CHAPTER 174 Transportation Cabinet

174.010. Transportation Cabinet established — Secretary. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 74, Art. IV, § 1) was repealed by Acts 1992, ch. 13, § 13, effective July 14, 1992. For present law see KRS 12.250 and 12.255 .

174.012. “Cabinet” defined.

As used in this chapter, “cabinet” means the Transportation Cabinet.

History. Enact. Acts 2009, ch. 13, § 22, effective June 25, 2009.

174.015. Departments within the cabinet. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 74, Art. IV, § 2; 1982, ch. 184, § 2, effective July 15, 1982; 1984, ch. 406, § 2, effective July 13, 1984) was repealed by Acts 2000, ch. 85, § 6, effective July 14, 2000. For present law, see KRS 174.020 .

174.016. Department of Rural and Municipal Aid — Duties — Personnel.

  1. The Office of Rural and Secondary Roads within the Department of Rural and Municipal Aid shall be responsible for the development and implementation of the Rural Secondary Program and such other functions as are assigned by the secretary, except that the department shall not have jurisdiction over the County Road Aid Program or Municipal Road Aid Program unless an agreement initiated by a county or municipality is in effect.
  2. The Department of Rural and Municipal Aid shall include an assistant state highway engineer for rural and municipal aid appointed pursuant to KRS Chapter 12 by the secretary upon the recommendation of the state highway engineer of the Department of Highways.

History. Enact. Acts 1984, ch. 350, § 1, effective July 13, 1984; 2000, ch. 85, § 2, effective July 14, 2000; 2005, ch. 98, § 3, effective June 20, 2005; 2009, ch. 13, § 4, effective June 25, 2009.

174.020. Major organizational units.

  1. The Transportation Cabinet shall consist of the following major organizational units:
    1. The Office of the Secretary, which shall include, but not be limited to:
      1. The secretary to be appointed by the Governor under KRS 12.255 ; and
      2. The deputy secretary appointed under KRS 12.040 ;
    2. The Department of Highways, headed by a commissioner, appointed by the Governor under KRS 12.040 ;
    3. The Department of Vehicle Regulation, headed by a commissioner, appointed by the Governor under KRS 12.040. The Motor Vehicle Commission established in KRS 190.058 shall be attached to the Department of Vehicle Regulation for administrative purposes;
    4. The Department of Rural and Municipal Aid, headed by a commissioner appointed by the Governor under KRS 12.040;
    5. The Department of Aviation, headed by a commissioner appointed by the Governor under KRS 12.040. The Kentucky Airport Zoning Commission established by KRS 183.861 shall be attached to the Department of Aviation;
    6. The Office of Support Services, headed by an executive director appointed under KRS 12.040;
    7. The Office of Transportation Delivery, headed by an executive director appointed under KRS 12.040;
    8. The Office of Audits, headed by an executive director appointed under KRS 12.040;
    9. The Office of Human Resource Management, headed by an executive director appointed under KRS 12.040;
    10. The Office of Information Technology, headed by an executive director appointed under KRS 12.040;
    11. The Office of Legal Services, headed by an executive director appointed under KRS 12.040;
    12. The following offices, which shall be attached to the Office of the Secretary:
      1. The Office of Public Affairs, headed by an executive director appointed under KRS 12.040;
      2. The Office of Budget and Fiscal Management, headed by an executive director appointed under KRS 12.040;
      3. The Office for Civil Rights and Small Business Development, headed by an executive director appointed under KRS 12.040;
      4. The Office of Inspector General, headed by an executive director appointed under KRS 12.040; and
      5. The Secretary’s Office of Safety, headed by an executive director appointed under KRS 12.040;
    13. The following offices, which shall be attached to the Department of Highways:
      1. The Office of Project Development, headed by an executive director appointed under KRS 12.040, who shall be a registered professional engineer under KRS Chapter 322, and who shall be known as the deputy state highway engineer for project development;
      2. The Office of Project Delivery and Preservation, headed by an executive director appointed under KRS 12.040, who shall be a registered professional engineer under KRS Chapter 322, and who shall be known as the deputy state highway engineer for project delivery and preservation;
      3. The Office of Highway Safety, headed by an executive director appointed under KRS 12.040; and
      4. Highway District Offices One through Twelve, each district office to be headed by an executive director, also known as the chief district engineer, appointed under KRS 12.040, who shall be a registered professional engineer under KRS Chapter 322; and
    14. The following offices, which shall be attached to the Department of Rural and Municipal Aid:
      1. Office of Local Programs, headed by an executive director appointed under KRS 12.040; and
      2. Office of Rural and Secondary Roads, headed by an executive director appointed under KRS 12.040.
  2. The position of director in the Division of Environmental Analysis is a policy-making position under KRS 18A.175 .

History. Enact. Acts 1974, ch. 74, Art. IV, § 3; 1976, ch. 299, § 34; 1982, ch. 184, § 3, effective July 15, 1982; 1984, ch. 339, § 2, effective July 13, 1984; 1984, ch. 406, § 3, effective July 13, 1984; 1986, ch. 216, § 1, effective July 15, 1986; 1994, ch. 215, § 1, effective July 15, 1994; 1998, ch. 333, § 2, effective July 15, 1998; 2000, ch. 85, § 3, effective July 14, 2000; 2000, ch. 417, § 2, effective December 1, 2000; 2001, ch. 16, § 2, effective June 21, 2001; 2003, ch. 7, § 2, effective June 24, 2003; 2005, ch. 98, § 2, effective June 20, 2005; 2009, ch. 12, § 45, effective June 25, 2009; 2009, ch. 13, § 3, effective June 25, 2009; 2021 ch. 186, § 1, effective June 29, 2021; 2022 ch. 218, § 3, effective July 14, 2022.

Legislative Research Commission Notes.

(6/25/2009). During the processing of Senate Bill 182, which became 2009 Ky. Acts ch. 13, the following sentence was inadvertently inserted twice in subsection (1) of this statute: “The Motor Vehicle Commission established in KRS 190.058 shall be attached to the Department of Vehicle Regulation for administrative purposes.” This manifest clerical or typographical error has been corrected during codification by the Reviser of Statutes under the authority of KRS 7.136(1)(h).

(12/1/2000). The contingency on the effectiveness of this statute set by 2000 Ky. Acts ch. 417, sec. 18, was met, the voters of the Commonwealth having ratified at the general election on November 7, 2000, a constitutional amendment (see 2000 Ky. Acts ch. 399) abolishing the Railroad Commission.

NOTES TO DECISIONS

1.Acting Commissioners.

When defendant refused the alcohol test after driving intoxicated, he had a due process hearing, and it was immaterial that the acting Commissioner for the Department of Vehicle Regulation rather than the Secretary of the Transportation Cabinet signed the order of operator’s license suspension as long as that individual did so in an official capacity. Commonwealth v. Mullins, 812 S.W.2d 164, 1991 Ky. App. LEXIS 37 (Ky. Ct. App. 1991).

2.Signing of Orders.

The signing of a motor vehicle suspension order by the Commissioner of the Department of Vehicle Regulation, rather than the Secretary of the Transportation Cabinet, was valid under this section. Cummins v. Lentz, 813 S.W.2d 822, 1991 Ky. App. LEXIS 70 (Ky. Ct. App. 1991).

174.025. Office of Legal Services.

The executive director of the Office of Legal Services may also serve as general counsel if so appointed pursuant to KRS 12.210 . The Office of Legal Services shall be directly responsible to the secretary and shall perform such duties as may be assigned by the secretary. The office shall consist of such attorneys appointed pursuant to KRS 12.210 and such employees as necessary to perform the duties, responsibilities, and functions of the office.

History. Enact. Acts 1974, ch. 74, Art. IV, § 4; 1982, ch. 184, § 4, effective July 15, 1982; 1984, ch. 406, § 4, effective July 13, 1984; 2000, ch. 85, § 4, effective July 14, 2000; 2005, ch. 98, § 4, effective June 20, 2005.

174.030. Staff services — Administrator. [Repealed.]

Compiler’s Notes.

This section (Acts 1974, ch. 74, Art. IV, § 5) was repealed by Acts 1976, ch. 299, § 91.

174.035. Internal organization — Divisions.

The secretary shall establish the internal organization of the cabinet not established in 1974 Acts, ch. 74, and shall divide the cabinet into such offices or divisions as the secretary may deem necessary to perform the functions, powers and duties of the cabinet, subject to the provisions of KRS Chapter 12.

History. Enact. Acts 1974, ch. 74, Art. IV, § 6.

174.040. Powers of secretary — Designation of deputy secretaries.

The secretary shall have any and all necessary power and authority, subject to appropriate provisions of the statutes, to create such positions and to employ the necessary personnel in such positions to enable the secretary to perform the functions of the cabinet. The commissioner of the Department of Highways, the commissioner of the Department of Rural and Municipal Aid, and the commissioner of the Department of Vehicle Regulation may be designated as deputy secretaries for operational purposes.

History. Enact. Acts 1974, ch. 74, Art. IV, § 7; 1984, ch. 350, § 2, effective July 13, 1984; 2005, ch. 98, § 5, effective June 20, 2005; 2009, ch. 13, § 5, effective June 25, 2009.

174.045. Appointments of assistants.

All appointments to positions not in the classified service shall be made pursuant to KRS 12.050 and such appointees shall be major assistants to the secretary and shall assist in the development of policy.

History. Enact. Acts 1974, ch. 74, Art. IV, § 8.

174.050. Transfer of functions of Highways, Motor Transportation, and Aeronautics Departments.

There are hereby transferred to and vested in the secretary and cabinet all functions, powers and duties, funds, personnel, equipment, and supplies existing under present law in the Department of Highways, Department of Motor Transportation, Department of Aeronautics, and under commissioners and other officers and offices of said Departments of Highways, Motor Transportation, and Aeronautics.

History. Enact. Acts 1974, ch. 74, Art. IV, § 9.

174.055. Other agency functions transferred to cabinet.

There are hereby transferred to and vested in the secretary and cabinet all functions, powers, duties, funds, personnel, equipment, and supplies relating to operators’ licenses under provisions of KRS Chapter 186, boats and boating provisions of KRS Chapter 235, financial responsibility provisions of KRS Chapter 189, traffic safety coordinating committee under provisions of KRS Chapter 17, and motor vehicle inspection under provisions of KRS Chapter 189, which said provisions of law have been conferred upon the Department of Public Safety and under the commissioner and other officers and offices of said Department of Public Safety. The examination of applicants under KRS 186.480 shall be retained by the Department of Kentucky State Police.

History. Enact. Acts 1974, ch. 74, Art. IV, § 10; 2007, ch. 85, § 179, effective June 26, 2007.

174.056. KYTC photo license account. [Effective until July 1, 2024]

  1. The KYTC photo license account is created within the road fund, to be administered by the Transportation Cabinet. The account shall consist of the portion of fees directed to the account under KRS 186.531 and any other proceeds from grants, contributions, appropriations, or other moneys made available for the purposes of the account.
  2. Notwithstanding KRS 45.229 , any moneys remaining in the account not expended at the close of a fiscal year shall not lapse but shall be carried forward to the next fiscal year.
  3. Any interest earnings of the account shall become a part of the account and shall not lapse.
  4. Moneys in the account shall be used for the purposes of verifying, creating, and distributing secure photo instruction permits, operator’s licenses, and personal identification cards and are hereby appropriated for these purposes.

History. 2017 ch. 100, § 23, effective January 1, 2019.

174.056. KYTC photo license account. [Effective July 1, 2024]

  1. The KYTC photo license account is created within the road fund, to be administered by the Transportation Cabinet. The account shall consist of the portion of fees directed to the account under KRS 186.531 and 186.577 , and any other proceeds from grants, contributions, appropriations, or other moneys made available for the purposes of the account.
  2. Notwithstanding KRS 45.229 , any moneys remaining in the account not expended at the close of a fiscal year shall not lapse but shall be carried forward to the next fiscal year.
  3. Any interest earnings of the account shall become a part of the account and shall not lapse.
  4. Moneys in the account shall be used for the purposes of verifying, creating, and distributing secure photo instruction permits, operator’s licenses, and personal identification cards and are hereby appropriated for these purposes.

HISTORY: 2017 ch. 100, § 23, effective January 1, 2019; 2021 ch. 126, § 3, effective July 1, 2024.

174.057. Railroad regulation — Division of Planning — Administrative regulations.

The Transportation Cabinet shall have the responsibility of regulating railroads within the Commonwealth. The cabinet shall delegate to the Division of Planning within the Department of Highways’ Office of Project Development the powers necessary to carry out the provisions of this section. The secretary may employ such personnel as necessary to perform the duties, functions, and responsibilities associated with the regulation of railroads. The division shall have all the powers previously vested in the Kentucky Railroad Commission. The cabinet shall promulgate administrative regulations under KRS Chapter 13A to carry out the provisions of this section.

History. Enact. Acts 2000, ch. 417, § 1, effective December 1, 2000; 2009, ch. 13, § 6, effective June 25, 2009.

Legislative Research Commission Note.

(12/1/2000). The contingency on the effectiveness of this statute set by 2000 Ky. Acts ch. 417, sec. 18, was met, the voters of the Commonwealth having ratified at the general election on November 7, 2000, a constitutional amendment (see 2000 Ky. Acts ch. 399) abolishing the Railroad Commission.

174.058. Shortline railroad assistance fund.

  1. As used in this section:
    1. “Class II railroad” means a railroad company classified as a Class II carrier by the federal Surface Transportation Board; and
    2. “Class III railroad” means a railroad company classified as a Class III carrier by the federal Surface Transportation Board.
  2. The shortline railroad assistance fund is hereby established in the State Treasury as an interest-bearing fund and shall be administered by the cabinet.
  3. The fund shall be a dedicated fund, and all moneys in the fund shall be used solely to provide financial assistance for the rehabilitation and improvement of a Class II railroad and Class III railroad operating in Kentucky.
  4. Eligible costs for which financial assistance may be provided shall include construction, reconstruction, improvement, or rehabilitation of rail facilities, including tracks, ties, roadbeds, and related structures used for freight rail operation.
  5. Financial assistance provided from the fund shall be limited to:
    1. Grants; and
    2. Loans, which shall be made at or below market interest rates, including interest-free loans, at terms not to exceed ten (10) years.
  6. All loan payments and repayments, and all interest payments on loans, shall be credited to the fund.
  7. The cabinet may promulgate administrative regulations regarding procedures for providing financial assistance pursuant to this section.
  8. The shortline railroad assistance fund is authorized to receive funds from appropriations of the General Assembly, repayments of loans and interest thereon, interest from fund principal, grants, donations, and payments to the fund for any lawful purpose.
  9. Notwithstanding KRS 45.229 , any moneys remaining in the fund at the close of a fiscal year shall not lapse but shall be carried forward to the next fiscal year to be used for the purposes set forth in this section.
  10. The cabinet may enter into agreements with federal or state agencies or any other persons to carry out the provisions of this section.
  11. Any moneys in the fund are hereby appropriated for the purposes set forth in this section.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 72, effective June 26, 2009.

174.060. Licenses and fees.

There are hereby transferred to and vested in the secretary and cabinet all functions, powers, duties, funds, personnel, equipment and supplies relating to motor vehicle license under the provisions of KRS Chapter 186, operator license under provisions of KRS Chapter 186 and boating fees under provisions of KRS Chapter 235, which said provisions of law have been conferred upon the Department of Revenue and under the commissioner and other officers and offices of said Department of Revenue.

History. Enact. Acts 1974, ch. 74, Art. IV, § 11.

174.065. Traffic safety.

The cabinet shall:

  1. Assist the Department of Kentucky State Police in coordinating all efforts of the state’s various departments and agencies to promote traffic safety and in making recommendations regarding the prevention of unnecessary duplications of these efforts;
  2. Cooperate with all organizations, public or private, in the encouragement and promotion of traffic safety education in all forms; and
  3. Receive, control, and expend, in accordance with the general provisions of the Kentucky Revised Statutes governing financial administration of all state agencies, grants, and funds from either public or private sources.

History. Enact. Acts 1974, ch. 74, Art. IV, § 12; 1984, ch. 404, § 18, effective July 13, 1984; 2007, ch. 85, § 180, effective June 26, 2007.

174.070. Funds, credits, assets, etc., transferred to cabinet.

All funds, credits, assets, appropriations, outstanding obligations, personnel, equipment, any and all resources or other tangible personal property and any business or other matter undertaken or now vested in the Department of Highways, Department of Motor Transportation, Department of Aeronautics, Department of Public Safety, Department of Revenue, relating to functions transferred under 1974 Acts ch. 74, are hereby transferred and vested in the cabinet.

History. Enact. Acts 1974, ch. 74, Art. IV, § 13.

174.075. Rules and regulations.

Except as otherwise provided in 1974 Acts ch. 74, all rules, regulations, acts, agreements, determinations and decisions of the Department of Public Safety, Department of Highways, Department of Motor Transportation, Department of Aeronautics, and Department of Revenue, shall remain in effect within the cabinet until duly modified or repealed by the secretary.

History. Enact. Acts 1974, ch. 74, Art. IV, § 14.

174.080. Administrative regulations.

  1. The secretary may promulgate administrative regulations not inconsistent with the provisions of 1974 Acts ch. 74.
  2. The Transportation Cabinet shall adopt such administrative regulations and procedures consistent with the provisions of KRS 56.610 to 56.760 as it deems necessary or appropriate to carry out the provisions of KRS 56.610 to 56.760 with regard to requirements of the Department of Highways as provided for in KRS Chapters 175, 176, 177 and 180.

History. Enact. Acts 1974, ch. 74, Art. IV, § 15; 1986, ch. 15, § 1, effective July 15, 1986.

174.085. Administrative support services.

All corporate bodies and instrumentalities of the Commonwealth, advisory committees, commissions, councils, interstate compact, or other statutory bodies presently attached to the functions in whole or in part of the Departments of Public Safety, Aeronautics, Highways, Motor Transportation, and Revenue and transferred to the Department of Transportation under 1974 Acts ch. 74, shall be attached to the Transportation Cabinet for administrative support services. The secretary of transportation, or his designee, shall serve as member of any authority, commission, board, committee, or other entity on which by virtue of law, regulation, or order the commissioner of public safety, commissioner of highways, commissioner of motor transportation, commissioner of aeronautics, commissioner of revenue is a member by virtue of his office. Any office, or its successor agency, presently designated as Kentucky representative for a federally related program shall continue as such until such designation is modified by the secretary with the approval of the Governor.

History. Enact. Acts 1974, ch. 74, Art. IV, § 16.

174.100. Public hearing required prior to expenditure by unit of local government of state-derived tax revenues on roads — Effect of hearing — Exceptions.

  1. Before any unit of local government expends state-derived tax revenues on a state rural, secondary, county road or municipal highway, road, street, or county or municipal bridge, it shall provide an opportunity to the public to provide input in a public meeting for which notice has been given under KRS 61.823(2) to (4) with regard to the project and to priorities for use of tax moneys for road and bridge purposes.
  2. Prior to the contemplated date of expenditure of state-derived tax revenues on a road or bridge by a unit of local government, that unit of government shall include the topic as a specific item on the public meeting agenda and shall allow any person to speak with regard to any proposed project, any project which he or she feels should be built or done which has not been proposed, priorities for completion of projects, and any other matter related to road or bridge projects.
  3. The unit of local government shall not be bound by the comments and input provided at the meeting but shall give due consideration to them.
  4. No unit of local government shall begin construction on a road or bridge project in which state-derived tax revenues are involved until the meeting as provided in this section has been held.
  5. This section shall not be construed to require a separate meeting for each project. A single meeting encompassing the entire road and bridge program, if all projects subsequently undertaken have been identified at the meeting, shall meet the requirements of this section.
  6. The provisions of this section shall not apply to emergency repair or replacement of roads or bridges necessitated by natural or man-caused disasters nor to street cleaning or snow removal operations.

History. Enact. Acts 1980, ch. 370, § 1, effective July 15, 1980; 1990, ch. 50, § 2, effective July 13, 1990; 1992, ch. 33, § 5, effective July 14, 1992; 2022 ch. 103, § 3, effective July 14, 2022.

Legislative Research Commission Notes.

(7/14/2022). Under the authority of KRS 7.136(1), the Reviser of Statutes has corrected the format of this section following the enactment of 2022 Ky. Acts ch. 103, sec. 3. The words in the text were not changed.

174.105. Motor carrier regulatory board — Membership — Hearings on violations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 203, § 15, effective July 15, 1982) was repealed by Acts 1984, ch. 373, § 12, effective July 13, 1984.

174.120. Statewide bicycle and bikeways program.

  1. The Transportation Cabinet shall develop and coordinate a statewide bicycle and bikeways program and shall coordinate plans for promotion of bicycling and promotion of bikeways with other state agencies, and units of local government in order to maximize the use of roads, streets, parks and other publicly owned lands, abandoned road beds, and other resources in the development of bikeways.
  2. The cabinet shall:
    1. Assist and cooperate with local governments and other agencies in the development and construction of local and regional bikeway projects;
    2. Develop and publish policies, procedures, and standards for planning, designing, and constructing, maintaining, marking, and operating bikeways in the state, and for the safety of bicyclists, motorists, and the public;
    3. Develop bikeway demonstration projects and safety training programs; and
    4. Develop and construct a State Bikeway System.
    1. The cabinet shall be authorized to appropriate needed funds for the program in the biennial budget, subject to approval of the General Assembly.
    2. The cabinet is authorized to obtain any federal, state, local, or private funds available to the cabinet, and designated for the purpose of this section and KRS 174.125 .

History. Enact. Acts 1992, ch. 111, § 1, effective July 14, 1992.

174.125. Kentucky Bicycle and Bikeway Commission — Membership — Duties — Authority to adopt administrative regulations.

  1. There is hereby created a Kentucky Bicycle and Bikeway Commission within the Transportation Cabinet. The commission shall consist of seven (7) members appointed by the Governor. Members of the commission shall receive necessary travel expenses. The members of the commission shall elect a chairman who shall serve a two (2) year term. Initially, three (3) members shall be appointed for two (2) years, and four (4) members for four (4) years. Each appointment thereafter shall be for four (4) years. Upon the resignation of a member in midterm, the Governor shall appoint a replacement for the remainder of the unexpired term. The Governor shall make appointments to the commission with a view to represent each of the state’s geographical regions and to various types of bicycle users and interests.
  2. The commission shall meet in various sections of the state on a quarterly basis, and at other times as may be necessary to fulfill its duties. A majority of the members shall constitute a quorum for the transaction of business. The commission shall be provided with adequate staff as determined by the secretary, and this staff shall be responsible for maintaining the minutes of the meetings, researching bicycle and bikeway related topics, and other activities for the commission as may be consistent with the commission’s role within the cabinet.
  3. The commission shall have the following duties:
    1. To represent the interests of bicyclists in advising the secretary on all matters pertaining to bicycles, bikeways, and their use, extent, and location;
    2. Assist the bicycle and bikeway program in the exercise of its duties within the cabinet;
    3. Promote the best interests of the bicycling public, within the context of the total transportation system, to governing officials and the public at large.
  4. The secretary shall study bicycle and bikeway needs and potentials and shall report the findings to the legislature on an annual basis.
  5. The secretary shall adopt administrative regulations to implement the purposes of KRS 174.120 and this section.
  6. Initial appointments to the commission shall be made no later than August 1, 1994.

History. Enact. Acts 1992, ch. 111, § 2, effective July 14, 1992.

174.130. Cabinet’s duty to transmit information concerning abandonment of railroad corridors to Department of Parks and Railtrail Development Office — Records and maps of railroad lines.

  1. The Transportation Cabinet, including any agency or other unit of government attached to the cabinet, shall immediately transmit to the Department of Parks and to the Commonwealth’s Railtrail Development Office in the Department for Local Government any information received from a railroad or other person having an ownership interest in a railroad corridor pertaining to a proposed or pending action or proceeding to obtain federal authority for the regulatory abandonment of that railroad corridor.
  2. The Transportation Cabinet shall keep a record of railroad lines in the Commonwealth of Kentucky, including both lines that have been abandoned through the federal government’s regulatory abandonment process and those where any railroad property interest in the railroad corridor itself has been abandoned under Kentucky law. The cabinet shall annually publish an updated map showing the location and as much information as to the status of these lines as practicable. The record shall include, inasmuch as possible:
    1. A description of the line and its location;
    2. The current or last railroad owner of the line;
    3. The operator of the line;
    4. The addresses and phone numbers for the owners and operators of the lines;
    5. Whether the owner of the line has received authority from the Federal Government to discontinue service over the line;
    6. Whether the owner of the line has received authority from the Federal Government to abandon the line;
    7. Whether the owner of the line has consummated any authority granted by the Federal Government to discontinue service over the line or to abandon the line;
    8. Whether the line has been railbanked under either federal or state law; and
    9. Any other information the cabinet deems pertinent and useful to the public.

History. Enact. Acts 2000, ch. 338, § 6, effective July 14, 2000; 2007, ch. 47, § 81, effective June 26, 2007; 2010, ch. 117, § 77, effective July 15, 2010.

174.135. Division of Incident Management.

The director of the Division of Incident Management within the Department of Highways’ Office of Highway Safety shall be responsible for statewide transportation emergency and critical incident information and systems control. The director:

  1. Shall be directly responsible and report to the executive director of the Office of Highway Safety; and
  2. May, with the approval of the executive director, employ the staff necessary to perform the duties, functions, and responsibilities of the division.

History. Enact. Acts 2003, ch. 7, § 3, effective June 24, 2003; 2009, ch. 13, § 7, effective June 25, 2009.

Water Transportation

174.200. Water Transportation Advisory Board — Members — Officers — Meetings.

  1. The Water Transportation Advisory Board is established as an advisory body to the executive and legislative branches of government on matters pertaining to water transportation.
  2. The Water Transportation Advisory Board shall be composed of seven (7) members, to be appointed as follows:
    1. Four (4) members representing the Commonwealth’s public riverports, to be appointed by the Governor from a list of eight (8) nominees supplied by the Kentucky Association of Riverports. The Governor shall give consideration to including a representative from each river containing an operating public riverport;
    2. Two (2) at-large members, to be appointed by the Governor from the private sector associated with the waterways industry; and
    3. One (1) member representing Kentuckians for Better Transportation, to be appointed by the Governor from a list of three (3) nominees supplied by that organization.
  3. After the initial appointments, members of the Water Transportation Advisory Board shall serve terms of four (4) years. Members shall be eligible to succeed themselves and shall serve until their successor is appointed.
  4. Members of the Water Transportation Advisory Board shall not be paid for their service as board members, and shall not be reimbursed for any expenses involved in attending board meetings.
  5. The Water Transportation Advisory Board shall elect a chair and a vice chair from its members who shall serve in those capacities until replaced. A majority of the board shall constitute a quorum for the purposes of conducting business. The board shall be subject to the provisions of the Kentucky Open Records Act, KRS 61.870 to 61.884 .
  6. The Water Transportation Advisory Board shall meet biennially, or when called by the chair, or at the request of the secretary of the Transportation Cabinet. The board shall receive assistance in carrying out its administrative functions from the Transportation Cabinet and shall be attached to the Transportation Cabinet for administrative purposes.

