{"data":{"id":"us-ky/krs-65.058","jurisdiction":"us-ky","citation":"KRS 65.058","heading":"Definitions for section -- Forbearance period after acquisition of public","body":"water or wastewater system -- Duties of acquiring utility -- Duties of Energy\nand Environment Cabinet and Public Service Commission upon expiration of\nforbearance period.\n(1) As used in this section:\n(a) \"Acquiring utility\" means a public water or wastewater system, or a utility\ndescribed in KRS 278.010(3)(d) or (f);\n(b) \"Cabinet\" means the Energy and Environment Cabinet;\n(c) \"Commission\" means the Public Service Commission;\n(d) \"Forbearance period\" means a three (3) year period of time that begins on the\nday that the sale of the public water or wastewater system to the acquiring\nutility closes;\n(e) \"Governing body\" means the appointed officials having control and\nresponsibility for the governance of the public water or wastewater system;\nand\n(f) \"Public water or wastewater system\" means any of the following that serve a\ncommunity:\n1. A water district, water association, or joint water commission formed\nunder KRS Chapter 74;\n2. A sewer district or sanitation district formed under KRS Chapter 67, 76,\nor 220;\n3. A municipal water utility and water works, sewer utility, or sewage\nsystem or works, or combined electric and water plant formed under this\nchapter; and\n4. Any combinati on of two (2) or more of the entities listed in\nsubparagraphs 1. to 3. of this paragraph.\n(2) Notwithstanding any provision of law to the contrary, when a public water or\nwastewater system is sold, the acquiring utility shall have a forbearance period\nduring which the acquiring utility shall:\n(a) Not be required to pay any of the acquired public water or wastewater\nsystem's fines or penalties imposed for violations of KRS Chapter 224 or 278,\nor the administrative regulations promulgated thereunder, includin g any fines\nand penalties imposed prior to April 12, 2024;\n(b) Make all necessary improvements to the public water or wastewater system\nand its public works to correct past violations and bring the water system,\nwastewater system, or both into compliance with state and federal law; and\n(c) Be given priority for any eligible financing from the Kentucky Infrastructure\nAuthority to correct all deficiencies in the system identified in state and\nfederal violations.\n(3) The public water or wastewater system shal l maintain and make accessible all\nbooks and records associated with the actions taken during the forbearance period\nto the cabinet, the Kentucky Infrastructure Authority, and the commission to\ndemonstrate compliance with this section. The acquiring utilit y shall comply with\nany law requiring audits of its books, records, or operations of its facilities or\nworks.\n(4) Within thirty (30) days of receiving a notice of intent to purchase a public water or\nwastewater system by the governing body or owner of the acquiring utility, the\ncabinet and the commission shall each prepare and submit a list to the acquiring\nutility detailing the fines, penalties, and other deficiencies that have accrued to the\nacquired public water or wastewater system and the length of tim e that those\namounts may be deferred during the forbearance period.\n(5) After the forbearance period has expired, the cabinet and the commission shall\neither:\n(a) Waive all fines and penalties incurred prior to the commencement of the\nforbearance period if  all of the deficiencies giving rise to the fines and\npenalties have been resolved and:\n1. The deficient public water or wastewater system is placed under a\nmanagement and operations agreement with all day -to-day management\nand operations handled by a well-operated utility; or\n2. The deficient public water or wastewater system is sold to an acquiring\nutility;\n(b) Proceed to collect all past due fines and penalties if the deficiencies have not\nbeen resolved or the deficient public water or wastewater system  is not under\na management and operations agreement or sold to an acquiring utility; or\n(c) Grant an extension of the forbearance period of no longer than six (6) months\nif the commission and the cabinet determine that all of the conditions for\nwaiver of f ines and penalties in paragraph (a) of this subsection will be\nsatisfied by that time.\nNotwithstanding any provision of law to the contrary, interest or additional charges\nshall not be imposed by the cabinet or the commission on those accrued amounts\nduring the forbearance period.\n(6) An acquired public water or wastewater system to which a forbearance period has\nbeen applied under this section shall not be eligible for any additional forbearance\nperiods.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54595","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:20Z","sha256":"2035401b95a42d07900435c0812f90d804af3ccc41b11ae8a30b62fb12b151f2","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.055","next":"us-ky/krs-65.060"},"notice":"GroundRules: Original legal text. Not legal advice."}