AN ACT relating to riverport authorities and declaring an emergency.

UNOFFICIAL COPY 26 RS BR 1526
Page 1 of 7
XXXX 2/24/2026 12:17 PM Jacketed
AN ACT relating to riverport authorities and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 65.520 is amended to read as follows: 3
(1) Any governmental unit by act of its legislative body, or any two (2) or more 4
governmental units acting jointly by acts of their legislative bodies, and with the 5
approval of the Transportation Cabinet, Office of the Secretary, may establish a 6
developmental riverport authority to be composed of six (6) members. 7
(2) The authority shall be a body politic and corporate with the usual corporate 8
attributes, and in its corporate nam e may sue and be sued, contract and be 9
contracted with and do all things reasonable or necessary to effectively carry out the 10
powers and duties prescribed by KRS 65.510 to 65.650. The authority may exercise 11
all powers granted to governmental agencies by KR S 58.010 to 58.140. The 12
authority may exercise all powers, consistent with its powers and duties stated in 13
this chapter, granted by KRS 273.171 to corporations governed by KRS 273.161 to 14
273.390. 15
(3) The authority shall not delegate the powers set out in s ubsection (2) of this 16
section to any other entity. The authority may enter into contracts with vendors to 17
deliver tasks or functions but shall not cede policy-making authority. 18
(4) The responsibility for riverports shall be established within the Transport ation 19
Cabinet to provide oversight on development activities involving riverport 20
authorities. The cabinet shall be responsible for managing a study that will develop 21
a long-range capital improvements plan for Kentucky's riverports that shall include, 22
but not be limited to: 23
(a) Guidelines for ground transportation access to riverports; 24
(b) A model for determining the economic impact of riverports; and 25
(c) A blueprint for creating long-term funding mechanisms for riverports. 26
Section 2. KRS 65.530 is amended to read as follows: 27
UNOFFICIAL COPY 26 RS BR 1526
Page 2 of 7
XXXX 2/24/2026 12:17 PM Jacketed
(1) The purposes of the authority shall be to: 1
(a) Enhance, foster, aid, provide, and promote tra nsportation, economic 2
development, housing, recreation, education, governmental operations, 3
culture, and research within the jurisdiction of the authority or its economic 4
environs; and 5
(b) Establish, maintain, operate, and expand necessary and proper river port and 6
river navigation facilities, and to acquire and develop property, or rights 7
therein within the economic environs, the home county, or any county 8
adjacent thereto, of the riverport or proposed riverport to attract directly or 9
indirectly river-oriented industry. 10
It shall have the duty and such powers as may be necessary or desirable to promote 11
and develop the authority's purposes [navigation, river transportation, riverports, 12
and riverport facilities, and to attract industrial or commercial operation s to the 13
property held as industrial parks]. 14
(2) The authority may establish and fix reasonable rates, charges, and fees for the use 15
of the riverport facilities which shall be published in a manner available to the 16
general public in the county in which the riverport is located. In fixing rates, 17
charges, or fees the authority may take into consideration, among other factors, the 18
total capital investment of the authority, the revenue needed properly to maintain 19
such facilities, the revenue needed properly to expand the riverport and its facilities, 20
the portion of the facilities utilized by the licensee or contracting party and its 21
customers, and the volume and type of business conducted. Any party aggrieved by 22
the rates, charges, or fees may appeal from the ac tion of the authority to the Circuit 23
Court of the county within which the authority operates, within ninety (90) days 24
from the date that the authority finally publishes the rates, charges, or fees and gives 25
notice of same to the contracting party or licens ee. The Circuit Court may hear 26
evidence and determine whether or not the rates, charges, or fees are, or are not, 27
UNOFFICIAL COPY 26 RS BR 1526
Page 3 of 7
XXXX 2/24/2026 12:17 PM Jacketed
reasonable in amount. Appeal from the judgment of the Circuit Court may be 1
prosecuted as any other civil appeal. 2
(3) The authority shall also have power, from time to time, to fix rates, charges, or fees 3
by contract, or by publishing general rates, charges, or fees for commercial vendors, 4
concessionaires, or other persons for the use or occupancy of riverport facilities 5
under the terms and condi tions it deems to be in the best interest of maintaining, 6
