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65A.050
Administrative dissolution of special purpose governmental entity -Dissolution by governing body.
(1)
(a)
(b)
(c)
As used in this subsection, "entity seeking dissolution" shall mean:
1.
The DLG;
2.
If the special purpose governmental entity was established by one (1)
county, or by one (1) city, the governing body of the county or city that
established the special purpose governmental entity;
3.
If the special purpose governmental entity was established by multiple
counties and cities, the governing bodies of all establishing entities; or
4.
If the special purpose governmental entity was established other than by
an establishing entity, the governing body or bodies of the county or
counties in which the special purpose governmental entity provides or
provided services, or operates or operated.
Any special purpose governmental entity that meets at least one (1) of the
following criteria may be administratively dissolved:
1.
The special purpose governmental entity has taken no action for two (2)
or more consecutive years;
2.
Following a written inquiry from the entity seeking dissolution, the chair
of the special purpose governmental entity either:
a.
Notifies the entity seeking dissolution in writing that the special
purpose governmental entity has not had a governing board, or has
not had a sufficient number of governing board members to
constitute a quorum for two (2) or more consecutive years; or
b.
Fails to respond to the inquiry within thirty (30) days;
3.
The special purpose governmental entity fails to register with the DLG
as required by KRS 65A.090;
4.
The special purpose governmental entity fails to file the information
required by KRS 65A.020 for two (2) or more consecutive years; or
5.
The governing body of the special purpose governmental entity provides
documentation to the DLG or the governing body or bodies of the
establishing entity that it has unanimously adopted a resolution declaring
the special purpose governmental entity inactive.
To begin the process of administrative dissolution, the entity seeking
dissolution shall provide notification of the proposed administrative
dissolution as provided in this paragraph:
1.
The entity seeking dissolution shall:
a.
Post a notice of proposed administrative dissolution on the registry
established by KRS 65A.020;
b.
For administrative dissolutions under subparagraphs 3., 4., and 5.
of paragraph (b) of this subsection, publish, in accordance with the
provisions of KRS Chapter 424, a notice of proposed
2.
(d)
1.
administrative dissolution, with the cost of the publication billed to
the special purpose governmental entity for which administrative
dissolution is sought;
c.
Mail a copy of the notice to the registered contact for the special
purpose governmental entity, if any; and
d.
Mail a copy of the notice as follows:
i.
If the dissolution is sought by the DLG, to the governing
body of the establishing entity or county, and to all entities at
the state level having oversight of or responsibility for the
special purpose governmental entity; and
ii. If the dissolution is sought by an establishing entity or
county, to the DLG and any other establishing entities or
counties, and to all entities at the state level having oversight
of or responsibility for the special purpose governmental
entity; and
The notice shall include:
a.
The name of the entity seeking dissolution, and contact
information for the entity;
b.
The name of the special purpose governmental entity for which
dissolution is sought;
c.
The statutes under which the special purpose governmental entity
was organized and operating;
d.
A description of the services provided and the territory of the
special purpose governmental entity;
e.
If there is a plan of dissolution as required by paragraph (e) of this
subsection, identification of the place where the plan of dissolution
may be reviewed;
f.
A statement that any objections to the administrative dissolution
shall be filed in writing with the entity seeking to dissolve the
special purpose governmental entity within thirty (30) days after
the publication date, and the address and process for submitting
such objections; and
g.
A statement that if no written objections are received within thirty
(30) days of publication of the notice, the special purpose
governmental entity shall be administratively dissolved.
Any resident living in or owning property in the area served by the
special purpose governmental entity for which dissolution is sought,
who is not a member of the governing body of the special purpose
governmental entity or an immediate family member of a member of the
governing body of the special purpose governmental entity, may file a
written objection to the dissolution with the entity seeking dissolution.
The written objection shall state the specific reasons why the special
purpose governmental entity shall not be dissolved, and shall be filed
(2)
within thirty (30) days after the posting of the notice on the registry as
required by paragraph (c) of this subsection.
2.
a.
Upon the passage of thirty (30) days with no objections filed, and
satisfaction of all outstanding obligations of the special purpose
governmental entity, the special purpose governmental entity shall
be deemed dissolved and, if a dissolution plan was required, the
entity seeking dissolution shall proceed to implement the
dissolution plan.
b.
Notification of dissolution shall be provided by the entity seeking
dissolution to all other entities listed under paragraph (a) of this
subsection. The DLG shall maintain a list of all dissolved special
purpose governmental entities and the date of dissolution on the
registry established by KRS 65A.020.
3.
If written objections are received within thirty (30) days of the
publication on the registry required by paragraph (c) of this subsection,
the dissolution process shall be aborted, and the process established by
subsection (2) of this section shall be utilized if it is determined that
dissolution should still be sought, notwithstanding any other dissolution
process that may exist in the Kentucky Revised Statutes for the type of
special purpose governmental entity for which dissolution is sought.
(e) If the special purpose governmental entity for which administrative
dissolution is sought:
1.
Is providing services;
2.
Has outstanding liabilities; or
3.
Has assets;
the entity seeking dissolution shall, as part of the dissolution process, develop
a dissolution plan that includes, as relevant, provisions addressing the
continuation of services, the satisfaction of all liabilities, and the distribution
of assets of the special purpose governmental entity.
Any special purpose governmental entity not meeting the requirements for
dissolution under subsection (1) of this section, and for which no specific
dissolution provisions apply in the Kentucky Revised Statutes, may be dissolved as
provided in this subsection:
(a) The dissolution of a special purpose governmental entity may be initiated
upon:
1.
