsman on the cabinet's Web site, including the ombudsman's name, telephone Page 148 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN number, mailing address, and e-mail address.

Page 149 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (3) The Commission on Small Business Innovation and Advocacy shall consist of thirteen (13) members:

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (10) The Commission on Small Business Innovation and Advocacy shall be administratively attached to the Office of Entrepreneurship and Small Business Innovation within the Cabinet for Economic Development.

Page 150 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Section 97.

(1) The duties of the Commission on Small Business Innovation and Advocacy shall include,include[,] but not be limited to:

The report may specify the commission's findings regarding the administrative regulation, including an identification and estimate of the number of small businesses subject to the administrative regulation, the projected reporting, recordkeeping, and other administrative costs required for compliance with the administrative regulation, and any suggestions the commission has for reducing the regulatory burden on small businesses through the use of tiering or exemptions, in accordance with KRS Page 151 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 13A.210.

(2) By September 1 of each year, the commission shall submit a report to the Governor and the Interim Joint Committee on Economic Development and Workforce Investment[Tourism] detailing its work in the prior fiscal year, including,including[,] but not limited to the following:

(b) The public hearing shall not be held before the twenty-first day or later than the last workday of the month following the month in which the Page 152 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN administrative regulation is published in the Administrative Register.

CHAPTER 185 71 (2) Each administrative regulation shall state:

Complete an electronic registration form located on a centralized state government Web site developed and maintained by the Commonwealth Page 153 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Office of Technology.

and Page 154 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 3.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 1.

(4) (a) If small business may be impacted by an administrative regulation, the administrative body shall e-mail a copy of the administrative regulation as filed, and all attachments required by KRS 13A.230(1), to the chief executive officer of the Commission on Small Business Innovation and Advocacy Page 155 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN within one (1) working day after the date the administrative regulation is filed with the Commission.

(5) (a) If a local government may be impacted by an administrative regulation, the administrative body shall send, by e-mail if the local government has an e-e-mail mail address, a copy of the administrative regulation as filed and all attachments required by KRS 13A.230(1) to each local government in the state within one (1) working day after the date the administrative regulation is filed with the Commission.

(c) An administrative body shall not be required to send a copy of an Page 156 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN administrative regulation that was amended after comments in accordance with KRS 13A.280 to a local government, unless its contact person requested a copy pursuant to KRS 13A.280(8).

CHAPTER 185 73 (9) If the notifications required by subsections (7) and (8) of this section are not received by the regulations compiler by close of business on the second workday of the calendar month following the end of the public comment period, the administrative regulation shall be deferred to the next regularly scheduled meeting of the subcommittee.

Page 157 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (10) The notifications required by subsections (7) and (8) of this section shall be made by letter.

(2) (a) Except as provided in paragraph (b) of this subsection, the administrative body shall file with the commission on or before 12 noon, eastern time, on the fifteenth day of the calendar month following the end of the public comment period the statement of consideration relating to the administrative regulation Page 158 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN and, if applicable, the amended after comments version.

of Page 159 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN this subsection shall be stapled in the top left corner.

(c) At the same time as, or prior to, filing the paper version, the administrative body shall file an electronic version of the amended after comments version, the statement of consideration, and the required Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY attachments saved as a single document for each amended after comments administrative regulation in an electronic format approved by the regulations compiler.

(5) If comments are received either at the public hearing or during the public comment Page 160 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN period, the administrative regulation shall be deferred to the next regularly scheduled meeting of the subcommittee following the month in which the statement of consideration is due.

(a) The statement shall be typewritten on white paper, size eight and one-half (8-(8-1/2) 1/2) by eleven (11) inches.

Page 161 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Each subject commented upon shall be summarized in a separate numbered paragraph.

and CHAPTER 185 75 (g) If administrative regulations were considered as a group at a public hearing, one (1) statement of consideration may include the group of administrative regulations.

(8) If requested, copies of the statement of consideration and, if applicable, the Page 162 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN amended after comments version of the administrative regulation shall be made available by the promulgating administrative body to persons attending the hearing or submitting comments or who specifically request a copy from the administrative body.

Page 163 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 1.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY a.

Revenues or economic impacts associated with any projects within the development area where the new project will be Page 164 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN located;

Page 165 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 4.

(4) A local development area agreement shall be executed among the agencies and taxing districts involved in administering, providing financing, or pledging Page 166 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN incremental revenues within the local development area.

CHAPTER 185 77 (b) Specific identification of the tax increments released or pledged by type of tax by each taxing district;

and Page 167 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (i) Any other provisions not inconsistent with KRS 65.7041 to 65.7083 deemed necessary or appropriate by the parties to the agreement.

