300 KAR | Title 300 KAR — Tourism, Arts and Heritage Cabinet

Chapter 1 Department of Travel Development

300 KAR 1:010 Procedure for Regional Marketing and Matching Funds Program {#sec-300-kar-1-010 omnilex-key=us-ky-regs-official--title-300--300 KAR 1:010}

Section 1. of Definitions.

(1) "Designated Marketing Organization" means the organization designated by a county's fiscal court, such as Chamber of Commerce or Fiscal Court, to receive Regional Marketing and Matching funds when no Convention & Visitors Bureau or Tourism Commission exists in the county.

(2) "Number of rooms" means total number of rooms within a county or city for which transient room tax is collected from an overnight stay at the property.

(3) "Program Year" means the Regional Marketing and Matching Funds Program Year that:

(a) Runs for a fiscal year;

(b) Has one (1) application deadline of June 1; and

February 1 for projects completed July through December; and
August 1 for projects completed January through June.

(4) "Promotional project" means a project that:(a) Promotes tourism opportunities throughout one (1) of the nine (9) tourism regions designated by the Department of Tourism as a tourism region.

Section 2. Subject to the availability of funds, the Regional Marketing and Matching Funds Program shall provide financial and marketing assistance for projects that are in direct support of the promotion and marketing efforts of a tourism attraction, event, or geographic area.

Section 3. Tourism Region Committees.

(1) To qualify for regional marketing and matching funds, a tourism region shall establish a tourism region committee.

(a) Each tourist and convention commission established pursuant to KRS 91A.350 in a tourism region shall appoint a person to serve on the tourism region committee.

(b) If a tourism and convention commission has not been established pursuant to KRS 91A.350 by the local governing bodies of a county, or cities within a county, in a tourism region, the county judge executive of each county shall appoint a person to serve on the tourism region committee.

(c) Counties with multiple tourism commissions are able to have a representative from each tourism commission on the committee.

(2) A member of the tourism region committee:

(a) Shall serve a two (2) year term; and

(b) May be reappointed for successive two (2) year terms.

(3) A tourism region committee shall be incorporated as a nonprofit, nonstock corporation, pursuant to KRS 273.161 through 273.405.

(4) A tourism region committee shall:

(a) Elect a chairperson, vice chairperson, secretary, and treasurer; and

(b) Establish bylaws that shall include:

Purpose, mission, and limitations of committee;
Composition and duties of the board of directors and officers;
Procedures for election, removal of directors and officers, and filling of vacancies;
When meetings shall be held;
Quorum and voting requirements;
Financial and contractual procedures;
Preparation of annual budget and financial report; and
Procedure for amendment of bylaws.

Section 4. Tourism Regions. Nine (9) tourism regions, as specified on the Tourism Regions Map, are established, as follows:

(1) Tourism Region 1, Western Lakes and Rivers, shall consist of the following counties:

(a) Ballard;

(b) Caldwell;

(d) Carlisle;

(e) Christian;

(f) Crittenden;

(g) Fulton;

(h) Graves;

(i) Hickman;

(j) Livingston;

(k) Lyon;

(l) Marshall;

(m) McCracken;

(n) Todd; and

(o) Trigg.

(2) Tourism Region 2, Green River, shall consist of the following counties:

(a) Daviess;

(b) Hancock;

(d) Hopkins;

(e) McLean;

(f) Muhlenberg;

(g) Ohio;

(h) Union; and

(i) Webster.

(3) Tourism Region 3, Cave, shall consist of the following counties:

(a) Allen;

(b) Barren;

(d) Edmonson;

(e) Hart;

(f) Logan;

(g) Metcalfe;

(h) Monroe;

(i) Simpson; and

(j) Warren.

(4) Tourism Region 4, Louisville-Lincoln, shall consist of the following counties:

(a) Breckinridge;

(b) Bullitt;

(d) Hardin;

(e) Henry;

(f) Jefferson;

(g) Larue;

(h) Marion;

(i) Meade;

(j) Nelson;

(k) Oldham;

(l) Shelby;

(m) Spencer;

(n) Trimble; and

(o) Washington.

(5) Tourism Region 5, Southern Kentucky Lakes and Rivers, shall consist of the following counties:

(a) Adair;

(b) Casey;

(d) Cumberland;

(e) Green;

(f) McCreary;

(g) Pulaski;

(h) Russell;

(i) Taylor; and

(j) Wayne.

(6) Tourism Region 6, Northern Kentucky, shall consist of the following counties:

(a) Boone;

(b) Bracken;

(d) Carroll;

(e) Fleming;

(f) Gallatin;

(g) Grant;

(h) Kenton;

(i) Lewis;

(j) Mason;

(k) Owen;

(l) Pendleton; and

(m) Robertson.

(7) Tourism Region 7, Bluegrass, shall consist of the following counties:

(a) Anderson;

(b) Bourbon;

(d) Clark;

(e) Fayette;

(f) Franklin;

(g) Garrard;

(h) Harrison;

(i) Jessamine;

(j) Lincoln;

(k) Madison;

(l) Mercer;

(m) Nicholas;

(n) Scott; and

(o) Woodford.

(8) Tourism Region 8, Eastern Highlands-North, shall consist of the following counties:

(a) Bath;

(b) Boyd;

(d) Elliott;

(e) Floyd;

(f) Greenup;

(g) Johnson;

(h) Lawrence;

(i) Magoffin;

(j) Martin;

(k) Menifee;

(l) Montgomery;

(m) Morgan;

(n) Pike; and

(o) Rowan.

(9) Tourism Region 9, Eastern Highlands-South, shall consist of the following counties:

(a) Bell;

(b) Breathitt;

(d) Estill;

(e) Harlan;

(f) Jackson;

(g) Knott;

(h) Knox;

(i) Laurel;

(j) Lee;

(k) Leslie;

(l) Letcher;

(m) Owsley;

(n) Perry;

(o) Powell;

(p) Rockcastle;

(q) Whitley; and

(r) Wolfe.

Section 5. Regional Marketing and Matching Funds Program Application and Applicants.

(1) An application may be submitted by an organization that is a tourism region, a convention and visitors' bureau, a tourism commission, or a designated marketing organization that is a nonprofit 501C(3) or 501C(6) tourism entity prior to June 1 for eligible:

(a) Projects that are listed and will be completed during the program year;

(b) Expenses totaling at least $1,000 for a project, or several projects;

(d) Meet the eligibility requirements of this administrative regulation; and

(e) Complete and submit the Affidavit for Bidders, Offerors, and Contractors.

(2) An applicant shall submit proof of nonprofit status with the application.

(3) A local tourism commission shall submit a copy of the ordinance establishing the commission and one (1) of the following:

(a) Federal or State determination of tax exempt status;

(b) A copy of the organization's W9; or

(c) A letter from the fiscal court, including the fiscal court's Federal ID number, stating the applying organization is part of city or county government.

(4) A newly established Tourist Commission shall:

(a) Not be eligible for funding for two (2) years;

(b) Have at least a part-time paid director;

(d) Have an established budget and marketing plan.

(5) An applicant shall not be affiliated with:

(a) A state agency;

(b) A state agency nonprofit affiliate;

(d) An organization that receives funds from other state agencies for the purpose of sponsorship or advertising;

(e) An organization that receives line item funding through the Executive Budget;

(f) A statewide organization; or

(g) An organization that receives state or federal grants in order to match the Regional Marketing and Matching Funds Program.

(6) An applicant shall be a Kentucky based organization.

Section 6. Approval of Applications.

(1) The state program manager shall review each application and determine the applicant's eligibility for reimbursement in accordance with applicable Kentucky Revised Statutes and this administrative regulation;

(2) The state program manager or assistant program manager shall hold allocation meetings in each of the nine (9) tourism regions with the tourism region committee for the region to:

(a) Discuss the Regional Marketing and Matching Funds Program;

(b) Review and establish priorities for the region;

(d) Review and discuss the tourism region application if submitted.

(3) The state program manager shall base the allocation determination on:

(a) A formula derived from county economic impact figures and number of rooms within the county; and

(b) The availability of funds.

(4) The state program manager shall mail each applicant:

(a) A Project Agreement form stating the amount of the state funds allocation for the program year; or

(b) A letter stating why an applicant's projects have been denied funding; and

(5) An applicant shall sign and return the Project Agreement form to the state program manager by the dates mandated in Section 1 of this administrative regulation.

Section 7. Reimbursement Percentages and Requirements.

(1) Convention and visitor bureaus, tourism commissions, and designated marketing organizations shall be eligible to receive funding.

(2) Multiple tourism commissions within a county and distribution of funds.

(a) After the county allocation has been determined, a formula calculating the number of rooms located within its city will be used to determine individual tourist commission funding.

(b) If there is less than twenty-five (25) percent of rooms within a city the tourism commission will automatically be eligible for twenty-five (25) percent of the allotment.

(3) Reimbursement Percentage of eligible cost for Kentucky Department of Tourism cooperative opportunities.

(a) Up to ninety (90) percent of the costs of an eligible co-op project may be available.

(b) Up to seventy-five (75) percent of the cost with participation with selected vendor outside of co-ops may be available.

(4) Reimbursement percentage of eligible cost for promotional projects other than cooperative opportunities.

(a) Up to eighty (80) percent of the costs for promotional projects may be available to a tourism region.

(b) Up to fifty (50) percent of the costs of an eligible promotional project may be available to all applicants not specified in paragraph (a) of this subsection.

(5) Convention sponsorship or a bid fee that guarantees room nights within the state may be reimbursed up to eighty (80) percent of the cost.

(6) A new event that has been brought to the state through a sponsorship or bid fee may be reimbursed up to seventy (70) percent of the cost. Recurring events may be reimbursed up to fifty (50) percent of the cost.

(7) Applicants shall be eligible for reimbursement for expenditures that do not exceed the amount allocated by the Regional Marketing and Matching Funds Program.

(8) Requests for reimbursement shall not be made unless:

(a) At least $1,000 has been expended; or

Applicant's original estimated expenses fall under $1,000 within a program year and can be submitted to utilize an applicant's allotment; or
Applicant has submitted reimbursements through program year and remaining amount available was under $1,000.

(b) Projects were included on the application or amendments had prior approval from program manager;

(d) Projects have been completed.

(9) A request for reimbursement shall be made on the Reimbursement Request form which shall:

(a) Be submitted to the state program manager by February 1 or August 1, with applicants being permitted to submit multiple reimbursement requests for completed projects by these same final reimbursement deadlines;

(b) Be signed; and

(10) Checks submitted as documentation shall be issued by the organization that applied for regional marketing and matching funds.

(11) The following information shall be attached to the Reimbursement Request form:

(a) A copy of each vendor's invoice;

(b) A copy of the front and back of each canceled check;

(d) For tourism region projects:

Proof of payment of twenty (20) percent of expenditures;
Proof of payment of the remaining eighty (80) percent of expenditures shall be submitted after receipt of marketing and matching funds; and
Completion of Regional Ad Sale form, if ads were sold in the region visitor's guide.

(e) Four (4) completed brochures;

(f) Four (4) publications or videos, a copy of invoices, with a breakdown of layout and design costs, the number of copies printed, and other related expenses;

(g) If printing costs exceed $1,000, a copy of three (3) written bids;

(h) One (1) duplicate of a completed video, CD, or DVD;

(i) One (1) original tear sheet of advertisements as they appeared in the print media including date of issue;

(j) One (1) typed transcript or a tape of a radio, television, or videotape, CD, or DVD travelogue advertisement;

(k) A copy of a press kit;

(l) Documentation of the distance of media from the event, attraction, or area promoted;

(m) One (1) photograph of a completed billboard and signage rentals;

(n) Documentation of the location and dates of service for billboard and signage rentals;

(o) Documentation of location, distribution routes, and dates for distribution services;

(p) Documentation of postage expenses, including postage invoices or paid receipts, list of names, addresses, and material mailed (for regional committees only);

(q) Verification of attendance at consumer travel shows or group tour marketplaces, including signed agreements or contracts; and

(r) Verification of regional travel show or group tour marketplace per diem, including a completed and signed Tourism Region Per Diem reimbursement form.

Section 8. Types of Promotional Projects.

(1) The types of promotional projects eligible for funding shall be:

(a) Tourism publications, CDs, DVDs, and videos;

(b) Media advertisements and press kits;

(d) Brochure distribution services;

(e) Postage and freight expenses (only available to regional committee);

(f) Meeting and convention advertising expenses;

(g) Group tour marketplace, meeting and conventions, and consumer travel show expenses;

(h) Sponsorship or a bid fee of tourism trade shows, conventions, sporting events and other events;

(i) Web site design; and

(j) Research studies and analysis.

(2) Other projects not listed above may be considered on a case by case basis if they are consistent with the purpose of the Regional Marketing and Matching Funds Program.

Section 9. Requirements for Tourism Publications, CDs, DVDs, Video Projects, Allowable Costs, and Bid Requirements.

(1) Types of travel related brochures, CDs, DVDs, and videos that highlight the attractions, facilities, meeting and convention, sports-marketing capabilities, and special events that encourage travelers to stop and visit, shall be eligible for reimbursement and include:

(a) Visitor's guides;

(b) General festival brochures;

(d) Sports Publications;

(e) Meeting or convention publications; and

(f) Brochures, videos, CDs, and DVDs promoting tourist attractions open to the public for regular hours.

(2) Costs that exceed the advertising revenue shall be eligible for reimbursement if the expenditures were for brochures or other publications.

(3) Brochures, other publications, and videos shall include:

(a) A four (4) color cover, if applicable, and a distribution plan, in accordance with the distribution sources of Section 10 of this administrative regulation, to receive reimbursement for print items;

(b) On the front or back cover the Kentucky state official tourism brand, according to the Graphics Standards, obtained from the Kentucky Department of Tourism; and A tag line stating: "Paid in Part by the Kentucky Department of Tourism".

(4) An advertisement may be sold to a business and included in a tourism region brochure to supplement the cost of a tourism region brochure if the ratio of advertising to editorial space does not exceed 2:3.

(5) Printing or publications shall:

(a) Require three (3) written bids if the total printing cost of a publication, excluding layout and design expenses, exceeds $1,000.

