{"data":{"id":"us-ky/krs-175b.035","jurisdiction":"us-ky","citation":"KRS 175B.035","heading":"Development  of projects within Kentucky  -- Project authority --","body":"Financial plan -- Submission  of project for legislative ratification --\nMembership  of  project  authority -- Development  agreement  --\nCommonwealth  owns  project upon  bond  retirement or termination of\npartnership.\n(1) Potential projects that are within Kentucky may  be developed by a project\nauthority as provided in this section, or by a public-private partnership as\nprovided in KRS 175B.037.\n(2) A  local government that contains a portion of a proposed project may, by\nresolution of its governing body, request the state authority to evaluate the\nestablishment of a project authority or a public-private partnership for the\npurpose of developing a project.\n(3) The  state authority may  request that the department evaluate the proposed\nproject by preparation of a financial plan evaluating all aspects of the proposed\nproject, including:\n(a) The most effective location for the project;\n(b) The impact on local governments and citizens at the location of or along\nthe path of the project;\n(c) A detailed analysis of the proposed cost of the project;\n(d) The potential economic impact to the areas affected by the project;\n(e) The anticipated level of use of the project;\n(f) The amount and duration of per-vehicle tolls;\n(g) Expected appropriations from the General Assembly to be used for the\nproject; however, no financial plan shall be submitted or approved which\nseeks or purports to bind any future General Assembly to appropriate any\nmoneys  beyond those appropriated in the most recently enacted biennial\nhighway construction plan;\n(h) The ability of a potential contractor or service provider to quickly respond\nto the needs  presented in a major transportation project, and  the\nimportance of economic development opportunities represented by the\nconstruction of any project under this chapter. In evaluating proposals,\npreference shall be given to a plan that includes the involvement of small\nbusinesses as subcontractors, to the extent that small businesses can\nprovide services in a  competitive manner,  unless any  preference\ninterferes with the qualification for federal funds;\n(i) Other sources of funds and expected amounts; and\n(j) Any  other provisions relating to the construction and financing of the\nproject.\n(4) If, based on the project evaluation prepared pursuant to subsection (3) of this\nsection, the state authority and the department determine that the development\nof the project is economically feasible, the state authority shall submit the\nproposal to the General Assembly for ratification. If ratified by the General\nAssembly, the state authority may request that the Governor establish a project\nauthority in accordance with the following:\n(a) The  project authority shall be established as an independent de jure\nmunicipal corporation and political subdivision of the Commonwealth\nconstituting a  governmental  agency  and  instrumentality of  the\nCommonwealth,  with the power to contract and be contracted with,\nacquire and convey property, sue and be sued, and exercise all of the\nusual  powers  of corporations not inconsistent with the authority's\nspecifically enumerated purpose and duties;\n(b) The  project authority shall adopt a name  that includes the name  of the\nproject and the words \"Project Authority\";\n(c) The project authority shall be composed of seven (7) members, three (3)\nof whom  shall be appointed by the Governor and confirmed by the Senate\nin accordance with KRS  11.160, and four (4) of whom  shall be appointed\nby  the chief executive of the local government  that requested\nestablishment of the project authority and confirmed by resolution of the\nlocal government's governing body;\n(d) Each  member  of the project authority shall be appointed for a period of\nfour (4) years, except that in making initial appointments, the Governor\nshall appoint members  for one (1), three (3), and four (4) years, and the\nchief executive shall appoint two (2) members  each for two (2) and four\n(4) years; and\n(e) At least one (1) 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(5) (a) Within ninety (90) days of its establishment under subsection (4) of this\nsection, the project authority shall convene and organize. The project\nauthority shall elect a chair and a vice chair, who shall be members  of the\nproject authority and  elected by a majority of the project authority\nmembers.  The project authority shall appoint a secretary and a treasurer\nwho  shall not be members  of the project authority, each of whom  shall\nserve  at the pleasure of the project authority and  shall receive\ncompensation as determined and paid by the project authority.\n(b) The  treasurer shall give bond in an amount prescribed by the project\nauthority to the project authority and the state conditioned upon a faithful\naccounting for all the funds coming into the treasurer's custody, with\ncorporate surety given by a surety company  qualified to do business in\nthe state, the premium of which shall be paid by the project authority.\n(c) The  project authority shall maintain an office, and the secretary of the\nproject authority shall maintain in that office complete records of all the\nproject authority's actions and proceedings, which shall be considered\nopen records under KRS 61.870 to 61.884.\n(d) A  project authority shall comply with the applicable provisions of KRS\nChapter 45A in the development of a project and the procurement of\ngoods and services.\n(e) The  meetings of a project authority shall be considered open meetings\npursuant to KRS 61.805 to 61.850.\n(6) A majority of the members  of a project authority shall constitute a quorum for\nthe transaction of business. The members  of a project authority shall receive\nno  compensation for their services in that capacity, but shall be entitled to\nreimbursement for all reasonable expenses necessarily incurred in connection\nwith performance of their duties and functions as members.\n(7) (a) Members  of a project authority shall be considered public servants\nsubject to the provisions of KRS Chapter 11A.\n(b) The following individuals or entities shall be prohibited from entering into\nany  contract or agreement with a project authority or a public-private\npartnership:\n1. Any  member  of a project authority, a bi-state authority, the state\nauthority, or a public-private partnership;\n2. Any  spouse, child, stepchild, parent, stepparent, or sibling of a\nmember  of a project authority, a bi-state authority, the state\nauthority, or a public-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, a member,  a partner, or has any other ownership\ninterest.\n(8) (a) The  state authority shall enter into a development agreement with a\nproject authority or a public-private partnership to establish the terms and\nconditions under which a project will be undertaken. No financial plan\nshall be submitted or approved which seeks or purports to bind any future\nGeneral Assembly to appropriate any moneys beyond those appropriated\nin the most recently enacted biennial highway construction plan.\n(b) The  development agreement shall establish the duties, responsibilities,\nand  powers of the state authority, the project authority, a public-private\npartnership, and, as necessary, the cabinet with regard to the project.\n(c) The development agreement shall include, at a minimum, all information\nnecessary relating to the creation, development, operation, and disposal\nof the project. No financial plan shall be submitted or approved which\nseeks or purports to bind any future General Assembly to appropriate any\nmoneys  beyond those appropriated in the most recently enacted biennial\nhighway construction plan.\n(d) After the proposed project has been approved and set forth in the\ndevelopment agreement, it shall not be changed or expanded without\nevaluation and approval by the state authority and ratification by the\nGeneral Assembly.\n(e) Additional agreements may  be executed, as necessary, between the\nstate authority, the project authority, a public-private partnership, the\ndepartment, and the cabinet.\n(9) The  provisions of this chapter relating to the duties, responsibilities, powers,\nand  authorities of the state authority shall apply to a project authority or a\npublic-private partnership to the extent that the duties, responsibilities, powers,\nand  authorities are required for the project authority or public-private\npartnership to carry out its duties and responsibilities under a development\nagreement.\n(10) Upon  retirement of all bonds associated with a project developed under this\nsection or, if the project utilizes a public-private partnership, upon termination\nof that partnership, the ownership of the project shall be transferred to the\nCommonwealth  pursuant to KRS 175B.095.","path":["KRS Chapter 175B"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=45603","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:26Z","sha256":"3c914b1e5cd3f32b16783184160108b2b2b762d70ef7f5237d02186253d9c001","source_id":"us-ky","stale":false,"prev":"us-ky/krs-175b.030","next":"us-ky/krs-175b.037"},"notice":"GroundRules: Original legal text. Not legal advice."}