Kentucky's
Public Notice Advertising Laws
Kentucky Revised Statutes (KRS) Chapter 424
KRS 424.110 Definitions
As used in KRS 424.110 to 424.370:
(1) "Publication area" means the city, county, district, or other local area for which an advertisement is required by law to be made. An advertisement shall be deemed to be for a particular city, county, district, or other local area if it concerns an official activity of the city, county, district, or other area or of any governing body, board, commission, officer, agency, or court thereof, or if the subject of the advertisement concerns particularly the people of the city, county, district, or other area;
(2) "Advertisement" means any matter required by law to be published; and
(3) "Zoned edition" means a newspaper edition published at least once a week, distributed in a specific geographic region of the newspaper's circulation area, and containing reporting and advertising of interest to subscribers in that geographic region.
HISTORY: 1992 c 9, § 1, eff. 7-14-92; 1960 c 168, § 1; 1958 c 42, § 1
NOTES OF DECISIONS
In general 1
Advertisement 3
Circulation 2
Financial report 4
1. In general
This statute repealed all conflicting statutes dealing with legal notices. Lyon v. Warren County (Ky. 1959) 325 S.W.2d 302.
There is no ambiguity in this statute and publication must be made as specified by it. (Annotation from former KRS 61.290.) Cooper v. Kentuckian Citizen (Ky. 1953) 258 S.W.2d 695.
This section, insofar as a city of the second class is governed by the commission form of government, is superseded by KRS 89.650 (KS 3235dd-39). (Annotation from former KRS 61.290.) Washburn v. Paducah Newspapers (Ky. 1938) 275 Ky. 527, 121 S.W.2d 911.
The publication of the statement to be made by the sheriff is to be considered an expense of the office and as such is paid from the fees and commissions collected by the sheriff. (Annotation from former KRS 61.290.) 1958 OAG 41464.
2. Circulation
The newspaper with the largest paid circulation in a county is entitled to publish the county treasurer's report, even if a competing newspaper also located in the county has a greater overall circulation; as KRS 424.220 requires financial matters of this type to be published for the purpose of informing the public of the financial activities of local governments, any latent ambiguity in the statute must be construed to promote its objective of providing notice to the largest number of affected persons. Whitley Whiz, Inc. v. Whitley County By and Through Whitley County Fiscal Court (Ky. 1991) 812 S.W.2d 149.
This section is not repealed by implication by KRS 68.370 nor does it repeal by implication KRS 68.070. It is the duty of the fiscal court and the county treasurer acting in conjunction with each other to publish the financial statement in the newspaper having the largest circulation in the county and in the detail prescribed by this section. (Annotation from former KRS 61.290.) Nichols v. Rogers (Ky. 1942) 292 Ky. 428, 166 S.W.2d 867.
Publication must be in the newspaper having the largest circulation in the entire county. (Annotation from former KRS 61.290.) Providence Pub. Co. v. Hearin (Ky. 1938) 272 Ky. 374, 114 S.W.2d 492.
If the only two daily newspapers in the county school district both claim to have the largest bona fide circulation, and neither admits the greater circulation of the other, it is suggested that the board secure from both newspapers affidavits as to the number of paid subscribers to each newspaper and follow the provisions of KRS 424.010 wherein the definition of "bona fide circulation" is set out and certain other limitations are placed upon newspapers to be considered for the publication of annual statement or audit. (Annotation from former KRS 61.290.) 1956 OAG 38586.
A newspaper's statement of ownership under KRS 424.120(1)(d) does not control the determination of the bona fide paid circulation of the newspaper within a given publication area. OAG 95-28.
3. Advertisement
City's failure to provide, in publication of its ordinance proposing annexation, the time and place where protest could be made would nullify its attempt to obtain constructive service of process, required by statute. City of Jeffersontown v. City of Hurstbourne (Ky.App. 1984) 684 S.W.2d 23. Municipal Corporations Key Number graphic 33(4)
Resolution of school board approving payment of approximately $550 for paint and other merchandise was a sufficient ratification, and payment was legal, where items purchased without competitive bidding fell within several categories, no one of which involved more than $500, and an official order or resolution duly adopted by the board without advertising for competitive bidding was all that was necessary to a valid authorization of each purchase in the first instance. Board of Ed. of Floyd County v. Hall (Ky. 1962) 353 S.W.2d 194. Schools Key Number graphic 80(2); Schools Key Number graphic 82(2)
A county must publish in a newspaper certain legal notices as required by statute. The qualifications of a newspaper for that purpose are determined under KRS 424.120. Letcher county ads must be published in one of two newspapers located in that county, depending upon the largest bona fide circulation. OAG 84-30.
When the fiscal court meticulously complies with the mandatory provisions of KRS 61.290 in publishing the final annual settlement of the sheriff with that court (which the sheriff is required to make under KRS 134.310 in October of each year of his term, except the last year when it is made after his term ends) this publication is a substantial compliance with KRS 61.290, and the sheriff does not have to make a separate advertisement of the same facts that are set forth in that annual statement. (Annotation from former KRS 61.290.) 1957 OAG 39983.
4. Financial report
Cities of the fifth class must publish ordinances in a newspaper located in the county if none exists in the city. OAG 62-546.
In view of the requirement that the date of each disbursement be shown, it is mandatory that monthly payments for telephone, electricity, water, etc., for the county judge's office and courthouse be itemized rather than listing them by a yearly total. (Annotation from former KRS 61.290.) 1957 OAG 40229.
Circuit court clerk is not required to publish an annual financial statement. (Annotation from former KRS 61.290.) 1957 OAG 39983.
County court clerks and circuit court clerks are not required to publish an annual financial statement. (Annotation from former KRS 61.290.) 1957 OAG 39549.
Receipts and disbursements from funds of a municipal water or electric plant owned by a city in a class other than the first class should be included in the financial statement published by the city under the provisions of this section in the same way and manner as taxes collected by the city. (Annotation from former KRS 61.290.) 1956 OAG 39236.
Where newspaper is the only one in a city it must carry the school financial report. The fact that the newspaper's general manager is, or possibly may become, a member of such board is immaterial. In general, the disqualifying interest of a school board member must be pecuniary or proprietary. (Annotation from former KRS 61.290.) 1956 OAG 38990.
There is no provision requiring the publication of the annual or any other audit of a municipal utility plant. (Annotation from former KRS 61.290.) 1955 OAG 37505.
It is incumbent upon each officer having in his custody public funds to comply with the requirement of an annual audit. The city has the legal right to require this to be done. (Annotation from former KRS 61.290.) 1955 OAG 35995.
Under KRS 92.405 and 61.290 it is the responsibility of a city of the fourth class to publish the receipts and expenditures of municipal board of water commissioners. (Annotation from former KRS 61.290.) 1955 OAG 37435.
424.120 Qualifications of newspapers
(1) Except as provided in subsection (2) of this section, if an advertisement for a publication area is required by law to be published in a newspaper, the publication shall be made in a newspaper that meets the following requirements:
(a) It shall be published in the publication area. A newspaper shall be deemed to be published in the area if it maintains its principal office in the area for the purpose of gathering news and soliciting advertisements and other general business of newspaper publications, and has a periodicals class mailing permit issued for that office. A newspaper published outside of Kentucky shall not be eligible to carry advertisements for any county or publication area within the county, other than for the city in which its main office is located, if there is a newspaper published in the county that has a substantial general circulation throughout the county and that otherwise meets the requirements of this section; and
(b) It shall be of regular issue and have a bona fide circulation in the publication area. A newspaper shall be deemed to be of regular issue if it is published at least once a week, for at least fifty (50) weeks during the calendar year as prescribed by its mailing permit, and has been so published in the area for the immediately preceding two (2) year period. A newspaper meeting all the criteria to be of regular issue, except publication in the area for the immediately preceding two (2) year period, shall be deemed to be of regular issue if it is the only paper in the publication area and has a paid circulation equal to at least ten percent (10%) of the population of the publication area. A newspaper shall be deemed to be of bona fide circulation in the publication area if it is circulated generally in the area, and maintains a definite price or consideration not less than fifty percent (50%) of its published price, and is paid for by not less than fifty percent (50%) of those to whom distribution is made; and
(c) It shall bear a title or name, consist of not less than four (4) pages without a cover, and be of a type to which the general public resorts for passing events of a political, religious, commercial, and social nature, and for current happenings, announcements, miscellaneous reading matter, advertisements, and other notices. The news content shall be at least twenty-five percent (25%) of the total column space in more than one-half (1/2) of its issues during any twelve (12) month period.
(d) If, in a publication area there is more than one (1) newspaper which meets the above requirements, the newspaper having the largest bona fide paid circulation as shown by the average number of paid copies of each issue as shown in its published statement of ownership as filed on October 1 for the publication area shall be the newspaper where advertisements required by law to be published shall be carried.
(e) For the purposes of KRS Chapter 424, publishing shall be considered as the total recurring processes of producing the newspaper, embracing all of the included contents of reading matter, illustrations, and advertising enumerated in paragraphs (a) through (d) of this subsection. A newspaper shall not be excluded from qualifying for the purposes of legal publications as provided in this chapter if its printing or reproduction processes take place outside the publication area.
(2) (a) If, in the case of a publication area smaller than the county in which it is located, there is no newspaper published in the area, the publication shall be made in a newspaper published in the county that is qualified under this section to publish advertisements for the county. If the qualified newspaper publishes a zoned edition which is distributed to regular subscribers within the publication area, any advertisement required by law to be published in the publication area may be published in the zoned edition distributed in that area.
(b) If, in any county there is no newspaper meeting the requirements of this section for publishing advertisements for that county, any advertisements required to be published for the county or for any publication area within the county shall be published in a newspaper of the largest bona fide circulation in that county published in and qualified to publish advertisements for an adjoining county in Kentucky. This subsection is intended to supersede any statute that provides or contemplates that newspaper publication may be dispensed with if there is no newspaper printed or published or of general circulation in the particular publication area.
(3) If a publication area consists of a district, other than a city, which extends into more than one (1) county, the part of the district in each county shall be considered to be a separate publication area for the purposes of this section, and an advertisement for each separate publication area shall be published in a newspaper qualified under this section to publish advertisements for the area.
HISTORY: 2006 c 8, § 3, eff. 7-12-06; 1992 c 9, § 2, eff. 7-14-92; 1984 c 201, § 1; 1982 c 430, § 3, c 180, § 1; 1960 c 168, § 1; 1958 c 42, § 2
NOTES OF DECISIONS
In general 1
County newspapers 4
Free publications 3
Newsstand copies 5
Paid circulation 2
1. In general
Substantial compliance in regard to publication is all that is required; therefore, when the initiation of a sewer project received considerable publicity, the purpose of the notification statute was met, although notice was not published in the newspaper with the greatest circulation. Conrad v. Lexington-Fayette Urban County Government (Ky. 1983) 659 S.W.2d 190, appeal dismissed 104 S.Ct. 1698, 466 U.S. 919, 80 L.Ed.2d 172.
The U.S. Postal Service's decision to redesignate "second class" mail as "periodicals" constitutes a ministerial change and such change does not affect the eligibility requirement for obtaining a permit under KRS 424.120 and such section should now be read as requiring a "periodicals" mailing permit. OAG 97-16.
A county hospital must publish an annual financial statement by paid advertisement in a local newspaper. A newspaper may publish other information from the records of the hospital as news items without cost to the hospital. OAG 82-608.
Mayor cannot contract with city for office supplies and equipment, but ownership of newspaper would probably not disqualify publication of public notices in his paper that qualifies under KRS Ch 424. OAG 66-18.
All ordinances must be published in newspaper rather than handbills as required by KRS Ch 424. 1960 OAG 55.
2. Paid circulation
The newspaper with the largest paid circulation in a county is entitled to publish the county treasurer's report, even if a competing newspaper also located in the county has a greater overall circulation; as KRS 424.220 requires financial matters of this type to be published for the purpose of informing the public of the financial activities of local governments, any latent ambiguity in the statute must be construed to promote its objective of providing notice to the largest number of affected persons. Whitley Whiz, Inc. v. Whitley County By and Through Whitley County Fiscal Court (Ky. 1991) 812 S.W.2d 149.
A newspaper's statement of ownership under KRS 424.120(1)(d) does not control the determination of the bona fide paid circulation of the newspaper within a given publication area. OAG 95-28.
