KRS 65A.050: Administrative dissolution of special purpose governmental entity --

Dissolution by governing body.

(1) (a) As used in this subsection, "entity seeking dissolution" shall mean:

1. The DLG;

2. If the special purpose governmental entity was established by one (1)

county, or by one (1) city, the governing body of the county or city that

established the special purpose governmental entity;

3. If the special purpose governmental entity was established by multiple

counties and cities, the governing bodies of all establishing entities; or

4. If the special purpose governmental entity was established other than by

an establishing entity, the governing body or bodies of the county or

counties in which the special purpose governmental entity provides or

provided services, or operates or operated.

(b) Any special purpose governmental entity that meets at least one (1) of the

following criteria may be administratively dissolved:

1. The special purpose governmental entity has taken no action for two (2)

or more consecutive years;

2. Following a written inquiry from the entity seeking dissolution, the chair

of the special purpose governmental entity either:

a. Notifies the entity seeking dissolution in writing that the special

purpose governmental entity has not had a governing board, or has

not had a sufficient number of governing board members to

constitute a quorum for two (2) or more consecutive years; or

b. Fails to respond to the inquiry within thirty (30) days;

3. The special purpose governmental entity fails to register with the DLG

as required by KRS 65A.090;

4. The special purpose governmental entity fails to file the information

required by KRS 65A.020 for two (2) or more consecutive years; or

5. The governing body of the special purpose governmental entity provides

documentation to the DLG or the governing body or bodies of the

establishing entity that it has unanimously adopted a resolution declaring

the special purpose governmental entity inactive.

(c) To begin the process of administrative dis solution, the entity seeking

dissolution shall provide notification of the proposed administrative

dissolution as provided in this paragraph:

1. The entity seeking dissolution shall:

a. Post a notice of proposed administrative dissolution on the registry

established by KRS 65A.020;

b. For administrative dissolutions under subparagraphs 3., 4., and 5.

of paragraph (b) of this subsection, publish, in accordance with the

provisions of KRS Chapter 424, a notice of proposed

administrative dissolution, with the cost of the publication billed to

the special purpose governmental entity for which administrative

dissolution is sought;

c. Mail a copy of the notice to the registered contact for the special

purpose governmental entity, if any; and

d. Mail a copy of the notice as follows:

i. If the dissolution is sought by the DLG, to the governing

body of the establishing entity or county, and to all entities at

the state level having oversight of or responsibility for the

special purpose governmental entity; and

ii. If t he dissolution is sought by an establishing entity or

county, to the DLG and any other establishing entities or

counties, and to all entities at the state level having oversight

of or responsibility for the special purpose governmental

entity; and

2. The notice shall include:

a. The name of the entity seeking dissolution, and contact

information for the entity;

b. The name of the special purpose governmental entity for which

dissolution is sought;

c. The statutes under which the special purpose governmental entity

was organized and operating;

d. A description of the services provided and the territory of the

special purpose governmental entity;

e. If there is a plan of dissolution as required by paragraph (e) of this

subsection, identification of the place where the plan of dissolution

may be reviewed;

f. A statement that any objections to the administrative dissolution

shall be filed in writing with the entity seeking to dissolve the

special purpose governmental entity within thirty (30) days after

the publi cation date, and the address and process for submitting

such objections; and

g. A statement that if no written objections are received within thirty

(30) days of publication of the notice, the special purpose

governmental entity shall be administratively dissolved.

(d) 1. Any resident living in or owning property in the area served by the

special purpose governmental entity for which dissolution is sought,

who is not a member of the governing body of the special purpose

governmental entity or an immediate family member of a member of the

governing body of the special purpose governmental entity, may file a

written objection to the dissolution with the entity seeking dissolution.

The written objection shall state the specific reasons why the special

purpose g overnmental entity shall not be dissolved, and shall be filed

within thirty (30) days after the posting of the notice on the registry as

required by paragraph (c) of this subsection.

2. a. Upon the passage of thirty (30) days with no objections filed, and

satisfaction of all outstanding obligations of the special purpose

governmental entity, the special purpose governmental entity shall

be deemed dissolved and, if a dissolution plan was required, the

entity seeking dissolution shall proceed to implement the

dissolution plan.

b. Notification of dissolution shall be provided by the entity seeking

dissolution to all other entities listed under paragraph (a) of this

subsection. The DLG shall maintain a list of all dissolved special

purpose governmental entities and the date of dissolution on the

registry established by KRS 65A.020.

3. If written objections are received within thirty (30) days of the

publication on the registry required by paragraph (c) of this subsection,

the dissolution process shall be aborted, and the process established by

subsection (2) of this section shall be utilized if it is determined that

dissolution should still be sought, notwithstanding any other dissolution

process that may exist in the Kentucky Revised Statutes for the type of

special purpose governmental entity for which dissolution is sought.