(b) Not require bids for reprints made with only minor changes.

(c) Require that a publication, video, CD, or DVD be submitted to the program manager for review and approval, prior to completion.

(6) The Department of Tourism reserves the right to deny reimbursement for any brochure submitted that does not follow guidelines. Questions regarding layout, design, or necessity will be reviewed by the Department of Tourism for final approval or denial.

(7) Only one (1) visitors guide per county is eligible unless there are multiple convention and visitors bureau offices within the county; and if so, one (1) guide per office is eligible. If more than one (1) attraction or festival brochure is requested for reimbursement, the applicant shall give an explanation as to why individual brochures are needed.

Section 10. Distribution Plan and Services. Funds available for brochure distribution expenses. A distribution plan shall be developed for the distribution of brochures to potential tourists with the following distribution sources:

(1) Tourist Commissions;

(2) State and local welcome centers;

(3) State Travel Department;

(4) Consumer travel shows;

(5) Meeting planning expos;

(6) Marketplaces; and

(7) Brochure distribution rack services.

Section 11. Advertisements and Press Kits.

(1) A tourism advertisement may be placed:

(a) In a newspaper, magazine, or other periodical;

(b) On the radio or television;

(d) On electronic media such as the Internet;

(e) On sports media; or

(f) With meeting or convention media outlets.

(2) Except for advertisements in conjunction with a Department of Tourism co-op, tourism advertisements shall include the official state advertising brand according to the Graphic Standards established by the Kentucky Department of Tourism.

(3) Costs for tourism advertisements, including media time, production costs, and placement, may be eligible for reimbursement.

(4) Major media markets and reimbursement percentages.

(a) Advertisement costs will qualify if the advertisement is located within a fifty (50) mile radius of a major media market. The reimbursement may be up to twenty-five (25) percent of media costs.

(b) Major media markets shall be:

Cincinnati, Ohio;
Evansville, Indiana;
Huntington, West Virginia;
Louisville, Kentucky;
Lexington, Kentucky;
Paducah, Kentucky; and
Bowling Green, Kentucky.

(c) Except as provided by this subsection, advertising costs with non-major media markets located within a fifty (50) mile radius shall not be eligible for reimbursement.

(d) Advertisement costs shall not be eligible for reimbursement if incurred for advertisements that are sponsored or advertised by tourism organizations in tourism region brochures that have been allocated state marketing and matching funds or funded through other cooperative advertising programs of the Kentucky Department of Tourism.

(e) Costs associated with media press kits and media relations programs shall be reimbursable.

Section 12. Billboards and Signage.

(1) Rental of a billboard, tourist-oriented directional signage (TODS), fifth legends or attraction logos, including related artwork, design, and production costs shall be eligible for reimbursement if it:

(a) Promotes specific attractions, events, availability of food, lodging, camping or other services;

(b) Is placed on interstates or other major access highways outside a twenty (20) mile radius; and

(2) A photo of the billboard shall be submitted with reimbursement request.

(3) The Department of Tourism brand shall be included on billboards.

(4) Cost associated with construction of any permanent signage structure is not reimbursable.

(5) Only new signs shall be eligible for reimbursement; previously existing signs or maintenance of signs shall not be eligible for reimbursement.

Section 13. Postage and Freight. Only region committees can be reimbursed for postage, freight, and mailing firm fees incurred in:

(1) Response to tourist requests, media or group tour operator inquiries; or

(2) Shipping tourism literature and displays for use at consumer travel shows, group tour marketplaces, or sports-marketing expenses.

Section 14.

(1) Consumer travel show, group tour marketplace, meeting or convention trade show, sports marketing, or exposition expenses shall qualify if they:

(a) Are promoting an attraction, event, or geographic area;

(b) Are not a county fair or festival;

(d) Are not registration expenses to attend a conference or meeting.

(e) Are expended for the purchase and maintenance of exhibits such as display assembly, artwork, transparencies, photographs, brochure racks, consumer travel show, or group tour marketplace booth space, or furniture rental; or

(f) Are rental fees for equipment and material.

(2) If membership is required to participate in advertising or promotional ventures, a tourism region shall be eligible for reimbursement of membership dues for major tourism associations.

(3) A tourism region shall be eligible for a seventy (70) dollar per diem, for a maximum of two (2) persons who serve as staff for tourism region travel booths at a consumer travel show or group tour marketplace if:

(a) Booths are staffed continuously during event hours; and

(b) The header, transparencies, photos, and regional or local tourism brochures are representative of the tourism region or local areas within the tourism region.

(c) Transportation costs related to a tourism region's attendance at a consumer travel show or group tour marketplace shall not be eligible for reimbursement.

Section 15. Web site.

(1) Region committees are eligible to claim reimbursement for the expenses of design, hosting, and maintenance of a regional tourism website.

(2) Applicants are eligible to claim reimbursement for the expenses for the design of tourism related websites.

(3) An applicant's home page shall include the current state tourism branding with a link to the Department of Tourism Web site and regional website.

(4) Except for regional committees, Web sites that contain paid advertisements shall not be eligible for reimbursement.

Section 16. Sponsorship or bid Fees of Tourism Trade Shows, Conventions, and Other Events.

(1) Sponsorship of tourism trade shows, conferences, and events are eligible for reimbursement if:

(a) The sponsorship opportunity may create an economic impact for the state;

(b) The sponsorship is for overall convention partners or a total event sponsor;

(d) The sponsorship is for a meal function or educational sessions at a trade show or convention.

(2) Expenditures that shall not be covered include:

(a) In-kind amenities;

(b) Expenses for hospitality events that include alcohol;

(d) Tourism industry events such as:

Kentucky Tourism Council; and
Kentucky Association of Convention & Visitor Bureaus;

(e) In-state or local events and conferences; and

(f) Kentucky Association meetings and conferences.

(3) Convention sponsorship or bid fee reimbursement percentages. A sponsorship or bid fee that guarantees room nights within the state may be reimbursed up to eighty (80) percent of costs.

(4) Event sponsorship or bid fee reimbursement percentages:

(a) A new event or sporting event that is brought to the state through a sponsorship or bid fee may be reimbursed up to seventy (70) percent of the cost; and

(b) Recurring events brought to the state through a sponsorship or bid fee may be reimbursed up to fifty (50) percent of the cost.

Section 17. Research.

(1) Marketing and matching funds may be used for research and analysis. Use of funds for these purposes shall have a clear relationship to planning and executing tourism marketing and promotion.

(2) Economic impact research and research related to future capital projects shall not be allowed..

(3) To be engaged in research and analysis activity, outside firms, organizations, or individuals shall:

(a) Be in operation at least two (2) years, if a firm or organization;

(b) Have at least five (5) years of relevant experience, if an individual;

(d) Demonstrate expertise in the type of services to be rendered.

(4) Research funded pursuant to this Section shall be approved in advance.

Section 18. Ineligible Project and Expenses. Expenses for the following items shall not be eligible for reimbursement:

(1) Industrial incentive brochures;

(2) General community relocation and development brochures;

(3) City or county maps or directories that list businesses and services;

(4) Programs;

(5) Playbills;

(6) Posters;

(7) Table tents;

(8) Membership and subscription solicitation;

(9) Registration and entry forms;

(10) Event and contest category or regulation material;

(11) Quick print materials such as flyers, handbills, and circulars;

(12) Entertainment;

(13) Bumper stickers, banners, flags, postcards, lapel pins, or bags, unless requested in advance by a tourism region;

(14) Prizes, trophies, plaques, decorations, paint supplies, and poster board;

(15) Items for resale;

(16) Amounts paid for Kentucky sales tax;

(17) Stationery, letterhead, envelopes, general office supplies and materials, unless for a tourism region organization;

(18) Salaries or other compensation for the staff or personnel of a tourism region committee;

(19) General operating and administrative costs;

(20) Finance charges or late payment fees;

(21) In-kind contributions, which also shall not be included as part of an applicant's match; and

(22) Expenditures in violation of law.

Section 19. Forfeited and Unused Funds.

(1) Funds allocated to an approved project shall be forfeited if:

(a) Documentation required by the provisions of this administrative regulation is not submitted timely;

(b) An approved project does not materialize; or

(2) At the end of a Regional Marketing and Matching Funds Program year, forfeited and unused funds shall remain in the Tourism, Meeting, and Convention Fund, to be used by the Department of Tourism for advertising and marketing promotions.

Section 20. Audits. The department may request the State Auditor to audit a tourism project governed by this administrative regulation.

Section 21. Incorporation by Reference.

(1) The following material is incorporated by reference:

(a) "Regional Marketing and Matching Funds Program Application", December 2019;

(b) "Application Project Description Form", August 2019;

(d) Reimbursement Project Description Form", August 2019;

(e) "Regional Ad Sale Form", one (1) page, August 2019;

(f) "Tourism Region Per Diem Reimbursement Form", August 2019; and

(g) "Tourism Regions Map", 1996; and

(h) "Designated Marketing Organization", August 2019.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, from the Department of Tourism, Division of Tourism Services, 500 Mero Street, 5th Floor, Frankfort Kentucky 40601, phone (502) 564-4930, fax (502) 564-5695, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available at the Department of Tourism's Web site at www.kytourism.com/industry/mfunds.

History

RELATES TO: KRS 91A.350, 142.406, 148.522, 148.525, 273.161-273.405
STATUTORY AUTHORITY: KRS 148.525(2), (3)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 148.525(2) requires the Division of Marketing and Advertising to be responsible for the state matching fund tourism advertising program. KRS 148.525(3) authorizes the Commissioner of the Department of Tourism to promulgate administrative regulations to promote, develop, and support the tourism industry in Kentucky. This administrative regulation establishes uniform and consistent administration of the application, participation, and reimbursement requirements of the Regional Marketing and Matching Funds Program.
History: 22 Ky.R. 635; 1828; eff. 4-5-1996; 34 Ky.R. 357; 717; 11-2-2007; Crt eff. 2-12-2020; 46 Ky.R. 1294; 2038; eff. 4-1-2020; TAm eff. 4-2-2021.

300 KAR 1:021 Process for the distribution of tourism recovery and investment funds appropriated by the General Assembly in the 2022 Regular Session from the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021 {#sec-300-kar-1-021 omnilex-key=us-ky-regs-official--title-300--300 KAR 1:021}

Section 1. Definitions.

(1) "Cabinet" means the Kentucky Tourism, Arts and Heritage Cabinet.

(2) "Department" means the Kentucky Department of Tourism.

(3) A "tourism commission" means an organization defined as tourism and convention commission under KRS 91A.350, et. seq., and defined as a designated marketing organization or tourism region committee pursuant to 300 KAR 1:010.

(4) "State Fiscal Recovery Fund of the American Rescue Plan Act of 2021 (SLFRF)" means the federal funding available as part of the Coronavirus State and Local Fiscal Recovery Fund established under the American Rescue Plan Act (ARPA), Public Law 117-2 (March 11, 2021), as implemented by the Final Rule issued by the U.S. Department of Treasury in 31 C.F.R. Part 35.

(5) "Tourism Marketing Incentive Program" means the Regional Marketing and Matching Funds Program in KRS 91A.390 and 300 KAR 1:010.

(6) "Recipient" means a grantee, tourism commission, or other entity eligible to receive funds from the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021, as appropriated by the General Assembly in the 2022 Regular Session.

(7) "Program Year" means fiscal year 2022-2023 and fiscal year 2023-2024. Funding allocations shall be split between the two (2) fiscal years unless a recipient requests and receives approval to receive the allocation all in one (1) fiscal year.

(8) "Tranche 1 funding" means the $15,000,000 appropriated by the General Assembly in Acts Chapter 199 (RS 2022 HB 1) L.1.(3)(a) in fiscal year 2021-2022 from the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021 for marketing and promoting tourism in Kentucky.

(9) "Tranche 2 funding" means the $25,000,000 appropriated by the General Assembly in Acts Chapter 199 (RS 2022 HB 1) L.1.(3)(b) in fiscal year 2021-2022 from the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021 for marketing communities in Kentucky.

(10) "Tranche 3 funding" means the $25,000,000 appropriated by the General Assembly in Acts Chapter 199 (RS 2022 HB 1) L.1.(3)(c) in fiscal year 2021-2022 from the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021 for attracting meetings and conventions in Kentucky.

(11) "Tranche 4 funding" means the $10,000,000 appropriated by the General Assembly in Acts Chapter 199 (RS 2022 HB 1) L.1.(3)(d) in fiscal year 2021-2022 from the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021 for multi-jurisdiction collaborative destination marketing in Kentucky.

(12) "Matching funds" means monies received from a funding source other than federal funds.

Section 2. As soon as the funding is available pursuant to the American Rescue Plan Act of 2021, the Kentucky Department of Tourism shall develop and administer the process for distributing tourism recovery and investment funds appropriated by the General Assembly in the 2022 Regular Session from the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021 to eligible recipients.

Section 3. Eligibility. Eligibility for allocations of federal funds available as part of the Coronavirus State and Local Fiscal Recovery Fund established under the American Rescue Plan Act shall depend upon which tranche of money a recipient qualifies for in accordance with the parameters set forth in this administrative regulation.

(1) To qualify for Tranche 1 funding, a grant recipient shall be eligible for consideration if it markets and promotes Kentucky as a travel destination.

(2) To qualify for Tranche 2 funding, a grant recipient shall be eligible for consideration if it is a tourism commission who markets communities and provides ten (10) percent or more in Matching funds per application and amount awarded.

(3) To qualify for Tranche 3 funding, a grant recipient shall be eligible for consideration if it is a tourism commission whose counties include arenas, conference centers, or other meeting venues with a minimum of 5,000 square feet or outdoor spaces used for sporting events, if it provides a plan for recruiting and attracting meetings and conventions.

(4) To qualify for Tranche 4 funding for the competitive grant program, a grant recipient shall be eligible for consideration if at least five (5) tourism commissions, through a designated primary grantee, submit a marketing plan and budget for multi-jurisdiction collaborative destination marketing and can provide at least ten (10) percent in matching funds per project.

Section 4. Applications.