Approved companies and outstanding eligible companies with preliminary approval granted on or before June 30, 2021, shall continue to be governed by Subchapter 26 of KRS Chapter 154 and this section.

(e)[(d)] "Kentucky gross receipts" has the same meaning as[means Kentucky Page 168 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN gross receipts as defined] in KRS 141.0401;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) 1.

and Page 169 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 3.

(5)[(4)] (a) Notwithstanding any other provisions of this chapter, an approved company which is a pass-throughpass- through entity not subject to the tax imposed by KRS 141.040 or trust not subject to the tax imposed KRS 141.040 shall be subject to income tax on the net income attributable to an economic revitalization project at the rates provided in KRS 141.020.

(d) If the tax computed in this section exceeds the tax credit, the difference shall be paid by the pass-throughpass- through entity or trust at the times provided by KRS 141.160 for filing the returns.

(e) Any estimated tax payment made by the pass-through entity or trust in Page 170 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN satisfaction of the tax liability of partners, members, shareholders, or beneficiaries shall not be treated as taxable income subject to Kentucky income tax by the partner, member, shareholder, or beneficiary.

(6)[(5)] Notwithstanding any other provisions of this chapter, the net income subject to tax, the tax credit, and the estimated tax payment determined under subsection (5)[(4)] of this section shall be excluded in determining each partner's, member's, shareholder's, or beneficiary's distributive share of net income or credit of a pass-pass-through through entity or trust.

(a) Net income attributable to the entire facility shall be determined under the separate accounting method reflecting only the gross income, deductions, expenses, gains, and losses allowed under KRS Chapter 141CHAPTER 185 79 directly attributable to the facility and overhead expenses apportioned to the facility, and the net income attributable to the economic revitalization project for the purposes of subsections [(3), ](4),[ and] (5), and (6) of this section shall be determined by apportioning the separate accounting net income of the entire Page 171 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN facility to the economic revitalization project by a formula approved by the department[ of Revenue];

(2) "Alternative fuel production" has the same meaning as in Section 118 of this Page 172 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Act;

(3) "Applicant" means a[ an educational institution,] business[,] or industry that has made application for a grant-in-aidgrant- in-aid or skills training investment credit as authorized by KRS 154.12-205 to 154.12-208;

(7) "Carbon dioxide transmission pipeline" has the same meaning as in Section 118 Page 173 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN of this Act;

(10)[(6)] "Educational institution" means a public or nonpublic secondary or postsecondary institution or an independent provider within the Commonwealth authorized by law to provide a program of skills training or Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY education beyond the secondary school level or to adult persons without a high school diploma or its equivalent;

Page 174 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (16) "Hospital" has the same meaning as in Section 118 of this Act ;

Page 175 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 4.

CHAPTER 185 81 (b) "Qualified company" does not include companies where the primary activity to be conducted within the Commonwealth is forestry, fishing,[ mining, coal or mineral processing,] the provision of utilities, construction, wholesale trade, retail trade, real estate, rental and leasing, accommodation and food services, or public administration services;[.] [(c) Other qualified companies may be included if specific funds for grants-in-aid to retail business and industry are appropriated by the General Assembly;] (23) "Renewable energy production" means the same as in Section 118 of this Act;

and Page 176 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (26)[(15)] "Technical assistance" means professional and any other assistance provided by qualified companies to an educational institution, which is reasonably calculated to support directly the development and expansion of a particular program as defined herein.

Page 177 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (8) To collect and disseminate to interested individuals, in cooperation with and through any agencies of federal, state, and municipal government, information concerning areas of present and projected employment need, programs of skills training and education consistent therewith, and any other relevant information;

and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (12) To certify or decertify skills training providers, both public and private, including their teachers and instructors as approved providers of skills training services for a grant-in-aid].

Such grants-in-grants- aidin-aid shall be used exclusively for programs which are consistent with the provisions of this chapter.

The amount of the skills Page 178 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN training investment credit awarded by the corporation shall be an amount not to exceed[equal to] fifty percent (50%) of the amount of approved costs incurred by the approved company in connection with its program of occupational upgrade training or skills upgrade training, the credit amount not to exceed two thousand[five hundred] dollars ($2,000)[($500)] per trainee[employee] and, in the aggregate, not to exceed two[one] hundred thousand dollars ($200,000)[($100,000)] for each approved company per fiscal year[biennium].

(a)[1.](a)[1.]A A proposal for a program of skills upgrade training, occupational upgrade training, and education;

(b)[2.](b)[2.]A A description of each component of the proposed training program and the number of employee training hours requested;

and (c)[3.] A statement of the total anticipated costs and expenses of the program, including a breakdown of the costs associated with equipment, personnel, facilities, and materials[;

To qualify for a grant-in-aid or a skills training investment credit in which a Page 179 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN provider other than an educational institution will provide training, the qualified company may independently submit a proposal to the corporation containing the same information as set forth in this subsection].