The affirmative vote of two-thirds (2/3) of the governing body of the
special purpose governmental entity and the adoption of an ordinance by
the affirmative vote of two-thirds (2/3) of the governing body of each
establishing entity;
2.
The adoption of an ordinance by an affirmative vote of two-thirds (2/3)
of the governing body of each establishing entity; or
3.
If there is no establishing entity, by the adoption of an ordinance by an
affirmative vote of two-thirds (2/3) of the governing body of each
(b)
(c)
county in which the special purpose governmental entity provides
services or operates;
Upon initiation of a dissolution after an affirmative vote as provided in
paragraph (a) of this subsection, the special purpose governmental entity for
which dissolution is sought shall not assume any new obligations or duties,
contract for any new debt, or levy any additional fees or taxes unless the new
obligations, duties, debt, fees, or taxes are included in the dissolution plan
required by paragraph (c) of this subsection. Any contract or agreement or
plan for new obligations, duties, debt, fees, or taxes entered into or devised in
violation of this paragraph shall be void;
After voting to commence dissolution of a special purpose governmental
entity, the governing body or bodies initiating the dissolution shall:
1.
Develop a dissolution plan which, if adopted by an establishing entity
shall be by ordinance, which shall include but not be limited to:
a.
A description of how the necessary governmental services
provided by the special purpose governmental entity will be
provided upon dissolution of the entity or a statement that the
services are no longer needed;
b.
A plan for the satisfaction of any outstanding obligations of the
special purpose governmental entity, including the continuation of
any tax levies or fee payments necessary to meet the outstanding
obligations;
c.
Assurances from any organization or entity that will be assuming
responsibility for services provided by the special purpose
governmental entity, or that will assume the obligations of the
special purpose governmental entity, that the organization or entity
will, in fact, provide the services or assume the obligations;
d.
A plan for the orderly transfer of all assets of the special purpose
governmental entity in a manner that will continue to benefit those
to whom services were provided by the special purpose
governmental entity;
e.
A date upon which final dissolution of the special purpose
governmental entity shall occur; and
f.
Any other information the governing body wishes to include.
The dissolution plan shall be available for public review at least thirty
(30) days prior to the public hearing required by subparagraph 2. of this
paragraph;
2.
Hold a public hearing in each county and city that is participating in the
dissolution to present the proposed dissolution plan and receive
feedback from the public. The time and location of the hearing, as well
as the location where a copy of the dissolution plan may be reviewed by
the public prior to the hearing, shall be advertised as provided in KRS
424.130, and shall be posted on the registry established by KRS
(d)
(e)
65A.020. The hearing shall be held not less than fifteen (15) days, nor
more than thirty (30) days, after the publication of the notice in the
newspaper;
3.
Send a copy of the notice required by subparagraph 2. of this paragraph
to the DLG and to any state entity with oversight authority of the special
purpose governmental entity;
4.
If the dissolution plan is amended after the public hearing, make the
amended dissolution plan available for public inspection for at least
fifteen (15) days prior to the final vote of the governing body under
subparagraph 6. of this paragraph;
5.
If the special purpose governmental entity is a utility as defined in KRS
278.010(3), obtain approval from the Public Service Commission
pursuant to KRS 278.020(6); and
6.
Within sixty (60) days after the date of the public hearing, finally
approve or disapprove the dissolution of the special purpose
governmental entity and the dissolution plan. Approval shall require:
a.
If initiated by the governing board of the special purpose
governmental entity, the affirmative vote of two-thirds (2/3) of the
members of the governing body of the special purpose
governmental entity and the adoption of an ordinance by twothirds (2/3) of the members of the governing body of each
establishing entity;
b.
The adoption of an ordinance by two-thirds (2/3) of the members
of the governing body of each establishing entity; or
c.
If there is no establishing entity, by the adoption of an ordinance
by two-thirds (2/3) of the members of the governing body of each
county in which the special purpose governmental entity provided
services or operated;
The governing body or bodies shall notify the DLG of the outcome of the vote
or votes taken pursuant to subparagraph 6. of paragraph (c) of this subsection;
and
Notwithstanding any other provision of this section, the dissolution of a
special purpose governmental entity shall not be final until all obligations of
the special purpose governmental entity have been satisfied or have been
assumed by another entity.
Effective: April 8, 2016
History: Amended 2016 Ky. Acts ch. 50, sec. 4, effective April 8, 2016. -- Created
2013 Ky. Acts ch. 40, sec. 5, effective March 21, 2013.
Legislative Research Commission Note (3/21/2013). Under the authority of KRS
7.136, the Reviser of Statutes has corrected manifest clerical or technical errors in
this statute. In subsection (1)(c)1.d.i., the word "the" has been inserted before
"special purpose governmental entity." In subsection (2)(a)1., the words "vote or"
have been changed to read "vote of." In subsection (2)(c)5., the word "a" has been
inserted before "utility," and in subsection (2)(d), the word "of" has been inserted
before "the vote or votes."
Legislative Research Commission Note (3/21/2013). In subsection (2)(c)4. of this
statute, a reference to "subparagraph 5." has been changed to read "subparagraph 6."
During the drafting of the bill that created this statute (2013 Ky. Acts ch. 40, sec. 5),
the former subparagraph 5. was renumbered as subparagraph 6., but an internal
reference to subparagraph 5. was not corrected. In codifying this section, the Reviser
of Statutes has made this correction pursuant to KRS 7.136(1).
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