(1) Applications submitted by tourism commissions shall be subject to the following schedule for submission:

(a) Tranche 2 funding applications open on August 1, 2022, and shall be received by September 30, 2022;

(b) Tranche 3 funding applications open on August 8, 2022, and shall be received by October 7, 2022; and

(d) If additional funding remains following this first round of funding, then a second round of applications shall issue in FY 2023-2024 pursuant to a schedule that shall be posted on the department's Web site.

(2) Applications for funds appropriated in Tranches 2, 3, and 4 shall include:

(a) Documentation to establish the entity qualifies as a tourism commission (proof of non-profit status, letter from fiscal court that organization is part of city or county government, or ordinance establishing commission);

(b) A W-9 (showing Federal ID number and entity name);

(c) Documentation to demonstrate that the tourism commission was in business before the COVID-19 pandemic on March 6, 2020, and show the economic impact of the COVID-19 pandemic to be eligible to receive recovery and investment funds;

(d) Evidence that applicant is a Kentucky based organization such as proof of registration with the Kentucky Secretary of State or as a Special Purpose Governmental Entity through the Department of Local Government; and

(e) Complete Affidavit for Bidders, Offerors and Contractors.

(3) Applications for Tranche 2 and 4 funding shall also include a notarized copy of each applicant's most recent fiscal year budget approved by the applicable governing body identifying the funds being used for the ten (10) percent or more in Matching funds.

(4) Applications for Tranche 2 funding shall describe how the funds will be used to market communities.

(a) Eligible expenses for Tranche 2 funding shall include:

Tourism publications and videos;
Media advertisements if fifty (50) miles from destination;
Press kits;
New billboards and signage if twenty (20) miles from destination;
Brochure distribution services;
Meeting and convention advertising expenses;
Group tour marketplace, meeting and conventions, and consumer travel show expenses;
Sponsorship or a bid fee of tourism trade shows, conventions, sporting events, and other events;
Web site design excluding hosting;
Research studies and analysis;
Photography;
Content that is paid to a business for advertising purposes;
Influencers' assistance with social media; and
Other expenses if consistent with the purpose of the Regional Marketing and Matching Funds Program.

(b) Ineligible expenses for Tranche 2 funding shall include:

Billboards and signage that does not consist solely of language welcoming a visitor to a community or region;
Costs associated with construction of any permanent signage structure;
Previously existing signs or maintenance of signs;
Postage and freight;
Booth space or expenses for county fair or festivals;
Booth space or registration expenses at industrial solicitation events;
Expenses to attend a conference or meeting without promoting your destination unless expenses are for professional development or hospitality training;
Web sites that contain paid advertisements;
Sponsorship or bid fees of tourism trade shows, conventions, and other events;
Expenditures for in-kind amenities or hospitality events that include alcohol, gratuities, service charges, and tips;
Tourism industry events involving Kentucky Tourism Industry Association, Kentucky Association of Convention & Visitor Bureaus, in-state or local events and conferences, and Kentucky association meetings and conferences;
Research related to future capital projects;
Industrial incentive brochures;
General community relocation and development brochures;
City or county maps or directories that list businesses and services;
Programs, playbills, posters, table tents;
Membership and subscription solicitations;
Registration and entry forms;
Event and contest category or regulation material;
Quick print materials such as flyers, handbills, and circulars;
Entertainment;
Bumper stickers, banners, flags, postcards, lapel pins, or bags;
Prizes, trophies, plaques, decorations, paint supplies, and poster board;
Items for resale;
Amounts paid for Kentucky sales tax;
Stationery, letterhead, envelopes, general office supplies and materials;
Salaries or other compensation for the staff or personnel of a tourism commission;
General operating and administrative costs;
Finance charges or late payment fees;
In-kind contributions, which also shall not be included as part of an applicant's match;
Expenditures in violation of law; and
Other expenses deemed ineligible by the Department if inconsistent with the Regional Marketing and Matching Funds Program.

(5) Applications for Tranche 3 funding shall specify:

(a) The counties within the tourism commission's jurisdictions that include arenas, conference centers, or other meeting venues with a minimum of 5,000 square feet or outdoor spaces used for sporting events; and

(b) How the funds shall be used to attract professionally organized meetings, conventions, conferences, exhibitions, expositions, and trade shows that involve:

New events not held in the destination or venue for at least three (3) years;
Multi-day events contracted on or after July 1, 2022;
Competitive bidding of events; and
Attendees from outside the area (100 miles or more).

(c) How the funds shall be used to attract amateur and professional competitive sporting events or tournaments that involve:

New events not held in the destination or venue for at least three (3) years;
Multi-day events contracted on or after July 1, 2022;
Competitive bidding of the event;
Athletes from outside the area (100 miles or more); and
A minimum size of the event of 100 or more athletes and coaches.

(d) For outdoor spaces used for sporting events, grant applications shall be event specific and not related to the overall square footage used.

(e) Local festivals, in-state association meetings that rotate on an annual basis, weddings, fraternal events (unless a national conference), social events, and motor coach or group tours (unless a national conference) shall not be eligible for Tranche 3 funding.

(f) Eligible expenses for the Tranche 3 funding shall include:

Marketing and advertising such as video, print, digital, sponsorships, on-site events, and other expenses related to promoting the destination as a meeting or conference destination;
Underwriting incentives for offsetting event expenses such as venue or room rental, transportation costs during events, audio visual rental and services, discount on food and beverage, pipe, drape, tables, and chairs;
Per room night confirmed incentives for selection;
New research and consultants to build sales strategies;
Familiarization trips for meeting planners or board meetings with intent to host larger event;
Sales missions for recruiting meetings or conventions;
New third party lead generation fees;
Refundable bid or RFP fees tied to hosting industry events and conferences;
Retention incentives due to increased costs (specifically six (6) percent sales tax on meeting room rentals) for events already contracted but occurring after July 1, 2022; and
Other expenses deemed eligible by the Department if consistent with the funding mandate of the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021.

(g) Ineligible expenses for the Tranche 3 funding shall include:

Funds used to replace an organization's tourism funding commitment for existing budgets, marketing, or staffing;
Non-refundable bid or RFP fees;
Renovations or building permanent structures at facility for event;
Expenses from an event that was contracted prior to December 7, 2021;
General operating or administrative expenses such as travel reimbursement and salaries;
Purchase of permanent equipment;
Purchase of alcohol for meetings, events, sponsorships, or related functions;
Hiring of permanent or temporary staff;
Purchase or production of promotional items; and
Other expenses deemed ineligible by the department if inconsistent with the funding mandate of the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021.

(6) Applications for Tranche 4 funding shall specify:

(a) The identity of the designated primary grantee, who shall be the point of contact for plan and post-plan reporting, and at least four (4) tourist commissions applying for the grants;

(b) A multi-county marketing plan and budget that shows how the plan shall assist in recovery from the pandemic, with priority given to initiatives that have the potential for long-term transformational impacts;

(d) Eligible expenses for the Tranche 4 funding shall include:

Tourism publications and videos;
Media advertisements if fifty (50) miles from destination;
Press kits;
New billboards and signage if twenty (20) miles from destination;
Brochure distribution services;
Meeting and convention advertising expenses;
Group tour marketplace, meeting and conventions, and consumer travel show expenses;
Sponsorship or a bid fee of tourism trade shows, conventions, sporting events, and other events;
Web site design excluding hosting;
Research studies and analysis;
Photography;
Content that is paid to a business for advertising purposes;
Influencers' assistance with social media; and
Other expenses deemed eligible by the department if consistent with the funding mandate of the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021.

(e) Ineligible expenses for the Tranche 4 funding shall include:

Billboards and signage that does not consist solely of language welcoming a visitor to a community or region;
Costs associated with construction of any permanent signage structure;
Previously existing signs or maintenance of signs;
Postage and freight;
Booth space or expenses for county fair or festivals;
Booth space or registration expenses at industrial solicitation events;
Expenses to attend a conference or meeting without promoting your destination unless expenses are for professional development or hospitality training;
Web sites that contain paid advertisements;
Sponsorship or bid fees of tourism trade shows, conventions, and other events;
Expenditures for in-kind amenities or hospitality events that include alcohol, gratuities, service charges, and tips;
Tourism industry events involving Kentucky Tourism Industry Association, Kentucky Association of Convention & Visitor Bureaus, in-state or local events and conferences, and Kentucky association meetings and conferences;
Research related to future capital projects;
Industrial incentive brochures;
General community relocation and development brochures;
City or county maps or directories that list businesses and services;
Programs, playbills, posters, table tents;
Membership and subscription solicitations;
Registration and entry forms;
Event and contest category or regulation material;
Quick print materials such as flyers, handbills, and circulars;
Entertainment;
Bumper stickers, banners, flags, postcards, lapel pins, or bags;
Prizes, trophies, plaques, decorations, paint supplies, and poster board;
Items for resale;
Amounts paid for Kentucky sales tax;
Stationery, letterhead, envelopes, general office supplies and materials;
Salaries or other compensation for the staff or personnel of a tourism commission;
General operating and administrative costs;
Finance charges or late payment fees;
In-kind contributions, which also shall not be included as part of an applicant's match;
Expenditures in violation of law; and
Other expenses deemed ineligible by the Department if inconsistent with the funding mandate of the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021.

Section 5. Approval of Applications.

(1) With respect to the Tranche 2 funding, the Commissioner of Tourism shall administer the grant program by reviewing each application and determining the applicant's eligibility for funding. Applicant's funding amount shall be determined by the formula for each county's share of economic impact based on the department's 2019 Economic Impact of Tourism in Kentucky study conducted by Tourism Economics.

(2) With respect to Tranche 3 funding, the Commissioner of Tourism shall administer the grant program by reviewing each application and determining the applicant's eligibility for funding. Eligible tourism commissions shall be awarded grants up to a maximum amount according to the following:

(a) 125,000 square feet and above up to a maximum $5 million;

(b) 75,000 to 124,999 square feet up to a maximum $3 million;

(d) 15,000 to 34,999 square feet up to a maximum $500,000;

(e) 10,000 to 14,999 square feet up to a maximum $200,000;

(f) 5,000 to 9,999 square feet up to a maximum of $100,000; or

(g) For outdoor spaces used for sporting events, up to a maximum of $100,000 per event.

(3) With respect to Tranche 4 funding, the Commissioner of Tourism shall develop and administer a competitive grant program that oversees a review committee comprised of state employees within the cabinet. The review committee shall utilize a categorical scoring method that considers:

(a) The plan's ability to attract new visitors to Kentucky;

(b) The plan's ability to assist in recovery from the COVID-19 pandemic;

(d) The measurable economic impact to Kentucky;

(e) The applicants' ability to execute and provide required reporting; and

(f) New projects that demonstrate a level of creativity.

(4) Notification of all grant awards shall be provided to each grantee or applicant by letter and then memorialized by a "Memorandum of Agreement" stating the amount and terms of the funding grant, which the grantee or applicant shall sign and return to the Kentucky Department of Tourism; or by a letter stating why an applicant's projects have been denied funding.

(5) All projects receiving funds from Tranche 1, 2, and 4 shall be completed on or before December 31, 2024. Projects receiving funds from Tranche 3 shall be obligated by December 31, 2024 and the funds fully expended by December 31, 2026.

Section 6. Reporting. Recipients shall provide a report to the Department of Tourism and the Legislative Research Commission detailing expenditures and outcomes including return on investment for affected areas by September 1 of each year. The reports shall be in a format designed to allow the Commonwealth of Kentucky to comply with the U.S. Treasury's SLFRF Compliance and Reporting Guidance (treasury.gov), incorporated by reference herein.

Section 7. Forfeited and Unused Funds.

(1) Funds allocated to an approved project shall be forfeited if:

(a) Documentation required by the provisions of this administrative regulation is not submitted timely;

(b) An approved project does not materialize; or

(2) Funds used in violation of the program may be subject to remediation and recoupment. The Department of Tourism may identify funds used in violation through reporting or other sources. Recipients shall be provided with an initial written notice of recoupment and an opportunity to submit a request for reconsideration before the Department of Tourism provides a final notice of recoupment. If the recipient receives an initial notice of recoupment and does not submit a request for reconsideration, the initial notice shall be deemed the final notice. The Department of Tourism may pursue other forms of remediation and monitoring in conjunction with, or as an alternative to, recoupment.

(3) At the end of a program year, funds that are forfeited, subject to recoupment, or unused shall be available for additional rounds of application funding if obligated by December 31, 2024 and if spent by December 31, 2026.

Section 8. Audits. The department may request the State Auditor to audit a tourism project governed by this administrative regulation.

Section 9. Incorporation by Reference.

(1) The following material is incorporated by reference:

(a) U.S. Department of Treasury Final Rule for Coronavirus State and Local Fiscal Recovery Funds, 31 C.F.R. Part 35 (effective April 1, 2022);

(b) U.S. Department of Treasury Compliance and Reporting Guidance for the SLFRF Program (June 17, 2022);

(c) Kentucky Dept of Tourism/Tourism Recovery and Investment ARPA Application - Tranche 2 Application – tourism commissions (July 2022);

(d) Kentucky Dept of Tourism/Tourism Recovery and Investment ARPA Application - Tranche 3 Application – Meetings and Conventions (July 2022);

(e) Kentucky Dept of Tourism/Tourism Recovery and Investment ARPA Application - Tranche 4 Application – Multi-County (July 2022);

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, from the Department of Tourism, 500 Mero Street, 5th Floor, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available at the Department of Tourism's Web site at kentuckytourism.com/arpa; or For Tranche 2 Grant (DMO) (502)892-3217 or TAH.KDTARPADMO@KY.GOV; Tranche 3 Grant (Meetings & Conventions) (502)892-3229 or TAH.KDTARPAMEET@KY.GOV; Tranche 4 Grant (Multi County) (502)892-3231 or TAH.KDTARPAMULTICO@KY.GOV.