A fiscal court, in determining which newspaper in the county has the greatest bona fide circulation for purposes of legal notices, may use any reasonable means to effect that purpose, including sworn testimony and filing of affidavits. OAG 82-90.
A judgment determining the largest bona fide circulation of one newspaper as against another is good only until the second newspaper can prove its bona fide circulation is the largest; the statutory qualification does not require one newspaper to have the largest paid circulation in the publication area, only that the circulation price is paid by not less than fifty per cent of those to whom distribution is made. OAG 65-859.
Fiscal court determines for purpose of advertising delinquent taxes, the paper having largest bona fide circulation, from the best information available to it, and can request that the newspapers file statements. OAG 64-399.
A newspaper owning two publications can qualify for printing ballot's facsimile only on the basis of the circulation of one paper. However, where the contract was awarded in error and the ballot advertisement published, the fiscal court is liable for the cost. OAG 62-231.
A weekly newspaper having a larger number of subscribers than any other daily paper distributed locally would qualify under the provisions of KRS 92.405 to publish city ordinances, resolutions, notices, etc. (Annotation from former KRS 424.010.) 1956 OAG 37860.
3. Free publications
A school district's annual performance report required pursuant to KRS 150.690 cannot be published in a newspaper that is distributed free; publication of the report is governed by KRS 424.120, relating to qualifications of newspapers for legal notices. OAG 86-72.
Free copies of newspapers distributed cannot be counted toward "bona fide circulation," except those copies sent to correspondents, advertisers or advertising agencies within the publication area as defined in the act. 1958 OAG 41979.
4. County newspapers
Conviction of county treasurer for failure to publish financial statement in time and manner directed by statute was not sustained by evidence which failed to prove that newspaper in the county possessed the qualifications required by statute. Williams v. Com. (Ky. 1965) 392 S.W.2d 454. Counties Key Number graphic 102
The master commissioner of the Campbell circuit court is required to advertise master commissioner sales in the Campbell County Recorder newspaper unless otherwise agreed upon by the parties, or unless the appraised value of the property to be sold is less than $100. OAG 94-9.
Small cities with a publication area smaller than the county but that have no local newspaper must publish their legal notices in the daily newspaper distributed uniformly throughout the county and not in the weekly neighborhoods section of that newspaper. OAG 85-38.
A county must publish in a newspaper certain legal notices as required by statute. The qualifications of a newspaper for that purpose are determined under KRS 424.120. Letcher county ads must be published in one of two newspapers located in that county, depending upon the largest bona fide circulation. OAG 84-30.
Financial statement must be published in newspaper published in an adjoining county if none published in county meets statutory requirement which requires one-year publication. OAG 65-131.
Cities of the fifth class must publish ordinances in a newspaper located in the county if none exists in the city. OAG 62-546.
5. Newsstand copies
Since the 1958 act does not define "bona fide circulation," until the court construes it otherwise, the phrase would include copies of newspapers sold on newsstands, as well as those delivered by newsboys. 1958 OAG 41892.
"Bona fide circulation" does not include those newspapers sold through newsstands. (Annotation from former KRS 424.010.) 1957 OAG 40563.
424.130 Times and periods of publication; posting of delinquent tax lists
(1) Except as otherwise provided in KRS 424.110 to 424.370 and notwithstanding any provision of existing law providing for different times or periods of publication, the times and periods of publications of advertisements required by law to be made in a newspaper shall be as follows:
(a) When an advertisement is of a completed act, such as an ordinance, resolution, regulation, order, rule, report, statement, or certificate and the purpose of the publication is not to inform the public or the members of any class of persons that they may or shall do an act or exercise a right within a designated period or upon or by a designated date, the advertisement shall be published one (1) time only and within thirty (30) days after completion of the act. However, a failure to comply with this paragraph shall not subject a person to any of the penalties provided by KRS 424.990 unless such failure continues for a period of ten (10) days after notice to comply has been given him by registered letter.
(b) When an advertisement is for the purpose of informing the public or the members of any class of persons that on or before a certain day they may or shall file a petition or exceptions or a remonstrance or protest or objection, or resist the granting of an application or petition, or present or file a claim, or submit a bid, the advertisement shall be published at least once, but may be published two (2) or more times, provided that one (1) publication occurs not less than seven (7) days nor more than twenty-one (21) days before the occurrence of the act or event.
(c) When an advertisement is for the purpose of informing the public and the advertisement is a notice of delinquent taxes, or notice of the sale of tax claims, the advertisement shall be published once, preceded by a one-half (1/2) page notice of advertisement the preceding week. The one-half (1/2) page advertisement shall include notice that a list of uncollectible delinquent taxes is also available for public inspection in accordance with KRS 424.330 during normal business hours at the business address of the city or county and on an identified Internet Web site. The advertisement shall include the business address of the city or county and the Uniform Resource Locator (URL) for the Internet Web site where the document can be viewed. The Internet Web site shall be affiliated with the city or county and contain other information about the city or county government. The delinquent tax list shall be posted on the Internet Web site for a minimum of thirty (30) days and shall be updated weekly. The provisions of this paragraph shall not be construed to require the advertisement of notice of delinquent state taxes which are collected by the state.
(d) Any advertisement not coming within the scope of paragraph (a), (b), or (c) of this subsection, such as one for the purpose of informing the public or the members of any class of persons of the holding of an election, or of a public hearing, or of an examination, or of an opportunity for inspection, or of the due date of a tax or special assessment, shall be published at least once but may be published two (2) or more times, provided that one (1) publication occurs not less than seven (7) days nor more than twenty-one (21) days before the occurrence of the act or event, or in the case of an inspection period, the inspection period commences.
(e) If the particular statute requiring that an advertisement be published provides that the day upon or by which, or the period within which, an act may or shall be done or a right exercised, or an event may or shall take place, is to be determined by computing time for the day of publication of an advertisement, the advertisement shall be published at least once, promptly, in accordance with the statute, and the computation of time shall be from the day of initial publication.
(2) This section is not intended to supersede or affect any statute providing for notice of the fact that an adversary action in court has been commenced.
HISTORY: 2006 c 8, § 4, eff. 7-12-06; 2002 c 346, § 231, eff. 7-15-02; 1988 c 32, § 1, eff. 7-15-88; 1960 c 168, § 1; 1958 c 42, § 3
NOTES OF DECISIONS
In general 1
Annexation 2
Judicial sales 5
Time of publication 4
Zoning changes 3
1. In general
Failure to strictly comply with the mandates of KRS 81.050 and 424.130 regarding the publishing of a notice to incorporate a municipality deprives a trial court of jurisdiction to enter a judgment incorporating that city. City of Okolona v. Lindsey (Ky. 1986) 706 S.W.2d 835.
The four-year waiting period for election changing form of government of Jefferson County fiscal court did not apply to holding of a new election following voiding of prior election for failure to comply with statutory notice requirements, because a void election is the same as no election. Robinson v. Ehrler (Ky. 1985) 691 S.W.2d 200. Counties Key Number graphic 20
News articles cannot be substituted for notices required to be published. Vincent v. City of Bowling Green (Ky. 1961) 349 S.W.2d 694.
Substantial compliance with this statute is sufficient and a distinction should be made between special and regular elections. Lyon v. Warren County (Ky. 1959) 325 S.W.2d 302.
Where there is a choice as to publication, KRS 424.190 and 424.130 apply regarding newspaper publication. OAG 63-983.
In the consolidation of precincts notices are to be published as required by KRS 424.130(1)(a), not 116.190. OAG 60-823.
2. Annexation
When a city passes an annexation ordinance, it must publish a simple notice conforming to KRS 424.130 and 424.140 informing the public of its right to protest the action within sixty days of publication of the ordinance. Merritt v. City of Campbellsville (Ky.App. 1984) 678 S.W.2d 788.
Where a city passes an annexation ordinance and publishes it as required by KRS 83A.060 and several weeks later causes the text of the notice plus a verbatim recitation of KRS 81A.420 to be published as the notice of the right to oppose the annexation, the ordinance is invalid because the verbatim publication of KRS 81A.420 was insufficient notice to inform the general public of the time frame required for protesting the annexation. Merritt v. City of Campbellsville (Ky.App. 1984) 678 S.W.2d 788.
Notice of filing of annexation petition must be published not more than twenty-one days before the expiration of time to remonstrate as fixed by the notice. City of St. Matthews v. Beha (Ky.App. 1977) 549 S.W.2d 842. Municipal Corporations Key Number graphic 33(4)
This statute governs the notice to be given of annexation ordinances. Vincent v. City of Bowling Green (Ky. 1961) 349 S.W.2d 694.
3. Zoning changes
Notice published on Sunday that hearing would be held by zoning board of adjustment in ten days to pass on application for permission to erect a 988- foot wireless transmitting television tower was sufficient to owner of land 500 feet away, under statute providing that notwithstanding any provision of law for a different time or period of publication, when advertisement is to inform public that on or before a certain day they may or shall resist application the advertisement shall be published at least once not less than 7 nor more than 21 days before occurrence of the act or event. Oeth v. Felty (Ky. 1967) 421 S.W.2d 860. Sunday Key Number graphic 30(3); Zoning And Planning Key Number graphic 434
County magisterial reapportionment requires that the fiscal court publish notice of the planned reapportionment in accordance with KRS Ch 424. OAG 82-354.
Where a city partially or generally revised its zoning regulations and map, the general publication of notice per KRS Ch 424 was sufficient, and individual notice was not required. OAG 82-84.
The legal notice required in the justices' districts reapportionment must include the whole timetable of events if the notice to citizens generally is to be effective. OAG 79-552.
4. Time of publication
The provisions of KRS 424.130(1)(a) apply as to the number of times that the facsimile of the ballot is to be published. 1959 OAG 43746.
The provisions of KRS 424.130 cannot be substituted for the mandatory provisions of section 257 of the constitution, and likewise cannot have the effect of repealing KRS 118.430(1); therefore the publication of proposed amendments must be made ninety days before the election in order to meet the constitutional requirements. 1959 OAG 43527.
A final settlement of administration of an estate is required to be published once a week for three successive weeks in the newspaper of regular issue having the largest bona fide circulation in the county and which meets the other requirements of the statute. 1959 OAG 43559.
5. Judicial sales
The time within which a publication is required does not apply to publication of a notice of intention to apply for a license. Palmer-Ball v. Esquire Liquors, Inc. (Ky. 1973) 490 S.W.2d 472.
The constitution requires that proposed utility franchise ordinance to be advertised for bids prior to enactment which then must be readvertised. OAG 79-303.
Publication of judicial sales is controlled by KRS 424.130 rather than KRS 426.560. OAG 66-769.
424.140 Contents or form of advertisements
(1) Any advertisement of a hearing, meeting or examination shall state the time, place and purpose of the same.
(2) Any advertisement of an election shall state the time and purpose of the election, and if the election is upon a public question the advertisement shall state the substance of the question.
(3) Any advertisement for bids or of a sale shall describe what is to be bid for or sold, the time and place of the sale or for the receipt of bids, and any special terms of the sale.
(4) Where any statute provides that, within a specified period of time after action by any governmental agency, unit or body, members of the public or anyone interested in or affected by such action shall or may act, and it is provided by statute that notice of such governmental action be published, the advertisement shall state the time and place when and where action may be taken.
HISTORY: 1960 c 168, § 1, eff. 6-16-60; 1958 c 42, § 4
NOTES OF DECISIONS
In general 1
Annexation 3
Elections 2
1. In general
In proceeding on petition for incorporation of sixth class city, petitioners' failure to set out the date for a hearing in their notice was a jurisdictional defect. Cole v. Stephens (Ky.App. 1979) 582 S.W.2d 657. Municipal Corporations Key Number graphic 12(6)
2. Elections
Election returning Jefferson County fiscal court from a commissioner to a magisterial form of government was void for failure to comply with statutory requisites concerning newspaper publication, hand bill notice and timeliness of order calling the election. Robinson v. Ehrler (Ky. 1985) 691 S.W.2d 200. Counties Key Number graphic 20
Where advertisement pertaining to local option liquor election stated that election was to be held on certain date between specified hours to take sense of voters upon question of whether sale of alcoholic beverages within precinct should continue to be permitted, election was not invalid on basis that advertisement had not contained substance of question to be voted on as required by statute. McDonald v. Whallen (Ky. 1967) 415 S.W.2d 840. Intoxicating Liquors Key Number graphic 33(3)
3. Annexation
When a city passes an annexation ordinance, it must publish a simple notice conforming to KRS 424.130 and 424.140 informing the public of its right to protest the action within sixty days of publication of the ordinance. Merritt v. City of Campbellsville (Ky.App. 1984) 678 S.W.2d 788.
