175B.030 Projects connecting Kentucky and an adjoining state -- Bi-state
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/ky/175b-030A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
authority -- Formation -- Members -- Bi-state agreement -- Financial plan --
Legislative findings and declarations -- Approval of project connecting
Kentucky and Ohio.
(a)1. This section shall apply to any project that connects Kentucky with
any state that adjoins the Commonwealth. A proposal to construct a
project that connects Kentucky with an adjoining state shall be
contained in a financing plan prepared pursuant to subsection
(6)of
this section. If approved, the project shall be constructed under the
supervision of the state authority, a bi-state authority, or both, and
may be financed by the state authority, a bi-state authority, a
public-private partnership, or any combination of these.
2. If the state authority, operating pursuant to KRS 175B.020,
participates in any capacity in the construction or financing of a
project that connects Kentucky with an adjoining state, the state
authority may assume all or part of the role of the bi-state authority
relative to that project.
(b)Subsections
(2)to
(4)of this section shall only apply to a bi-state
authority.
(c)Subsections
(1)and
(5)to
(8)of this section shall apply to both a bi-state
authority and a public-private partnership.
(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 an adjoining state 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 adjoining state 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
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.
(e)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.
(a)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.
(b)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.
(c)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.
(a)Members of a bi-state authority appointed from the Commonwealth shall
be considered public servants subject to KRS Chapter 11A.
(b)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.
(c)The following individuals or entities shall be prohibited from entering into
any contract or agreement with a bi-state authority or a public-private
partnership:
1. Any member of the bi-state authority appointed to represent the
Commonwealth or any member of the state authority, a project
authority, or a public-private partnership;
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, a project authority, or a
public-private partnership; and
3. Any corporation, limited liability entity, or other business entity of
which a person identified in subparagraph 1. or 2. of this paragraph
is an owner, member, or partner or has any other ownership
interest.
(d)A bi-state authority or public-private partnership shall comply with the
procurement laws of both states that are a party to the agreement
creating the bi-state authority or public-private partnership, 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 or public-private partnership 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 or public-private partnership shall comply with the
laws of both states concerning the conduct of open meetings, including
KRS 61.805 to 61.850.
(a)Prior to the execution of any agreements for the construction of the
project, the state authority, the bi-state authority, a public-private
partnership, or any combination of these, if appropriate, shall prepare a
financial plan specifying the construction and financing parameters of the
project, including:
1. A timeline for construction of the project, including financing
requirements throughout the construction of the project;
2. The amount and duration of per-vehicle tolls;
3. Expected appropriations from the General Assembly to be used for
project costs; however, no financial plan shall be submitted or
approved which seeks or purports to bind any future General
Assembly to appropriate any moneys beyond those appropriated in
the most recently enacted biennial highway construction plan;
4. Other sources of funds and expected amounts; and
5. Other provisions relating to the construction and financing of the
project.
(b)1. If the financial plan is prepared by a bi-state authority, 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.
2. If the financial plan is prepared by the state authority, the 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. If the financial plan is viable based on all
information available to the state authority, the state authority shall
recommend the plan.
3. If the financial plan is prepared by a public-private partnership, the
public-private partnership 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 public-private partnership, the plan shall be
submitted to the state authority for approval.
(c)The state authority shall not approve or recommend a financial plan
which seeks or purports to bind any future General Assembly to
appropriate any moneys beyond those appropriated in the most recently
enacted biennial highway construction plan. If the financial plan is
approved or recommended 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.
(d)Every financial plan prepared pursuant to this section shall include an
evaluation of the ability of a potential contractor or service provider to
quickly respond to the needs presented in a major transportation project,
and the importance of economic development opportunities represented
by the construction of any project under this chapter. In evaluating
proposals, preference shall be given to a plan that includes the
involvement of small businesses as subcontractors, to the extent that
small businesses can provide services in a competitive manner, unless
any preference interferes with the qualification for federal funds.
(a)Upon approval or recommendation 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 or public-private partnership to submit
an annual report to the cabinet and the Legislative Research
Commission;
2. Require that an annual audit of the bi-state authority or
public-private partnership be performed by a certified public
accountant;
3. 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 seeks or purports to bind any
future General Assembly to appropriate any moneys beyond those
appropriated in the most recently enacted biennial highway
construction plan;
7. If applicable, 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 or, if the project utilizes a public-private partnership, upon
termination of that partnership; and
8. a. For a bi-state authority, 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; or
b. For a public-private partnership, require approval of the cabinet
before any action may be taken or any changes may be made
by the public-private partnership.
(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.
(d)The development agreement may take the form of a public-private
partnership agreement.
(8)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
or public-private partnership 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.
(9)The state authority shall not enter into a public-private partnership related to a
project connecting the Commonwealth with the State of Ohio unless the
General Assembly expressly authorizes it by passing a joint resolution.