AN ACT relating to local entities and declaring an emergency.

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AN ACT relating to local entities and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 91A.020 is amended to read as follows: 3
(1) Each city shall keep its accounting records and render financial reports in such a 4
way as to: 5
(a) Determine compliance with statutory provisions;[ and] 6
(b) Determine fairly and with full disclosure the financial operations of 7
constituent funds and account groups of the city; and 8
(c) Conform[ in conformity] with generally accepted governmental accounting 9
principles, except cities receiving and expending, from all sources and for 10
all purposes, less than fifteen million dollars ($15,000,000) may choose to 11
conform with the cash or the modified cash basis of accounting. 12
(2) Municipal accounting systems shall be organized and operated on a fund basis. 13
Section 2. KRS 91A.040 is amended to read as follows: 14
(1) Except as provided in subsections (2) and (3) of this section and Section 4 of this 15
Act, each city shall, after the close of each fiscal year, cause each fund of the city to 16
be audited by the Auditor of Public Accounts or a certified public accountant. The 17
audit shall be completed by March 1 immediately following the fiscal year being 18
audited. The city shall forward an electronic cop y of the audit report to the 19
Department for Local Government for information purposes by no later than April 1 20
immediately following the fiscal year being audited. 21
(2) In lieu of the annual audit requirements in subsection (1) of this section, a city with 22
a population equal to or less than three thousand (3,000) based upon the most recent 23
federal decennial census may elect to have an audit performed every other fiscal 24
year in the following manner: 25
(a) For a city that is not performing an agreed -upon engagem ent procedure 26
under Section 4 of this Act, after the close of each odd -numbered fiscal year, 27
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the city shall for that odd -numbered year cause each fund of the city to be 1
audited by the Auditor of Public Accounts or a certified public accountant. 2
The audits shall be completed by March 1 immediately following the fiscal 3
year to be audited. The city shall forward an electronic copy of the audit 4
report to the Department for Local Government for information purposes by 5
no later than April 1 immediately following the fiscal year being audited; and 6
(b) After the close of each even -numbered fiscal year, the city shall not be 7
required to complete an annual audit but shall forward an electronic copy of 8
its financial statement prepared in accordance with KRS 424.220 to the 9
Department for Local Government by no later than October 1 immediately 10
following the close of the even-numbered fiscal year. 11
(3) Any city, which for any fiscal year receives and expends, from all sources and for 12
all purposes, less than five hundred tho usand dollars ($500,000), and which has no 13
long-term debt, whether general obligation or revenue debt, shall not be required to 14
audit each fund of the city for that particular fiscal year. In addition, each city 15
exempted in accordance with this subsection shall: 16
(a) Annually prepare a financial statement in accordance with KRS 424.220 and 17
shall, not later than October 1 following the conclusion of the fiscal year, 18
forward one (1) electronic copy to the Department for Local Government for 19
information purposes; and 20
(b) If exempted under this subsection for more than four (4) consecutive fiscal 21
years after July 1, 2022, have performed an agreed -upon 22
procedures[prepared an attestation] engagement covering the fifth[fourth] 23
fiscal year in which the city qualified for an exemption under this subsection. 24
An agreed-upon procedures [attestation] engagement required under this 25
paragraph shall be completed in accordance with subsections (3) to (9) of 26
Section 4 of this Act and any other requirements established by the Aud itor 27
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of Public Accounts through the promulgation of administrative regulations 1
in accordance with KRS Chapter 13A [completed pursuant to this subsection 2
shall be: 3
1. Prepared by an independent certified public accountant or by the 4
Auditor of Public Accounts pursuant to a contract with the city using 5
generally accepted attestation standards as promulgated by the American 6
Institute of Certified Public Accountants and any additional procedures 7
established by the Department for Local Government through 8
administrative regulation; 9
2. Completed by no later than March 1 immediately following the 10
conclusion of the fiscal year in which in the attestation engagement is 11
required; 12
3. Submitted to the Department for Local Government as one (1) electronic 13
copy no later than April 1 after its completion; 14
4. Advertised to the public within thirty (30) days of its completion by 15
causing the publication of a legal display advertisement of not less than 16
six (6) column inches in a newspaper qualified under KRS 424.120 17
