175B.035 Development of projects within Kentucky -- Project authority -- Financial plan -- Submission of project for legislative ratification -- Membership of project authority -- Development agreemen - Kentucky Statutes

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Page 1 of 3 175B.035 Development of projects within Kentucky -- Project authority -- Financial plan -- Submission of project for legislative ratification --
Membership of project authority -- Development agreement -- Commonwealth
owns project upon bond retirement. (1) Potential projects that are within Kentucky may be developed by a project authority as provided in this section. (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 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
contains expected appropriations by the General Assembly beyond those
appropriated in the most recently enacted biennial highway construction plan; (h) Other sources of funds and expected amounts; and
(i) 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 (3) 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 Page 2 of 3 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. (5) (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. (7) (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: Page 3 of 3 1. Any member of a project authority, a bi-state authority, or the state
authority; 2. Any spouse, child, stepchild, parent, stepparent, or sibling of a member
of a project authority, a bi-state authority, or the state 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 is an
owner, a member, a partner, or has any other ownership interest. (8) (a) The state authority shall enter into a development agreement with a project authority to establish the terms and conditions under which a project will be
undertaken. 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. (b) The development agreement shall establish the duties, responsibilities, and powers of the state authority, the project authority, 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 contains
expected appropriations by the General Assembly 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, 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 to the extent that
the duties, responsibilities, powers, and authorities are required for the project
authority 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, the ownership of the project shall be transferred to the Commonwealth pursuant to
KRS 175B.095. Effective: June 26, 2009
History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 81, effective June 26, 2009.