{"data":{"id":"us-ky/krs-175b.030","jurisdiction":"us-ky","citation":"KRS 175B.030","heading":"Projects connecting Kentucky  and an adjoining state -- Bi-state","body":"authority -- Formation -- Members  -- Bi-state agreement -- Financial plan --\nLegislative findings and declarations -- Approval of project connecting\nKentucky  and Ohio.\n(1) (a) 1. This section shall apply to any project that connects Kentucky with\nany state that adjoins the Commonwealth. A proposal to construct a\nproject that connects Kentucky with an adjoining state shall be\ncontained in a financing plan prepared pursuant to subsection (6) of\nthis section. If approved, the project shall be constructed under the\nsupervision of the state authority, a bi-state authority, or both, and\nmay  be financed by the state authority, a bi-state authority, a\npublic-private partnership, or any combination of these.\n2. If the state authority, operating pursuant to KRS  175B.020,\nparticipates in any capacity in the construction or financing of a\nproject that connects Kentucky with an adjoining state, the state\nauthority may assume all or part of the role of the bi-state authority\nrelative to that project.\n(b) Subsections (2) to (4) of this section shall only apply to a bi-state\nauthority.\n(c) Subsections (1) and (5) to (8) of this section shall apply to both a bi-state\nauthority and a public-private partnership.\n(2) (a) A local government that contains a portion of a proposed project may, by\nresolution of its governing body, request that its chief executive officer\nand the Governor appoint a group of Kentucky members  to negotiate with\na similar group from an adjoining state for the purpose of proposing the\ncreation of a bi-state authority composed  of members  from both states,\nrecognized under the laws of both states, and existing for the purpose of\nfinancing, constructing, and operating a project or projects mutually\nbeneficial to both states.\n(b) If established, the Kentucky membership of the bi-state authority shall\nconsist of seven (7) members, three (3) of whom  shall be appointed by\nthe Governor, and four (4) of whom  shall be appointed by the chief\nexecutive of the local government in which the project is located. The four\n(4) local government appointees shall be residents of the county in which\nthe project is located. If a project is located in a consolidated local\ngovernment, no more than two (2) appointees shall reside in the same\nKentucky senatorial district. If portions of the project are located in more\nthan one (1) local government, the chief executive of the county or\nconsolidated local government having the largest population shall make\nthe appointments authorized in this paragraph.\n(c) Any  proposed agreement  to establish a bi-state authority shall be\npresented to the state authority for approval. If the state authority\napproves the agreement, it shall be submitted to the General Assembly\nfor ratification. If the agreement is ratified by the General Assembly, the\nstate authority shall authorize the establishment of a bi-state authority and\nshall enter into an agreement with the adjoining state for the creation of a\nbi-state authority.\n(3) (a) Kentucky members  of a proposed bi-state authority who are appointed by\nthe Governor shall be confirmed by the Senate in accordance with KRS\n11.160.  Members  appointed by  the chief executive of the local\ngovernment  shall be confirmed by the governing body of the local\ngovernment.\n(b) At least two (2) of the Governor's appointees and two (2) of the chief\nexecutive's appointees shall be familiar with road and bridge design or\nfinancing and administration of transportation infrastructure projects.\n(c) Members  of a bi-state authority appointed by the Governor shall serve for\nfour (4) years, except that initial appointments shall be as follows:\n1. One  (1) appointee shall serve a term of two (2) years;\n2. One  (1) appointee shall serve a term of three (3) years; and\n3. One  (1) appointee shall serve a term of four (4) years.\n(d) The governing body of the local government requesting formation of the\nbi-state authority shall, by resolution, establish term lengths for the initial\nand succeeding members  who are locally appointed, with each term not\nto exceed four (4) years.\n(e) Members  of a bi-state authority representing the Commonwealth  may be\nreappointed upon the expiration of their terms. Members  reappointed\nshall be reconfirmed in the same manner as newly appointed members.\n(4) (a) An agreement establishing a bi-state authority shall at a minimum:\n1. Establish the total number of members  of the bi-state authority;\n2. Establish staffing and funding to support the work of the bi-state\nauthority;\n3. Designate the process for selecting a presiding officer of the bi-state\nauthority, which shall include a requirement that a member  from\neach state share the duties of presiding; and\n4. Require the approval of a majority of the members  from each state\nbefore any action may be taken or any change may be made by the\nbi-state authority.