| Last Action | 04/12/24: delivered to Secretary of State (Acts Ch. 185) |
|---|---|
| Title | AN ACT relating to public water and wastewater systems, making an appropriation therefor, and declaring an emergency. |
| Bill Documents |
Acts Chapter 185
Current/Final Introduced |
| Fiscal Impact Statements |
Fiscal Note
Additional Fiscal Impact Statements Exist |
| Bill Request Number | 1044 |
| Sponsors | J. Bray, J. Petrie, A. Bowling, J. Branscum, D. Lewis, M. Meredith |
| Summary of Enacted Version | Creates a new section of KRS Chapter 65 to define terms, to create a forbearance period of three years for a utility acquiring a public water or wastewater system with existing violations, to require the acquiring utility to correct past violations during the forbearance period, to defer fines and penalties during the forbearance period, to prioritize funding from the Kentucky Infrastructure Authority (KIA) for projects where the acquiring utility is making improvements to the acquired system, to allow for a waiver of accrued fines and penalties if all deficiencies have been corrected and the public water or wastewater system has been sold to the acquiring utility or if the utility adopts a management and operations agreement handled by a well-operated utility, to require the acquiring utility to make records available to ensure compliance after the expiration of the forbearance period, to allow the Energy and Environment Cabinet and the Public Service Commission to waive fines and penalties, collect fines and penalties, or grant a discretionary extension of the forbearance period not to exceed six months, and to prohibit an acquired water or wastewater system to which a forbearance period applied from being eligible for any additional forbearance periods; creates new sections of KRS Chapter 224A to define terms, to establish the Kentucky Water and Wastewater Assistance for Troubled or Economically Restrained Systems Program under the KIA to provide for a funding application and evaluation process for eligible public water and wastewater systems to seek funds from the General Assembly, to require the KIA to make applications available under the program, verify eligibility of proposed recipients, award funding as directed by the General Assembly, enforce compliance with funding conditions, and report quarterly to the General Assembly on the status of all funding awarded under the program, to allow the KIA board to contract or consult with third-party consultants, state agencies, or special purpose governmental entities in discharging its duties, to require that finalized funding applications be made available to the public, to allow eligible public water and wastewater systems to submit applications for regional projects, to provide for forfeiture and repayment of awarded funds, to require that the KIA board evaluate applications according to specified criteria and submit an annual report to the Legislative Research Commission containing the evaluations and scores of the proposed funding recipients and proposals for the structure of the funding to be awarded, to establish the Kentucky water and wastewater assistance for troubled or economically restrained systems fund, to provide that all moneys in the fund shall be allocated by the General Assembly for eligible projects, to provide that funding may be awarded in the form of grants, loans, no-interest loans, or forgivable loans, to require that interest rates for loans be set in the same manner as the interest rates for loans from the federally assisted wastewater and water supply resolving funds, except that the interest rates shall be one-half percent lower and shall not be below zero percent, to allow the authority to use up to one-half percent of the moneys deposited into the fund for administrative costs, to establish the emergency Kentucky water and wastewater assistance for troubled or economically restrained systems fund, to provide that moneys from the fund be dedicated for capital and non-capital expenses relating solely to restoring or avoiding imminent interruption of utility service provided by a public water or wastewater system after a statewide or local emergency has been declared, to allow the authority to require that a corrective action plan be submitted with a funding application, and to require that interest rates for loans be set in the same manner as the interest rates for loans from the federally assisted wastewater and water supply resolving funds; and amends KRS 224A.316 to require that the KIA prioritize funding for a utility acquiring a public water or wastewater system for the correction of deficiencies in the system identified in state and federal violations during the forbearance period; APPROPRIATION; EMERGENCY. |