Where a city passes an annexation ordinance and publishes it as required by KRS 83A.060 and several weeks later causes the text of the notice plus a verbatim recitation of KRS 81A.420 to be published as the notice of the right to oppose the annexation, the ordinance is invalid because the verbatim publication of KRS 81A.420 was insufficient notice to inform the general public of the time frame required for protesting the annexation. Merritt v. City of Campbellsville (Ky.App. 1984) 678 S.W.2d 788.
Notice of filing of petition for annexation which fails to give times within which remonstrants could respond to the petition for annexation is defective. Wakefield v. City of Shelbyville (Ky.App. 1978) 563 S.W.2d 756.
In the absence of a showing of prejudice, a defect in the publication of the notice of the commencement of the annexation proceeding is not grounds for dismissal of the proceeding. Wakefield v. City of Shelbyville (Ky.App. 1978) 563 S.W.2d 756.
Publication of notice of filing of annexation suit more than 21 days before date fixed in advertisement as last day to remonstrate invalidated the annexation. City of St. Matthews v. Beha (Ky.App. 1977) 549 S.W.2d 842. Municipal Corporations Key Number graphic 33(4).
424.150 Person responsible for publishing
When any statute providing for newspaper publication of an advertisement does not designate the person responsible for causing the publication to be made, the responsible person shall be:
(1) Where the advertisement is of the filing of a petition or application, the person by whom the same is filed;
(2) Where the advertisement is of an activity or action of:
(a) An individual public officer, the officer himself;
(b) A city, the city clerk if there be one; if not, the mayor;
(c) A county, the county clerk;
(d) A district, or a board, commission or agency of a city, county or district, the chief administrative or executive officer or agent thereof;
(e) A court, the clerk thereof;
(f) A state department or agency, the head thereof.
HISTORY: 1986 c 23, § 15, eff. 7-15-86; 1978 c 384, § 525; 1960 c 168, § 1; 1958 c 42, § 5
424.160 Rates for newspaper advertising required by law
(1) For all newspaper advertising required by law, the publisher is entitled to receive payment for each insertion at a rate per column inch. The advertisement shall be set in no larger than seven (7) point type on solid leading. The rate shall not exceed the lowest noncontract classified rate paid by advertisers. The terms and conditions of any volume discounts given to commercial customers shall be extended to public agencies of the Commonwealth of Kentucky. Newspapers shall give all local public agencies a written notice of at least thirty (30) days of an advertising rate increase.
(2) If by law or by the nature of the matter to be published, a display form of advertisement is required, or if the person or officer responsible for causing an advertisement to be published determines in his discretion that a display form is practicable or feasible, and so directs the newspaper, the advertisement shall be published in display form and the newspaper shall be entitled to receive its established display rate.
(3) If it is provided by statute that an advertisement shall be published of the filing of a petition or application seeking official action, the filing, if required by other than a governmental official or agency, shall not be deemed complete unless there is deposited with the petition or application an amount sufficient to pay the cost of publication.
(4) The expense of advertisements in judicial proceedings shall be taxed as costs by the clerk of the court.
HISTORY: 2006 c 8, § 5, eff. 7-12-06; 1992 c 396, § 1, eff. 7-14-92; 1982 c 430, § 4; 1960 c 168, § 1; 1958 c 42, § 6
NOTES OF DECISIONS
In general 1
News item 2
Point type size 3
1. In general
Charge for advertising a commissioner's sale held too much under the provisions of this section. (Annotation from former KRS 424.030.) Cornett v. Muncy (Ky. 1929) 228 Ky. 390, 15 S.W.2d 251.
The rate of compensation for advertising allowed by this section is a fair standard for rates for advertisements of sales of real estate in equity receivership. (Annotation from former KRS 424.030.) Thornton v. Gault (E.D.Ky. 1937) 18 F.Supp. 112. Receivers Key Number graphic 154(1)
2. News item
Fact that public was kept informed step-by-step with annexation procedure through media of news items on first page of daily newspaper did not constitute substantial compliance with statutory provisions for publication of ordinance. Vincent v. City of Bowling Green (Ky. 1961) 349 S.W.2d 694. Municipal Corporations Key Number graphic 110
A county hospital must publish an annual financial statement by paid advertisement in a local newspaper. A newspaper may publish other information from the records of the hospital as news items without cost to the hospital. OAG 82-608.
3. Point type size
Governmental matter to be advertised should not be printed in a point type smaller than 8 point; and the actual rate for publishing such material must be based upon the space required by 8 point type, even if a larger type is used. OAG 77-141.
424.170 Proof of publication
(1) The affidavit of the publisher or proprietor of a newspaper, stating that an advertisement has been published in his newspaper and the times it was published, attached to a copy of the advertisement, constitutes prima facie evidence that the publication was made as stated in the affidavit.
(2) The affidavit of the person responsible for publishing as described in KRS 424.150, stating that an advertisement has been delivered by first class mail to each residence within the publication area, attached to a copy of the advertisement, constitutes prima facie evidence that the publication was made as stated in the affidavit and that the expenditure for the cost of postage, all supplies, and reproduction of the advertisement did not exceed the cost of newspaper publication of the advertisement.
HISTORY: 1982 c 430, § 5, eff. 7-15-82; 1958 c 42, § 7
424.180 Advertisements of state agencies
Any advertisement which a state officer, department or agency is required by law to have published shall, if intended to give statewide notice, be published in such newspaper or newspapers, to be designated by the Finance and Administration Cabinet, as will provide reasonable statewide coverage, unless the Finance and Administration Cabinet approves an alternative and cost-effective method of delivery. If the advertisement particularly affects a local area, it shall be published, for each county in the area, in a newspaper qualified under KRS 424.120 to publish advertisements for such county, unless the Finance and Administration Cabinet approves an alternative and cost-effective method of delivery. The latter publication shall be in addition to the former, if the advertisement affects the state at large as well as the local area.
HISTORY: 2006 c 252, Part XXI, § 1, eff. 4-25-06; 1958 c 42, § 8, eff. 6- 19-58
424.190 Alternatives to newspaper publication abolished; exception; information required to be sent to Department for Local Government
(1) If a statute gives discretion to a public officer or agency or governmental body as to the method of making an advertisement required by the statute, and if a statute provides that an advertisement may be made either by posting or by newspaper publication, the advertisement shall be made by newspaper publication in accordance with the provisions of this chapter, except as provided in subsection (2) of this section.
(2) Any city may, when the cost of the newspaper publication exceeds the cost of postage, supplies, and reproduction for the alternative method of publication, in lieu of newspaper publication of advertisement, substitute delivery of a copy of the advertisement by first class mail to each residence within the publication area. Any city electing to use the alternative publication methods authorized by this section shall forward three (3) copies of its audit report or one (1) copy of its financial statement, whichever is applicable, to the Kentucky Department for Local Government in accordance with KRS 91A.040 and 424.220.
HISTORY: 1998 c 69, § 78, eff. 7-15-98; 1992 c 34, § 2, eff. 7-14-92; 1990 c 52, § 2; 1982 c 430, § 6; 1958 c 42, § 9
NOTES OF DECISIONS
In general 1
Mailing 2
Publication 3
1. In general
The sheriff does not have discretion in choosing the method of advertisement for a local option election and is not only required to publish the order of the election in newspapers, but is also required to post handbills. Chumley v. Williams (Ky.App. 1982) 639 S.W.2d 557. Intoxicating Liquors Key Number graphic 33(3)
City audit is required only after the expiration of a legislative term. A city also has alternative audit and publication procedures. OAG 82-350.
Where there is a choice as to publication, KRS 424.190 and 424.130 apply regarding newspaper publication. OAG 63-983.
All ordinances must be published in newspaper rather than handbills as required by KRS Ch 424. 1960 OAG 55.
City ordinances must be published in newspaper rather than by posting. 1960 OAG 224.
2. Mailing
A fifth or sixth class city may mail to each resident a copy of an ordinance rather than publish the same in the newspaper when the cost of publication exceeds the cost of mailing. However, hand delivery of a copy of the ordinance would not satisfy the statute. OAG 82-551.
3. Publication
Publishing merely the "highlights" of an ordinance is insufficient, particularly with respect to zoning ordinances, and such ordinances must be published in full. 1959 OAG 42916.
424.195 Supplementation of printed notice by broadcast in certain cases
(1) Any official of the Commonwealth of Kentucky or any of its political subdivisions who is required by law to publish any legal notice or notice of event may supplement, not to exceed twelve (12) publications unless otherwise ordered by a court of competent jurisdiction thereof by use of radio or television spot announcements, or both, when, in his judgment, the public interest will be served thereby; except, that notices by political subdivisions may be made only by stations having a broadcast studio within the county of origin of the legal notice, and that broadcast notices shall call attention solely to published or posted notices required by statute.
(2) Each radio or television station broadcasting a legal notice or notice of event shall for a period of three (3) months subsequent to such broadcast retain at its office a copy of the transcript of the text of the notices actually broadcast and such shall be available for public inspection.
(3) The radio or television station which broadcasts the legal notice authorized by this section shall be entitled to receive payment of an amount equal to the customary charges of such station for such service.
(4) The publication of legal notices under this section shall be restricted to legal notices relating to those official acts of public officers requiring a final determination by order of any court of competent jurisdiction in the Commonwealth.
HISTORY: 1970 c 100, § 1, eff. 6-18-70
424.210 Official newspapers abolished
No official newspaper shall be designated by any governmental unit for the publication of advertisements for such unit.
HISTORY: 1958 c 42, § 11, eff. 6-19-58
424.215 Advertising by public agencies; rates charged
Notwithstanding KRS 65.070, 83A.060, 91A.040, 160.463, 424.180, 424. 190, 424.220, 424.230, 424.250, 424.260, 424.270, 424.330, any public agency required to advertise or publish notices or documents in a newspaper shall be charged the lowest rate generally charged for advertising by the newspaper.
HISTORY: 2005 c 106, § 11, eff. 6-20-05
424.220 Financial statements
(1) Excepting officers of a city of the first class or a consolidated local government, a county containing such a city or consolidated local government, a public agency of such a city, consolidated local government, or county, or a joint agency of such a city, consolidated local government, and county, or of a school district of such a city, consolidated local government, or county, and excepting officers of a city of the second class or an urban-county government, every public officer of any school district, city, consolidated local government, county, or subdivision, or district less than a county, whose duty it is to collect, receive, have the custody, control, or disbursement of public funds, and every officer of any board or commission of a city, consolidated local government, county, or district whose duty it is to collect, receive, have the custody, control, or disbursement of funds collected from the public in the form of rates, charges, or assessments for services or benefits, shall at the expiration of each fiscal year prepare an itemized, sworn statement of the funds collected, received, held, or disbursed by him during the fiscal year just closed, unless he has complied with KRS 424.230. Pursuant to subsections (2) and (3) of KRS 91A.040, each city of the sixth class shall prepare an itemized, sworn statement of the funds collected, received, held, or disbursed by the city which complies with the provisions of this section.
(2) The statement shall show:
(a) The total amount of funds collected and received during the fiscal year from each individual source; and
(b) The total amount of funds disbursed during the fiscal year to each individual payee. The list shall include only aggregate amounts to vendors exceeding one thousand dollars ($1,000).
(3) Only the totals of amounts paid to each individual as salary or commission and public utility bills shall be shown. The amount of salaries paid to all nonelected county employees shall be shown as lump-sum expenditures by category, including but not limited to road department, jails, solid waste, public safety, and administrative personnel.