CHAPTER 185 83 (5) After a review of applications for grant-in-aid and skills training investment credits, Page 180 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN the corporation may designate the qualified company as an approved company and approve the maximum amount of grants and skills training investment credits the approved company is eligible to receive.

The office shall be responsible for various forms of entrepreneurship and small business assistance, including but not limited to providing customer service and project management with small and minority businesses, assisting export development, administering the innovation assistance set forth in KRS 154.12-278, introducing entrepreneurs to individual investors and to investment capital firms interested in start-up and early-stage financing, and collecting, summarizing, and disseminating information helpful to small businesses, including information on Page 181 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN market research, federal, state, and local minority business programs, government procurement opportunities, and the availability of managerial assistance.

and (j) Review and approve the annual plan which details the annual allocation of Page 182 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN funds from the Science and Technology Funding Program[, prior to the Council on Postsecondary Education executing a contract with the science and technology organization to administer science and technology funding programs].

As used in this paragraph, the Science and Technology Funding Program means the Kentucky enterprise fund[Enterprise Fund Program], the Rural Innovation Program, the Kentucky Commercialization Program, The Regional Technology Corporations/Innovation and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY Commercialization Center Satellites, [and ]the Experimental Program to Stimulate Competitive Research/Kentucky Science and Engineering Foundation, Small Business Innovation Research and Small Business Technology Transfer grants, and other government grant programs and funding programs as determined by the executive director of the Office of Entrepreneurship and Small Business Innovation.

(3) The high-tech construction pool shall be used for projects with a special emphasis on the creation of high-technologyhigh- technology jobs and knowledge-based companies.

(4) The high-tech investment pool shall be used to build and promote technology-technology-driven driven industries and research-intensiveresearch- intensive industries, as well as their related suppliers, with the goal of creating clusters of innovation-driven industries in Kentucky.

Page 183 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (5) The Kentucky Economic Development Finance Authority shall assureensure[assure] in their approval of funding of projects that the highest priority is given to knowledge-based companies in fulfillment of the purposes and intentions of the purposes of this section.

Page 184 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (c) The satellites are responsible for generating technology business development in their assigned geographic area, acting as a bridge between individuals and businesses needing critical early state concept and development work and the affiliate centers that can provide this support.

CHAPTER 185 85 (1) The cabinet shall maintain a searchable electronic database on its Web site containing information on the cost and status of the programs listed in subsection (3)(a) of this section.

(c) For the Kentucky Business Investment Program and the Kentucky Enterprise Initiative Act, the amount of incentives or other benefits actually recovered as Page 185 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN self-reported by the recipient;

Page 186 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Kentucky Jobs Retention Act;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (7) "Entity" means any corporation, limited liability company, business development corporation, partnership, limited partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted;

(9) "Full-time employee" means a person that is required to work a minimum of thirty-thirty-five five (35) hours per week and is subject to the tax imposed by KRS 141.020;

Page 187 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (10) "Knowledge-based" has the same meaning as in KRS 164.6011;

and (14) "Qualified small business" means an entity meeting the requirements of KRS 154.20-234 for qualified small businesses, and certified pursuant to KRS 154.20-154.20-236. Page 188 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 236.

(3) To participate in the program created by KRS 141.396 and 154.20-230 to 154.20-154.20-240: 240:

To be qualified, the small businesses and individual investors shall fulfill the requirements outlined in KRS 154.20-154.20-234;[ 234;[ and] (b) Once certified, qualified investors [may make investments in qualified small businesses, and ]may apply to the authority for a credit in return for making the investment if that investment qualifies under KRS 154.20-234;

CHAPTER 185 87 Section 111.

Page 189 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (1) The requirements for small businesses, investors, and investments to be qualified for participation in the Angel Investor Program are as follows:

4.[(d)]4.[(d)]Has Has more than fifty percent (50%) of its assets, operations, and employees located in the Commonwealth;

2.[(b)]2.[(b)]Qualifies Qualifies as an accredited investor pursuant to Regulation D of the United States Securities and Exchange Commission, 17 C.F.R.

230.501, in effect as of the date the individual investor requests Page 190 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN certification;

4.[(d)]4.[(d)]Is Is not closely related to an individual who holds in excess of twenty percent (20%) ownership interest in, or who is employed by, the qualified small business prior to making the qualified investment in that qualified small business.