History. Enact. Acts 2010, ch. 56, § 1, effective July 15, 2010.

Legislative Research Commission Note.

(7/15/2010). 2010 Ky. Acts ch. 56, sec. 5, sets forth the initial terms for members of the Water Transportation Advisory Board established by this section.

174.205. Duties of Water Transportation Advisory Board.

The Water Transportation Advisory Board shall:

  1. Advise the Transportation Cabinet, the Cabinet for Economic Development, the Governor’s Office, and the General Assembly on matters relating to water transportation;
  2. Recommend action to enable the Commonwealth to make best use of its waterways and riverports for future economic growth;
  3. Assist in defining the duties and functions of positions within state government responsible for water transportation;
  4. Recommend criteria for setting priorities for funding riverport marketing initiatives under the riverport marketing assistance trust fund established in KRS 154.80-140 ;
  5. Evaluate applications submitted by riverports for grants under the riverport marketing assistance trust fund and make recommendations to the granting authority on the disbursement of those funds;
  6. Recommend criteria for setting priorities for funding riverport improvements under the riverport financial assistance trust fund established in KRS 174.210 ; and
  7. Evaluate applications submitted by riverports for grants under the riverport financial assistance trust fund and make recommendations to the granting authority on the disbursement of those funds.

History. Enact. Acts 2010, ch. 56, § 2, effective July 15, 2010.

174.210. Riverport financial assistance trust fund — Contributions — Purpose — Grants — Annual report.

  1. There is created a riverport financial assistance trust fund, to be administered by the Transportation Cabinet.
  2. The riverport financial assistance trust fund may receive appropriations, federal funds, contributions, gifts, and donations.
  3. The purpose of the riverport financial assistance trust fund shall be to improve riverport facilities and infrastructure, to capture the economic and trade potential offered by water transportation. To the extent funds are available, the fund shall make grants to riverport authorities for new construction and major replacement or repair projects, including but not limited to improvement of docks, wharves, equipment, port buildings, storage facilities, roads and railroads to facilitate the flow of commerce through the port, other on-site improvements, and related professional services. Eligible projects shall not include routine operations, maintenance, or repair activities.
  4. Notwithstanding KRS 45.229 , moneys remaining in the fund at the close of a fiscal year shall not lapse but shall carry forward into the succeeding fiscal year. Interest earned on any moneys in the fund shall accrue to the fund. Amounts from the fund shall be disbursed and expended in accordance with this section.
  5. To be eligible for a grant under this section, the applicant shall provide at least a twenty percent (20%) match, which may be obtained from any public or private source.
    1. Grant applications shall be reviewed and awarded annually.
    2. The Transportation Cabinet shall submit all applications to the Water Transportation Advisory Board established by KRS 174.200 for evaluation and recommendations prior to awarding any grant funding under this section.
    3. Priority shall be given to applicants with a riverport master plan, for capital-intensive projects for which permits have been obtained, and for projects for which matching funds have been obtained.
  6. The Transportation Cabinet shall submit on an annual basis a report detailing all grants awarded under this section to the Water Transportation Advisory Board, the Interim Joint Committee on Transportation, and the Interim Joint Committee on Appropriations and Revenue.

History. Enact. Acts 2010, ch. 56, § 4, effective July 15, 2010.

Legislative Research Commission Note.

(9/24/2015). The phrase “Notwithstanding KRS 45.299” in subsection (4) of this statute has been changed to “Notwithstanding KRS 45.229 .” This manifest clerical or typographical error has been corrected by the Reviser of Statutes under the authority of KRS 7.136 .

Hazardous Materials

174.400. Legislative intent.

Due to the central geographical location of the Commonwealth with respect to the hazardous materials industry, and since most predictions indicate that the amount of hazardous material in transport should substantially increase in the future, it is the intent of KRS 174.405 to 174.425 to provide for the public health and safety of the citizens and to protect the environment of the Commonwealth when any hazardous material is being transported within, or, in the case of radioactive materials, within or through this state.

History. Enact. Acts 1980, ch. 384, § 1, effective July 15, 1980; 1994, ch. 99, § 2, effective July 15, 1994.

Opinions of Attorney General.

Since KRS 174.400 to 174.435 does not pertain to the transportation of radioactive materials in a private passenger’s automobile, a doctor who uses his private motor vehicle to transport radium for the treatment of his patients is not required to obtain a permit from the department of transportation in order to transport such material. OAG 80-653 .

174.405. Definitions.

As used in KRS 174.400 to 174.425 :

  1. “Carrier” means a person engaged in the commercial transportation of passengers or property, except for pipelines and railways, by:
    1. Land, as a common, contract, or private carrier; or
    2. Civil aircraft.
  2. “Hazardous material” means a substance designated hazardous by the Federal Hazardous Materials Transportation Law (49 U.S.C. sec. 5101 et seq.) and regulations issued pursuant thereto, including but not limited to hazardous and radioactive waste, but shall not include agricultural wastes, coal mining wastes, utility waste (fly ash, bottom ash, scrubber sludge), sludge from water treatment and sewage treatment facilities, cement kiln dust, gas and oil drilling muds, oil production brines or waste oil.
  3. “Hazardous waste” means a substance or material defined as hazardous waste by KRS Chapter 224 and regulations issued pursuant thereto.
  4. “Radioactive material” means any material or combination of material, which spontaneously emits ionizing radiation. Materials in which the estimated specific activity is not greater than 0.002 microcuries per gram of material, and in which the radioactivity is essentially uniformly distributed, are not considered to be radioactive materials.
  5. “Radioactive waste” means any waste substance or combination of substances, in any form which because of its radioactive material content may create a threat to public health or to animal, plant, and aquatic life forms.
  6. “Vehicle” means any device or contrivance for carrying or conveying persons, property, or substances, including conveyance by highways or by airway.

History. Enact. Acts 1980, ch. 384, § 2, effective July 15, 1980; 1994, ch. 99, § 3, effective July 15, 1994; 2005, ch. 165, § 10, effective June 20, 2005.

174.410. Administrative regulations and agreements with other cabinets.

  1. The secretary shall be responsible for controlling and regulating the movement of all radioactive materials and the intrastate transport of other hazardous materials transported by all carrier modes within the Commonwealth.
  2. The secretary, in consultation with the secretary of the Energy and Environment Cabinet and the secretary of the Cabinet for Health and Family Services, shall adopt by reference or in entirety, the Federal Hazardous Materials Transportation Regulations, 49 C.F.R. (1978), as amended, to effectively carry out the intent of KRS 174.400 to 174.425 .
  3. The cabinet and the Justice and Public Safety Cabinet shall cooperate with and assist the Energy and Environment Cabinet in implementing and enforcing the transportation provisions of any state hazardous waste regulations promulgated pursuant to KRS Chapter 224. The specific nature and details of the assistance effort shall be established by a formal cooperative agreement acceptable to the cabinets, and all activities shall occur in accordance with the terms of the agreement. The agreement shall address and include but not necessarily be limited to the following items:
    1. As a part of routine and periodic transportation checks and inspections, ensure that shipments of hazardous waste do not present a threat to the public or the environment; are accompanied by the required hazardous waste manifest or such other shipping or delivery documents as may be acceptable to the Energy and Environment Cabinet; and comply with applicable shipping standards;
    2. Upon receipt of a written request from the secretary or general counsel of the Energy and Environment Cabinet, actively conduct field investigations relating to the illegal, improper, or unauthorized transport of hazardous waste in the state. Such investigations may, at a minimum, include passive and active surveillance, apprehension, and reporting, with the scope and extent of each investigation to be previously agreed to by the involved cabinets;
    3. Compile and maintain such necessary records that may normally be required to carry out the provisions of this subsection and shall for minor violations report quarterly, and for major violations report weekly, to the Energy and Environment Cabinet on the status of the interagency hazardous-waste transportation monitoring and enforcement activity for irregularities or violations;
    4. Provide any information, evidence, and other support, either in written form or in the form of oral testimony during a legal proceeding or both, as may be required by the Energy and Environment Cabinet to fully carry out its statutory responsibility under the appropriate sections of KRS Chapter 224;
    5. The Energy and Environment Cabinet shall, unless specifically agreed otherwise, have primary responsibility for initiating and conducting all legal proceedings arising from the terms and provisions of this subsection; and
    6. The Energy and Environment Cabinet shall provide sufficient training, technical assistance, and other support to the appropriate cabinets to prepare representatives of the cabinets to adequately carry out the responsibilities set forth in this subsection.

History. Enact. Acts 1980, ch. 484, § 3, effective July 15, 1980; 1994, ch. 99, § 4, effective July 15, 1994; 1998, ch. 426, § 121, effective July 15, 1998; 2005, ch. 99, § 142, effective June 20, 2005; 2007, ch. 85, § 181, effective June 26, 2007; 2010, ch. 24, § 228, effective July 15, 2010.

Research References and Practice Aids

Kentucky Law Journal.

Cox, What May States Do About Out-of-State Waste in Light of Recent Supreme Court Decisions Applying the Dormant Commerce Clause? Kentucky As Case Study in the Waste Wars, 83 Ky. L.J. 551 (1994-95).

174.415. Inspection and enforcement program.

The secretary shall establish an inspection and enforcement program to determine compliance with the provisions of KRS 174.400 to 174.425 , and any regulations promulgated under KRS 174.410 . In carrying out the provisions of KRS 174.400 to 174.425 , the secretary shall not duplicate the enforcement and inspection activities performed by the federal government.

History. Enact. Acts 1980, ch. 384, § 4, effective July 15, 1980; 1994, ch. 99, § 5, effective July 15, 1994.

Opinions of Attorney General.

Since KRS 174.400 to 174.435 does not pertain to the transportation of radioactive materials in a private passenger’s automobile, a doctor who uses his private motor vehicle to transport radium for the treatment of his patients is not required to obtain a permit from the department of transportation in order to transport such material. OAG 80-653 .

Research References and Practice Aids

Kentucky Law Journal.

Stephens, Commencing the Decade With Environmental Reform: The 1980 Kentucky General Assembly Implements the Resource Conservation and Recovery Act of 1976, 69 Ky. L.J. 227 (1980-81).

174.420. Carrying of shipping papers and hazardous waste manifest.

  1. Any person transporting hazardous materials in the Commonwealth shall carry a copy of the shipping papers required in 49 C.F.R. (1978), as amended, in the transporting vehicle while in the Commonwealth.
  2. In the event of an accident involving hazardous material, the operator of the vehicle shall:
    1. Notify the Department of Kentucky State Police of the accident within one (1) hour, who shall then notify the local jurisdiction and any other appropriate state agency with emergency action responsibility, and
    2. Provide the shipping papers to state and local emergency response authorities, and immediately bring to their attention the fact that the vehicle is transporting hazardous materials.
  3. In addition to the other requirements of this section, any person transporting hazardous wastes shall carry in the transporting vehicle a copy of a manifest in a form approved by the Energy and Environment Cabinet.

History. Enact. Acts 1980, ch. 384, § 5, effective July 15, 1980; 1994, ch. 99, § 7, effective July 15, 1994; 2007, ch. 85, § 182, effective June 26, 2007; 2010, ch. 24, § 229, effective July 15, 2010.

Research References and Practice Aids

Kentucky Law Journal.

Stephens, Commencing the Decade With Environmental Reform: The 1980 Kentucky General Assembly Implements the Resource Conservation and Recovery Act of 1976, 69 Ky. L.J. 227 (1980-81).

174.425. Exemption for national security purposes.

The provisions of KRS 174.400 to 174.425 shall not apply to hazardous materials shipped by the United States government. Nothing herein shall be construed as requiring the disclosure of any defense information or restricted data as defined in 42 U.S.C. secs. 2011 et seq. and 42 U.S.C. secs. 5801 et seq.

History. Enact. Acts 1980, ch. 384, § 6, effective July 15, 1980; 1994, ch. 99, § 1, effective July 15, 1994.

174.430. Fees. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 384, § 7, effective July 15, 1980) was repealed by Acts 1994, ch. 99, § 8, effective July 15, 1994.

174.435. Exemption. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 384, § 9, effective July 15, 1980) was repealed by Acts 1994, ch. 99, § 8, effective July 15, 1994.

Municipal Solid Waste

174.450. License to operate a municipal solid waste transportation vehicle — Application procedures — Placard for display — Exemption — Registration fees.

  1. As used in this section, “municipal solid waste transportation vehicle” means any truck, automobile, tractor, or other self-propelled vehicle not operated or driven on fixed rails or track used in the transportation of municipal solid waste; but does not include a vehicle used to transport municipal solid waste from a residence if the vehicle is owned or leased by an individual who lives in the residence, or a vehicle that is ten thousand (10,000) pounds or less.
  2. This section shall not apply to a vehicle used exclusively on private roads or to transport municipal solid waste within the boundaries of or to real property owned or leased by the generator of the municipal solid waste.
  3. This section shall apply to both publicly and privately-owned municipal solid waste transportation vehicles.
  4. No person shall operate a municipal solid waste transportation vehicle within the Commonwealth without first having obtained a license from the Transportation Cabinet to operate a municipal solid waste transportation vehicle pursuant to regulations promulgated by the cabinet.
  5. No person shall cause municipal solid waste to be transported by a municipal solid waste transportation vehicle which has not been licensed by the cabinet as required by this section.
  6. The cabinet shall establish a municipal solid waste transportation vehicle licensing program. No more than one (1) license shall be required for any single business entity. An applicant shall file an application with the cabinet containing such information in such form as the cabinet requires, to include:
    1. Name, home address, and Social Security number of a natural person who is the applicant or an officer of the applicant;
    2. Name and address of the principal place of business of the applicant;
    3. Vehicle identification number of each vehicle; licensing jurisdiction and registration number of each vehicle; type and gross weight rating or combination weight rating of each vehicle to be operated under the license;
    4. A consent-to-service jurisdiction document executed in accordance with KRS Chapter 224; and
    5. The applicant’s Kentucky highway use tax identification number required by KRS 138.665 or proof that the applicant is not under the purview of KRS 138.665 , and either the applicant’s Interstate Commerce Commission identification number or United States Department of Transportation identification number.
  7. A copy of the municipal solid waste transportation license, which is specific to each individual vehicle operated by the licensee, issued by the cabinet under this section:
    1. Shall be carried at all times on any municipal solid waste transportation vehicle operating under the license; and
    2. Is valid for a period specified by the cabinet not to exceed three (3) years from the date of issuance.
  8. Each application for a license to operate a municipal solid waste transportation vehicle or vehicles shall be submitted with a registration fee equal to the product of ten dollars ($10) per year multiplied by the number of municipal solid waste transportation vehicles to be operated in the Commonwealth by the applicant. A license shall be amended annually if the number of municipal solid waste transportation vehicles operated by the applicant increases. The cabinet may promulgate by regulation a schedule for the annual amendment of municipal solid waste transportation licenses to add vehicles covered. Additional vehicles acquired or leased by the licensee after the beginning of the licensing year established by the Transportation Cabinet may be operated under an existing license, without amendment, until the annual amendment date specified by the cabinet. However, the licensee shall obtain a vehicle specific copy of the license from the Transportation Cabinet prior to using the vehicle in Kentucky to transport municipal solid waste. The registration fee for additional vehicles shall be prorated according to the amount of time remaining in the license period as of the amendment date.
  9. The cabinet shall promulgate regulations to implement this section within one hundred eighty (180) days after February 26, 1991. The regulations shall include a procedure to allow the licensing of a vehicle in an emergency and shall require the cabinet to issue licenses and vehicle tags within thirty (30) days of receipt of an application. No municipal solid waste transportation vehicle shall be required to obtain a license until at least ninety (90) days after the effective date of regulations promulgated by the cabinet.
  10. Within ninety (90) days after February 26, 1991, all municipal solid waste transportation vehicles shall display a placard which indicates that the vehicle is transporting municipal solid waste. A vehicle shall be in compliance with this subsection (10) if the placard has the words “SOLID WASTE” clearly printed in English and is clearly displayed or printed on the cab, container, or rear of the vehicle.
  11. This section shall not apply to a vehicle, or its operator, owned and used by a generator hauling waste generated by the generator to a municipal solid waste disposal facility or to a vehicle or person operating the vehicle which is hauling waste of a waste generator disposing of waste in its own solid waste facility.
  12. The registration fees generated by this section shall be placed in a trust and agency account and used exclusively by the Transportation Cabinet for the administration and enforcement of this section.

History. Enact. Acts 1991 (1st Ex. Sess.), ch. 12, § 22, effective February 26, 1991.

Research References and Practice Aids

Kentucky Law Journal.

Cox, What May States Do About Out-of-State Waste in Light of Recent Supreme Court Decisions Applying the Dormant Commerce Clause? Kentucky As Case Study in the Waste Wars, 83 Ky. L.J. 551 (1994-95).

Capital City Airport

174.500. Definitions for KRS 174.500 to 174.510.

As used in KRS 174.500 to 174.510 , unless the context otherwise requires:

  1. “Department” means the Department of Aviation;
  2. “State aircraft” means aircraft owned by the Commonwealth, leased by the Commonwealth, or otherwise under the control of the Commonwealth and administratively assigned to the department. It shall also include air charters by the department. However, this shall not include or apply to any and all aircraft assigned to, owned, leased, operated, or controlled by the Department of Kentucky State Police, or otherwise under the control or direction of the Department of Kentucky State Police. The operation, maintenance, scheduling, and care of Department of Kentucky State Police aircraft shall not be included under or affected by KRS 174.500 to 174.510 ; and
  3. “Official business” means any activity involving travel in a state aircraft if the activity is reasonably required, expected, or appropriate, considering the nature of the using public official’s job responsibilities. The activities shall include but not be limited to attendance by officials at nonpartisan ceremonial functions and events where their appearance is normally expected by virtue of their office or where official representation of the Commonwealth is otherwise appropriate, and to nonpolitical flights by the Governor and members of his immediate family when accompanying or representing him.

History. Enact. Acts 1998, ch. 605, § 1, effective July 15, 1998; 2007, ch. 85, § 120, effective June 26, 2007; repealed, reenact., and amend. Acts 2009, ch. 13, § 16, effective June 25, 2009.

Compiler’s Notes.

This section was formerly compiled as KRS 36.400 .

174.502. Policy development, supervision, management, and administration of Capital City Airport Division.

  1. The commissioner of the department shall be responsible for overall policy development and supervision of the Capital City Airport Division.
  2. A division director shall head the Capital City Airport Division within the Department of Aviation.

History. Enact. Acts 1998, ch. 605, § 1, effective July 15, 1998; 2007, ch. 85, § 120, effective June 26, 2007; repealed, reenact, and amend Acts 2009, ch. 13, § 17, effective June 25, 2009.

Compiler’s Notes.

This section was formerly compiled as KRS 36.405 .

174.504. Functions of Capital City Airport Division — Authority for administrative regulations.

  1. The functions of the Capital City Airport Division shall be to:
    1. Manage and operate the Capital City Airport;
    2. Oversee the maintenance and care of all state aircraft;
    3. Control the scheduling and operational use of state aircraft, including air charters; and
    4. Collect from using agencies and officers the costs of operating state aircraft, including air charters.
  2. Subject to the approval of the department and in accordance with applicable state and federal statutes and regulations, the Capital City Airport Division shall promulgate administrative regulations under KRS Chapter 13A to:
    1. Establish user fees to be paid by users of the services and facilities of the Capital City Airport for charges including, but not limited to, hangar fees, tie-down fees, fuel, and aircraft supplies; and
    2. Establish fees for the usage of state aircraft.

History. Enact. Acts 1998, ch. 605, § 3, effective July 15, 1998; repealed, reenact. and amend., Acts 2009, ch. 13, § 18, effective June 25, 2009.

Compiler’s Notes.

This section was formerly compiled as KRS 36.410 .

174.506. Use of state aircraft.

  1. Except as provided in subsection (2) of this section, state aircraft, including air charters, shall be used only for official business.
  2. State aircraft shall not be used for personal business, except when the Governor or Lieutenant Governor, for reasons of security, protocol, ceremonial functions, or overall demands of time, require travel considerations not accorded to other officials. In recognition of these realities, flights that may be solely for personal business, or partly for official business or partly for personal business, may be scheduled for the Governor or the Lieutenant Governor and their immediate families.
    1. The cost of flights scheduled solely for personal business of the Governor or Lieutenant Governor shall be charged to that officer in accordance with the rate schedule set forth in the administrative regulations authorized by KRS 174.504 .
    2. If a particular flight is in part official business and part personal business, the Governor or the Lieutenant Governor shall make a reasonable allocation of the flight time between official and personal business and be responsible for paying with nonstate funds to the Capital City Airport Division the charge for the part of the flight that is allocable to personal business. The rate charged shall be calculated using costs that would be considered in a rate developed by a commercial air charter company. In these cases, the allocation made and the basis for the allocation shall be indicated on the aircraft request form.
  3. Constitutional officers, other elected state officials, members of the General Assembly, officers and employees of the cabinets, departments, and agencies of state government, officers and employees of other governmental units, and other persons traveling under the auspices of a state agency or in connection with state business deemed desirable by an agency head, including dependents of state officials, and news media representatives and other persons having an interest in the official purpose of the trip may be authorized to use state aircraft. Charges for travel in state aircraft shall be paid by the requesting state agency in accordance with the rate schedule established in administrative regulations authorized by KRS 174.504 .

History. Enact. Acts 1998, ch. 605, § 4, effective July 15, 1998; repealed, reenact, and amend, Acts 2009, ch. 13, § 19, effective June 25, 2009.

Compiler’s Notes.

This section was formerly compiled as KRS 36.415 .

174.508. Approval of requests for use of state aircraft.

  1. All requests for use of state aircraft shall be approved in advance by the:
    1. Constitutional officer;
    2. Program cabinet secretary or his designee in writing;
    3. For the judicial branch, the Chief Justice of the Supreme Court or the director of the Administrative Office of the Courts; or
    4. For the legislative branch, the co-chairs of the Legislative Research Commission or the director of the Legislative Research Commission.
  2. Verbal requests for state aircraft transportation may be honored. However, all requests for state aircraft shall be provided in writing to the Capital City Airport Division within five (5) working days of the date of the flight.
  3. Approving officials shall be responsible for determining that a trip is for official business, that use of state aircraft is the most appropriate means of transportation, and that the proposed passenger complement conforms to the requirements of KRS 174.506(3). In determining the passenger complement, requesting agencies shall weigh the benefit to the agency of the inclusion of additional passengers against the increased costs that might be incurred if a larger aircraft is required to accommodate additional passengers on a trip.
  4. All requests for use of state aircraft shall be submitted on a form prescribed by the Capital City Airport Division and shall contain at a minimum the following information:
    1. Cabinet or agency name;
    2. Department name with appropriate billing account number;
    3. Purpose of the trip;
    4. Destination, including any planned stopovers and the reason for them;
    5. Names of all passengers on the flight; and
    6. Identification of any percentage of the flight that is for personal business in cases of the Governor or Lieutenant Governor as allowed under KRS 174.506 .

History. Enact. Acts 1998, ch. 605, § 5, effective July 15, 1998; repealed, reenact, and amend, Acts 2009, ch. 13, § 20, effective June 25, 2009.

Compiler's Notes.

This section was formerly compiled as KRS 36.420 .

2022-2024 Budget Reference.

2022-2024 Budget Reference.

See State/Executive Branch Budget, 2022 Ky. Acts ch. 199, Pt. III, 34 at 1752.

174.510. Recordkeeping for Capital City Airport Division and use of state aircraft.

  1. The Capital City Airport Division shall arrange for all trips and maintain flight cards, passenger manifests, payment documents, and interaccount bills pertaining to each flight.
  2. Pilots for all state agencies shall maintain a flight manifest for all flights which shall include the passengers’ names, information pertaining to points of origin and destination, and any side trips or stopovers for each flight.
  3. The Capital City Airport Division shall maintain original manifests for all trips using state aircraft.
  4. Originals of requests for the use of state aircraft shall be kept by the Capital City Airport Division, with the following exceptions:
    1. The Governor and Lieutenant Governor shall maintain originals of all requests for the use of state aircraft made by their respective offices; and
    2. In cases where the secretary of the Cabinet for Economic Development has certified in an aircraft request that disclosure of the identities of passengers or the purpose of a trip will violate needs for confidentiality required for economic development efforts, the secretary of the Cabinet for Economic Development shall maintain complete original records of the request in his office.

History. Enact. Acts 1998, ch. 605, § 6, effective July 15, 1998; repealed, reenact, and amend, Acts 2009, ch. 13, § 21, effective June 25, 2009.

Compiler’s Notes.

This section was formerly compiled as KRS 36.425 .

Penalties

174.990. Penalties.

  1. Any person who willfully hauls, transports, or causes to be transported any hazardous material into, out of, within, or through the Commonwealth in violation of the provisions of KRS 174.400 to 174.425 , or contrary to an order, or regulation issued or promulgated under KRS 174.400 to 174.425 , shall be fined not less than two hundred fifty dollars ($250) nor more than twenty-five thousand dollars ($25,000), for each day of violation.
  2. Any person who operates a vehicle which transports municipal solid waste in violation of KRS 174.450 and administrative regulations promulgated by the cabinet pursuant to KRS 174.450 shall be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) for each day of violation.

History. Enact. Acts 1980, ch. 384, § 10, effective July 15, 1980; 1992, ch. 51, § 1, effective July 14, 1992; 1994, ch. 99, § 6, effective July 15, 1994.

CHAPTER 175 Turnpike Authority

175.005. Declaration of legislative policy. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 1, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.010. Definitions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 2, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.020. Creation of Highway Authority, etc. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 3, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.030. Initial appointments; chairman; meetings, etc. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 4, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.040. Executive secretary. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 5, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.050. Treasurer. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 6, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.060. Officers, agents and employes; transfer from other state agencies. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 7, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.070. Personal interest in contracts or sales prohibited. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 8, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.080. Purposes and power of Authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 9, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.090. Authority may exercise powers of Department of Highways; limitations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 10, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.100. Acquisition of property, etc. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 11, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.110. Grade separations, construction, etc. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 12, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.120. Leases and sales with Department of Highways, etc. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 13, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.130. Payment of rentals by department. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 14, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.140. Right to regulate installations owned by public or private utilities, etc. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 15, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.150. Rates, rentals and charges for use of facilities, etc. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 16, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.160. Authority’s power to deal with Federal agencies. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 17, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.170. Power to incur debt and provide for payment thereof. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 18, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.180. Issuance of bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 19, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.190. Bonds not to be debt of state, etc. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 20, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.200. Remedies of bondholders. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 21, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.210. Exemption from taxation. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 22, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.220. Investment of funds in bonds issued by Authority; deposit of bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 23, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.230. Refunding bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 24, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.240. Procedure for designating receipts as trust funds, etc. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 25, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.250. Fiscal report; annual reports. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 26, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.260. Audits. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 27, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.270. Covenant of Commonwealth for protection of bondholders. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 28, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.280. Application of traffic laws to Authority’s projects, etc. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 29, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.290. Exemption of Authority from provisions of KRS Chapters 12, 42, 45, and 56. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 30, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.300. Construction of chapter. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 31, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.310. Advancement of funds to Authority for initial expenses. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 32, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.320. Expenditures for studies and plans. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1954, ch. 39, § 33, effective March 22, 1954) was declared unconstitutional in Curlin v. Wetherby, 275 S.W.2d 934 (Ky. App. 1955) and was repealed by Acts 1966, ch. 255, § 283.

