Kentucky Statutes 353.404 – Creation of natural gas acquisition authority — Components of agreement — Public agency status — Election of authority formation method
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(1) Any two (2) or more municipal utilities may enter into an agreement pursuant to KRS § 65.240 for the creation of a gas acquisition authority to accomplish their joint and cooperative action in the acquisition, transportation, storage, and management of natural gas and in related services and functions which are necessary or desirable to provide adequate, dependable, and economical supplies of natural gas. The agreement shall:
(a) Specify the matters required by KRS § 65.250(1);
(b) Be approved by resolution by the governing body of each municipal utility that is a party to the agreement;
(c) Prior to and as a condition precedent to its entry into force, be submitted to the appropriate state agency, which shall determine whether the agreement is in proper form and compatible with the laws of the Commonwealth, including this chapter, in the manner specified in KRS § 65.260(2); and
(d) Be filed as provided in KRS § 65.290.
(2) An agreement creating a gas acquisition authority or an amendment to an agreement previously entered into under the Interlocal Cooperation Act, KRS § 65.210 to
65.300:
(a) Shall establish the governing body of the authority and authorize it to adopt bylaws and establish committees for the conduct of its business;
(b) May provide for one (1) or more classes of members of the authority and that additional municipal utilities may become members of the authority; and
(c) Shall provide that the authority shall remain in existence until the later of fifty (50) years from the date of the agreement or amendment, or one (1) year after the authority has fully paid and discharged all of its indebtedness and has fully performed all of its contractual obligations.
(3) A gas acquisition authority shall constitute an agency and instrumentality for accomplishing essential government functions of the municipal utilities creating and establishing it, shall be a political subdivision and a public body corporate of the Commonwealth, and shall be a public agency within the meaning of KRS § 65.230. A gas acquisition authority is subject to the open meeting laws of KRS § 61.800 to
61.850, and the public record laws of KRS § 61.870 to KRS § 61.884, provided that the bylaws of the authority may specify that committees of its governing body may conduct meetings through telephone conference under standards and procedures consistent with video teleconferences under KRS § 61.826.
(4) Any separate legal entity previously created pursuant to KRS § 65.240 of the Interlocal Cooperation Act to provide supplies of natural gas to two (2) or more municipal utilities in the Commonwealth may elect to become a gas acquisition authority upon:
(a) The adoption of approving resolutions by its governing body and the governing body of the municipal utilities; and
(b) The filing of the resolutions in their official records and with the Secretary of
State.
An election under this subsection shall not modify, limit, or affect the validity or enforceability of any contract, bond, or obligation previously executed or incurred by the separate legal entity.
Effective: July 15, 2008
History: Created 2008 Ky. Acts ch. 159, sec. 3, effective July 15, 2008.
(a) Specify the matters required by KRS § 65.250(1);
Terms Used In Kentucky Statutes 353.404
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Contract: A legal written agreement that becomes binding when signed.
- Gas: means natural gas. See Kentucky Statutes 353.010
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Year: means calendar year. See Kentucky Statutes 446.010
(b) Be approved by resolution by the governing body of each municipal utility that is a party to the agreement;
(c) Prior to and as a condition precedent to its entry into force, be submitted to the appropriate state agency, which shall determine whether the agreement is in proper form and compatible with the laws of the Commonwealth, including this chapter, in the manner specified in KRS § 65.260(2); and
(d) Be filed as provided in KRS § 65.290.
(2) An agreement creating a gas acquisition authority or an amendment to an agreement previously entered into under the Interlocal Cooperation Act, KRS § 65.210 to
65.300:
(a) Shall establish the governing body of the authority and authorize it to adopt bylaws and establish committees for the conduct of its business;
(b) May provide for one (1) or more classes of members of the authority and that additional municipal utilities may become members of the authority; and
(c) Shall provide that the authority shall remain in existence until the later of fifty (50) years from the date of the agreement or amendment, or one (1) year after the authority has fully paid and discharged all of its indebtedness and has fully performed all of its contractual obligations.
(3) A gas acquisition authority shall constitute an agency and instrumentality for accomplishing essential government functions of the municipal utilities creating and establishing it, shall be a political subdivision and a public body corporate of the Commonwealth, and shall be a public agency within the meaning of KRS § 65.230. A gas acquisition authority is subject to the open meeting laws of KRS § 61.800 to
61.850, and the public record laws of KRS § 61.870 to KRS § 61.884, provided that the bylaws of the authority may specify that committees of its governing body may conduct meetings through telephone conference under standards and procedures consistent with video teleconferences under KRS § 61.826.
(4) Any separate legal entity previously created pursuant to KRS § 65.240 of the Interlocal Cooperation Act to provide supplies of natural gas to two (2) or more municipal utilities in the Commonwealth may elect to become a gas acquisition authority upon:
(a) The adoption of approving resolutions by its governing body and the governing body of the municipal utilities; and
(b) The filing of the resolutions in their official records and with the Secretary of
State.
An election under this subsection shall not modify, limit, or affect the validity or enforceability of any contract, bond, or obligation previously executed or incurred by the separate legal entity.
Effective: July 15, 2008
History: Created 2008 Ky. Acts ch. 159, sec. 3, effective July 15, 2008.