History

RELATES TO: KRS 91A.350, 148.522, 148.525, Ky Acts Ch. 199 (RS 2022 HB 1)
STATUTORY AUTHORITY: KRS 148.525(3)
NECESSITY, FUNCTION, AND CONFORMITY: The Executive Branch Budget for the 2022-2024 biennium appropriates to the Tourism, Arts and Heritage Cabinet under the budget unit Office of the Secretary a total of $75,000,000 in fiscal year 2021-2022 from the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021. KRS 148.522 provides that the Kentucky Department of Tourism, within the Tourism, Arts and Heritage Cabinet, shall have the authority and responsibility for the promotion, development, and support services for the tourism industry within the Commonwealth. KRS 148.525(3) authorizes the Commissioner of the Department of Tourism to promulgate administrative regulations to carry out the provisions of KRS 148.522. This administrative regulation establishes a uniform and consistent process for the distribution of the tourism recovery and investment funds appropriated by the General Assembly in the 2022 Regular Session from the State Fiscal Recovery Fund of the American Rescue Plan Act of 2021.
History: 49 Ky.R. 950, 1414; eff. 4-4-2023.

Chapter 2 Office of the Secretary

300 KAR 2:010 Kentucky Tourism Development Act Sales Tax Credit Program {#sec-300-kar-2-010 omnilex-key=us-ky-regs-official--title-300--300 KAR 2:010}

Section 1. Definitions.

(1) "Agreement" is defined in KRS 148.851(1).

(2) "Authority" is defined in KRS 148.851(4).

(3) "Eligible company" is defined in KRS 148.851(6).

(4) "Inducements" is defined in KRS 148.851(9).

(5) "Preliminary approval" is defined in KRS 148.851(10).

(6) "Tourism attraction project" is defined in KRS 148.851(14).

Section 2. Eligibility Standards. When submitting a written request to the authority for consideration of preliminary approval of the eligible company and its tourism attraction project, the secretary of the Tourism Cabinet shall base the request upon the information in the application and any written or oral communications with the eligible company.

Section 3. Kentucky Tourism Development Act Sales Tax Credit Program Application.

(1) An eligible company wishing to participate in the Kentucky Tourism Development Act Sales Tax Credit Program shall file three (3) copies of an application with the secretary of the Tourism Cabinet.

(2) The following information and materials shall be submitted as a part of the application:

(a) Eligible company name, address, phone and telefax numbers, contact person and federal employer tax identification number;

(b) Location of tourism attraction project;

(d) Previous participation of eligible company in Kentucky tax incentive programs;

(e) Ownership of eligible company;

(f) Bankruptcy history of eligible company;

(g) Governmental denial, suspension or revocation of licenses of eligible company;

(h) Attorney for eligible company, including address, phone and telefax numbers;

(i) Contact person of bank for eligible company, including address, phone and telefax numbers and contact person;

(j) Accountant for eligible company, including address, phone and telefax numbers;

(k) Tourism attraction project description;

(l) Eligible company ownership or leasing of tourism attraction project;

(m) Estimated tourism attraction project costs;

(n) Proposed sources of financing tourism attraction project;

(o) Contractor for tourism attraction project, including address, phone and telefax numbers and contact person;

(p) The total number of jobs projected upon completion of and within two (2) years after completion of the tourism attraction project;

(q) Five (5) year history of attendance at tourism attraction project for an expansion;

(r) Five (5) year attendance projections for tourism attraction project;

(s) Months of the year during which the tourism attraction project is open;

(t) Marketing plans and media type to be used for the tourism attraction project, including five (5) year proposed advertising budget;

(u) Value of Kentucky tangible property before and after completion of the tourism attraction project;

(v) Ten (10) year estimate of tourism attraction project payroll;

(w) Estimated federal and state income tax liability of eligible company for first three (3) fiscal years of the eligible company after commencement of operations of the tourism attraction project;

(x) If the tourism attraction project is an expansion, federal and state income tax liability of eligible company for the past three (3) fiscal years;

(y) Ten (10) year estimated revenue of eligible company subject to Kentucky sales tax from the tourism attraction project;

(z) Ten (10) year estimated additional revenue the tourism attraction project will generate to the community; and

(aa) A completed Cabinet for Economic Development Economic Incentive Disclosure Statement as required by 307 KAR 2:020, Section 2.

Section 4. Written Recommendation. The secretary of the Tourism Cabinet shall provide its recommendation required by 1996 Ky. Act ch. 335, sec. 3 based upon:

(1) The eligible company's satisfaction of the statutory requirements of 1996 Ky. Act ch. 335, sec. 1 to 7;

(2) The findings of the consultant's report required by 1996 Ky. Act ch. 335, sec. 3; and

(3) The application submitted to the secretary under Section 3(2) of this administrative regulation, and written and oral communications with the eligible company.

Section 5. Incorporation by Reference.

(1) The "Application for the Kentucky Tourism Development Act Sales Tax Credit Program (9/96)" is incorporated by reference.

(2) A copy of the form of application may be inspected, copied or obtained at the office of the Tourism Cabinet, 24th Floor, Capital Plaza Tower, 500 Mero Street, Frankfort, Kentucky, between 8 a.m. and 4:30 p.m., Monday through Friday.

History

RELATES TO: KRS 139.536, 148.850, 148.851, 148.853, 148.855, 148.857, 148.859, 148.860
STATUTORY AUTHORITY: KRS 148.855(1)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 148.855(1) requires the Tourism Cabinet to establish standards for the making of an application for inducements and the recommendation to the Kentucky Economic Development Finance Authority of an eligible company and its tourism attraction project pursuant to the Kentucky Tourism Development Act Sales Tax Credit Program. This administrative regulation establishes these standards.
History: 23 Ky.R. 1810; Am. 2459; eff. 12-11-96; Crt eff. 2-12-2020.

300 KAR 2:020 Tourism Development Loan Program; criteria for making and collecting loans {#sec-300-kar-2-020 omnilex-key=us-ky-regs-official--title-300--300 KAR 2:020}

Section 1. Definitions. As used in this administrative regulation, the following terms have the following meanings:

(1) "Authority" means the Tourism Development Finance Authority.

(2) "Cash match basis" means the amount of investment by the borrower from equity or other loan sources, which is equal to or greater than the amount borrowed through the program.

(3) "Fixed costs" are costs incurred in acquiring, constructing, reconstructing, rehabilitating, renovating, enlarging, improving, equipping, maintaining, or furnishing the tourism project, including site clearance and preparation.

(4) "Fund" means the loan fund authorized for the Tourism Development Loan Program by KRS 148.850(4).

Section 2. Criteria. The following criteria shall be utilized by the authority in evaluating and making loans under the Tourism Development Loan Program:

(1) Fixed asset lending shall be made to qualified businesses, on a cash match basis;

(2) A first, co-first, or second secured position on fixed asset collateral in favor of the authority is required of all loans;

(3) Prior to final approval of any loan to be provided, and as a condition precedent thereto, the authority shall determine that the benefits to be derived by the Commonwealth and the local economic area from the establishment and operation of the eligible project shall exceed the cost of providing such assistance; and

(4) The project proposed to be financed shall be economically feasible, as determined by the authority.

Section 3. Considerations. The authority shall consider and take into consideration, inter alia, the following:

(1) Payrolls, and the taxes generated, at both state and local levels, by the eligible project and taxes generated by the employment and economic activity created or preserved by the eligible project;

(2) The size, nature, and cost of the eligible project, including the prospect of the eligible project for attracting and retaining visitors to the Commonwealth;

(3) The needs (and degree of needs) of the area in which the eligible project is to be located;

(4) The financial needs of the applicant;

(5) The amount of any kind of assistance, if any, to be provided to any applicant by other government agencies through tax exemption or abatement, financing assistance with industrial development bonds, and otherwise, with respect to the eligible project;

(6) The amount of capital made available to the eligible project by other lenders and by the owners of the eligible project; and

(7) The number of projected new visitors, in the context of the size of the loan being made, attributable to the tourism project.

Section 4. Eligibility Standards. The authority, subject to the other applicable provisions of this administrative regulation, shall make loans only from monies in the fund. Program loans shall be made if the authority determines that:

(1) The project is an eligible project and is economically sound;

(2) The amount to be loaned from the fund shall not exceed fifty (50) percent of the total fixed costs of the eligible project;

(3) The amount of the loan from the fund to be repaid shall be adequately secured by a mortgage, lien, assignment, or pledge, at such level of priority as the authority may require;

(4) The determinations of the authority shall be conclusive for purposes of the validity of a loan commitment evidenced by an agreement of the authority;

(5) Rates of interest, times of payment of interest and principal, and other terms, conditions and provisions of, and security for, program loans made from the fund pursuant to this section shall be such as the authority determines to be appropriate and in furtherance of the purpose for which the loans are made. Repayments of loans shall conform to the requirements of the loan contract; and

(6) The authority is authorized to take action established in the loan contract as may be necessary to collect on the loan.

History

RELATES TO: KRS 148.850, 148.851, 148.853, 148.855, 148.857, 148.859, 148.860
STATUTORY AUTHORITY: KRS 148.850(4)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 148.850(4) requires the Secretary of Tourism to establish criteria for the disbursement and collection of funds appropriated to the Tourism Development Loan Program. This administrative regulation establishes those criteria.
History: 27 Ky.R. 1663; Am. 2126; eff. 2-15-2001; Crt eff. 2-12-2020.

300 KAR 2:030 Kentucky Tourism Development Act {#sec-300-kar-2-030 omnilex-key=us-ky-regs-official--title-300--300 KAR 2:030}

Section 1. Definitions. Definitions for terms used in this administrative regulation are contained in KRS 148.851.

Section 2. Preliminary Approval Standards. The authority shall grant preliminary approval to an eligible company and its tourism attraction project based upon:

(1) The information contained in the written request submitted to the authority by the secretary of the Tourism Development Cabinet;

(2) The application submitted to the Tourism Development Cabinet for a tourism attraction project in accordance with 300 KAR 2:010, Section 3; and

(3) A completed Tourism Development Cabinet Economic Incentive Disclosure Statement filed with the secretary of the Tourism Development Cabinet as part of the application in accordance with 300 KAR 2:010, Section 3.

Section 3. Final Approval Standards. The authority shall grant final approval to an eligible company and its tourism attraction project based upon:

(1) The information contained in the written request submitted to the authority by the secretary of the Tourism Development Cabinet;

(2) The application submitted to the Tourism Development Cabinet for a tourism attraction project in accordance with 300 KAR 2:010, Section 3;

(3) The written recommendation of the secretary of the Tourism Development Cabinet in accordance with 300 KAR 2:010, Section 4; and

(4) The written report of the consulting firm engaged by the Secretary of the Tourism Development Cabinet which evaluates the eligible company's tourism attraction project.

Section 4. Agreement Contents. As part of an agreement, the authority may require the approved company to:

(1) Grant access of its records to the authority;

(2) Submit annual, quarterly, or monthly progress reports to the authority; and

(3) Submit annual, quarterly, or monthly financial reports to the authority.

Section 5. Incorporation by Reference.

(1) "Tourism Development Cabinet Economic Incentive Disclosure Statement", 4/01, is incorporated by reference.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Tourism Development Cabinet, 24th Floor, Capital Plaza Tower, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.

History

RELATES TO: KRS 11A.233, 148.850, 148.851, 148.853, 148.855, 148.857, 148.859, 148.860
STATUTORY AUTHORITY: KRS 148.857
NECESSITY, FUNCTION, AND CONFORMITY: KRS 148.857 requires the authority to establish standards for preliminary approval and final approval of an eligible company and its tourism attraction project for inducements granted pursuant to the Kentucky Tourism Development Act Sales Tax Credit Program. This administrative regulation establishes such standards.
History: 27 Ky.R. 3466; Am. 28 Ky.R. 352; eff. 8-15-2001; Crt eff. 2-12-2020.

300 KAR 2:040 Kentucky film industry incentives application and fees {#sec-300-kar-2-040 omnilex-key=us-ky-regs-official--title-300--300 KAR 2:040}

Section 1. Definitions.

(1) "Application" means the Kentucky Film Office Film Production Company Refundable Tax Credit Application.

(2) "Authority" means the Kentucky Tourism Development Finance Authority.

(3) "Eligible company" is defined by KRS 148.542(10).

(4) "Motion Picture or Entertainment Production" is defined by KRS 148.542(14).

(5) "Office" is defined by KRS 148.542(16).

Section 2. Application.

(1) An eligible company wishing to receive incentives for filming a motion picture or entertainment production in the Commonwealth shall file three (3) copies of the application with the office at least thirty (30) days prior to incurring any expenditure.

(2) In addition to the information included in the application as set forth in KRS 148.546, an eligible company shall promptly submit any supporting documentation or information requested by the Office.

Section 3. Recommendation. Prior to making a recommendation on whether to enter into a tax incentive agreement with the eligible company to the Authority, the office shall fully consider:

(1) The eligible company's ability to meet the expenditure requirements of KRS 148.544(3);

(2) The written application submitted by the eligible company; and

(3) All other supplemental information submitted by the eligible company.

Section 4. Agreement.

(1) Upon recommendation of the Film Office, the Authority may authorize by resolution the execution of a tax incentive agreement which shall include the provisions required by KRS 148.546(4).

(2) Upon execution of the agreement, the eligible company shall submit the greater of:

(a) $500; or

(b) One-half (0.5) percent of the estimated amount of tax incentive sought.

(3) If the eligible company wishes to increase the amount of qualified expenditures, the eligible company:

(a) Shall apply for the increase at least thirty (30) days prior to spending any amounts for which an incentive is sought;

(b) Shall not be eligible for amounts spent in excess of the initial total of approved expenditures prior to the execution of an amended agreement; and

$500; or
One-half (0.5) percent of the estimated amount of increased tax incentive sought.

Section 5. Incorporation by Reference.

(1) The "Kentucky Film Office Film Production Company Refundable Tax Credit Application", 07/09, is incorporated by reference.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the office of the Tourism Cabinet, 24th Floor, Capital Plaza Tower, 500 Mero Street, Frankfort, Kentucky, Monday through Friday, 8 a.m. to 4:30 p.m.

History

RELATES TO: KRS 148.544
STATUTORY AUTHORITY: KRS 148.546
NECESSITY, FUNCTION, AND CONFORMITY: KRS 148.546 requires the Film Office within the Tourism, Arts and Heritage Cabinet to establish standards for the making of an application for incentives and to set forth the fees for application for incentives. This administrative regulation establishes these standards.
History: 37 Ky.R. 962; eff. 11-5-2010; Crt eff. 2-12-2020.