stating that the attestation has been prepared and copies have been 18
provided to each local newspaper of general circulation, each news 19
service, and each local radio and television station which has on file 20
with the city a written request to receive copies of financial statements 21
under KRS 424.220. Any city advertising under this subparagraph shall 22
be exempt from publishing its financial statement under KRS 23
424.220(6)(b) for any year in which it is required to have an attestation 24
engagement completed; and 25
5. Provided to the Auditor of Public Accounts upon request for review of 26
the final report and all related work papers and documents regarding the 27
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attestation engagement]. 1
(4) If a city is required by another provision of law to audit its funds more frequently or 2
more stringently than is required by this section, the city shall also comply with the 3
provisions of that law. 4
(5) The Department for Local Government shall, upon request, make available 5
electronic copies of the audit reports and financial statements received by it under 6
subsections (1) to (3) of this section to the Legislative Research Commission to be 7
used for the purposes of KRS 6.955 to 6.975 or to the Auditor of Public Accounts. 8
(6) Each city required [by this section ] to conduct an [annual or biennial ] audit under 9
subsection (1) or (2) of this section shall enter into a written contract with an 10
auditor, who shall be a certified public accountant or the Auditor of Public 11
Accounts. The contract shall set forth all terms and conditions of the agreement 12
which shall include but not be limited to requirements that: 13
(a) The auditor be employed to examine the basic financial statements, which 14
shall include the financial statements prepared in accordance with the basis 15
of accounting used by the city [ government -wide a nd fund financial 16
statements]; 17
(b) The auditor shall include in the [annual or biennial ] city audit report an 18
examination of local government economic assistance funds granted to the 19
city under KRS 42.450 to 42.495. The auditor shall include a certificatio n 20
with the [annual or biennial ]audit report that the funds were expended for the 21
purpose intended; 22
(c) All audit information be prepared in accordance with generally accepted 23
governmental auditing standards which include tests of the accounting records 24
and auditing procedures considered necessary in the circumstances. Where the 25
audit is to cover the use of state or federal funds, appropriate state or federal 26
guidelines shall be utilized; 27
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(d) The auditor shall prepare a[ typewritten or] printed report embodying: 1
1. The basic financial statements and accompanying supplemental and 2
required supplemental information; 3
2. The auditor's opinion on the basic financial statements or reasons why 4
an opinion cannot be expressed; and 5
3. Findings required to be reported as a result of the audit; 6
(e) The completed audit and all accompanying documentation shall be presented 7
to the city legislative body at a regular or special meeting; and 8
(f) Any contract with a certified public accountant for an audit shall provide that 9
[require the accountant to forward a copy of the audit report and management 10
letters to the Auditor of Public Accounts upon request of the city or the 11
Auditor of Public Account s, and] the Auditor of Public Accounts shall have 12
the right to review the certified public accountant's work papers upon request. 13
(7) A copy of an audit report which meets the requirements of this section shall be 14
considered satisfactory and final in meeti ng any official request to a city for 15
financial data, except for statutory or judicial requirements, or requirements of the 16
Legislative Research Commission necessary to carry out the purposes of KRS 6.955 17
to 6.975. 18
(8) Each city shall, within thirty (30) d ays after the presentation of an audit to the city 19
legislative body, publish an advertisement in accordance with KRS Chapter 424 20
containing: 21
(a) The auditor's opinion letter; 22
(b) A budget -to-actual comparison schedule for the general fund [The 23
"Budgetary Co mparison Schedules -Major Funds," which shall include the 24
general fund and all major funds]; 25
(c) A statement that a copy of the complete audit report, including financial 26
statements and supplemental information, is on file at city hall and is available 27
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for public inspection during normal business hours; 1
(d) A statement that any citizen may obtain from city hall a copy of the complete 2
audit report, including financial statements and supplemental information, for 3
his or her personal use; and 4
(e) A statement wh ich notifies citizens requesting a personal copy of the city 5
audit report that they will be charged for duplication costs at a rate that shall 6
not exceed twenty-five cents ($0.25) per page[; and 7
(f) A statement that copies of the financial statement prepared in accordance with 8
KRS 424.220, when a financial statement is required by KRS 424.220, are 9
