KRS 157.617: Creation -- Powers -- Members -- Duties.

(1) An independent corporate agency and instrumentality of the Commonwealth is

hereby created and established with all the general corporate powers incidental

thereto. The corporation shall be known as "The School Facilities Construction

Commission" and shall be endowed with perpetual succession and with the power

to contract and to be contracted with, to sue and be sued, to have and to use a

corporate seal, to adopt bylaws and regulations, subject to the provisions of KRS

Chapter 13A, for the orderly conduct of its affairs.

(2) The commission shall consist of the secretary of the Finance and Administration

Cabinet and eight (8) members appointed by the Governor. The members shall

possess a knowledge of long -term debt financing or school facility planning and

construction. Appointment shall become effective on January 1 and end on

December 31, except the initial appointments shall become effective when made by

the Governor. Members shall serve staggered six (6) year terms, except when

making the initial appointme nts three (3) members shall be appointed for six (6)

year terms, three (3) members shall be appointed for four (4) year terms, and two

(2) members shall be appointed for two (2) year terms. The Governor shall appoint

a chairman and vice chairman for the fi rst year; thereafter a chairman and vice

chairman shall be elected annually by the membership. The commission may elect

other officers it considers necessary and shall employ a director and staff necessary

to manage the program.

(3) If any of the officers of the commission whose signatures or facsimiles thereof

appear on any bonds of the commission, or on any other instruments or documents

pertaining to the functions of the commission, shall cease to be such officers before

delivery of the bonds, or before the effective date or occasion of such instruments

or documents, the signatures, and facsimiles thereof, shall nevertheless be valid for

all purposes the same as if the officers had remained in office until such delivery or

effective date or occasion.

(4) Officers, employees, and agents of the commission having custody of money shall

at all times be bonded to the maximum amount reasonably anticipated to be held at

any one (1) time; and each bond shall have good corporate surety, provided by a

surety company authorized to do business in the Commonwealth, to be approved in

each instance by the commission. Premiums for such surety shall be paid from the

budgeted funds of the commission.

(5) The commission shall at all times keep and maintain books of record and account

reflecting accurately all its financial transactions. The commission shall be audited

annually and shall submit a written report of its activities to the Governor. A copy

of each report shall be filed with the Legislative Research Commission.

(6) Moneys received by the commission as rentals under any lease, and from the sale of

bonds are declared not to be funds of the Commonwealth, but shall be corporate

funds of the commission to be held, administered, invested, and disbursed as trust

funds under the terms, provisions, pledges, covenants, and agreements set forth in

its leases and bond resolutions and bonds.

(7) The commission and all of its transactions, activities, and proceedings in the

authorization and issuance of its bonds, execution of leas es, acceptance of

conveyances of property, transaction of conveyances of property, and otherwise,

shall be exempt from all provisions relating to custodianship by the Secretary of

State of title documents, leases, abstracts of title, maps, and other record s as

provided in KRS 56.020 and 56.320. Conveyances of property to or by the

commission shall not be deemed to be conveyances to or by the Commonwealth,

and title to any property acquired by the commission shall be held by the

commission in its own name.

(8) The Finance and Administration Cabinet shall provide technical assistance to the

commission in the issuance of bonds.