39A.305 West Kentucky State Aid Funding for Emergencies (WKSAFE) fund.
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(1)The West Kentucky State Aid Funding for Emergencies (WKSAFE) fund is
established and shall be:
(a)Administered by the Department of Military Affairs, Division of Emergency
Management, in accordance with this section;
(b)A separate fund to provide financial assistance for those impacted by the
December 2021 storms and tornadoes that occurred in the west Kentucky
region; and
(c)Used to provide financial support to the west Kentucky region to recover from
the devastation caused by the storms and tornadoes.
(2)The Department of Military Affairs or the Division of Emergency Management
shall not publicly advertise or solicit contributions from the general public that
could potentially impact fundraising efforts of not-for-profit disaster relief agencies.
(3)The WKSAFE fund may receive state appropriations, gifts, grants, federal funds,
and any other funds, both public and private.
(4)Moneys in the WKSAFE fund as of June 30, 2022, through June 30, 2026, shall not
lapse and shall carry forward until June 30, 2026.
(5)Any interest earnings of the WKSAFE fund shall become a part of the WKSAFE
fund and shall not lapse.
(6)Eligibility to receive financial support from the WKSAFE fund shall be limited to
a:
(a)City, county, urban-county government, consolidated local government,
unified local government, or charter county government;
(b)Nonprofit or public utility service provider;
(c)State agency;
(d)School district; or
(e)Qualified lender as defined in KRS 154.20-580;
that has disaster-related needs as a result of the devastation experienced from the
December 2021 storms and tornadoes.
(7)An eligible recipient may receive moneys for expenses to provide disaster and
recovery relief if the recipient:
(a)Is located in the areas named in a Presidential Declaration of Emergency
relating to the storms and tornadoes that occurred in December 2021; and
(b)Has disaster-related needs in response to the storms and tornadoes that
occurred in December 2021.
(8)Eligible expenses shall be those used to support disaster and recovery relief,
including but not limited to:
(a)1. Replacement or renovation of publicly owned buildings damaged by the
storms and tornadoes, but only to the extent of damage directly caused
by the storms and tornadoes; and
2. Replacement, renovation, or expansion of an essential government
facility that was used for existing services at the time of the disaster,
including police, fire, and ambulance stations, functioning above
capacity at the time of application, but only to the extent of damage
directly caused by the storms and tornadoes;
(b)Reimbursement for services, personnel, and equipment provided during the
response and recovery to communities impacted by the storms and tornadoes,
but only to the extent of damage directly caused by the storms and tornadoes;
(c)Funding to cities, counties, and publicly owned utilities for the costs of
replacement or repair of publicly owned buildings and their contents due to
the damage from the storms and tornadoes, but only to the extent of damage
directly caused by the storms and tornadoes;
(d)Assistance to cities and counties for expenses related to planning efforts for
rebuilding and recovering from the damage, but only to the extent of damage
directly caused by the storms and tornadoes;
(e)Assistance to support disaster recovery and relief needs of local school
districts, but only to the extent of damage directly caused by the storms and
tornadoes, including but not limited to:
1. Financial support for school districts that will experience a default in
bond payments; and
2. Financial support to assist school districts with building and tangible
property replacement needs;
(f)Contracted employees to administer and report on the funds; and
(g)1. Financial assistance to cities, counties, and school districts for realized
revenue losses, but only to the extent the loss is directly caused by the
storms and tornadoes, and to be determined on a quarterly basis by the:
a. State-local finance officer within the Department for Local
Government for cities and counties; and
b. Department of Education for school districts.
2. The financial assistance determined in subparagraph 1. of this paragraph
shall be limited to:
a. One hundred percent (100%) of the lost revenue in fiscal year
2022-2023;
b. Sixty-six percent (66%) of the lost revenue in fiscal year 2023-
2024; and
c. Thirty-three percent (33%) of the lost revenue in fiscal year 2024-
2025.
(a)Moneys used for the eligible expenses described in subsection (8)(a)1. or 2. of
this section shall be:
1. Issued in the form of a loan; and
2. Used to replace, renovate, or expand an essential government facility
that was used for existing services at the time of the disaster at up to one
hundred twenty percent (120%) of capacity at the time of application for
proceeds.
(b)Any loan issued under paragraph
(a)of this subsection shall contain the
following terms:
1. An interest rate of zero percent (0%);
2. A time for repayment of no longer than twenty
(20)years; and
3. A repayment structure of quarterly payments due on the thirtieth day of
March, June, September, and December of each year until the loan is
repaid.
