KRS 96.740: Election to operate under KRS 96.550 to 96.900 -- Creation of board of

public utilities -- Appointment -- Qualifications -- Incompatibility with other

offices -- Bond -- Oath -- Not to hire relatives.

(1) Any municipality desiring to acquire and oper ate an electric plant under the

provisions of KRS 96.550 to 96.900 or any municipality now owning and operating

an electric plant may elect to operate under the provisions of KRS 96.550 to 96.900

by enacting an ordinance declaring therein the desire and in tention of the

municipality to accept and operate under the provisions of KRS 96.550 to 96.900

and by providing in the ordinance that the municipality accepts and agrees to all of

the provisions of KRS 96.550 to 96.900, and to all of the provisions as they may be

from time to time amended by the acts of the General Assembly of Kentucky. The

ordinance shall further authorize the mayor or chief executive to appoint a board,

subject to the approval of the appointments by the governing body of the

municipality as hereinafter in KRS 96.750 to 96.900 provided. Upon the passage of

the ordinance the mayor or chief executive of any municipality may, with the

approval of the governing body of the municipality, appoint a board of public

utilities, consisting of four (4 ) residents of the municipality who have resided

therein for not less than one (1) year next preceding the date of the appointment.

However, one (1) board member may be appointed who lives in a portion of the

utility's service area that is not within the c ity if that portion contains ten percent

(10%) or more of the utility's customers and that member is a customer of the utility

for not less than one (1) year. The board must be appointed and qualified before the

municipality shall have any authority to pro ceed further under the provisions of

KRS 96.550 to 96.900. The board, when so appointed and qualified, shall be and

hereby is declared to be a body politic and corporate, with perpetual succession; and

may contract and be contracted with, sue and be sued, in and by its corporate name,

and have and use a corporate seal. The name of the board shall be "Electric Plant

Board of the City of __________" (The name of the municipality to be inserted.)

(2) No person shall be appointed a member of the board who has, within the last two

(2) years next before his or her appointment, held any public office, or who is

related within the third degree to the mayor or any member of the governing body of

the municipality.

(3) Neither the board nor the superintendent appointed by the board shall appoint to any

subordinate office which it may create nor employ in any capacity any person who

is related within the third degree to any member of the board or to the mayor of the

municipality or to any member of the governing body of that municipality. No

officer or employee of a municipality shall be eligible for such appointment until at

least one (1) year after the expiration of the term of his or her public office, or

employment, except that the one (1) year waiting period after th e expiration of the

term of public office or employment shall not apply to an employee of a

municipality that is not related within the third degree to the mayor or any member

of the governing body of the municipality, at the time of appointment or

employment by the board.

(4) Except as provided in subsection (1) of this section, the members of the board shall

be citizens, taxpayers, and legal voters of the municipality and shall not at the time

of the appointment be indebted to the municipality either dire ctly or indirectly or be

surety on the official bond of any officer of the municipality.

(5) If at any time during his or her term of office a member of the board becomes a

candidate for or is elected or appointed to any public office, he or she shall

automatically vacate his or her membership from the board, and another person

shall be appointed to his or her place.

(6) The municipality shall pay the cost of securing bonds for board members from a

surety company qualified to do business in Kentucky, and me mbers shall execute

bond in an amount required by resolution of the governing body, and conditioned

upon the faithful performance of their official duties.

(7) Each member of the board shall qualify by taking the oath required by Section 228

of the Constitution.