175.410. Definitions.

As used in this chapter, the following words shall have the following respective meanings, unless another or different meaning or intent shall be clearly indicated by the context:

  1. The word “authority” shall mean the Turnpike Authority of Kentucky;
  2. The word “department” shall mean the Department of Highways, or, if said department shall be abolished, the bureau, board, body or commission succeeding to the principal functions thereof or to whom the powers given by KRS 177.390 to 177.570 to the department shall be given by law;
  3. The word “project” or the words “turnpike project” shall mean any express highway or superhighway or such part or parts thereof as may be constructed by the authority under the provisions of this chapter, including all bridges, tunnels, overpasses, underpasses, interchanges, entrance plazas, approaches, connecting highways, tollhouses, service stations, garages, restaurants, and administration, storage and other buildings and facilities which the authority may deem necessary for the operation of such project, together with all property, rights, easements and interests which may be acquired by the authority or by the department for the construction or the operation of such project;
  4. The word “cost” as applied to a turnpike project shall embrace the cost of construction, the cost of the acquisition of all land, rights of way, property, rights, easements and interests acquired for such construction, the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which such buildings or structures may be moved, the cost of all machinery and equipment, financing charges, provision for working capital in such amount as the authority shall determine to be reasonable, interest prior to and during construction and, if deemed advisable by the authority, for a period not exceeding two (2) years after completion of construction, cost of traffic estimates, engineering and legal expenses, cost of plans, specifications, surveys, estimates of cost and of revenues, other expenses as may be necessary or incident to determining the feasibility or practicability of constructing any such project, administrative expenses, and such other expense as may be necessary or incident to the construction of the project, the financing of such construction and the placing of the project in operation. Any obligation or expense hereafter incurred for a turnpike project by the authority or by the department on behalf of the authority, and any obligation or expense heretofore incurred by the department for any such turnpike project, for traffic surveys, borings, preparation of plans and specifications, engineering, and other services in connection with the construction of a project may be regarded as a part of the cost of such project and may, if advanced by the department, be reimbursed to it out of the proceeds of turnpike revenue bonds of the authority;
  5. The words “public highways” shall include all public highways, roads and streets in the Commonwealth, whether maintained by the Commonwealth or by any county, city, town or other political subdivision or agency;
  6. The word “bonds” or the words “revenue bonds” or “turnpike revenue bonds” shall mean revenue bonds or revenue refunding bonds of the authority issued under the provisions of this chapter;
  7. The word “owner” shall include all individuals, copartnerships, associations, or corporations having any title or interest in any property, rights, easements or interests authorized by this chapter to be acquired;
  8. The word “agreement” shall mean a written agreement, made by and between the authority and the department under the provisions of KRS 175.460 , providing for the financing and constructing of one (1) or more turnpike projects by the authority;
  9. The word “lease” shall mean a written lease made by the authority as lessor and the department as lessee under the provisions of KRS 175.470 , relating to one (1) or more turnpike projects financed and constructed by the authority;
  10. The word “biennium” or the words “biennial period” or “biennial term” shall mean the two (2) year fiscal period of the Commonwealth, commencing on July 1 in each even-numbered year and ending on June 30 in the next ensuing even-numbered year.

History. Enact. Acts 1960, ch. 173, § 3, effective March 25, 1960.

NOTES TO DECISIONS

1.Powers.

Turnpike authority, a special corporation, can have no power that the general assembly could not authorize to be exercised by the state through its highway department. Turnpike Authority of Kentucky v. Wall, 336 S.W.2d 551, 1960 Ky. LEXIS 331 ( Ky. 1960 ).

2.Amenity to Suit in Diversity Cases.

The Kentucky turnpike authority could not be considered a citizen of the state in order to permit diversity jurisdiction in a suit by an Indiana corporation since the nature of the authority’s creation and operation embodied in this chapter made the state of Kentucky the real party in interest. Edgar H. Hughes Co. v. Turnpike Authority of Kentucky, 353 F. Supp. 1105, 1973 U.S. Dist. LEXIS 15057 (E.D. Ky. 1973 ).

Research References and Practice Aids

Kentucky Law Journal.

Martin, Administrative Action for Efficient Debt Management: The Kentucky Case, 49 Ky. L.J. 505 (1961).

Northern Kentucky Law Review.

Notes, Insurance — Medical Malpractice — Uncoupling the Freight Train: The Kentucky Medical Malpractice Act — McGuffey v. Hall, 557 S.W.2d 401, 1977 Ky. LEXIS 533 ( Ky. 1977 ), 5 N. Ky. L. Rev. 123 (1978).

175.420. Legislative intent.

This chapter is intended to supplement KRS 177.390 to 177.570 by providing an additional and alternative method for the provision and financing of turnpikes and appurtenant facilities to the end that such projects may be undertaken in such manner as may best be calculated to expedite relief from hazardous and congested traffic conditions on the highways in the Commonwealth and to provide acceptable avenues of commerce and intercommunication by vehicular traffic among the several sections of the Commonwealth.

History. Enact. Acts 1960, ch. 173, § 1, effective March 25, 1960.

175.425. Purpose and status of turnpike authority.

The Turnpike Authority of Kentucky is created solely to perform essential governmental functions and to serve the public purposes of constructing, acquiring, financing and operating turnpike and other road projects for the use, safety, convenience and general welfare of the traveling public. In accomplishing such public purposes, the Turnpike Authority of Kentucky shall be and constitute a de jure municipal corporation and political subdivision of the Commonwealth of Kentucky.

History. Enact. Acts 1976, ch. 202, § 1.

NOTES TO DECISIONS

Cited:

H. E. Cummins & Sons Constr. Co. v. Turnpike Authority, 562 S.W.2d 651, 1977 Ky. App. LEXIS 899 (Ky. Ct. App. 1977).

175.430. Turnpike Authority of Kentucky — Composition — Meetings — Quorum — Corporate character.

  1. The Governor, the Lieutenant Governor, the secretary of finance and administration, the State Highway Engineer, the secretary of economic development, the secretary of transportation, and the Attorney General, and their respective successors in office, shall be a body corporate and politic constituting a public corporation and governmental agency and instrumentality of the Commonwealth by the name of “The Turnpike Authority of Kentucky,” with perpetual succession and with power in that name to contract and be contracted with, sue and be sued, have and use a corporate seal, and exercise, in addition to the powers and functions specifically stated in this chapter, all of the usual powers of private corporations to the extent that the same are not inconsistent with specifically enumerated powers.
  2. The members of the authority shall receive no compensation for their services in that capacity, but shall be entitled to reimbursement for all reasonable expenses necessarily incurred in connection with performance of their duties and functions as such members.
  3. Four (4) members of the authority shall constitute a quorum for the transaction of business, and in the absence of a quorum, one (1) or more members may adjourn from time to time until a quorum is convened. Each member may designate in writing a proxy for the transaction of business. Within ninety (90) days from March 25, 1960, the authority shall convene and organize. The Governor shall, by virtue of his office, be the chairman of the authority and the Lieutenant Governor shall in like manner be the vice chairman. The authority shall elect a secretary and a treasurer who shall not be members of the authority, each of whom shall serve at the pleasure of the authority and shall receive such compensation as may be determined by the authority with approval of the secretary of the Personnel Cabinet to be paid from the budgeted funds of the cabinet. The Treasurer shall give bond to the authority and the Commonwealth conditioned upon his faithful accounting for all funds coming into his custody from time to time, the same to be in such amount as the authority may prescribe, with corporate surety given by a surety company qualified to do business in the Commonwealth, premium therefor to be paid by the authority. The authority shall establish and maintain an office in premises which shall be provided for that purpose by the Finance and Administration Cabinet without cost to the authority; and the secretary of the authority shall at all times maintain therein complete records of all of the authority’s actions and proceedings, which shall constitute public records open to inspection at reasonable times.

History. Enact. Acts 1960, ch. 173, § 2, effective March 25, 1960; 1982, ch. 184, § 5, effective July 15, 1982; 1982, ch. 396, § 44, effective July 15, 1982; 1984, ch. 406, § 5, effective July 13, 1984; 1988, ch. 204, § 1, effective April 4, 1988; 1998, ch. 154, § 84, effective July 15, 1998.

NOTES TO DECISIONS

1.Construction.

It is apparent from this section that the Turnpike Authority is an agency of the Commonwealth. H. E. Cummins & Sons Constr. Co. v. Turnpike Authority, 562 S.W.2d 651, 1977 Ky. App. LEXIS 899 (Ky. Ct. App. 1977).

Opinions of Attorney General.

Where the Lieutenant Governor, while serving as a member of the Turnpike Authority of Kentucky by requirement, voted in favor of a turnpike project and his family business subsequently received the fee for selling the performance bond to cover the lowest bidder, the Lieutenant Governor did not violate subsection (6) or (7) of KRS 61.096 (now KRS 45A.340 ). OAG 72-224 (opinion prior to 1974 and 1976 amendments to KRS 61.096 (now KRS 45A.340 )).

A member of the turnpike authority may not send a proxy, with voting power, to meetings of the turnpike authority in the absence of statutory authority granting him such delegating power; the Governor (pursuant to KRS 11.040 ), the Attorney General (pursuant to KRS 15.100(1)), and the secretary of development (pursuant to executive order no. 80-190) can, in writing, designate a proxy to attend the turnpike authority meetings with full voting power. OAG 80-376 .

By executive order no. 80-190, pursuant to KRS 12.025(1) (now repealed), the secretary of development has been added as a member of the turnpike authority, enlarging the membership to six (6), with four (4) members constituting a quorum, and by executive order no. 80-500, pursuant to KRS 12.025(1) (now repealed), the secretary of transportation has been added as a member of the turnpike authority, enlarging the membership to seven (7). OAG 80-376 .

175.440. Authority may undertake turnpike projects pursuant to agreement with department.

In order to provide for the construction of modern express highways or superhighways embodying safety devices (including, when determined by the authority and the department to be feasible and necessary, center division, ample shoulder widths, longsight distances, two (2) or more lanes in each direction and grade separations at intersections with other highways and railroads and other appurtenances), and thereby to facilitate vehicular traffic, remove many of the present handicaps and hazards on the congested highways in the Commonwealth, and promote the agricultural and industrial development of the Commonwealth, the authority is hereby authorized and empowered, under and pursuant to the terms and provisions of a written agreement or agreements with the department as hereinafter provided, to construct, maintain, repair and operate turnpike projects, to lease such projects to the department, and to issue revenue bonds of the authority to finance such projects.

History. Enact. Acts 1960, ch. 173, § 4, effective March 25, 1960.

175.450. General powers of authority as to turnpike projects.

The authority is hereby authorized and empowered:

  1. To construct, reconstruct, maintain, repair, operate, and regulate turnpike projects at such locations within the Commonwealth as may be determined by the authority and the department and provided for in an agreement or agreements;
  2. To acquire sites abutting on any turnpike project, as a part of such project, and to construct or contract for the construction of buildings and appurtenances for service stations, garages, restaurants and other services and to lease the same to parties other than the department for any of such purposes (or, if leases to such parties cannot be made on acceptable terms, to operate or to lease to the department any or all of the same) in such manner and under such terms as may be provided in an agreement;
  3. To issue turnpike revenue bonds of the authority payable solely from the tolls, revenues, rentals and other funds pledged for their payment, for the purpose of paying all or any part of the cost of any one or more turnpike projects, and to refund any of its bonds;
  4. To fix and revise from time to time and charge and collect tolls for transit over each turnpike project constructed by it, except to the extent that such powers are surrendered to the department pursuant to a lease;
  5. To combine for financing purposes any two (2) or more turnpike projects;
  6. To lease as lessor any turnpike project or projects to the department as lessee, pursuant to the terms and provisions of a lease;
  7. To establish and enforce rules and regulations for the use of any turnpike project, except during any period when such powers are provided to be exercised by the department pursuant to a lease;
  8. Without reference to KRS Chapter 56, to acquire and hold in the name of the authority real and personal property in the exercise of its powers and the performance of its functions and duties under this chapter, and to dispose of the same, with the approval of the department;
  9. To designate the locations and establish, limit and control such points of ingress to and egress from each turnpike project as the authority and the department may determine to be necessary or desirable to insure the proper operation and maintenance of such project, and to prohibit entrance to such project from any point or points not so designated;
  10. To make and enter into such contracts and agreements with the department and other parties as may be necessary or incidental to the performance of its duties and the execution of its powers under this chapter;
  11. To employ consulting engineers, attorneys, accountants, construction and financial experts, superintendents, managers, and such other employees and agents as may be necessary in the judgment of the authority, and to fix their compensation;
  12. To receive and accept from the Commonwealth, the department, and any federal agency, grants for or in aid of the construction of any turnpike project, and to receive and accept aid or contributions from any source of either money, property, labor or other things of value, to be held, used and applied only for the purposes for which such grants and contributions may be made;
  13. To expend any funds provided under the authority of this chapter in advertising the facilities and services of a turnpike project or projects to the traveling public; and
  14. To do all acts and things necessary or convenient to carry out the powers expressly granted in this chapter.

History. Enact. Acts 1960, ch. 173, § 5, effective March 25, 1960.

NOTES TO DECISIONS

Cited:

Edgar H. Hughes Co. v. Turnpike Authority of Kentucky, 353 F. Supp. 1105, 1973 U.S. Dist. LEXIS 15057 (E.D. Ky. 1973 ).

Opinions of Attorney General.

Subdivision (9) of this section explicitly provides that the turnpike authority may designate the locations and establish, limit and control such points of ingress to and egress from each turnpike project “as the authority and the bureau (department of highways) may determine to be necessary.” It is obvious that subdivision (9) was designed to utilize the best thinking and planning of the turnpike authority and the administrative and technical engineering talent of the department of highways; thus, a view that the turnpike authority enjoys a basic autonomy in this context is incorrect and unrealistic. OAG 83-118 .

Under subdivision (9) of this section, the turnpike authority, acting in concert with the department of highways, has the authority to grant additional access points on a turnpike. However, such a decision, as a sound exercise of discretion, must be on a case-by-case basis, and be based upon the general public’s best interest in terms of peace, health, safety, convenience, and general and economic welfare; such a decision for additional access points must be subject to available funding of construction and maintenance, and must in no way compromise or lessen in any way the rights of bondholders involved in the original turnpike construction. OAG 83-118 .

175.460. Contents of agreement between authority and department.

In the event that the authority and the department shall deem it suitable, feasible, necessary and expedient that any turnpike project or projects be financed or refinanced by the authority and constructed by the authority or by the department on behalf of the authority under this chapter, the authority and the department are empowered to make one or more written agreements with regard thereto in which, as to each such project, the parties may include provisions as to any one or more of the following:

  1. Identify the turnpike project to be financed by the authority, setting forth in general terms, subject to necessary revision from time to time as the work progresses, the principal features including geographic location, terminal points, width of right of way, number of lanes in each direction, width of traffic lanes, width of shoulders, whether there shall be center division, location and nature of access points, tunnels, bridges, overpasses, underpasses, interchanges, entrance plazas, approaches, connecting highways, tollhouses, service stations, garages, restaurants and other desired appurtenances;
  2. Set forth what portions, if any, of the cost of the project have been or shall thereafter be contributed by the department from the funds and other resources available to it during the then current biennium and not previously obligated, which may include engineering and any other services performed by the staff of the department; and that the department, if deemed desirable, shall supervise construction on behalf of the authority upon terms which are mutually acceptable;
  3. Set forth what portions of the cost of the project shall or may be paid from the proceeds of bonds issued by the authority under this chapter;
  4. Set forth any agreements of the authority and the department with regard to planning, design, acquisition of property, soliciting construction bids, awarding construction contracts, issuing of work orders, and such other steps as may be necessary or incidental to the construction of the project, and authorizing and selling bonds for the project;
  5. Agree that the project is intended to be and from and after the completion thereof will continuously constitute a link between parts of the highway system of the Commonwealth and will always be open to public travel, subject to exaction of such tolls as may be prescribed from time to time whenever and so long as the exaction of tolls may be authorized by law or required by the proceedings authorizing the issuance of the bonds or the trust indenture securing the same;
  6. Agree that from and after the completion of the project the department will continuously pay all or any part of the cost of repairing, maintaining and operating the project as a public highway provided for the use of the Commonwealth, equitably belonging to the Commonwealth, and intended for ultimate unencumbered ownership by the Commonwealth;
  7. Agree that upon the happening of stated events and the performance of stated conditions not inconsistent with law, the authority shall convey the project to the Commonwealth;
  8. Set forth generally or in detail any of the terms and provisions of any lease proposed to be entered into by and between the authority and the department under the provisions of KRS 175.470 ;
  9. Agree that upon determination of the amount of bonds to be issued by the authority for the project and the interest rate or rates the bonds are to bear, and prior to the delivery of any bonds to the purchaser thereof, the rental to be paid during the term of the lease and each biennial term for which the lease may be renewed shall be established according to a method of computation set forth therein and in the proposed lease, and that the authority and the department, each by authorized persons, shall execute such lease and file the original or a signed counterpart thereof in the offices of the authority, the department and the Secretary of State of the Commonwealth; and
  10. Agree that the department shall set aside and, except as may be provided in any lease entered into under the provisions of KRS 175.470 , pay over to the authority as revenues of the turnpike all motor fuel taxes collected by the department on gasoline and other motor fuels consumed on such turnpike, except the two-sevenths (2/7) of said motor fuel taxes provided by KRS 138.220 to be set aside for the construction, reconstruction and maintenance of rural and secondary roads.

History. Enact. Acts 1960, ch. 173, § 6, effective March 25, 1960.

NOTES TO DECISIONS

Cited:

Edgar H. Hughes Co. v. Turnpike Authority of Kentucky, 353 F. Supp. 1105, 1973 U.S. Dist. LEXIS 15057 (E.D. Ky. 1973 ).

175.470. Leases between authority and department authorized — Contents.

The authority and the department are authorized and empowered to enter into a lease or leases with respect to any turnpike project or projects pursuant to any agreement or agreements made under the provisions of KRS 175.460 . Any lease may contain, in substance, any of the provisions set forth in this section and such other provisions not inconsistent herewith as the authority and the department may deem appropriate and desirable:

  1. That the lease is for the remainder of the biennial period in which it is dated and executed, and is renewable at the option of the department for the succeeding biennial period, one (1) at a time, until the final maturity date of the bond issue to which the lease is related;
  2. That as to the cost of maintaining, repairing and operating the project, and not otherwise, the department is contractually bound not only for the remainder of the biennial period in which the lease is dated and executed, but for the entire period of years until the final maturity of such bonds;
  3. That with respect to the biennial period in which the lease is dated and executed, the department shall otherwise be firmly bound only (a) to contribute to the authority such portions, if any, of the cost of the project as the agreement prescribes shall be paid by the department, and (b) to pay to the authority the rental prescribed for such biennium;
  4. That if the department shall fully perform all such obligations during such initial term of the lease, it shall have an exclusive option to renew the lease at the time and in the manner prescribed for the ensuing biennium, effective on the first day thereof; that the department shall not be or become in any way obligated to pay the rental stipulated for such biennium unless the lease be so renewed; and that the department shall, upon any such renewal, be firmly bound to pay to the authority the rental stipulated for such biennium as a general obligation of the department to be paid not only from the revenues of the project but also from any other available funds of the department not required by law or by previous binding contract to be devoted to some other purpose;
  5. In like manner and subject to the same conditions and provisions as are set forth in subsection (4) above, if the department shall in such first ensuing biennium fully perform all its obligations and pay to the authority the rental stipulated for such biennium, the department shall have another exclusive option to renew such lease for another biennium; and so on for successive biennial terms until the final biennium for which the lease may be renewed;
  6. That each such option of the department to renew the lease for a succeeding biennial term may be exercised at any time after the adjournment of the session of the General Assembly at which appropriations shall have been made for the operation of the state government for such succeeding biennial term, by so notifying the authority in writing signed by the commissioner of highways and delivered in the office of the authority to any officer thereof; provided, however, that such option shall be deemed automatically exercised, and the lease automatically renewed for the succeeding biennium, effective on the first day thereof, unless a written notice of the department’s election not to renew shall have been delivered in the office of the authority, to an officer thereof, before the close of business on the last working day in April immediately preceding the beginning of such succeeding biennium;
  7. That so long as the lease is renewed from time to time and the department fully performs all its obligations as lessee, including payment of the rental stipulated in the lease, (a) the revenues of the project shall be collected, segregated, distributed, deposited, secured, disbursed and accounted for in strict conformity with the proceedings and trust indenture of the authority, and the aggregate of such revenues properly accounted for and deposited pursuant to said proceedings and trust indenture shall, if and to the extent provided in the lease, be a credit against the department’s rental or other obligations for the then current biennial term under the lease, and (b) any motor fuel taxes and surtaxes collected by the Commonwealth on gasoline and other motor fuels consumed on the project and set aside pursuant to an agreement shall be applied as provided in said proceedings and trust indenture and shall, if and to the extent provided in the lease, be a credit against the department’s rental or other obligations for the then current biennial term under the lease; and if such revenues and motor fuel taxes so provided in the lease to be a credit against the rental or other obligations of the department under the lease shall at any time appear to be insufficient to discharge such obligations in full when due and payable, the department shall estimate the rate of deficiency on a semiannual basis conforming to the interest payment dates of the bonds of the authority to which the lease is related and shall pay the amount of such estimated deficiency to the authority in equal monthly payments from any other available funds of the department not required by law or previous binding contract to be devoted to other purposes, subject to adjustment from estimated deficiencies to actual deficiencies at least thirty (30) days before each such semiannual interest payment date; provided, however, that during the department’s continuance in good standing in this respect the department shall have the right to establish, increase, decrease, suspend, or abolish the exaction of tolls, rates and charges for vehicular travel upon the project, but during any period when the department may elect to suspend or abolish the exaction of such tolls, rates and charges, it shall nevertheless continue to maintain in good operating condition, on a stand-by basis, all tollhouses, tollgates, toll-registering and toll-collecting equipment, signs, lights, fences, and other installations and facilities incident to, or used or useful in connection with, the exaction and collection of tolls, rates, and charges, in order that the same may be resumed at any time, without delay;
  8. That in the event the lease is not renewed in accordance with its terms, or in the event it is renewed and the department shall fail to perform in full its obligations thereunder, then (a) the department shall immediately be liable for the balance of the rental stipulated for the then current biennial term for which the lease had previously been renewed, without requirement of notice or other action on the part of the authority, and shall forthwith pay such balance to the authority upon demand, (b) the department shall forfeit its then current option to renew the lease for the ensuing biennial term and its options for all future terms, (c) the right to establish, increase, decrease, suspend, abolish the exaction of, or resume tolls, rates, and charges for vehicular travel on the project shall wholly pass from the department to the authority, and (d) all motor fuel taxes collected by the Commonwealth on gasoline and other motor fuels consumed on the project, except the two-sevenths (2/7) of said motor fuel taxes provided by KRS 138.220 to be set aside for the construction, reconstruction, and maintenance of rural and secondary roads, shall thereafter be set aside and paid over to the authority as revenues of the project for deposit in the sinking fund or funds pledged to the payment of the bonds of the authority; and
  9. In the event of the department’s forfeiture of rights as provided in subsection (8) of this section, the same may not be reassumed, nor the department restored to good standing with options to renew the lease from time to time, except in such manner as shall not be inconsistent with the rights of the holders of outstanding bonds.

History. Enact. Acts 1960, ch. 173, § 7, effective March 25, 1960.

NOTES TO DECISIONS

1.Renewal.

To the extent that highway department is authorized to obligate all or any part of its previously unencumbered revenues anticipated for the biennium there is no question of validity but should a renewal of the lease, however effected, commit the general revenues of the department for more funds than can be properly anticipated during the period of the extension it would be a void renewal, for it would attempt more than the legislature itself has a right to sanction. Turnpike Authority of Kentucky v. Wall, 336 S.W.2d 551, 1960 Ky. LEXIS 331 ( Ky. 1960 ).

Fact renewal of lease is automatic in the absence of affirmative action to terminate does not make the lease in legal effect a long-term obligation. Turnpike Authority of Kentucky v. Wall, 336 S.W.2d 551, 1960 Ky. LEXIS 331 ( Ky. 1960 ).

Option to renew turnpike authority lease to be exercised by highway department before the beginning of the biennium for which it is effective does not violate constitutional principle by committing general revenues of the highway department for more funds than could be anticipated during period of extension. Turnpike Authority of Kentucky v. Wall, 336 S.W.2d 551, 1960 Ky. LEXIS 331 ( Ky. 1960 ).

Cited:

Edgar H. Hughes Co. v. Turnpike Authority of Kentucky, 353 F. Supp. 1105, 1973 U.S. Dist. LEXIS 15057 (E.D. Ky. 1973 ).

175.480. Policing of projects.

Every project of the authority shall be open to regular policing by the Department of Kentucky State Police as in the case of other public highways of the Commonwealth.

History. Enact. Acts 1960, ch. 173, § 8, effective March 25, 1960; 2007, ch. 85, § 183, effective June 26, 2007.

Opinions of Attorney General.

Local peace officers have concurrent jurisdiction with the state police to enforce all laws of the Commonwealth on the turnpikes. OAG 75-210 .

175.490. Grade separations — Relocation or vacation of existing highways — Rights of access — Regulations as to public utility facilities on or along turnpike projects.