Chapter 5 Kentucky Historical Society

300 KAR 5:010 Museum unclaimed property {#sec-300-kar-5-010 omnilex-key=us-ky-regs-official--title-300--300 KAR 5:010}

Section 1. Definitions.

(1) "Conservation measures" means stabilization of an object or specimen that is in the possession of the museum according to the conservation and restoration guidelines established by the ICOM Code of Ethics.

(2) "ICOM" means International Council of Museums.

(3) "KHS" means Kentucky Historical Society.

(4) "Publication" or "publicize" means notification to the public in an effort to locate the owner of unclaimed property in either print or electronic online format in accordance with KRS 171.840(2)(c).

(5) "Unclaimed Property" means a tangible object in the custody of the museum that:

(a) Has intrinsic historical, artistic, scientific, or cultural value; and

(b) Whose owner is unknown or has failed to claim the object.

Section 2. Notice of Intent to Gain Title to Property. A museum shall attempt to provide the following notice to the owner of property on loan or property otherwise held by the museum if it intends to gain title to the property in accordance with KRS 171.836:

(1) Notice of Intent to Gain Title to Property, Form #1; or

(2) A notice developed by the museum which meets the requirements of KRS 171.840.

Section 3. Written Assertion of Title to Property. A person who has received a Notice of Intent to Gain Title to Property form or other written notice compliant with KRS 171.840 shall file the following with the museum to assert title to the property on loan or property otherwise held by the museum in accordance with KRS 171.843:

(1) Written Assertion of Title to Property, Form #2; or

(2) A written assertion of title developed by the person which:

(a) Describes the property in detail;

(b) Describes the person's interest in the property;

(d) Includes a sworn statement that the information presented is true and complete to the best of the person's knowledge.

Section 4. Kentucky Historical Society.

(1) KHS shall maintain and post on the KHS Web site the following public information relating to the handling and conservation of unclaimed museum property:

(a) A copy of or electronic link to KRS 171.830 through KRS 171.849;

(b) A copy of or electronic link to 300 KAR 5:010; and

(2) KHS shall publicize attempts by museums statewide to gain clear title to unclaimed property on the KHS Web site.

(3) Museums shall mail or email the KHS Registrar a written request to publicize the museum's attempts to gain title to unclaimed property and:

(a) A copy of the Notice of Intent to Gain Title to Property form; or

(b) A copy of the newspaper notification demonstrating the museum has followed the steps as outlined in KRS 171.840(2)(c).

(4) KHS shall post within ten (10) business days unclaimed property information submitted by a museum for a minimum of two (2) consecutive weeks on the KHS Web site.

Section 5. Conservation. Kentucky museums shall use conservation measures for property on loan to the museum.

Section 6. Incorporation by Reference.

(1) The following material is incorporated by reference:

(a) "International Council of Museums (ICOM) Code of Ethics", 2006;

(b) "Notice of Intent to Gain Title to Property", Form #1, 2013; and

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at Kentucky Historical Society, 100 West Broadway, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.

History

RELATES TO: KRS 171.830 - 171.849
STATUTORY AUTHORITY: KRS 171.849
NECESSITY, FUNCTION, AND CONFORMITY: KRS 171.849 requires the Kentucky Historical Society to promulgate administrative regulations relating to property on loan to museums in Kentucky. This administrative regulation establishes procedures for museums to follow to acquire title of unclaimed property in the museums' possession.
History: 39 Ky.R. 1821; eff. 5-31-2013; Crt eff. 2-12-2020.

Chapter 6 Kentucky Heritage Council

300 KAR 6:011 Historic rehabilitation tax credit certifications {#sec-300-kar-6-011 omnilex-key=us-ky-regs-official--title-300--300 KAR 6:011}

Section 1. Definitions.

(1) "Act" means the enabling legislation for the historic rehabilitation tax credit, KRS 171.396 through 171.397.

(2) "Adjusted basis of the structure" means the purchase price of the property, minus the cost of land, plus improvements already made, minus allowable depreciation.

(3) "Certified historic structure" is defined by KRS 171.396(1).

(4) "Certified rehabilitation" is defined by KRS 171.396(2).

(5) "Certified rehabilitation credit cap" is defined by KRS 171.396(3).

(6) "Complete and adequately documented" means the applicant has provided all elements established in the Part 1, 2, 3 or KHC Form TC-4, fee payment, adequate photo documentation prior to rehabilitation and documentation of any subsequent changes by current owner, photo key, maps, and related architectural renderings or construction documents.

(7) "Completed rehabilitation project" means any certified historic structure that has been substantially rehabilitated and, after the completion date, has been submitted by the applicant to the council for final certification of rehabilitation under the Act.

(8) "Completion date" means:

(a) For owner-occupied residential property, the month, date, and year in which the last eligible rehabilitation expense is incurred; or

(b) For all other property, the month, date, and year in which the rehabilitation project is completed to allow occupancy of the entire building or some identifiable portion of the building and, if applicable, a certificate of occupancy has been issued.

(9) "Department" means the Kentucky Department of Revenue.

(10) "Director" means the executive director of the Kentucky Heritage Council.

(11) "Disqualifying work" is defined by KRS 171.396(5).

(12) "Exempt entity" is defined by KRS 171.396(6).

(13) "File" or "filed" means physical receipt by the council of an application for certification along with the tender of the appropriate review fee.

(14) "Final amount of credit approved" means the individual credit awarded for certified rehabilitation to an owner of a certified historic structure as determined pursuant to KRS 171.3961 or KRS 171.397, whichever is applicable, upon filing of the Certificate of Rehabilitation-Part 3 and upon approval by the council.

(15) "Inspection" means a visit by the director or an authorized representative of the council to a property for the purposes of reviewing and evaluating the significance of the structure and the ongoing or completed rehabilitation work.

(16) "Meaningful consultation" means the opportunity to consult with a historic building owner prior to the removal of historic fabric or work that does not meet the Secretary of the Interior's Standards for Rehabilitation as established in Section 4(2) of this administrative regulation.

(17) "National Register of Historic Places" means the National Register of districts, sites, buildings, structures, and objects significant in American history, architecture, archeology, engineering, and culture that the U. S. Secretary of the Interior is authorized to expand and maintain pursuant to Section 101(a)(1) of the National Historic Preservation Act of 1966, 54 U.S.C. 300101, and implemented through 36 C.F.R. Part 800.

(18) "Owner" means:

(a) The person, partnership, corporation, public agency, or other entity holding a fee simple interest in a property, or any other person or entity recognized by the department for purposes of the applicable tax benefit under KRS 171.397 or KRS 171.3961, whichever is applicable; or

(b) A lessee, if the remaining term of the lease is not less than twenty-seven and one-half (27 1/2) years for residential property or thirty-nine (39) years for all other property.

(19) "Owner-occupied residential property" is defined by KRS 171.396(8).

(20) "Preliminary tax credit allocation" means the maximum individual credit available for certified rehabilitation to an owner of a certified historic structure as determined pursuant to KRS 171.397, on April 29 of the year in which the Certificate of Rehabilitation-Parts 1 and 2 are filed and approved by the council.

(21) "Property" means a building and its site and landscape features.

(22) "Qualified rehabilitation expense" is defined by KRS 171.396(9).

(23) "Rehabilitation" means the process of returning a building or buildings to a state of utility, through repair or alteration, which makes possible an efficient use while preserving those portions and features of the building and its site and environment that are significant to its historic, architectural, or cultural values.

(24) "Rehabilitation plan" means a plan pursuant to which a certified historic structure will be substantially rehabilitated.

(25) "Rehabilitation project" means any certified historic structure, submitted by the applicant to the council, for certifications of rehabilitation under the Act.

(26) "Standards for rehabilitation" mean the Secretary of the Interior's Standards for Rehabilitation, 36 C.F.R. 67.7, as established by the U. S. Department of Interior and restated in Section 4(2) of this administrative regulation.

(27) "Starting date" means the date upon which the applicant applies for the building permit for work proposed by the rehabilitation plan or the date upon which actual physical work contemplated by the plan of rehabilitation begins.

(28) "Substantial rehabilitation" is defined by KRS 171.396(10).

(29) "Taxpayer" is defined by KRS 171.396(11).

Section 2. Certifications of Rehabilitation.

(1) For tax credits under KRS 171.3961, a request for certification of historic significance and of rehabilitation under the Act shall be a five (5) stage process that requires the filing of the:

(a) Certification Application-Intent to Apply for Major Certified Rehabilitation;

(b) Certification Application Part 1-Evaluation of National Register Status;

(d) Certification Application Part 3-Request for Certification of Completed Work; and

(e) Summary of Investment and Election of Credit.

(2) For tax credits under KRS 171.397, a request for certification of historic significance and of rehabilitation under the Act shall be a four (4) stage process that requires the filing of the:

(a) Certification Application Part 1-Evaluation of National Register Status;

(b) Certification Application Part 2-Description of Rehabilitation;

(d) Certification Application-Summary of Investment and Election of Credit.

(3) Intent to Apply for Expanded Credit shall be a request for certification of an applicant's intent to claim a tax credit established by KRS 171.3961 for a proposed rehabilitation project.

(4) Part 1 shall be a request for certification of historic significance.

(5) Part 2 shall be a request for certification of a proposed rehabilitation project.

(6) Part 3 shall be a request for certification of a completed rehabilitation project.

(7) Summary of Investment and Election of Credit shall be actual cost, square footage, and use attributed to the rehabilitation work and an irrevocable election by the taxpayer to receive a refundable credit or transfer the credit.

(8) Certification of applications shall be filed with the council as established in paragraphs (a) through (c) of this subsection.

(a)

Part 1 and Part 2 shall be filed with the council on or before April 29 for a preliminary determination of maximum credit eligibility for a credit under KRS 171.397.
Part 1, Part 2, and Intent to Apply for Expanded Credit shall be filed with the council on or before June 30, 2015, for a credit under KRS 171.3961.

(b)

Part 1 and Part 2 may be filed after rehabilitation has commenced, but an applicant who begins rehabilitation prior to receiving Part 2 certification shall assume the risk that certification may be denied.
If rehabilitation has commenced prior to receiving Part 2 certification, the applicant shall check a corresponding box on the Part 2 form that may prompt an inspection by council staff to determine level of completeness.
If it is determined that demolition or rehabilitation has progressed beyond the point at which "meaningful consultation" can be carried out, the council shall notify the applicant within thirty (30) days of inspection that a foreclosure on the agency's opportunity to comment on the rehabilitation plan has occurred and the application is closed.
Application or review fees that have been paid shall be refunded.
A taxpayer may appeal a determination of foreclosure.

a. An appeal shall be submitted by filing an appeal in writing within thirty (30) days of notification to the council board.

b. The council board shall either confirm the determination or reverse the determination based on compliance with this administrative regulation, with instructions to return the application to council staff for standard processing and review.

c. The council shall decide the appeal and shall notify the taxpayer of the decision in writing within thirty (30) days from the date the appeal is considered at the regularly scheduled council meeting if a quorum is present.

(c) Part 3 and Summary of Investment and Election of Credit shall be filed with the council after the completion date of a completed rehabilitation project for a final determination of credit.

(9) If at any stage an application is not approved by the council, the rehabilitation project shall not qualify as a certified rehabilitation for purposes of the Act.

Section 3. Certifications of Historic Significance-Part 1.

(1) Application. The Certification Application Part 1-Evaluation of National Register Status form shall be filed with the council for certification of historic significance.

(a) Property individually listed in the National Register of Historic Places. Individually listed property shall be considered a certified historic structure for purposes of the Act subject to confirmation by the council based of compliance with the requirements established in this administrative regulation. The following information shall be provided by the applicant:

Names and mailing addresses of owners;
Name and address of property;
Photographic documentation of the building and property prior to and after alteration, showing exterior and interior features and spaces to ensure that the listed property has not lost the characteristics that caused it to be listed on the National Register of Historic Places;
Descriptions of all the buildings within the listing if the property contains more than one (1) building for the purpose of determining which of the buildings are of historic significance to the property;
Brief description of appearance including alterations, distinctive features and spaces, and dates of construction;
Brief statement of significance summarizing how the property reflects the values that give its distinctive historical and visual character, and explaining any significance attached to the property itself;
A copy of a map indicating where the subject property is located. If an individually-listed property is also located in a historic district listed in the National Register of Historic Places, a copy of the map of the National Register historic district where the subject property is located and a clear delineation of the property's location within the district shall also be included; and
Signatures of owners requesting confirmation of listing in the National Register of Historic Places or concurring in the request if the owners are not the applicants.

(b) Property located in a historic district listed in the National Register of Historic Places. If the property is located in historic district listed in the National Register of Historic Places, an applicant shall request that the property be certified by the council as a historic structure contributing to the significance of a historic district and provide the:

Names and mailing addresses of owners;
Name and address of property;
Name of historic district;
Photographic documentation of the building and property prior to and after alteration, showing exterior and interior features and spaces, and photographic documentation of adjacent properties and structures on the street showing significance to the historic district;
Brief description of appearance including alterations, distinctive features and spaces, and dates of construction;
Brief statement of significance summarizing how the property reflects the values that give the district its distinctive historical and visual character, and explaining any significance attached to the property itself;
A copy of the map of the National Register historic district where the subject property is located and a clear delineation of the property's location within the district; and
Signatures of owners requesting certification or concurring in the request if the owners are not the applicants.

(2) Multiple structures. A property containing more than one (1) building shall be treated as a single certified historic structure if the council determines that the buildings have been functionally related historically to serve an overall purpose, whether the property is individually listed in the National Register or is located within a registered historic district. Buildings that are functionally related historically shall be those that have functioned together to serve an overall purpose during the property's period of significance.

(3) Standards for evaluating significance.

(a) In addition to the existing National Register documentation, an application for certification of historic significance shall contain documentation with information about the significance of the specific buildings and structures.

(b) A property located within a historic district listed in the National Register of Historic Places shall be evaluated for contribution to the historic significance of the district by applying the standards established in subparagraphs 1. through 3. of this paragraph.

