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

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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 <br>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 <br>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 <br>the Governor appoint a group of Kentucky members to negotiate with a <br>similar group from the state of Indiana for the purpose of proposing the <br>creation of a bi-state authority composed of members from both states, <br>recognized under the laws of both states, and existing for the purpose of <br>financing, constructing, and operating a project or projects mutually beneficial <br>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, <br>and four (4) of whom shall be appointed by the chief executive of the local <br>government in which the project is located. The four (4) local government <br>appointees shall be residents of the county in which the project is located. If a <br>project is located in a consolidated local government, no more than two (2) <br>appointees shall reside in the same Kentucky senatorial district. If portions of <br>the project are located in more than one (1) local government, the chief <br>executive of the county or consolidated local government having the largest <br>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, <br>it shall be submitted to the General Assembly for ratification. If the agreement <br>is ratified by the General Assembly, the state authority shall authorize the <br>establishment of a bi-state authority and shall enter into an agreement with the <br>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. <br>Members appointed by the chief executive of the local government shall be <br>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 <br>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: <br>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 <br>succeeding members who are locally appointed, with each term not to exceed <br>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 <br>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 <br>authority; 3. Designate the process for selecting a presiding officer of the bi-state <br>authority, which shall include a requirement that a member from each <br>state share the duties of presiding; and 4. Require the approval of a majority of the members from each state <br>before any action may be taken or any change may be made by the bi-<br>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 <br>consider the bi-state authority to be an independent de jure municipal <br>corporation, constituting a governmental agency and instrumentality of the <br>appropriate jurisdictions. The bi-state authority shall adopt a name indicative <br>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 <br>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 <br>reimbursement for all reasonable expenses necessary and incidental to the <br>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: <br>1. Any member of the bi-state authority appointed to represent the <br>Commonwealth or any member of the state authority or a project <br>authority; 2. Any spouse, child, stepchild, parent, stepparent, or sibling of a member <br>of the bi-state authority appointed to represent the Commonwealth or <br>any spouse, child, stepchild, parent, stepparent, or sibling of a member <br>of the state authority or a project authority; and Page 3 of 4 3. Any corporation, limited liability entity, or other business entity of <br>which a person identified in subparagraph 1. or 2. of this paragraph is an <br>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 <br>provisions of KRS Chapter 45A, in the development of a project and the <br>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 <br>plan specifying the construction and financing parameters of the project, including: <br>(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; <br>(c) Expected appropriations from the General Assembly to be used for project costs; however, no financial plan shall be submitted or approved which <br>contains expected appropriations by the General Assembly beyond those <br>appropriated in the most recently enacted biennial highway construction plan; (d) Other sources of funds and expected amounts; and <br>(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 <br>local governments in Kentucky, the department, and the Finance and <br>Administration Cabinet, Office of Financial Management, during the development <br>of the financial plan. Upon completion and approval of the financial plan by the bi-<br>state authority, the plan shall be submitted to the state authority for approval. The <br>state authority shall not approve a financial plan which contains expected <br>appropriations by the General Assembly beyond those appropriated in the most <br>recently enacted biennial highway construction plan. If the financial plan is <br>approved by the state authority, the cabinet and, as necessary, other state agencies or <br>local governments may enter into a development agreement as provided in <br>subsection (7) of this section with all necessary parties for the development of a <br>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 <br>and conditions under which a project will be undertaken and the duties, <br>responsibilities, powers, and authorities of the parties to the agreement. The <br>development agreement shall, at a minimum: <br>1. Require the bi-state authority to submit an annual report to the cabinet <br>and the Legislative Research Commission; Page 4 of 4 2. Require that an annual audit of the bi-state authority be performed by a <br>certified public accountant; 3. Include the relevant provisions from the financial plan required by <br>subsection (6) of this section; 4. Include provisions detailing the duties, responsibilities, and obligations <br>of each party in relation to the financing, development, operation, and <br>maintenance of the project, and the servicing and retirement of all <br>bonds; 5. Establish limits on any reserve funds created for operation, maintenance, <br>or bond servicing, which shall be at a level to adequately operate and <br>maintain the project and ensure proper bond servicing; 6. Prohibit the amendment of the project or the financial plan without the <br>prior evaluation and approval by the state authority. No amendment shall <br>be approved that provides for expected appropriations by the General <br>Assembly beyond those appropriated in the most recently enacted <br>biennial highway construction plan; 7. Establish a process for the transfer of ownership of the portion of the <br>project that is within the Commonwealth to the Commonwealth upon <br>retirement of all bonds associated with the project; and 8. Require the approval of a majority of the members from each state <br>before any action may be taken or any changes may be made by the bi-<br>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 <br>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 <br>under this section will be performing essential public and government functions that <br>improve the public welfare and prosperity of the people of the Commonwealth by <br>promoting the availability of and enhancing accessibility to improved transportation <br>services within the Commonwealth. Effective: June 26, 2009 <br>History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 80, effective June 26, 2009.