  1. The authority shall have power to construct grade separations at intersections of any turnpike project or projects with public highways and to change and adjust the lines and grades of such highways so as to accommodate the same to the design of such grade separation. The cost of such grade separations and any damage incurred in changing and adjusting the lines and grades of highways shall be a part of the cost of such turnpike project.
  2. If the authority shall find it necessary to change the location or grade of any portion of any public highway, it shall cause the same to be reconstructed at such location as the authority and the department shall deem most favorable and of substantially the same type and in as good condition as the original highway. The cost of such reconstruction and any damage incurred in changing the location or grade of any such highway shall be a part of the cost of such turnpike project.
  3. Any public highway affected by the construction of any turnpike project may be vacated or relocated by the authority, with the approval of the department, in the manner now provided by law for the vacation or relocation of public roads and any damages awarded on account thereof shall be a part of the cost of such project.
  4. The authority and its authorized agents and employees may enter upon any lands, waters and premises in the Commonwealth for the purpose of making such surveys, soundings, drillings and examinations as they may deem necessary or convenient for the purpose of this chapter, and such entry shall not be deemed a trespass, nor shall an entry for such purposes be deemed an entry under any condemnation proceedings which may be then pending. The authority shall make reimbursement to the owners for any actual damage resulting to such lands, waters and premises as a result of such activities on behalf of the authority, and the same shall be a part of the cost of such project.
  5. The authority shall have power to make reasonable regulations for the installation, construction, maintenance, repair, renewal, relocation and removal of tracks, pipes, mains, conduits, cables, wires, towers, poles and other equipment and appliances (herein called “public utility facilities”) of any public utility in, on, along, over or under any turnpike project. Whenever the authority shall determine that it is necessary that any such public utility facilities which now are, or hereafter may be, located in, on, along, over or under any turnpike project should be relocated in such turnpike project, or should be removed from such turnpike project, the public utility owning or operating such facilities shall relocate or remove the same in accordance with the order of the authority; provided, however, that the cost and expense of such relocation or removal, including the cost of installing such facilities in a new location or new locations, and the cost of any lands, or any rights or interests in lands, and any other rights, acquired to accomplish such relocation or removal, shall be a part of the cost of such turnpike project. In case of any such relocation or removal of facilities, the public utility owning or operating the same, its successors or assigns, may maintain and operate such facilities, with the necessary appurtenances, in the new location or new locations, for as long a period, and upon the same terms and conditions, as it had the right to maintain and operate such facilities in their former location or locations. No utility shall have the privilege of establishing its lines or properties within the right of way of a turnpike which has been constructed or is owned, maintained or operated by the authority, except upon the conditions and terms prescribed by the authority; however, a utility shall be permitted to connect its lines with service stations, garages, restaurants and other installations permitted by the authority to exist upon the right of way of the turnpike.
  6. Costs and expenses incurred by the authority as permitted by subsections (1), (2), (3), (4) and (5) of this section may, as provided in the applicable agreement or lease, (a) be paid by the authority from the proceeds of revenue bonds issued by it for financing the turnpike project or projects, or (b) be paid by the department from available funds without reimbursement, or (c) be advanced by the department and reimbursed to it from the proceeds of bonds issued for the project or projects under this chapter.
  7. The Commonwealth hereby consents to the use of all lands owned by it, including lands lying under water, which are deemed by the authority to be necessary for the construction or operation of any turnpike project.

History. Enact. Acts 1960, ch. 173, § 9, effective March 25, 1960.

175.500. Turnpike revenue bonds of the authority.

  1. The authority is authorized to provide, at one (1) time or from time to time, for the issuance of its turnpike revenue bonds for the purpose of paying all or any part of the cost of any one (1) or more turnpike projects undertaken pursuant to an agreement and lease. The principal of and the interest on the bonds shall be payable solely from the funds provided for the payment. The bonds of any issue may be in one (1) or more series and any one (1) or more series may enjoy equal or subordinate status with respect to the pledge of funds from which they are payable, shall be dated, shall bear interest at a rate or rates or method of determining rates, shall mature at a time or times not exceeding forty (40) years from their date or dates, all as may be provided by the authority, and may be made redeemable before maturity, at the option of the authority, at a price or prices and under terms and conditions as may be fixed by the authority prior to the issuance of the bonds. The authority shall determine the form of the bonds, including any interest coupons to be attached to the bonds, and shall fix the denomination or denominations of the bonds and the place or places for payment of principal and interest, which may be at any bank or trust company within or without the Commonwealth. The bonds shall be signed by the facsimile signature of the chairman of the authority, and the seal of the authority or a facsimile of the seal shall be affixed to the bonds and attested by the manual signature of the secretary of the authority, and any coupons attached to the bonds shall bear the facsimile signature of the chairman of the authority. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until delivery of the bonds. All bonds issued under the provisions of this chapter shall have and are declared to have all the qualities and incidents of negotiable instruments under the negotiable instruments law of the Commonwealth. The bonds may be issued in coupon or in registered form, or both, as the authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest. The authority may sell the bonds in a manner, either at public or private sale, and for a price as it may determine will best effect the purposes of this chapter.
  2. The proceeds of the bonds of each issue shall be used solely for the payment of the cost of the turnpike project or projects for which the bonds shall have been issued, and shall be disbursed in a manner and under the restrictions, if any, as the authority may provide in the proceedings authorizing the issuance of the bonds or in the trust indenture securing the bonds. If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than the cost, additional bonds may be issued to provide the amount of the deficit, and, unless otherwise provided in the proceedings authorizing the issuance of the bonds or in the trust indenture securing the bonds, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued. If the proceeds of the bonds of any issue shall exceed the cost, the surplus shall be deposited to the credit of the sinking fund or funds for the bonds or any account or accounts as the authority shall have provided in the proceedings or trust indenture authorizing and securing the bonds.
  3. Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds shall have been executed and are available for delivery. The authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds may be issued under the provisions of this chapter without obtaining the consent of any department, division, commission, board, bureau, or agency of the Commonwealth, and without any other proceedings or the happening of any other conditions or things, except as specifically required by this chapter.

History. Enact. Acts 1960, ch. 173, § 10; 1968, ch. 110, § 21; 1996, ch. 274, § 37, effective July 15, 1996.

175.505. Debt payment acceleration fund — Revenue source — Use to accelerate payment of turnpike authority debt.

There is hereby created a fund in the road fund of the Commonwealth of Kentucky entitled the debt payment acceleration fund. The fund shall consist of twenty percent (20%) of the revenues to the state road fund provided by the adjustments in KRS 138.220(2) excluding the provisions of KRS 177.320 and 177.365 . Annually the Transportation Cabinet shall use the funds generated to accelerate the payment of debt service including principal and interest, over and above the annual debt service payments appropriated for each fiscal year, for all bonds issued and any refinancings thereof by the Kentucky Turnpike Authority. The Transportation Cabinet shall notify the Interim Joint Committee on Appropriations and Revenue by January 1 of each fiscal year of the debt payments which are to or have been accelerated in the fiscal year. In the event that, due to bond market conditions, the terms of the bonds issued or other factors, the Transportation Cabinet is unable to accelerate debt service payments, the Transportation Cabinet shall provide documentation to the Interim Joint Committee on Appropriations and Revenue that such acceleration is not possible and the reasons therefor. In such an event, the funds not available for debt acceleration shall be placed in a special escrow account in the Transportation Cabinet. Such funds shall not be expended for any of the lawful purposes of the Transportation Cabinet but shall be held in the escrow account until such time as the debt acceleration described by this section is possible. The Transportation Cabinet shall invest the funds allocated to the escrow account and any funds generated from these investments shall remain in the escrow account. Any funds remaining in the escrow account at the close of the fiscal year shall not lapse but shall be carried forward to the next fiscal year for use as provided in this section. In the event that all principal and interest outstanding on any bonds issued or any refinancing thereof by the turnpike authority has been paid, the Transportation Cabinet shall so report. In that event, any funds remaining in the escrow account shall remain in the fund until such time as the funds are appropriated by the General Assembly for any of the lawful purposes of the Transportation Cabinet.

History. Enact. Acts 1986, ch. 174, § 11, effective July 1, 1986.

2022-2024 Budget Reference.

See Transportation Cabinet Budget, 2022 Ky. Acts ch. 214, Pt. I, A, 3, (2) at 2018.

Opinions of Attorney General.

The secretary of transportation acted within his authority in curtailing the allotment of funds to the debt payment acceleration fund. OAG 92-7 .

175.510. Revenue bonds are not debt of Commonwealth.

Revenue bonds issued by the authority under the provisions of this chapter shall not be deemed to constitute a debt of the department or of the Commonwealth or of any political subdivision thereof, or a pledge of the faith and credit of the department or of the Commonwealth or of any such political subdivision, but such bonds shall be payable solely from the funds provided therefor under the provisions of this chapter. All such revenue bonds shall contain on the face thereof a statement to the effect that neither the Commonwealth nor the authority shall be obligated to pay the same or the interest thereon except from revenues of the turnpike project for which they are issued, including rentals under a lease of such project to the Department of Highways of the Commonwealth for a biennium and subject to renewal for successive bienniums; and that neither the faith and credit nor the taxing power of the Commonwealth or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds.

History. Enact. Acts 1960, ch. 173, § 11, effective March 25, 1960.

175.520. Tolls for use of turnpikes — Contracts for utility and service facilities — Disposition of toll revenues.

  1. The authority, while having the right to control tolls under this chapter or any lease, and the department, while having such right under this chapter or any such lease, are hereby authorized to fix, revise, charge, and collect tolls for the use of each turnpike project and the different parts or sections thereof.
  2. The authority, with the approval of the department, is hereby authorized to contract with any person, partnership, association, or corporation desiring the use of any part of a project, including the right-of-way adjoining the paved portion, for placing thereon telephone, telegraph, electric light, or power lines; service stations, garages, stores, hotels, motels, and restaurants; or for any other purpose except for tracks for railroad or railway use, and to fix the terms, conditions, rents, and rates of charges for such use. A sufficient number of service stations shall be authorized to be established in each service area along any such turnpike to permit reasonable competition by private business in the public interest.
  3. During any period when tolls are under the control of the authority, such tolls shall be so fixed and adjusted in respect of the aggregate of tolls from the turnpike project or projects in connection with which the bonds of any issue shall have been issued under the provisions of this chapter as to provide funds sufficient, with any other available funds, to pay:
    1. The cost of maintaining, repairing and operating such turnpike project or projects, unless such cost or any part thereof is being paid by the department as authorized in this chapter; and
    2. The principal of and the interest on such bonds as the same shall become due and payable, and to create reserves for such purposes.

      Such tolls shall not be subject to supervision or regulation by any other department, commission, board, bureau, or agency of the Commonwealth. The tolls and all other revenues derived from the turnpike project or projects in connection with which the bonds of any issue shall have been issued, except such part thereof as may be necessary to pay such cost of maintenance, repair, and operation and to provide such reserves therefor as may be provided for in the proceedings authorizing the issuance of such bonds or the trust indenture securing the same, shall be set aside in a sinking fund or funds which are hereby pledged to and charged with the payment of the principal of and the interest on such bonds as the same shall become due and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made; the tolls or other revenues or other moneys so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act; and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether such parties have notice thereof. Neither the proceedings nor any trust indenture by which a pledge is created need be filed or recorded except in the records of the authority and the department. The use and disposition of moneys to the credit of any such sinking fund shall be subject to the provisions of the proceedings authorizing the issuance of such bonds or of such trust indenture. Except as may otherwise be provided in such proceedings or in such trust indenture, any such sinking fund shall be a fund for all bonds provided to be payable therefrom without distinction or priority of one (1) over another.

  4. Notwithstanding any of the foregoing provisions of this section, the department may, by separate proceedings ancillary to the proceedings of the authority authorizing the issuance of revenue bonds or revenue refunding bonds under the provisions of this chapter, covenant to pay all or any part of the cost of maintaining, repairing, and operating any project constructed under the provisions of this chapter, and the department may, in such proceedings, covenant to make up all or any part of any deficiency in the fund or funds pledged to and charged with the payment of the principal of and the interest on such bonds from any funds or tax revenues available for general purposes of the department and not required by law to be devoted to some other purpose, and, inasmuch as such project will have been constructed by agreement with the department for the use and benefit of the Commonwealth and will eventually become the property of the Commonwealth, any such covenant shall have the force of contract between the Commonwealth and the holders of such revenue bonds or revenue refunding bonds.
  5. Notwithstanding any of the foregoing provisions of this section, the authority may, in the proceedings authorizing the issuance of revenue bonds or revenue refunding bonds for any turnpike project or projects under the provisions of this chapter or in the trust agreement securing such bonds, pledge to the payment of such bonds all motor fuel taxes and surtaxes collected by the Commonwealth on gasoline and other motor fuels consumed on such project or projects (except the two-sevenths (2/7) of said motor fuel taxes provided by KRS 138.220 to be set aside for the construction, reconstruction and maintenance of rural and secondary roads) and paid over to the authority by the department as revenues of such project or projects, and covenant to deposit such motor fuel taxes from time to time in the sinking fund or funds pledged to the payment of such bonds. In determining the amount of motor fuel consumed on any turnpike project the department shall divide the total miles traveled on such project by passenger automobiles, single unit trucks, and semitrailer trucks and buses as determined by the department by the average number of miles per gallon of motor fuel consumed by each of those classes of motor vehicle on the following basis: Passenger automobiles15 miles per gallon Single unit trucks10 miles per gallon

Semitrailer trucks and buses5 miles per gallon

History. Enact. Acts 1960, ch. 173, § 12, effective March 25, 1960; 1988, ch. 270, § 1, effective July 15, 1988; 1996, ch. 249, § 2, effective July 15, 1996.

NOTES TO DECISIONS

1.Constitutionality.

Subsection (4) of this section, which authorizes a covenant by the highway department to make up any deficiency of revenues of a turnpike project from funds or tax revenues available for its general purposes and not required by law to be devoted to some other purpose, is unconstitutional as creating a future debt in violation of Const., §§ 49 and 50. Turnpike Authority of Kentucky v. Wall, 336 S.W.2d 551, 1960 Ky. LEXIS 331 ( Ky. 1960 ).

Research References and Practice Aids

Cross-References.

See notes to KRS 175.470 . Turnpike Auth. v. Wall, 336 S.W.2d 551, 1960 Ky. LEXIS 331 (Ky. Ct. App. 1960).

175.525. Toll-road identification card — Exemptions from tolls.

  1. The authority or the cabinet shall establish by administrative regulation promulgated pursuant to KRS Chapter 13A a toll-road identification card to be provided to paying and nonpaying users of toll facilities. The toll-road identification cards shall be issued through an application process. A fee that shall not exceed five dollars ($5) may be established for the issuance of each card.
  2. Upon application, nonpaying accounts shall be established for:
    1. State police, local police, and fire department vehicles while the vehicles are being operated in an official capacity on a turnpike project;
    2. Emergency vehicles operated by an ambulance service while the vehicles are being operated in an official capacity, in both emergency and nonemergency situations on a turnpike project;
    3. Funeral processions on turnpike projects; and
    4. School district vehicles while the vehicles are being operated in an official capacity on turnpike projects.
  3. To receive the exemption contained in subsection (2) of this section, an ambulance service shall be licensed by the Cabinet for Health and Family Services.

History. Enact. Acts 1996, ch. 249, § 1, effective July 15, 1996; 1998, ch. 426, § 122, effective July 15, 1998; 2005, ch. 99, § 143, effective June 20, 2005; 2005, ch. 130, § 1, effective June 20, 2005.

Legislative Research Commission Note.

(6/20/2005). This section was amended by 2005 Ky. Acts chs. 99 and 130, which do not appear to be in conflict and have been codified together.

175.530. Trust indenture to secure bonds — Rights and remedies of bondholders.

In the discretion of the authority, any bonds issued under the provisions of this chapter may be secured by a trust indenture by and between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth. Such trust indenture or the proceedings providing for the issuance of such bonds may pledge or assign the tolls and other revenues to be received, but shall not convey or mortgage any turnpike project or any part thereof. Such trust indenture or proceedings may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation and insurance of the turnpike project or projects in connection with which such bonds shall have been authorized, the rates of toll or the rentals to be charged, and the custody, safeguarding and application of all moneys. It shall be lawful for any bank or trust company incorporated under the laws of the Commonwealth which may act as depository of the proceeds of bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the authority. Any such trust indenture may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust indenture or proceedings may contain such other provisions as the authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust indenture or proceedings may be treated as a part of the cost of the operation of the turnpike project or projects.

History. Enact. Acts 1960, ch. 173, § 13, effective March 25, 1960.

175.540. Trust funds.

All moneys received pursuant to the provisions of this chapter, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this chapter. The proceedings or the trust indenture shall provide that any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes hereof, subject to such regulations as this chapter and such proceedings or trust indenture may provide.

History. Enact. Acts 1960, ch. 173, § 13, effective March 25, 1960.

175.550. Remedies of bondholders.

Any holder of bonds issued under the provisions of this chapter or any of the coupons appertaining thereto, and the trustee under any trust indenture, except to the extent the rights herein given may be restricted by such trust indenture, may, either at law or in equity, by suit, action, mandamus or other proceedings, protect and enforce any and all rights under the laws of the Commonwealth or granted under this chapter or under such trust indenture or the proceedings authorizing the issuance of such bonds, and may enforce and compel the performance of all duties required by this chapter or by such trust indenture or proceedings to be performed by the authority or by any officer or employees thereof, including the fixing, charging and collecting of tolls.

History. Enact. Acts 1960, ch. 173, § 15, effective March 25, 1960.

175.560. Turnpike properties and bonds are tax-exempt.

The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of the Commonwealth, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions, and as the operation and maintenance of a turnpike project or projects by the authority will constitute the performance of essential governmental functions, the authority shall not be required to pay any taxes or assessments upon any turnpike project or any property acquired or used by the authority under the provisions of this chapter or upon the income therefrom, and the bonds issued under the provisions of this chapter, their transfer and the income therefrom (including any profit made on the sale thereof) shall at all times be free from taxation within the Commonwealth.

History. Enact. Acts 1960, ch. 173, § 16, effective March 25, 1960.

175.570. Status of turnpike bonds as investments.

Bonds issued by the authority under the provisions of this chapter are hereby made securities in which all public officers and public bodies, agencies and instrumentalities of the Commonwealth and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees and other fiduciaries, and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or other obligations of a similar nature may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the Commonwealth for any purpose for which the deposit of bonds or other obligations of the Commonwealth is now or may hereafter be authorized by law.

History. Enact. Acts 1960, ch. 173, § 17, effective March 25, 1960.

NOTES TO DECISIONS

1.Constitutionality.

The character of revenue bonds as being eligible for the investment of public and other funds held in trust was not an unprecedented provision but was germane to the title of statute creating the turnpike authority. Turnpike Authority of Kentucky v. Wall, 336 S.W.2d 551, 1960 Ky. LEXIS 331 ( Ky. 1960 ).

175.580. Maintenance of turnpike — Restoration of private property — Donation of property by county or city — Annual report of turnpike activities — Audits — Prohibition of interest of department or authority personnel.

  1. Except as otherwise provided in the agreement or lease relating thereto, each turnpike project when constructed and opened to traffic shall be maintained and kept in good condition and repair by the department under the terms and provisions of the agreement or lease, and shall be operated and maintained by such force of tolltakers, and other operating and maintenance employees, as the department may in its discretion employ, and the department shall not be reimbursed for the cost thereof unless expressly otherwise provided in the agreement or lease.
  2. All private property damaged or destroyed in carrying out the powers granted by this chapter shall be restored or repaired and placed in its original condition as nearly as practicable or adequate compensation made therefor out of funds provided under the authority of this chapter.
  3. All counties, cities, towns and other political subdivisions and all public agencies and commissions of the Commonwealth, notwithstanding any contrary provision of law, may lease, lend, grant or convey to the authority at its request, upon such terms and conditions as the proper authorities of the counties, cities, towns, political subdivisions, agencies or commissions of the Commonwealth deem reasonable and fair and without the necessity for any advertisement, order of court or other action or formality, other than the regular and formal action of the authorities concerned, any real property which is necessary or convenient to the effectuation of the authorized purposes of the authority, including public roads and other real property already devoted to public use.
  4. On or before January 30 in each year the authority shall make an annual report of its activities for the preceding year to the Governor and to the General Assembly. Each such report shall set forth a complete operating and financial statement covering its operations during the year. The authority shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants and the cost thereof may be treated as a part of the cost of construction or operation of the project. Such audits are public records within meaning of KRS 61.870(2).
  5. No officer or employee of the authority or of the department shall have any interest, direct or indirect, in the sale or purchase of any bonds authorized by this chapter. Violation of this provision shall be punishable by a fine of not more than one thousand dollars ($1,000) or by imprisonment for not more than one (1) year, or both.

History. Enact. Acts 1960, ch. 173, § 18; 1966, ch. 255, § 161; 1980, ch. 188, § 131, effective July 15, 1980.

175.590. Acquisition of property — Condemnation — Possession — Special provisions for condemning railroad property.

  1. The authority is hereby authorized and empowered to acquire by purchase, whenever it shall deem such purchase expedient, solely from funds provided pursuant to this chapter, such lands, structures, property, rights, rights of way, franchises, easements and other interests in lands, including lands lying under water and riparian rights, which are located within the Commonwealth, as it may deem necessary or convenient for the construction and operation of any project, upon such terms and at such prices as may be considered by it to be reasonable and can be agreed upon between it and the owner thereof, and to take title thereto in the name of the authority.
  2. Whenever a reasonable price cannot be agreed upon, or whenever the owner is legally incapacitated or is absent, unknown or unable to convey valid title, the authority is hereby authorized and empowered to acquire by condemnation or by the exercise of the power of eminent domain any lands, property, rights, rights of way, franchises, easements and other property, including public lands, parks, playgrounds, reservations, highways or parkways, or parts thereof or rights therein, of any person, copartnership, association, railroad, public service, public utility or other corporation, or municipality or political subdivision, deemed necessary or convenient for the construction or the efficient operation of any project or necessary in the restoration of public or private property damaged or destroyed. Any such proceedings shall be conducted, and the compensation to be paid shall be ascertained and paid, in the manner provided by the Constitution and laws of the Commonwealth then applicable which relate to condemnation or to the exercise of the power of eminent domain by the department. Title to any property acquired by the authority shall be taken in the name of the authority. In any condemnation proceedings the court having jurisdiction of the suit, action or proceeding may make such orders as may be just to the authority and to the owners of the property to be condemned and may require an undertaking or other security to secure such owners against any loss or damage by reason of the failure of the authority to accept and pay for the property, but neither such undertaking or security nor any act or obligation of the authority shall impose any liability upon the Commonwealth except as may be paid from the funds provided under this chapter.
  3. If the owner, lessee or occupier of any property to be condemned shall refuse to remove his personal property therefrom or give up his possession thereof, the authority may proceed to obtain possession in any manner now or hereafter provided by law.
  4. With respect to any railroad property or right of way upon which railroad tracks are located, any powers of condemnation or of eminent domain may be exercised to acquire only an easement interest therein which shall be located either sufficiently far above or sufficiently far below the grade of any railroad track or tracks upon such railroad property so that neither the proposed project nor any part thereof, including any bridges, abutments, columns, supporting structures and appurtenances, nor any traffic upon it, shall interfere in any manner with the use, operation or maintenance of the trains, tracks, works or appurtenances or other property of the railroad nor endanger the movement of the trains or traffic upon the tracks of the railroad. Prior to the institution of condemnation proceedings for such easement over or under such railroad property or right of way, plans and specifications of the proposed project showing compliance with the above mentioned above or below grade requirements and showing sufficient and safe plans and specifications of such overhead or undergrade structure and appurtenances shall be submitted to the railroad for examination and approval. If the railroad fails or refuses within thirty (30) days to approve the plans and specifications so submitted, the matter shall be submitted to the Public Service Commission of Kentucky whose decision arrived at after due consideration in accordance with its usual procedure, shall be final as to the sufficiency and safety of such plans and specifications and as to such elevations or distances above or below the tracks. Said overhead or undergrade structure and appurtenances shall be constructed only in accordance with such plans and specifications and in accordance with such elevations or distances above or below the tracks so approved by the railroad or the Public Service Commission as the case may be. A copy of the plans and specifications approved by the railroad or the Public Service Commission shall be filed as an exhibit with the petition for condemnation.

History. Enact. Acts 1960, ch. 173, § 19.

175.600. Refunding bonds, issued when — Temporary investments — Agreements. [Repealed.]

Compiler’s Notes.

This section (Acts 1960, ch. 173, § 20; 1964, ch. 9, § 1) was repealed by Acts 1972, ch. 371, § 2.

175.605. Refunding bonds — Purposes — Factors to be taken into account — Investment of proceeds — Agreements and leases — Securing bonds.

  1. The authority is hereby authorized to provide for the issuance of its turnpike revenue refunding bonds for any combination of the following purposes:
    1. The refunding of any bonds then outstanding, whether an entire issue or series, or one or more issues or series, or any portions or parts of any issue or series, which shall have been issued under the provisions of this chapter;
    2. For such refunding and for the additional purpose of financing, in whole or in part, improvements, extensions, enlargements or completion of any turnpike project or projects in connection with which the bonds to be refunded shall have been issued;
    3. For such refunding and to pay all or any part of the costs of any new or additional turnpike project or projects.
  2. In determining the principal amount of any such turnpike revenue refunding bonds to be issued for the purpose of refunding any bonds outstanding pursuant to the provisions of this chapter, the authority may take into account the following factors:
    1. The principal amount of all outstanding bonds to be redeemed and refunded, as of the established date of redemption thereof;
    2. The total amount of any redemption premium incident to redemption of such outstanding bonds to be refunded;
    3. The total amount of any interest accrued or to accrue to the date or dates of redemption of such outstanding bonds to be refunded;
    4. Any and all costs or expenses incident to such refunding;
    5. Such amount, if any, as may be anticipated with certainty to be realized upon the investment of the bond proceeds of turnpike revenue refunding bonds from the date of such refunding bonds to the date or dates of redemption of outstanding bonds to be refunded; and
    6. Any amount or amounts which may have been accrued or accumulated as a reserve or reserves with reference to the outstanding bonds to be refunded, and any earnings realized, or anticipated with certainty to be realized therefrom, to the extent that such reserve or reserves may be so applied as provided by the proceedings authorizing the outstanding bonds to be refunded.
  3. The issuance of such turnpike revenue refunding bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the authority in respect of the same, shall be governed by the provisions of this chapter, insofar as the same may be applicable, and may in harmony therewith be adjusted and modified to conform to the facts and circumstances prevailing in each instance of issuance of such turnpike revenue refunding bonds.
  4. With reference to the investment of the proceeds of any such turnpike revenue refunding bonds, the authority shall not authorize or anticipate investment earnings exceeding such as are authorized or permitted under prevailing federal laws, regulations and administrative rulings relating to arbitrage bonds.
  5. Pending application of the proceeds of such turnpike revenue refunding bonds (together with any other funds available for application to refunding purposes, if so provided or permitted in the resolution authorizing the issuance of such turnpike revenue refunding bonds, or in the trust indenture securing the same), to the purposes hereinabove authorized and permitted, such refunding bond proceeds and such other available funds, if any, may be invested in direct obligation of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America, or in United States government agency obligations, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder, not later than the respective date or dates when such proceeds, together with the interest accruing thereon, will be required for the refunding purposes intended and authorized; or, in lieu of such investments, all or any part of such refunding bond proceeds may be placed in interest-bearing time deposits, or other similar arrangements may be made with regard thereto which will assure that such refunding bond proceeds, together with the interest accruing thereon, will be available when required for the refunding purposes intended and authorized; provided, however, that such time deposits shall be made in a bank or banks possessing capital and surplus, in each case, of not less than one hundred million dollars ($100,000,000), or, if any such deposit be made in any bank having a combined capital and surplus of less than said amount, the deposit shall be secured by obligations such as those permitted herein for investment for all amounts in excess of twenty-five percent (25%) of the combined capital and surplus of such bank.
  6. In connection with or incident to the issuance of the authority’s turnpike revenue refunding bonds for any of the purposes authorized in this section, the authority and the department are authorized to make one or more written agreements or supplemental agreements with regard to any one or more of the matters and things set forth in KRS 175.460 , and pursuant thereto the authority and the department are authorized and empowered to enter into one or more leases, or supplemental leases, pursuant thereto; and any such leases or supplemental leases may contain, in substance, any of the provisions set forth in KRS 175.470 , with modifications conforming to the provisions of such agreements or supplemental agreements, and with such other provisions not inconsistent with KRS 175.470 as the authority and the department may deem appropriate and desirable. Provided, however, that such agreements may, by their terms provide that any such leases, or supplemental leases, and the rental schedule or schedules with reference thereto, shall be and become effective only upon the redemption of the outstanding bonds for the refunding of which such turnpike revenue refunding bonds are issued.
  7. Any such turnpike revenue refunding bonds issued by the authority may be secured, until the date or dates established for the redemption of the outstanding bonds being refunded, solely, as to both principal and interest, by a pledge of and lien upon the obligations acquired by the application of the proceeds of such turnpike revenue refunding bonds, and the income thereon, and in such case shall not be secured by any trust indenture, lease agreement, resolution, or other contractual arrangement securing the outstanding bonds to be refunded by such turnpike revenue refunding bonds; provided, however, that any authorizing proceedings incident to such turnpike revenue refunding bonds may provide that as of the effective date of such refunding, the refunding bonds shall be substituted for the outstanding bonds being refunded, and shall be secured as to payment of principal and interest identically as in the case of the outstanding bonds being refunded, subject to the provisions, requirements and conditions precedent established by the authority incident to the issuance of the outstanding bonds being refunded.