(4) The amount of salaries paid to all teachers shall be shown as a lump-sum instructional expenditure for the school district and not by amount paid to individual teachers. The amount of salaries paid to all other employees of the board shall be shown as lump-sum expenditures by category, including but not limited to administrative, maintenance, transportation, and food service. The local board of education and the fiscal court shall have accessible a factual list of individual salaries for public scrutiny and the local board and the fiscal court shall furnish by mail a factual list of individual salaries of its employees to a newspaper qualified under KRS 424.120 to publish advertisements for the district, which newspaper may then publish as a news item the individual salaries of school or county employees.
(5) The officer shall procure and include in or attach to the financial statement, as a part thereof, a certificate from the cashier or other proper officer of the banks in which the funds are or have been deposited during the past year, showing the balance, if any, of funds to the credit of the officer making the statement.
(6) The officer shall, except in a city publishing its audit in accordance with KRS 91A.040(6), within sixty (60) days after the close of the fiscal year cause the financial statement to be published in full in a newspaper qualified under KRS 424.120 to publish advertisements for the city, county, or district, as the case may be. Promptly after the publication is made, the officer shall file a written or printed copy of the advertisement with proof of publication, in the office of the county clerk of the county and with the Auditor of Public Accounts.
(7) In lieu of the publication requirements of subsection (6) of this section, the appropriate officer of a city, including the appropriate officer of any municipally owned electric, gas, or water system, shall elect to satisfy the requirements of subsection (6) of this section by:
(a) Publishing an audit report in accordance with KRS 91A.040(6); and
(b) Publishing a legal display advertisement of not less than six (6) column inches in a newspaper qualified under KRS 424.120 that the statement required by subsection (1) of this section has been prepared and that copies have been provided to each local newspaper of general circulation, each news service, and each local radio and television station which has on file with the city a written request to be provided a statement. The advertisement shall be published within ninety (90) days after the close of the fiscal year.
(8) The appropriate officer of a county shall satisfy the requirements of subsection (6) of this section by publishing the county's audit, prepared in accordance with KRS 43.070 or 64.810, in the same manner that city audits are published in accordance with KRS 91A.040(6).
HISTORY: 2006 c 8, § 6, eff. 7-12-06; 2002 c 346, § 232, eff. 7-15- 02; 1998 c 69, § 79, eff. 7-15-98; 1990 c 52, § 3, eff. 7-13-90; 1988 c 32, § 2; 1984 c 277, § 1; 1982 c 430, § 7; 1978 c 384, § 526; 1976 c 71, § 1; 1962 c 170, § 1; 1960 c 168, § 1; 1958 c 42, § 12
NOTES OF DECISIONS
In general 1
Boards, authorities and commissions 4
Cities 2
County agencies 6
Districts 3
Local departments 5
1. In general
The newspaper with the largest paid circulation in a county is entitled to publish the county treasurer's report, even if a competing newspaper also located in the county has a greater overall circulation; as KRS 424.220 requires financial matters of this type to be published for the purpose of informing the public of the financial activities of local governments, any latent ambiguity in the statute must be construed to promote its objective of providing notice to the largest number of affected persons. Whitley Whiz, Inc. v. Whitley County By and Through Whitley County Fiscal Court (Ky. 1991) 812 S.W.2d 149.
In a prosecution against the county treasurer for failing to publish the report in the local newspaper, it must be shown that the newspaper possessed the required qualifications. Williams v. Com. (Ky. 1965) 392 S.W.2d 454.
"Person" as used in KRS 424.220 includes firms and corporations. 1960 OAG 786.
The responsibility for publication of financial statements is placed upon the individual officer, and the expense must be paid by such officer and constitutes an expense of the office. 1959 OAG 43232.
Since a circuit clerk is required by law to collect and have in his custody state funds under KRS 46.030 and fines and forfeitures under KRS 46.050, and collects other funds under various sections of the statutes, it is without question that he is subject to the provisions of KRS 424.220 and 424.230. 1958 OAG 41827.
2. Cities
Allegations in plaintiff's complaint that city board of trustees did not publish financial statements for city pursuant to statute, that they had not adopted and published budget pursuant to statute, that they had enacted ordinance providing for license fee which did not conform to requirements of statute, and that they had not advertised for bids to obtain facilities for city hall pursuant to statute, all had statutory remedies provided by legislature which conferred standing on citizens of governmental unit to bring actions to compel adherence to law by that unit. Fish v. Elliott (Ky.App. 1977) 554 S.W.2d 94. Municipal Corporations Key Number graphic 987
When a city publishes its financial statement instead of its audit report, it must do so sixty days after the audit report, not sixty days after the fiscal year's end. OAG 83-56.
A city of the sixth class must continue to prepare an audit and publish it under the terms of KRS 91A.040, subsection (7), (8) or (9). However, if the city qualifies under KRS 91A.041, it may publish a financial statement in lieu of an audit. OAG 82-384.
1982 H 429 [1982 Acts Ch 430], effective July 15, 1982, applies to municipal governments with respect to the publication requirements for financial statements for the fiscal year July 1, 1981 to June 30, 1982. OAG 82-353.
The officer of a third class city, entrusted with funds, must publish annual financial statement showing detailed vouchers relating to receipts and disbursements and the monthly and quarterly statements, in lieu of an annual statement, are optional. OAG 66-297.
A city must report individually all expenditures in financial statement except lump sum payments to individuals as salary or commission or utility bills. OAG 64-129.
The city clerk or city treasurer is required to publish the amount of tax moneys received during fiscal year and the detailed disbursements thereof. 1959 OAG 42762.
Cities of the fifth class are required to publish their financial statements as well as ordinances and regulations, and posting heretofore permitted under KRS 87.050(3) is apparently forbidden. 1958 OAG 41760.
3. Districts
KRS 65.070, relating to publication of financial statements, does not apply to a district health department. The financial statement provisions of KRS 424.220 do apply to a district health department. OAG 85-45.
A district health department is not a taxing district; thus, a summary financial statement under KRS 65.070 does not apply. KRS 424.220 (financial statement) does not apply to a district health department. OAG 84- 335.
A hospital district organized pursuant to the provisions of KRS 216.310 to 216.360 is required to publish an annual statement consistent with the requirements of KRS 65.070(1)(c) in lieu of the annual financial statement required by KRS 424.220. OAG 82-631.
A fire protection district now is required to publish an annual financial statement consistent with the requirements of KRS 65.070(1)(c) in place of the annual financial statement formerly required by KRS 424.220. OAG 80- 627.
A water district organized under KRS Ch 74 is subject to the provisions of KRS 424.220 which requires publication of an annual financial statement. 1958 OAG 41971.
4. Boards, authorities and commissions
A riverport authority must publish its annual financial statement pursuant to KRS 424.220. OAG 83-392.
A joint city-county parks and recreation board is not required by statute to have its accounts audited, but under KRS 424.220, it is required to publish an annual financial statement. OAG 83-327.
City board and commission must publish financial statements in detail; publication of an audit report is insufficient. 1960 OAG 794.
Municipal housing commission as a state agency is not subject to requirements of Publication Act relating to local commissions. OAG 60-486.
In view of the provisions of KRS 215.310, KRS 424.220 applies to a financial statement of a board of trustees of a county tuberculosis sanitorium district; but the treasurer of the board could, under KRS 424.320, elect to publish the quarterly statements made pursuant to KRS 215.340 in lieu of the annual statements required by KRS 424.220. 1959 OAG 43148.
A water plant board operated under the provisions of KRS 96.171 etc. is required to publish a financial statement under the terms of KRS 424.220 (1958 c 42). 1958 OAG 41680.
City water, sewer and sanitation commission is required to publish a financial statement, either under the provisions of KRS 424.220 (1958 c 42) or under the provisions of KRS 92.405. 1958 OAG 41680.
5. Local departments
A local health department must publish an individualized itemized financial statement in accordance with KRS 424.220 unless it falls within an exception to the statute. An exception to the statute exists for a local health department which is co-extensive with the local health taxing district pursuant to KRS 65.070. OAG 80-325.
A local health department whose funds are subject to the control of the Kentucky state health department are exempt from publication requirements as to state and federal funds; a statement of funds raised locally must be published. OAG 64-330.
6. County agencies
A county hospital must publish an annual financial statement by paid advertisement in a local newspaper. A newspaper may publish other information from the records of the hospital as news items without cost to the hospital. OAG 82-608.
The county attorneys of Kentucky are not required to file a financial statement under KRS 424.220. The auditing of the county attorney's books is adequate in disclosing the specifics of his official operation. OAG 81-168.
A county hospital is required to publish a financial statement, and it must include the total amount of hospital fees or charges received, without detailing the names of the patients paying the fees. OAG 73-308.
There is no statutory basis authorizing additional compensation for a county treasurer for preparing and causing publication of the annual financial statement since it is a part of his statutory duties. OAG 65-100.
County treasurer is required to file financial statement on behalf of county and the fiscal court is required to pay publication cost; violation of KRS 424.220 is a misdemeanor for which prosecution must be begun within one year after offense, the date of the offense being the sixtieth day after close of fiscal year. OAG 64-627.
Filing of financial statement by county treasurer with fiscal court, county judge and county clerk does not dispense with publication requirements of KRS 424.220. OAG 64-627.
The county attorney is an officer within the contemplation of KRS 424.220 and must publish annually his financial statement. 1958 OAG 42074.
424.230 Optional monthly or quarterly statements
Any officer who is subject to the provisions of KRS 424.220 may elect to prepare and publish monthly or quarterly statements, in lieu of the annual statements required by KRS 424.220. All of the provisions of KRS 424.220 shall be applicable to such a monthly or quarterly statement except that (1) the statement shall cover only the preceding month or quarter, as the case may be, and (2) the publication shall be made within thirty (30) days after the end of the month or quarter, as the case may be. Any officer who has elected to proceed under this section shall not be exempted from the requirements of KRS 424.220 for any fiscal year unless he has caused to be prepared and published, in accordance with this section, a proper statement for each month or quarter of the fiscal year.
HISTORY: 1958 c 42, § 13, eff. 6-19-58
424.240 County or city budget
Immediately following the adoption of an annual budget by any county or city other than one of the first class or a consolidated local government, the clerk shall cause a summary of the budget or the text of the budget ordinance to be advertised for the county, consolidated local government, or city by publication in a newspaper.
HISTORY: 2002 c 346, § 233, eff. 7-15-02; 1984 c 201, § 2, eff. 7-13-84; 1960 c 168, § 1; 1958 c 42, § 14
424.250 School district budget
At the same time that copies of the budget of a school district are filed with the clerk of the tax levying authority for the district, as provided in KRS 160.470, the board of education of the district shall cause the budget to be advertised for the district by publishing a copy of the budget in a newspaper.
HISTORY: 1958 c 42, § 15, eff. 6-19-58
424.260 Bids for materials, supplies, equipment, or services
(1) Except where a statute specifically fixes a larger sum as the minimum for a requirement of advertisement for bids, no city, county, or district, or board or commission of a city or county, or sheriff or county clerk, may make a contract, lease, or other agreement for materials, supplies except perishable meat, fish, and vegetables, equipment, or for contractual services other than professional, involving an expenditure of more than twenty thousand dollars ($20,000) without first making newspaper advertisement for bids.
(2) If the fiscal court requires that the sheriff or county clerk advertise for bids on expenditures of less than twenty thousand dollars ($20,000), the fiscal court requirement shall prevail.
(3) (a) Nothing in this statute shall limit or restrict the ability of a local school district to acquire supplies and equipment outside of the bidding procedure if those supplies and equipment meet the specifications of the contracts awarded by the Office of Material and Procurement Services in the Office of the Controller within the Finance and Administration Cabinet or a federal, local, or cooperative agency and are available for purchase elsewhere at a lower price. A board of education may purchase those supplies and equipment without advertising for bids if, prior to making the purchases, the board of education obtains certification from the district's finance or purchasing officer that the items to be purchased meet the standards and specifications fixed by state price contract, federal (GSA) price contract, or the bid of another school district whose bid specifications allow other districts to utilize their bids, and that the sales price is lower than that established by the various price contract agreements or available through the bid of another school district whose bid specifications would allow the district to utilize their bid.
(b) The procedures set forth in paragraph (a) of this subsection shall not be available to the district for any specific item once the bidding procedure has been initiated by an invitation to bid and a publication of specifications for that specific item has been published. In the event that all bids are rejected, the district may again avail itself of the provisions of paragraph (a) of this subsection.