A property contributing to the historic significance of a district shall be a property that by location, design, setting, materials, workmanship, concept, and association adds to the district's sense of time and place and historical development.
A property not contributing to the historic significance of a district shall be a property that does not add to the district's sense of time and place and historical development; or a property in which the location design, setting, materials, workmanship, concept and association have been so altered or have so deteriorated that the overall integrity of the property has been irretrievably lost.
If the building was built within the past fifty (50) years, it shall not be considered to contribute to the significance of a district, unless a strong justification concerning its historical or architectural merit is given or the historical attributes of the district are considered to be less than fifty (50) years old.

(c) An evaluation of historic significance shall be made based upon the appearance and condition of the property before rehabilitation was begun.

(d) The qualities of a property and its environment that qualify it as a certified historic structure shall be determined taking into account all available information, including information derived from the physical and architectural attributes of the building, and shall not be limited to information contained in the National Register nomination reports.

(e) If a nonhistoric surface material obscures a façade, it may be necessary to remove the surface materials prior to requesting certification so that a determination of significance can be made. After the material has been removed, if the obscured façade has retained substantial historic integrity and the property otherwise contributes to the historic district, it shall be determined to be a certified historic structure.

(4) Review of Part 1 Applications.

(a) A complete and adequately-documented Certification Application Part 1-Evaluation of National Register Status form shall be reviewed by the council to determine if the property contributes to the historic significance of the district by applying the standards established in subsection (3) of this section.

(b) After consideration of the information contained in the application and other available information, the council shall approve the application if:

The property meets the standards for evaluating for significance established in subsection (3) of this section; or
The director confirms that the property is individually listed in the National Register of Historic Places.

(5)

(a) If the application is not adequate to complete the review, the council shall attempt to notify the applicant by mail, telephone, or e-mail using the contact information provided on the application.

(b) The applicant's failure to respond shall result in the application being closed.

(c) The council's notification or failure to notify shall not constitute a waiver of a deficiency or an alteration of a time limitation established under the Act.

(6) An applicant shall notify the council of any substantial damage, alteration, or changes to a property that occurs after issuance of a Certification of Part 1-Evaluation of National Register Status. The council may, upon thirty (30) days written notice to the applicant, withdraw a certification of historic significance and may seek to have the property removed from the National Register under 36 C.F.R. 800.

Section 4. Certifications of Rehabilitation-Part 2.

(1) Applications.

(a) A Certificate of Application Part 2-Description of Rehabilitation form shall be filed with the council for certification that a rehabilitation plan is a substantial rehabilitation and meets the standards for rehabilitation established in subsection (2) of this section.

(b) A rehabilitation project shall be done according to a rehabilitation plan.

(c) The burden shall be upon the applicant to supply sufficient information to the council for a determination that the rehabilitation plan is a substantial rehabilitation and meets the standards for rehabilitation established in subsection (2) of this section.

(d) An application shall include the:

Names and mailing addresses of owners;
Name and address of property;
Designation of whether the application is for owner-occupied residential property or other property;
Information sufficient to establish the proposed use of the structure;
Adjusted basis for the property if other than owner-occupied residential or owned by an exempt entity;
Proposed starting date and completion date;
Projected qualified rehabilitation expenses;
Numbered photographs adequate to document the appearance of the structure, both on the interior and exterior, and its site and environment before rehabilitation that correspond to numbered positions on existing plans;
Taxpayer identification number or Social Security number;
Written detailed description of existing features and their conditions, and a written description of proposed rehabilitation work and the impact on existing features;
Plans for any attached, adjacent, or related new construction, if applicable; and
Signatures of owners requesting certification or concurring in the request if the owners are not the applicant.

(2) Standards for rehabilitation.

(a) The standards for rehabilitation shall be the criteria used to determine if the rehabilitation qualifies as a certified historic rehabilitation. Rehabilitation shall be consistent with the historic character of the structure or structures and, if applicable, the district in which it is located.

(b) A rehabilitation project shall meet all of the standards for rehabilitation established in this paragraph.

A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment.
The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided.
Each property shall be recognized as a physical record of its time, place, and use. A change that creates a false impression of historical development, such as adding a conjectural feature or architectural element from another building, shall not be undertaken.
Changes to the property that have acquired historic significance in their own right shall be retained and preserved.
Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a historic property shall be preserved.
Deteriorated architectural features shall be repaired rather than replaced. If the severity of deterioration requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, if possible, materials. Replacement of missing architectural features shall be substantiated by documentary, physical, or pictorial evidence.
Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using the gentlest means possible.
Significant archeological resources affected by a project shall be protected and preserved. If these resources shall be disturbed, mitigation measures shall be undertaken.
New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property. The new work shall be differentiated from the old and shall be compatible with the massing, size, scale, and architectural features to protect the historic integrity of the property and its environment.
New additions and adjacent or related new construction shall be undertaken in a manner that if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired.

(c)

The quality of materials, craftsmanship, and related new construction in rehabilitation shall match the quality of materials, craftsmanship, and design of the historic structure.
Certain treatments, if improperly applied, or certain materials by their physical properties, can cause or accelerate physical deterioration of historic buildings, and use of these treatments or materials shall result in denial of certification.
The burden shall be upon the applicant to consult with the council for a determination as to what rehabilitation measures are appropriate for the structure.
Inappropriate rehabilitation measures on historic properties shall include:

a. Improper masonry repointing materials and techniques;

b. Improper exterior masonry cleaning methods;

c. Improper introduction of insulation if damage to historic fabric would result; and

d. Incompatible additions and new construction.

(d) The council may consider the dismantling and rebuilding of a portion of a certified historic structure to stabilize and repair weakened structural members and systems as a certified historic rehabilitation if:

The necessity for dismantling is justified in supporting documentation;
Significant architectural features and overall design are retained; and
Adequate historic materials are retained to maintain the architectural and historic integrity of the overall structure.

(3) Substantial rehabilitation. A rehabilitation project shall be a substantial rehabilitation only if the requirements of KRS 171.396(9) and (10) are met. To determine if a rehabilitation project is a substantial rehabilitation, the conditions established in this subsection shall apply.

(a) Increases to the adjusted basis of the structure shall include capital improvements to the structure, legal fees incurred for perfecting title, and zoning costs. Any depreciation previously claimed for the structure shall be subtracted from this figure.

(b) If a cost only partially qualifies as an eligible rehabilitation expense because some of the cost is attributable to the enlargement of the building, the expenditures shall be apportioned proportionately between the original portion of the building and the enlargement.

The cost of work done to structural components of the building within the footprint of the historic structure if the components are permanent;
Costs related to new heating, plumbing, and electrical systems, as well as expenses related to updating kitchens and bathrooms, compliance with the Americans with Disabilities Act of 1990, 42 U.S.C. 12101 and fire suppression systems and fire escapes; and
The cost of architectural and engineering fees, site survey fees, legal expenses, development fees, and other construction-related costs, if those costs are added to the basis of the property.

(d) In addition to the exclusions listed in KRS 171.396(9), qualified rehabilitation expenses shall not include the construction costs for a new building, parking lot, or sidewalk.

(4) Review of Part 2 Applications.

(a) A complete and adequately documented Certification Application Part 2- Description of Rehabilitation shall be reviewed by the council for a determination that the rehabilitation plan is a substantial rehabilitation and meets the standards for rehabilitation established in subsection (2) of this section. Applicants that do not meet this standard shall be notified via email and given ten (10) days to submit missing elements; otherwise, the project shall be placed on hold and removed from the allocation pool until KHC certifies that the Part 2 constitutes a complete and adequately documented application.

(b) After consideration of the information contained in the application and other available information, the council shall issue a preliminary certification of rehabilitation if the rehabilitation plan is a substantial rehabilitation and meets the standards for rehabilitation established in subsection (2) of this section.

(5)

(a) If the application is not adequate to complete the review or if revisions to the rehabilitation project are necessary to meet the standards of rehabilitation established in subsection (2) of this section, the council shall attempt to notify the applicant by mail, telephone, or e-mail using the contact information provided on the application.

(b) An applicant's failure to respond shall result in denial of the application.

(c) The council's notification or failure to notify shall not constitute a waiver of a deficiency or an alteration of a time limitation established under the Act.

(6) Changes to rehabilitation plans. Once a rehabilitation plan has been approved by the council, an applicant may only make substantive changes in the work stated in the application by:

(a) Filing a Certification Application-Continuation/Amendment form with the council; and

(b) Receiving notification from the council that the revised plan continues to meet the standards of rehabilitation established in subsection (2) of this section and is a substantial rehabilitation.

Section 5. Certifications of Rehabilitation-Part 3 Completed Work.

(1) Application. Upon completion of a rehabilitation project, an applicant shall file a Certification Application Part 3-Request for Certification of Completed Work form with the council for final certification of rehabilitation. An application shall include the:

(a) Names and mailing addresses of owners;

(b) Name and address of property;

(d) Actual starting date and completion date;

(e) Actual qualified rehabilitation expenses;

(f) Photographs adequate to document the appearance of the structure, both on the interior and exterior, and its site and environment during and after rehabilitation;

(g) Taxpayer identification number or Social Security number; and

(h) Signatures of owners or a representative authorized to sign on behalf of the owner requesting certification.

(2) Summary of Investment and Election of Credit. In addition to filing a Certification Application Part 3-Request for Certification of Completed Work form, the applicant shall file a Summary of Investment and Election of Credit form with the council. The Summary of Investment and Election of Credit shall include the:

(a) Names and mailing addresses of the owners;

(b) Name and address of the property;

(d) Signatures of the owners or a representative authorized to sign on behalf of the owner;

(e) Notarization of the signatures if the property is an owner-occupied residence or, for all other property, compilation by a certified public accountant or equivalent of the actual costs attributed to the rehabilitation of the historic structure; and

(f) An irrevocable election by the taxpayer to:

Use the credit, in which case, the credit shall be refundable; or
Transfer the credit, pursuant to KRS 171.397(8).

(3) Scope of review.

(a)

Rehabilitation shall encompass all work on the interior and exterior of the certified historic structure or structures and the site and environment, as well as related demolition, new construction, or rehabilitation work that could affect the historic qualities, integrity or site, landscape features, and environment of the certified historic structure.
Conformance to the standards of rehabilitation established in Section 4(2) of this administrative regulation shall be determined on the basis of application documentation and other available information by evaluating the property as it existed prior to the commencement of rehabilitation.

(b) A phased rehabilitation project shall not be authorized. Starting April 30, 2022, a Part 2 application shall not be submitted if a building has already received a Part 2 allocation from a previous year that has not yet been certified or if the owner has not relinquished that allocation in writing.

(c) Portions of a completed rehabilitation project that are not in conformance with the standards for rehabilitation shall not be exempted and shall result in denial of the Certification Application Part 3-Request for Certification of Completed Work.

(4) Review of Part 3 Applications. A complete and adequately documented Certification Application Part 3 - Request for Certification of Completed Work shall be reviewed by the council for a determination that the completed rehabilitation project is a certified rehabilitation and a determination of the final amount of credit approved. The council shall issue a final certification of rehabilitation if:

(a) All elements of the completed rehabilitation project meet the standards for rehabilitation as established in Section 4(2) of this administrative regulation;

(b) The completed rehabilitation project was a substantial rehabilitation; and

(5) If the application is not adequate to complete the review or if revisions to the rehabilitation project are necessary to meet the standards of rehabilitation established in Section 4(2) of this administrative regulation, the council shall attempt to notify the applicant by mail, telephone, or e-mail using the contact information provided on the application. Applicant's failure to respond shall result in denial of the application. The council's notification or failure to notify shall not constitute a waiver or alteration of time limitations established under the Act.

Section 6. Recapture of Preliminary Tax Credit Allocation For Credits Under KRS 171.397.

(1) Notice of Recapture. For tax credits under KRS 171.397, if an owner fails to obtain a Certification of Completed Work within thirty-six (36) months from the date of the taxpayer's preliminary allocation of tax credit, the director shall mail to the owner written notice of recapture of the preliminary tax credit allocation.

(2) Objection.

(a) If the owner objects to the recapture of the preliminary allocation of tax credit, the owner shall file written notice of objection accompanied by a supporting statement establishing grounds for objection within forty-five (45) days of the date of the notice of recapture.

(b) If the owner does not timely object, the preliminary tax credit allocation shall be recaptured by the council and added to the certification rehabilitation credit cap for the next calendar year, pursuant to KRS 171.397(2)(c).

(3) Reinstatement. Within thirty (30) days of receipt of the owner's notice of objection, the council shall review the objection and determine if the owner has provided reasonable grounds as established in subsection (5) of this section to reinstate the preliminary allocation.

(a) If the council determines that the preliminary tax credit allocation shall be reinstated, the:

Council shall give the owner written notice that the preliminary tax credit allocation has been reinstated for an additional twenty-four (24) months;
Owner shall pay a review fee for a Part 2 application in the amount established in Section 10(2) of this administrative regulation, whichever is applicable; and
Owner shall obtain a signed Part 3-Request for Certification of Completed Work (TC-3 form) on or before the expiration of twenty-four (24) months. If the owner fails to obtain a Certification of Completed Work or fails to request an extension under subsection (4) of this section, the council shall initiate recapture of the preliminary tax credit allocation under the procedures established in this section.

(b) If the council determines that the preliminary tax credit allocation shall not be reinstated:

The council shall give the owner written notice that the preliminary tax credit allocation has not been reinstated;
The owner shall be given thirty (30) days from the date of the notice that the preliminary tax credit allocation has not been reinstated to file an appeal, pursuant to Section 8 of this administrative regulation; and
If the owner fails to file a timely appeal, pursuant to Section 8 of this administrative regulation:

a. The preliminary allocation shall not be reinstated;

b. The preliminary tax credit allocation shall be recaptured by the council; and

c. The preliminary tax credit allocation shall be added to the certification rehabilitation credit cap for the next calendar year, pursuant to KRS 171.397(2)(c).

(4) Extension of Preliminary Tax Credit Allocation.

(a) At any time prior to expiration of thirty-six (36) months from the date of the taxpayer's preliminary allocation of tax, an owner may request in writing that the preliminary tax credit allocation be extended for a period of twenty-four (24) months if the owner:

Provides written documentation of reasonable grounds established in subsection (5) of this section for an extension; and
Pays a review fee for a Part 2 application in the amount established in Section 10(2) of this administrative regulation, whichever is applicable.