operating, or expanding necessary riverport facilities, and the public use thereof. 7
(4) The authority may acquire by contract, lease, purchase, option, gift, condemnation, 8
or otherwise any real or p ersonal property, or rights therein, necessary or suitable 9
for establishing, developing, operating, or expanding riverports, riverport facilities, 10
water navigation facilities, including spoilage areas for the disposal of materials 11
dredged from river bottom s in an effort to improve the navigability of rivers, 12
reserve storage areas and reserves of bulk materials utilized by the authority or any 13
person acting as the authority's agent or licensee, and industrial parks or sites within 14
the economic environs of th e riverport or proposed riverport. The authority may 15
erect, equip, operate, and maintain on the property buildings and equipment 16
necessary and proper for riverport and water navigation facilities. The authority 17
may dispose of any real or personal property, or rights therein, which in the opinion 18
of the authority is not needed for use as riverport or water navigation facilities, or 19
use as industrial parks or sites. The authority may lease, sell, convey, or assign its 20
interest in land owned, optioned, or othe rwise held by it to any person for the 21
purpose of constructing and/or operating any industrial or commercial facility or for 22
the purpose of acting as the authority's agent or licensee in effectively carrying out 23
any of its powers and duties. 24
(5) With the c onsent of the legislative body of the governmental unit in which the 25
property to be condemned is located, the authority may by resolution, reciting that 26
the property cannot be acquired by purchase or agreement and is needed for 27
UNOFFICIAL COPY 26 RS BR 1526
Page 4 of 7
XXXX 2/24/2026 12:17 PM Jacketed
riverport, water navigation, or industrial purposes in accordance with the powers set 1
forth in subsection (4) of this section, direct the condemnation of any property. The 2
procedure for condemnation shall conform to the procedure set out in the Eminent 3
Domain Act of Kentucky. 4
(6) The authority may apply for, receive authorization for, establish, and operate a 5
foreign trade zone, as permitted by 19 U.S.C. sec. 81, provided approval is obtained 6
from the Cabinet for Economic Development. 7
(7) The authority shall comply with the provisions of KRS 65A.010 to 65A.090. 8
(8) Unless otherwise agreed to in writing between the authority and a planning unit 9
as defined in KRS 100.111, the authority shall comply with the comprehensive 10
plan, land use ordinances and regulations, and design and character guidelines 11
of each planning unit in which the authority operates. 12
Section 3. KRS 65.540 is amended to read as follows: 13
(1) The members of the authority shall be appointed as follows: 14
(a) If the authority is established by a city, such members shall be appointed by 15
the mayor of the city; 16
(b) If the authority is established by a county, such members shall be appointed 17
by the county judge/executive with the approval of the fiscal court; 18
(c) If the authority is established a s a joint city -county riverport authority, three 19
(3) members shall be appointed by the mayor and three (3) members by the 20
county judge/executive to the terms as provided in subsection (2) of this 21
section, and in addition, the mayor may appoint himself or a member of the 22
city legislative body as one (1) additional member of the authority and the 23
county judge/executive may appoint himself or a member of the fiscal court as 24
one (1) additional member of the authority for a term of two (2) years, 25
provided that such persons may not serve on the authority after the expiration 26
of their terms as an elected official; 27
UNOFFICIAL COPY 26 RS BR 1526
Page 5 of 7
XXXX 2/24/2026 12:17 PM Jacketed
(d) If a combination of cities and/or counties establishes a joint riverport 1
authority, the mayors and/or county judges/executive involved shall jointly 2
choose six (6) members to the terms as provided in subsection (2) of this 3
section, and shall jointly choose successors and may upon agreement appoint 4
a mayor or a member of a city legislative body and a county judge/executive 5
or a member of a fiscal court as two (2) additional members of the authority 6
for terms of two (2) years, provided that such persons may not serve on the 7
authority after the expiration of their terms as an elected official; and 8
(e) If a combination of more than two (2) counties establis hes a joint riverport 9
authority, the county judges/executive of each county and the mayor of the 10
largest city in each county, as of the most recent federal census, shall each 11
choose one (1) member to the terms set forth in subsection (2) of this 12
