Download as PDF
175B.030 Projects connecting Kentucky and Indiana -- Bi-state authority -Formation -- Members -- Bi-state agreement -- Financial plan -- Legislative
findings and declarations.
(1)
(2)
(3)
This section shall apply to any project that connects Kentucky with the state of
Indiana. A project that connects Kentucky with the state of Indiana shall be
constructed and financed by a bi-state authority.
(a) A local government that contains a portion of a proposed project may, by
resolution of its governing body, request that its chief executive officer
and the Governor appoint a group of Kentucky members to negotiate with
a similar group from the state of Indiana for the purpose of proposing the
creation of a bi-state authority composed of members from both states,
recognized under the laws of both states, and existing for the purpose of
financing, constructing, and operating a project or projects mutually
beneficial to both states.
(b) If established, the Kentucky membership of the bi-state authority shall
consist of seven (7) members, three (3) of whom shall be appointed by
the Governor, and four (4) of whom shall be appointed by the chief
executive of the local government in which the project is located. The four
(4) local government appointees shall be residents of the county in which
the project is located. If a project is located in a consolidated local
government, no more than two (2) appointees shall reside in the same
Kentucky senatorial district. If portions of the project are located in more
than one (1) local government, the chief executive of the county or
consolidated local government having the largest population shall make
the appointments authorized in this paragraph.
(c) Any proposed agreement to establish a bi-state authority shall be
presented to the state authority for approval. If the state authority
approves the agreement, it shall be submitted to the General Assembly
for ratification. If the agreement is ratified by the General Assembly, the
state authority shall authorize the establishment of a bi-state authority and
shall enter into an agreement with the state of Indiana for the creation of a
bi-state authority.
(a) Kentucky members of a proposed bi-state authority who are appointed by
the Governor shall be confirmed by the Senate in accordance with KRS
11.160. Members appointed by the chief executive of the local
government shall be confirmed by the governing body of the local
government.
(b) At least two (2) of the Governor's appointees and two (2) of the chief
executive's appointees shall be familiar with road and bridge design or
financing and administration of transportation infrastructure projects.
(c) Members of a bi-state authority appointed by the Governor shall serve for
four (4) years, except that initial appointments shall be as follows:
1.
One (1) appointee shall serve a term of two (2) years;
2.
One (1) appointee shall serve a term of three (3) years; and
3.
One (1) appointee shall serve a term of four (4) years.
(d) The governing body of the local government requesting formation of the
(e)
(4)
(a)
(b)
(c)
(5)
(a)
(b)
(c)
bi-state authority shall, by resolution, establish term lengths for the initial
and succeeding members who are locally appointed, with each term not
to exceed four (4) years.
Members of a bi-state authority representing the Commonwealth may be
reappointed upon the expiration of their terms. Members reappointed
shall be reconfirmed in the same manner as newly appointed members.
An agreement establishing a bi-state authority shall at a minimum:
1.
Establish the total number of members of the bi-state authority;
2.
Establish staffing and funding to support the work of the bi-state
authority;
3.
Designate the process for selecting a presiding officer of the bi-state
authority, which shall include a requirement that a member from
each state share the duties of presiding; and
4.
Require the approval of a majority of the members from each state
before any action may be taken or any change may be made by the
bi-state authority.
A bi-state authority created pursuant to this section shall take the legal
form necessary to conform to the laws of both states. The Commonwealth
shall consider the bi-state authority to be an independent de jure
municipal corporation, constituting a governmental agency and
instrumentality of the appropriate jurisdictions. The bi-state authority shall
adopt a name indicative of its location and purpose.
Any bi-state agreement approved pursuant to this section may be
presented to the United States Congress for consent thereof by joint
resolution as provided in Article 1, Section 10, Clause 3 of the United
States Constitution.
Members of a bi-state authority appointed from the Commonwealth shall
be considered public servants subject to KRS Chapter 11A.
Members of a bi-state authority appointed from the Commonwealth shall
receive no compensation for their services, but shall be entitled to
reimbursement for all reasonable expenses necessary and incidental to
the performance of their duties and functions as members of the bi-state
authority.
The following individuals or entities shall be prohibited from entering into
any contract or agreement with a bi-state authority:
1.
