KRS 65A.010: Definitions for chapter. (Effective until July 1, 2027)

As used in this chapter:

(1) "County" means any county, consolidated local government, urban -county

government, unified local government, or charter county;

(2) "DLG" means the Depa rtment for Local Government established by KRS

147A.002;

(3) "Establishing entity" means the city or county, or any combination of cities and

counties, that established a special purpose governmental entity and that has not

subsequently withdrawn its affiliation with the special purpose governmental entity

by ordinance or other official action;

(4) "Federally regulated municipal utility" means a municipal utility governed by the

provisions of KRS 96.550 to 96.901, that maintains a wholesale power contract

with a federal agency that also serves as its regulatory authority;

(5) (a) "Fee" means any user charge, levy, assessment, fee, schedule of rates, or tax,

other than an ad valorem tax, imposed by a special purpose governmental

entity.

(b) "Fee" shall not in clude the following charges imposed by special purpose

governmental entities that provide utility services:

1. Any fuel cost adjustment that is:

a. Made pursuant to an agreement with a power supplier;

b. Amended by the power supplier based on the variable cost of fuel;

and

c. Passed through to the consumer by the utility pursuant to the

agreement between the utility and the power supplier;

2. Any power or energy cost adjustment implemented pursuant to a du ly

adopted base rate that provides for the periodic adjustment of a

component of the rate, including any fuel costs or transmission costs, in

accordance with the formula or conditions set forth in the base rate; or

3. Any environmental control cost adjustm ents or surcharges implemented

pursuant to a duly adopted base rate that provides for the periodic

adjustment of a component of the rate in accordance with a formula or

conditions set forth in the base rate;

(6) (a) "Private entity" means any entity whose sole source of public funds is from

payments pursuant to a contract with a city, county, or special purpose

governmental entity, including funds received as a grant or as a result of a

competitively bid procurement process.

(b) "Private entity" does not include any entity:

1. Created, wholly or in part, by a city, county, or combination of cities

and counties to perform one (1) or more of the types of public services

listed in subsection (9)(c) of this section; or

2. Governed by a board, council, commission , committee, authority, or

corporation with any member or members who are appointed by the

chief executive or governing body of a city, county, or combination of

cities and counties, or whose voting membership includes governmental

officials who serve in an ex officio capacity;

(7) "Public funds" means any funds derived from the levy of a tax, fee, assessment, or

charge, or the issuance of bonds by the state or a city, county, or special purpose

governmental entity;

(8) "Registry" means the online central r egistry and reporting portal established

pursuant to KRS 65A.020; and

(9) (a) "Special purpose governmental entity" or "entity" means any agency,

authority, or entity created or authorized by statute which:

1. Exercises less than statewide jurisdiction;

2. Exists for the purpose of providing one (1) or a limited number of

services or functions;

3. Is governed by a board, council, commission, committee, authority, or

corporation with policy -making authority that is separate from the state

and the governing b ody of the city, county, or cities and counties in

which it operates; and

4. a. Has the independent authority to generate public funds; or

b. May receive and expend public funds, grants, awards, or

appropriations from the state, from any agency, or authori ty of the

state, from a city or county, or from any other special purpose

governmental entity.

(b) "Special purpose governmental entity" shall include entities meeting the

requirements established by paragraph (a) of this subsection, whether the

entity is formed as a nonprofit corporation under KRS Chapter 273, pursuant

to an interlocal cooperation agreement under KRS 65.210 to 65.300, or

pursuant to any other provision of the Kentucky Revised Statutes.

(c) Examples of the types of public services that may be provided by special

purpose governmental entities include but are not limited to the following:

1. Ambulance, emergency, and fire protection services;

2. Flood control, drainage, levee, water, and water conservation services,

and services provided by wa tershed conservancy districts and soil and

water conservation districts;

3. Area planning, management, community improvement, and community

development services;

4. Library services;

5. Public health, public mental health, and public hospital services;

6. Riverport and airport services;

7. Sanitation, sewer, waste management, and solid waste services;

8. Industrial and economic development;

9. Parks and recreation services;

10. Construction, maintenance, or operation of roads and bridges;

11. Mass transit services;

12. Pollution control;

13. Construction or provision of public housing, except as set out in

paragraph (d)8. of this subsection;

14. Tourism and convention services; and

15. Agricultural extension services.

(d) "Special purpose governmental entity" shall not include:

1. Cities;

2. Counties;

3. School districts;

4. Private entities;

5. Chambers of commerce;

6. Any incorporated entity that:

a. Provides utility services;

b. Is member-owned; and

c. Has a governing body whose voting members are all elected by the

membership of the entity;

7. Any entity whose budget, finances, and financial information are fully

integrated with and included as a part of the budget, finances, a nd

financial reporting of the city, county, or cities and counties in which it

operates;

8. Federally regulated public housing authorities established pursuant to

KRS Chapter 80 that receive no more than twenty percent (20%) of their

total funding for any fiscal year from nonfederal fees, not including

rental income; or

9. a. Any fire protection district or volunteer fire department district

operating under KRS Chapter 75 with the higher of annual receipts

from all sources or annual expenditures of less tha n one hundred

thousand dollars ($100,000); or

b. Any fire department incorporated under KRS Chapter 273.

Effective: June 27, 2025