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-CHAPTER 91
-Legislative Research Commission PDF Version
+HOUSE OF REPRESENTATIVES
 
-1
-CHAPTER 91
-( SB 192 )
-AN ACT relating to local entities and declaring an emergency.
-Be it enacted by the General Assembly of the Commonwealth of Kentucky:
-Section 1.   KRS 91A.020 is amended to read as follows:
-(1) Each city shall keep its accounting records and render financial reports in such a way as to:
-(a) Determine compliance with statutory provisions;[ and]
-(b) Determine fairly and with full disclosure the financial operations o f constituent funds and account
-groups of the city; and
-(c) Conform[ in conformity]  with generally accepted governmental accounting principles , except cities
-receiving and expending, from all sources and for all purposes, less than fifteen million dollars
-($15,000,000) may choose to conform with the cash or the modified cash basis of accounting .
-(2) Municipal accounting systems shall be organized and operated on a fund basis.
-Section 2.   KRS 91A.040 is amended to read as follows:
-(1) Except as provided in subsections (2) and (3) of this section and Section 4 of this Act, each city shall, after the
-close of each fiscal year, cause each fund of the city to be audited by the Auditor of Public Accounts or a
-certified public accountant. The audit shall be compl eted by March 1 immediately following the fiscal year
-being audited. The city shall forward an electronic copy of the audit report to the Department for Local
-Government for information purposes by no later than April 1 immediately following the fiscal yea r being
-audited.
-(2) In lieu of the annual audit requirements in subsection (1) of this section, a city with a population equal to or
-less than three thousand (3,000) based upon the most recent federal decennial census may elect to have an
-audit performed every other fiscal year in the following manner:
-(a) For a city that is not performing an agreed -upon engagement procedure under Section 4 of this Act,
-after the close of each odd -numbered fiscal year, the city shall for that odd -numbered year cause each
-fund of the city to be audited by the Auditor of Public Accounts or a certified public accountant. The
-audits shall be completed by March 1 immediately following the fiscal year to be audited. The city shall
-forward an electronic copy of the audit report to  the Department for Local Government for information
-purposes by no later than April 1 immediately following the fiscal year being audited; and
-(b) After the close of each even -numbered fiscal year, the city shall not be required to complete an annual
-audit but shall forward an electronic copy of its financial statement prepared in accordance with KRS
-424.220 to the Department for Local Government by no later than October 1 immediately following the
-close of the even-numbered fiscal year.
-(3) Any city, whic h for any fiscal year receives and expends, from all sources and for all purposes, less than five
-hundred thousand dollars ($500,000), and which has no long -term debt, whether general obligation or revenue
-debt, shall not be required to audit each fund of the city for that particular fiscal year. In addition, each city
-exempted in accordance with this subsection shall:
-(a) Annually prepare a financial statement in accordance with KRS 424.220 and shall, not later than
-October 1 following the conclusion of the fiscal year, forward one (1) electronic copy to the Department
-for Local Government for information purposes; and
-(b) If exempted under this subsection for more than four (4) consecutive fiscal years after July 1, 2022,
-have performed an agreed -upon proc edures[prepared an attestation]  engagement covering the
-fifth[fourth] fiscal year in which the city qualified for an exemption under this subsection. An agreed-
-upon procedures [attestation] engagement required under this paragraph shall be completed in
-accordance with subsections (3) to (9) of Section 4 of this Act and any other requirements established
-by the Auditor of Public Accounts through the promulgation of administrative regulations in
-accordance with KRS Chapter 13A[completed pursuant to this subsection shall be:
-ACTS OF THE GENERAL ASSEMBLY 2
-1. Prepared by an independent certified public accountant or by the Auditor of Public Accounts
-pursuant to a contract with the city using generally accepted attestation standards as promulgated
-by the American Institute of Certified Public A ccountants and any additional procedures
-established by the Department for Local Government through administrative regulation;
-2. Completed by no later than March 1 immediately following the conclusion of the fiscal year in
-which in the attestation engagement is required;
-3. Submitted to the Department for Local Government as one (1) electronic copy no later than April
-1 after its completion;
-4. Advertised to the public within thirty (30) days of its completion by causing the publication of a
-legal display advertisement of not less than six (6) column inches in a newspaper qualified under
-KRS 424.120 stating that the attestation has been prepared and 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 receive copies of financial
-statements under KRS  424.220. Any city advertising under this subparagraph shall be exempt
-from publishing its financial statement under KRS 424.220(6)(b) for any year in which it is
-required to have an attestation engagement completed; and
-5. Provided to the Auditor of Publi c Accounts upon request for review of the final report and all
-related work papers and documents regarding the attestation engagement] .