\n(b) A  bi-state authority created pursuant to this section shall take the legal\nform necessary to conform to the laws of both states. The Commonwealth\nshall consider the bi-state authority to be an independent de jure\nmunicipal  corporation, constituting a  governmental  agency  and\ninstrumentality of the appropriate jurisdictions. The bi-state authority shall\nadopt a name indicative of its location and purpose.\n(c) Any  bi-state agreement  approved pursuant to this section may  be\npresented to the United States Congress for consent thereof by joint\nresolution as provided in Article 1, Section 10, Clause 3 of the United\nStates Constitution.\n(5) (a) Members  of a bi-state authority appointed from the Commonwealth  shall\nbe considered public servants subject to KRS Chapter 11A.\n(b) Members  of a bi-state authority appointed from the Commonwealth  shall\nreceive no compensation for their services, but shall be entitled to\nreimbursement for all reasonable expenses necessary and incidental to\nthe performance of their duties and functions as members  of the bi-state\nauthority.\n(c) The following individuals or entities shall be prohibited from entering into\nany  contract or agreement with a bi-state authority or a public-private\npartnership:\n1. Any  member  of the bi-state authority appointed to represent the\nCommonwealth  or any member  of the state authority, a project\nauthority, or a public-private partnership;\n2. Any  spouse, child, stepchild, parent, stepparent, or sibling of a\nmember  of the bi-state authority appointed to represent the\nCommonwealth  or any spouse, child, stepchild, parent, stepparent,\nor sibling of a member  of the state authority, a project authority, or a\npublic-private partnership; and\n3. Any  corporation, limited liability entity, or other business entity of\nwhich a person identified in subparagraph 1. or 2. of this paragraph\nis an owner, member,  or partner or has any other ownership\ninterest.\n(d) A  bi-state authority or public-private partnership shall comply with the\nprocurement laws of both states that are a party to the agreement\ncreating the bi-state authority or public-private partnership, including the\nprovisions of KRS  Chapter 45A, in the development of a project and the\nprocurement of goods and services.\n(e) A  bi-state authority or public-private partnership shall comply with the\nlaws of both states concerning the inspection and disclosure of public\nrecords, including KRS 61.870 to 61.884.\n(f) A  bi-state authority or public-private partnership shall comply with the\nlaws of both states concerning the conduct of open meetings, including\nKRS  61.805 to 61.850.\n(6) (a) Prior to the execution of any agreements for the construction of the\nproject, the state authority, the bi-state authority, a  public-private\npartnership, or any combination of these, if appropriate, shall prepare a\nfinancial plan specifying the construction and financing parameters of the\nproject, including:\n1. A  timeline for construction of the project, including financing\nrequirements throughout the construction of the project;\n2. The amount and duration of per-vehicle tolls;\n3. Expected appropriations from the General Assembly to be used for\nproject costs; however, no financial plan shall be submitted or\napproved  which seeks or purports to bind any future General\nAssembly to appropriate any moneys beyond those appropriated in\nthe most recently enacted biennial highway construction plan;\n4. Other sources of funds and expected amounts; and\n5. Other provisions relating to the construction and financing of the\nproject.\n(b) 1. If the financial plan is prepared by a bi-state authority, the Kentucky\nmembers  of the bi-state authority shall consult with the involved\nlocal governments in Kentucky, the department, and the Finance\nand Administration Cabinet, Office of Financial Management, during\nthe  development  of the financial plan. Upon  completion and\napproval of the financial plan by the bi-state authority, the plan shall\nbe submitted to the state authority for approval.\n2. If the financial plan is prepared by the state authority, the state\nauthority shall consult with the involved local governments  in\nKentucky, the department, and the Finance and Administration\nCabinet, Office of Financial Management, during the development of\nthe financial plan. If the financial plan is viable based  on all\ninformation available to the state authority, the state authority shall\nrecommend  the plan.\n3. If the financial plan is prepared by a public-private partnership, the\npublic-private partnership shall consult with the involved local\ngovernments  in Kentucky, the department, and the Finance and\nAdministration Cabinet, Office of Financial Management, during the\ndevelopment of the financial plan. Upon completion and approval of\nthe financial plan by the public-private partnership, the plan shall be\nsubmitted to the state authority for approval.