KRS 136.650 — Required participation in funds -- Computation of amounts -- Designated monthly hold harmless amount

(1) (a) Every political subdivision, school district, and special district shall
participate in the gross revenues and excise tax fund and the state baseline and
local growth fund.
(b) On or before December 1, 2005, each political subdivision shall certify to the
department on a prescribed form the amount of collections it received from
the local franchise fees collected from communications service and
multichannel video programming service providers and other fees collected to
fund public educational and government access programming during the
period between July 1, 2004, and June 30, 2005. By certifying its participation
under this subsection, each political subdivision:
1. Consents to the hearing process provided in KRS 136.658; and
2. Agrees to relinquish its right to enforce the portion of any contract or
agreement that requires the payment of a franchise fee or tax on
communications services and multichannel video programming services,
regardless of whether the tax or fee is imposed on the provider or its
customers.
(c) The amount of collections received by each political subdivision, school
district, special district, and sheriff's department betw een July 1, 2004, and
June 30, 2005, from the tax imposed by KRS 136.120 attributable to the
franchise portion of the operating property, as noted in KRS 136.115, shall be
calculated by the department from assessment data for calendar year 2004.
(2) The mo nthly portion of the gross revenues and excise tax fund that shall be
distributed to political subdivisions, school districts and special districts under KRS
136.652 shall be computed as follows:
(a) Each political subdivision, school district and special district shall be assigned
a percentage based on the amount of its collections certified under subsection
(1) of this section as a ratio of the total certified amount of collections of all
parties participating in the fund. This percentage shall be known a s the "local
historical percentage." The portion of the sheriff departments' certified
collections identified in subsection (1) of this section from the tax imposed
under KRS 136.120 attributable to the franchise portion of the operating
property, as noted in KRS 136.115, that was imposed by county governments
shall be added to each county's reported collections to determine its local
historical percentage;
(b) The sheriff departments' collections certified under subsection (1) of this
section that are reta ined by the sheriff departments as their fee for collecting
the taxes shall be the sheriff departments' fixed hold-harmless amount;
(c) Three million thirty-four thousand dollars ($3,034,000), which represents one-
twelfth (1/12) of the total potential coll ections, shall be designated as the
"monthly hold-harmless amount"; and
(d) Each political subdivision's, school district's, and special district's local
historical percentage shall be multiplied by the monthly hold-harmless amount
to determine its monthly distribution from the fund.
(3) If during the period between June 30, 2005, and December 31, 2005, any political
subdivision had a substantial change in its base revenue by enacting or modifying
the rate of a local franchise fee prior to June 30, 2005, th e political subdivision may
request the department to determine its certified collection amount.
(4) If any political subdivisi on, school district, special district, or sheriff's department
believes that the data used to determine its certified amount of collections are
inaccurate, the political subdivision, school district, special district, or sheriff's
department may request a redetermination by the oversight committee established
by KRS 136.658. A redetermination shall be effective prospectively beginning with
the next distribution cycle occurring ninety (90) days after the matter is finally
settled.