(4) This requirement shall not apply in an emergency if the chief executive officer of the city, county, or district has duly certified that an emergency exists, and has filed a copy of the certificate with the chief financial officer of the city, county, or district, or if the sheriff or the county clerk has certified that an emergency exists, and has filed a copy of the certificate with the clerk of the court where his necessary office expenses are fixed pursuant to KRS 64.345 or 64.530, or if the superintendent of the board of education has duly certified that an emergency exists, and has filed a copy of the certificate with the chief state school officer.
(5) The provisions of subsection (1) of this section shall not apply for the purchase of wholesale electric power for resale to the ultimate customers of a municipal utility organized under KRS 96.550 to 96.900.
HISTORY: 2005 c 85, § 696, eff. 6-20-05; 2000 c 510, § 3, c 5, § 11, c 225, § 3, eff. 7-14-00; 1996 c 89, § 5, eff. 7-15-96; 1992 c 178, § 1, eff. 7-14-92; 1990 c 95, § 1; 1982 c 282, § 4; 1978 c 197, § 12; 1974 c 97, § 1; 1972 c 147, § 1; 1960 c 168, § 1; 1958 c 42, § 16
NOTES OF DECISIONS
In general 1
Cities 7
Counties 8
Insurance contracts 5
Multiple items 10
Procedural issues 2
Professional services 9
Public authorities 11
School districts 6
Statutory amount 3
Utilities 4
1. In general
Statute does not require acceptance of lowest and best bid but requires only that the action of the fiscal court not be arbitrary nor tainted with fraud or collusion and is not an abuse of discretion. Handy v. Warren County Fiscal Court (Ky.App. 1978) 570 S.W.2d 663.
The provisions of KRS 162.070 that are in conflict with KRS 424.260 are repealed and superseded. Board of Ed. of Floyd County v. Hall (Ky. 1962) 353 S.W.2d 194.
2. Procedural issues
Allegations in plaintiff's complaint that city board of trustees did not publish financial statements for city pursuant to statute, that they had not adopted and published budget pursuant to statute, that they had enacted ordinance providing for license fee which did not conform to requirements of statute, and that they had not advertised for bids to obtain facilities for city hall pursuant to statute, all had statutory remedies provided by legislature which conferred standing on citizens of governmental unit to bring actions to compel adherence to law by that unit. Fish v. Elliott (Ky.App. 1977) 554 S.W.2d 94. Municipal Corporations Key Number graphic 987
The mailing of invitations to bid to all persons in the county, who have indicated a desire to sell to the government, substantially complies with this statute. Taylor v. Parker (Ky. 1957) 302 S.W.2d 125.
The courts are generally reluctant to compel performance of a contract on the basis of a bid containing a latent error where it would be financially disastrous for the bidder to undertake the contract, and where, by allowing the bidder to withdraw his, the public authority would suffer no damages other than the loss of the bargain. (See also Floyd County Bd of Ed v Hooper (Ky 1961) 350 SW(2d) 629.) Board of Regents of Murray State Normal School v. Cole (Ky. 1925) 209 Ky. 761, 273 S.W. 508.
A contractor and a surety do not have a legal interest or standing to challenge a city's failure to comply with the statute requiring advertisement in the letting of a bid to another contractor. McGovney & McKee, Inc. v. City of Berea, Ky. (E.D.Ky. 1978) 448 F.Supp. 1049, affirmed 627 F.2d 1091.
A bid advertisement under KRS 424.260 must reasonably state the expected quantity of items purchased, either by stating the quantity to be purchased, the period of time over which a continuing procurement will be made, or some other reasonable basis. OAG 94-20.
3. Statutory amount
Whether a board of education must resort to competitive bidding when there is a change order in a school construction or repair contract depends more on the nature of the change than the amount of money involved. The one thousand dollar figure set out in KRS 424.260 is not determinative. OAG 62-845.
KRS 162.070 is impliedly repealed by the provisions of KRS 424.260. This means that the minimum amount required to be advertised for competitive bidding would be $500. It also follows that the maximum provision relating to independent school districts of cities of the first class, and in county school districts of counties containing a city of the first class, of $2,000 and $1,000 respectively, as specified in KRS 162.070 would be effective. 1958 OAG 41930.
4. Utilities
No law prohibits a metropolitan sewer district from adopting a "buy American" clause in its procurement policy. OAG 81-34.
The provisions of KRS 424.260 would be applicable to expenditures for materials, supplies and equipment to be used in connection with a municipally owned water works system and electric power plant. 1958 OAG 41897.
5. Insurance contracts
A city cannot restrict bidding on an insurance contract to an agency licensed in the city. However, if the city operates under KRS Ch 424, insurance contracts are exempt from bidding. OAG 82-337.
A group of self-insurers under the workmen's compensation law, composed of cities and counties, are not required to let bids for insurance. OAG 80-343.
The bidding statute, KRS 424.260, does not apply to county procured insurance coverage, regardless of the amount. OAG 78-12.
A water district is not required to use the bidding statute in selling its surplus land. OAG 77-399.
City is not required to execute insurance contracts on a low bid basis under present statutes. OAG 62-1082.
6. School districts
Where bidders for construction of elementary school were instructed that estimated number of working days would be given weight in selection of successful bidder, and first bidder submitted bid of $249,751 with time estimate of 180 days, and second bidder submitted face bid of $249,745 with estimated completion time of 220 days, it was proper to accept bid of first bidder. Fosson v. Fiscal Court of Boyd County (Ky. 1963) 369 S.W.2d 108. Schools Key Number graphic 80(2)
KRS 424.260 prevails over KRS 162.070 with respect to the $7500 small purchases ceiling for site work at a school to correct a drainage problem. OAG 82-407.
A school district has a choice with respect to procurement as to whether to operate under the local Model Procurement Code or under KRS 424.260. If the school district operates under KRS 424.260, insurance need not be bid. OAG 82-170.
A district school board is not required to advertise for bids for the satisfaction of its insurance requirements. OAG 67-66.
It is not necessary for local boards of education to advertise for bids in connection with purchases from the federal government. 1958 OAG 41930.
Board of education is not required to have bids submitted in order to purchase insurance on its school properties. 1955 OAG 37578.
Purchase of school graduation pictures, rings, etc. must be made under state board of education regulations, unless school facilities are not utilized in any way. OAG 66-228.
A board of education must advertise for bids where any purchase is over $1,000. OAG 60-1217.
A school district must act in good faith in the purchasing of supplies and materials and not attempt to evade compliance with bidding statute. OAG 62- 901.
7. Cities
City of fifth class not required to advertise for bids before money can be deposited by the city in a bank or insurance purchased by the city. McCloud v. City of Cadiz (Ky.App. 1977) 548 S.W.2d 158.
KRS 424.260 does not apply to purchases provided for in KRS 103.200 to 103.285. Massey v. City of Franklin (Ky. 1964) 384 S.W.2d 505.
A city that purchases items for a sewer line project from several vendors in which none of the purchases involve an amount in excess of the statutory maximum, may do so without competitive bidding. Since such purchases are valid, the department of local government may not reclaim a grant made to the city for the purpose of funding the project. OAG 84-274.
City may, in its legislative discretion, require submission of alternate bids and may accept an alternate bid for construction work. OAG 77-265.
Cities may join in a joint purchasing combine either through KRS Ch 79 or through the Interlocal Cooperation Act. In joint purchases the individual cities are relieved from applying the bidding statute, KRS 424.260. In a joint purchasing situation, in advertising for bids the individual city members should be identified. OAG 77-498.
City desiring to sell used street equipment to another city may use sanctions or other competitive bidding. However, competitive bidding is not required when impractical. OAG 82-530.
As of January, 1980 the formal advertised bidding procedure applies to cities where the purchase exceeds two thousand five hundred dollars. (See also OAG 79-447.) OAG 79-429.
City is required to readvertise where initial advertising results in no firm bids, and only after it is clearly evident that none can be obtained can the city enter private negotiations to let contracts. OAG 67-119.
8. Counties
A county road construction contract should not be divided into several contracts so as to cover various road segments where total bids can be obtained. OAG 83-316.
A fiscal court resolution authorizing purchase of material from "the cheapest places" in the county is in conflict with KRS 45A.365 and 424.260. OAG 83-258.
Where a fiscal court uses county labor only on county building construction projects, no advertised bids for labor are necessary, and the prevailing wage law does not apply. OAG 79-427.
County authorized to sell property no longer needed for public purpose at public auction rather than by sealed bids. OAG 77-395.
County may purchase safe for sheriff's office under emergency provision without advertising for bids if county judge certifies that an emergency exists and files a copy of same with county treasurer. 1960 OAG 822.
Where a fiscal court received area development funds for an ambulance facility and did not advertise for bids for the construction of the facility, only the courts can determine whether the bidding statute, KRS 424.260, was violated. KRS 42.355(4), in mentioning the bidding law of KRS Ch 424, specifically adopts KRS 424.260 to the extent that such latter statute requires formal bidding. OAG 84-57.
Where a fiscal court adopts certain sections of the Kentucky model procurement code, under KRS 45A.343, the sale of surplus county property is governed by KRS 45A.425. However, where such sections of the procurement code are not adopted, the common-law rule governs. OAG 82-8.
Fiscal courts may purchase materials and supplies under a state price contract under certain conditions. OAG 80-396.
A fiscal court can employ a professional management firm to manage the county hospital, provided ultimate control of the operation is not surrendered; such employment agreement does not come under the requirements of the bidding statute. OAG 79-377.
KRS 424.260 has no application to the purchase of ballots and the printing thereof by county court clerks. 1959 OAG 43202.
The procurement of gasoline and oil for the county road department may require advertisement for bids. OAG 82-125.
Fiscal court should readvertise annually for bids on petroleum products as a matter of the public interest. OAG 78-121.
County government and its subagencies are required to advertise when purchasing the equipment and furnishings for public buildings even though the moneys being used for the purchase are in the form of grants from the federal government. OAG 65-746.
A county library, purchasing furniture and equipment for the library, must advertise for bids if the expenditure exceeds $1,000 and is not made up of clearly severable purchases of less than $1,000, unless the county judge certifies an emergency. OAG 64-510.
A county hospital commission must purchase items costing more than $1,000 through competitive bidding procedures. OAG 63-1098.
On behalf of the county hospital, the fiscal court may participate in a self-insurance group in connection with the hospital workmen's compensation program, notwithstanding the bidding statute, KRS 424.260. OAG 81-117.
Fiscal court cannot escape requirement for bidding by splitting contracts into units smaller than $1,000 statutory minimum where needs can be reasonably anticipated. OAG 62-980.
9. Professional services
The services of an administrator of an insurance program are probably professional services that need not be competitively bid under KRS 424.260. OAG 94-1.
A construction inspector with no decision making responsibility does not provide professional services pursuant to KRS 424.260; thus, a contract to employ such a construction inspector is not exempt from competitive bidding requirements. OAG 92-144.
Fiscal courts are not required to advertise for bids from certified public accountants to audit the records of the county officers, since CPAs are "professional" men. 1960 OAG 987.
10. Multiple items
Where the items purchased fell within severable categories, neither of which involved an amount requiring advertising for a bid, advertising for competitive bidding was not required. Board of Ed. of Floyd County v. Hall (Ky. 1962) 353 S.W.2d 194.
If there are sufficiently definite specifications describing the scope of construction so that meaningfully competitive bids can be submitted for substantially the same facility by different bidders for a sum certain which includes design costs, and bids are invited for the design and construction of such project in accordance with competitive bidding requirements, procurement of both the design and construction in combination may lawfully be obtained as a single procurement. OAG 92-143.
11. Public authorities
A riverport authority created under KRS 65.520 is a special district and is subject to bidding procedures under KRS 424.260 or the model procurement code, if adopted. OAG 84-196.
Where a riverport authority has not adopted the model procurement code, it automatically comes under the bidding statute, KRS 424.260. The adoption of the model procurement code by a riverport authority is permissive only. OAG 84-297.
424.270 Local administrative regulations
No general regulation of uniform application throughout the publication area promulgated by any officer, board or commission of a city, county, or district, which is intended to impose liabilities or restrictions upon the public shall be valid unless and until it, or a notice of such promulgation, together with a statement where the original regulation may be examined by the public, has been advertised by newspaper publication.