For purposes of this paragraph,subparagraph[paragraph], "closely related" means any of the following in relation to the owner or owners or spouse of the owner or owners:

a.[1.]Parentsa.[1.] Parents or grandparents;

b.[2.]Childrenb.[2.] Children or their spouses;

or c.[3.]Siblingsc.[3.] Siblings or their spouses;

and 2.[(b)]2.[(b)]Be Be offered and executed in compliance with applicable state and federal securities laws and regulations.[;

Page 191 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Section 112.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY As used in KRS 154.20-250 to 154.20-284, unless the context clearly requires otherwise:

(10) "Entity" means any corporation, limited liability company, business development Page 192 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN corporation, partnership, limited partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted;

(18)[(17)] "Qualified activity" has the same meaning as in Section 109 of this Act[means any industrial, manufacturing, mining, mining reclamation for economic development, commercial, health care, agricultural enterprise, or agribusiness Page 193 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN activity.

CHAPTER 185 89 (19)[(18)] "Qualified investment" means an investment of at least ten thousand dollars ($10,000)[money] in a small business by an investment fund, in compliance with applicable state and federal securities laws and regulations, seeking a financial return based upon that consideration.

(b) Is actively and principally engaged in a qualified activity within the Commonwealth, or will be actively and principally engaged in a qualified Page 194 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN activity within the Commonwealth after the receipt of a qualified investment by an investment fund;

(1) (a) The total amount of credits available to any single investment fund awarded credits under KRS 154.20-250154.20- to 154.20-284 shall not exceed, in aggregate:[,] 1.

Page 195 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (3) Prior to the granting of any tax credits to investors of an investment fund, the committed cash contributions to an investment fund shall be not less than five hundred thousand dollars ($500,000).

(4) (a) An investment fund shall have no less than four (4) investors, and no investor or investment fund manager, including their closely-related[immediate]closely related[immediate] family members[, as defined in KRS 164.6011(6)], and affiliates may own or have a capital interest in more than forty percent (40%) of the investment fund's capitalization.

(b) As used in this subsection, "closely-related""closely related" means any of the following in relation to the investor, the investor's spouse, the fund manager, or the fund manager's spouse:

or Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 3.

Page 196 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (6) Any investor shall be entitled to a tax credit as a result of its investment in an investment fund as provided in KRS 154.20-258.

(e) The location and account number of a bank account that has been established Page 197 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN for use by the investment fund;

CHAPTER 185 91 3.

Investors shall lose all rights to any unused credits allocated to an Page 198 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN investment fund that does not make a qualified investment within one (1) year of the date of the agreement with the authority or within any one (1) year period thereafter through the end of the term of the agreement.

(5) The criteria considered by the authority for the approval of investment fund Page 199 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN managers and the maximum amount of credits allocated to the investors of an investment fund shall include but not be limited to:

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (8) An investment fund manager seeking to expand a previously approved investment Page 200 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN fund shall submit to the authority an amended application in a form acceptable to the authority.

Page 201 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 1.[(a)] Both the income tax imposed by KRS 141.020 or 141.040, and the limited liability entity tax imposed by KRS 141.0401, with the ordering of the credits as provided in KRS 141.0205;

2.[(b)]2.[(b)]The The insurance taxes imposed by KRS 136.320, 136.330, and 304.3-270;

(a) A nonprofit entity may transfer, for some or no consideration, any or all of the credits it receives under this section and any related benefits, rights, Page 202 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN responsibilities, and liabilities.

CHAPTER 185 93 (b) If an investor is an entity and is a party to a merger, acquisition, consolidation, dissolution, liquidation, or similar corporate reorganization, the tax credits shall pass through to the investor's successor.

The authority shall, within sixty (60) days of approval of credits, notify the Page 203 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN Department of Revenue of the information required pursuant to this subsection and notify each investor of the amount of credits granted to that investor, and the year the credits may first be claimed.

The audit shall address the financial condition of the investment fund and compliance with the provisions of KRS 141.068 and KRS 154.20-250 to 154.20-154.20-284. 284.

Refusal to obey such a subpoena or subpoena duces tecum may be reported to the Franklin Circuit Court, which shall enforce the Page 204 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN subpoena or subpoena duces tecum according to the rules of civil or criminal procedure, as applicable.

(5) The authority may give an investment fund manager written notice of any noncompliance with the provisions of KRS 154.20-250 to 154.20-284 and specify a period of time the investment fund manager shall have to cure Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY any noncompliance.

If any Page 205 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN examination or investigation conducted pursuant to any securities laws or regulations discloses that an investment fund or investment fund manager is not in compliance with any provision of any applicable securities laws or regulations, the appropriate securities regulator may take whatever action it deems appropriate in accordance with such securities laws and regulations to respond to the noncompliance, notwithstanding any action the authority or the Department of Revenue may or may not take with respect to the noncompliance.