(e) If the special purpose governmental entity for which administrative

dissolution is sought:

1. Is providing services;

2. Has outstanding liabilities; or

3. Has assets;

the entity seeking dissolution shall, as part of the dissolution process, develop

a dissolution plan that includes, as relevant, provisions addressing the

continuation of services, the satisfaction of all liabilities, and the distribution

of assets of the special purpose governmental entity.

(2) Any special purpose governmental entity not meeting the requirements for

dissolution under subsection (1) of this section, and for which no specific

dissolution provisions apply in the Kentucky Revised Statutes, may be dissolved as

provided in this subsection:

(a) The dissolution of a special purpose governmental entity may be initiated

upon:

1. The affirmative vote of two -thirds (2/3) of the governing body of the

special purpose governmental entity and the adoption of an ordinance by

the affirmative vote of two -thirds (2/3) of the governing body of each

establishing entity;

2. The adoption of an ordinance by an affirmative vote of two -thirds (2/3)

of the governing body of each establishing entity; or

3. If there is n o establishing entity, by the adoption of an ordinance by an

affirmative vote of two -thirds (2/3) of the governing body of each

county in which the special purpose governmental entity provides

services or operates;

(b) Upon initiation of a dissolution afte r an affirmative vote as provided in

paragraph (a) of this subsection, the special purpose governmental entity for

which dissolution is sought shall not assume any new obligations or duties,

contract for any new debt, or levy any additional fees or taxes u nless the new

obligations, duties, debt, fees, or taxes are included in the dissolution plan

required by paragraph (c) of this subsection. Any contract or agreement or

plan for new obligations, duties, debt, fees, or taxes entered into or devised in

violation of this paragraph shall be void;

(c) After voting to commence dissolution of a special purpose governmental

entity, the governing body or bodies initiating the dissolution shall:

1. Develop a dissolution plan which, if adopted by an establishing entity

shall be by ordinance, which shall include but not be limited to:

a. A description of how the necessary governmental services

provided by the special purpose governmental entity will be

provided upon dissolution of the entity or a statement that the

services are no longer needed;

b. A plan for the satisfaction of any outstanding obligations of the

special purpose governmental entity, including the continuation of

any tax levies or fee payments necessary to meet the outstanding

obligations;

c. Assurances from any organization or entity that will be assuming

responsibility for services provided by the special purpose

governmental entity, or that will assume the obligations of the

special purpose governmental entity, that the organization or entity

will, in fact, provide the services or assume the obligations;

d. A plan for the orderly transfer of all assets of the special purpose

governmental entity in a manner that will continue to benefit those

to whom services were provided by the special purpose

governmental entity;

e. A date upon which final dissolution of the special purpose

governmental entity shall occur; and

f. Any other information the governing body wishes to include.

The dissolution plan shall be available for public review at least thirty

(30) days prior to the public hearing required by subparagraph 2. of this

paragraph;

2. Hold a public hearing in each county and city that is participating in the

dissolution to present the proposed dissolution plan and receive

feedback from the public. The time a nd location of the hearing, as well

as the location where a copy of the dissolution plan may be reviewed by

the public prior to the hearing, shall be advertised as provided in KRS

424.130, and shall be posted on the registry established by KRS

65A.020. The hearing shall be held not less than fifteen (15) days, nor

more than thirty (30) days, after the publication of the notice in the

newspaper;

3. Send a copy of the notice required by subparagraph 2. of this paragraph

to the DLG and to any state entity with oversight authority of the special

purpose governmental entity;

4. If the dissolution plan is amended after the public hearing, make the

amended dissolution plan available for public inspection for at least

fifteen (15) days prior to the final vote of the governing body under

subparagraph 6. of this paragraph;

5. If the special purpose governmental entity is a utility as defined in KRS

278.010(3), obtain approval from the Public Service Commission

pursuant to KRS 278.020(6); and

6. Within sixty (60) days a fter the date of the public hearing, finally

approve or disapprove the dissolution of the special purpose

governmental entity and the dissolution plan. Approval shall require:

a. If initiated by the governing board of the special purpose

governmental entity, the affirmative vote of two -thirds (2/3) of the

members of the governing body of the special purpose

governmental entity and the adoption of an ordinance by two -

thirds (2/3) of the members of the governing body of each

establishing entity;

b. The adoption of an ordinance by two -thirds (2/3) of the members

of the governing body of each establishing entity; or

c. If there is no establishing entity, by the adoption of an ordinance

by two-thirds (2/3) of the members of the governing body of each

county in which the special purpose governmental entity provided

services or operated;

(d) The governing body or bodies shall notify the DLG of the outcome of the vote

or votes taken pursuant to subparagraph 6. of paragraph (c) of this subsection;

and

(e) Notwithstanding any other provision of this section, the dissolution of a

special purpose governmental entity shall not be final until all obligations of

the special purpose governmental entity have been satisfied or have been

assumed by another entity.