175B.035 Development of projects within Kentucky -- Project authority --
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/ky/175b-035A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Financial plan -- Submission of project for legislative ratification --
Membership of project authority -- Development agreement --
Commonwealth owns project upon bond retirement or termination of
partnership.
(1)Potential projects that are within Kentucky may be developed by a project
authority as provided in this section, or by a public-private partnership as
provided in KRS 175B.037.
(2)A local government that contains a portion of a proposed project may, by
resolution of its governing body, request the state authority to evaluate the
establishment of a project authority or a public-private partnership for the
purpose of developing a project.
(3)The state authority may request that the department evaluate the proposed
project by preparation of a financial plan evaluating all aspects of the proposed
project, including:
(a)The most effective location for the project;
(b)The impact on local governments and citizens at the location of or along
the path of the project;
(c)A detailed analysis of the proposed cost of the project;
(d)The potential economic impact to the areas affected by the project;
(e)The anticipated level of use of the project;
(f)The amount and duration of per-vehicle tolls;
(g)Expected appropriations from the General Assembly to be used for the
project; 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;
(h)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;
(i)Other sources of funds and expected amounts; and
(j)Any other provisions relating to the construction and financing of the
project.
(4)If, based on the project evaluation prepared pursuant to subsection
(3)of this
section, the state authority and the department determine that the development
of the project is economically feasible, the state authority shall submit the
proposal to the General Assembly for ratification. If ratified by the General
Assembly, the state authority may request that the Governor establish a project
authority in accordance with the following:
(a)The project authority shall be established as an independent de jure
municipal corporation and political subdivision of the Commonwealth
constituting a governmental agency and instrumentality of the
Commonwealth, with the power to contract and be contracted with,
acquire and convey property, sue and be sued, and exercise all of the
usual powers of corporations not inconsistent with the authority's
specifically enumerated purpose and duties;
(b)The project authority shall adopt a name that includes the name of the
project and the words "Project Authority";
(c)The project authority shall be composed of seven
(7)members, three
of whom shall be appointed by the Governor and confirmed by the Senate
in accordance with KRS 11.160, and four
(4)of whom shall be appointed
by the chief executive of the local government that requested
establishment of the project authority and confirmed by resolution of the
local government's governing body;
(d)Each member of the project authority shall be appointed for a period of
four
(4)years, except that in making initial appointments, the Governor
shall appoint members for one (1), three (3), and four
(4)years, and the
chief executive shall appoint two
(2)members each for two
(2)and four
(4)years; and
(e)At least one
(1)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.
(a)Within ninety
(90)days of its establishment under subsection
(4)of this
section, the project authority shall convene and organize. The project
authority shall elect a chair and a vice chair, who shall be members of the
project authority and elected by a majority of the project authority
members. The project authority shall appoint a secretary and a treasurer
who shall not be members of the project authority, each of whom shall
serve at the pleasure of the project authority and shall receive
compensation as determined and paid by the project authority.
(b)The treasurer shall give bond in an amount prescribed by the project
authority to the project authority and the state conditioned upon a faithful
accounting for all the funds coming into the treasurer's custody, with
corporate surety given by a surety company qualified to do business in
the state, the premium of which shall be paid by the project authority.
(c)The project authority shall maintain an office, and the secretary of the
project authority shall maintain in that office complete records of all the
project authority's actions and proceedings, which shall be considered
open records under KRS 61.870 to 61.884.
(d)A project authority shall comply with the applicable provisions of KRS
Chapter 45A in the development of a project and the procurement of
goods and services.
(e)The meetings of a project authority shall be considered open meetings
pursuant to KRS 61.805 to 61.850.
(6)A majority of the members of a project authority shall constitute a quorum for
the transaction of business. The members of a project authority shall receive
no compensation for their services in that capacity, but shall be entitled to
reimbursement for all reasonable expenses necessarily incurred in connection
with performance of their duties and functions as members.
(a)Members of a project authority shall be considered public servants
subject to the provisions of KRS Chapter 11A.
(b)The following individuals or entities shall be prohibited from entering into
any contract or agreement with a project authority or a public-private
partnership:
1. Any member of a project authority, a bi-state authority, the state
authority, or a public-private partnership;
2. Any spouse, child, stepchild, parent, stepparent, or sibling of a
member of a project authority, a bi-state authority, the state
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, a member, a partner, or has any other ownership
interest.
(a)The state authority shall enter into a development agreement with a
project authority or a public-private partnership to establish the terms and
conditions under which a project will be undertaken. 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.
(b)The development agreement shall establish the duties, responsibilities,
and powers of the state authority, the project authority, a public-private
partnership, and, as necessary, the cabinet with regard to the project.
(c)The development agreement shall include, at a minimum, all information
necessary relating to the creation, development, operation, and disposal
of the project. 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.
(d)After the proposed project has been approved and set forth in the
development agreement, it shall not be changed or expanded without
evaluation and approval by the state authority and ratification by the
General Assembly.
(e)Additional agreements may be executed, as necessary, between the
state authority, the project authority, a public-private partnership, the
department, and the cabinet.
(9)The provisions of this chapter relating to the duties, responsibilities, powers,
and authorities of the state authority shall apply to a project authority or a
public-private partnership to the extent that the duties, responsibilities, powers,
and authorities are required for the project authority or public-private
partnership to carry out its duties and responsibilities under a development
agreement.
(10)Upon retirement of all bonds associated with a project developed under this section or, if the project utilizes a public-private partnership, upon termination of that partnership, the ownership of the project shall be transferred to the Commonwealth pursuant to KRS 175B.095.