{"data":{"id":"us-ky/krs-96.740","jurisdiction":"us-ky","citation":"KRS 96.740","heading":"Election to operate under KRS 96.550 to 96.900 -- Creation of board of","body":"public utilities -- Appointment -- Qualifications -- Incompatibility with other\noffices -- Bond -- Oath -- Not to hire relatives.\n(1) Any municipality desiring to acquire and oper ate an electric plant under the\nprovisions of KRS 96.550 to 96.900 or any municipality now owning and operating\nan electric plant may elect to operate under the provisions of KRS 96.550 to 96.900\nby enacting an ordinance declaring therein the desire and in tention of the\nmunicipality to accept and operate under the provisions of KRS 96.550 to 96.900\nand by providing in the ordinance that the municipality accepts and agrees to all of\nthe provisions of KRS 96.550 to 96.900, and to all of the provisions as they  may be\nfrom time to time amended by the acts of the General Assembly of Kentucky. The\nordinance shall further authorize the mayor or chief executive to appoint a board,\nsubject to the approval of the appointments by the governing body of the\nmunicipality as hereinafter in KRS 96.750 to 96.900 provided. Upon the passage of\nthe ordinance the mayor or chief executive of any municipality may, with the\napproval of the governing body of the municipality, appoint a board of public\nutilities, consisting of four (4 ) residents of the municipality who have resided\ntherein for not less than one (1) year next preceding the date of the appointment.\nHowever, one (1) board member may be appointed who lives in a portion of the\nutility's service area that is not within the c ity if that portion contains ten percent\n(10%) or more of the utility's customers and that member is a customer of the utility\nfor not less than one (1) year. The board must be appointed and qualified before the\nmunicipality shall have any authority to pro ceed further under the provisions of\nKRS 96.550 to 96.900. The board, when so appointed and qualified, shall be and\nhereby is declared to be a body politic and corporate, with perpetual succession; and\nmay contract and be contracted with, sue and be sued, in and by its corporate name,\nand have and use a corporate seal. The name of the board shall be \"Electric Plant\nBoard of the City of __________\" (The name of the municipality to be inserted.)\n(2) No person shall be appointed a member of the board who has, within the last two\n(2) years next before his or her appointment, held any public office, or who is\nrelated within the third degree to the mayor or any member of the governing body of\nthe municipality.\n(3) Neither the board nor the superintendent appointed by the board shall appoint to any\nsubordinate office which it may create nor employ in any capacity any person who\nis related within the third degree to any member of the board or to the mayor of the\nmunicipality or to any member of the governing body of that municipality. No\nofficer or employee of a municipality shall be eligible for such appointment until at\nleast one (1) year after the expiration of the term of his or her public office, or\nemployment, except that the one (1) year waiting period after th e expiration of the\nterm of public office or employment shall not apply to an employee of a\nmunicipality that is not related within the third degree to the mayor or any member\nof the governing body of the municipality, at the time of appointment or\nemployment by the board.\n(4) Except as provided in subsection (1) of this section, the members of the board shall\nbe citizens, taxpayers, and legal voters of the municipality and shall not at the time\nof the appointment be indebted to the municipality either dire ctly or indirectly or be\nsurety on the official bond of any officer of the municipality.\n(5) If at any time during his or her term of office a member of the board becomes a\ncandidate for or is elected or appointed to any public office, he or she shall\nautomatically vacate his or her membership from the board, and another person\nshall be appointed to his or her place.\n(6) The municipality shall pay the cost of securing bonds for board members from a\nsurety company qualified to do business in Kentucky, and me mbers shall execute\nbond in an amount required by resolution of the governing body, and conditioned\nupon the faithful performance of their official duties.\n(7) Each member of the board shall qualify by taking the oath required by Section 228\nof the Constitution.","path":["KRS Chapter 96"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=45059","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:58Z","sha256":"5d9812f6573a5809369043368c9285437d78c8ee38af4b0041968947447fccb0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-96.730","next":"us-ky/krs-96.750"},"notice":"GroundRules: Original legal text. Not legal advice."}