KRS 353.404: Creation of natural gas acquisition authority -- Components of agreement

-- Public agency status -- Election of authority formation method.

(1) Any two (2) or more municipal utilities may enter into an agreement pursuant to

KRS 65.240 for the creation of a gas acquisition authority to accomplish their joint

and cooperative action in the acquisition, transportation, storage, and management

of natural gas and in related services and functions which are necessary or desirable

to provide adequate, dependab le, and economical supplies of natural gas. The

agreement shall:

(a) Specify the matters required by KRS 65.250(1);

(b) Be approved by resolution by the governing body of each municipal utility

that is a party to the agreement;

(c) Prior to and as a condition precedent to its entry into force, be submitted to the

appropriate state agency, which shall determine whether the agreement is in

proper form and compatible with the laws of the Commonwealth, including

this chapter, in the manner specified in KRS 65.260(2); and

(d) Be filed as provided in KRS 65.290.

(2) An agreement creating a gas acquisition authority or an amendment to an agreement

previously entered into under the Interlocal Cooperation Act, KRS 65.210 to

65.300:

(a) Shall establish the governing b ody of the authority and authorize it to adopt

bylaws and establish committees for the conduct of its business;

(b) May provide for one (1) or more classes of members of the authority and that

additional municipal utilities may become members of the authority; and

(c) Shall provide that the authority shall remain in existence until the later of fifty

(50) years from the date of the agreement or amendment, or one (1) year after

the authority has fully paid and discharged all of its indebtedness and has fully

performed all of its contractual obligations.

(3) A gas acquisition authority shall constitute an agency and instrumentality for

accomplishing essential government functions of the municipal utilities creating and

establishing it, shall be a political sub division and a public body corporate of the

Commonwealth, and shall be a public agency within the meaning of KRS 65.230. A

gas acquisition authority is subject to the open meeting laws of KRS 61.800 to

61.850, and the public record laws of KRS 61.870 to 61 .884, provided that the

bylaws of the authority may specify that committees of its governing body may

conduct meetings through telephone conference under standards and procedures

consistent with video teleconferences under KRS 61.826.

(4) Any separate lega l entity previously created pursuant to KRS 65.240 of the

Interlocal Cooperation Act to provide supplies of natural gas to two (2) or more

municipal utilities in the Commonwealth may elect to become a gas acquisition

authority upon:

(a) The adoption of app roving resolutions by its governing body and the

governing body of the municipal utilities; and

(b) The filing of the resolutions in their official records and with the Secretary of

State.

An election under this subsection shall not modify, limit, or affe ct the validity or

enforceability of any contract, bond, or obligation previously executed or incurred

by the separate legal entity.