{"data":{"id":"us-ky/krs-74.361","jurisdiction":"us-ky","citation":"KRS 74.361","heading":"Merger of water districts -- Hearing -- Orders.","body":"(1) The General Assembly of the Commonwealth of Kentucky determines as a\nlegislative finding of fact that reduction of the number of operating water districts in\nthe Commonwealth will be in the public interest, in that mergers of such districts\nwill tend to el iminate wasteful duplication of costs and efforts, result in a sounder\nand more businesslike degree of management, and ultimately result in greater\neconomies, less cost, and a higher degree of service to the general public; and that\nthe public policy favors the merger of water districts wherever feasible.\n(2) The Public Service Commission of Kentucky is authorized and empowered to\ninitiate, carry out, and complete such investigations, inquiries, and studies as may\nbe reasonably necessary to determine the ad visability as to the merger of water\ndistricts. Prior to ordering a hearing with reference to the merger of any water\ndistrict into one (1) or more additional water districts, the Public Service\nCommission shall cause to be prepared in writing a feasibilit y report and study\nregarding the proposed merger, containing such studies, investigations, facts,\nhistorical data, and projections as in the circumstances may be required in order to\nenable the commission to formulate a proper decision regarding such merger.\n(3) Based upon the written report and study required to be made incident to any water\ndistrict merger, the Public Service Commission may propose by order that a merger\nof water districts be accomplished, and, upon the issuance of such order, shall give\nactual notice to all water districts proposed to be merged. Said order shall provide\nfor a formal public hearing to be held before the Public Service Commission on the\nsubject of such proposed merger. Actual notice of such merger hearing shall also be\nfurnished to the county judges/executive of each county containing a water district\nproposed to be merged, and each water commissioner of a water district proposed to\nbe merged, and notice of such public hearing shall be afforded to the public served\nby the re spective water districts sought to be merged, by newspaper notice in\naccordance with the provisions of KRS Chapter 424.\n(4) A formal hearing before the Public Service Commission shall be held with\nreference to such merger proposal, and, upon such occasion,  all water districts\nwhich are sought to be merged into a single entity shall be afforded the right to\nappear, to present evidence, to examine all exhibits and testimony, to cross-examine\nall witnesses, and to submit such memoranda, written evidence, and b riefs as may\nbe desired. Such public hearing may be adjourned from time to time by the Public\nService Commission, and notice of such adjournments may, but need not, be\nafforded as with reference to the initial public hearing. At the conclusion of such\nproceedings, the Public Service Commission shall enter its order, either merging the\nwater districts which are the subject of the merger proceedings into a single water\ndistrict, or abandoning the merger proposal.\n(5) Outstanding obligations of any water distr ict merged in accordance with the\nprovisions of this section which are secured by the right to levy an assessment as\nprovided by KRS 74.130 to 74.230, inclusive, or secured by a pledge of the income\nand revenues of the systems operated by any such merged w ater district, shall\ncontinue to be retired from such moneys and funds as shall be collected from the\nusers of facilities operated by such merged water districts in the original water\ndistrict area in accordance with the terms and provisions of the enablin g laws and\nthe authorizing resolutions or indentures under which the outstanding obligations\nwere issued, until all such obligations have been retired.\n(6) In any order ordering the merger of water districts, the Public Service Commission\nshall make such a dditional orders as may be required in connection with the\nschedule of rates, rentals and charges for services rendered to be levied by the water\ndistrict which remains in existence following such merger, having due regard to\ncontractual commitments made a nd entered into by the constituent merged water\ndistricts in connection with the issuance of obligations by such districts.\n(7) Upon the effective date of any merger of water districts, the water commissioners of\nthe merged water districts shall continue t o serve as water commissioners of the\nresulting district, regardless of their normal term expiration, until one (1) year after\napproval of the merger by the Public Service Commission. Thereafter, the board\nshall be composed as set forth in KRS 74.363. The appropriate county\njudge/executive or county judges/executive shall appoint and reappoint water\ncommissioners to manage the business and affairs of the resultant water district, in\nthe manner provided by KRS 74.363.\n(8) Any order of merger entered by the P ublic Service Commission in accordance with\nthis section shall be subject to all of the provisions of KRS Chapter 278, with\nreference to petitions for rehearing, and appeal.\n(9) Using the authority of this section the Public Service Commission can also cau se\nmergers of water associations into water associations or mergers of water\nassociations into water districts.\n(10) Nothing contained herein shall be construed to prohibit or limit in any respect the\nacquisition by water utilities subject to the jurisdict ion of the commission or by\nmunicipally owned water utilities of the assets of water districts or water\nassociations or the merger of water districts or water associations and water utilities\nsubject to the jurisdiction of the commission or municipally owned water utilities.","path":["KRS Chapter 74"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=24403","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:34Z","sha256":"d353d5ee607da23fe085eaace4dee4567f38e21586aaf8d0afc50c34e981d5ad","source_id":"us-ky","stale":false,"prev":"us-ky/krs-74.360","next":"us-ky/krs-74.363"},"notice":"GroundRules: Original legal text. Not legal advice."}