Any member of the bi-state authority appointed to represent the
Commonwealth or any member of the state authority or a project
authority;
2.
Any spouse, child, stepchild, parent, stepparent, or sibling of a
member of the bi-state authority appointed to represent the
Commonwealth or any spouse, child, stepchild, parent, stepparent,
or sibling of a member of the state authority or a project authority;
and
3.
Any corporation, limited liability entity, or other business entity of
which a person identified in subparagraph 1. or 2. of this paragraph
(6)
(7)
is an owner, member, or partner or has any other ownership
interest.
(d) A bi-state authority shall comply with the procurement laws of both states
that are a party to the agreement creating the bi-state authority, including
the provisions of KRS Chapter 45A, in the development of a project and
the procurement of goods and services.
(e) A bi-state authority shall comply with the laws of both states concerning
the inspection and disclosure of public records, including KRS 61.870 to
61.884.
(f) A bi-state authority shall comply with the laws of both states concerning
the conduct of open meetings, including KRS 61.805 to 61.850.
After creation of the bi-state authority and prior to the execution of any
agreements for the construction of the project, the bi-state authority shall
prepare a financial plan specifying the construction and financing parameters
of the project, including:
(a) A timeline for construction of the project, including financing requirements
throughout the construction of the project;
(b) The amount and duration of per-vehicle tolls;
(c) Expected appropriations from the General Assembly to be used for
project costs; however, no financial plan shall be submitted or approved
which contains expected appropriations by the General Assembly beyond
those appropriated in the most recently enacted biennial highway
construction plan;
(d) Other sources of funds and expected amounts; and
(e) Other provisions relating to the construction and financing of the project.
The Kentucky members of the bi-state authority shall consult with the involved
local governments in Kentucky, the department, and the Finance and
Administration Cabinet, Office of Financial Management, during the
development of the financial plan. Upon completion and approval of the
financial plan by the bi-state authority, the plan shall be submitted to the state
authority for approval. The state authority shall not approve a financial plan
which contains expected appropriations by the General Assembly beyond
those appropriated in the most recently enacted biennial highway construction
plan. If the financial plan is approved by the state authority, the cabinet and, as
necessary, other state agencies or local governments may enter into a
development agreement as provided in subsection (7) of this section with all
necessary parties for the development of a project.
(a) Upon approval of the financial plan as provided in subsection (6) of this
section, a development agreement may be entered into establishing the
terms and conditions under which a project will be undertaken and the
duties, responsibilities, powers, and authorities of the parties to the
agreement. The development agreement shall, at a minimum:
1.
Require the bi-state authority to submit an annual report to the
cabinet and the Legislative Research Commission;
2.
Require that an annual audit of the bi-state authority be performed
by a certified public accountant;
3.
(8)
Include the relevant provisions from the financial plan required by
subsection (6) of this section;
4.
Include provisions detailing the duties, responsibilities, and
obligations of each party in relation to the financing, development,
operation, and maintenance of the project, and the servicing and
retirement of all bonds;
5.
Establish limits on any reserve funds created for operation,
maintenance, or bond servicing, which shall be at a level to
adequately operate and maintain the project and ensure proper
bond servicing;
6.
Prohibit the amendment of the project or the financial plan without
the prior evaluation and approval by the state authority. No
amendment shall be approved that provides for expected
appropriations by the General Assembly beyond those appropriated
in the most recently enacted biennial highway construction plan;
7.
Establish a process for the transfer of ownership of the portion of
the project that is within the Commonwealth to the Commonwealth
upon retirement of all bonds associated with the project; and
8.
Require the approval of a majority of the members from each state
before any action may be taken or any changes may be made by
the bi-state authority.
(b) The parties to the agreement from the Commonwealth shall consult with
the department and the Finance and Administration Cabinet, Office of
Financial Management, in the development of the agreement.
(c) Additional agreements may be executed, as necessary to complete the
project.
The General Assembly hereby finds and declares that in carrying out the
functions, powers, and duties as prescribed in this chapter, a bi-state authority
authorized under this section will be performing essential public and
government functions that improve the public welfare and prosperity of the
people of the Commonwealth by promoting the availability of and enhancing
accessibility to improved transportation services within the Commonwealth.
Effective:June 26, 2009
History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 80, effective June 26,
2009.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.