HISTORY: 1960 c 168, § 1, eff. 6-16-60; 1958 c 42, § 17
NOTES OF DECISIONS
Municipal ordinances 2
Publication 1
1. Publication
Where the original ordinance calling for public improvements was published, thereby making the public aware of the intended public project, the ordinance or regulation accepting the successful low bid for the project is exempt from the publication requirement of KRS 424.270. 1958 OAG 42536.
In view of the terms under which school bonds are issued, there is no liability or restriction imposed upon the public and the provisions of KRS 424.270 would not be applicable, and the ordinance authorizing the issuance of the bonds would not have to be published in order to be valid. 1958 OAG 42080.
All ordinances and resolutions of the city must be advertised by newspaper publication, and the entire ordinance is required to be published. 1958 OAG 41936.
2. Municipal ordinances
This statute does not apply to municipal ordinances. Miller v. City of Louisville (Ky. 1959) 321 S.W.2d 237.
KRS 424.270, construed by the Court of Appeals in Miller v Louisville as not applying to municipal ordinances, does not affect the requirement that municipal ordinances be published under KRS 86.090. KRS 424.190 does affect this statute to the extent of striking therefrom the right of the city to publish an ordinance by handbills. 1959 OAG 43001.
424.280 Due date of ad valorem taxes
Every officer whose duty it is to collect any ad valorem tax for the state or for any political subdivision of the state shall cause notice of the due date of the tax to be advertised by newspaper publication, and shall not be given a quietus for the taxes collected unless he submits proof of such publication.
HISTORY: 1958 c 42, § 18, eff. 6-19-58
424.290 Election ballot
(1) Not less than three (3) days before any primary or regular election the county clerk shall cause to be published in a newspaper a copy of the face of the voting machines, or where an electronic or electromechanical voting system is used, a copy of the ballot cards or supplementary material on which appear the names of candidates or issues to be voted upon. Where the lists of candidates or issues to be voted upon differ for various precincts within the county, the county clerk shall cause to be published only one (1) set of data with appropriate notations showing the differences in the various precincts. If supplemental paper ballots have been approved as provided in KRS 118.215, the paper ballot shall be published at the same time as other material required to be published by this subsection. The cost of publication shall be paid by the county, except that the cost of publishing any voting data required to be published by this subsection that is limited to a city election or a district election other than a school district election shall be paid by the city or the district as the case may be.
(2) "Copy," as used in subsection (1) of this section, means a summary of candidates and issues to be voted upon showing all the pertinent information that will appear, upon which the voters will cast their votes at a particular polling place.
HISTORY: 1982 c 360, § 84, eff. 7-15-82; 1978 c 384, § 527; 1976 ex s, c 1, § 15; 1972 c 188, § 67; 1962 c 213; 1960 c 168, § 1; 1958 c 42, § 19
NOTES OF DECISIONS
In general 1
Publication method 2
1. In general
A newspaper owning two publications can qualify for printing ballot's facsimile only on the basis of the circulation of one paper. However, where the contract was awarded in error and the ballot advertisement published, the fiscal court is liable for the cost. OAG 62-231.
Facsimile of voting machine ballot not required to be published in local option election, which is a special election. OAG 60-255.
2. Publication method
"Facsimile" of a ballot face is no longer required to be published; the publication act now requires only a summary of the ballot showing all pertinent information, and the type may be reduced so long as it is legible. OAG 67-203.
Face of voting machine is to be published but not the face of the absent ballot. OAG 66-295.
The face of the ballot can be reduced to a reasonable size for insertion on a single page of the newspaper. OAG 59-43274.
424.300 Public Service Commission hearings
Notices of hearings by the Public Service Commission upon applications by public utilities for rate increases or reduction or discontinuance of service, except where advertised by mail, shall be advertised by the applicant utility in accordance with such reasonable regulations as the commission may prescribe by newspaper publication in the areas that will be affected.
HISTORY: 1982 c 242, § 6, eff. 7-15-82; 1958 c 42, § 20
424.330 Publication of lists of delinquent taxes by counties and cities; fee allowance
(1) When the sheriff of any county files with the fiscal court a list of uncollectible delinquent taxes, in accordance with KRS 134.360, the fiscal court shall promptly cause a list, showing the name of and amount due from each delinquent taxpayer, to be advertised by newspaper publication. A fee of five dollars ($5) per name per publication shall be added to the amount of each tax claim published as publication costs.
(2) Cities may publish a list of uncollected delinquent taxes levied under Section 181 of the Kentucky Constitution, showing the name of and the amount due from each delinquent taxpayer, to be advertised by newspaper publication. A fee of five dollars ($5) per name per publication may be added to the amount of each tax claim published as publication costs.
HISTORY: 2006 c 8, § 7, eff. 7-12-06; 1994 c 73, § 2, eff. 7-15-94; 1992 c 73, § 1, eff. 7-14-92; 1988 c 32, § 3; 1958 c 42, § 23
NOTES OF DECISIONS
In general 1
1. In general
The county clerk is responsible for the publication of the delinquent tax list and is required, on behalf of the fiscal court, to select the newspaper. 1959 OAG 42993.
An urban county government may not withhold a list of delinquent taxpayers where the public's interest in monitoring who has failed to meet these legal obligations outweighs the privacy interests of the delinquent taxpayers. OAG 97-ORD-009 (1-22-97).
424.340 Publication of notice of fiduciary appointments and date for presentation of creditors' claims
The clerk of the probate court shall, at least once each month, cause to be published in the newspaper meeting the requirements of KRS 424.120, a notice setting forth all fiduciary appointments made since the last publication and including at least the following information: the name and address of the decedent or ward, the name and address of the fiduciary, the date of the fiduciary's appointment, and the name and address of the attorney representing the fiduciary, if any, and the date by which claims of creditors must be presented. The clerk may charge each fiduciary a fee not to exceed the actual proportionate cost of said notice. Publication of this notice shall neither enlarge nor reduce the obligation of a creditor to present a timely claim, nor the liability of the fiduciary or distributee to pay the same.
HISTORY: 1988 c 90, § 28, eff. 7-15-88; 1980 c 259, § 29, c 188, § 292; 1970 c 257, § 5; 1960 c 168, § 1; 1958 c 42, § 24
NOTES OF DECISIONS
In general 1
Hearing 2
1. In general
A county clerk, under KRS 424.340, in advertising appointments of personal representatives of estates, should state that claims should be filed within six months of the qualification of the personal representative. OAG 76-215.
It is not essential that copy of a newspaper publication be presented to the clerk before administration to an estate can be granted or initiated. OAG 58- 41765.
2. Hearing
Where a hearing is to be held on application for appointment as fiduciary, notice must be given by registered mail to interested parties under KRS 395.016, and in addition notice of the application must be published in the newspaper containing the information required under KRS 424.350. OAG 58- 42303.
424.360 Invitation to bid on municipal bonds
No sale of general obligation bonds or revenue bonds, except bonds issued for the purpose of facilitating the construction, renovation, or purchase of new or existing housing as set forth in KRS 58.125, of any governmental unit or political subdivision, or agency thereof, shall be made except upon newspaper advertisements for bids, published for the publication area constituted by the political subdivision or government unit and published to afford statewide notice. If the bonds are in principal amount of ten million dollars ($10,000,000) or more, an advertisement for bids shall also be published in a publication having general circulation among bond buyers.
HISTORY: 1992 c 210, § 1, eff. 7-14-92; 1986 c 259, § 2; 1984 c 157, § 1; 1960 c 168, § 1; 1958 c 42, § 26
424.370 Judicial sale of real property
Upon request made to the master commissioner by any person who will have a substantial interest in the proceeds of a judicial sale of real estate, the master commissioner shall cause the required advertisement of sale to be published in display form.
HISTORY: 1958 c 42, § 27, eff. 6-19-58
Penalty: 424.990
Newspaper advertisement required in execution and judicial sales, 426.560
424.380 Failure to comply with publication requirements
Any resolution, regulation, ordinance or other formal action of any public agency which is required to be published, that is adopted without compliance with the publication requirements of this chapter, shall be voidable by a court of competent jurisdiction. The Circuit Courts of this state shall have the jurisdiction to enforce the purposes of this chapter, by injunction or other appropriate order, upon application by any citizen of this state. The cost of all proceedings, including a reasonable fee for the attorney of the citizen bringing the action, shall be assessed against the unsuccessful party.
HISTORY: 1982 c 430, § 8, eff. 7-15-82
NOTES OF DECISIONS
In general 1
1. In general
Ordinances that were not legally enacted or published in accordance with KRS Ch 424 are unenforceable. OAG 83-372.
424.990 Penalties
Any person who violates any provision of KRS 424.110 to 424.370 shall be fined not less than fifty dollars ($50) nor more than five hundred dollars ($500). In addition, any officer who fails to comply with any of the provisions of KRS 424.220, 424.230, 424.240, 424.250, 424.290 or 424.330 shall, for each such failure, be subject to a forfeiture of not less than fifty dollars ($50) nor more than five hundred dollars ($500), in the discretion of the court, which may be recovered only once, in a civil action brought by any citizen of the city, county or district for which the officer serves. The costs of all proceedings, including a reasonable fee for the attorney of the citizen bringing the action, shall be assessed against the unsuccessful party.
HISTORY: 1960 c 168, § 1, eff. 6-16-60; 1958 c 42, § 28
NOTES OF DECISIONS
Residence 1
1. Residence
A person prosecuting an action against a city arising out of a violation of this section of the statutes must allege residence or citizenship in the city. Fish v. Elliott (Ky.App. 1977) 554 S.W.2d 94.
Other Kentucky Laws Pertaining to KRS 424
CHAPTER 40. VETERANS
40.200 Commission's power to fix details of bonds
All bonds issued hereunder shall be dated July 1, 1960, and shall mature on or prior to thirty (30) years from such date as the State Property and Buildings Commission may provide in each resolution authorizing the issuance and sale of such bonds. The State Property and Buildings Commission shall in each such resolution determine other details, including whether the bonds shall be of term or serial maturities, and the amount which shall mature on any serial maturity date; denominations; whether the bonds, or any of them, shall be subject to redemption prior to stated maturities and upon what terms; place or places of payment of principal and interest, which may be within the Commonwealth or outside thereof; whether the bonds shall have semiannual interest coupons annexed; be registered or registrable as to principal or interest, or both; and any other details not contrary to law or inconsistent with this chapter which in the discretion of the said commission may appear wise and expedient. The commission shall fix and establish the interest rate or rates for each issue of bonds, and interest shall be payable semiannually. Each sale shall be advertised pursuant to KRS Chapter 424 and by at least one (1) publication in a financial newspaper or journal published in the City and State of New York.
CHAPTER 42. FINANCE AND ADMINISTRATION CABINET
42.355 Examination and approval of projects; grants; administration; conditions
(1) The Department for Local Government shall examine each capital project selected by the area development districts, and when it finds that a proposed project conforms to the requirements of KRS 42.350 to 42.370; that the estimated costs of the project are reasonable; that the costs proposed to be paid from the fund are within the amount available; and that the proposed beneficiary agency will be reasonably able to finance the operation and maintain the capital project during its estimated useful life, the commissioner of the Department for Local Government shall approve it. If the Department for Local Government determines that a capital project proposal does not conform to the requirements of KRS 42.350 to 42.370, that the estimated costs of the project are excessive or unreasonable in light of the public benefit to be derived from the project, or the unencumbered balance in the fund available for expenditure in the area development district is insufficient to pay the costs of the project, or the part thereof proposed to be paid out of the fund, or the beneficiary agency cannot reasonably finance the operation of or maintain the capital project during its estimated useful life, the project proposal shall be disapproved by the Department for Local Government. The final decision to either approve or disapprove any project proposal shall be made no later than forty-five (45) days following official submittal of a complete proposal by the area development district, and the area development district shall be accordingly notified at that time.