available to the public at no cost at the business address of the officer 10
responsible for preparation of the statement]. 11
(9) Any resident of the city or owner of real property within the city may bring an 12
action in the Circuit Court to enforce the provisions of this section. Any person who 13
violates any provision of this section shall be fined not less than fifty dollars ($50) 14
nor more than five hundred dollars ($50 0). In addition, any officer who fails to 15
comply with any of the provisions of this section shall, for each failure, be subject 16
to a forfeiture of not less than fifty dollars ($50) nor more than five hundred dollars 17
($500), in the discretion of the court, which may be recovered only once in a civil 18
action brought by any resident of the city or owner of real property within the city. 19
The costs of all proceedings, including a reasonable fee for the attorney of the 20
resident or property owner bringing the actio n, shall be assessed against the 21
unsuccessful party. 22
(10) In the event of extenuating circumstances that prevent a city from completing and 23
submitting a required audit or financial statement in compliance with the applicable 24
deadlines in subsections (1) to (3) of this section, the city may submit a written 25
request for an extension of time to the Department for Local Government on a form 26
prescribed by the Department for Local Government. The Department for Local 27
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Government shall approve the request if, in th e judgment of the Department for 1
Local Government, the request is warranted by extenuating circumstances beyond 2
the control of the city or other factors that justify the city's noncompliance with the 3
required deadlines. The Department for Local Government may consider any 4
evidence it deems appropriate, including but not limited to proof of the city's 5
progress towards compliance. Extensions granted under this subsection shall not 6
exceed eighteen (18) months from the original due date of the audit or financia l 7
statement. If the Department for Local Government approves an extension for a city 8
and the city fails to complete and submit the required audit or financial statement in 9
compliance with that extended deadline, then the provisions of subsection (11) of 10
this section shall apply. 11
(11) If a city fails to complete an audit or financial statement and submit it to the 12
Department for Local Government as required in subsections (1) to (3) and (10) of 13
this section, the Department for Local Government shall notify t he Finance and 14
Administration Cabinet that the city has failed to comply with the audit 15
requirements of this section [,] and that any funds in the possession of any agency, 16
entity, or branch of state government shall be withheld from the city until further 17
notice. The Department for Local Government shall immediately notify the Finance 18
and Administration Cabinet when the city complies with the requirements of 19
subsections (1) to (3) and (10) of this section for all prior fiscal years it has failed to 20
comply w ith the audit requirements of this section, and the Finance and 21
Administration Cabinet shall direct the reinstatement of payments to the city, 22
including any funds that were withheld due to the noncompliance. This subsection 23
shall not be interpreted or cons trued to permit the state to withhold any 24
nondiscretionary payments to a city that are due the city for the provision of 25
services by the city to the state or any of its agencies, including for the use of city 26
utilities. 27
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(12) Within a reasonable time after the completion of a special audit or examination 1
conducted pursuant to KRS 43.050, the Auditor shall bill the city for the actual 2
expense of the audit or examination conducted. The actual expense shall include the 3
hours of work performed on the audit or ex amination as well as reasonable 4
associated costs, including but not limited to travel costs. The bill submitted to the 5
city shall include a statement of the hourly rate, total hours, and total costs for the 6
entire audit or examination. 7
(13) A city shall pr ovide a copy of any audit report completed pursuant to this section 8
to the Auditor of Public Accounts upon request. 9
Section 3. KRS 424.220 is amended to read as follows: 10
(1) Excepting officers who are exempted under subsection (8) of this section, every 11
public officer of any city, county, or district less than a county, or of any board, 12
commission, or other authority of a city, county, or district whose duty it is to 13
collect, receive, have the custody, control, or disbursement of any funds collected 14
from the public in any form shall, at the expiration of each fiscal year, prepare an 15
itemized, sworn statement of the funds collected, received, held, or disbursed by 16
him or her dur ing the fiscal year just closed, unless he or she has complied with 17
KRS 424.230. 18
(2) The statement shall show: 19
(a) The total amount of funds collected and received during the fiscal year from 20
each individual source; and 21
(b) The total amount of funds disbur sed during the fiscal year to each individual 22