History. Enact. Acts 1972, ch. 371, § 1; 1974, ch. 74, Art. IV, § 20(1).

175.610. Transfer of turnpike to highway system after retirement of bonds.

Except as hereinafter provided in this section, when all bonds issued under the provisions of this chapter in connection with any turnpike project or projects and the interest thereon shall have been paid or a sufficient amount for the payment of all such bonds and the interest thereon to the maturity thereof shall have been set aside in trust for the benefit of the bondholders, such project or projects, if then in good condition and repair, shall be conveyed by the authority to the Commonwealth and shall become part of the state highway system and shall thereafter be maintained by the department free of tolls; provided, however, that the department may, in any proceedings or trust indenture authorizing or securing bonds under the provisions of this chapter, provide for combining for financing purposes any two (2) or more turnpike projects theretofore constructed or thereafter to be constructed, and for the reimposition or continuance of tolls on each such turnpike project until all such bonds and the interest thereon shall have been paid or a sufficient amount for such purposes shall have been set aside in trust for the benefit of the bondholders.

History. Enact. Acts 1960, ch. 173, § 21, effective March 25, 1960.

Opinions of Attorney General.

Under this section, when the bonds and interest are completely paid, as relates to the Mountain Parkway and Mountain Parkway Extension, if those roads are found by the Transportation Cabinet to be in good condition and repair, the Turnpike Authority must then convey the toll roads to the commonwealth, and they shall become part of the State Highway System and shall thereafter be maintained by the Transportation Cabinet free of tolls. However, if, at the time the bonds and interest are fully paid, the Transportation Cabinet finds that the toll roads are not in good condition and repair, the tolls should be retained for a reasonable period, during which time the Cabinet will restore the toll roads to good condition and repair. OAG 85-4 .

175.620. Preliminary expenses of turnpike project.

The department is hereby authorized in its discretion to expend such moneys as may be necessary for the study of any turnpike project or projects and to use its engineering and other forces and employ consulting engineers and traffic engineers for the purpose of effecting such study, and to pay for such additional engineering and traffic and other expert studies as it may deem expedient. All such expenses incurred by the department prior to the issuance of turnpike revenue bonds under the provisions of this chapter shall be paid by the department and charged to the appropriate turnpike project or projects, and the department shall keep proper records and accounts showing each amount so charged. Upon the sale of turnpike revenue bonds of the authority for any turnpike project or projects, the funds so expended by the department in connection with such project or projects may be reimbursed by the authority to the department from the proceeds of such bonds if provision to that effect is made in the proceedings or trust indenture authorizing and securing such bonds.

History. Enact. Acts 1960, ch. 173, § 22, effective March 25, 1960.

175.630. Additional and alternative nature of chapter.

This chapter shall be deemed to provide an additional and alternative method for the doing of the things authorized thereby, and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing; provided, however, that the issuance of turnpike revenue bonds or turnpike revenue refunding bonds by the authority under the provisions of this chapter need not comply with the requirements of any other law applicable to the issuance of bonds.

History. Enact. Acts 1960, ch. 173, § 23, effective March 25, 1960.

Resource Recovery Road Projects

175.640. Legislative findings.

The General Assembly of the Commonwealth of Kentucky determines as a legislative finding of fact that the economy of the Commonwealth is, to a major degree, dependent upon the severance and production of coal, which is the most abundant and valuable mineral resource of Kentucky; that there is a serious shortage of transportation facilities for the transportation of coal from mines to market; that many of the roads, bridges and highways situated in the coal-producing areas of the Commonwealth are obsolete and inadequate for the uses to which they are subjected, and have, in many cases deteriorated to the point where their use is hazardous and represents a potential threat to the safety and welfare of the traveling public; and that the shortage of modern, heavy-duty road systems in such areas is seriously retarding the continued economic growth of the Commonwealth. The General Assembly of the Commonwealth of Kentucky further determines as a legislative finding of fact that the construction and financing of resource recovery roads through the Turnpike Authority of Kentucky utilizing coal severance tax allocations for the amortization of resource recovery road revenue bonds issued to provide funds to construct such roads will preserve and enhance the economic viability of the Commonwealth, will protect and enhance the safety, health, convenience and general welfare of the traveling public, and will therefore constitute the performance of essential governmental and public purposes.

History. Enact. Acts 1976, ch. 259, § 1.

Research References and Practice Aids

Kentucky Law Journal.

Kentucky Law Survey, Whiteside and Buechel, Kentucky Taxation, 65 Ky. L.J. 425 (1976-77).

175.650. Definitions for KRS 175.640 to 175.690.

As used in KRS 175.640 to 175.690 , and as applied to the financing of resource recovery roads by the Turnpike Authority of Kentucky, the following words and phrases shall have the following respective meanings, unless another or different meaning or intent shall be clearly indicated by the context.

  1. “Authority” shall mean the Turnpike Authority of Kentucky duly organized and existing pursuant to the provisions of KRS 175.410 to 175.990 , inclusive.
  2. “Bonds” or “resource recovery road revenue bonds” shall mean resource recovery road revenue bonds of the authority issued under the provisions of KRS 175.640 to 175.690 .
  3. “Cabinet” shall mean the Transportation Cabinet of Kentucky or, if said cabinet shall be abolished, the cabinet, board, body, department, or commission succeeding to the principal functions thereof or to whom the powers vested in the cabinet shall be given or transferred by law.
  4. “Resource recovery road project” or “project” shall mean any express highway or superhighway, or such part or parts thereof, as may be constructed and financed under the provisions of KRS 175.640 to 175.690 which shall be designed and constructed to serve as a modern, heavy-duty motorway facility capable of carrying in normal operations vehicles designed for the transportation of coal severed and produced in the Commonwealth of Kentucky, which road shall also be designed to serve the traveling public, including all bridges, tunnels, overpasses, underpasses, interchanges, entrance plazas, approaches, connecting highways, tollhouses (if any), service stations, garages, restaurants, and administration, storage, or other buildings and facilities which the authority may deem necessary for the operation of such resource recovery road project, together with all property, rights, easements, and interests which may be acquired by the authority or by the cabinet for the construction or the operation of such project.
  5. All words and phrases which are defined and used in KRS 175.410 to 175.990 , inclusive, shall have the same meaning or meanings when used in KRS 175.640 to 175.690 , except that the words and phrases “turnpike project” or “project” as used in said identified sections shall mean and refer to resource recovery road projects constructed and financed pursuant to KRS 175.640 to 175.690 .

History. Enact. Acts 1976, ch. 259, § 2.

175.660. Authority with respect to resource recovery road projects.

Subject to the provisions of KRS 175.640 to 175.690 , the Turnpike Authority of Kentucky may initiate, plan, implement, acquire, construct and finance resource recovery road projects utilizing and employing all of the authority, rights and procedures granted to the authority by KRS 175.410 to 175.990 , inclusive.

History. Enact. Acts 1976, ch. 259, § 3.

175.670. Authorization to contract for and lease resource recovery road projects — Bonds.

In order to provide for the construction of resource recovery road projects, the authority is hereby authorized and empowered under and pursuant to the terms and provisions of a written agreement or agreements with the cabinet to construct, finance, maintain, repair and operate resource recovery road projects, to lease such projects to the cabinet, and to issue resource recovery road revenue bonds of the authority to finance such projects. In the planning, construction and financing of any resource recovery road project, the authority and the cabinet shall, subject to the provisions of KRS 175.640 to 175.690 , have and use all authority, procedures and rights provided by the provisions of KRS 175.410 to 175.990 , inclusive.

History. Enact. Acts 1976, ch. 259, § 4.

175.680. Revenue bonds.

In the event that the authority and the cabinet shall undertake the planning, construction and financing of any resource recovery road project, it may be provided in connection with such financing that resource recovery road revenue bonds issued in respect of any such project shall be secured solely by income and revenues derived from the leasing by the authority of any such project to the cabinet, and shall not be secured by a pledge of any motor fuel taxes and surtaxes collected by the Commonwealth on gasoline and other motor fuels consumed by vehicles utilizing such resource recovery road project.

History. Enact. Acts 1976, ch. 259, § 5.

175.690. Use of funds.

All funds credited to the state transportation fund (road fund), from severance tax collection, shall be used for the purposes of paying the annual lease rental payments to the Kentucky Turnpike Authority for resource recovery road projects. Any funds deposited to the credit of the transportation fund (road fund) in excess of the amount required for the annual lease payments shall revert at the close of the fiscal year to the credit of the general fund.

History. Enact. Acts 1976, ch. 259, § 6.

Economic Development Road Projects

175.750. Legislative findings.

The General Assembly of the Commonwealth of Kentucky determines as a legislative finding of fact that the economy of the Commonwealth and the consequent economic development potential of the citizens of the Commonwealth are vitally dependent upon the existence and availability of a statewide system of safe, adequate and well-maintained highways, roads and thoroughfares; that there is a serious need for construction, reconstruction, and in some cases relocation of many such highways, roads and thoroughfares to preserve and enhance the economic well-being and development of the Commonwealth and the health and safety of the public; and that in many cases, highways, roads and thoroughfares which are vital economic links between various sections of the Commonwealth have become, by reason of age and continued usage obsolete and are no longer capable of affording the services required in a modern industrial society. The General Assembly of the Commonwealth of Kentucky further determines as a legislative finding of fact that the construction, reconstruction, and relocation of a system of such economic development roads through the Turnpike Authority of Kentucky will preserve and enhance the economic viability of the Commonwealth, will enable the Commonwealth to prosper and make available its economic potentials to the fullest possible degree, will protect and enhance the safety, health, convenience and welfare of the traveling public and will therefore constitute the performance of essential governmental and public purposes.

History. Enact. Acts 1980, ch. 393, § 1, effective July 15, 1980.

NOTES TO DECISIONS

1.Plan for Bond Financing Constitutional.

The statutory plan in KRS 175.750 to 175.810 for financing bonds issued by the turnpike authority for the costs of improvements, construction, and reconstruction of roads is not unconstitutional under Const., §§ 49, 50, and 178. Blythe v. Transportation Cabinet of Commonwealth, 660 S.W.2d 668, 1983 Ky. LEXIS 278 ( Ky. 1983 ).

2.Bonds Not Debt of Commonwealth.

Economic Development Road Revenue Bonds (Revitalization Projects) Series 1990, as authorized by KRS 175.750 to 175.810 , which provide for the construction and reconstruction of roads through a lease arrangement between the Turnpike Authority of Kentucky and the Kentucky Transportation Cabinet were not unconstitutional; the issuance of such bonds paid for by lease rental payments did not represent a debt of the Commonwealth because neither the full faith and credit, nor the taxing authority of the Commonwealth was pledged to the payment of the principal or interests of the bonds. Wilson v. Kentucky Transp. Cabinet, 884 S.W.2d 641, 1994 Ky. LEXIS 108 ( Ky. 1994 ).

175.760. Definitions for KRS 175.750 to 175.810.

As used in KRS 175.750 to 175.810 , and as applied to the financing of construction, reconstruction, resurfacing, and relocation of economic development roads by the Turnpike Authority of Kentucky, the following words and phrases shall have the following respective meanings unless another or different meaning or intent shall be clearly indicated by the context.

  1. “Authority” shall mean the Turnpike Authority of Kentucky duly organized and existing pursuant to the provisions of KRS 175.410 to 175.690 , inclusive.
  2. “Bonds” or “economic development road revenue bonds” shall mean economic development road revenue bonds of the authority issued under the provisions of KRS 175.780 . No bonds may be issued for terms exceeding twenty-five (25) years.
  3. “Cabinet” shall mean the Transportation Cabinet of Kentucky or, if said cabinet shall be abolished, the cabinet, board, bureau, body or commission succeeding to the principal functions thereof or to whom the powers vested in the cabinet shall be given or transferred by law.
  4. “Economic development road project” or “project” shall mean the construction, reconstruction, or relocation of any highway, road, or thoroughfare or such part or parts thereof as shall have been designated by the cabinet to constitute a part of the economic development road system of the Commonwealth, which project may include the construction, reconstruction, repair, or relocation of highways, roads, thoroughfares, bridges, tunnels, overpasses, underpasses, interchanges, approaches, and connecting highways.
  5. “Notes” shall mean any economic development road revenue bond anticipation notes, or any economic development road revenue notes. Revenue bond anticipation notes shall be payable from the proceeds of bonds, renewal notes, or income and revenues derived from the leasing by the authority of any project or projects to the cabinet. Revenue notes shall be payable solely from income and revenues derived from the leasing by the authority of any project or projects to the cabinet. Notes may be issued for terms not to exceed five (5) years.
  6. All words and phrases which are defined and used in KRS 175.410 to 175.690 and 175.990 , inclusive, shall have the same meaning or meanings when used in KRS 175.750 to 175.810 , except that the words and phrases “turnpike project” or “project” as used in said identified sections shall mean and refer to economic development road projects constructed and financed pursuant to KRS 175.750 to 175.810 .

History. Enact. Acts 1980, ch. 393, § 2, effective July 15, 1980.

175.770. Power of turnpike authority to construct economic development road projects.

Subject to the provisions of KRS 175.640 to 175.690 , the Turnpike Authority of Kentucky may initiate, plan, implement, acquire, construct and finance economic development road projects utilizing and employing all of the authority, rights and procedures granted to the authority by KRS 175.410 to 175.690 , inclusive.

History. Enact. Acts 1980, ch. 393, § 3, effective July 15, 1980.

NOTES TO DECISIONS

1.Plan for Bond Financing Constitutional.

The statutory plan in KRS 175.750 to 175.810 for financing bonds issued by the turnpike authority for the costs of improvements, construction, and reconstruction of roads is not unconstitutional under Const., §§ 49, 50, and 178. Blythe v. Transportation Cabinet of Commonwealth, 660 S.W.2d 668, 1983 Ky. LEXIS 278 ( Ky. 1983 ).

2.Limitations on Plan.

The language in this section and KRS 175.780 , that the turnpike authority shall have, use, utilize and employ all of the authority, rights and procedures granted by KRS 175.410 to KRS 175.690 , inclusive, of necessity includes any limitations on such authority or right provided by those sections. Blythe v. Transportation Cabinet of Commonwealth, 660 S.W.2d 668, 1983 Ky. LEXIS 278 ( Ky. 1983 ).

175.780. Power of turnpike authority to issue economic development road revenue bonds and notes.

To provide for the construction, reconstruction, and relocation of economic development road projects, the authority is hereby authorized and empowered, subject to the limitations contained in a branch budget bill as defined in KRS 48.010 , under and pursuant to the terms and provisions of a written agreement or agreements with the cabinet, to construct, reconstruct, relocate, finance, and operate economic development road projects, to lease such projects to the cabinet, and to issue economic development road revenue bonds or notes of the authority to finance such projects. In the planning, construction, and financing of any economic development road project, the authority and the cabinet shall, subject to the provisions of KRS 175.750 to 175.810 , have and use all authority, procedures, and rights provided by the provisions of KRS 175.410 to 175.690 , inclusive.

History. Enact. Acts 1980, ch. 393, § 4, effective July 15, 1980; 1982, ch. 450, § 74, effective July 1, 1983; 1990, ch. 502, § 1, effective April 11, 1990; 1990, ch. 507, § 24, effective July 13, 1990; 1994, ch. 387, § 27, effective July 15, 1994; 2009, ch. 78, § 39, effective June 25, 2009.

NOTES TO DECISIONS

1.Bond Financing Plan Constitutional.

The statutory plan in KRS 175.750 to 175.810 for financing bonds issued by the turnpike authority for the costs of improvements, construction, and reconstruction of roads is not unconstitutional under Const., §§ 49, 50, and 178. Blythe v. Transportation Cabinet of Commonwealth, 660 S.W.2d 668, 1983 Ky. LEXIS 278 ( Ky. 1983 ).

2.Limitations on Plan.

The language in KRS 175.770 and this section, that the turnpike authority shall have, use, utilize and employ all of the authority, rights and procedures granted by KRS 175.410 to KRS 175.690 , inclusive, of necessity includes any limitations on such authority or right provided by those sections. Blythe v. Transportation Cabinet of Commonwealth, 660 S.W.2d 668, 1983 Ky. LEXIS 278 ( Ky. 1983 ).

175.790. Bonds secured solely by revenues derived from leasing project to cabinet — Tolls prohibited.

In the event that the authority and the cabinet shall undertake the planning and financing of any economic development road project, it shall be provided in connection with such financing that economic development road revenue bonds or notes issued in respect of any such project shall be secured solely by income and revenues derived from the leasing by the authority of any such project to the cabinet, and no tolls shall be imposed or charged for the use by the traveling public of any such projects or for amortization of the bonds or notes; provided that notes may be issued in anticipation of the issuance of bonds or renewal notes and be made payable from the proceeds thereof.

History. Enact. Acts 1980, ch. 393, § 5, effective July 15, 1980.

175.800. Funds credited to state transportation fund (road fund) to be used for lease rental payments.

Funds credited to the state transportation fund (road fund) shall be used for the purposes of paying the annual lease rental payments to the Kentucky Turnpike Authority for economic development road projects. Any funds deposited to the credit of the transportation fund (road fund) in excess of the amount required for any such annual lease payments shall be used for any lawful purposes of the transportation fund (road fund).

History. Enact. Acts 1980, ch. 393, § 6, effective July 15, 1980.

175.810. Economic development road account — Transfer of funds to account.

The Transportation Cabinet shall certify to the commissioner of the Department of Revenue by October 1 of each fiscal year the amount required for lease rental payments to the Kentucky Turnpike Authority for economic development road projects. Upon receiving such certification, the commissioner of the Department of Revenue shall cause said amount to be deposited from road fund receipts to the credit of the economic development road account, hereby created, in the transportation fund (road fund). Such taxes collected in excess of the amount required to be deposited to the economic development road account in the transportation fund (road fund) shall be deposited by the Department of Revenue to the credit of the transportation fund (road fund).

History. Enact. Acts 1980, ch. 393, § 7, effective July 15, 1980; 2005, ch. 85, § 603, effective June 20, 2005.

Penalties

175.990. Penalty.

Any person who uses any turnpike project and fails or refuses to pay the toll provided therefor shall be punished by a fine of not more than one hundred dollars ($100) or by imprisonment for not more than thirty (30) days, or both, and in addition thereto the authority or the department, whichever has the right to collect such toll, shall have a lien upon the vehicle driven by such person for the amount of such toll and may take and retain possession thereof until the amount of such toll and all charges and penalties in connection therewith shall have been paid.

History. Enact. Acts 1960, ch. 173, § 18, effective March 25, 1960.

CHAPTER 175A County Turnpike Authority [Repealed]

175A.010. Definitions. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 1, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.020. Legislative Intent. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 2, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.030. Turnpike Authority — Counties may establish. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 3, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.040. Turnpike Authority — Membership — Meetings — Quorum — Corporate character. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 4, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.050. Authority may undertake turnpike projects. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 5, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.060. General powers of authority as to turnpike projects. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 6, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.070. Policing of projects. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 7, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.080. Grade separations — Relocation or vacation of existing highways — Rights of access — Regulations as to public utility facilities on or along turnpike projects. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 8, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.090. Turnpike revenue bonds of the authority. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 9, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.100. Revenue bonds are not debt of Commonwealth or any political subdivision thereof. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 10, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.110. Tolls for use of turnpike — Disposition of toll revenues. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 11, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.120. Trust indenture to secure bonds — Rights and remedies of bondholders. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 12, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.130. Trust Funds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 13, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.140. Remedies of bondholders. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 14, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.150. Turnpike properties and bonds are tax-exempt. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 15, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.160. Status of turnpike bonds as investments. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 16, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.170. Restoration of private property — Donation of property by county or city — Annual report of turnpike activities — Audits — Prohibition of interest of bureau of highways as authority personnel. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 17, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.180. Acquisition of property — Condemnation — Possession — Special provisions for condemning railroad property. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 18, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.190. Refunding bonds, issued when — Temporary investments. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 19, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.200. Transfer of turnpike to highway system after retirement of bonds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 20, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.210. Preliminary expenses of turnpike projects — Leases between authority and bureau authorized — Hazards caused by weather — Bureau to alleviate. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 21, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.220. Additional and alternative nature of chapter. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 22, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

175A.990. Penalty. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 145, § 23, effective June 16, 1972) was repealed by Acts 1984, ch. 4, § 3, effective July 15, 1986.

CHAPTER 175B Kentucky Public Transportation Infrastructure Authority

175B.005. Purpose of chapter.

  1. The purpose of this chapter is to establish a structure for the construction, operation, financing, and oversight of significant transportation projects within the Commonwealth and between the Commonwealth and any state adjoining the Commonwealth. To accomplish this purpose, the Kentucky Public Transportation Infrastructure Authority is established by KRS 175B.015 to review, approve, and monitor all projects eligible for construction and financing under this chapter and, if necessary, to assist with the operation, financing, and management of projects.
  2. All projects approved by the Kentucky Public Transportation Infrastructure Authority may be operated, managed, constructed, and financed entirely or in part only by:
    1. A bi-state authority as provided in KRS 175B.030 ;
    2. A project authority as provided in KRS 175B.035 ;
    3. A public-private partnership as provided in KRS 175B.030 and 175B.037 ; or
    4. A state authority as provided in KRS 175B.020 , 175B.030, and 175B.037 .

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 75, effective June 26, 2009; 2016 ch. 67, § 6, effective April 8, 2016.

175B.010. Definitions for chapter.

As used in this chapter:

  1. “Authority” means the state authority, or a bi-state authority, or a project authority, unless the specific use requires that it apply only to the state authority, or a bi-state authority, or a project authority;
  2. “Bi-state authority” means an authority created under KRS 175B.030 ;
  3. “Cabinet” means the Transportation Cabinet;
  4. “Commonwealth” means the Commonwealth of Kentucky;
  5. “Cost” means:
    1. The cost of construction of the project, including the acquisition of land, rights-of-way, property, rights in land, easements, and interests acquired by the authority for construction of a project;
    2. The cost of preparing land or property, including demolishing or removing any buildings or structures, and the cost of acquiring any lands to which those buildings or structures may be moved;
    3. The pro-rata value of all machinery and equipment used in construction of the project;
    4. Financing charges and provisions for working capital in an amount the authority determines to be reasonable;
    5. Interest prior to and during construction and, if approved by the authority, for a period up to two (2) years after completion of construction;
    6. The cost of traffic estimates and of engineering, financial and legal services, plans, specifications, surveys, estimates of cost and revenues, or other expenses necessary or incidental to determining the feasibility or practicability of constructing any project;
    7. The cost and expense of the relocation or removal of public utilities impacted by a project, including the cost of installing the facilities in a new location, the cost of any lands or any rights or interests in lands, and the cost of any other rights acquired to accomplish the relocation or removal;
    8. Administrative expenses and any other expenses that are necessary for or incidental to the construction of a project, the financing of the construction, and the placing of the project in operation; and
    9. The cost of maintenance of the completed project.

      Any obligation or expense incurred by and reimbursed to the Commonwealth in connection with any of the items of cost set out in this subsection may be regarded as a part of that cost;

  6. “Department” means the Department of Highways;
  7. “Developing authority” means the authority involved in the development of a project;
  8. “Issuing authority” means the authority that will issue or has issued debt associated with a project;
  9. “Local government” means a consolidated local government, an urban-county government, a charter county government, a unified local government, or a county;
  10. “Private partner” means any entity that is a partner in a public-private partnership other than:
    1. The Commonwealth of Kentucky;
    2. Any political subdivision of the Commonwealth;
    3. The federal government;
    4. Any other state government;
    5. Any agency of a state, federal, or local government; or
    6. An authority;
    1. “Project” means:
      1. Any highway or section of a highway designated as part of, or built to the standards of, the federal interstate highway system and that would be designated a major project by the Federal Highway Administration; or
      2. Any fully or partially controlled highway or section of a fully or partially controlled highway not designated as part of, or built to the standards of, the federal interstate highway system, that exceeds one hundred million dollars ($100,000,000) in total cost;

        with funding authorized by the plan enacted pursuant to KRS 48.300(2)(b);

    2. “Project” includes all bridges, tollhouses, garages, and other buildings and facilities which the authority deems necessary for the operation of the project, together with all property, rights, easements, and interests which may be acquired by the authority or by the Commonwealth for the construction and operation of a project;
  11. “Project authority” means an authority created pursuant to KRS 175B.035 ;
  12. “Project revenue bonds” means revenue funding bonds, revenue refunding bonds, notes, or other financial obligations issued under this chapter by the issuing authority;
  13. “Public-private partnership” means an entity operating pursuant to a written public-private partnership agreement, and composed of:
    1. An authority or authorities;
    2. At least one (1) private partner;
    3. The cabinet, if necessary; and
    4. An adjoining state, if necessary, if the public-private partnership is financing a project that is between the Commonwealth and an adjoining state;
  14. “Public utility facilities” means tracks, pipes, mains, conduits, cables, wires, towers, poles, and other equipment and appliances of any public utility in, on, along, over, or under any project; and
  15. “State authority” means the Kentucky Public Transportation Infrastructure Authority created under KRS 175B.015 .