section. Each county judge/executive and mayor shall choose a successor, 13
and shall not appoint himself or herself as a member. 14
(2) Except as provided in subsection (1)(c) and (d) of this section, members of the 15
authority shall serve for a term of four (4) years each , and until their successors are 16
appointed and qualified, provided, however, that initial appointments shall be made 17
so that two (2) members are appointed for two (2) years, two (2) members for three 18
(3) years, and two (2) members for four (4) years. Upon expiration of these 19
staggered terms, successors shall be appointed for a term of four (4) years. 20
(3) A riverport authority member may be replaced by the appointing authority for 21
inefficiency, neglect of duty, malfeasance, or conflict of interest. The appoi nting 22
authority shall submit a written statement to the riverport authority setting forth the 23
reasons for removal, and the statement shall be read at the next authority meeting, 24
which shall be open to the general public. The member so removed shall have th e 25
right of appeal in the Circuit Court. Except as provided in subsection (1)(c) and (d) 26
of this section no riverport authority member shall hold any official office with the 27
UNOFFICIAL COPY 26 RS BR 1526
Page 6 of 7
XXXX 2/24/2026 12:17 PM Jacketed
appointing authority. 1
(4) Notwithstanding subsection (2) of this section, when a c ity of the first class and a 2
county containing such city have in effect a compact under KRS 79.310 to 79.330, 3
the terms of the members of the authority shall be for three (3) years and until their 4
successors are appointed and qualified. Upon the effective date of the compact, the 5
county judge/executive with the approval of the fiscal court shall adjust the terms of 6
the sitting members so that one -third (1/3) of the terms expire in one (1) year, one -7
third (1/3) expire in two (2) years, and one -third (1/3) ex pire in three (3) years. 8
Upon expiration of these staggered terms, successors shall be appointed for a term 9
of three (3) years. Upon the establishment of a consolidated local government in a 10
county where a city of the first class and a county containing th at city have had in 11
effect a cooperative compact pursuant to KRS 79.310 to 79.330, all members of the 12
authority shall be appointed by the mayor of the consolidated local government for 13
a term of three (3) years pursuant to the provisions of KRS 67C.139. In cumbent 14
members upon the establishment of the consolidated local government shall 15
continue to serve as members of the authority for the time remaining on their 16
current terms of appointment. 17
(5) If a combination of more than two (2) counties establishes a j oint riverport 18
authority, the authority shall adopt a code of ethics which, at a minimum, shall be 19
as stringent as the code of ethics of each of the establishing counites. The code of 20
ethics shall be delivered to the Department for Local Government and to each 21
establishing county pursuant to 65A.070. 22
(6) No member or employee of a riverport authority shall: 23
(a) Have any interest, direct or indirect, in the gains or profits of any 24
investment or any other legal, business, or financial transaction made by 25
the authority; 26
(b) Have any interest, direct or indirect, in the gains or profits of any vendor 27
UNOFFICIAL COPY 26 RS BR 1526
Page 7 of 7
XXXX 2/24/2026 12:17 PM Jacketed
doing business with the authority; 1
(c) Have a contract or agreement with the authority, individually or through a 2
business owned by a member or employee of the authority; 3
(d) Use his or her official position with the authority to obtain a financial gain 4
or benefit or advantage for himself or herself or a family member; 5
(e) Use confidential information acquired during his or her tenure with the 6
authority to further his or her own economic interests or that of another 7
person; or 8
(f) Hold outside employment with, or accept compensation from, any pe rson or 9
business with which he or she has involvement as part of his or her official 10
position with the authority. 11
(7) No member or employee of the authority shall have any interest, direct or 12
indirect, in the gains or profits of any investment or any other legal, business, or 13
financial transaction made by the authority for a period of five (5) years 14
following termination of his or her position. 15
Section 4. Whereas it is critical for the economic prosperity of the 16
Commonwealth to have riverport authorities and to ensure that board members of the 17
authorities adhere to the highest ethical standards, an emergency is declared to exist, and 18
this Act takes effect upon its passage and approval by the Governor or upon its otherwise 19
becoming a law. 20