(2) The commissioner of the Department for Local Government may make direct grants in aid of money out of the fund to any beneficiary agency for the construction or acquisition of any approved capital project. When a direct grant in aid has been made to a beneficiary agency, all contracts awarded for the purchase of materials, supplies, equipment, or services, except professional and technical services, required for the construction or acquisition of the project shall be awarded to the lowest and best bidder in the discretion of the beneficiary agency after public advertisement as required by KRS Chapter 424 or other applicable law. All contracts awarded under this section for the construction, reconstruction, or renovation of a building or other improvement to real estate shall be deemed contracts for public works within the meaning of KRS 341.317 and KRS Chapter 376 and other applicable statutes. All beneficiary agencies receiving a direct grant in aid under this subsection shall keep and maintain complete and accurate records of accounts of all expenditures of the grant moneys which shall be subject to audit by the Commonwealth for a period of five (5) years after completion of the capital project. Beneficiary agencies shall complete approved capital projects within a reasonable period of time as determined by the Department for Local Government. Upon completion of capital projects, beneficiary agencies shall submit project completion reports to the Department for Local Government as prescribed by the Department for Local Government and containing documents and information as may be necessary to determine compliance with KRS 42.350 to 42.360 and other applicable statutes and administrative regulations. Beneficiary agencies shall be liable to repay to the fund any granted funds for failure to submit full project completion reports within a reasonable period of time or for expenditure of granted funds in violation of statutes and regulations. No additional area development funds may be approved until compliance, except at the discretion of the commissioner of the department. Any grant moneys not required after all of the costs of the capital project have been paid by the beneficiary agency shall be promptly returned to the Commonwealth for reallocation for expenditure for other capital projects in the area development district to which the funds had been originally allocated.
(3) No capital project shall be constructed under KRS 42.350 to 42.370 except upon land to which (a) the Commonwealth, a political subdivision of the Commonwealth, or the beneficiary agency of the capital project has a good and marketable title, free of encumbrances, or (b) the beneficiary agency of the project has the right to the uninterrupted use, occupancy, and possession for a period longer than the estimated useful life of the capital project; provided nothing herein shall prohibit the construction or renovation of public buildings on land with an existing encumbrance to secure payment of funds obtained for the acquisition or improvement of said land. Each beneficiary agency shall execute and deliver to the Commonwealth its written assurances, which shall be binding on the agencies' successors and assigns, guaranteeing that during its estimated useful life, the capital project shall be operated and maintained for public purposes and pledging that no mortgage or other encumbrances shall be placed against any capital project wholly financed out of the fund, except industrial development projects, for the breach of which assurances the Commonwealth shall have right of entry to the capital project and the beneficiary agency, or its successors and assigns, shall forthwith convey the title to the capital project to the Commonwealth. Similar assurances shall be executed and delivered to the Commonwealth by the beneficiary agencies of capital projects financed in part out of the fund and in part from other sources, except that when additional funding is derived from the issuance and sale of revenue bonds or under other statutorily authorized financing methods, to secure the repayment of which funds a statutory mortgage lien is granted in favor of any person or group of persons, the capital project may be encumbered to the extent authorized or required by the law under which the financing method was undertaken; nor shall anything in this section prohibit the encumbrance of any real property located within an industrial park or constituting an industrial site, developed or improved as a capital project under KRS 42.350 and this section, by any person, firm, company, partnership, or corporation to which the property has been conveyed, to obtain financing for the construction upon the property of industrial and commercial buildings. The written assurances provided by beneficiary agencies under this section shall be lodged for recording and recorded in the office of the county clerk of the county in which the proposed project shall be located.
CHAPTER 43. AUDITOR OF PUBLIC ACCOUNTS
43.090 Reports of audits and investigations; implementation by agency of audit recommendation
(1) Immediately upon completion of each audit and investigation, except those provided for in KRS 43.070, the Auditor shall prepare a report of his findings and recommendations. He shall furnish one (1) copy of the report to the head of the agency to which the report pertains, one (1) copy to the Governor, one (1) copy to the secretary of the Finance and Administration Cabinet, one (1) copy to the Legislative Research Commission and one (1) copy to the state librarian. The agency to which an Auditor's draft report pertains shall respond in writing to any adverse or critical audit findings and to any recommendations contained in the draft report within fifteen (15) days of receipt of the draft report. The Auditor shall distribute the agency's response to those entitled by this subsection to a copy of the audit report. Within sixty (60) days of the completion of the final audit report, the agency to which an Auditor's report pertains shall notify the Legislative Research Commission and the Auditor of the audit recommendations it has implemented and of the audit recommendations it has not implemented. The agency shall state the reasons for its failure to implement any recommendation made in the final audit report. The Auditor shall prepare and transmit to each member of the General Assembly, by December 15 immediately preceding the convening of each regular session of the General Assembly, a printed report of his activities, summarizing the findings and recommendations in his report on each audit or investigation made since the last preceding biennial report to the General Assembly listing, by state agency, the audit recommendations that have not been implemented and the reason(s) given by state agencies for nonimplementation, and presenting such other findings and recommendations as he sees fit to make. He shall file a copy of this report with the Governor and five (5) copies with the state librarian. All audit reports shall be public documents to which taxpayers shall have access.
(2) The Auditor shall, within a reasonable time after the examination of each county as provided in KRS 43.070, make a written report to the Governor, the General Assembly, the Attorney General, the County Officials' Compensation Board, the state librarian and to the fiscal court and county attorney of the county examined, calling attention in specific terms to any mismanagement, misconduct, misapplication or illegal appropriation or extravagant use of money received or disbursed by any officer of the county examined. In addition, said report shall be sent to a newspaper having general circulation in the county examined and the letter of transmittal accompanying the report shall be published in said newspaper in accordance with the provisions of KRS Chapter 424.
CHAPTER 45. BUDGET AND FINANCIAL ADMINISTRATION
FEDERAL BLOCK GRANTS
45.352 Hearings by designated review body
(1) The Legislative Research Commission shall, within ten (10) days of receiving any block grant application from the state administering agency, provide for statewide notice, pursuant to KRS Chapter 424, of public hearings to be conducted by the designated review body for the purpose of receiving comments on the block grant application.
(2) The Commission shall, no later than sixty (60) days prior to the submission of the block grant application to the federal administering agency, provide for a public hearing on each block grant application. The hearing may be held at such time, place and location as the Commission shall determine. All hearings and deliberations of the Commission pursuant to KRS 45.351 to 45.359 shall be electronically recorded. The recordings shall constitute a public record.
CHAPTER 56. STATE LANDS AND BUILDINGS
PROPERTY AND BUILDINGS COMMISSION
56.520 Revenue bonds; investment of proceeds of authorized bonds
(1) The commission may issue and sell revenue or other authorized bonds, in carrying out the provisions of this chapter, in denominations and amounts, as is deemed to be for the best interest of the Commonwealth, for any of the following purposes:
(a) To acquire real estate for state governmental use;
(b) To pay all or any part of the expense or cost of or incidental to a building project for state governmental use;
(c) To defray the cost of plans, specifications, blueprints, architectural fees, and other expenses authorized to be incurred for state governmental use.
(2) The payment of bonds issued, together with the interest thereon, may be secured by a pledge and a first lien on all of the receipts and revenue derived, or to be derived, from the rental or operation of the property involved. Neither the payment of any bond, nor the interest thereon issued under the authority of this chapter, shall constitute an indebtedness of the Commonwealth of Kentucky, nor shall any bond or interest thereon be payable out of any fund except funds derived from rentals or other revenues derived from the operation of the properties or from revenues as are available for the purpose by law.
(3) All competitive bids for the sale of revenue bonds shall be opened and read publicly by the secretary of the Finance and Administration Cabinet or the secretary's representative at a designated place, day, and hour, all of which shall be indicated in the notice made relative thereto.
(4) If the commission issues and sells bonds for a building project as authorized by this chapter, insurance, including fire and windstorm, casualty, catastrophe, use and occupancy, and such other insurance as the commission may deem advisable, shall be carried in connection with the building project, and it may so obligate and bind itself in a trust indenture securing the payment of the bonds. Any insurance shall be paid for out of funds available for the project.
(5) The commission may invest proceeds from the sale of its revenue or other authorized bonds in financial instruments and investments as provided in KRS 42.500 for the State Investment Commission.
CHAPTER 62. OATHS AND BONDS
BONDS
62.100 Notice of proceeding
(1) The surety shall give written notice to the principal requiring him, by a day named in the notice, to appear before the court in which the motion is filed.
(2) If the principal is within the state, the notice shall be not less than ten (10) days, otherwise there shall be thirty (30) days' notice to his attorney if he has one in the county where the bond is executed, and if none, there shall be thirty (30) days' notice published pursuant to KRS Chapter 424.
(3) The notice shall apprise the party of the object of the motion, whether for a new bond with other surety to effect a discharge from future liability, or as indemnity for the past acts of the principal, or for both. If indemnity for liability incurred is one of the objects, notice in like manner shall be given to each of the other sureties in the bond who have not joined in the motion.
CHAPTER 64. FEES AND COMPENSATION OF PUBLIC OFFICERS AND EMPLOYEES
ACCOUNTS AND ACCOUNTING
64.810 Annual audit of books of fiscal court or county office by certified public accountant, if auditor declines to perform audit; procedure
(1) (a) Any fiscal court, county clerk, or sheriff may employ a certified public accountant to audit the books, accounts, and papers of the county or his office in lieu of the audit conducted by the State Auditor of Public Accounts required by KRS 43.070, if the Auditor of Public Accounts declines to perform the audit or has failed to respond to written notice of intent to employ a certified public accountant within thirty (30) days of receipt of the notice.
(b) In the case of a documented emergency requiring an immediate audit which the Auditor of Public Accounts cannot complete within the requested deadline, the Auditor of Public Accounts shall authorize the fiscal court, the county clerk, or sheriff to engage a certified public accountant to complete the emergency audit. A certified public accountant may be engaged to conduct an emergency audit only after guaranteeing in writing to the Auditor of Public Accounts that the audit and audit report will be finished within the deadline originally requested of the Auditor of Public Accounts. The fiscal court shall bear the full cost of any county audit conducted pursuant to this paragraph. The county clerk or the sheriff shall bear the full cost of any audit of his office conducted pursuant to this paragraph, from funds received or collected by him, and the cost of the audit shall be construed as an expense of his office. Audits conducted pursuant to this paragraph shall be subject to the provisions of subsections (4) and (5) of this section.
(2) A fiscal court which has elected to employ a certified public accountant pursuant to subsection (1)(a) of this section shall notify the State Auditor in writing by July 31 following the fiscal year to be audited of the name of the certified public accountant it has employed. The fiscal court shall bear the full cost of any audit conducted pursuant to this section. An elected official who has elected to employ a certified public accountant pursuant to subsection (1)(a) of this section shall:
(a) Notify the fiscal court and the State Auditor in writing by January 30 following the calendar year to be audited of the name of the certified public accountant employed by said official to audit the books, accounts, and papers of his office; and
(b) Bear the cost of the audit from funds received or collected by him, and the cost of the audit shall be construed as an expense of his office.
(3) Any contract with a certified public accountant entered into pursuant to subsection (1)(a) of this section shall specify the following:
(a) The audit of a county official shall be completed by August 1 following the calendar year being audited, and the audit of a county budget shall be completed by February 1 following the fiscal year being audited;
(b) The certified public accountant shall forward a copy of the fee officer audit report and management letters to the county official, fiscal court of the county, and the Auditor of Public Accounts upon completion of the audit, and no later than August 1 following the calendar year being audited;
(c) The certified public accountant shall forward a copy of the county budget audit report and management letters to the fiscal court of the county and the Auditor of Public Accounts upon completion of the audit and no later than February 1 following the fiscal year being audited; and
(d) The Auditor of Public Accounts shall have the right to review the certified public accountant's work papers before and after the release of the audit.
(4) After preliminary review of the certified public accountant's work papers, should discrepancies be found, the Auditor of Public Accounts shall notify the fiscal court or fee official of the discrepancies. Should the certified public accountant not correct such discrepancies prior to the release of the audit, the Auditor's office may conduct its own audit to verify the findings of the certified public accountant's report. If such audit is conducted, the expenses to said county or county official, as directed by KRS 43.070(4) shall be construed as an allowable expense of office. If the audit conducted by the Auditor of Public Accounts discloses discrepancies in the audit by the certified public accountant, the findings of the Auditor of Public Accounts shall be deemed official for purposes of collection of money owed the county pursuant to KRS 64.820.