-(4) If a city is required by another provision of law to audit its funds more frequently or more stringently than is
-required by this section, the city shall also comply with the provisions of that law.
-(5) The Department for Local Government shall, upon request, make available electronic copies of the audit
-reports and financial statements received by it under subsections  (1) to (3) of this section to the Legislative
-Research Commission to be used for the purposes of KRS 6.955 to 6.975 or to the Auditor of Public Accounts.
-(6) Each city required [by this section ]to conduct an [annual or biennial ]audit under subsection (1) or (2) of this
-section shall enter into a written contract with an auditor, who shall be a certified public accountant or the
-Auditor of Public Accounts. The contract shall set forth all terms and conditions of the agreement which shall
-include but not be limited to requirements that:
-(a) The auditor be employed to examine the basic financial statements, which shall include the financial
-statements prepared in accordance with the basis of accounting used by the city [ government -wide
-and fund financial statements];
-(b) The auditor shall include in the [annual or biennial ] city audit report an examination of local
-government economic assistance funds granted to the city under KRS 42.450 to 42.495. The auditor
-shall include a certification with the [annual or biennial ]audit report that the funds were expended for
-the purpose intended;
-(c) All audit information be prepared in accordance with generally accepted governmental auditing
-standards which include tests of the accounting records and auditing procedures  considered necessary in
-the circumstances. Where the audit is to cover the use of state or federal funds, appropriate state or
-federal guidelines shall be utilized;
-(d) The auditor shall prepare a[ typewritten or] printed report embodying:
-1. The basic financial statements and accompanying supplemental and required supplemental
-information;
-2. The auditor's opinion on the basic financial statements or reasons why an opinion cannot be
-expressed; and
-3. Findings required to be reported as a result of the audit;
-(e) The completed audit and all accompanying documentation shall be presented to the city legislative body
-at a regular or special meeting; and
-(f) Any contract with a certified public accountant for an audit shall provide that [require the accountant to
-forward a copy of the audit report and management letters to the Auditor of Public Accounts upon
-request of the city or the Auditor of Public Accounts, and]  the Auditor of Public Accounts shall have
-the right to review the certified public accountant's work papers upon request.
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-(7) A copy of an audit report which meets the requirements of this section shall be considered satisfactory and
-final in meeting any official request to a city for financial data, except for statutory or judicial requireme nts, or
-requirements of the Legislative Research Commission necessary to carry out the purposes of KRS 6.955 to
-6.975.
-(8) Each city shall, within thirty (30) days after the presentation of an audit to the city legislative body, publish an
-advertisement in accordance with KRS Chapter 424 containing:
-(a) The auditor's opinion letter;
-(b) A budget-to-actual comparison schedule for the general fund[The "Budgetary Comparison Schedules-
-Major Funds," which shall include the general fund and all major funds] ;
-(c) A statement that a copy of the complete audit report, including financial statements and supplemental
-information, is on file at city hall and is available for public inspection during normal business hours;
-(d) A statement that any citizen may obtain from  city hall a copy of the complete audit report, including
-financial statements and supplemental information, for his or her personal use;  and
-(e) A statement which notifies citizens requesting a personal copy of the city audit report that they will be
-charged for duplication costs at a rate that shall not exceed twenty-five cents ($0.25) per page[; and
-(f) A statement that copies of the financial statement prepared in accordance with KRS 424.220, when a
-financial statement is required by KRS 424.220, are av ailable to the public at no cost at the business
-address of the officer responsible for preparation of the statement].