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 76, effective June 26, 2009; 2016 ch. 67, § 7, effective April 8, 2016.

175B.015. Kentucky Public Transportation Infrastructure Authority — Members — Meetings — Records — Administrative regulations — Model procurement code compliance.

  1. The Kentucky Public Transportation Infrastructure Authority is hereby established as an independent de jure municipal corporation and political subdivision of the Commonwealth constituting a governmental agency and instrumentality of the Commonwealth. The General Assembly hereby finds and declares that in carrying out its functions, powers, and duties as prescribed in this chapter, the state authority will be performing essential public and government functions that improve the public welfare and prosperity of the people of the Commonwealth by promoting the availability of and enhancing accessibility to improved transportation services within the Commonwealth.
    1. The state authority shall be composed of the following eleven (11) voting members:
      1. The secretary of the Finance and Administration Cabinet, or the secretary’s designee;
      2. The secretary of the Transportation Cabinet;
      3. A representative of the Kentucky Association of Counties, to be appointed by the Governor;
      4. A representative of the Kentucky County Judges/Executive Association, to be appointed by the Governor;
      5. A representative of the Kentucky League of Cities, to be appointed by the Governor; and
      6. Six (6) citizen members to be appointed by the Governor and confirmed by the Senate in accordance with KRS 11.160 , at least two (2) of whom shall be familiar with road and bridge design or the financing and administration of transportation infrastructure projects; and
    2. Each Kentucky member who shares duties as a presiding officer of a bi-state authority pursuant to KRS 175B.030(4)(a)3. shall serve as a nonvoting ex officio member.
  2. The ex officio members shall serve for the term of their respective offices.
  3. Members appointed pursuant to subsection (2)(a)3. to 6. of this section shall begin their terms on October 1, 2009, and shall be appointed for a term of four (4) years; however, in making initial appointments, the members appointed pursuant to subsection (2)(a)6. of this section shall include two (2) members for a term of two (2) years, two (2) members for a term of three (3) years, and two (2) members for a term of four (4) years.
  4. Vacancies occurring during the term of any member shall be filled in the same manner as the original appointment.
  5. The members of the state authority shall receive no compensation for their services, but shall be entitled to reimbursement for all reasonable expenses necessary and incidental to the performance of their duties and functions as members of the state authority.
    1. Members of the state authority shall be considered public servants subject to KRS Chapter 11A.
    2. The following individuals or entities shall be prohibited from entering into any contract or agreement with the state authority:
      1. Any member of the state authority, a project authority, or a bi-state authority;
      2. Any spouse, child, stepchild, parent, stepparent, or sibling of a member of the state authority, a project authority, or a bi-state authority; and
      3. Any corporation, limited liability entity, or other business entity of which a person identified in subparagraph 1. or 2. of this paragraph is an owner, member, or partner or has any other ownership interest.
    1. The chairman of the state authority shall be the secretary of the Transportation Cabinet.
    2. The members of the state authority shall elect a vice chairman and a secretary from the membership.
  6. The Finance and Administration Cabinet shall provide fiscal consultant services to the state authority.
  7. The state authority shall hold its initial meeting no later than November 1, 2009, and shall meet as needed thereafter, with adequate notice at the call of the chair. A quorum of at least fifty percent (50%) of the members of the state authority must be present for the state authority to take any action. At least eight (8) members shall vote in the affirmative for the state authority to approve a new project. All other business shall be approved by a majority vote of the members present.
    1. The state authority shall be attached for administrative purposes to the Transportation Cabinet. The state authority shall establish and maintain an office, and the secretary of the state authority shall maintain complete records of the state authority’s actions and proceedings as public records open to inspection.
    2. The state authority shall employ staff as needed in the conduct of its duties and functions, and shall fix their compensation.
  8. The state authority may promulgate administrative regulations in accordance with KRS Chapter 13A as needed:
    1. Establishing collection and enforcement procedures, including fines, charges, assessments, and other enforcement mechanisms, for the violation of KRS 175B.040(4), and for violation of any administrative regulation promulgated under this subsection;
    2. Establishing an appeals process by which a person may contest a violation of KRS 175B.040(4), or a violation of any administrative regulation promulgated under this subsection, by way of an administrative hearing to be conducted in accordance with KRS Chapter 13B;
    3. Relating to any matters necessary to the efficient administration of tolls when implemented for a project developed under this chapter; and
    4. To fulfill any other requirements of this chapter.
  9. The state authority shall comply with applicable provisions of KRS Chapter 45A in the development of a project and the procurement of goods and services.
  10. The records of the state authority shall be considered open records pursuant to KRS 61.870 to 61.884 .
  11. The meetings of the state authority shall be considered open meetings pursuant to KRS 61.805 to 61.850 .

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 77, effective June 26, 2009; 2013, ch. 38, § 1, effective June 25, 2013; 2017 ch. 132, § 7, effective March 27, 2017.

175B.020. Purpose of state authority — Participation as a developing or issuing authority — Oversight function — Legislative ratification required for certain actions — Administrative regulation regarding fee.

  1. The state authority’s primary purpose shall be to facilitate the construction, financing, operation, and oversight of projects by entering into bi-state agreements and by creating bi-state authorities, project authorities, and public-private partnerships. To accomplish these purposes, the state authority shall have the power and duty to:
    1. Take the following actions relating to a bi-state authority authorized pursuant to KRS 175B.030 :
      1. To enter into a bi-state agreement;
      2. To review and approve project financing plans and development agreements; and
      3. To monitor agreements entered into by bi-state authorities;
    2. Take the following actions relating to a project authority authorized pursuant to KRS 175B.035 :
      1. To request establishment of a project authority;
      2. To review and approve project financing plans and development agreements;
      3. To monitor activities of project authorities; and
      4. To enter into an agreement with the project authority; and
    3. Take the following actions relating to a public-private partnership authorized pursuant to KRS 175B.037 :
      1. To request establishment of a public-private partnership;
      2. To review and approve project financing plans;
      3. To monitor activities of public-private partnerships; and
      4. To enter into an agreement as a part of or with a public-private partnership, if necessary.
  2. The state authority, when authorized pursuant to subsection (10) of this section, may participate as a developing or issuing authority, or both, in the development, construction, or financing of a project by a bi-state or project authority, or by a public-private partnership, if necessary. If the state authority participates as a developing or issuing authority, the state authority shall have the powers and duties established in KRS 175B.025 as they apply to that project.
  3. The state authority, as a function of its oversight of any other authority created pursuant to this chapter, shall report before the first issuance of bonds and no less than semiannually thereafter to the Capital Projects and Bond Oversight Committee and to the Interim Joint Committee on Appropriations and Revenue of the Legislative Research Commission, on any projects currently proposed or under development by each authority. Current and proposed levels of bonding for each project shall be reviewed by the Capital Projects and Bond Oversight Committee in accordance with KRS 45.794 before the bonds shall be issued.
  4. The state authority, when proposing a project pursuant to this chapter, shall to the extent practical consult with the officials representing the units of local government in which the proposed project is to be located in order to obtain the advice and input on the local impact of the proposed project, including information regarding land use planning, transportation planning, economic development, and any other factors having a direct impact to the local community.
  5. The state authority may receive an unsolicited proposal if the proposal contains:
    1. An executive summary of no more than three (3) pages that details the revenue source for the proposed project, the amount of revenue expected to be generated by the project, and the project costs;
    2. A certification from a financial expert stating that the contents of the unsolicited proposal are true and correct; and
    3. A fee for the review of the executive summary.
  6. The state authority shall respond to a person offering an unsolicited proposal notifying the person that the proposal has been rejected or approved for further review.
  7. If the state authority approves an unsolicited proposal for further review, the state authority shall independently verify that it is in the best interest of the Commonwealth.
  8. If the state authority approves a proposal for further review, the person making the unsolicited proposal shall pay all costs of evaluating the unsolicited proposal incurred by the state authority and the cabinet pursuant to an agreement negotiated between the state authority and the person making the unsolicited proposal.
  9. If the state authority and the cabinet agree that an unsolicited proposal is in the best interest of the Commonwealth, the state authority, with the assistance of the cabinet, shall begin a competitive procurement process to implement some or all of the concepts contained in the unsolicited proposal.
    1. Notwithstanding any other provision of this chapter, the following actions shall not take effect until ratified by the General Assembly:
      1. The creation of a bi-state authority;
      2. The creation of a project authority;
      3. The creation of a public-private partnership;
      4. The modification or amendment of the scope of any project; and
      5. The development of any project undertaken entirely by the state authority.
    2. If any action described in paragraph (a) of this subsection is not ratified by the General Assembly, the creation, approval, or modification shall be considered void.
  10. The state authority shall promulgate an administrative regulation in accordance with KRS Chapter 13A to determine the fee required by subsection (5)(c) of this section for the review of the executive summary.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 78, effective June 26, 2009; 2016 ch. 67, § 8, effective April 8, 2016; 2017 ch. 132, § 8, effective March 27, 2017.

175B.025. Powers and duties of developing authority and issuing authority — Project development restrictions.

  1. The developing authority and issuing authority may be the same authority or separate authorities, depending on the needs of the project. The developing authority and issuing authority shall have the following powers and duties, as necessary to complete, operate, and maintain the project, subject to the limitations provided in KRS 175B.020(10):
    1. To enter into agreements as necessary to facilitate the development, construction, maintenance, operation, repair, or financing of projects;
    2. To directly or indirectly construct, reconstruct, maintain, repair, operate, and regulate projects within the Commonwealth, or contract with another entity for these services;
    3. To issue project revenue bonds of the issuing authority payable solely from the tolls, revenues, rentals, funds from any grant anticipation revenue vehicle (GARVEE), funds appropriated by the state or federal government, and any other funds pledged for their payment, for the purpose of paying all or any cost of a project, and to refund any of its bonds;
      1. To fix, revise, charge, and collect tolls for transit over any project constructed by it, and for any ancillary or connector routes affected by the project.
      2. No tolls shall be authorized by any developing or issuing authority as a part of any development agreement or any financial plan for:
        1. Any project involving the federal interstate highway system that connects the Commonwealth with the State of Ohio; or
        2. Any project constituting a fully or partially controlled highway, whether or not involving the federal interstate highway system, that connects the Commonwealth with the State of Ohio, including but not limited to a qualifying highway that constitutes a bypass of a major metropolitan area;
    4. To establish and enforce rules and regulations for the use of a project;
    5. To acquire and hold any of the following in the name of the developing authority, and to dispose of them as the developing authority deems necessary:
      1. Real and personal property, including lands and structures;
      2. Rights;
      3. Rights-of-way;
      4. Franchises;
      5. Easements and other interests in lands, including lands lying under water and riparian rights; and
      6. Any other item or asset necessary to accomplish its mission;
    6. To designate the locations and establish, limit, and control points of access to the project, and to prohibit access to the project from any undesignated point;
    7. To make and enter into contracts and agreements in the performance of duties and the execution of powers under this chapter;
    8. To employ any consultants and to fix their compensation;
    9. To receive and accept contributions and grants from any source for or in aid of the construction of a project or the operation of the developing or issuing authority;
    10. To accept interest rate subsidies, rebates, tax credits, or guarantees as provided in the American Recovery and Reinvestment Act of 2009, or as may be provided in subsequent federal legislation providing support to or credit enhancement of governmental obligations;
    11. To expend any funds provided under this chapter in advertising the facilities and services of a project to the traveling public;
    12. To enter into lease agreements with the department; and
    13. To do acts necessary or convenient to carry out the powers expressly granted in this chapter.
  2. Projects may be developed in conjunction with other road development efforts of the Commonwealth that are in compliance with Federal Highway Administration requirements.
  3. Projects developed pursuant to this chapter shall:
    1. Comply with the requirements of KRS Chapters 45A, 174, and 176;
    2. Be included in the most recently enacted biennial highway construction plan; and
    3. Comply with all relevant requirements of the Federal Highway Administration.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 79, effective June 26, 2009; 2016 ch. 67, § 14, effective April 8, 2016.

175B.030. Projects connecting Kentucky and an adjoining state — Bi-state authority — Formation — Members — Bi-state agreement — Financial plan — Legislative findings and declarations — Approval of project connecting Kentucky and Ohio.

      1. This section shall apply to any project that connects Kentucky with any state that adjoins the Commonwealth. A proposal to construct a project that connects Kentucky with an adjoining state shall be contained in a financing plan prepared pursuant to subsection (6) of this section. If approved, the project shall be constructed under the supervision of the state authority, a bi-state authority, or both, and may be financed by the state authority, a bi-state authority, a public-private partnership, or any combination of these. (1) (a) 1. This section shall apply to any project that connects Kentucky with any state that adjoins the Commonwealth. A proposal to construct a project that connects Kentucky with an adjoining state shall be contained in a financing plan prepared pursuant to subsection (6) of this section. If approved, the project shall be constructed under the supervision of the state authority, a bi-state authority, or both, and may be financed by the state authority, a bi-state authority, a public-private partnership, or any combination of these.
      2. If the state authority, operating pursuant to KRS 175B.020 , participates in any capacity in the construction or financing of a project that connects Kentucky with an adjoining state, the state authority may assume all or part of the role of the bi-state authority relative to that project.
    1. Subsections (2) to (4) of this section shall only apply to a bi-state authority.
    2. Subsections (1) and (5) to (8) of this section shall apply to both a bi-state authority and a public-private partnership.
    1. A local government that contains a portion of a proposed project may, by resolution of its governing body, request that its chief executive officer and the Governor appoint a group of Kentucky members to negotiate with a similar group from an adjoining state for the purpose of proposing the creation of a bi-state authority composed of members from both states, recognized under the laws of both states, and existing for the purpose of financing, constructing, and operating a project or projects mutually beneficial to both states.
    2. If established, the Kentucky membership of the bi-state authority shall consist of seven (7) members, three (3) of whom shall be appointed by the Governor, and four (4) of whom shall be appointed by the chief executive of the local government in which the project is located. The four (4) local government appointees shall be residents of the county in which the project is located. If a project is located in a consolidated local government, no more than two (2) appointees shall reside in the same Kentucky senatorial district. If portions of the project are located in more than one (1) local government, the chief executive of the county or consolidated local government having the largest population shall make the appointments authorized in this paragraph.
    3. Any proposed agreement to establish a bi-state authority shall be presented to the state authority for approval. If the state authority approves the agreement, it shall be submitted to the General Assembly for ratification. If the agreement is ratified by the General Assembly, the state authority shall authorize the establishment of a bi-state authority and shall enter into an agreement with the adjoining state for the creation of a bi-state authority.
    1. Kentucky members of a proposed bi-state authority who are appointed by the Governor shall be confirmed by the Senate in accordance with KRS 11.160 . Members appointed by the chief executive of the local government shall be confirmed by the governing body of the local government.
    2. At least two (2) of the Governor’s appointees and two (2) of the chief executive’s appointees shall be familiar with road and bridge design or financing and administration of transportation infrastructure projects.
    3. Members of a bi-state authority appointed by the Governor shall serve for four (4) years, except that initial appointments shall be as follows:
      1. One (1) appointee shall serve a term of two (2) years;
      2. One (1) appointee shall serve a term of three (3) years; and
      3. One (1) appointee shall serve a term of four (4) years.
    4. The governing body of the local government requesting formation of the bi-state authority shall, by resolution, establish term lengths for the initial and succeeding members who are locally appointed, with each term not to exceed four (4) years.
    5. Members of a bi-state authority representing the Commonwealth may be reappointed upon the expiration of their terms. Members reappointed shall be reconfirmed in the same manner as newly appointed members.
    1. An agreement establishing a bi-state authority shall at a minimum:
      1. Establish the total number of members of the bi-state authority;
      2. Establish staffing and funding to support the work of the bi-state authority;
      3. Designate the process for selecting a presiding officer of the bi-state authority, which shall include a requirement that a member from each state share the duties of presiding; and
      4. Require the approval of a majority of the members from each state before any action may be taken or any change may be made by the bi- state authority.
    2. A bi-state authority created pursuant to this section shall take the legal form necessary to conform to the laws of both states. The Commonwealth shall consider the bi-state authority to be an independent de jure municipal corporation, constituting a governmental agency and instrumentality of the appropriate jurisdictions. The bi-state authority shall adopt a name indicative of its location and purpose.
    3. Any bi-state agreement approved pursuant to this section may be presented to the United States Congress for consent thereof by joint resolution as provided in Article 1, Section 10, Clause 3 of the United States Constitution.
    1. Members of a bi-state authority appointed from the Commonwealth shall be considered public servants subject to KRS Chapter 11A.
    2. Members of a bi-state authority appointed from the Commonwealth shall receive no compensation for their services, but shall be entitled to reimbursement for all reasonable expenses necessary and incidental to the performance of their duties and functions as members of the bi-state authority.
    3. The following individuals or entities shall be prohibited from entering into any contract or agreement with a bi-state authority or a public-private partnership:
      1. Any member of the bi-state authority appointed to represent the Commonwealth or any member of the state authority, a project authority, or a public-private partnership;
      2. Any spouse, child, stepchild, parent, stepparent, or sibling of a member of the bi-state authority appointed to represent the Commonwealth or any spouse, child, stepchild, parent, stepparent, or sibling of a member of the state authority, a project authority, or a public-private partnership; and
      3. Any corporation, limited liability entity, or other business entity of which a person identified in subparagraph 1. or 2. of this paragraph is an owner, member, or partner or has any other ownership interest.
    4. A bi-state authority or public-private partnership shall comply with the procurement laws of both states that are a party to the agreement creating the bi-state authority or public-private partnership, including the provisions of KRS Chapter 45A, in the development of a project and the procurement of goods and services.
    5. A bi-state authority or public-private partnership shall comply with the laws of both states concerning the inspection and disclosure of public records, including KRS 61.870 to 61.884 .
    6. A bi-state authority or public-private partnership shall comply with the laws of both states concerning the conduct of open meetings, including KRS 61.805 to 61.850 .
    1. Prior to the execution of any agreements for the construction of the project, the state authority, the bi-state authority, a public-private partnership, or any combination of these, if appropriate, shall prepare a financial plan specifying the construction and financing parameters of the project, including:
      1. A timeline for construction of the project, including financing requirements throughout the construction of the project;
      2. The amount and duration of per-vehicle tolls;
      3. Expected appropriations from the General Assembly to be used for project costs; however, no financial plan shall be submitted or approved which seeks or purports to bind any future General Assembly to appropriate any moneys beyond those appropriated in the most recently enacted biennial highway construction plan;
      4. Other sources of funds and expected amounts; and
      5. Other provisions relating to the construction and financing of the project.
      1. If the financial plan is prepared by a bi-state authority, the Kentucky members of the bi-state authority shall consult with the involved local governments in Kentucky, the department, and the Finance and Administration Cabinet, Office of Financial Management, during the development of the financial plan. Upon completion and approval of the financial plan by the bi-state authority, the plan shall be submitted to the state authority for approval.
      2. If the financial plan is prepared by the state authority, the state authority shall consult with the involved local governments in Kentucky, the department, and the Finance and Administration Cabinet, Office of Financial Management, during the development of the financial plan. If the financial plan is viable based on all information available to the state authority, the state authority shall recommend the plan.
      3. If the financial plan is prepared by a public-private partnership, the public-private partnership shall consult with the involved local governments in Kentucky, the department, and the Finance and Administration Cabinet, Office of Financial Management, during the development of the financial plan. Upon completion and approval of the financial plan by the public-private partnership, the plan shall be submitted to the state authority for approval.
    2. The state authority shall not approve or recommend a financial plan which seeks or purports to bind any future General Assembly to appropriate any moneys beyond those appropriated in the most recently enacted biennial highway construction plan. If the financial plan is approved or recommended by the state authority, the cabinet and, as necessary, other state agencies or local governments may enter into a development agreement as provided in subsection (7) of this section with all necessary parties for the development of a project.
    3. Every financial plan prepared pursuant to this section shall include an evaluation of the ability of a potential contractor or service provider to quickly respond to the needs presented in a major transportation project, and the importance of economic development opportunities represented by the construction of any project under this chapter. In evaluating proposals, preference shall be given to a plan that includes the involvement of small businesses as subcontractors, to the extent that small businesses can provide services in a competitive manner, unless any preference interferes with the qualification for federal funds.
    1. Upon approval or recommendation of the financial plan as provided in subsection (6) of this section, a development agreement may be entered into establishing the terms and conditions under which a project will be undertaken and the duties, responsibilities, powers, and authorities of the parties to the agreement. The development agreement shall, at a minimum:
      1. Require the bi-state authority or public-private partnership to submit an annual report to the cabinet and the Legislative Research Commission;
      2. Require that an annual audit of the bi-state authority or public-private partnership be performed by a certified public accountant;
      3. Include the relevant provisions from the financial plan required by subsection (6) of this section;
      4. Include provisions detailing the duties, responsibilities, and obligations of each party in relation to the financing, development, operation, and maintenance of the project, and the servicing and retirement of all bonds;
      5. Establish limits on any reserve funds created for operation, maintenance, or bond servicing, which shall be at a level to adequately operate and maintain the project and ensure proper bond servicing;
      6. Prohibit the amendment of the project or the financial plan without the prior evaluation and approval by the state authority. No amendment shall be approved that seeks or purports to bind any future General Assembly to appropriate any moneys beyond those appropriated in the most recently enacted biennial highway construction plan;
      7. If applicable, establish a process for the transfer of ownership of the portion of the project that is within the Commonwealth to the Commonwealth upon retirement of all bonds associated with the project or, if the project utilizes a public-private partnership, upon termination of that partnership; and
        1. For a bi-state authority, require the approval of a majority of the members from each state before any action may be taken or any changes may be made by the bi-state authority; or
        2. For a public-private partnership, require approval of the cabinet before any action may be taken or any changes may be made by the public-private partnership.
    2. The parties to the agreement from the Commonwealth shall consult with the department and the Finance and Administration Cabinet, Office of Financial Management, in the development of the agreement.
    3. Additional agreements may be executed, as necessary to complete the project.
    4. The development agreement may take the form of a public-private partnership agreement.
  1. The General Assembly hereby finds and declares that in carrying out the functions, powers, and duties as prescribed in this chapter, a bi-state authority or public- private partnership authorized under this section will be performing essential public and government functions that improve the public welfare and prosperity of the people of the Commonwealth by promoting the availability of and enhancing accessibility to improved transportation services within the Commonwealth.
  2. The state authority shall not enter into a public-private partnership related to a project connecting the Commonwealth with the State of Ohio unless the General Assembly expressly authorizes it by passing a joint resolution.

HISTORY: Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 80, effective June 26, 2009; 2016 ch. 67, § 9, effective April 8, 2016; 2017 ch. 132, § 9, effective March 27, 2017.

175B.035. Development of projects within Kentucky — Project authority — Financial plan — Submission of project for legislative ratification — Membership of project authority — Development agreement — Commonwealth owns project upon bond retirement or termination of partnership.

  1. Potential projects that are within Kentucky may be developed by a project authority as provided in this section, or by a public-private partnership as provided in KRS 175B.037 .
  2. A local government that contains a portion of a proposed project may, by resolution of its governing body, request the state authority to evaluate the establishment of a project authority or a public-private partnership for the purpose of developing a project.
  3. The state authority may request that the department evaluate the proposed project by preparation of a financial plan evaluating all aspects of the proposed project, including:
    1. The most effective location for the project;
    2. The impact on local governments and citizens at the location of or along the path of the project;
    3. A detailed analysis of the proposed cost of the project;
    4. The potential economic impact to the areas affected by the project;
    5. The anticipated level of use of the project;
    6. The amount and duration of per-vehicle tolls;
    7. Expected appropriations from the General Assembly to be used for the project; however, no financial plan shall be submitted or approved which seeks or purports to bind any future General Assembly to appropriate any moneys beyond those appropriated in the most recently enacted biennial highway construction plan;
    8. The ability of a potential contractor or service provider to quickly respond to the needs presented in a major transportation project, and the importance of economic development opportunities represented by the construction of any project under this chapter. In evaluating proposals, preference shall be given to a plan that includes the involvement of small businesses as subcontractors, to the extent that small businesses can provide services in a competitive manner, unless any preference interferes with the qualification for federal funds;
    9. Other sources of funds and expected amounts; and
    10. Any other provisions relating to the construction and financing of the project.
  4. If, based on the project evaluation prepared pursuant to subsection (3) of this section, the state authority and the department determine that the development of the project is economically feasible, the state authority shall submit the proposal to the General Assembly for ratification. If ratified by the General Assembly, the state authority may request that the Governor establish a project authority in accordance with the following:
    1. The project authority shall be established as an independent de jure municipal corporation and political subdivision of the Commonwealth constituting a governmental agency and instrumentality of the Commonwealth, with the power to contract and be contracted with, acquire and convey property, sue and be sued, and exercise all of the usual powers of corporations not inconsistent with the authority’s specifically enumerated purpose and duties;
    2. The project authority shall adopt a name that includes the name of the project and the words “Project Authority”;
    3. The project authority shall be composed of seven (7) members, three (3) of whom shall be appointed by the Governor and confirmed by the Senate in accordance with KRS 11.160 , and four (4) of whom shall be appointed by the chief executive of the local government that requested establishment of the project authority and confirmed by resolution of the local government’s governing body;
    4. Each member of the project authority shall be appointed for a period of four (4) years, except that in making initial appointments, the Governor shall appoint members for one (1), three (3), and four (4) years, and the chief executive shall appoint two (2) members each for two (2) and four (4) years; and
    5. At least one (1) of the Governor’s appointees and two (2) of the chief executive’s appointees shall be familiar with road and bridge design or financing and administration of transportation infrastructure projects.
    1. Within ninety (90) days of its establishment under subsection (4) of this section, the project authority shall convene and organize. The project authority shall elect a chair and a vice chair, who shall be members of the project authority and elected by a majority of the project authority members. The project authority shall appoint a secretary and a treasurer who shall not be members of the project authority, each of whom shall serve at the pleasure of the project authority and shall receive compensation as determined and paid by the project authority.
    2. The treasurer shall give bond in an amount prescribed by the project authority to the project authority and the state conditioned upon a faithful accounting for all the funds coming into the treasurer’s custody, with corporate surety given by a surety company qualified to do business in the state, the premium of which shall be paid by the project authority.
    3. The project authority shall maintain an office, and the secretary of the project authority shall maintain in that office complete records of all the project authority’s actions and proceedings, which shall be considered open records under KRS 61.870 to 61.884 .
    4. A project authority shall comply with the applicable provisions of KRS Chapter 45A in the development of a project and the procurement of goods and services.
    5. The meetings of a project authority shall be considered open meetings pursuant to KRS 61.805 to 61.850 .
  5. A majority of the members of a project authority shall constitute a quorum for the transaction of business. The members of a project authority shall receive no compensation for their services in that capacity, but shall be entitled to reimbursement for all reasonable expenses necessarily incurred in connection with performance of their duties and functions as members.
    1. Members of a project authority shall be considered public servants subject to the provisions of KRS Chapter 11A.
    2. The following individuals or entities shall be prohibited from entering into any contract or agreement with a project authority or a public-private partnership:
      1. Any member of a project authority, a bi-state authority, the state authority, or a public-private partnership;
      2. Any spouse, child, stepchild, parent, stepparent, or sibling of a member of a project authority, a bi-state authority, the state authority, or a public- private partnership; and
      3. Any corporation, limited liability entity, or other business entity of which a person identified in subparagraph 1. or 2. of this paragraph is an owner, a member, a partner, or has any other ownership interest.
    1. The state authority shall enter into a development agreement with a project authority or a public-private partnership to establish the terms and conditions under which a project will be undertaken. No financial plan shall be submitted or approved which seeks or purports to bind any future General Assembly to appropriate any moneys beyond those appropriated in the most recently enacted biennial highway construction plan.
    2. The development agreement shall establish the duties, responsibilities, and powers of the state authority, the project authority, a public-private partnership, and, as necessary, the cabinet with regard to the project.
    3. The development agreement shall include, at a minimum, all information necessary relating to the creation, development, operation, and disposal of the project. No financial plan shall be submitted or approved which seeks or purports to bind any future General Assembly to appropriate any moneys beyond those appropriated in the most recently enacted biennial highway construction plan.
    4. After the proposed project has been approved and set forth in the development agreement, it shall not be changed or expanded without evaluation and approval by the state authority and ratification by the General Assembly.
    5. Additional agreements may be executed, as necessary, between the state authority, the project authority, a public-private partnership, the department, and the cabinet.
  6. The provisions of this chapter relating to the duties, responsibilities, powers, and authorities of the state authority shall apply to a project authority or a public-private partnership to the extent that the duties, responsibilities, powers, and authorities are required for the project authority or public-private partnership to carry out its duties and responsibilities under a development agreement.
  7. Upon retirement of all bonds associated with a project developed under this section or, if the project utilizes a public-private partnership, upon termination of that partnership, the ownership of the project shall be transferred to the Commonwealth pursuant to KRS 175B.095 .