payee. The list shall include only aggregate amounts to vendors exceeding one 23
thousand dollars ($1,000). 24
(3) Only the totals of amounts paid to each individual as salary or commission and 25
public utility bills s hall be shown. The amount of salaries paid to all nonelected 26
county employees shall be shown as lump -sum expenditures by category, including 27
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but not limited to road department, jails, solid waste, public safety, and 1
administrative personnel. 2
(4) The financ ial reporting and publishing requirements for a school district are 3
provided in KRS 160.463. 4
(5) The officer shall procure and include in or attach to the financial statement, as a part 5
thereof, a certificate from the cashier or other proper officer of the banks in which 6
the funds are or have been deposited during the past year, showing the balance, if 7
any, of funds to the credit of the officer making the statement. 8
(6) To provide notice to the public that the city's financial statement has been 9
completed as required by this section, [: 10
(a) The appropriate officer of a city that has performed an audit under KRS 91A.040 11
for the fiscal year or years, including the appropriate officer of any municipally 12
owned electric, gas, or water system, shall publish the au dit report in accordance 13
with KRS 91A.040(8); and 14
(b) ]the appropriate officer of a city that has not conducted an annual audit for the fiscal 15
year under one (1) of the exceptions provided in KRS 91A.040(2) or (3) shall 16
publish a legal display advertisemen t of not less than six (6) column inches in a 17
newspaper qualified under KRS 424.120 that the statement required by subsection 18
(1) of this section has been prepared and that copies have been provided to each 19
local newspaper of general circulation, each news service, and each local radio and 20
television station which has on file with the city a written request to be provided a 21
statement. The advertisement shall be published within thirty (30)[ninety (90)] days 22
after the submission of the financial statement to the Department for Local 23
Government under subsection (2)(b) or (3)(a) of Section 2 of this Act [close of the 24
fiscal year]. 25
(7) To provide notice to the public that the county's financial statement has been 26
completed as required by this section, the appropr iate officer of a county shall 27
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publish the county's audit, prepared in accordance with KRS 43.070 or 64.810, in 1
the same manner that city audits are published in accordance with KRS 91A.040(8). 2
(8) The provisions of this section shall not apply to officers of: 3
(a) A city of the first class; 4
(b) A county containing a city of the first class; 5
(c) A consolidated local government; 6
(d) An urban-county government; 7
(e) A city with a population equal to or greater than twenty thousand (20,000) 8
based upon the most recent federal decennial census; 9
(f) A city that has completed an audit pursuant to the provisions of subsection 10
(1) or (2)(a) of Section 2 of this Act; 11
(g) A ci ty that has completed an agreed -upon procedures engagement in 12
accordance with Section 4 of this Act; 13
(h) A public agency or joint public agency of a: 14
1. City of the first class; 15
2. Consolidated local government; or 16
3. County containing a city of the first class; or 17
(i)[(g)] A school district of a: 18
1. City of the first class; 19
2. Consolidated local government; or 20
3. County containing a city of the first class. 21
SECTION 4. A NEW SECTION OF KRS CHAPTER 91A IS CREATED TO 22
READ AS FOLLOWS: 23
(1) Beginning with fiscal years on and after July 1, 2027, a city required to complete 24
an audit pursuant to the provisions of Section 2 of this Act may elect to instead 25
have an agreed -upon procedures engagement with either the Auditor of Public 26
Accounts or a certified public accountant under the provisions of this section. 27
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(2) A city shall meet the following conditions in order to proceed with an agreed -1
upon procedures engagement under this section for a particular fiscal year: 2
(a) Unless proceeding under subsection (9) of this section, the city shall have 3
complied with any of the applicable requirements under Section 2 of this 4
Act or this section in the immediately preceding fiscal year; 5
(b) The city has not been subject to a special examination from the Auditor of 6
Public Accounts during the immediately preceding fiscal year or during the 7
fiscal year to be audited; 8
(c) For the fiscal year subject to be audited, the city received and expended 9
from all sources and for all purposes less than fifteen million dollars 10
($15,000,000); 11
(d) The city is not required by any other provision of state or federal law to 12
perform an audit or examination more stringent than is required by this 13
section; and 14
(e) The city shall meet any other standards and requirements not in conflict 15
with this subsection that may be established by the Auditor of Public 16
Accounts through the promulgation of administrative regulations in 17
accordance with KRS Chapter 13A. 18