The alternative fuel production may produce electricity as a by-by-product product if the primary function of the operations remains the production and sale of alternative transportation fuels;

[(7) "Biomass resources" has the same meaning as in KRS 152.715;] (6)[(8)] "Carbon dioxide transmission pipeline" has the same meaning as in Section 118 of this Act[means the in-state portion of a pipeline, including appurtenant facilities, property rights, and easements, that is used exclusively for the purpose of transporting carbon dioxide to the point of sale, storage, or other carbon Page 206 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN management applications];

CHAPTER 185 95 3.

or Page 207 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 9.

(14)[(16)] (a) "Equipment" means tangible personal property which is subject to depreciation under Sections 167 and 168 of the Internal Revenue Code, including assets which are expensed under Section 179 of the Internal Revenue Code, and that is used in the operation of a business.

(b) "Equipment" does not include any tangible personal property used to maintain, restore, mend, or repair machinery or equipment, consumable Page 208 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN operating supplies, office supplies, or maintenance supplies;

The gasification production may produce electricity as a by-by-product product if the primary function of the operations remains the production and sale of alternative transportation fuels, synthetic natural gas, chemicals, chemical feedstocks, or liquid fuels];

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (18)[(20) (a)] "Manufacturing" has the same meaning as in Section 118 of this Actmeans to make, assemble, process, produce, or perform any activity that changes the form or conditions of raw materials and other property, and shall include any ancillary activity to the manufacturing process, such as storage, warehousing, distribution, and related office facilities.

(b) "Manufacturing" does not include any activity involving the performance of work classified by the divisions, including successor divisions, of mining in Page 209 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 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];

Page 210 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (d) Distribution or fulfillment of orders;

CHAPTER 185 97 a.

Stock possessing more than fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote or more than fifty percent (50%) of the total value of shares of all Page 211 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN classes of stock of each of the corporations, except the common parent corporation, is owned by one (1) or more of the other corporations;

(j) A fiduciary of a trust and a limited liability company more than fifty percent (50%) of the capital interest, or the interest in profits, of which is owned Page 212 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN directly or indirectly, by or for the trust or by or for a person who is a grantor of the trust;

or (p) Two (2) or more limited liability companies, if the same persons own more Page 213 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN than fifty percent (50%) of the capital interest or are entitled to more than fifty percent (50%) of the capital profits in the limited liability companies;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (3)[(4)] "Agribusiness" means the processing of raw agricultural products, including but not limited to timber and industrial hemp, or the performance of value-added functions with regard to raw agricultural products;

Page 214 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (14) "Confirmed approved costs" means:

CHAPTER 185 99 4.

Headquarters operations, regardless of the underlying business activity Page 215 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN of the company;

Page 216 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 6.

(20) "Energy-efficient alternative fuel production" means a Kentucky operation that produces for sale energy-efficientenergy- efficient alternative fuels;

PageLegislative 217Research ofCommission 265PDF SB016220.100Version -ACTS 1237OF -THE XXXXGENERAL EngrossedASSEMBLY UNOFFICIAL COPY 21 RS SB 162/EN (21) "Energy-efficient alternative fuels" means homogeneous fuels that:

Page 218 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (26) "Gasification production" means a Kentucky operation that primarily produces for sale:

The gasification production may produce electricity as a by-by-product product if the primary function of the operations remains the production and sale of alternative transportation fuels, synthetic natural gas, chemicals, chemical feedstocks, or liquid fuels;

(33)[(32)] "Lease agreement" means an agreement between an approved company and an unrelated entity conveying the right to use a facility, the terms of which reflect an Page 219 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN arms' length transaction.

CHAPTER 185 101 [(34) "Loan agreement" means the agreement between the authority and a preliminarily approved company establishing the terms and conditions of an advance disbursement;] (35) "Manufacturing" means any activity involving:

(b) "Nonretail service or technology" includes but is not limited to call centers, centralized administrative or processing centers, telephone or Internet sales Page 220 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN order or processing centers, distribution or fulfillment centers, data processing centers, research and development facilities, and other similar activities;

(45) "Term" means the period of time for which a tax incentive agreement may be in effect, which shall not exceed fifteen (15) years for an economic development Page 221 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN project located in an enhanced incentive county, or ten (10) years for an economic development project not located in any other county;[ and] (46) "Vital medications" means any drug or biologic used to prevent or treat a serious life-threatening disease or medical condition for which there is no other available source with sufficient supply of that drug or biologic or alternative drug or biologic;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (47)[(46)] "Wage" means the per hour earnings of a full-time employee, including wages, tips, overtime, bonuses, and commissions, as reflected on the employee's federal form W-2 wage and tax statement, but excludes employee benefits;

Page 222 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 1.

