KRS 95A.055: Definitions for section -- Qualifiers for a fire district as a special purpose

governmental entity -- Annual reports to commission -- Penalties for

noncompliance -- Referral of irregularities -- Corrective actions -- Reported

information is publi c record -- Financial review and audit of fire district and

nonprofit fire department -- Administrative regulations -- Annual report.

(1) As used in this section:

(a) "Fire district" means 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 than one hundred thousand

dollars ($100,000); and

(b) "Nonprofit fire department" means any fire department incorporated under

KRS Chapter 273.

(2) If a fire district's annual revenues or expenditures equals or exceeds one hundred

thousand dollars ($100,000) for two (2) consecutive fiscal years, then the fire

district shall, for the next reporting period and any subsequent reporting peri od for

which it exceeds that amount, be considered a special purpose governmental entity

as defined in KRS 65A.010 and shall comply with KRS Chapter 65A until its

annual revenues or expenditures are less than one hundred thousand dollars

($100,000), whereupon it may again qualify as a fire department under this section.

(3) Each fire district shall for each fiscal year beginning on and after July 1, 2016,

annually submit to the commission the information required by this section. The

information shall be su bmitted at the time and in the form and format required by

the commission. The information submitted shall include at a minimum the

following:

(a) Administrative information:

1. The name, address, and, if applicable, the term and appointing authority

for each board member of the governing body of the fire district;

2. The fiscal year of the fire district;

3. The Kentucky Revised Statute and, if applicable, the local government

ordinance under which the fire district was established; the date of

establishment; the establishing entity; and the statute or statutes, local

government ordinance, or interlocal agreem ent under which the fire

district operates, if different from the statute or statutes, ordinance, or

agreement under which it was established;

4. The mailing address and telephone number and, if applicable, the

website uniform resource locator (URL) of the fire district;

5. The operational boundaries and service area of the fire district and the

services provided by the fire district;

6. A listing of the taxes or fees imposed and collected by the fire district,

including the rates or amounts charged for the reporting period and the

statutory or other source of authority for the levy of the tax or fee;

7. The primary contact for the fire district for purposes of communication

with the commission;

8. The code of ethics that applies to the fire district, and wh ether the fire

district has adopted additional ethics provisions;

9. A listing of all federal, state, and local governmental entities that have

oversight authority over the fire district or to which the fire district

submits reports, data, or information; and

10. Any other related administrative information required by the

commission; and

(b) Financial information including budgets and financial expenditure

information that are designed to ensure that all public funds received by the

fire districts are bein g responsibly used. The commission shall, through the

promulgation of an administrative regulation, establish the specific financial

information that shall be filed to meet the requirements of this paragraph.

(4) The commission shall review the reports req uired for fire districts by this section

and, if the commission finds that a report submitted does not comply with the

requirements established by this section and regulations promulgated hereunder, the

commission shall notify the fire district in writing. The notification shall include a

description of the specific deficiencies identified, and shall describe the process the

fire district shall follow to correct the deficiencies, including the time within which

a response must be provided.

(5) The commissio n shall ensure that every fire district or nonprofit fire department

shall at least once every twelve (12) months be subject to a financial review that

shall include procedures developed by the commission and approved by the Auditor

of Public Accounts in a dvance. Subsequent changes to these procedures shall also

be approved by the Auditor of Public Accounts prior to the period in which they are

performed.

(6) The commission may require any fire district or nonprofit fire department with the

higher of annual receipts from all sources or annual expenditures equal to or greater

than one hundred thousand dollars ($100,000) but less than five hundred thousand

dollars ($500,000) to once every four (4) years be subject to an independent audit in

the manner specified in KRS 65A.030(2).

(7) The commission shall ensure that every fire district or nonprofit fire department

with the higher of annual receipts from all sources or annual expenditures equal to

or greater than five hundred thousand dollars ($500,000) for two (2) consecutive

fiscal years is audited annually in the manner specified in KRS 65A.030(2) until its

annual revenues or expenditures are less than five hundred thousand dollars

($500,000).

(8) The Auditor of Public Accounts may, upon request, examine and r eview the reports

and all related work papers and documents relating to a financial review or audit

under this section.

(9) If a fire district or nonprofit fire department fails to comply with this section or

KRS 75.430, then the commission may withhold:

(a) Incentive pay to qualified firefighters under KRS 95A.250;

(b) Volunteer fire department aid, funds used to purchase workers' compensation

insurance for fire districts and nonprofit fire departments, and the low -interest

loans under KRS 95A.262;

(c) Funds from the Thermal Vision and Technical Innovation Grant Program

under KRS 95A.400 to 95A.440; and

(d) Any other funds that the commission controls.

(10) The commission shall report any irregularities relating to the finances or operations

of a fire distr ict or nonprofit fire department that it identifies to the Attorney

General and Auditor of Public Accounts, and the commission may notify any other

public official with jurisdiction over fire districts or nonprofit fire departments for

further investigation and follow-up.

(11) The commission may prescribe corrective actions to bring fire districts or nonprofit

fire departments that are, as of July 15, 2016, not in compliance with KRS Chapter

65A into compliance with this section. Any sanctions imposed by th e Department

for Local Government prior to July 15, 2016, shall be lifted upon notification by the

commission to the department that the fire district or nonprofit fire department in

question has complied with the corrective actions prescribed by the commission.

(12) The information reported by fire districts or nonprofit fire departments under this

section shall be considered public records under KRS 61.872 to 61.884. The

commission shall prominently post on its website the availability of the information

required by this section and shall provide contact information and procedures for

obtaining copies of the information.

(13) The commission shall promulgate administrative regulations in accordance with

KRS Chapter 13A as soon as practicable after July 15, 2016, to implement this

section and KRS 75.430.

(14) By October 1, 2016, and on or before each October 1 thereafter, the commission

shall file an annual report with the Legislative Research Commission detailing the

compliance of the fire districts or nonpr ofit fire departments required to report

under this section with subsection (3) of this section. The Legislative Research

Commission shall refer the report to the Interim Joint Committee on Local

Government for review.