AN ACT relating to recreation and tourism development.

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AN ACT relating to recreation and tourism development. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 3
READ AS FOLLOWS: 4
As used in Sections 1 to 6 of this Act: 5
(1) "Authority" or "BIDA" means the Burnside Island Development Authority 6
established in Section 2 of this Act; 7
(2) "BIDA region" means Pulaski County and all of the adjacent counties; 8
(3) "Board" means the board of directors of BIDA; 9
(4) "Commissioner" means the commissioner of the Department for Local 10
Government; 11
(5) "Day" means any calendar day; 12
(6) "Department" means the Department of Parks; and 13
(7) "General Burnside Island State Park" means an approximately four hundred 14
thirty (430) acre island surrounded by the Big South Fork Cumberland River that 15
is located in the Lake Cumberland basin in Pulaski County and situated within 16
the city limits of the City of Burnside, and any other successor park. 17
SECTION 2. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 18
READ AS FOLLOWS: 19
(1) The Burnside Island Development Authority is hereby established as an 20
independent, de jure municipal corporation and political subdivision of the 21
Commonwealth and shall exercise all p owers that a corporation may lawfully 22
exercise under the laws of the Commonwealth. The authority shall be a public 23
body corporate established with all the general corporate powers incidental 24
thereto. The authority shall be attached to the Department for Lo cal Government 25
for administrative purposes only. The authority shall be authorized for a period of 26
five (5) years from the effective date of this Act, may be renewed by the General 27
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Assembly, and may adopt bylaws and promulgate administrative regulations in 1
accordance with KRS Chapter 13A for the orderly conduct of its affairs. 2
(2) The purpose of the authority is to develop, finance, operate, maintain, improve, 3
and promote lodging and restaurant facilities and recreational amenities on 4
General Burnside Islan d State Park and the surrounding area for public park 5
purposes to increase economic development, tourism, and outdoor recreation for 6
residents and visitors, except as limited by subsection (1)(b) of Section 4 of this 7
Act. 8
(3) The authority shall be govern ed by a board of directors, established in 9
accordance with Section 3 of this Act. 10
(4) (a) The authority and board shall become operational when a majority of the 11
members of the board have been appointed. Within fourteen (14) days of the 12
authority and board being operational, the commissioner shall notify the 13
Pulaski County judge/executive, the mayor of the City of Burnside, and the 14
board members listed in Section 3 of this Act that the requirements have 15
been met for the authority and board to become operational. 16
(b) The commissioner shall establish a date, time, and place for an initial 17
organizational meeting of the board, to be held within thirty (30) days of 18
notification required in paragraph (a) of this subsection. The commissioner 19
shall serve as interim chair of the initial organizational meeting until such 20
time as a chair is elected by a majority of the board members. The chair, or 21
interim chair, as appropriate, shall make the final determination in the 22
event of a tie vote of the board. 23
(5) The authority shall comply with: 24
(a) KRS Chapter 65A; 25
(b) The Open Meetings Act, KRS 61.805 to 61.850; and 26
(c) The Open Records Act, KRS 61.870 to 61.884. 27
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SECTION 3. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 1
READ AS FOLLOWS: 2
(1) The board shall consist of the following members: 3
(a) The secretary of the Tourism, Arts and Heritage Cabinet or his or her 4
designee; 5
(b) The commissioner of the Department for Local Government or his or her 6
designee; 7
(c) The commissioner of the Departmen t of Fish and Wildlife Resources or his 8
or her designee; 9
(d) The Auditor of Public Accounts or his or her designee; 10
(e) Two (2) members appointed by the Governor from a list of six (6) persons 11
submitted by the mayor of the City of Burnside; 12
(f) Two (2) mem bers appointed by the Governor from a list of six (6) persons 13
submitted by the county judge/executive of Pulaski County; 14
(g) The mayor of the City of Burnside or his or her designee; 15
(h) The executive director of the Burnside Tourism and Recreation 16
Commission or his or her designee; 17
(i) The county judge/executive of Pulaski County or his or her designee; 18
(j) The executive director of the Somerset -Pulaski County Convention and 19
Visitors Bureau or his or her designee; 20
(k) One (1) State Representative from the BIDA region appointed to a two (2) 21
year term by the Speaker of the House of Representatives, who shall serve 22
as an ex officio nonvoting member and shall not serve another term 23
consecutively with a prior term; and 24
(l) One (1) State Senator from the BIDA region appointed to a two (2) year 25
term by the President of the Senate, who shall serve as an ex officio 26
nonvoting member and shall not serve another term consecutively with a 27
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prior term. 1
(2) (a) The terms of the appointe d members of the board shall be three (3) years. 2
All appointments or reappointments made by the Governor shall be subject 3