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 81, effective June 26, 2009; 2016 ch. 67, § 12, effective April 8, 2016; 2017 ch. 132, § 10, effective March 27, 2017.

175B.037. Use of public-private partnership — Requirements — Administrative regulations.

  1. The state authority, a bi-state authority, or a project authority may, with approval of the General Assembly pursuant to KRS 175B.020(10), and if applicable, KRS 175B.030(9), utilize a public-private partnership.
  2. An authority utilizing a public-private partnership shall continue to be responsible for oversight of any function authorized by this chapter that is delegated to or otherwise performed by a public-private partnership.
  3. A public-private partnership shall not be used to circumvent any requirements or restrictions placed upon any authority pursuant to this chapter.
  4. An authority proposing to utilize a public-private partnership shall include in the financial plan required by KRS 175B.030 or 175B.035 :
    1. The parameters of the public-private partnership agreement;
    2. The duties and responsibilities to be performed by the private partner or partners;
    3. The methods of oversight to be employed by the authority;
    4. The duties and responsibilities of the project that are to be performed by the authority, the cabinet, and any other partners to the agreement; and
    5. Other information required by the state authority or the cabinet to evaluate the financial plan and the proposed public-private partnership.
  5. A private entity desiring to be a private partner shall demonstrate to the satisfaction of the state authority and the cabinet that it is capable of performing any function to be authorized by the public-private partnership.
  6. A public-private partnership authorized or utilized pursuant to this section shall be subject to KRS 176B.030(5) to (8).
  7. The cabinet shall promulgate administrative regulations detailing the procurement approach and proposal review process to be used for a public-private partnership by December 31, 2016.

HISTORY: 2016 ch. 67, § 10, effective April 8, 2016.

175B.040. Tolls and other revenues to be derived from projects — Sinking fund — Pledges of sinking fund — Use and disposition of moneys — Project users to pay appropriate toll — Penalties — Confidentiality of toll collection customer account information.

  1. If imposed as part of the financing plan, tolls shall be fixed and adjusted by the developing authority to provide a fund sufficient with other revenues, if any, to:
    1. Pay the cost of maintaining, repairing, and operating the project, unless the cost or any part thereof is being paid by the Commonwealth as authorized by this chapter;
    2. Pay the principal of and interest on the project revenue bonds; and
    3. Create reserves not to exceed amounts specified in the development agreement.
  2. Unless a transfer of ownership of a project occurs pursuant to KRS 175B.095 or the project utilizes a public-private partnership pursuant to KRS 175B.030 and 175B.037 , the developing authority shall at all times maintain ownership and control of all tolls and other revenues generated by the project. Tolls shall not be subject to supervision or regulation by any other department, division, authority, board, bureau, or agency of a local government or the Commonwealth.
    1. The tolls and all other revenues derived from the project, except those revenues necessary to:
      1. Pay the cost of maintenance, repair, and operation;
      2. Establish and maintain reserves as may be provided for in the authorization of the issuance of the project revenue bonds or in the trust indenture securing the project revenue bonds; or
      3. Satisfy the requirements of a public-private partnership agreement or a development agreement;

        shall be set aside in a sinking fund which shall be pledged to, and charged with, the payment of principal and interest on the project revenue bonds as they become due, and the redemption price or the purchase price of project revenue bonds retired by call or purchase as provided in the authorization of issuance.

    2. The pledge of the sinking fund shall be valid and binding from the time when the pledge is made.
    3. The tolls or other revenues received and pledged by the developing authority shall immediately be subject to the lien of the pledge without any physical delivery or further action, and the lien on any pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the developing authority, whether the parties have received notice or not.
    4. Neither the proceedings nor any trust indenture by which a pledge is created need be filed or recorded, except in the records of the issuing authority.
    5. The use and disposition of moneys to the credit of the sinking fund shall be subject to the provisions of the proceedings authorizing the issuance of the project revenue bonds or the trust indenture.
    1. Every person utilizing a project developed and tolled under this chapter shall pay the appropriate toll.
    2. Any person who violates the provisions of this subsection shall be subject to the provisions of administrative regulations promulgated pursuant to KRS 175B.015(12).
  3. Upon receiving notice, the cabinet shall suspend or withhold the annual registration of a vehicle used in the commission of a toll violation until:
    1. The fine, charge, or assessment has been paid; or
    2. The violation of subsection (4) of this section has been determined not to have occurred.
    1. Toll collection customer account information shall be confidential and not subject to disclosure under KRS 61.870 to 61.884 . Contracts relating to toll collection for a project developed and tolled under this chapter shall ensure the confidentiality of all toll collection customer account information.
    2. For the purposes of this section, “toll collection customer account information” means any information collected or received from or about any person who is assessed a toll, including contact information, payment information, trip data, and any other relevant data.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 82, effective June 26, 2009; 2013, ch. 38, § 2, effective June 25, 2013; 2016 ch. 67, § 11, effective April 8, 2016.

175B.045. Required standards for completed projects.

  1. Each project, upon completion, shall continuously constitute a link between parts of the highway system of the Commonwealth, or between the Commonwealth and any state adjoining the Commonwealth, and shall always be open to public travel, subject to any tolls or restrictions established by the developing authority. All projects shall be subject to evaluation and inspection by the department, and shall meet the standards for public roadways established by the department.
  2. Projects may be developed in coordination with existing and proposed public transit systems.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 83, effective June 26, 2009; 2016 ch. 67, § 15, effective April 8, 2016.

175B.050. Permitted construction activities — Permitted entry upon lands, waters, and premises for necessary construction work — Administrative regulations concerning public utility facilities.

  1. A project developed by an authority under this chapter may include construction of grade separations at intersections of any project or projects with public highways and changing and adjusting the lines and grades of the highways so as to accommodate them to the design of the grade separation, with the approval of the department.
    1. If a project developed by an authority results in the need to change the location or grade of any portion of any public highway, it shall be reconstructed at a location that the authority and the department deem most favorable.
    2. Any highway relocated under this subsection shall be rebuilt of substantially the same type and in as good condition as the original highway.
  2. Any public highway affected by the construction of any project may be vacated or relocated as a part of the project, with the approval of the department, in the manner provided by law for the vacation or relocation of public roads.
    1. The developing authority and its authorized agents and employees may with proper notice enter upon any lands, waters, and premises in the Commonwealth for the purpose of making any surveys, soundings, drillings, and examinations necessary for the purposes of this chapter. This entry shall not be deemed a trespass, nor shall an entry for these purposes be deemed an entry under any condemnation proceedings which may be then pending.
    2. The developing authority shall reimburse the owners for any actual damage resulting to lands, waters, and premises as a result of these activities on behalf of the developing authority.
    1. The state authority may promulgate administrative regulations in accordance with KRS Chapter 13A for the installation, construction, maintenance, repair, renewal, relocation, and removal of public utility facilities.
    2. If the developing authority determines that it is necessary for any public utility facilities which now are located in, on, along, over, or under the project to be relocated or be removed, the public utility owning or operating the facilities shall relocate or remove them in accordance with the requirements of the Public Service Commission.
    3. In case of a relocation or removal of facilities, the public utility owning or operating the facility and its successors or assigns may maintain and operate these facilities and the necessary appurtenances in the new location, for as long a period and upon the same terms and conditions as it had the right to maintain and operate the facilities in the former location.
      1. A utility may establish its lines or properties within the right-of-way of a project which has been constructed or is owned, maintained, or operated by an authority only upon approval by the authority.
      2. A utility may connect its lines with businesses and other installations permitted by an authority to exist upon the right-of-way of a project.
  3. A developing authority may contract with any person, partnership, association, or corporation desiring the incidental use of any part of the project, including the right-of-way adjoining the project, for the limited purpose of placing telecommunications equipment, power lines, or other utilities, and to fix the terms, conditions, rents, and rates of charges for that use.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 84, effective June 26, 2009.

175B.055. Agreements for use of project authority lands.

The Commonwealth may enter into agreements with an authority regarding the use of any lands owned by it, including lands lying under water, which are deemed by the authority to be necessary for the construction or operation of any project.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 85, effective June 26, 2009.

175B.060. Issuance of project revenue bonds — Use of bond proceeds.

      1. An issuing authority may, by resolution, authorize the issuance of project revenue bonds for the purpose of paying the cost of a project. (1) (a) 1. An issuing authority may, by resolution, authorize the issuance of project revenue bonds for the purpose of paying the cost of a project.
      2. The principal of and the interest on the project revenue bonds shall be payable solely from the funds provided for the payment.
      3. The bonds of each issue:
        1. Shall be dated;
        2. Shall bear interest at a rate or method of determining rates;
        3. Shall mature at a time not exceeding forty (40) years from their issuance date, as determined by the issuing authority; and
        4. May be redeemable before maturity, at the option of the issuing authority, at a price and under terms and conditions as may be fixed by the issuing authority prior to the issuance of the project revenue bonds.
      4. The issuing authority shall:
        1. Determine the form of the bonds;
        2. Fix the denomination of the bonds; and
        3. Fix the place of payment of principal and interest, which may be at any bank or trust company within or without the Commonwealth.
      1. The project revenue bonds shall be signed by the chairman or other presiding officer of the issuing authority or shall bear that officer’s facsimile signature, and the seal of the issuing authority or a facsimile shall be affixed to the project revenue bonds and attested by the secretary of the issuing authority.
      2. If any officer whose signature or a facsimile of whose signature appears on any project revenue bonds ceases to be an officer before the delivery of the project revenue bonds, the signature or facsimile shall be valid and sufficient for all purposes as if the officer had remained in office until the delivery.
      3. All project revenue bonds issued under this chapter shall have all the qualities and incidents of negotiable instruments under the negotiable instruments law of the Commonwealth.
      4. The project revenue bonds shall be issued in registered form.
      5. The issuing authority may sell the project revenue bonds in a manner, either at public or private sale, and for a price as it determines will best carry out the purposes of this chapter.
    1. The proceeds of the project revenue bonds of each issue shall be used solely for the payment of the cost of the project or projects for which the bonds were issued, and shall be disbursed in a manner and under the restrictions the issuing authority provides in the resolution authorizing the issuance of the project revenue bonds or in the trust agreement securing the project revenue bonds.
    2. If the proceeds of the project revenue bonds of any issue, by error of estimates or otherwise, are less than the cost of the project or projects, additional project revenue bonds may be issued to provide the amount of the deficit, and, unless otherwise provided in the resolution authorizing the issuance of the project revenue bonds or in the trust agreement securing the project revenue bonds, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the project revenue bonds first issued.
    3. If the proceeds of the project revenue bonds of any issue exceed the cost, the surplus shall be deposited to the credit of the sinking fund required by KRS 175B.040(3)(a) for the project revenue bonds or any account or accounts the issuing authority shall have provided for in the proceedings or trust indenture authorizing and securing the project revenue bonds.
  1. Project revenue bonds shall be issued in compliance with KRS 42.420 and 45A.840 to 45A.879 . Except as provided in KRS 42.420 and 45A.840 to 45A.879 , project revenue bonds may be issued under this chapter without obtaining the consent of any local government, department, division, authority, board, bureau, or agency of the Commonwealth, or of the Commonwealth, and without any other proceedings or conditions other than those proceedings or conditions which are specifically required by this chapter.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 86, effective June 26, 2009.

175B.065. Project revenue bonds not a debt or pledge of faith and credit of the Commonwealth or its subdivisions — Statement on face of bonds.

  1. Project revenue bonds issued by an authority under this chapter shall not constitute a debt of the Commonwealth or any of its political subdivisions, or a pledge of the faith and credit of the Commonwealth or any of its political subdivisions. Project revenue bonds issued pursuant to this chapter, shall be payable solely from the funds provided for in this chapter including but not limited to the funds described in KRS 175B.025(1)(c).
  2. Project revenue bonds shall contain on their face a statement to the effect that neither the Commonwealth nor the issuing authority shall be obligated to pay the bonds or the interest thereon, except from any and all revenues associated with the project for which they are issued, and that neither the faith and credit nor the taxing power of the Commonwealth is pledged to the payment of the principal of or the interest on these project revenue bonds.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 87, effective June 26, 2009.

175B.070. Project revenue bonds may be secured by trust agreement — Permissible provisions.

    1. Any project revenue bonds issued under this chapter may be secured by a trust agreement by and between the issuing authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth. Subject to the restrictions established in KRS 175B.060 , the trust indenture or other document providing for the issuance of the project revenue bonds may pledge or assign the tolls and other revenues to be received, but shall not convey or mortgage any project or any part of a project.
    2. The trust indenture or other document may contain any provisions for protecting and enforcing the rights and remedies of the bondholders as are reasonable and proper and not in violation of law, including covenants setting forth the duties of the developing authority and the issuing authority in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation, and insurance of the project for which the project revenue bonds were authorized; the rates of toll or rentals to be charged; and the custody, safeguarding, and application of all moneys.
  1. Any bank or trust company incorporated under the laws of the Commonwealth which acts as depository of the proceeds of project revenue bonds or of revenues may furnish indemnifying project revenue bonds or pledge securities as the issuing authority requires. Any such trust indenture may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. Any trust indenture or proceedings may contain any other provisions that the issuing authority deems reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of the trust indenture or proceedings may be treated as a part of the cost of the operation of the project.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 88, effective June 26, 2009.

175B.075. Moneys received under chapter are trust funds — Permitted investment of project revenue bond proceeds.

  1. All moneys received under this chapter, whether as proceeds from the sale of project revenue bonds or revenues, shall be trust funds to be held and applied solely as provided in this chapter. The trust indenture or any other document authorizing the issuance of project revenue bonds or the collection of any revenues shall provide that any officer, bank, or trust company with which the moneys are deposited shall act as trustee of the moneys and shall hold and apply them for the purposes outlined in this chapter, subject to the provisions of this chapter and the proceedings or trust indenture.
  2. The proceeds of project revenue bonds shall only be invested in direct obligations of the United States of America and direct federal agency obligations or other similar obligations to the extent that the full faith and credit of the United States of America is pledged for the timely payment thereof. Direct obligations shall include money market mutual funds that invest solely in the obligations referenced in this subsection.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 89, effective June 26, 2009.

175B.080. Operation and maintenance of projects constitute performance of essential governmental functions — Tax-free status of projects and project revenue bonds.

The exercise of the powers granted by this chapter shall be in all respects for the benefit of the people of the Commonwealth, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions. Because the operation and maintenance of projects by any authority created pursuant to this chapter will constitute the performance of essential governmental functions:

  1. An authority shall not be required to pay any taxes or assessments upon any project or any property acquired or used by the authority under this chapter or upon the income therefrom; and
  2. The project revenue bonds issued under this chapter, their transfer, and the income therefrom shall at all times be free from taxation within the Commonwealth.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 90, effective June 26, 2009.

175B.085. Project revenue bonds are authorized investment securities.

Project revenue bonds issued by an authority under this chapter shall be securities in which all public officers and public bodies of the Commonwealth and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, trustees and other fiduciaries, and all other persons who are authorized to invest in bonds or other similar obligations, including capital in their control or belonging to them, are authorized to invest. The project revenue bonds shall be securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the Commonwealth for any purpose for which the deposit of bonds or other obligations of the Commonwealth is now or may hereafter be authorized by law.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 91, effective June 26, 2009.

175B.090. Maintenance and repair of projects — Restoration of or compensation for damaged private property — Permitted leases.

  1. Each project constructed or operated under this chapter shall be maintained and kept in good condition and repair by the developing authority, which may contract with the department or with any local highway department for maintenance of a project.
  2. All private property damaged or destroyed in carrying out the powers granted by this chapter shall be restored or repaired and placed in its original condition as nearly as practicable or adequate compensation shall be made out of funds provided under this chapter.
  3. All counties, cities, towns, and other political subdivisions and all public agencies and commissions of the Commonwealth, notwithstanding any contrary provision of law, may lease, lend, grant, or convey to an authority any real property which may be necessary or convenient to the effectuation of the authorized purposes of the authority, including public roads and other real property already devoted to public use.
  4. In obtaining property under this chapter, an authority shall pursue the acquisition under the procedures and mandates of KRS 416.540 to 416.670 .

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 92, effective June 26, 2009.

175B.095. Evaluation of project condition prior to bond retirement — Evaluation of tolls upon transfer of ownership — Transfer of funds — Actions required prior to and upon bond retirement or termination of partnership.

  1. Not more than one (1) year prior to the scheduled retirement of all bonds issued to finance a project, the department shall undertake an evaluation of the condition of the project to determine if the project has significant maintenance, reconstruction, or rebuilding needs. The evaluation shall be completed no less than one hundred eighty (180) days prior to the scheduled retirement of the bonds.
  2. If significant maintenance, reconstruction, or rebuilding is needed, the department shall determine if funds and reserves held by the developing authority for the project are adequate to accomplish the maintenance, reconstruction, or rebuilding. If additional funds are needed, additional bonds shall be authorized and issued by the same entity that issued the original bonds for the project, pursuant to this chapter.
  3. Tolls for the project shall continue until all bonds are retired.
  4. Notwithstanding any other provisions of this chapter, any portion of a project located within the Commonwealth and financed by an authority shall become the property of the Commonwealth upon the retirement of all bonds issued to finance the project or, if the project utilizes a public-private partnership, upon termination of that partnership.
  5. Upon the transfer of any project to the Commonwealth pursuant to this section, the department shall evaluate the need for the continuance of any tolls. Tolls may be continued if significant rebuilding, expansion, or maintenance is needed. Tolls collected after ownership of a project has transferred to the Commonwealth shall be deposited into the road fund and used for current and future costs of the project, including maintenance, expansion, rebuilding, reconstruction, or other similar purposes.
  6. When an authority has transferred a project to the Commonwealth pursuant to this section, remaining fund reserves relating to that project shall be transferred to the road fund.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 93, effective June 26, 2009; 2016 ch. 67, § 13, effective April 8, 2016.

175B.100. Annual report by state authority — Annual audit of state authority.

  1. Within ninety (90) days after the expiration of each fiscal year, the state authority shall make an annual report of its activities for the preceding fiscal year to the Controller of the Commonwealth within the Finance and Administration Cabinet, the Transportation Cabinet, and the Legislative Research Commission. The report shall set forth a complete operating and financial statement covering its operation during the fiscal year.
    1. The state authority shall cause an audit of its books and accounts to be made at least once each year.
    2. A request shall be made to the Auditor of Public Accounts for the performance of an annual audit. If the Auditor of Public Accounts declines in writing to assume responsibility for performing the audit or fails to respond in writing within thirty (30) days of receiving the request, the state authority may enter into a contract with a certified public accountant for an audit.
    3. Any contract with a certified public accountant entered into as a result of the Auditor of Public Accounts either declining to assume responsibility of performing the audit or failing to respond within thirty (30) days of receipt of a written request for an audit shall specify the following:
      1. That the certified public accountant shall forward a copy of the audit report and management letters to the Auditor of Public Accounts for review;
      2. That the Auditor of Public Accounts may review the certified public accountant’s work papers; and
      3. That after review of the certified public accountant’s work papers, if discrepancies are found, the Auditor of Public Accounts shall notify the authority of the discrepancies. If the certified public accountant does not correct these discrepancies prior to the release of the audit, the Auditor of Public Accounts may conduct its own audit to verify the findings of the certified public accountant’s report.
    4. If an audit verifying the findings of the certified public accountant’s report is conducted by the Auditor of Public Accounts, the total audit expense incurred shall be an allowable expenditure and shall be paid to the Auditor of Public Accounts. 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 all purposes.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 94, effective June 26, 2009.

Legislative Research Commission Note.

(6/26/2009). The internal numbering of subsection (2) of this statute has been altered in codification by the Reviser of Statutes from the way it appeared in 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 94, under the authority of KRS 7.136 .

175B.105. Conflict of interest for officers or employees of an authority.

Officers or employees of an authority shall not have any direct interest in the sale or purchase of any project revenue bonds authorized by that authority. Violation of this section shall be punishable by fine of not more than one thousand dollars ($1,000) or by imprisonment for not more than one (1) year, or both.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 95, effective June 26, 2009.

175B.110. Indemnification from liability for an authority’s board members, officers, and employees.

Board members, officers, and employees of each authority authorized under this chapter shall be indemnified from liability asserted by any person on the bonds or notes of the authority, or any personal liability or accountability by reason of:

  1. The issuance of bonds, notes, or guarantees;
  2. The acquisition, construction, ownership, or operation of any project funded in whole or part by the authority; or
  3. Any other action taken or the failure to act by the authority.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 96, effective June 26, 2009.

175B.115. Project planning or work done prior to establishment of an authority.

For a project for which preliminary planning or other work has been undertaken prior to the establishment of an authority, the authority shall follow all previous agreements, records of decision, or contracts entered into by the Commonwealth, subject to any modification necessary as a result of the implementation of this chapter.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 97, effective June 26, 2009.

CHAPTER 176 Department of Highways

176.010. Definitions for chapter.

As used in this chapter, unless the context requires otherwise:

  1. “Biennial highway construction plan” means the specifically identified individual transportation projects or portions thereof identified for funding during the upcoming biennium, which correspond to the first two (2) years of the six (6) year road plan;
  2. “Department” means Department of Highways;
  3. “Cabinet” means the Transportation Cabinet;
  4. “Lowest and best bidder” includes the reciprocal resident bidder preference described in KRS 176.082 ;
  5. “Project” means the design, right-of-way, utility, or construction phase of a highway construction project;
  6. “Roads” includes highways, bridges, and bridge approaches; and
  7. “Six (6) year road plan” means the plan developed under KRS 176.430 .

History. Created by the Legislative Research Commission, Acts 1942, ch. 408, § 1, effective October 1, 1942; amend. Acts 2009, ch. 78, §. 19, effective June 25, 2009; 2010, ch. 162, § 23, effective July 15, 2010; 2021 ch. 190, § 13, effective June 29, 2021.

Compiler’s Notes.

This section was created by the Legislative Research Commission in order to clarify the chapter.

NOTES TO DECISIONS

1.Purpose.

The intent and purpose of the progressive laws has been to put complete control, maintenance and supervision of state highways in the Department of Highways. Dixon v. Giles, 304 Ky. 354 , 200 S.W.2d 919, 1947 Ky. LEXIS 649 ( Ky. 1947 ).

2.Competitive Bidding.

The statutes in KRS Chapter 176 having to do with competitive bidding and allowing “force account” work by the Department of Highways where no satisfactory bid is received, refer to the construction of public roads and not to the mere rental of equipment for road construction purposes. Hall v. Commonwealth, 331 S.W.2d 272, 1959 Ky. LEXIS 3 ( Ky. 1959 ).

Opinions of Attorney General.

“Roads” is construed to mean that part of the public way as established and accepted in the manner provided by statutes and dedicated to the public use by authorized public authorities. OAG 60-44 .

The phrase “road construction and reconstruction” is construed to include all things connected with and incidental to an efficient road system, the ordinary and usual devices used on roads to promote the safety and convenience of traffic. OAG 60-44 .

The state highway department may not use its funds to construct, improve or resurface a parking area at any city or county school. OAG 60-44 .

Research References and Practice Aids

Cross-References.

Archaeological sites, reporting discovery of, KRS 164.730 .

Billboards, KRS 177.830 to 177.890 .

County and city bridges, tunnels and ferries, KRS Ch. 181.

County road engineer and maintenance of public roads, KRS Ch. 179.

Credit of state may be pledged to any county for road purposes, Const., § 157a.

Distribution of county road fund for purpose of constructing and maintaining highways, KRS 47.020 .

Elimination of grade crossings, KRS 177.110 to 177.210 .

Elimination of grade crossings, allocation of cost, KRS 277.065 .

Erection of safety signs at grade crossings, KRS 189.560 .

Establishment, alteration and discontinuance of county roads; grade crossing elimination, KRS Ch. 178.

Highway construction lakes, KRS 150.625 .

Intrastate toll bridges and ferries, control by bureau of highways (now department of highways), hearings, certificates of convenience and necessity, notice to bureau of highways (now department of highways) of interrupted service, KRS 280.010 to 280.130 .

Motor fuel tax, allocation for road purposes, KRS 47.010 .

Public road districts, KRS Ch. 184.

Public utility companies entitled to erect transmission lines and appliances along and across public roads and waters, KRS 416.140 .