| Summary of Original Version | Create new sections of KRS Chapter 224A to define terms; establish the Kentucky Water and Wastewater Assistance for Troubled or Economically Restrained Systems Program under the Kentucky Infrastructure Authority (KIA) to provide for a loan application and evaluation process for eligible public water and wastewater systems to seek loan funds from the General Assembly; require the KIA to make available applications under the program, verify eligibility of proposed recipients, award loans as directed by the General Assembly, enforce compliance with loan conditions, and report quarterly to the General Assembly on the status of all loans under the program; allow the Kentucky Rural Water Association (KRWA) to contract or consult with third-party consultants, state agencies, or special purpose governmental entities in discharging its duties; require finalized loan applications to be made available to the public; allow eligible public water and wastewater systems to submit applications for regional projects; provide for forfeiture and repayment of loans; require the KRWA to evaluate applications according to specified criteria and to submit an annual report to the Legislative Research Commission containing the evaluations and scores of the proposed loan recipients; establish the Kentucky water and wastewater assistance for troubled or economically restrained systems fund; provide that all moneys in the fund shall be allocated by the General Assembly for providing loans for eligible projects; require that interest rates for loans be set in the same manner as the interest rates for loans from the federally-assisted wastewater and water supply resolving funds, except that the interest rates shall be one-half of a percent lower; establish the emergency Kentucky water and wastewater assistance for troubled or economically restrained systems fund; provide that moneys from the fund be dedicated to providing loans for capital and non-capital expenses relating solely to restoring or avoiding imminent interruption of utility service provided by a public water or wastewater system after a statewide or local emergency has been declared; allow the authority to require a corrective action plan to be submitted with a loan application; require that interest rates for loans be set in the same manner as the interest rates for loans form the federally-assisted wastewater and water supply resolving funds; create a new section of KRS Chapter 96 to define terms; create a forbearance period of three years for a utility acquiring a public water or wastewater system with existing violations; require the acquiring utility to correct past violations during the forbearance period; defer fines and penalties during the forbearance period; prioritize funding from the KIA for projects where the acquiring utility is making improvements to the acquired system; allow for a waiver of accrued fines and penalties if all deficiencies have been corrected and the public water or wastewater system has been sold to the acquiring utility or if the utility adopts a management and operations agreement handled by a well-operated utility; require the acquiring utility to make records available to ensure compliance; after the expiration of the forbearance period, allow the Energy and Environment Cabinet and the Public Service Commission to either waive fines and penalties, collect fines and penalties, or grant a discretionary extension of the forbearance period; allow priority in funding from the KIA to be predicated on timely payment of deferred fines and penalties; prohibit an acquired water or wastewater systems to which a forbearance period applied from being eligible for any additional forbearance periods; amend KRS 224A.316 to remove repetitive language and to require the KIA to prioritize funding for a utility acquiring a public water or wastewater system for the correction of deficiencies in the system identified in state and federal violations; APPROPRIATION. |
| Index Headings of Original Version |
Disasters - Kentucky WWATERS emergency fund, public water and wastewater systems, establishment Loans and Credit - Kentucky WWATERS Program, public water and wastewater systems, loans, eligibility, application Public Utilities - Public water or wastewater systems, forbearance period, fines and penalties Public Works - Kentucky WWATERS Program, public water and wastewater systems, eligibility, application procedure Public Works - Public water or wastewater systems, forbearance period, correction of deficiencies Sewer Systems - Kentucky WWATERS Program, public water and wastewater systems, eligibility, application procedure Sewer Systems - Public water or wastewater systems, forbearance period, correction of deficiencies Water Supply - Kentucky WWATERS Program, public water and wastewater systems, eligibility, application procedure Water Supply - Public water or wastewater systems, forbearance period, fines and penalties Appropriations - Kentucky WWATERS fund, public water and wastewater systems, establishment Reports Mandated - Kentucky Infrastructure Authority, public water and wastewater system assistance, loans, report Reports Mandated - Kentucky Rural Water Association, public water and wastewater loan assistance, evaluation, report |
| Jump to Proposed Amendments |