(b) Prior to the expiration of the twenty-four (24) month extension, the owner may request another extension under the procedures established in this subsection. There shall not be a limit on the number of extensions that an owner may request.

(5) Grounds for Reinstatement or Extension.

(a) Reasonable grounds shall be documentation of on-going efforts to obtain financial, legal, material, or physical resources necessary to complete the rehabilitation project or documentation that the delay in completion of the rehabilitation project is necessary and unavoidable.

(b) Reasonable grounds shall not include casualty loss or demolition to the extent that the structure no longer qualifies as a certified historic structure, inability to qualify as a substantial rehabilitation, or inability or unwillingness to perform work conditioned by the council and necessary to qualify the project as a certified rehabilitation.

(c) The number of prior reinstatements or extensions shall not be a factor in determining if a reinstatement or extension shall be granted.

Section 7. Inspection. The director or an authorized representative of the council shall be authorized to conduct an inspection of the property at any time up to three (3) years after the council has issued a Certification of Completed Work to determine if the work meets the standards for rehabilitation established in Section 4(2) of this administrative regulation.

Section 8. Appeal. A taxpayer may appeal a determination that the rehabilitation project does not qualify as a certified rehabilitation for purposes of the Act. An appeal shall be filed in writing, in care of the council, to the director or a reviewing officer designated by the director to hear an appeal.

(1) An appeal shall be made within thirty (30) days of the date of receipt of the determination being appealed.

(2) The director or the reviewing officer shall decide, based solely upon the record developed by the council, if the council:

(a) Reached incorrect conclusions of law;

(b) Made clearly erroneous factual findings;

(d) Abused the discretion available to that person.

(3) The director's or reviewing officer's decision shall:

(a) Confirm the determination;

(b) Reverse the determination due to incorrect conclusions of law; or

(4) The director or reviewing officer shall decide the appeal and shall notify the taxpayer of the decision in writing within thirty (30) days from the date the appeal is received.

(5) If the appeal is decided by a reviewing officer and the reviewing officer affirms the determination, the taxpayer may appeal the reviewing officer's determination in writing to the director. An appeal shall be pursuant to this subsection.

(a) An appeal to the director shall be filed within the time period established in subsection (1) of this section.

(b) The director shall use the same standards of review established in subsection (2) of this section.

Confirm the decision of the reviewing officer;
Reverse the determination due to incorrect conclusions of law; or
Remand the matter to the council for further proceedings.

(d) The director shall decide the appeal and shall notify the taxpayer of the decision in writing within thirty (30) days from the date the appeal is received.

Section 9. Revocation of Owners' Certifications.

(1) If, after obtaining final certification of rehabilitation, the council determines that the rehabilitation was not undertaken as represented by the owner in the applications, amendments, or supporting documentation, or the owner upon obtaining final certification undertook disqualifying work, the council may revoke a certification by giving written notice to the owner.

(2) The owner may file an appeal, pursuant to Section 8 of this administrative regulation.

(3) If the owner fails to file a timely appeal, the final certification of rehabilitation shall be revoked.

Section 10. Fees for Processing Rehabilitation Certification Requests.

(1)

(a) Payment of fees for review of Parts 2 and 3 shall be filed with the council with applications and shall be nonrefundable.

(b) Certification shall not be issued until the appropriate remittance is received.

(2) For tax credits under KRS 171.397, fees for reviewing rehabilitation certification requests of owner-occupied residential property, commercial, and other buildings shall be charged in accordance with the table established in this subsection. If a Part 2 application is denied, there shall not be a charge for a Part 3 review.

Section 11. Incorporation by Reference.

(1) The following material is incorporated by reference:

(a) "Certification Application Part 1-Evaluation of National Register Status", KHC Form TC-1, Rev. 2022;

(b) "Certification Application Part 2-Description of Rehabilitation", KHC Form TC-2, Rev. 2022;

(d) "Certification Application-Continuation/Amendment", KHC Form TC-2a, Rev. 2022;

(e) "Summary of Investment and Election of Credit", KHC Form TC-4, Rev. 2022; and

(f) Intent to Apply for Major Rehabilitation, KHC Form TC-00, Rev. 2022;

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Heritage Council, 410 High Street, Frankfort, Kentucky 40601, Monday through Friday, 8:00 a.m. to 4:30 p.m.

(3) This material is also available on the Council's Web site at https://heritage.ky.gov/historic-buildings/rehab-tax-credits/Pages/guides.aspx.

History

RELATES TO: KRS 171.396, 171.3961, 171.3963, 171.397, 42 U.S.C. 12101, 54 U.S.C. 300101, 36 C.F.R. 67, 36 C.F.R. 800,
STATUTORY AUTHORITY: KRS 171.397(12), (14)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 171.397(12) and (14) authorize the Kentucky Heritage Council to promulgate administrative regulations to implement the certified historic structures rehabilitation tax credit and to impose fees for tax credit applications. This administrative regulation establishes the application process to determine a taxpayer's eligibility to claim a certified historic structure rehabilitation tax credit.
History: 48 Ky.R. 3130, 49 Ky.R. 1062; eff. 1-31-2023.

300 KAR 6:020 Administration of Kentucky Rock Fence Preservation Program {#sec-300-kar-6-020 omnilex-key=us-ky-regs-official--title-300--300 KAR 6:020}

Section 1. Definitions.

(1) "Applicant" means a person who applies for grant assistance from the Kentucky Rock Fence Preservation Program.

(2) "Application" means the form Kentucky Rock Fence Preservation Grant Application.

(3) "Available grant funds" means money deposited in the rock fence preservation fund disbursed by the State Treasury under the Rock Fence Preservation Program established in KRS 171.393 and administered by the Kentucky Heritage Council for reconstruction and restoration of the Commonwealth's historic drylaid rock fences and historic mortared rock fences.

(4) "Council" is defined by KRS 171.391(1).

(5) "Director" means the Executive Director of the Kentucky Heritage Council.

(6) "Eligible owner" means an owner that is eligible under Section 2 of this administrative regulation to apply for grant assistance.

(7) "Eligible plan" means a reconstruction or restoration plan that meets the standards for reconstruction or restoration and has been approved by the director pursuant to Section 6 of this administrative regulation.

(8) "File" or "filed" means received at the office of the council or post-marked on or before the announced deadline.

(9) "Grant assistance" means grant funds awarded by the council from the Kentucky Rock Fence Preservation Program Grant Fund.

(10) "Historic drylaid rock fence" is defined by KRS 171.391(2).

(11) "Historic mortared rock fence" is defined by KRS 171.391(3).

(12) "Owner" means:

(a) The person, partnership, corporation, public agency, or other entity holding a fee simple interest in property located in Kentucky; or

(b) A lessee of property, if the remaining term of the lease is not less than twenty-seven and one-half (27 1/2) years for residential property and thirty-nine (39) years for all other property.

(13) "Performance and maintenance agreement" means the form Kentucky Rock Fence Preservation Performance and Maintenance Agreement, a written agreement between an eligible owner and the council in which the eligible owner agrees to implement an eligible plan for which the grant assistance is being awarded and to maintain the historic drylaid rock fences or historic mortared rock fences in their restored condition for a period of time established in Section 9(3)(b) of this administrative regulation from the date of the agreement.

(14) "Program year" means the period from July 1 to June 30.

(15) "Property" means real property located in Kentucky upon which historic drylaid rock fences or historic mortared rock fences are situated.

(16) "Reconstruction" means the act or process of depicting, by means of new construction, the form, features, and detailing of a nonsurviving site, landscape, building, structure, or object for the purpose of replicating its appearance at a specific period of time and in its historic location.

(17) "Reconstruction plan" means a plan describing the methods and materials, including location and condition of existing fences, to be utilized by persons engaged in the reconstruction of historic drylaid rock fences or historic mortared rock fences located in Kentucky.

(18) "Request for reimbursement" means the form Kentucky Rock Fence Preservation Grant Request for Reimbursement.

(19) "Restoration" means the process of accurately depicting the form, features, and character of historic drylaid rock fences or historic mortared rock fences as they appeared at a particular period of time by means of reconstruction of missing features for the restoration period and the removal of features from other periods in its history, if contemporary alterations and additions are not planned, and if substantial physical and documentary evidence exists for the work.

(20) "Restoration plan" means a plan describing the methods and materials, including location and condition of existing fences, to be utilized by persons engaged in the restoration of historic drylaid rock fences or historic mortared rock fences located in Kentucky.

(21) "Standards for reconstruction" means:

(a) The Secretary of the Interior's Standards for Reconstruction, 36 C.F.R. 68.3(d), as established by the U. S. Department of Interior; and

(b) The standards established in Section 3(3) of this administrative regulation.

(22) "Standards for restoration" means:

(a) The Secretary of the Interior's Standards for Restoration, 36 C.F.R. 68.3(c), as established by the U. S. Department of Interior; and

(b) The standards established in Section 3(3) of this administrative regulation.

Section 2. Eligible Owners. An owner of real property in Kentucky upon which historic drylaid rock fences or historic mortared rock fences are situated shall be eligible if the owner meets the following criteria:

(1) The historic drylaid rock fences or historic mortared rock fences are in need of reconstruction or restoration, through no deliberate act by the owner, and still possess enough historic integrity to enable a determination of location, style, and dimensions;

(2) A reconstruction or restoration plan has been prepared that conforms to the standards for reconstruction or restoration; and

(3) The owner agrees to enter into a performance and maintenance agreement with the council.

Section 3. Standards for Reconstruction and Restoration.

(1) An eligible plan for reconstruction shall comply with the Secretary of the Interior's Standards for Reconstruction, 36 C.F.R. 68.3(d), as established by the U.S. Department of Interior.

(2) An eligible plan for restoration shall comply with the Secretary of the Interior's Standards for Restoration, 36 C.F.R. 68.3(c), as established by the U.S. Department of Interior.

(3) In addition to the standards required in subsections (1) and (2) of this section, an eligible plan for reconstruction or restoration shall comply with the following standards:

(a) Historic drylaid rock fence shall be restored or reconstructed if feasible following the plan specifications set forth in the Special Note for Drylaid Rock Fences, KHC Form RFPP-4;

(b) If the level of damage or deterioration precludes repair, replacement shall be with stones that match the surviving portions of the fence in form, size, and color, utilizing the same styles and construction techniques;

(c) The quality of materials, craftsmanship, and related new construction in reconstruction or restoration shall match the quality of materials, craftsmanship, and design of the historic fence in question.

An application shall be denied if an owner uses improperly applied treatments or materials containing physical properties that cause or accelerate physical deterioration of historic fences.
Prior to application, the owner shall consult with the council for a determination of what measures are appropriate for the owner's fence.
Inappropriate measures shall include:

a. Improper masonry repointing materials and techniques;

b. Improper exterior masonry cleaning methods;

c. Inappropriate patching, splicing, or other reinforcing methods or materials;

d. Utilization of materials or design which are incompatible with surviving portions of the fence; and

e. Utilization of stones that have been removed, harvested, or taken from other historic stone structures without prior approval of the council; and

(d) If prior inappropriate repairs or other circumstances make it necessary to completely dismantle and rebuild portions of a historic drylaid rock fence or historic mortared rock fence to stabilize and repair weakened structural members, the council shall consider this intervention as part of the reconstruction or restoration plan if:

The necessity for dismantling is supported by documentation;
The plan shall involve the least degree of intervention necessary to accomplish the reconstruction or restoration; and
Adequate surviving stones shall be retained to maintain the architectural and historic integrity of the fence overall.

Section 4. Solicitation of Applications.

(1) Within ninety (90) days from the date grant funds are made available in each program year, the council shall establish a deadline for filing of applications for grant assistance.

(2) An eligible owner shall be permitted to file only one (1) application per program year.

(3) The council shall provide an opportunity for eligible owners to file applications in time for the next program year by:

(a) Announcing available grant funds to appropriate news media, including local newspapers;

(b) Providing notices to local historic preservation programs and groups; and

Section 5. Contents and Completion of Applications.

(1) Contents of application. An eligible owner shall file with the council the Kentucky Rock Fence Preservation Grant Application, KHC Form RFPP-1, in order to apply for grant assistance. The owner shall provide the following information:

(a) Name and mailing address of owner;

(b) Address of property;

(c) Photographic documentation of the fences showing areas to be recreated or restored and areas that do not need reconstruction or restoration, but supply sufficient information as to the styles and techniques used in construction of the fences and features unique to the fences;

(d) A brief written description of appearance including method of construction, materials, size, alterations, distinctive features and spaces, and dates of construction;

(e) A brief statement of significance summarizing how the fences reflect the value that gives the property its distinctive historical and visual character and explaining any significance attached to the property itself;

(f) A copy of a map, plat, or a PVA aerial map, indicating where the subject property is located and denoting where the fences are located on the property;

(g) A reconstruction or restoration plan that conforms to the standards for reconstruction or for restoration;

(h) Estimates for total cost of the reconstruction or restoration along with qualifications of contractors solicited to perform the reconstruction or restoration;

(i) Indication of willingness to enter into a performance and maintenance agreement with the council; and

(j) Signature of the owner.

(2) Completion of an application.

(a) An eligible owner who does not have a reconstruction or restoration plan may request technical assistance from the council.

(b) If the reconstruction or restoration plan has been submitted, the application shall be reviewed in accordance with the eligibility and prioritization criteria established by this administrative regulation.

Section 6. Review of Applications.

(1) The director shall review all applications that have been submitted to the council by the established deadline.

(2) The director shall invite comments on the applications from other entities such as the Dry Stone Conservancy, Certified Local Governments, and the Kentucky Department of Transportation.

(3) The director shall determine whether:

(a) The applicant is an eligible owner;

(b) The reconstruction or restoration plan is an eligible plan; and

(4) The director shall make a list of all applications that have been determined to be eligible, and shall submit the list to the council.