(c)The recipient of any loan issued under paragraph
(a)of this subsection shall
report to the Department of Military Affairs, Division of Emergency
Management, on a quarterly basis:
1. The amount of any insurance proceeds received related to the
replacement, renovation, or expansion of an essential government
facility for which the loan was granted; and
2. The name and address of the insurance provider.
(d)No later than November 1, 2023, and each November 1 thereafter, the
Department of Military Affairs, Division of Emergency Management, shall
compile the information reported by each recipient under paragraph
(c)of this
subsection and report the compiled information to the Interim Joint
Committee on Appropriations and Revenue.
(10)Each recipient of moneys from the WKSAFE fund, including any agency of
Kentucky state government, shall:
(a)Timely apply for federal emergency disaster grant assistance, other financial
disaster assistance, and insurance proceeds; and
(b)Adhere to the terms of the WKSAFE fund regarding reimbursement to the
Commonwealth if funds from other sources are subsequently received after
the receipt of financial assistance from the Commonwealth.
(a)Moneys in the WKSAFE fund may be used for the advancement of moneys to
cities, counties, and nonprofit or public utility service providers experiencing
strained fiscal liquidity while awaiting reimbursement from federal
emergency management assistance or insurance claims and shall not be used
for capital improvements.
(b)Reimbursement of the advancement under paragraph
(a)of this subsection
shall:
1. Be determined by the:
a. State-local finance officer within the Department for Local
Government for cities and counties, and nonprofit or public
utilities; and
b. Department of Education for school districts; and
2. Include a quarterly accounting of the advancement released and the
outstanding balance through June 30, 2026.
(a)1. If a recipient of moneys from the WKSAFE fund subsequently receives
moneys from any other source, the recipient shall reimburse the
Commonwealth for the amount of the moneys received from the
WKSAFE fund.
2. Before July 1, 2026, all moneys reimbursed to the Commonwealth under
subparagraph 1. of this paragraph shall be deposited in the WKSAFE
fund within thirty
(30)days, and shall be continuously appropriated.
3. After June 30, 2026, all moneys reimbursed to the Commonwealth
under subparagraph 1. of this paragraph shall be deposited into the
budget reserve trust fund account established in KRS 48.705 within
thirty
(30)days.
(b)1. If a recipient receives moneys in the form of a loan under subsection
(9)(a) of this section, the recipient shall reimburse the Commonwealth
for the amount of the moneys received from the WKSAFE fund
according to the repayment structure under subsection (9)(b)3. of this
section.
2. Before July 1, 2026, all moneys reimbursed to the Commonwealth under
subparagraph 1. of this paragraph shall be deposited in the WKSAFE
fund within thirty
(30)days, and shall be continuously appropriated.
3. After June 30, 2026, all moneys reimbursed to the Commonwealth
under subparagraph 1. of this paragraph shall be deposited into the
budget reserve trust fund account established in KRS 48.705 within
thirty
(30)days.
(13)The Division of Emergency Management shall promulgate administrative
regulations to carry out this section.
(14)The following reports shall be submitted to the Senate Standing Committee on
Appropriations and Revenue and the House Standing Committee on Appropriations
and Revenue or the Interim Joint Committee on Appropriations and Revenue by the
tenth day of each month, beginning May 10, 2022, and ending July 10, 2026:
(a)A report from the Office of State Budget Director that includes:
1. The name of each recipient of moneys from the WKSAFE fund;
2. The dollar amount of moneys issued and the dates of issuance;
3. A description of how the moneys were used; and
4. A list of all requests:
a. Submitted, including the amount requested;
b. Denied, including a description of the reason for the denial; and
c. Where the amount awarded was greater than or less than the
amount requested, including a description of the reason for the
increase or decrease; and
(b)A report from the Department of Education that includes:
1. The name of each school district receiving moneys from the WKSAFE
fund;
2. The dollar amount of moneys issued and the dates of issuance;
3. A description of how the moneys were used; and
4. A list of all requests:
a. Submitted, including the amount requested;
b. Denied, including a description of the reason for the denial; and
c. Where the amount awarded was greater than or less than the
amount requested, including a description of the reason for the
increase or decrease.
(15)A report shall be submitted to the Senate Standing Committee on Appropriations
and Revenue and the House Standing Committee on Appropriations and Revenue
or the Interim Joint Committee on Appropriations and Revenue by the tenth day
following the end of each calendar quarter by the Cabinet for Economic
Development, beginning July 10, 2026, and ending when no further applications for
a loss payment may be submitted under KRS 154.20-589(7), including:
(a)The name of each qualified lender receiving a loss payment;
(b)The dollar amount of the payment received;
(c)A description of the loan terms; and
(d)An explanation regarding why the loss payment was needed.