-(9) Any resident of the city or owner of real property within the city may bring an action in the Circuit Court to
-enforce the provisions of this section. Any person who violates any provision of this section 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 this section shal l, for each 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 resident of the city or owner of real property within the
-city. The costs of all proceedings, including a reasonable fee for the attorney of the resident or property owner
-bringing the action, shall be assessed against the unsuccessful party.
-(10) In the event of extenuating circumstan ces that prevent a city from completing and submitting a required audit
-or financial statement in compliance with the applicable deadlines in subsections (1) to (3) of this section, the
-city may submit a written request for an extension of time to the Depa rtment for Local Government on a form
-prescribed by the Department for Local Government. The Department for Local Government shall approve the
-request if, in the judgment of the Department for Local Government, the request is warranted by extenuating
-circumstances beyond the control of the city or other factors that justify the city's noncompliance with the
-required deadlines. The Department for Local Government may consider any evidence it deems appropriate,
-including but not limited to proof of the city's  progress towards compliance. Extensions granted under this
-subsection shall not exceed eighteen (18) months from the original due date of the audit or financial statement.
-If the Department for Local Government approves an extension for a city and the cit y fails to complete and
-submit the required audit or financial statement in compliance with that extended deadline, then the provisions
-of subsection (11) of this section shall apply.
-(11) If a city fails to complete an audit or financial statement and sub mit it to the Department for Local
-Government as required in subsections (1) to (3) and (10) of this section, the Department for Local
-Government shall notify the Finance and Administration Cabinet that the city has failed to comply with the
-audit requirem ents of this section [,] and that any funds in the possession of any agency, entity, or branch of
-state government shall be withheld from the city until further notice. The Department for Local Government
-shall immediately notify the Finance and Administration Cabinet when the city complies with the requirements
-of subsections (1) to (3) and (10) of this section for all prior fiscal years it has failed to comply with the audit
-requirements of this section, and the Finance and Administration Cabinet shall dir ect the reinstatement of
-payments to the city, including any funds that were withheld due to the noncompliance. This subsection shall
-not be interpreted or construed to permit the state to withhold any nondiscretionary payments to a city that are
-due the city for the provision of services by the city to the state or any of its agencies, including for the use of
-city utilities.
-(12) Within a reasonable time after the completion of a special audit or examination conducted pursuant to KRS
-43.050, the Auditor shall bill the city for the actual expense of the audit or examination conducted. The actual
-ACTS OF THE GENERAL ASSEMBLY 4
-expense shall include the hours of wo rk performed on the audit or examination as well as reasonable
-associated costs, including but not limited to travel costs. The bill submitted to the city shall include a
-statement of the hourly rate, total hours, and total costs for the entire audit or ex amination.
-(13) A city shall provide a copy of any audit report completed pursuant to this section to the Auditor of Public
-Accounts upon request.
-Section 3.   KRS 424.220 is amended to read as follows:
-(1) Excepting officers who are exempted under subsec tion (8) of this section, every public officer of any city,
-county, or district less than a county, or of any board, commission, or other authority of a city, county, or
-district whose duty it is to collect, receive, have the custody, control, or disbursem ent of any funds collected
-from the public in any form shall, at the expiration of each fiscal year, prepare an itemized, sworn statement of
-the funds collected, received, held, or disbursed by him or her during the fiscal year just closed, unless he or
-she has complied with KRS 424.230.
-(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 pa yee. 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 al l 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 financial reporting and publishing requirements for a school district are provided in KRS 160.463.
