{"data":{"id":"us-ky/krs-65a.050","jurisdiction":"us-ky","citation":"KRS 65A.050","heading":"Administrative dissolution of special purpose governmental entity --","body":"Dissolution by governing body.\n(1) (a) As used in this subsection, \"entity seeking dissolution\" shall mean:\n1. The DLG;\n2. If the special purpose governmental entity was established by one (1)\ncounty, or by one (1) city, the governing body of the county or city that\nestablished the special purpose governmental entity;\n3. If the special purpose governmental entity was established by multiple\ncounties and cities, the governing bodies of all establishing entities; or\n4. If the special purpose governmental entity was established other than by\nan establishing entity, the governing body or bodies of the county or\ncounties in which the special purpose governmental entity provides or\nprovided services, or operates or operated.\n(b) Any special purpose governmental entity that meets at least one (1) of the\nfollowing criteria may be administratively dissolved:\n1. The special purpose governmental entity has taken no action for two (2)\nor more consecutive years;\n2. Following a written inquiry from the entity seeking dissolution, the chair\nof the special purpose governmental entity either:\na. Notifies the entity seeking dissolution in writing that the special\npurpose governmental entity has not had a governing board, or has\nnot had a sufficient number of governing board members to\nconstitute a quorum for two (2) or more consecutive years; or\nb. Fails to respond to the inquiry within thirty (30) days;\n3. The special purpose governmental entity fails to register with the DLG\nas required by KRS 65A.090;\n4. The special purpose governmental entity fails to file the information\nrequired by KRS 65A.020 for two (2) or more consecutive years; or\n5. The governing body of the special purpose governmental entity provides\ndocumentation to the DLG or the governing body or bodies of the\nestablishing entity that it has unanimously adopted a resolution declaring\nthe special purpose governmental entity inactive.\n(c) To begin the process of administrative dis solution, the entity seeking\ndissolution shall provide notification of the proposed administrative\ndissolution as provided in this paragraph:\n1. The entity seeking dissolution shall:\na. Post a notice of proposed administrative dissolution on the registry\nestablished by KRS 65A.020;\nb. For administrative dissolutions under subparagraphs 3., 4., and 5.\nof paragraph (b) of this subsection, publish, in accordance with the\nprovisions of KRS Chapter 424, a notice of proposed\nadministrative dissolution, with the cost of the publication billed to\nthe special purpose governmental entity for which administrative\ndissolution is sought;\nc. Mail a copy of the notice to the registered contact for the special\npurpose governmental entity, if any; and\nd. Mail a copy of the notice as follows:\ni. If the dissolution is sought by the DLG, to the governing\nbody of the establishing entity or county, and to all entities at\nthe state level having oversight of or responsibility for the\nspecial purpose governmental entity; and\nii. If t he dissolution is sought by an establishing entity or\ncounty, to the DLG and any other establishing entities or\ncounties, and to all entities at the state level having oversight\nof or responsibility for the special purpose governmental\nentity; and\n2. The notice shall include:\na. The name of the entity seeking dissolution, and contact\ninformation for the entity;\nb. The name of the special purpose governmental entity for which\ndissolution is sought;\nc. The statutes under which the special purpose governmental  entity\nwas organized and operating;\nd. A description of the services provided and the territory of the\nspecial purpose governmental entity;\ne. If there is a plan of dissolution as required by paragraph (e) of this\nsubsection, identification of the place where the plan of dissolution\nmay be reviewed;\nf. A statement that any objections to the administrative dissolution\nshall be filed in writing with the entity seeking to dissolve the\nspecial purpose governmental entity within thirty (30) days after\nthe publi cation date, and the address and process for submitting\nsuch objections; and\ng. A statement that if no written objections are received within thirty\n(30) days of publication of the notice, the special purpose\ngovernmental entity shall be administratively dissolved.\n(d) 1. Any resident living in or owning property in the area served by the\nspecial purpose governmental entity for which dissolution is sought,\nwho is not a member of the governing body of the special purpose\ngovernmental entity or an immediate family member of a member of the\ngoverning body of the special purpose governmental entity, may file a\nwritten objection to the dissolution with the entity seeking dissolution.\nThe written objection shall state the specific reasons why the special\npurpose g overnmental entity shall not be dissolved, and shall be filed\nwithin thirty (30) days after the posting of the notice on the registry as\nrequired by paragraph (c) of this subsection.\n2. a. Upon the passage of thirty (30) days with no objections filed, and\nsatisfaction of all outstanding obligations of the special purpose\ngovernmental entity, the special purpose governmental entity shall\nbe deemed dissolved and, if a dissolution plan was required, the\nentity seeking dissolution shall proceed to implement the\ndissolution plan.\nb. Notification of dissolution shall be provided by the entity seeking\ndissolution to all other entities listed under paragraph (a) of this\nsubsection. The DLG shall maintain a list of all dissolved special\npurpose governmental entities and the date of dissolution on the\nregistry established by KRS 65A.020.\n3. If written objections are received within thirty (30) days of the\npublication on the registry required by paragraph (c) of this subsection,\nthe dissolution process shall be aborted,  and the process established by\nsubsection (2) of this section shall be utilized if it is determined that\ndissolution should still be sought, notwithstanding any other dissolution\nprocess that may exist in the Kentucky Revised Statutes for the type of\nspecial purpose governmental entity for which dissolution is sought.