to Senate confirmation in accordance with KRS 11.160. 4
(b) If a vacancy occurs among the appointed members of the board, the 5
unexpired term shall be filled pursuant to the requirements and procedures 6
for the original appointments. 7
(3) (a) The board shall meet at least once every quarter to perform all duties as 8
prescribed by Sections 1 to 6 of this Act and as may be prescribed in the 9
authority's bylaws. The board chair may call special meetings at any time. 10
(b) Notice of each meeting shall be made in writing and delivered to board 11
members at least seven (7) days before the scheduled meeting date. Email is 12
an acceptable form of notice of sp ecial meetings, so long as it is sent to 13
directors at least seven (7) days before the scheduled meeting date. 14
(c) Accommodations shall be made for remote attendance for each board 15
meeting, whether regular or special, through means such as video 16
conferencing, conference call, or similar services. 17
(d) A majority of the voting members of the board shall constitute a quorum. 18
Vacant board positions shall be counted against the quorum total necessary 19
for board action. 20
(e) The board shall comply with the Open Meet ings Act, KRS 61.805 to 61.850, 21
and the Open Records Act, KRS 61.870 to 61.884. 22
(4) The board: 23
(a) Shall elect a chair, vice chair, secretary, treasurer, and any other officers as 24
established in the bylaws of the board; 25
(b) May appoint temporary and standi ng committees to accomplish the 26
purposes of Sections 1 to 6 of this Act and shall clearly describe the role, 27
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responsibilities, and tenure of each committee so created; 1
(c) Shall adopt bylaws for the management and regulation of its affairs and all 2
other matters necessary to effect proper management and accountability of 3
the board. The bylaws shall include, at a minimum, the following: 4
1. The powers and duties of the board's members and the manner and 5
number of officers to be elected from among the board members; and 6
2. The terms, conditions, and manner in which a board member may be 7
removed; 8
(d) Shall review and approve an annual budget; 9
(e) May seek administrative and management assistance through written 10
agreements with state agencies, local area developme nt districts, or local 11
governing bodies; and 12
(f) May employ an executive director to act as its chief executive officer to 13
serve at its will and pleasure. 14
(5) Board members shall serve without compensation, but may be reimbursed for 15
actual and necessary travel expenses incurred in the performance of their duties, 16
subject to Finance and Administration Cabinet administrative regulations. Board 17
members may have their lodging reimbursed by BIDA. Any reimbursement 18
requests exceeding five hundred dollars ($500) p er person shall be submitted to 19
the Department for Local Government for approval. 20
SECTION 4. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 21
READ AS FOLLOWS: 22
(1) (a) The authority shall: 23
1. Supervise the design, construct ion, financing, operations, and 24
maintenance of lodging facilities, restaurants, boat facilities, and 25
other recreational or entertainment facilities, and conduct any other 26
improvements it deems necessary on General Burnside Island State 27
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Park, and any other property or facilities built, acquired, or leased 1
pursuant to its powers under Sections 1 to 6 of this Act, through a 2
public-private partnership; 3
2. Assume all administrative and management functions of the 4
department for the facilities and amenities on Ge neral Burnside 5
Island State Park that are included in the public -private partnership 6
agreement, according to the terms of a public -private partnership 7
agreement; and 8
3. Procure insurance against any losses in connection with its property, 9
licenses, easeme nts, operations, assets, or contracts, including hold -10
harmless agreements, in the amounts and from the insurers as the 11
board considers desirable. 12
(b) The authority shall not operate or maintain the existing eighteen (18) hole 13
golf course, campground, or bo at ramp facilities. A private partner may 14
negotiate access to the golf course, campground, or boat ramp with the 15
department, which the department shall not unreasonably withhold. 16
(2) The board may carry out any of the following to accomplish the purposes of 17
Sections 1 to 6 of this Act: 18
(a) Acquire, own, and hold property, and all interests therein, by deed, 19
purchase, gift, devise, bequest, or lease, or by transfer from the State 20
Property and Buildings Commission, except that the authority shall not 21
acquire property through the exercise of the power of eminent domain; 22
(b) Dispose of any property acquired in any manner provided by law; 23
(c) Lease property, whether as lessee or lessor, and acquire or grant through 24
easement, license, or other appropriate legal form, the right to develop and 25
use property and open it to the use of the public; 26
(d) In accordance with KRS 148.255, acquire authorization of the General 27
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Assembly prior to sale, trade, or disposal of real property valued greater 1
than four hundred thousand dollars ($400,000) that is owned by the 2
Commonwealth and managed by the department; 3
(e) Mortgage or otherwise grant security interests in its property; 4