-(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 depos ited during the past
-year, showing the balance, if any, of funds to the credit of the officer making the statement.
-(6) To provide notice to the public that the city's financial statement has been completed as required by this
-section, [:
-(a) The appropriate officer of a city that has performed an audit under KRS 91A.040 for the fiscal year or years,
-including the appropriate officer of any municipally owned electric, gas, or water system, shall publish the
-audit report in accordance with KRS 91A.040(8); and
-(b) ]the appropriate officer of a city that has not conducted an annual audit for the fiscal year under one (1) of the
-exceptions provided in KRS 91A.040(2) or (3) shall publish a legal display advertisement of not less than six
-(6) column inches in a ne wspaper 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 st ation which has on file with the city a
-written request to be provided a statement. The advertisement shall be published within thirty (30)[ninety (90)]
-days after the submission of the financial statement to the Department for Local Government under
-subsection (2)(b) or (3)(a) of Section 2 of this Act[close of the fiscal year].
-(7) To provide notice to the public that the county's financial statement has been completed as required by this
-section, the appropriate officer of a county shall publish the count y'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(8).
-(8) The provisions of this section shall not apply to officers of:
-(a) A city of the first class;
-(b) A county containing a city of the first class;
-(c) A consolidated local government;
-(d) An urban-county government;
-(e) A city with a population equal to or greater than twenty thousand (20,000) based upon the most recent
-federal decennial census;
-(f) A city that has completed an audit pursuant to the provisions of subsection (1) or (2)(a) of Section 2
-of this Act;
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-(g) A city that has completed an agreed -upon procedures engagement in accordance with Section 4 of
-this Act;
-(h) A public agency or joint public agency of a:
-1. City of the first class;
-2. Consolidated local government; or
-3. County containing a city of the first class; or
-(i)[(g)] A school district of a:
-1. City of the first class;
-2. Consolidated local government; or
-3. County containing a city of the first class.
-SECTION 4.   A NEW SECTION OF KRS CHAPTER 91A IS CREATED TO READ AS FOLLOWS:
-(1) Beginning with fiscal years on and after July 1, 2027, a city required to complete an audit pursuant to the
-provisions of Section 2 of this Act may elect to instead have an agreed -upon procedures engagement with
-either the Auditor of Public Accounts or a certified public accountant under the provisions of this section.
-(2) A city shall meet the following conditions in order to proceed with an agreed -upon procedures engagement
-under this section for a particular fiscal year:
-(a) Unless proceeding under subsection (9) of this section, the city shall have complied with any of the
-applicable requirements under Section 2 of this Act or this section in the i mmediately preceding
-fiscal year;
-(b) The city has not been subject to a special examination from the Auditor of Public Accounts during
-the immediately preceding fiscal year or during the fiscal year to be audited;
-(c) For the fiscal year subject to be aud ited, the city received and expended from all sources and for all
-purposes less than fifteen million dollars ($15,000,000);
-(d) The city is not required by any other provision of state or federal law to perform an audit or
-examination more stringent than is required by this section; and
-(e) The city shall meet any other standards and requirements not in conflict with this subsection that
-may be established by the Auditor of Public Accounts through the promulgation of administrative
-regulations in accordance with KRS Chapter 13A.
