HB 321 — AN ACT relating to revenue.

UNOFFICIALCHAPTER COPY203 211 RSCHAPTER 203 ( HB 321/EN321 ) AN ACT relating to revenue.

(c) The development area continues to be the home of thousands of African-African-Americans Americans who live and work in the Commonwealth and desire to build a better future for themselves, their families, and the generations that follow;

(f) Fifty percent (50%) of households within the development area have an annual gross income of less than twenty-five thousand one hundred thirty Page 1 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN dollars ($25,130), and individuals under the age of eighteen (18) or over the age of sixty-five (65) make up approximately thirty-eight and one-tenth percent (38.1%) of the population;

(g) In the development area, thirty-nine and six-tenths percent (39.6%) of the population lives below the federal poverty level and children make up thirty-thirty-seven seven and four-tenths percent (37.4%) of all individuals below the poverty line;

and (h) In addition to many nonprofits working in the development area to improve the quality of life of residents, African-American leaders and other Louisville community leaders and philanthropists have recently united to envision a public-private partnership to make investments promoting economic growth and the long-term wellbeingwell-being of the community, while simultaneously supporting policies to guard against displacement of residents as growth proceeds.

Page 2 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN (1) "Affiliated" means the following:

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) Members of a family, including brothers and sisters of the whole or half blood, spouse, parents, grandparents, ancestors, children, spouses of children, grandchildren, spouses of grandchildren, and other lineal descendants of an individual;

(2) "Board" means the Boardboard of the West End Opportunity Partnership;

Page 3 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN 4.

and (b) "Local tax revenues" does not mean revenues that have been pledged to support a tax increment financing project established under KRS 65.490 to Page 4 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN 65.499, 65.680 to 65.699, or 65.7041 to 65.7083 or an economic development project within the development area;

CHAPTER 203 3 (a) Local tax revenues received by a consolidated local government with respect to the development area in any calendar year beginning with the calendar year described under subsection (1) of Section 5 of this Act;

and (b) State tax revenues received by the Commonwealth with respect to the development area in any calendar year beginning with the calendar year immediately preceding the calendar years described under subsection (1) of Section 5 of this Act;Act.

and"Old (c)revenues" Old revenues shall be adjusted annually to incorporate the percentage change in the CPI.

Page 5 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN (10) "Percentage change in the CPI" means the percentage of change in CPI from one (1) year to the next based on averaging the twelve (12) consecutive months of CPI data for each of the two (2) immediately preceding calendar years and then using those two (2) averages to calculate a year-over-year percentage change;

Projects which are approved for sales tax refunds under Subchapter 20 of KRS Chapter 154 within the development area and (b) "State tax revenues" does not mean revenues that have been pledged to support a tax increment financing project established under KRS 65.490 to 65.499, 65.680 to 65.699, or 65.7041 to 65.7083 or an economic development project within the development area.

(1) The West End Opportunity Partnership is hereby created and shall be a public corporation and a public body corporate and politic, with the powers and duties Page 6 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN in its corporate name to:

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (e) Hire and maintain personnel as may be required;

Page 7 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN (n) Invest in projects that create affordable housing within the development area;

(p) Adopt and comply with KRS Chapter 45A or develop a procurement code designed to provide for the purchase of supplies, equipment, services, and construction items that provide the greatest longlong-term term benefit to the development area, the greatest integrity for the West End Opportunity Partnership, and the best service and products for the public;

and (t) Exercise any power, duties, and requirements for carrying out its corporate purposes under Sections 1 to 7 of this Act.

(a) Manage and support the revitalization of and investment in the development area, with a focus on projects supported by residents and businesses within Page 8 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN the development area;

(3) The West End Opportunity Partnership shall comply with KRS 61.800 to 61.850 and 61.870 to 81.884.61.884.

CHAPTER 203 5 (5) (a) The West End Opportunity Partnership is solely responsible for its operations.

A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO Page 9 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN READ AS FOLLOWS:

Page 10 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN c.

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

(3) After expiration of the term limits provided in subsections (1) and (2) of this section, the board shall self-perpetuate.self- perpetuate.

(4) The head of economic development for the consolidated local government, or his or her designee, and the secretary of the Cabinet for Economic Development secretary,, or his or her designee, shall be nonvoting, ex-officioex officio members of the West End Opportunity Partnership;

(7) A chair of the board shall be selected annually from its members and shall have Page 11 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN responsibility for board meeting agendas and presiding at board meetings.

(8) Members of the board shall be entitled only to reimbursement from the West End Opportunity Partnership for actual expenses incurred in the performance of their duties as a board member.members.

(10) A member of the board shall abstain from action on an official decision in which he or she has or may have a personal or private interest, or if the member is affiliated with any party conducting business with the West End Opportunity Partnership, and shall disclose the existence of that personal or private interest or affiliation in writing to the other members of the board on the same day on which the member becomes aware that the interest or affiliation exists or that an official decision may be under consideration by the board.

(11) As a prerequisite to service, each appointee to the board and each member of the West End Louisville Advisory Council established in Section 7 of this Act shall participate in a boardboard-sanctioned sanctioned training program on the topics of community and economic development, finance, equity and community engagement, gentrification, and the implications of these concepts.

(1) Notwithstanding KRS 6.945, beginning in the calendar year following the full receipt of the initial funds statutorily required to be invested by private sector investors, a consolidated local government, and the Commonwealth to the West End Opportunity Partnership and continuing for twenty (20) years, eighty Page 12 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN percent (80%) of the incremental revenues shall be pledged to the West End Opportunity Partnership by a consolidated local government and the Commonwealth.

CHAPTER 203 7 (e) Terms of default and remedies, provided that no remedy shall permit the withholding by any party to the local participation agreement of any incremental revenues pledged to the special fund if increment bonds are outstanding that are secured by a pledge of those incremental revenues;

(4) Any pledge of incremental revenues in a local participation agreement shall be superior to any other pledge of revenues for any other purpose and shall, from the activation date to the termination date set forth in the local participation agreement, supersede any statute, ordinance, or resolution regarding the Page 13 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN application or use of incremental revenues.

(4) (a) The governing body and the Department of Revenue shall have no Page 14 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN obligation to refund or otherwise return any of the incremental revenues to the taxpayer from whom the incremental revenues arose or are attributable.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (c) The total amount of state tax revenues and local tax revenues received by the West End Opportunity Partnership for the preceding biennial period categorized by each type of tax;

(d) The operating expenditures incurred by the West End Opportunity Partnership, including management fees, investment fees, legal fees, or Page 15 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN administrative fees incurred;

Page 16 of 33 XXXX Engrossed UNOFFICIAL COPY 21 RS HB 321/EN (a) Elect its own chairperson and establish other officers as needed to execute the duties of the council;

CHAPTER 203 9 2.