(f) Maintain sinking funds and r eserves as the board determines appropriate 5
for the purposes of meeting future monetary obligations and needs of the 6
authority; 7
(g) Sue and be sued, plead and be impleaded, or complain and defend in any 8
court; 9
(h) Make contracts and execute instruments nec essary for carrying on its 10
business, including contracts with any state agency, the federal government, 11
or any person, individual, partnership, or corporation to affect any or all of 12
the purposes of Sections 1 to 6 of this Act; 13
(i) Accept appropriations, grants, and loans and enter into contracts and other 14
transactions with any federal agency, regional commission, or state agency 15
for accomplishing the purposes of Sections 1 to 6 of this Act; 16
(j) Receive revenue from a public-private partnership agreement; 17
(k) Borrow money and issue bonds, security interests, or notes; 18
(l) Provide for and secure the payment of the bonds, security interests, or 19
notes; 20
(m) Provide for the rights of the holders of the bonds, security interests, or 21
notes; 22
(n) Purchase, hold, and dispose of any of its bonds, security interests, or notes; 23
(o) Accept gifts or grants of property, security interests, money, labor, supplies, 24
or services from any governmental unit or from any person, firm, or 25
corporation; 26
(p) Establish a fee -based system of permits, user registrations, or other facility 27
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access mechanisms as follows: 1
1. The fees may be imposed for access to and use of the trails, parking at 2
lodging facilities, visitor centers, or other park -related recreational 3
purpose facilities or recrea tion activities, or as an admission to an 4
event, that are subject to a public -private partnership agreement 5
between BIDA and its private partner; 6
2. The fees shall be decided by the board; and 7
3. BIDA shall retain and use the revenue from fees for any purp oses 8
consistent with Sections 1 to 6 of this Act; 9
(q) Promulgate administrative regulations in accordance with KRS Chapter 10
13A to govern the use and maintenance of General Burnside Island State 11
Park and any other matters for effective management of BIDA; and 12
(r) Exercise all of the powers that a corporation may lawfully exercise under 13
the laws of the Commonwealth. 14
(3) Notwithstanding KRS 45A.077 or 65.028(12) or any other provision of law to the 15
contrary, solicitation of a public -private partnership shall b e subject to KRS 16
65.028, except that any public -private partnership shall be authorized by the 17
General Assembly by inclusion in an executive branch budget bill or any other 18
means specified by the General Assembly that explicitly identifies and authorizes 19
the utilization of a public -private partnership delivery method for the applicable 20
capital project. 21
(4) This section shall not be construed as a waiver of sovereign immunity. 22
SECTION 5. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 23
READ AS FOLLOWS: 24
(1) Revenue bonds and revenue refunding bonds of the authority issued under 25
Sections 1 to 6 of this Act do not constitute a debt of the Commonwealth or of any 26
political subdivision thereof or a pledge of the faith and credit of the 27
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Commonwealth or of any political subdivision, but the bonds shall be payable 1
solely from the revenues resulting from the issuance of bonds or assets of the 2
authority. 3
(2) All bonds shall contain on the face of the bond a statement to the effect that 4
neither the Commonwealth nor any political subdivision of the Commonwealth is 5
obligated to pay the bond or the interest on the bond, except from revenues of the 6
project or projects for which they are issued. Obligations issued under this section 7
shall not be deemed a debt, liability, or obligation of the Commonwealth or of any 8
political subdivision thereof or a pledge of the faith and credit of the 9
Commonwealth or of any politica l subdivision, but shall be payable solely from 10
the revenues resulting from the issuance of bonds or assets of the authority. 11
SECTION 6. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 12
READ AS FOLLOWS: 13
(1) The department shall: 14
(a) Continue to operate and maintain the facilities and amenities on General 15
Burnside Island State Park in the usual and customary manner until an 16
agreement between BIDA and a private partner to provide such services 17
takes effect, upon which time th e department shall provide for an orderly 18
transition of its administrative and management functions to BIDA and its 19
private partner. The department shall continue to operate and maintain any 20
facilities and amenities not subject to the public -private partne rship 21
agreement between BIDA and its private partner; 22
(b) Provide technical assistance to BIDA to achieve the legislative intent of 23
Sections 1 to 6 of this Act, including but not limited to procurement, 24
contracting, administrative, and marketing support; 25
(c) In collaboration with BIDA, negotiate in good faith the renewals of any 26
lease agreements with the United States Army Corps of Engineers on and in 27
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the vicinity of General Burnside Island State Park and assign such 1
agreements to BIDA or otherwise permit B IDA to carry out all functions in 2
Sections 1 to 6 of this Act on the lands leased from the United States Army 3
Corps of Engineers; 4