-(3) An agreed-upon procedures engagement entered into by a city under this section shall be conducted and
-governed under the American Institute of Certified Public Accountants (AICPA) professional standards
-and any additional standar ds and requirements established by administrative regulation promulgated in
-accordance with KRS Chapter 13A by the Auditor of Public Accounts. Any agreed -upon procedures
-engagement conducted for a city shall, at a minimum, examine and report on:
-(a) Reconciliation of cash, including the recalculation of year -end bank reconciliations, confirmation of
-beginning and ending balances, and verification that reconciled bank balances agree to fund cash
-balances in the accounting system and financial statement;
-(b) Confirmation of cash balances directly with any external financial institutions;
-(c) Fund balances and transfers;
-(d) Inspection of investment holdings for compliance with applicable state law and any policies adopted
-by the city;
-(e) A statement of receipts and disbursements, including payroll disbursements;
-(f) Identification of outstanding debt, including confirmation of beginning and ending balances, any
-new debt issuance or payments, amortization schedules, and compliance with debt terms;
-(g) Verification that total expenditures do not exceed appropriations; and
-ACTS OF THE GENERAL ASSEMBLY 6
-(h) If applicable, an examination of local government economic assistance funds granted to the city
-under KRS 42.450 to 42.495 to ensure the funds were expended for the purposes intended.
-(4) An agreed-upon procedures engagement performed under this section shall be completed by March 1
-immediately following the fiscal year being examined. A copy of the agreed -upon procedures report shall be
-forwarded to the Department for Local Government for in formational purposes no later than April 1
-immediately following the fiscal year being examined. The Department for Local Government shall, upon
-request, make available electronic copies of reports submitted to it under this section to the Legislative
-Research Commission to be used for the purposes of KRS 6.955 to 6.975 and to the Auditor of Public
-Accounts if the Auditor is not a party to the agreed-upon procedures engagement.
-(5) Any city proceeding under this section to perform an agreed -upon procedures engagement in lieu of an
-audit shall enter into a contract with the Auditor of Public Accounts or a certified public accountant for the
-performance of that agreed -upon procedures engagement. The contract's terms and conditions shall
-include but not be limited to:
-(a) The Auditor of Public Accounts or the certified public accountant complete an agreed -upon
-procedures report in compliance with subsection (3) of this section;
-(b) The completed agreed -upon procedures report shall be presented to the city legisl ative body at a
-regular or special meeting; and
-(c) If the agreed -upon procedures engagement is completed by a certified public accountant, that the
-Auditor of Public Accounts shall be allowed to review the certified public accountant's work papers
-upon request.
-(6) A copy of an agreed-upon procedures engagement report which meets the requirements of this section shall
-be considered satisfactory and final in meeting any official request to a city for financial data, except as
-may be required by the Kentucky Revised Statutes, including those under KRS 6.955 to 6.975, and any
-judicial requirements.
-(7) An agreed-upon procedures engagement report completed under this section shall be deemed sufficient to
-meet any state law or administrative regulation that requires the submission or completion of an audit.
-(8) Not later than thirty (30) days after the date on which the presentation of the agreed -upon procedures
-engagement report has been made to the city, the city shall publish an advertisement in accord ance with
-KRS Chapter 424 that the agreed -upon procedures engagement report has been completed for the city and
-that:
-(a) The complete report, along with supplemental information, is available for inspection at city hall
-during normal business hours; and
-(b) Any citizen may obtain from city hall a copy of the completed agreed -upon procedures engagement
-report for personal use at a duplication cost not exceeding twenty-five cents ($0.25) per page.
-(9) A city that is two (2) or more fiscal years behind in com pleting or reporting under Section 2 or 3 of this Act
-may make an application to the Department for Local Government to proceed under this section with a
-single agreed -upon procedures engagement to bring the city into compliance for those fiscal years. The
-Department for Local Government shall prescribe any requirements, conditions, and other terms for using
-the process authorized under this subsection by administrative regulation promulgated in accordance with
-KRS Chapter 13A. Once completed, the Departmen t for Local Government shall treat the city as compliant
-with the requirements it had previously failed to meet under Section 2 or 3 of this Act.
-(10) A city shall forward a copy of any agreed -upon procedures engagement report completed pursuant to this
-section to the Auditor of Public Accounts upon request.
