HB 741 — AN ACT relating to public water and wastewater systems and declaring an emergency.

UNOFFICIAL COPY 25 RS BRHB 1361741/GA AN ACT relating to public water and wastewater systems.systems and declaring an emergency.

to 7.[9.]8.[9.] of this section;

Extending financing for inadequately maintained distribution, collection, or treatment works, including service extensions to unserved or Page 1 of 8 HB074110.100 - 1361 - XXXX 2/18/20253/11/2025 3:273:43 PM JacketedGA UNOFFICIAL COPY 25 RS BRHB 1361741/GA or treatment works, including service extensions to unserved or underserved areas and the renovation of treatment works to conserve resources;

(b) Verifying the eligibility of proposed funding recipients, including but not limitedPage to2 engaging in financial reviews of proposed8 fundingHB074110.100 recipients- to1361 Page- 2 of 8 XXXX 2/18/20253/11/2025 3:273:43 PM JacketedGA UNOFFICIAL COPY 25 RS BRHB 1361741/GA limited to engaging in financial reviews of proposed funding recipients to ensure that they will be able to repay the requested amounts;

to 7.[9.]8.[9.] of this section;

Once the application process is complete and the funding application is ready for Page 3 of 8 HB074110.100 - 1361 - XXXX 3/11/2025 3:43 PM GA UNOFFICIAL COPY 25 RS HB 741/GA review, it shall be made available to the public.

Page 3 of 8 XXXX 2/18/2025 3:27 PM Jacketed UNOFFICIAL COPY 25 RS BR 1361 (c) Funding applicants wishing to engage in a regional project shall submit a single application.

(5) If a funding applicant is selected as an eligible funding recipient approved under the Kentucky (WWATERS) Program, it shallshall: comply with any reporting or other requirements deemed necessary by the authority to verify that the awarded funding goes toward an eligible project and that the funding recipient is making improvements on the performance criteria described in subsection (7)(d)1.

(a) Comply with any reporting or other requirements deemed necessary by the authority to 7.[9].verify that the awarded funding goes toward an eligible project and that the funding recipient is making improvements on the performance criteria described in subsection (7)(d)1.

ofto this8.[9]. section.

Theof eligiblethis fundingsection;[. recipient shall also comply with any internal management and governance procedures that the authority may impose in order to correct any performance deficiencies that gave rise to the need for the requested funds.

The eligible funding recipient shall also ] (b) Comply with any internal management and governance procedures that the authority may impose in order to correct any performance deficiencies that gave rise to the need for the requested funds;

and (c) Adopt best management practices as established and administered by the board, including but not limited to practices relating to:

1.

Accounting and financial planning, including with regard to asset depreciation;

2.

Rate setting;

Page 4 of 8 HB074110.100 - 1361 - XXXX 3/11/2025 3:43 PM GA UNOFFICIAL COPY 25 RS HB 741/GA 3.

Water loss reduction;

and 4.

Stormwater inflow and groundwater infiltration reduction.

or Page 4 of 8 XXXX 2/18/2025 3:27 PM Jacketed UNOFFICIAL COPY 25 RS BR 1361 3.

to 7.8.[9.] of this section.

[9.] of this section.

The median household income within the service area of the funding Page 5 of 8 HB074110.100 - 1361 - XXXX 3/11/2025 3:43 PM GA UNOFFICIAL COPY 25 RS HB 741/GA applicant is less than the Commonwealth's median household income;

The funding applicant's debt service coverage ratio, calculated by Page 5 of 8 XXXX 2/18/2025 3:27 PM Jacketed UNOFFICIAL COPY 25 RS BR 1361 dividing its annual net operating income by its annual debt payments, was less than one and one-tenth (1.1) in any three (3) of the previous five (5) years;

7.[9.]The percentage of water loss of the funding applicant's system is greater Page 6 of 8 HB074110.100 - 1361 - XXXX 3/11/2025 3:43 PM GA UNOFFICIAL COPY 25 RS HB 741/GA than thirty percent (30%);

The funding applicant can demonstrate, in the form and to the extent that the board may require, that the amount of stormwater inflow and groundwater infiltration entering the funding applicant's system seriously impairs its effectiveness;

9.

9.[10.]10. The funding applicant is willing to use the funding for regionalization, consolidation, or partnerships, consistent with the policy stated in KRS 224A.300(1);

Page 6 of 8 XXXX 2/18/2025 3:27 PM Jacketed UNOFFICIAL COPY 25 RS BR 1361 10.[11.] The funding applicant,applicant afteris receivingwilling the funding, will be able to fullyuse resolve the pendingfunding issuesfor thatregionalization, areconsolidation, theor subjectpartnerships, ofconsistent itswith application using the fundingpolicy andstated otherin fundingKRS sources,224A.300(1); if available;

and11. 11.[12.] The funding applicant's proposed project demonstrates a high level of community or regional impact potential if funding is awarded;

The funding applicant, after receiving the funding, will be able to fully resolve the pending issues that are the subject of its application using the funding and other funding sources, if available;

and 12.

The funding applicant's proposed project demonstrates a high level of community or regional impact potential if funding is awarded;

Page 7 of 8 HB074110.100 - 1361 - XXXX 3/11/2025 3:43 PM GA UNOFFICIAL COPY 25 RS HB 741/GA 1.

Trends found in feedback given to applicants who did not meet the Page 7 of 8 XXXX 2/18/2025 3:27 PM Jacketed UNOFFICIAL COPY 25 RS BR 1361 eligibility requirements for participation in the program;

XXXXSection 2/18/20252. 3:27 PM Page 8 of 8 Jacketed

Whereas it is critical to the proper administration of the Kentucky Water and Wastewater Assistance for Troubled or Economically Restrained Systems Program that changes to its eligibility criteria, application process, and funding requirements take effect for new funding applicants as soon as possible, an emergency is declared to exist, and this Act takes effect upon its passage and approval by the Governor or upon its otherwise becoming a law.

Page 8 of 8 HB074110.100 - 1361 - XXXX 3/11/2025 3:43 PM GA