Section 7. Prioritization of Applications. The council shall prioritize applications determined to be eligible by the director based on the following criteria:

(1) Correct completion and submission of all parts of the application;

(2) Applicant is determined to be an eligible owner;

(3) Application contains a reconstruction or restoration plan for historic drylaid rock fences or historic mortared rock fences that meets the standards for reconstruction or restoration as set forth in Section 3 of this administrative regulation;

(4) Application establishes a project consistent with the mission of long-term preservation and maintenance of historic drylaid rock fences and historic mortared rock fences in Kentucky;

(5) Applicant agrees to comply with the regulations in the administration of the reconstruction or restoration project as set forth in Section 3 of this administrative regulation;

(6) Clear identification and documentation of need;

(7) Clearly stated project objectives that can be achieved within the project term and are feasible in light of projected resources available without impacting other historic stone structures;

(8) Sound project planning as evidenced by:

(a) The narrative descriptions; and

(b) The proposed budget that:

Supports the activities of the project;
Is reasonable and adequate to achieve the objectives;
Is cost-effective; and
Substantiates availability of matching funds;

(9) A clear description of the scope of work, methodology, time frame, anticipated product, and qualifications of proposed contractors;

(10) Performance on past state or federal grant projects funded by the Kentucky Heritage Council, the African American Heritage Commission, or the Native American Heritage Commission, as measured by adherence to all contractual requirements, both fiscal and programmatic;

(11) Potential for duplication of efforts by other organizations or individuals;

(12) Location of the fences in relation to the public viewshed or rarity of the location of the fences, such as a pasture field; and

(13) Degree of urgency to protect fences in imminent danger of being damaged or destroyed, including dangers posed by proximate position to roads.

Section 8. Allocation of Grant Assistance.

(1) Available grant funds shall be allocated to eligible owners by the council based on the recommendation of the eligible plans approved by the director and in accordance with the prioritization system established in Section 7 of this administrative regulation.

(2) The council shall vote upon final awards of grant assistance at a meeting conducted in accordance with the Open Meetings Law, KRS 61.805 to 61.850, and Open Records Law, KRS 61.870 to 61.884.

(3) The council shall announce the award of grant assistance to applicants in writing within thirty (30) days after determining final awards.

Section 9. Execution of Performance and Maintenance Agreements.

(1) After an application has been awarded grant assistance, the applicant and the council shall execute a performance and maintenance agreement.

(2) Funds shall not be made available to an eligible owner until a performance and maintenance agreement has been executed by all parties.

(3) Requirements of performance and maintenance agreements.

(a) The applicant shall meet the following requirements in the performance and maintenance agreement:

The applicant shall agree to perform the reconstruction or restoration work in accordance with the standards for reconstruction or restoration as set forth in Section 3 of this administrative regulation.
Work shall commence after the execution of the performance and maintenance agreement and shall be completed within twelve (12) months from the date of execution of the performance and maintenance agreement.
Written requests for extensions of time or for amendments to the performance and maintenance agreements shall be approved by the director only if there is a showing of substantial justification;

(b) The applicant shall agree to maintain the approved project beginning with the date the performance and maintenance agreement was executed and thereafter for a term of:

Five (5) years if the grant is $10,000 or less;
Ten (10) years if the grant is greater than $10,000 but less than $20,000; or
Twenty (20) years if the grant is $20,000 or more;

(c) In addition to a maintenance agreement, an applicant receiving a grant of $20,000 or more shall have executed a covenant between the owner and the council and recorded with the land records as an encumbrance running with the subject property for a period of twenty (20) years;

(d) Upon completion of the approved project, the applicant shall notify the council that the historic drylaid rock fences or historic mortared rock fences have been restored and shall provide to the council adequate documentation, including photographs, of the completed project;

(e)

The applicant shall agree that if there is a transfer of ownership of the property within the term established in Section 9(3)(b) of this administrative regulation from date of execution of the performance and maintenance agreement, the applicant shall execute a contract with the transferee requiring continuation of the performance and maintenance agreement until the expiration of the term.
If the transferee does not agree in writing to properly maintain the historic drylaid rock fences or historic mortared rock fences for the remainder of the term, the applicant shall refund a pro-rated amount of the grant assistance based upon any whole years of time remaining on the term of the performance and maintenance agreement;

(f) The applicant shall agree that if the applicant fails to comply with the terms of the performance and maintenance agreement, the council shall, upon reasonable notice to the recipient:

Withhold further payment;
Suspend the grant;
Terminate the grant for cause; or
Take other legally available remedies that shall be appropriate under the circumstances to recover the funds disbursed; and

(g)

Depending upon the source of available grant funds, an applicant may be required to comply with appropriate state or federal laws relevant to the source;
All procurements shall follow KRS Chapter 45A or 424;
All procurements shall follow local procurement guidelines; and
An applicant shall obtain any required local permits.

(4) Effect of performance and maintenance agreement. Requirements for performance and maintenance applied to the historic drylaid rock fences or historic mortared rock fences using grant assistance shall be established in the performance and maintenance agreement.

(5) To receive funds the recipient shall provide the following:

(a) A Kentucky Rock Fence Preservation Grant Request for Reimbursement form accompanied by adequate supporting documentation including cancelled checks, proof of payment, invoices, and receipts; and

(b) Photographic documentation and written verification from the owner that the project has been completed in accordance with the performance and management agreement.

(6) The council shall have the right to conduct on site monitoring of the project at any time during the term of the performance and maintenance agreement.

(7) Refund of funds disbursed. The council shall require a refund of grant assistance if an approved eligible plan has not been performed or the restored historic drylaid rock fences or historic mortared rock fences have not been maintained in compliance with approved standards of reconstruction or restoration as agreed in the performance and maintenance agreement.

(8)

(a) Limitations on awards. Grant assistance awarded to an individual or for-profit entity shall be limited to fifty (50) percent of the actual cost, not to exceed an amount approved by the council, with the assisted applicant providing fifty (50) percent or more of the cost, which may include federal, local, or in-kind support.

(b) Grant assistance awarded to a nonprofit entity shall be limited to sixty (60) percent of the actual cost, not to exceed an amount approved by the council, with the assisted applicant providing forty (40) percent or more of the cost, which may include federal, local, or in-kind support.

(9) Grant assistance shall not be awarded to projects in progress prior to execution of the performance and maintenance agreement.

Section 10. Appeals.

(1) Procedure for filing appeal. An applicant aggrieved by a decision of the council to deny an application or limit the amount of grant assistance assurance may file written objections with the director within thirty (30) days of the decision establishing the basis for the appeal.

(a) The director shall notify the applicant within twenty (20) day, in accordance with KRS 13B.050, that the applicant may appear and present testimony or written documentation on the issues presented by the appeal.

(b) The director shall have thirty (30) days in which to make a decision and to notify the applicant.

(2) Review of final decision. The applicant may appeal the decisions of the director to the Franklin Circuit Court.

Section 11. Incorporation by Reference.

(1) The following material is incorporated by reference:

(a) "Kentucky Rock Fence Preservation Grant Application", (KHC Form RFPP-1, Rev. 2008), Kentucky Heritage Council;

(b) "Kentucky Rock Fence Preservation Grant Request for Reimbursement", (KHC Form RFPP-2, Rev. 2008), Kentucky Heritage Council;

(c) "Kentucky Rock Fence Preservation Performance and Maintenance Agreement", (KHC Form RFPP-3, Rev. 2008), Kentucky Heritage Council;

(d) "Special Note for Drylaid Rock Fences", (KHC Form RFPP-4, Rev. 2008).

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Heritage Council, 300 Washington Street, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.

History

RELATES TO: KRS Chapter 45A, 61.805 -61.850, 61.870 -61.884, 171.391, 171.392, 171.393, Chapter 424, 36 C.F.R. 68(3)(c), (d)
STATUTORY AUTHORITY: KRS 171.381(3)(f), 171.393
NECESSITY, FUNCTION, AND CONFORMITY: KRS 171.393 establishes the Rock Fence Preservation Program and authorizes the Kentucky Heritage Council to promulgate administrative regulations in consultation with the Dry Stone Conservancy relating to the establishment of a grant program. This administrative regulation establishes criteria for participation in that grant program.
History: 35 Ky.R. 204; Am. 544; eff. 10-3-08; Crt eff. 2-12-2020.

Chapter 7 Kentucky Horse Park

300 KAR 7:010 Golf carts, all-terrain vehicles, and horse trailers {#sec-300-kar-7-010 omnilex-key=us-ky-regs-official--title-300--300 KAR 7:010}

Section 1. Definitions.

(1) "All-terrain Vehicle" or "ATV" is defined in KRS 189.010(24).

(2) "Commission" is defined in KRS 148.258.

(3) "Golf cart" means any motorized vehicle, not an ATV or wheelchair, that cannot be licensed for use on public roadways except as provided by KRS 189.286.

(4) "Horse trailer" means any vehicle used to transport horses.

Section 2. All-terrain Vehicles.

(1) ATVs shall not be used by the public on the grounds of the Kentucky Horse Park.

(2) Kentucky Horse Park employees and agents may use ATVs on the grounds of the Kentucky Horse Park if acting on behalf of the Kentucky Horse Park or Commission.

Section 3. Golf carts and permits.

(1) Golf carts may be used on the grounds of the Kentucky Horse Park with the appropriate permit.

(2) Single event golf cart permit.

(a) A person may purchase a single event golf cart permit at the campground store or any other location designated by the executive director for twenty-five (25) dollars.

(b) This permit shall be valid for seven (7) consecutive days.

(3) Annual golf cart permit.

(a) A person may purchase an annual golf cart permit at the campground store or any other location designated by the executive director for fifty (50) dollars.

(b) This permit shall be valid January 1 - December 31.

(4) All permits shall be displayed prominently on the golf cart.

(5) A Golf cart shall not be parked or left in a no-parking zone, a prohibited area, or in any area that would block traffic.

(6) Kentucky Horse Park employees and agents may use golf carts without a permit on the grounds of the Kentucky Horse Park if acting on behalf of the Kentucky Horse Park or Commission.

Section 4. Horse Trailers and Permits.

(1) Horse trailers may stay on the grounds of the Kentucky Horse Park with the appropriate permit or with horse stall rental.

(2) Single day horse trailer permits.

(a) A person may purchase a single day horse trailer permit at the Campground Store or any other location designated by the executive director for twenty (20) dollars.

(b) This permit shall be valid for one (1) day of occupancy.

(3) Annual horse trailer permits.

(a) A person may purchase an annual Horse Trailer Permit at the campground store or any other location designated by the executive director for seventy-five (75).

(b) This permit shall be valid January 1 - December 31.

(4) A person who rents a horse stall for each horse brought to the park shall not be required to purchase a separate permit but shall be considered to be permitted by virtue of the horse stall rental.

(5) All permits shall be displayed prominently on the rear of the Horse Trailer in the license plate area or lower left rear corner.

(6) A horse trailer shall not be parked or left in a no-parking zone, a prohibited area, or in any area that would block traffic.

(7) All horse trailers shall be parked in designated areas.

(8) Kentucky Horse Park employees and agents may use horse trailers without a permit on the grounds of the Kentucky Horse Park if acting on behalf of the Kentucky Horse Park or Commission.

Section 5. Violations. A person identified by Kentucky Horse Park Mounted Police or the executive director of the Kentucky Horse Park as being in violation of this administrative regulation may have his or her permit revoked and may have his or her ATV, golf cart, or horse trailer towed to the nearest licensed towing facility.

Section 6. Appeal procedures. An individual whose request for a permit has been denied or revoked or whose ATV, golf cart, or horse trailer has been towed may request an administrative hearing pursuant to KRS Chapter 13B.

History

RELATES TO: KRS 148.285, 148.290, 148.991
STATUTORY AUTHORITY: 148.290, 148.991
NECESSITY, FUNCTION, AND CONFORMITY: KRS 148.290 authorizes the Kentucky Horse Park Commission to restrict the use of golf carts, all-terrain vehicles and horse trailers on the Kentucky Horse Park and to establish a permitting system. KRS 148.991 permits the Executive Director of the Kentucky Horse Park or his designee to have a violator's golf cart, all-terrain vehicle or horse trailer impounded and cited. This administrative regulation establishes restrictions on the usage of these vehicles on the Kentucky Horse Park and establishes a permitting system for golf carts and horse trailers.
History: 35 Ky.R. 2834; Am. 36 Ky.R. 574; eff. 10-2-2009; Crt eff. 2-12-2020.

Title 300 KAR — Tourism, Arts and Heritage Cabinet

Chapter 1 Department of Travel Development

300 KAR 1:010 Procedure for Regional Marketing and Matching Funds Program {#sec-300-kar-1-010 omnilex-key=us-ky-regs-official--title-300--300 KAR 1:010}

Chapter 2 Office of the Secretary

300 KAR 2:010 Kentucky Tourism Development Act Sales Tax Credit Program {#sec-300-kar-2-010 omnilex-key=us-ky-regs-official--title-300--300 KAR 2:010}

300 KAR 2:020 Tourism Development Loan Program; criteria for making and collecting loans {#sec-300-kar-2-020 omnilex-key=us-ky-regs-official--title-300--300 KAR 2:020}

300 KAR 2:030 Kentucky Tourism Development Act {#sec-300-kar-2-030 omnilex-key=us-ky-regs-official--title-300--300 KAR 2:030}

300 KAR 2:040 Kentucky film industry incentives application and fees {#sec-300-kar-2-040 omnilex-key=us-ky-regs-official--title-300--300 KAR 2:040}

Chapter 5 Kentucky Historical Society

300 KAR 5:010 Museum unclaimed property {#sec-300-kar-5-010 omnilex-key=us-ky-regs-official--title-300--300 KAR 5:010}

Chapter 6 Kentucky Heritage Council

300 KAR 6:011 Historic rehabilitation tax credit certifications {#sec-300-kar-6-011 omnilex-key=us-ky-regs-official--title-300--300 KAR 6:011}

300 KAR 6:020 Administration of Kentucky Rock Fence Preservation Program {#sec-300-kar-6-020 omnilex-key=us-ky-regs-official--title-300--300 KAR 6:020}

Chapter 7 Kentucky Horse Park

300 KAR 7:010 Golf carts, all-terrain vehicles, and horse trailers {#sec-300-kar-7-010 omnilex-key=us-ky-regs-official--title-300--300 KAR 7:010}

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