If the eligible company does not provide employee benefits equal to at least fifteen percent (15%) of the Page 223 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN minimum wage requirement established by subparagraph 1.

of this paragraph through increased hourly wages combined with employee benefits,benefits; or (d) Produce vital medications, personal protective equipment, or equipment necessary to produce personal protective equipment.

or (d) Produce vital medications, personal protective equipment, or equipment necessary to produce personal protective equipment.

CHAPTER 185 103 (a) Tax credits of up to one hundred percent (100%) of the Kentucky income tax imposed under KRS 141.020 or 141.040 and the limited liability entity tax imposed under KRS 141.0401 on the income, Kentucky gross profits, or Kentucky gross receipts of the approved company generated by or arising from the economic development project, as set forth in KRS 141.415 and 154.32-070;

(4) The General Assembly hereby finds and declares that the authority granted in this subchapter and the purposes accomplished hereby are proper governmental and public purposes for which public moneys may be expended, and that the Page 224 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN inducement of the location of economic development projects within the Commonwealth is of paramount importance to the economic well-being of the Commonwealth.

(8) The term of the agreement, which shall not exceed fifteen (15) years for an Page 225 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN economic development project located in an enhanced incentive county, or ten (10) years for an economic development project located in another county;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (13) A provision requiring the approved company to notify the authority immediately if the approved company sells or otherwise transfers or disposes of the land on which an economic development project is located, if a lease relating to the economic development project is terminated or lapses, or if the approved company ceases or fundamentally alters operations at the economic development project;

(15) [If the tax incentive agreement includes an advance disbursement, incorporation of the provisions of the loan agreement or inclusion of the loan agreement as an Page 226 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN attachment to the tax incentive agreement;

(1) The authority shall not approve an economic development project that otherwise meets the requirements of this subchapter if the economic development project will result in the replacement of facilities existing in the statestate, except as provided in this section.

Page 227 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 1.

and CHAPTER 185 105 b.

or Page 228 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 3.

(6)[(3)] "Authority" means the Kentucky Economic Development Finance Authority created by KRS 154.20-010;154.20- 010;

Page 229 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (7) "Capital lease" has the same meaning as in Section 118 of this Act;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY f.

at the same[asame[a] ]facilityfacility located and operating within the Commonwealth on a permanent basis for a reasonable period of time preceding the request for approval of a reinvestment project by the authority, including facilities where operations have been temporarily suspended Page 230 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN and which meet the standards under Section 123 of this Act and related administrative regulations promulgated by the authority;authority.[;] (b) "Eligible company" does not include any company for which the primary activity to be conducted within the Commonwealth is:

(b) "Eligible company" does not include any company for which the primary activity to be conducted within the Commonwealth is:

All costs of architectural and engineering services, including estimates, plans and specifications, preliminary investigations, and supervision of Page 231 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN construction, rehabilitation and installation, as well as for the performance of all the duties required by or consequent upon the acquisition, construction, equipping, rehabilitation, and installation of a reinvestment project;

CHAPTER 185 107 (a) Fees or salaries paid to instructors, whether those instructors are employees of the approved company, contractors, or consultants;

Page 232 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (e) Amounts paid to employees as wages for attending the occupational training program;

Page 233 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (24)[(13)] "Kentucky gross receipts" has the same meaning as in KRS 141.0401;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 1.

or off-site construction of utility extensions to the boundaries of the real estate on which the facilities are located;[ and Page 234 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 2.

Upon preliminary approval, the preliminarily approved company Page 235 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN may undertake the project in accordance with the memorandum of agreement;

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[credits] by the Page 236 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN approved company.

CHAPTER 185 109 (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.

Page 237 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (e)[(c)] A timeline for the proposed reinvestment project;

(3) A set employment retention goal, which shall be at least eighty-five percent (85%) Page 238 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN of the number of full-time employees employed at the facility on the date the company receives preliminary approval;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) The date on which the approved company has received incentives equal to the approved costs of its reinvestment project;

and (11) Any other provisions not inconsistent with this subchapter and determined to be Page 239 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN necessary or appropriate by the parties to the reinvestment agreement.

(b) An approved company meeting the expenditure and employment retention requirements established by this subsection shall be eligible to recover up to fifty percent (50%) of the amount expended for eligible equipment and related costs[, and up to one hundred percent (100%) of job skills upgrade training Page 240 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN costs].

