Kentucky Revised Statutes Title IX. Counties, Cities, and Other Local Units § 65.058.Definitions for section; forbearance period after acquisition of public water or wastewater system; duties of acquiring utility; Energy and Environment Cabinet and Public Service Commission upon expiration of forbearance period

(a) “Acquiring utility” means a public water or wastewater system, or a utility described in KRS 278.010(3)(d) or (f);

(b) “Cabinet” means the Energy and Environment Cabinet;

(c) “Commission” means the Public Service Commission;

(d) “Forbearance period” means a three (3) year period of time that begins on the day that the sale of the public water or wastewater system to the acquiring utility closes;

(e) “Governing body” means the appointed officials having control and responsibility for the governance of the public water or wastewater system; and

(f) “Public water or wastewater system” means any of the following that serve a community:

(a) Not be required to pay any of the acquired public water or wastewater system's fines or penalties imposed for violations of KRS Chapter 224 or 278, or the administrative regulations promulgated thereunder, including any fines and penalties imposed prior to April 12, 2024;

(b) Make all necessary improvements to the public water or wastewater system and its public works to correct past violations and bring the water system, wastewater system, or both into compliance with state and federal law; and

(c) Be given priority for any eligible financing from the Kentucky Infrastructure Authority to correct all deficiencies in the system identified in state and federal violations.

(a) Waive all fines and penalties incurred prior to the commencement of the forbearance period if all of the deficiencies giving rise to the fines and penalties have been resolved and:

(b) Proceed to collect all past due fines and penalties if the deficiencies have not been resolved or the deficient public water or wastewater system is not under a management and operations agreement or sold to an acquiring utility; or

(c) Grant an extension of the forbearance period of no longer than six (6) months if the commission and the cabinet determine that all of the conditions for waiver of fines and penalties in paragraph (a) of this subsection will be satisfied by that time.

Notwithstanding any provision of law to the contrary, interest or additional charges shall not be imposed by the cabinet or the commission on those accrued amounts during the forbearance period.