175B.030 Projects connecting Kentucky and Indiana -- Bi-state authority -- Formation -- Members -- Bi-state agreement -- Financial plan -- Legislative findings and declarations. - Kentucky Statutes

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Page 1 of 4 175B.030 Projects connecting Kentucky and Indiana -- Bi-state authority -- Formation -- Members -- Bi-state agreement -- Financial plan -- Legislative
findings and declarations. (1) 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. (2) (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. (3) (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. Page 2 of 4 (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. (4) (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. (5) (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:
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 Page 3 of 4 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 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. (6) 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. (7) (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; Page 4 of 4 2. Require that an annual audit of the bi-state authority 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 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. (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 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.