-Section 5.   KRS 75.031 is amended to read as follows:
-(1) (a) 1. Upon creation of a fire protection district or a volunteer fire department district as provided in
-KRS 75.010, the affairs of the distr ict shall be conducted by the board of trustees consisting of
-seven (7) members, four (4) to be elected by the members of the district as hereinafter set out and
-three (3) to be appointed by the county judge/executive or the mayor in a consolidated local
-government pursuant to the provisions of KRS 67C.139.
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-2. Two (2) members of the board of trustees shall be elected by the members of the firefighters of
-the district and shall be full-time paid employees of the district or  members of the district who
-personally reside in the district.
-3. Two (2) members of the board of trustees shall be property owners who own real or personal
-property which is subject to the fire protection tax pursuant to KRS 75.040, who personally
-reside in the district, and who are  not active firefighters and shall be elected by the property
-owners of the district. Property owners voting to select representatives to the board of trustees
-shall have attained the age of eighteen (18).
-4. The county judge/executive of the county in whi ch the greater part of the district is located shall,
-with the approval of the fiscal court, appoint three (3) members of the board of trustees who
-personally reside in the district. In counties containing a city of the first class, trustees appointed
-by the county judge/executive to serve in volunteer fire prevention districts shall reside within
-the boundaries of that county. In counties governed by a consolidated local government, trustees
-appointed by the mayor to serve in volunteer fire prevention dist ricts shall reside within the
-boundaries of the consolidated local government.
-5. At the first election held after the district is formed, one (1) firefighter shall be elected to serve
-on the board of trustees for a period of one (1) year and one (1) for a  period of three (3) years,
-and one (1) nonfirefighter property owner shall be elected to serve on the board of trustees for a
-period of two (2) years and one (1) for a period of four (4) years. On the expiration of the
-respective terms, the successor to e ach shall have the same qualifications as his or her
-predecessor and shall be elected for a term of four (4) years. The original appointed members of
-the board of trustees shall be appointed for terms of one (1), two (2), and three (3) years
-respectively. On the expiration of the respective terms, the successors to each shall be appointed
-for a term of three (3) years.
-6. Upon the establishment of a consolidated local government, incumbent members shall continue
-to serve until the expiration of their current term of office.
-7. In the event of a vacancy in the term of an appointed or elected trustee, the county
-judge/executive shall appoint with the approval of the fiscal court a trustee for the remainder of
-the term, except in a county containing a consolida ted local government. In a county containing a
-consolidated local government, the mayor pursuant to the provisions of KRS 67C.139 shall
-appoint a trustee for the remainder of the term.
-(b) An appointed trustee may be removed from office as provided by KRS 65.007.
-(c) 1. No person shall be an elected trustee who is not a resident of the district, except as provided in
-subsection (1)(a)2. of this section, and who , at the time of his or her election, is not a citizen of
-Kentucky and has not attained the age of twenty-one (21).
-2. Except for trustees elected under subsection (1)(a)2. of this section, a vacancy shall be
-declared to exist if an elected trustee no longer resides within the boundaries of the district at
-any time during his or her term of office.
-(d) Unless otherwise provided by law, an elected firefighter trustee may be removed from office by the
-mayor of a consolidated local government, or in a county not containing a consolidated local
-government, by the county judge/executive of the county in whic h the greater part of the district is
-located. An elected firefighter trustee may be removed 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 county judge/executive of a county or the mayor of a consolidated local
-government, who shall prepare a written statement setting forth the reasons for removal. The trustee to
-be removed shall be notified of his or her proposed removal and the reasons for the proposed removal
-by registered mail sent to his or her last known address at least ten (10) days prior to the hearing. The
-person proposed to be removed may employ counsel to represent him or her. A record of the hearing
-shall be made by the county judge/executive or mayor respectively.
-(e) The removal of an elected firefighter trustee of a fire protection district shall be subject to the approval
-of the fiscal court of the county in which the greater part of the district is located in those counties not
-containing a consolidated local government or the legislative council in a county containing a
-consolidated local government.
