(1) The local corrections assistance fund is created as a separate revolving fund to be administered by the department. The fund shall consist of amounts transferred to the fund pursuant to KRS 196.288, along with any other proceeds from grants, contributions, appropriations, or other moneys made available for purposes of the fund.
(2) Notwithstanding KRS 45.229, amounts not expended at the close of a fiscal year shall not lapse but shall be carried forward to the next fiscal year.
(3) Any interest earnings from the fund shall become a part of the fund and shall not lapse.
(4) Moneys in the fund shall accrue to the fund and shall be retained in the fund until the General Assembly establishes a statutory process and method for distributing the funds to local correctional facilities and programs.