306 KAR 1:050. Removal of designation.

      RELATES TO: KRS 154.680

      STATUTORY AUTHORITY: KRS 154.680(4)

      NECESSITY, FUNCTION, AND CONFORMITY: This administrative regulation is being amended to comply with the deficiencies found during quadrennial review by the Task Force on Economic Development. This administrative regulation sets forth guidelines for the removal of an enterprise zone designation.

      Section 1. Removal of Designation. The authority may determine, after ten (10) years of designation, that a zone no longer meets the criteria established for designation pursuant to KRS 154.650 et seq. or administrative regulations. The authority shall:

      (1) Give written notice to the enterprise zone designee by certified mail of the findings;

      (2) The enterprise zone designee shall have sixty (60) days from receipt of notice to respond to the authority's findings;

      (3) The authority shall render a decision.

      Section 2. (1) If at any time during the lifetime of a zone the applicant or governing body of the zone area withdraws any or all of the incentives provided in its original application without good cause, said conduct shall constitute cause for withdrawal or termination of the designation by the Enterprise Zone Authority.

      (2) An increase or decrease in the average national rate of unemployment or the median income of the zone residents shall not affect the zone's designation.

      (3) In the event a designation is removed, the authority may develop a phaseout program if appropriate to the situation. (9 Ky.R. 751; eff. 1-6-83; Am. 18 Ky.R. 2879; eff. 4-14-92.)