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-(f) An elected firefighter trustee removed pursuant to paragraphs (d) and (e) of this subsection may appeal,
-within ten (10) days of the rendering of the decision of the fiscal court or legislative council,
-respectively, to the Circuit Court of the county in which the greater part of the district is located. The
-scope of the appeal shall be limited to whether th e county judge/executive, mayor, legislative council,
-or the fiscal court respectively, abused their discretion in removing the trustee.
-(2) The elective offices of members of the board of trustees shall be filled by an election to be held once each year
-on the fourth Saturday of June between the hours of 11:00 a.m. and 2:00 p.m. The polls shall be located at the
-principal fire house in the district. The date, time, and place of the election shall be advertised in accordance
-with KRS 424.120. This notice sh all be advertised at least thirty (30) days prior to the election date and shall
-include the names and addresses of the candidates to be voted on for each position of trustee. In lieu of the
-published notice for the election of the firefighter trustees, wr itten notice containing the information required
-to be advertised may be sent by first -class mail to each member of the firefighters of the fire protection district
-or volunteer fire department district, addressed to the firefighter at his or her residence , at least thirty (30) days
-prior to the election date. The nominations for candidates for trustees both representing the firefighters and the
-property owners residing in the district shall be made in accordance with the bylaws of the department. The
-terms of the three (3) trustees appointed by the county judge/executive or mayor shall start at the same time as
-the terms of the elected trustees. On or before the beginning of the second fiscal or calendar year, depending
-on which basis the fire protection or  volunteer fire department district is being operated, after June 16, 1966,
-all departments organized prior to June 16, 1966, shall increase their boards of trustees from three (3) to seven
-(7) members and elect the elective members in the manner set forth herein.
-(3) The trustees shall elect from their number a chairman, a secretary, and a treasurer, the latter of whom shall
-give bond in an amount as shall be determined by the county judge/executive of the county in which the
-greater part of the fire prote ction district is located or the mayor in a consolidated local government,
-conditioned upon the faithful discharge of the duties of his or her office, and the faithful accounting for all
-funds which may come into his or her possession as treasurer. The pre miums on the bonds shall be paid out of
-the funds of the district.
-Section 6.   KRS 273.207 is amended to read as follows:
-(1) The affairs of a corporation shall be managed by a board of directors. Except as provided in subsection (2) of
-this section, directors need not be residents of this state or members of the corporation unless the articles of
-incorporation or the bylaws so r equire. The articles of incorporation or the bylaws may prescribe other
-qualifications for directors.
-(2) The members of the board of directors of a fire department organized under this chapter shall be residents
-of the geographic area served by the corpor ation. A vacancy shall be declared to exist if a member no
-longer resides within the geographic area served by the corporation at any time during his or her term of
-office.
-Section 7.   On the effective date of this section of this Act:
-(1) A vacancy shall be declared to exist in the office of any board of trustees member serving under Section
-5 of this Act who does not qualify under subsection (1)(a)2. of Section 5 of this Act, and the vacancy shall be filled in
-accordance with Section 5 of this Act; and
-(2) A vacancy shall be declared to exist in the office of any board of director member serving under Section
-6 of this Act who does not personally reside in the geographic area served by the corporation, and the vacancy shall
-be filled in accordance with KRS 273.213.
-Section 8.   Whereas it is critical to ensure the representation of residents served by fire protection entities,
-an emergency is declared to exist, and Sections 5, 6, and 7 of this Act take effect upon its passage and approval by the
-Governor or upon its otherwise becoming a law.
-Signed by Governor April 10, 2026.
+Amendment No. TITLE  Rep. Rep. David Meade
+
+Committee Amendment   Signed:
+
+Floor Amendment   LRC Drafter:
+
+Adopted:   Date:
+
+Rejected:   Doc. ID: XXXX
+
+Page 1 of 1
+  Amend the title to read as follows: "AN ACT relating to local entities and declaring an
+emergency.".