CHAPTER 185 111 (b) It is in the best interest of the Commonwealth to induce reinvestment in existing[ manufacturing] facilities of eligible companies within the Commonwealth in order to advance the public purposes of relieving unemployment by preserving jobs that may be lost if not for the incentives to be offered by the authority to approved companies, and by preserving and creating sources of tax revenues for the support of public services provided by the Commonwealth;

The Page 241 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN report shall include but not be limited to the following information:

(a) "Basic research centers" which means centers under contract with the Page 242 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN University of Kentucky and the University of Louisville;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (11) "Secretary" means the secretary of the Cabinet for Economic Development;

(a) For the first application for which credits are approved, the number of full-full-time Page 243 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN time employees employed on the day prior to the work start date of the new employee filling the earliest eligible position identified on the application;

Page 244 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (1) The authority shall develop a Small Business Development Credit Program in consultation with the Office of Entrepreneurship and Small Business Innovation to assist new or existing small businesses operating in the Commonwealth.

CHAPTER 185 113 (b) In order to be eligible to receive final approval for a credit, a small business shall, within the twenty-fourtwenty- four (24) month period immediately preceding the application submission date:

If a full-time employee filling a newly created eligible position Page 245 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN ceases to be employed by the small business for any reason, that employee shall be replaced within forty-five (45) days in order for the eligible position to maintain its eligible status, in addition to meeting all other applicable requirements.

(3) "Closely-related"Closely related family members" means any of the following in relation to an employee or their spouse:

Page 246 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN (b) Children or their spouses;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (8) "Knowledge-based" means driven by knowledge, innovation, and speed;

(11) "Science and technology organization" means an independent, nonprofit or quasi-quasi-governmental governmental organization, with a statewide mission, that has a demonstrated Page 247 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN history of managing complicated programs in the areas of entrepreneurial innovation, science, and technology advancement;

and (b) Soliciting, borrowing, accepting, receiving, and expending funds from any public or private source, including but not limited to general fund appropriations of the Commonwealth, grants, or contributions of money, property, labor, or other things of value to be used to carry out the programs' Page 248 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN operations, functions, and responsibilities;

and (c) Notwithstanding the provisions in paragraph (a) of this subsection, the executive director[commissioner] of the Office[Department] of Entrepreneurship and Small Business Innovation[Commercialization and Innovation] shall approve the contracts issued by the cabinet[Council on Postsecondary Education] regarding the structure of programs and funding levels in those programs administered by a science and technology organization and created in KRS 154.12-320[,154.12- 320[, 164.6021, 164.6029, and 164.6037].

The cabinet[council] shall work with the science and technology organization to adopt best practices for state investment funds, and shall oversee and approve the application criteria, the process for submission of an application, the types of equity investments permitted, the amount of investments that should be made in each fiscal year, the category or categories of investments that shall be made consistent with the cabinet's strategic plans, and the structure and type of outside expertise or peer review used in the application review process for[in] the programs created in Page 249 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN KRS 164.6021[,] and 164.6029[, and 164.6037].

CHAPTER 185 115 (4) No member of the cabinet[council] or the science and technology organization or other administering entity, or their employees or outside experts or their closely-closely related[immediate] family members, shall directly or indirectly financially benefit in any award, contract, or agreement under the programs.

(1) There is established and created a trust and agency account[in the State Treasury a fund] entitled the "Kentucky enterprise fund" for the purpose of enabling small or medium-size, Kentucky-based companies to undertake feasibility, concept development, research and development, or commercialization work[ in partnership Page 250 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN with colleges and universities in the Commonwealth].

(1) The Cabinet for Economic Development shall manage[There is created and established in] the[ Council on Postsecondary Education a] Kentucky enterprise fund[ Program] to provide capital to small and medium-size, Kentucky-based companies to undertake feasibility,conceptfeasibility, concept development, research and development, or commercialization work[ in partnership with colleges and universities in the Commonwealth].

(a) Accelerate knowledge transfer and technological innovation, improve economic competitiveness, and spur economic growth in Kentucky-based Page 251 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN companies;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (3) The Kentucky enterprise fund[ Program] shall be used[make financial assistance available] to fund qualified companies in accordance with this section as follows:

(4) Beginning July 1, 2021, the cabinet shall allocate at least twenty percent (20%) of Page 252 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN the annual allotment of funds for the Kentucky enterprise fund to qualified companies located in rural or enhanced incentive counties, as certified under KRS 154.32-050, and at least twenty percent (20%) of the annual allotment of funds to qualified companies located in Opportunity Zones, as designated by the Commonwealth and certified by the Secretary of the United States Treasury[Notwithstanding any other provision of law to the contrary, if the science and technology organization determines that, despite all best efforts, it is not practicable for a qualified company to partner with a college or university on a project for which all other requirements are met, then the requirement to partner with a college or university may be waived].

(2) The science and technology organization shall develop application criteria and an Page 253 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN application process subject to the following limitations.