(d) Within thirty (30) days of notification from the chair of the BIDA board that 5
construction of lodging and restaurant facil ities are substantially complete, 6
redesignate the General Burnside Island State Park as the General 7
Burnside Island State Resort Park; and 8
(e) Both before and after paragraph (d) of this subsection is met, continue to 9
include General Burnside Island State Park and the General Burnside 10
Island State Resort Park in the state park system. 11
(2) The department shall not develop lodging or restaurant facilities or additional 12
recreational or entertainment facilities on General Burnside Island State Park 13
without the express written permission of the BIDA board. 14
Section 7. KRS 132.195 is amended to read as follows: 15
(1) When any real or personal property which is exempt from taxation is leased or 16
possession is otherwise transferred to a natural person, association, partnership, or 17
corporation in connection with a business conducted for profit, the leasehold or 18
other interest in the property shall be subject to state and local taxation at the rate 19
applicable to real or personal property levied by each taxing jurisdiction. 20
(2) Subsection (1) of this section shall not apply to interests in: 21
(a) Industrial buildings, as defined under KRS 103.200, owned and financed by a 22
tax-exempt governmental unit or tax -exempt statutory authority under th e 23
provisions of KRS Chapter 103, the taxation of which is provided for under 24
the provisions of KRS 132.020 and 132.200; 25
(b) Federal property for which payments are made in lieu of taxes in amounts 26
equivalent to taxes which might otherwise be lawfully assessed; 27
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(c) Property of any state-supported educational institution; 1
(d) Vending stand locations and facilities operated by blind persons under the 2
auspices of the Division of Kentucky Business Enterprise, regardless of 3
whether the property is owned by the federal, state, or a local government; 4
(e) Property of any free public library; 5
(f) Property in Fayette County, Kentucky, administered by the Department of 6
Military Affairs, Bluegrass Station Division; 7
(g) All privately owned leasehold interests in residenti al property when the 8
residential property is owned in fee simple by a purely public charity as of 9
July 1, 2020: 10
1. When the real property includes a residential property unit that is: 11
a. Leased by the purely public charity for a period of at least one (1) 12
year to an individual person who is fifty -five (55) years of age or 13
older; 14
b. Maintained as the individual person's permanent residence under a 15
lease agreement that: 16
i. Prohibits the lessee from subleasing the unit; and 17
ii. Provides that the lessee's posse ssory interest in the unit is 18
terminable by the lessor upon the death of the lessee, the 19
physical or mental inability of the lessee to continue to reside 20
in the unit, or the lessee's relocation to a nursing home or 21
similar assisted living facility; and 22
c. Constructed on or before July 1, 2020, or constructed after July 1, 23
2020, on land that was privately owned in fee simple by the purely 24
public charity on or before July 1, 2020; 25
2. If the fee simple ownership is transferred by the purely public charity 26
after July 1, 2020, it shall be transferred to another purely public charity 27
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and the requirements established for the residential property unit in 1
subparagraph 1. of this paragraph shall be maintained; and 2
3. The taxation of which is provided for under KRS 132.020 and 132.200; [ 3
or] 4
(h) All privately owned leasehold interests in residential property owned in fee 5
simple by a purely public charity, which is exempt from ad valorem taxation 6
under Kentucky Constitution Section 170, when the residential property unit 7
is leased by the purely public charity to an individual person who is: 8
1. Receiving medical or educational supportive services from the purely 9
public charity; and 10
2. a. A postsecondary educational participant; 11
b. A minor; 12
c. Sick, disabled, or impoverished; or 13
d. Over the age of sixty-five (65); or 14
(i) Any interest in property or facilities developed, acquired, or leased under 15
Sections 1 to 6 of this Act. 16
(3) Taxes shall be assessed to lessees of exempt real or personal property and collected 17
in the same manner as taxes assessed to owners of other real or personal property, 18
except that taxes due under this section shall not become a lien against the property. 19
When due, such taxes shall constitute a debt due from the lessee to the state, county, 20
school district, special district, or urban -county government for which the taxes 21
were assessed and if unpaid shall be recoverable by the state as provided in KRS 22
Chapter 134. 23
Section 8. Notwithstanding subsection (2)(a) of Section 3 of this Act, the 24
initial terms of the BIDA board members appointed by the Governor shall be staggered as 25
follows: 26
(1) One representative appointed from a list of persons submitted by the mayor of 27
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the City of Burnside shall serve an initial term of three years, and the other shall serve an 1
initial term of two years; 2
(2) One representative appointed from a list of persons submitted by the county 3
judge/executive of Pulaski County sha ll serve an initial term of two years and the other 4
shall serve an initial term of one year. 5