(3) An agreed-upon procedures engagement entered into by a city under this section 19
shall be conducted and governed under the American Institute of Certified Public 20
Accountants (AICPA) professional standards and any additional standards and 21
requirements established by administrative regulation promulgated in accordance 22
with K RS Chapter 13A by the Auditor of Public Accounts. Any agreed -upon 23
procedures engagement conducted for a city shall, at a minimum, examine and 24
report on: 25
(a) Reconciliation of cash, including the recalculation of year -end bank 26
reconciliations, confirmation of beginning and ending balances, and 27
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verification that reconciled bank balances agree to fund cash balances in 1
the accounting system and financial statement; 2
(b) Confirmation of cash balances directly with any external financial 3
institutions; 4
(c) Fund balances and transfers; 5
(d) Inspection of investment holdings for compliance with applicable state law 6
and any policies adopted by the city; 7
(e) A statement of receipts and disbursements, including payroll disbursements; 8
(f) Identification of outstanding debt, including confirmation of beginning and 9
ending balances, any new debt issuance or payments, amortization 10
schedules, and compliance with debt terms; 11
(g) Verification that total expenditures do not exceed appropriations; and 12
(h) If applicable, an examination of local government economic assistance 13
funds granted to the city under KRS 42.450 to 42.495 to ensure the funds 14
were expended for the purposes intended. 15
(4) An agreed -upon procedures engagement performed under this section shall be 16
completed by March 1 immediately following the fiscal year being examined. A 17
copy of the agreed -upon procedures report shall be forwarded to the Department 18
for Lo cal Government for informational purposes no later than April 1 19
immediately following the fiscal year being examined. The Department for Local 20
Government shall, upon request, make available electronic copies of reports 21
submitted to it under this section to the Legislative Research Commission to be 22
used for the purposes of KRS 6.955 to 6.975 and to the Auditor of Public 23
Accounts if the Auditor is not a party to the agreed-upon procedures engagement. 24
(5) Any city proceeding under this section to perform an ag reed-upon procedures 25
engagement in lieu of an audit shall enter into a contract with the Auditor of 26
Public Accounts or a certified public accountant for the performance of that 27
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agreed-upon procedures engagement. The contract's terms and conditions shall 1
include but not be limited to: 2
(a) The Auditor of Public Accounts or the certified public accountant complete 3
an agreed-upon procedures report in compliance with subsection (3) of this 4
section; 5
(b) The completed agreed-upon procedures report shall be present ed to the city 6
legislative body at a regular or special meeting; and 7
(c) If the agreed -upon procedures engagement is completed by a certified 8
public accountant, that the Auditor of Public Accounts shall be allowed to 9
review the certified public accountant's work papers upon request. 10
(6) A copy of an agreed -upon procedures engagement report which meets the 11
requirements of this section shall be considered satisfactory and final in meeting 12
any official request to a city for financial data, except as may be req uired by the 13
Kentucky Revised Statutes, including those under KRS 6.955 to 6.975, and any 14
judicial requirements. 15
(7) An agreed -upon procedures engagement report completed under this section 16
shall be deemed sufficient to meet any state law or administrative regulation that 17
requires the submission or completion of an audit. 18
(8) Not later than thirty (30) days after the date on which the presentation of the 19
agreed-upon procedures engagement report has been made to the city, the city 20
shall publish an advertisem ent in accordance with KRS Chapter 424 that the 21
agreed-upon procedures engagement report has been completed for the city and 22
that: 23
(a) The complete report, along with supplemental information, is available for 24
inspection at city hall during normal business hours; and 25
(b) Any citizen may obtain from city hall a copy of the completed agreed -upon 26
procedures engagement report for personal use at a duplication cost not 27
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exceeding twenty-five cents ($0.25) per page. 1
(9) A city that is two (2) or more fiscal years behind in completing or reporting under 2
Section 2 or 3 of this Act may make an application to the Department for Local 3
Government to proceed under this section with a single agreed -upon procedures 4
engagement to bring the city into compliance for those fisc al years. The 5
Department for Local Government shall prescribe any requirements, conditions, 6
and other terms for using the process authorized under this subsection by 7
administrative regulation promulgated in accordance with KRS Chapter 13A. 8
Once completed, the Department for Local Government shall treat the city as 9