\n(c) The  state authority shall not approve or recommend  a financial plan\nwhich  seeks or purports to bind any  future General Assembly  to\nappropriate any moneys beyond those appropriated in the most recently\nenacted  biennial highway construction plan. If the financial plan is\napproved or recommended  by the state authority, the cabinet and, as\nnecessary, other state agencies or local governments may enter into a\ndevelopment agreement as provided in subsection (7) of this section with\nall necessary parties for the development of a project.\n(d) Every financial plan prepared pursuant to this section shall include an\nevaluation of the ability of a potential contractor or service provider to\nquickly respond to the needs presented in a major transportation project,\nand the importance of economic development opportunities represented\nby  the construction of any project under this chapter. In evaluating\nproposals, preference shall be  given to a  plan that includes the\ninvolvement of small businesses as subcontractors, to the extent that\nsmall businesses can provide services in a competitive manner, unless\nany preference interferes with the qualification for federal funds.\n(7) (a) Upon  approval or recommendation of the financial plan as provided in\nsubsection (6) of this section, a development agreement may be entered\ninto establishing the terms and conditions under which a project will be\nundertaken and the duties, responsibilities, powers, and authorities of the\nparties to the agreement. The  development agreement  shall, at a\nminimum:\n1. Require the bi-state authority or public-private partnership to submit\nan  annual report to the cabinet and  the Legislative Research\nCommission;\n2. Require  that an  annual  audit of the  bi-state authority or\npublic-private partnership be  performed by  a  certified public\naccountant;\n3. Include the relevant provisions from the financial plan required by\nsubsection (6) of this section;\n4. Include  provisions detailing the  duties, responsibilities, and\nobligations of each party in relation to the financing, development,\noperation, and maintenance of the project, and the servicing and\nretirement of all bonds;\n5. Establish limits on  any  reserve funds created for operation,\nmaintenance, or bond  servicing, which shall be at a level to\nadequately operate and maintain the project and ensure proper\nbond servicing;\n6. Prohibit the amendment  of the project or the financial plan without\nthe  prior evaluation and  approval by  the state authority. No\namendment  shall be approved that seeks or purports to bind any\nfuture General Assembly to appropriate any moneys beyond those\nappropriated in the most  recently enacted  biennial highway\nconstruction plan;\n7. If applicable, establish a process for the transfer of ownership of the\nportion of the project that is within the Commonwealth  to the\nCommonwealth  upon retirement of all bonds associated with the\nproject or, if the project utilizes a public-private partnership, upon\ntermination of that partnership; and\n8. a. For a bi-state authority, require the approval of a majority of\nthe members  from each state before any action may be taken\nor any changes may be made by the bi-state authority; or\nb. For a public-private partnership, require approval of the cabinet\nbefore any action may be taken or any changes may be made\nby the public-private partnership.\n(b) The parties to the agreement from the Commonwealth  shall consult with\nthe department and the Finance and Administration Cabinet, Office of\nFinancial Management, in the development of the agreement.\n(c) Additional agreements may be executed, as necessary to complete the\nproject.\n(d) The  development agreement may  take the form of a public-private\npartnership agreement.\n(8) The  General Assembly hereby finds and declares that in carrying out the\nfunctions, powers, and duties as prescribed in this chapter, a bi-state authority\nor public-private partnership authorized under this section will be performing\nessential public and government functions that improve the public welfare and\nprosperity of the people of the Commonwealth  by promoting the availability of\nand  enhancing accessibility to improved transportation services within the\nCommonwealth.\n(9) The state authority shall not enter into a public-private partnership related to a\nproject connecting the Commonwealth  with the State of Ohio unless the\nGeneral Assembly expressly authorizes it by passing a joint resolution.","path":["KRS Chapter 175B"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=45602","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:26Z","sha256":"cc3f51604e6d19c2b8bf0544bb11ceb59e8899f6222644171cff507f89ce9183","source_id":"us-ky","stale":false,"prev":"us-ky/krs-175b.025","next":"us-ky/krs-175b.035"},"notice":"GroundRules: Original legal text. Not legal advice."}