\n(e) If the special purpose governmental entity for which administrative\ndissolution is sought:\n1. Is providing services;\n2. Has outstanding liabilities; or\n3. Has assets;\nthe entity seeking dissolution shall, as part of the dissolution process, develop\na dissolution plan that includes, as relevant, provisions addressing the\ncontinuation of services, the satisfaction of all liabilities, and the distribution\nof assets of the special purpose governmental entity.\n(2) Any special purpose governmental entity not meeting the requirements for\ndissolution under subsection (1) of this section, and for which no specific\ndissolution provisions apply in the Kentucky Revised Statutes, may  be dissolved as\nprovided in this subsection:\n(a) The dissolution of a special purpose governmental entity may be initiated\nupon:\n1. The affirmative vote of two -thirds (2/3) of the governing body of the\nspecial purpose governmental entity and the adoption of an ordinance by\nthe affirmative vote of two -thirds (2/3) of the governing body of each\nestablishing entity;\n2. The adoption of an ordinance by an affirmative vote of two -thirds (2/3)\nof the governing body of each establishing entity; or\n3. If there is n o establishing entity, by the adoption of an ordinance by an\naffirmative vote of two -thirds (2/3) of the governing body of each\ncounty in which the special purpose governmental entity provides\nservices or operates;\n(b) Upon initiation of a dissolution afte r an affirmative vote as provided in\nparagraph (a) of this subsection, the special purpose governmental entity for\nwhich dissolution is sought shall not assume any new obligations or duties,\ncontract for any new debt, or levy any additional fees or taxes u nless the new\nobligations, duties, debt, fees, or taxes are included in the dissolution plan\nrequired by paragraph (c) of this subsection. Any contract or agreement or\nplan for new obligations, duties, debt, fees, or taxes entered into or devised in\nviolation of this paragraph shall be void;\n(c) After voting to commence dissolution of a special purpose governmental\nentity, the governing body or bodies initiating the dissolution shall:\n1. Develop a dissolution plan which, if adopted by an establishing entity\nshall be by ordinance, which shall include but not be limited to:\na. A description of how the necessary governmental services\nprovided by the special purpose governmental entity will be\nprovided upon dissolution of the entity or a statement that the\nservices are no longer needed;\nb. A plan for the satisfaction of any outstanding obligations of the\nspecial purpose governmental entity, including the continuation of\nany tax levies or fee payments necessary to meet the outstanding\nobligations;\nc. Assurances from any organization or entity that will be assuming\nresponsibility for services provided by the special purpose\ngovernmental entity, or that will assume the obligations of the\nspecial purpose governmental entity, that the organization or entity\nwill, in fact, provide the services or assume the obligations;\nd. A plan for the orderly transfer of all assets of the special purpose\ngovernmental entity in a manner that will continue to benefit those\nto whom services were provided by the special purpose\ngovernmental entity;\ne. A date upon which final dissolution of the special purpose\ngovernmental entity shall occur; and\nf. Any other information the governing body wishes to include.\nThe dissolution plan shall be available for public review at least thirty\n(30) days prior to the public hearing required by subparagraph 2. of this\nparagraph;\n2. Hold a public hearing in each county and city that is participating in the\ndissolution to present the proposed dissolution plan and receive\nfeedback from the public. The time a nd location of the hearing, as well\nas the location where a copy of the dissolution plan may be reviewed by\nthe public prior to the hearing, shall be advertised as provided in KRS\n424.130, and shall be posted on the registry established by KRS\n65A.020. The hearing shall be held not less than fifteen (15) days, nor\nmore than thirty (30) days, after the publication of the notice in the\nnewspaper;\n3. Send a copy of the notice required by subparagraph 2. of this paragraph\nto the DLG and to any state entity with oversight authority of the special\npurpose governmental entity;\n4. If the dissolution plan is amended after the public hearing, make the\namended dissolution plan available for public inspection for at least\nfifteen (15) days prior to the final vote of the  governing body under\nsubparagraph 6. of this paragraph;\n5. If the special purpose governmental entity is a utility as defined in KRS\n278.010(3), obtain approval from the Public Service Commission\npursuant to KRS 278.020(6); and\n6. Within sixty (60) days a fter the date of the public hearing, finally\napprove or disapprove the dissolution of the special purpose\ngovernmental entity and the dissolution plan. Approval shall require:\na. If initiated by the governing board of the special purpose\ngovernmental entity, the affirmative vote of two -thirds (2/3) of the\nmembers of the governing body of the special purpose\ngovernmental entity and the adoption of an ordinance by two -\nthirds (2/3) of the members of the governing body of each\nestablishing entity;\nb. The adoption of an ordinance by two -thirds (2/3) of the members\nof the governing body of each establishing entity; or\nc. If there is no establishing entity, by the adoption of an ordinance\nby two-thirds (2/3) of the members of the governing body of each\ncounty in which the special purpose governmental entity provided\nservices or operated;\n(d) The governing body or bodies shall notify the DLG of the outcome of the vote\nor votes taken pursuant to subparagraph 6. of paragraph (c) of this subsection;\nand\n(e) Notwithstanding any other provision of this section, the dissolution of a\nspecial purpose governmental entity shall not be final until all obligations of\nthe special purpose governmental entity have been satisfied or have been\nassumed by another entity.","path":["KRS Chapter 65A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44843","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:23Z","sha256":"cdf96bb9b97e5dd6259311d2a5a28448784ef36b8f99a389a7de803db8fbd1fb","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65a.040","next":"us-ky/krs-65a.060"},"notice":"GroundRules: Original legal text. Not legal advice."}