compliant with the requirements it had previously failed to meet under Section 2 10
or 3 of this Act. 11
(10) A city shall forward a copy of any agreed -upon procedures engagement report 12
completed pursua nt to this section to the Auditor of Public Accounts upon 13
request. 14
Section 5. KRS 75.031 is amended to read as follows: 15
(1) (a) 1. Upon creation of a fire protection district or a volunteer fire department 16
district as pr ovided in KRS 75.010, the affairs of the district shall be 17
conducted by the board of trustees consisting of seven (7) members, 18
four (4) to be elected by the members of the district as hereinafter set out 19
and three (3) to be appointed by the county judge/ex ecutive or the 20
mayor in a consolidated local government pursuant to the provisions of 21
KRS 67C.139. 22
2. Two (2) members of the board of trustees shall be elected by the 23
members of the firefighters of the district and shall be full-time paid 24
employees of the district or members of the district who personally 25
reside in the district. 26
3. Two (2) members of the board of trustees shall be property owners who 27
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own real or personal property which is subject to the fire protection tax 1
pursuant to KRS 75.040, who person ally reside in the district, and who 2
are not active firefighters and shall be elected by the property owners of 3
the district. Property owners voting to select representatives to the board 4
of trustees shall have attained the age of eighteen (18). 5
4. The county judge/executive of the county in which the greater part of 6
the district is located shall, with the approval of the fiscal court, appoint 7
three (3) members of the board of trustees who personally reside in the 8
district. In counties containing a city of the first class, trustees appointed 9
by the county judge/executive to serve in volunteer fire prevention 10
districts shall reside within the boundaries of that county. In counties 11
governed by a consolidated local government, trustees appointed by the 12
mayor to serve in volunteer fire prevention districts shall reside within 13
the boundaries of the consolidated local government. 14
5. At the first election held after the district is formed, one (1) firefighter 15
shall be elected to serve on the board of trustees for a period of one (1) 16
year and one (1) for a period of three (3) years, and one (1) 17
nonfirefighter property owner shall be elected to serve on the board of 18
trustees for a period of two (2) years and one (1) for a period of four (4) 19
years. On the expiration of the respective terms, the successor to each 20
shall have the same qualifications as his or her predecessor and shall be 21
elected for a term of four (4) years. The original appointed members of 22
the board of trustees shall be appointed for terms of one (1), two (2), and 23
three (3) years respectively. On the expiration of the respective terms, 24
the successors to each shall be appointed for a term of three (3) years. 25
6. Upon the establishment of a consolidated local government, incumbent 26
members shall continue to serve until the expiration of their current term 27
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of office. 1
7. In the event of a vacancy in the term of an appointed or elected trustee, 2
the county judge/executive shall appoint with the approval of the fiscal 3
court a trustee for the remainder of the term, e xcept in a county 4
containing a consolidated local government. In a county containing a 5
consolidated local government, the mayor pursuant to the provisions of 6
KRS 67C.139 shall appoint a trustee for the remainder of the term. 7
(b) An appointed trustee may be removed from office as provided by KRS 8
65.007. 9
(c) 1. No person shall be an elected trustee who is not a resident of the 10
district, except as provided in subsection (1)(a)2. of this section, and 11
who, at the time of his or her ele ction, is not a citizen of Kentucky and 12
has not attained the age of twenty-one (21). 13
2. Except for trustees elected under subsection (1)(a)2. of this section, a 14
vacancy shall be declared to exist if an elected trustee no longer 15
resides within the boundarie s of the district at any time during his or 16
her term of office. 17
(d) Unless otherwise provided by law, an elected firefighter trustee may be 18
removed from office by the mayor of a consolidated local government, or in a 19
county not containing a consolidated lo cal government, by the county 20
judge/executive of the county in which the greater part of the district is 21
located. An elected firefighter trustee may be removed after a hearing with 22
notice as required by KRS Chapter 424, for inefficiency, neglect of duty, 23
malfeasance, or conflict of interest. The hearing shall be initiated and chaired 24
by the county judge/executive of a county or the mayor of a consolidated local 25
government, who shall prepare a written statement setting forth the reasons 26
for removal. The trustee to be removed shall be notified of his or her proposed 27
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removal and the reasons for the proposed removal by registered mail sent to 1