(5) No later than February 1 following the fiscal year being audited, or August 1 following the calendar year being audited, the fiscal court or county official shall submit the accountant's written report to the Governor, the General Assembly, the Attorney General, the State Librarian, and county attorney of his county. In addition the fiscal court or the official shall send the report to the newspaper having the largest paid circulation in the county, and the letter of transmittal accompanying the report shall be published in said newspaper in accordance with the provisions of KRS Chapter 424.
(6) This section shall not be construed as eliminating the requirement that the books, accounts, and papers of the above-named officials be audited yearly.
CHAPTER 65. GENERAL PROVISIONS APPLICABLE TO COUNTIES, CITIES, AND OTHER LOCAL UNITS
MISCELLANEOUS GENERAL PROVISIONS
65.003 Codes of ethics for city, county, and consolidated local government officials and employees; interlocal agreements
(1) The governing body of each city, county, urban-county, consolidated local government, and charter county, shall adopt, by ordinance, a code of ethics which shall apply to all elected officials of the city, county, urban-county, consolidated local government, or charter county, and to appointed officials and employees of the city, county, urban-county, consolidated local government, or charter county government, or agencies created jointly, as specified in the code of ethics. The elected officials of a city, county, or consolidated local government to which a code of ethics shall apply include the mayor, county judge/executive, members of the governing body, county clerk, county attorney, sheriff, jailer, coroner, surveyor, and constable but do not include members of any school board. Agencies created jointly may include planning or administrative commissions or boards. Candidates for the local government elective offices specified in this subsection shall comply with the annual financial disclosure statement filing requirements contained in the code of ethics.
(2) Any city, county, or consolidated local government may enter into a memorandum of agreement or an interlocal agreement with one (1) or more other cities, counties, or consolidated local governments for joint adoption of a code of ethics which shall apply to all elected officials of the cities, counties, or consolidated local governments, and to appointed officials and employees as specified by each of the cities, counties, or consolidated local governments which enters into the agreement. Interlocal agreements shall be executed pursuant to the Interlocal Cooperation Act in KRS 65.210 to 65.300. The interlocal agreement or memorandum of agreement may provide for but shall not be limited to:
(a) The provision of administrative services relating to the implementation of a code of ethics;
(b) The creation of a regional ethics board which serves independently to provide advice to member governments and their officials and provides for the enforcement of locally adopted codes of ethics; and
(c) Contracting by a memorandum of agreement with an area development district for the provision of administrative services relating to the implementation of a code of ethics.
Candidates for the city, county, or consolidated local government elective offices specified in this subsection shall comply with the annual financial disclosure statement filing requirements contained in the code of ethics.
(3) Each code of ethics adopted as provided by subsection (1) or (2) of this section, or amended as provided by subsection (4) of this section, shall include but not be limited to provisions which set forth:
(a) Standards of conduct for elected and appointed officials and employees;
(b) Requirements for creation of financial disclosure statements, which shall be filed annually by all candidates for the city, county, or consolidated local government elective offices specified in subsection (1) of this section, elected officials of each city, county, or consolidated local government, and other officials or employees of the city, county, or consolidated local government, as specified in the code of ethics, and which shall be filed with the person or group responsible for enforcement of the code of ethics, provided that nonpaid members of jointly created agencies may be exempted from filing financial disclosure statements;
(c) A policy on the employment of members of the families of officials or employees of the city, county, or consolidated local government, as specified in the code of ethics;
(d) The designation of a person or group who shall be responsible for enforcement of the code of ethics, including maintenance of financial disclosure statements, all of which shall be available for public inspection, receipt of complaints alleging possible violations of the code of ethics, issuance of opinions in response to inquiries relating to the code of ethics, investigation of possible violations of the code of ethics, and imposition of penalties provided in the code of ethics.
(4) The code of ethics ordinance adopted by a city, county, or consolidated local government may be amended but shall not be repealed.
(5) (a) Within twenty-one (21) days of the adoption of the code of ethics required by this section, each city, county, or consolidated local government shall deliver a copy of the ordinance by which the code was adopted and proof of publication in accordance with KRS Chapter 424 to the Department for Local Government. The department shall maintain the ordinances as public records and shall maintain a list of city, county, or consolidated local governments which have adopted a code of ethics and a list of those which have not adopted a code of ethics.
(b) Within twenty-one (21) days of the amendment of a code of ethics required by this section, each city, county, or consolidated local government shall deliver a copy of the ordinance by which the code was amended and proof of publication in accordance with KRS Chapter 424 to the Department for Local Government, which shall maintain the amendment with the ordinance by which the code was adopted.
(c) For ordinances adopting or amending a code of ethics under this section, cities of the first class and consolidated local governments shall comply with the publication requirements of KRS 83A.060(9), notwithstanding the exception contained in that statute.
(6) If a city, county, or consolidated local government fails to comply with the requirements of this section, the Department for Local Government shall notify all state agencies, including area development districts, which deliver services or payments of money from the Commonwealth to the city, county, or consolidated local government. Those agencies shall suspend delivery of all services or payments to the city, county, or consolidated local government which fails to comply with the requirements of this section. The Department for Local Government shall immediately notify those same agencies when the city, county, or consolidated local government is in compliance with the requirements of this section, and those agencies shall reinstate the delivery of services or payments to the city, county, or consolidated local government.
65.007 Removal of appointed member of special district governing body; hearing; appeal
(1) Unless otherwise provided by state law, an appointed member of the governing body of a special district may be removed from office by the appointing authority after a hearing with notice as required by KRS Chapter 424 for inefficiency, neglect of duty, malfeasance or conflict of interest. The hearing shall be initiated and chaired by the appointing authority, who shall prepare a written statement setting forth the reasons for removal. The member to be removed shall be notified of his proposed removal and the reasons therefor by registered mail sent to his last known address at least ten (10) days prior to the hearing. The person to be removed may employ counsel to represent him. A record of the hearing shall be made by the appointing authority.
(2) Where the removal of an appointed member of a special district governing body is by the county judge/executive pursuant to subsection (1) of this section, the removal shall be subject to the approval of the fiscal court.
(3) A member removed pursuant to this section may appeal, within ten (10) days of the rendering of the decision or the approval of the fiscal court if required, to the Circuit Court of the county of the appointing authority. The scope of the appeal shall be limited to whether the appointing authority or the fiscal court abused their discretion in removing the member.
65.070 Filing with county clerk and fiscal court; publication of descriptive information on the district; submission of audit to fiscal court; Department for Local Government to furnish standard reporting forms to county clerks; enforcement
(1) Within sixty (60) days following the close of the fiscal year, the district shall:
(a) File with the county clerk of each county with territory in the district a certification showing any of the following information that has changed since the last filing by the district:
1. The name of the district;
2. A map or general description of its service area;
3. The statutory authority under which it was created; and
4. The names, addresses, and the date of expiration of the terms of office of the members of its governing body and chief executive officer;
(b) Submit for review a copy of the summary financial statement with the fiscal court of each county with territory in the district; and
(c) Publish, in lieu of the provisions of KRS 424.220, but in compliance with other applicable provisions of KRS Chapter 424, the names and addresses of the members of its governing body and chief executive officer, and either a summary financial statement, which includes the location of supporting documents, or the location of district financial records which may be examined by the public.
(2) The district shall submit for review a copy of the audit with the fiscal court of each county with territory in the district. The submission shall be made within thirty (30) days of the district's receipt of the completed audit.
(3) The Department for Local Government shall prepare and furnish to county clerks standard reporting forms which districts may use to comply with the provisions of this section.
(4) Any resident of the district may bring an action in the Circuit Court to enforce the provisions of this section. The Circuit Court shall hear the action and, on a finding that the governing body of the district has violated the provisions of this section, shall order the district to comply with its provisions. The Circuit Court, in its discretion, may allow the prevailing party, other than the district, a reasonable attorney's fee and court costs, to be paid from the district's treasury.
65.170 Dissolution by referendum
(1) A district may be dissolved by a referendum as provided in this section.
(2) Persons seeking dissolution of a district shall submit a petition to the county clerk signed by at least fifty percent (50%) of that class of citizens who may by law petition for the creation of the district.
(3) The petition shall be in substantially the following form: "The undersigned (registered voters, qualified voters, freeholders, or landowners as determined by subsection (2) of this section) living within (name of the district and containing a metes and bounds description of the district) hereby request that the question of the dissolution of the district be put to a referendum." The petition shall conspicuously state in layman's terms that any legal obligations of the district must be satisfied before the district can be dissolved and that the citizens of the district shall be responsible for the satisfaction of any such obligations. Signatures on the petition shall be dated, the last no later than ninety (90) days after the first.
(4) If the county clerk determines that the petition is in proper order, he shall certify the petition to the fiscal court or consolidated local government. The fiscal court or consolidated local government shall direct that the question be placed before the voters at the next regular election if the petition is certified not later than the second Tuesday in August preceding the day of the regular election. The fiscal court or consolidated local government shall bear the costs of advertising and placing the question before the voters.
(5) The county clerk shall advertise the question as provided in KRS Chapter 424 and shall prepare the following admonition to the voter: "The (name of district) may have existing legal obligations that must be satisfied before the district can be dissolved. The citizens of the district shall be responsible for the satisfaction of any such obligations." The question of the dissolution of the district shall be placed before the voters in substantially the following form: "The (name of the district and containing a metes and bounds description of the district) should be dissolved." The voter shall vote "yes" or "no."
(6) Registered voters eligible to sign a petition for dissolution as provided by subsection (2) of this section shall be eligible to vote on the question of dissolution.
(7) In referendums under this section, provision shall be made for those opposing the dissolution of the district to have equal representation with the proponents of the measure in the determination of eligibility of voters, and in the observance of canvassing and certifying of the returns.
65.365 Mailing list of interested housing authorities
(1) Upon the creation of a land bank authority, the authority shall maintain a mailing list of city, county, or regional housing authorities, and the Kentucky Housing Corporation, that have requested to be notified prior to any action by the authority to dispose of property in its inventory. It shall be the responsibility of an interested housing authority to provide the authority with the following information:
(a) Name of the organization;
(b) Mailing address for the organization; and
(c) The name and title of a contact person for the organization.
CHAPTER 65. GENERAL PROVISIONS APPLICABLE TO COUNTIES, CITIES, AND OTHER LOCAL UNITS
RIVERPORT AUTHORITY
65.530 Purpose, duties, and powers of riverport authority
(1) The purposes of the authority shall be to establish, maintain, operate, and expand necessary and proper riverport and river navigation facilities, and to acquire and develop property, or rights therein within the economic environs, the home county, or any county adjacent thereto, of the riverport or proposed riverport to attract directly or indirectly river-oriented industry. It shall have the duty and such powers as may be necessary or desirable to promote and develop navigation, river transportation, riverports, and riverport facilities, and to attract industrial or commercial operations to the property held as industrial parks.
(2) The authority shall establish and fix reasonable rates, charges, and fees for the use of the riverport facilities which shall be published in a newspaper of general circulation in the county in which the riverport is located. In fixing rates, charges, or fees the authority may take into consideration, among other factors, the total capital investment of the authority, the revenue needed properly to maintain such facilities, the revenue needed properly to expand the riverport and its facilities, the portion of the facilities utilized by the licensee or contracting party and its customers, and the volume and type of business conducted. Any party aggrieved by the rates, charges, or fees may appeal from the action of the authority to the Circuit Court of the county within which the authority operates, within ninety (90) days from the date that the authority finally publishes the rates, charges, or fees and gives notice of same to the contracting party or licensee. The Circuit Court may hear evidence and determine whether or not the rates, charges, or fees are, or are not, reasonable in amount. Appeal from the judgment of the Circuit Court may be prosecuted as any other civil appeal.
(3) The authority shall also have power, from time to time, to fix rates, charges, or fees by contract, or by publishing general rates, charges, or fees for commercial vendors, concessionaires, or other persons for the use or occupancy of riverport facilities under the terms and conditions it deems to be in the best interest of maintaining, operating, or expanding necessary riverport facilities, and the public use thereof.
(4) The authority may acquire by contract, lease, purchase, option, gift, condemnation, or otherwise any real or personal property, or rights therein, necessary or suitable for establishing, developing, operating, or expanding riverports, riverport facilities, water navigation facilities, including spoilage areas for the disposal of materials dredged from river bottoms in an effort to improve the navigability of rivers, reserve storage areas and reserves of bulk materials utilized by the