KRS 65A Implementation Process
During the 2013 session of the Kentucky General Assembly, legislators passed House Bill 1 (HB1,) now codified as KRS 65A, which affected all existing special districts in Kentucky. The bill rewrote the definition of a special district, now called a “Special Purpose Governmental Entity” (SPGE), and included several governmental or quasi-governmental agencies that were previously NOT considered special districts. The definition of an SPGE as defined by the law uses a four-prong test:
- Exercises less than statewide jurisdiction;
- Exists for the purpose of providing one or a limited number of services or functions;
- Is governed by a board, council, commission, committee, authority, or corporation with policy-making authority that is separate from the state and the governing body of the city, county, or cities and counties in which it operates;
- Has the independent authority to generate public funds or may receive and expend public funds, grants, awards, appropriations from the state, any agency, city, county, or SPGE.
The Department for Local Government was charged with implementing HB1. The Cities and Special Districts Branch was given the task of overseeing the design and creation of the data submission process required by the law. In creating the forms and a web-portal, two main goals were kept in mind: compliance with the law, and user friendliness. The outcome of this effort has been a process defined by two separate parts – Registration and Financial Disclosure. An SPGE must complete both parts to be in compliance with the law.