his or her last known address at least ten (10) days prior to the hearing. The 2
person proposed to be removed may employ c ounsel to represent him or her. 3
A record of the hearing shall be made by the county judge/executive or mayor 4
respectively. 5
(e) The removal of an elected firefighter trustee of a fire protection district shall 6
be subject to the approval of the fiscal court of the county in which the greater 7
part of the district is located in those counties not containing a consolidated 8
local government or the legislative council in a county containing a 9
consolidated local government. 10
(f) An elected firefighter trustee remove d pursuant to paragraphs (d) and (e) of 11
this subsection may appeal, within ten (10) days of the rendering of the 12
decision of the fiscal court or legislative council, respectively, to the Circuit 13
Court of the county in which the greater part of the district is located. The 14
scope of the appeal shall be limited to whether the county judge/executive, 15
mayor, legislative council, or the fiscal court respectively, abused their 16
discretion in removing the trustee. 17
(2) The elective offices of members of the board of trustees shall be filled by an 18
election to be held once each year on the fourth Saturday of June between the hours 19
of 11:00 a.m. and 2:00 p.m. The polls shall be located at the principal fire house in 20
the district. The date, time, and place of the election shall be advertised in 21
accordance with KRS 424.120. This notice shall be advertised at least thirty (30) 22
days prior to the election date and shall include the names and addresses of the 23
candidates to be voted on for each position of trustee. In lieu of the published notice 24
for the election of the firefighter trustees, written notice containing the information 25
required to be advertised may be sent by first -class mail to each member of the 26
firefighters of the fire protection district or volunteer fire depart ment district, 27
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addressed to the firefighter at his or her residence, at least thirty (30) days prior to 1
the election date. The nominations for candidates for trustees both representing the 2
firefighters and the property owners residing in the district shall be made in 3
accordance with the bylaws of the department. The terms of the three (3) trustees 4
appointed by the county judge/executive or mayor shall start at the same time as the 5
terms of the elected trustees. On or before the beginning of the second fisca l or 6
calendar year, depending on which basis the fire protection or volunteer fire 7
department district is being operated, after June 16, 1966, all departments organized 8
prior to June 16, 1966, shall increase their boards of trustees from three (3) to seven 9
(7) members and elect the elective members in the manner set forth herein. 10
(3) The trustees shall elect from their number a chairman, a secretary, and a treasurer, 11
the latter of whom shall give bond in an amount as shall be determined by the 12
county judge/executive of the county in which the greater part of the fire protection 13
district is located or the mayor in a consolidated local government, conditioned 14
upon the faithful discharge of the duties of his or her office, and the faithful 15
accounting for all fu nds which may come into his or her possession as treasurer. 16
The premiums on the bonds shall be paid out of the funds of the district. 17
Section 6. KRS 273.207 is amended to read as follows: 18
(1) The affairs of a corporation shall be managed by a board of directors. Except as 19
provided in subsection (2) of this section, directors need not be residents of this 20
state or members of the corporation unle ss the articles of incorporation or the 21
bylaws so require. The articles of incorporation or the bylaws may prescribe other 22
qualifications for directors. 23
(2) The members of the board of directors of a fire department organized under this 24
chapter shall be re sidents of the geographic area served by the corporation. A 25
vacancy shall be declared to exist if a member no longer resides within the 26
geographic area served by the corporation at any time during his or her term of 27
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office. 1
Section 7. On the effective date of this section of this Act: 2
(1) A vacancy shall be declared to exist in the office of any board of trustees 3
member serving under Section 5 of this Act who does not qualify under subsection 4
(1)(a)2. of Section 5 of this Act, and the vacancy shall be filled in accordance with 5
Section 5 of this Act; and 6
(2) A vacancy shall be declared to exist in the office of any board of director 7
member serving under Section 6 of this Act who does not personally reside in the 8
geographic area served by the corporation, and the vacancy shall be filled in accordance 9
with KRS 273.213. 10
Section 8. Whereas it is critical to ensure the representation of residents served 11
by fire protection entities, an emergency is declared to exist, and Sections 5, 6, and 7 of 12
this Act take effect upon its passage and approval by the Governor or upon its otherwise 13
becoming a law. 14