KLC 2020 Legislative Update

6) LOCAL GOVERNMENT PROCEDURES
KRS 65.242 is amended to require that agreements amended solely to adjust participating
parties be filed by each public agency subject to the agreement or by the interlocal agency created by the
agreement only with the secretary of state.
KRS 65.250 is amended to require an interlocal agreement creating an interlocal agency to specify
the following: (1) the organization, composition, authority, and nature of the interlocal agency, including
the term and qualifications of the members of the governing authority and their manner of appointment or
selection; (2) a statement of the powers delegated to the interlocal agency and any restrictions, limitations,
or conditions the contracting parties wish to place on those powers; and (3) a general statement of any
responsibilities of the interlocal agency to the parties that established it. A new section of KRS 65.210 to
65.300 is created to provide an interlocal agency created by an interlocal agreement shall be deemed to be
a public agency as defined in KRS 61.805 and 61.870.
KRS 65.260 is amended to reduce the time provided for review of an interlocal agreement by the
attorney general or Department for Local Government for proper form and compatibility with state law
from 60 days to 30 days. The failure of the attorney general or Department for Local Government to
disapprove an agreement within 30 days of its submission shall constitute approval of the agreement.
Nothing in HB 570 shall be construed to invalidate any interlocal agreement entered into pursuant
to KRS 65.210 to 65.300 prior to the effective date of the Act.
Senate Bill 5
SPECIAL PURPOSE GOVERNMENTAL ENTITIES
Sponsor: Senator Ralph Alvarado (R-Winchester)
SB 5 creates a new section of KRS Chapter 65A to require special purpose governmental entities
(SPGEs), other than an air board, a fire protection district established under KRS Chapter 75, and an
ambulance service district established under KRS Chapter 108, proposing to levy: (1) an ad valorem tax rate
for the upcoming year that is projected to generate more revenue than would be generated by the levy of
the compensating tax rate; or (2) an ad valorem tax for the first time; to submit in writing the proposed rate
to the city or county that established the SPGE. “Compensating tax rate” has the same meaning as in KRS
132.010.
If the establishing entity includes more than one city or county, or if there is no establishing
entity, the rate shall be submitted to the governing body of the city or county in which the largest number
of citizens served by the SPGE reside. If the SPGE serves only the residents of a city, the notice shall be
provided to the governing body of the city. The rate shall be submitted no later than seven days after the
adoption of the ordinance, order, resolution, or motion to levy a tax rate that exceeds the compensating
tax rate or to levy an ad valorem tax for the first time.
The governing body of the city or county to which the rate is submitted shall have 30 days from the
date of submission to:
1.
2.
Approve or fail to act on the proposed rate, in which case the proposed rate may be implemented
by the SPGE after all other statutory requirements for levying the rate are met;
Approve a rate that is less than the proposed rate but greater than the compensating tax rate when
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