House Committee Substitute 1 with Fiscal Impact Statements House Committee Amendment 1 with Fiscal Impact Statements House Floor Amendment 1 |
| Votes | Vote History |
| Governor's Veto Message | Veto |
| 02/15/24 |
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| 02/21/24 |
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| 03/05/24 |
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| 03/06/24 |
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| 03/08/24 |
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| 03/11/24 |
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| 03/12/24 |
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| 03/14/24 |
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| 03/21/24 |
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| 03/22/24 |
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| 03/25/24 |
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| 03/28/24 |
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| 04/09/24 |
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| 04/12/24 |
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| Amendment | House Committee Substitute 1 |
|---|---|
| Fiscal Impact Statement | Fiscal Note to House Committee Substitute 1 |
| Summary | Retain original provisions, except add a definition for "board"; remove references to the responsibilities of the Kentucky Rural Water Association in the administration of the WWATERS Program and replace with references to the Kentucky Infrastructure Authority board; require an eligible loan recipient to comply with any internal management and governance procedures that the authority may impose; require the authority board to hold at least monthly meetings to discharge its duties under the section; require the authority to engage in financial reviews of proposed loan recipients to ensure that they will be able to repay the requested loans; require the authority to award loan funds within 60 days of the effective date of the legislative act that authorizes and appropriates the funds; require that the authority board issue eligibility determinations and project scores within 30 days of receiving complete loan applications; remove new section of KRS Chapter 96 and create a new section of KRS Chapter 65 to replace it; restore language relating to the authority's implementation of a program to provide financial assistance to governmental agencies for capital and non-capital expenses; EMERGENCY. |
| Index Headings |
Fiscal Note - Kentucky WWATERS Program, public wastewater systems, loand, eligibility, requirements Effective Dates, Emergency - Kentucky WWATERS Program, public water and wastewater systems, loans, eligibility, application Financial Responsibility - Kentucky WWATERS Program, public wastewater systems, loans, eligibility, requirements Loans and Credit - Kentucky WWATERS Program, public wastewater systems, loan awards, timing requirements Sewer Systems - Kentucky WWATERS Program, public wastewater systems, loans, eligibility, requirements State Agencies - Kentucky Infrastructure Authority board, Kentucky WWATERS Program, administration Water Supply - Kentucky WWATERS Program, public water systems, loans, eligibility, requirements Boards and Commissions - Kentucky Infrastructure Authority board, Kentucky WWATERS Program, administration |
| Amendment | House Committee Amendment 1 |
|---|---|
| Fiscal Impact Statement | Fiscal Note to House Committee Amendment 1 |
| Sponsor | J. Bray |
| Summary | Make title amendment. |
| Index Headings | Title Amendments - HB 563 |
| Amendment | House Floor Amendment 1 |
|---|---|
| Sponsor | J. Bray |
| Summary | Replace all instances of "loan" or "loans" with "funding" or "funds" in Sections 1 and 2 of the Act; require the Kentucky Infrastructure Authority board to submit, with its evaluations and scores of proposed funding recipients, proposals for the structure and terms of the funding; allow funding from the WWATERS fund to be awarded in the form of grants, loans, no-interest loans, or forgivable loans as proposed by the board and determined by the General Assembly; provide that no interest rate for a loan awarded from the WWATERS fund be less than zero percent; allow the Kentucky Infrastructure Authority to use up to one-half of one percent of moneys deposited into the WWATERS fund for administrative expenses; provide that priority treatment for authority funding for systems acquired under Section 4 of the Act shall only apply during the forbearance period granted by that section. |
| Index Headings |
Loans and Credit - WWATERS Program, public water and wastewater systems, authorized types of funding, grants, loans Public Utilities - WWATERS Program, public water and wastewater systems, authorized types of funding, grants, loans Sewer Systems - WWATERS Program, public wastewater systems, authorized types of funding, grants, loans State Agencies - Kentucky Infrastructure Authority, WWATERS Program duties, administrative fee Water Supply - WWATERS Program, public water systems, authorized types of funding, grants, loans |
Last updated: 9/26/2024 1:37 PM (EDT)