CHAPTER 185 117 (d) Sufficient detail concerning proposed project partners, type and amount of work to be performed and financing to be contributed by each partner, and expected product or service with estimated costs to be reflected in the negotiated contract or agreement;

(5) Upon a qualified company's presentation of a legal agreement or contract meeting the conditions under subsection (6) of this section, the science and technology Page 254 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN organization shall present the qualified company, the project partners[partner], if any, and the college or university in the Commonwealth, if any, with a certification authorizing funding.

(7) Prior to certifying a qualified company, the science and technology organization may negotiate with the qualified company the ownership and disposition of patents, royalties, all other intellectual property rights, and an equityequity, , near equity such as a simple agreement for future agreement or "SAFE agreement", convertible debt, or similar investment format that is approved by the executive director of the Office of Entrepreneurship and Small Business Innovation[or related position] on behalf of the Kentucky Enterpriseenterprise Fundfund for the sole purpose of reinvesting and sustaining a revolving fund to carry out the provisions of KRS 164.6021 and 164.6023.

(8) The science and technology organization, upon approval by the cabinet[council], Page 255 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN shall set forth guidelines as to when and how all areas of the state will be notified about the program's availability and a program schedule, including but not limited to the following:

The fund may receive state appropriations, gifts, grants, federal funds, revolving funds, and any Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY other funds both public and private.

Any unallocated or unencumbered balances in the Page 256 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN fund shall be invested as provided in KRS 42.500(9), and any income earned from the investments along with the unallotted or unencumbered balances in the fund shall not lapse, and shall be deemed a trust and agency account and made available solely for the purposes and benefits of the Kentucky Rural Innovation Program].

(1) There is established and created in the State Treasury a fund entitled the "Kentucky Commercializationcommercialization Fund"fund" to provide seed funding for the development and commercialization of promising technologies at and emerging from colleges and universities in the Commonwealth.

(2) The Kentucky Commercializationcommercialization Fundfund shall be closed on July 1, 2021.

(a) Obtain a medical history and conduct a physical or mental health examination Page 257 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN of the patient, as appropriate to the patient's medical complaint, and document the information in the patient's medical record;

and Page 258 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 2.

CHAPTER 185 119 (3) Administrative regulations promulgated under KRS 218A.205(3) shall require that, for each patient for whom a practitioner prescribes any Schedule II controlled substance or a Schedule III controlled substance containing hydrocodone, the practitioner shall keep accurate, readily accessible, and complete medical records which include, as appropriate:

(b) A licensee prescribing or administering a controlled substance necessary to Page 259 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN treat a patient in an emergency situation;

Within ninety (90) days of an initial prescribing or dispensing under subsection (1) of this section if the prescribing or dispensing is done by another practitioner in the same practice or in an existing coverage Page 260 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN arrangement, if done for the same patient for the same medical condition;

To a research subject enrolled in a research protocol approved by an institutional review board that has an active federalwide assurance number from the United States Department of Health Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY and Human Services, Office for Human Research Protections, where the research involves single, double, or triple blind drug administration or is additionally covered by a certificate of confidentiality from the National Institutes of Health;

and Page 261 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN 3.

(b) Within one (1) working day of promulgating an administrative regulation authorizing an exemption under this section, the promulgating board shall e-e-mail mail to the Kentucky Office of Drug Control Policy:

The credit shall be nonrefundable, and shall apply against Page 262 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN the tax imposed by KRS 141.020.

CHAPTER 185 121 (6) The credit shall not apply to any liability a taxpayer may have for interest, penalties, past due taxes, or any other additions to the taxpayer's tax liability.

(9) The department shall recapture any portion, or the full amount, of a credit upon notification from the authority that a recapture is required pursuant to KRS 154.20-154.20-240. 240.

(10) In order for the General Assembly to evaluate the fulfillment of the purposes stated in KRS 154.20-232, the department and the Cabinet for Economic Development Page 263 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN shall work jointly to submit the following information to the Interim Joint Committee on Appropriations and Revenue on or before May 1, 2019, and each May 1 thereafter, related to each taxable year that an angel investor credit is claimed on a return:

(f) The number of qualified small businesses that have established a location in the Commonwealth and the number that have expanded operations, the number and location of each new job created, a description of each development of new products and technologies in the Commonwealth, and the field of operation for that growth, including knowledge-based, high-tech, or Page 264 of 265 SB016220.100 - 1237 - XXXX Engrossed UNOFFICIAL COPY 21 RS SB 162/EN research and development;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 164.6041 Limitations upon project funding in the Kentucky Commercialization Fund Program.

PageSigned 265by ofGovernor 265April SB016220.1005, -2021. 1237 - XXXX Engrossed