KRS 136.658: Local Distribution Fund Oversight Committee -- Creation and duties.

(1) The Local Distribution Fund Oversight Committee is hereby created and

administratively attached to and staffed by the department. The oversight committee

shall consist of nine (9) members appointed by the Governor and shall be

representative of local gove rnment and state government officials. The Governor

shall receive recommendations for four (4) members each from the Kentucky

Association of Counties and the Kentucky League of Cities from which the

Governor shall select two (2) members each. The Governor shall receive

recommendations for two (2) members each from the Kentucky School Board

Association, the Kentucky Superintendents Association, and the Kentucky School

Administrators Association from which the Governor shall select one (1) member

each. One (1) member shall be appointed by the Governor to represent the interests

of special districts other than school districts. The remaining member shall be the

commissioner of the Department for Local Government, who shall serve as

chairperson of the oversight committee. The members shall serve for a term of three

(3) years. Five (5) members of the oversight committee shall constitute a quorum. A

member may be removed for cause in accordance with procedures established by

the oversight committee and shall serve without salary but shall be reimbursed for

expenses in the same manner as state employees. Any vacancy occurring on the

oversight committee shall be filled by the Governor for the unexpired term.

(2) The duties of the oversight committee shall be:

(a) To m onitor the department's implementation and distribution of funds from

the gross revenues and excise tax fund and the state baseline and local growth

fund and to report its findings to the commissioner of the department; and

(b) To act as a finder of fact for the commissioner of the department in disputes in

and between political subdivisions, school districts, special districts, and

sheriff departments, and between political subdivisions, school districts,

special districts, and sheriff departments, and the department regarding the

implementation and distribution of funds from the gross revenues and excise

tax fund and the state baseline and local growth fund.

(3) The department shall provide the oversight committee with an annual report

reflecting the amounts distributed to each participating political subdivision, school

district, special district, or sheriff department.

(4) Any political subdivision, school district, special district, or sheriff department may

file a complaint and request a hearing with th e oversight committee on a form

prescribed by the committee. The oversight committee shall give notice to any

political subdivision, school district, special district, or sheriff department that may

be affected by the complaint. Any political subdivision, school district, special

district, or sheriff department intending to respond to the complaint shall do so in

writing within thirty (30) days of notice of the complaint.

(5) In conducting its business:

(a) The oversight committee shall give due notice of t he times and places of its

hearings;

(b) The parties shall be entitled to be heard, to present evidence, and to examine

and cross-examine witnesses;

(c) The oversight committee shall act by majority vote;

(d) The oversight committee shall adopt and publish rules of procedure and

practice regarding its hearings; and

(e) The oversight committee shall make written findings and recommendations to

the commissioner of the department.

(6) The commissioner of the department shall review the findings and

recommendations of the oversight committee and issue a final ruling within sixty

(60) days of receipt of the recommendations.

(7) The parties in the dispute shall have the rights and duties to appeal any final ruling

to the Board of Tax Appeals under KRS 49.220.

(8) Nothing contained in this section shall prevent at any time a written compromise of

any matter or matters in dispute, if otherwise lawful, by the parties to the hearing

process.