Recyclers, KRS 177.905 to 177.950 .

State and federal highways; limited access highways; turnpikes; general obligation bonds for highway construction, KRS Ch. 177.

State bridges, tunnels and ferries, KRS Ch. 180.

Traffic over bridges and ferries, regulation by department of highways, KRS 180.350 .

Traffic regulations and equipment of vehicles, KRS Ch. 189.

176.020. Appointment of state highway engineer — Divisions within the department.

  1. With prior approval of the Governor and the secretary in writing, the commissioner of highways shall appoint as state highway engineer, a civil engineer who has had at least six (6) years executive engineering experience in the design, supervision, and construction of highways. He shall be the technical advisor to the commissioner of highways, and under the direction of the commissioner, he shall supervise all construction and maintenance work of the department and perform such other duties as are assigned to him by the commissioner.
  2. With prior approval of the secretary and pursuant to KRS Chapter 12, the department shall be divided into such divisions as the commissioner of highways may deem necessary to perform the duties and functions of the department. Each division shall perform the duties assigned to it by the commissioner of highways and shall be headed by a director who shall act under the direction and supervision of the commissioner of highways.

History. 4356t-2, 4618-99: amend. Acts 1944, ch. 18; 1948, ch. 80, § 19; 1954, ch. 242; 1974, ch. 74, Art. IV, § 17.

NOTES TO DECISIONS

Cited:

Rice v. Marcum, 294 Ky. 486 , 172 S.W.2d 75, 1943 Ky. LEXIS 483 ( Ky. 1943 ); Commonwealth, Dep’t of Highways v. Salmon Corp., 489 S.W.2d 32, 1972 Ky. LEXIS 25 ( Ky. 1972 ).

Opinions of Attorney General.

The state highway department may not use its funds to construct, improve or resurface a parking area at any city or county school. OAG 60-44 .

The Commonwealth is not liable nor may it legally pay or reimburse any officer or employe for their moving expenses when they are transferred or reassigned by direction of a department. OAG 60-1106 .

In view of the department of transportation’s (now transportation cabinet’s) supervisory role as to all modes of transportation, that department (now cabinet) rather than the railroad commission has been given authority to administer the railroad rehabilitation program. OAG 78-5 .

Research References and Practice Aids

Cross-References.

Bond of commissioner of highways, amount and conditions, KRS 62.160 , 62.180 .

Commissioner may designate highways on which truck weight, length and height limits may be increased, KRS 189.222 .

Department heads, salary and oath, KRS 12.040 .

Department of highways may furnish scales for weighing vehicles, KRS 189.227 .

Department of highways may prescribe rules and regulations and issue permits for operation of trucks and trailers on state highways, KRS 189.230 , 189.270 .

Public road officials to turn over money and records to successors, KRS 61.320 .

State and federal highways, KRS Ch. 177.

176.030. State Highway Commission. [Repealed.]

Compiler’s Notes.

This section (4618-100) was repealed by Acts 1944, ch. 62, § 1.

176.040. Employees of department; salaries. [Repealed.]

Compiler’s Notes.

Subsection (2) of this section (4356t-3f) was repealed by Acts 1946, ch. 27, § 46; subsec. (1) of this section (4356t-3f) was repealed by Acts 1960, ch. 183, § 1.

176.050. Duties of department.

  1. The department shall:
    1. Investigate all problems relating to the construction and maintenance of roads in the state;
    2. Examine all projects and ascertain the feasibility of all routes;
    3. Obtain information as to the proper type of road for any project;
    4. Examine all types of road materials which may be used in the construction or maintenance of any road to be constructed by the department or under its direction or supervision;
    5. Require the design plans for all road projects constructing a new route to identify, if at all feasible, one (1) or more publicly owned sites at least four (4) acres in size, along the proposed new route that will be used as waste sites during the construction phase of the project but that have the potential for a city, county, or other governmental entity to turn the site into an industrial park upon completion of the road project, regardless of whether the site currently has the infrastructure necessary to support an industrial park;
    6. Consult with all legislative bodies affected by a new road construction project during the design phase for the purpose of soliciting local government officials’ preferences for the location of waste sites that could be turned into an industrial park;
    7. From time to time, examine and have examined and audited all of its books, papers and records;
    8. Cause to be made all necessary surveys in the establishment and construction of the system of public highways; all necessary maps, prints, plans and specifications of all work to be done on the roads; estimates of costs; advertisement for bids; contracts for construction or maintenance; and all necessary forms in connection therewith; and
    9. Promulgate administrative regulations under KRS Chapter 13A for the care and maintenance of roads after they have been constructed.
  2. The department may publish bulletins containing useful information concerning the construction and maintenance of roads.
  3. An invoice or bill to be paid out of the road or bridge funds shall not be approved by the department for payment until it has been carefully examined by the department to ascertain if the bill or invoice is in every respect a proper and legitimate charge against the road or bridge funds. The commissioner may call before him any person who may have information respecting any bill or invoice.

History. 4356t-3e, 4356t-3f; 1998, ch. 181, § 1, effective March 27, 1998.

NOTES TO DECISIONS

1.Construction and Maintenance of Roads.

Property owners liable for street assessments cannot compel department of highways to pay for street construction as part of state highway project, where streets are built by city, and department did not exercise its authority to construct streets as part of project. Mullinax v. Middlesboro, 247 Ky. 297 , 57 S.W.2d 11, 1933 Ky. LEXIS 393 ( Ky. 1933 ).

The department may construct any portion of a state highway project as its sees fit, leaving the rest to be completed at some future time. Mullinax v. Middlesboro, 247 Ky. 297 , 57 S.W.2d 11, 1933 Ky. LEXIS 393 ( Ky. 1933 ).

The department has all power, except where expressly or by clear implication denied, in determining as to how a state highway project is to be constructed and maintained. State Highway Com. v. Smith, 250 Ky. 269 , 62 S.W.2d 1044, 1933 Ky. LEXIS 685 ( Ky. 1933 ).

The jurisdiction of the department of highways is confined, under applicable statutes, exclusively to the construction and maintenance of state highways, and it has no jurisdiction of public county highways. Johnson v. Clark County, 258 Ky. 563 , 80 S.W.2d 571, 1935 Ky. LEXIS 197 ( Ky. 1935 ).

2.Ferries.

The Department of Highways may establish and operate permanently a free ferry, to carry a state highway project over an intervening stream. State Highway Com. v. Smith, 250 Ky. 269 , 62 S.W.2d 1044, 1933 Ky. LEXIS 685 ( Ky. 1933 ).

The department may establish and operate a free ferry within one mile of an existing ferry operating under franchise. State Highway Com. v. Smith, 250 Ky. 269 , 62 S.W.2d 1044, 1933 Ky. LEXIS 685 ( Ky. 1933 ).

3.Trees.

As no statute, regulation, or case law imposed a duty on the Kentucky Department of Highways (KDH) to the general public or to adjoining landowners to remove defective trees, its failure to remove a dead tree on KDH-owned property was not a “ministerial act” as that term is used in KRS 44.073(2). Therefore, a homeowner’s claim against the KDH for damage to his property caused by a fallen tree was barred by sovereign immunity. Commonwealth v. Sexton, 256 S.W.3d 29, 2008 Ky. LEXIS 161 ( Ky. 2008 ).

Cited:

Keck v. Manning, 313 Ky. 433 , 231 S.W.2d 604, 1950 Ky. LEXIS 897 ( Ky. 1950 ).

DECISIONS UNDER PRIOR LAW

1.Selection of Route.

The location of road, which was to be part of primary road system, was for the state highway engineer and department of highways to decide, subject to approval of federal official, and not for fiscal court. Black v. Road Comm'rs of Crittenden County, 201 Ky. 650 , 258 S.W. 94, 1924 Ky. LEXIS 613 ( Ky. 1924 ).

2.Application of County Road Bonds.

Proceeds of county bond issue could have been applied to construction of road along route fixed by state highway commission (now department of highways), rather than route selected by fiscal court. Black v. Road Comm'rs of Crittenden County, 201 Ky. 650 , 258 S.W. 94, 1924 Ky. LEXIS 613 ( Ky. 1924 ).

Research References and Practice Aids

Cross-References.

Department of highways may lease motor vehicles, buildings and equipment to state police, and provide for servicing and repair of motor vehicles of state police, KRS 16.070 .

Roads or bridges between counties, duty of highway commissioner, KRS 178.250 .

State planning board, preparation of official state highway plan, KRS 147.070 to 147.120 .

State primary road system, Department of Highways to determine system, KRS 177.020 .

Traffic regulations and equipment of vehicles, KRS Ch. 189.

Northern Kentucky Law Review.

Kentucky Survey Issue: Article: If a Tree Falls on a House, Will the State Hear It?: A Kentucky Survey of Adjacent Landowner Liability Due to Encroaching Vegetation, 38 N. Ky. L. Rev. 355 (2011).

176.051. Department to eradicate noxious weeds and invasive plants on rights-of-way — Advertisement of program — Administrative regulations.

  1. The Department of Highways shall keep all state rights-of-way free of all of the following, which are noxious weeds and invasive plants:
    1. The species of grass, Sorghum halepense, commonly known as Johnson grass;
    2. The species of weed commonly known as giant foxtail;
    3. The thistles Cirsium arvense and Carduus nutans, commonly known as Canada thistles and nodding thistles, respectively;
    4. Multiflora rose;
    5. Kudzu;
    6. Poison hemlock;
    7. Marestail;
    8. Amur honeysuckle;
    9. Japanese knotweed; and
    10. Common teasel.
  2. Upon written request, the department shall give priority to and shall cooperate with any abutting property owner engaged in a program of eradication by eradicating the noxious weeds and invasive plants identified in subsection (1) of this section, or in administrative regulations promulgated pursuant to subsection (4) of this section, from abutting state rights-of-way. The department shall take steps to eradicate this grass and these weeds or thistles by the use of chemicals or any other means found to be effective by the department.
  3. The Department of Highways shall inform property owners of the availability of the eradication program. In carrying out this responsibility the department shall, no later than the first week in March of every year, advertise in each county, pursuant to the provisions of KRS Chapter 424 that the program is available. The department shall stipulate in the advertisement the place and manner in which an interested property owner may make a written request for inclusion in the program. The department shall also promote awareness of the availability of the eradication program through the use of electronic media and the Cooperative Extension Service.
    1. The Department of Highways may by administrative regulation add noxious weeds and invasive plants to or delete them from the list of noxious weeds and invasive plants enumerated in subsection (1) of this section. In making a determination regarding a noxious weed or invasive plant, the department may consider the following:
      1. The plant’s ability to directly or indirectly injure or cause damage to crops, livestock, poultry, or other interests of agriculture;
      2. The plant’s impact on the public health;
      3. The plant’s impact on the environment; and
      4. The level of difficulty associated with controlling or eradicating the plant.
    2. The department shall review this administrative regulation at least once every four (4) years.
    3. For purposes of this subsection, “livestock” means cattle, sheep, swine, goats, horses, alpacas, llamas, buffaloes, and any other animals of the bovine, ovine, porcine, caprine, equine, or camelid species.

HISTORY: Enact. Acts 1956 (2nd Ex. Sess.), ch. 2; 1960, ch. 149; 1968, ch. 65; 1974, ch. 74, Art. IV, § 20(1); 1976, ch. 80, § 1, effective March 29, 1976; 1980, ch. 28, § 1, effective July 15, 1980; 1984, ch. 29, § 1, effective July 13, 1984; 1990, ch. 433, § 3, effective April 10, 1990; 2014, ch. 53, § 1, effective July 15, 2014; 2017 ch. 129, § 7, effective June 29, 2017.

176.052. State Highway Commission; appointment; term; duties. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1956 (1st Ex. Sess.), ch. 7, Art. V) was repealed by Acts 1960, ch. 3, § 1, effective February 3, 1960.

176.053. Trees along rights-of-way — Proceeds from sale of products.

  1. The Department of Highways is authorized to plant or set trees on and along any and all rights-of-way of highways or state property adjacent thereto, and to cut and sell wood, lumber, or forest products therefrom.
  2. All proceeds from the sale of such wood, lumber, or forest products shall be held in a separate fund for the maintenance, construction, or improvement of highways, or the acquiring of rights-of-way, and the improvement or development thereof.

History. Enact. Acts 1962, ch. 132, §§ 1, 2.

176.054. Obtaining trees to carry out KRS 176.053.

The Energy and Environment Cabinet shall furnish to the Department of Highways such seedlings or young trees as the department may require, or as may be available. The Department of Highways shall pay to the Energy and Environment Cabinet the reasonable value thereof as may be agreed upon between such departments.

History. Enact. Acts 1962, ch. 132, § 3; 2010, ch. 24, § 230, effective July 15, 2010.

Research References and Practice Aids

Cross-References.

Natural resources and environmental protection cabinet, KRS Ch. 149.

176.055. Dissemination of information concerning roads and highways.

  1. The Department of Highways may purchase space in magazines, newspapers, and other publications and may cause to be made and circulated all maps, prints, plans, lithographs, engravings, photographs, drawings, art work, and other specialized work deemed necessary in the dissemination of information concerning its roads and highways.
  2. The Department of Highways, with the approval of the Governor, may expend an amount not in excess of two hundred and fifty thousand dollars ($250,000) a year for the purposes set out in subsection (1) hereof.
  3. The provisions of KRS Chapter 57 shall not be applicable or controlling in the expenditure of this fund.

History. Enact. Acts 1950, ch. 47, §§ 1 to 3.

NOTES TO DECISIONS

Cited:

Keck v. Manning, 313 Ky. 433 , 231 S.W.2d 604, 1950 Ky. LEXIS 897 ( Ky. 1950 ).

176.057. Certain railroad property to be considered roads — Use of funds for maintenance and repair.

For the purposes of this chapter and KRS Chapter 178 on and after July 1, 2010, railroad crossings, railroad spurs that access industrial parks, and shortline railroads at or near intersections with roadways shall be considered roads. The industrial access road fund within the Transportation Cabinet and other funds specified by the secretary or requested by the secretary of the Cabinet for Economic Development may be used for their maintenance and repair.

History. Enact. Acts 2009 (1st Ex. Sess.), ch. 1, § 54, effective June 26, 2009.

176.060. Roads under construction — Regulation of traffic — Temporary roads.

The department may stop or regulate all traffic over any road being constructed or improved until it is ready to be opened to the public, and may designate other roads for the accommodation of traffic until the construction is completed. The department may establish temporary roads while such construction is going on, and may make arrangements with landowners for necessary temporary rights-of-way, and may contract and pay for such rights-of-way out of appropriations from the state road fund by certifying the costs to the Finance and Administration Cabinet. The temporary road shall be opened for travel at least two (2) weeks before work is begun on the road proposed to be constructed or improved.

History. 4356t-3f.

NOTES TO DECISIONS

Cited:

Keck v. Manning, 313 Ky. 433 , 231 S.W.2d 604, 1950 Ky. LEXIS 897 ( Ky. 1950 ).

Research References and Practice Aids

Cross-References.

See notes to KRS 176.050 . State Hwy. Comm’n v. Smith, 250 Ky. 269 , 62 S.W.2d 1044, 1933 Ky. LEXIS 685 (1933).

176.070. Advertisement for bids.

  1. After surveys, plans, specifications and estimates have been completed for any road or section thereof, and the type and character of the road has been determined, and the right-of-way obtained, the bureau shall advertise by publication pursuant to KRS Chapter 424, for bids on the work, and may contract for the purchase of all materials necessary for the construction and maintenance of roads.
  2. Before advertising for bids for the construction or reconstruction of any highway, the department may determine the type of improvement desired, and may advertise and receive bids for only the types determined. The advertisement shall make it generally known that the work is to be done, and shall state the place where the bidders may examine the plans and specifications.

History. 4356t-3f, 4356t-6, 4356t-17-2b: amend. Acts 1966, ch. 239, § 150.

NOTES TO DECISIONS

1.Bids Not Required for Rental.

The rental of road construction equipment by the state does not require competitive bidding. Hall v. Commonwealth, 331 S.W.2d 272, 1959 Ky. LEXIS 3 ( Ky. 1959 ).

Opinions of Attorney General.

The Department of Transportation (now Transportation Cabinet) cannot use the “turnkey” method for bidding highway construction projects since there is nothing in the road building chapters of the KRS which would authorize the use of such method and to do so would ignore the public policy embodied in this section of obtaining the most qualified and competent engineering services at the lowest possible price because this section requires in effect that the engineer’s plans and specifications be completed before the Bureau of Highways may advertise for bids. OAG 81-349 .

The provisions of the Model Procurement Code, including subsection (4) of 45A.030 which does not define “construction” to include road building and subsection (1) of KRS 45A.050 , which excises road building from the operation of KRS Chapter 45A, prevent use of the “turnkey” technique, whereby the project specifications sent out to prequalified contractors include planning and design services by engineers obtained by the bidding contractor, by the Department of Transportation (now Transportation Cabinet); the public policy of obtaining the most qualified and competent engineering services at the lowest possible price which is embodied in this section would simply be ignored by utilizing the “turnkey” technique because that statute in effect requires that the engineer’s plans and specifications be completed before the Department of Highways may advertise for bids. OAG 81-349 .

176.080. Bond or check to accompany bid — Opening of bids — Awarding of contracts — Security — Bids may be rejected — Advertisement for new bids.

  1. Each bidder shall accompany his bid with a bond or certified check payable to the State Treasurer for a reasonable sum, fixed by the department, guaranteeing that he will enter into a contract with the department for doing the work if the work is awarded to him.
  2. Bids shall be opened publicly at the time and place designated in the invitation for bids. At the time the bids are opened, the department shall announce the department’s engineer’s estimate and make it a part of the department’s records pertaining to the letting of any highway construction project contract for which bids were received. Each bid, together with the name of the bidder and the department’s engineer’s estimate, shall be recorded and open to public inspection.
  3. The contract shall be awarded to the lowest and best bidder. The department may require bonds from any contractor to secure the performance of any contract or may require security by any other means it deems advisable.
  4. The department may reject any bid when it finds it for the best interest of the state to do so. When all bids are rejected, the department shall advertise for new bids as in the first place.

History. 4356t-3f, 4356t-6: 1994, ch. 278, § 2, effective July 15, 1994.

176.082. Reciprocal preference to be given to resident bidders on construction projects.

  1. Prior to a contract being awarded for the construction phase of a project, a resident bidder of the Commonwealth shall be given a preference against a nonresident bidder registered in any state that gives or requires a preference to bidders from that state. The preference shall be equal to the preference given or required by the state of the nonresident bidder and shall be applied after the opening of the bids.
  2. A resident bidder is an individual, partnership, association, corporation, or other business entity that, on the date the department advertises for bids:
    1. Is authorized to transact business in the Commonwealth; and
    2. Has for one (1) year prior to and through the date of advertisement, filed Kentucky corporate or other business income taxes, made payments to the Kentucky unemployment insurance fund established in KRS 341.490 , and maintained a Kentucky workers’ compensation policy in effect.
  3. A nonresident bidder is an individual, partnership, association, corporation, or other business entity that does not meet the requirements of subsection (2) of this section.
  4. The department shall use the list and administrative regulations described in KRS 45A.494(6) to determine the preferences to be given in awarding a contract.
  5. The preference shall not be given if the preference conflicts with federal law.

History. Enact. Acts 2010, ch. 162, § 5, effective July 15, 2010.

176.085. Compliance with workers’ compensation insurance and unemployment insurance laws required — Foreign entity to obtain certificate of authority — Penalty.

    1. No contract for building, construction, reconstruction, renovation, demolition, or other type work on any state road, waterway, or aviation-related work, shall be awarded by any agency, department, or office of the Commonwealth of Kentucky or any political subdivision of the Commonwealth of Kentucky to any person until that person assures, by affidavit, that all contractors and subcontractors employed, or that will be employed, under the provisions of the contract shall be in compliance with Kentucky requirements for workers’ compensation insurance according to KRS Chapter 342 and unemployment insurance according to KRS Chapter 341.
    2. An agency, department, office, or political subdivision of the Commonwealth of Kentucky shall not award a contract to a person that is a foreign entity unless that foreign entity, on the records of the Secretary of State, holds a certificate of authority or a statement of foreign qualification.
  1. Any person who fails to comply with the requirements of subsection (1) of this section during the term of the state contract, upon such finding by a court of competent jurisdiction, shall be fined an amount not to exceed four thousand dollars ($4,000), or an amount equal to the sum of uninsured and unsatisfied claims brought under the provisions of KRS Chapter 342 and unemployment insurance claims for which no wages were reported as required by KRS Chapter 341, whichever is greater.
  2. The penalty imposed in subsection (2) of this section shall be enforced by the county attorney for the county in which the violation occurred.

History. Enact. Acts 1990, ch. 174, § 3, effective July 13, 1990; 2011, ch. 80, § 3, effective June 8, 2011; 2012, ch. 81, § 87, effective July 12, 2012.

NOTES TO DECISIONS

Cited:

Davis v. Hensley, 256 S.W.3d 16, 2008 Ky. LEXIS 149 ( Ky. 2008 ).

176.090. Provisions of contract — Partial and complete payment — Bonds, bids, etc., to be filed.

  1. The contract shall state the time when the work shall be begun and completed, and the time and manner of payment. The department may require that a certain percent of the contract price, or a certain fixed sum shall not be paid to the contractor until a fixed time after completion and acceptance of the work.
  2. When the contract provides for partial payment based on the amount of work done, the representative of the department in charge of the work shall present to the department, as each payment becomes due, a certificate signed by him, showing as nearly as possible the amount of work done for which payment is to be made. If the state highway engineer finds that the amount certified is due, the Finance and Administration Cabinet shall draw a warrant for the amount certified, on the request of the Department of Highways.
  3. When the work has been fully completed, the representative of the department shall certify to the department a detailed and itemized statement of the cost of the work done, and if it is found to be correct, the department shall certify the amount to the Finance and Administration Cabinet, which shall draw a warrant for the amount due.
  4. All bonds and bids filed and all contracts approved by the department and a copy of all specifications and certifications shall be kept on file in the office of the department.

History. 4356t-6.

NOTES TO DECISIONS

1.Assignment of Contract Rights.

Assignment by contractor to surety on contractor’s bond of former’s rights in contract to build road was subject to all terms and conditions of contract and to contractor’s liabilities thereunder. Southern Exchange Bank v. American Surety Co., 284 Ky. 251 , 144 S.W.2d 203, 1940 Ky. LEXIS 460 ( Ky. 1940 ), limited, York v. Cline Constr. Co., 336 S.W.2d 34, 1960 Ky. LEXIS 311 ( Ky. 1960 ), overruled, National Surety Corp. v. State Nat'l Bank, 454 S.W.2d 354, 1970 Ky. LEXIS 277 ( Ky. 1970 ).

2.Garnishment.

Department cannot be made garnishee to attach funds due on contract for work done on highways. B. B. Wilson Co. v. Van Diver, 230 Ky. 27 , 18 S.W.2d 308, 1929 Ky. LEXIS 3 ( Ky. 1929 ). (See now KRS 427.130 .)

176.095. Contractor’s deposit of securities with department.

  1. Where any percent of a contract price or a certain fixed sum shall have been retained pursuant to the provisions of subsection (1) of KRS 176.090 , the contractor may from time to time withdraw the whole or any portion of the amount retained for payments to the contractor pursuant to the terms of the contract and substitute therefor securities of the following classes which are upon deposit with a custodian designated by the commissioner of the department and approved by the secretary of the Finance and Administration Cabinet:
    1. United States treasury bonds, United States treasury notes, United States certificates of indebtedness, United States treasury bills,
    2. Bonds of the Commonwealth of Kentucky, or
    3. Bonds of any political subdivision, including school districts, of the Commonwealth of Kentucky. No amount shall be withdrawn in excess of the market value of the securities at the time of deposit or the par value of such securities, whichever is lower.
  2. The custodian shall on a regular basis collect all the interest or income on the obligations so deposited and shall pay the same when and as collected to the contractor who deposited the obligations. If the deposit is in the form of coupon bonds, the custodian shall deliver each coupon as it matures to the contractor.
  3. Any amount deducted by the department, pursuant to the terms of the contract, from the retained payments otherwise due the contract, shall be deducted first from that portion of such retained payments for which no security has been substituted, then from the proceeds of any deposited security. In the latter case, the contractor shall be entitled to receive interest, coupons or income only from those securities which remain after such amount has been deducted.
  4. The securities so deposited shall be properly endorsed by the contractor in such manner so as to enable the custodian to carry out the provisions of this section.

History. Enact. Acts 1970, ch. 38; 1972, ch. 203, § 34; 1974, ch. 74, Art. II, § 9(2); 1974, ch. 74, Art. IV, § 20(1); 1978, ch. 155, § 41, effective June 17, 1978.

Opinions of Attorney General.

A contractor depositing securities with an approved custodian in order to withdraw his retainage has both legal and equitable title to such securities, and he may substitute other qualified securities for those on deposit when approved by the bureau of highways (now Department of Highways) and the custodian. OAG 73-694 .

176.100. Deviation from contract.

No contractor shall deviate from the provisions, plans or specifications upon which a contract has been awarded without first having obtained written authority from the department to do so. If the contractor does deviate without such authority, neither the State of Kentucky, the Department of Highways, the Finance and Administration Cabinet nor the State Treasurer shall pay or be liable for any work or material not fully provided for in the original contract.

History. 4356t-3f.

NOTES TO DECISIONS

1.Subcontracts.

This section is for the protection of the state and has no application to contracts between a contractor contracting with the state and his subcontractor. Holloway & Son Constr. Co. v. Mattingly Bridge Co., 581 S.W.2d 568, 1979 Ky. LEXIS 259 ( Ky. 1979 ).

176.110. Breach of contract — Cancellation to keep expenditures within annual income.

  1. If any person having a contract with the department fails to carry out the contract, the department may cancel the contract and reaward it without advertisement if it can obtain a qualified contractor to perform the work at the original contract price or for less. Otherwise the work shall be advertised as required by law.
  2. When the department ascertains that the cost of any contract or the cost of continued work on any contract will exceed the revenues of the fiscal year, the department may cancel any such contract or any portion thereof necessary in order to keep expenditures within the revenues of the fiscal year, and may contract for the completion of such work when the funds are available without advertising the work if it can obtain a qualified contractor to assume the work at the original contract price. Otherwise the work shall be advertised as required by law.

History. 4356t-3f.

NOTES TO DECISIONS

1.Application.

Where surety on highway construction contractor’s bond completed construction contract pursuant to agreement, the original contract was not canceled and subsection (1) of this section was not applicable. Continental Casualty Co. v. L. G. Wasson Coal Mining Corp., 407 S.W.2d 426, 1966 Ky. LEXIS 165 ( Ky. 1966 ).

DECISIONS UNDER PRIOR LAW

1.Exceeding Revenue.

The state highway commission (Department of Highways) could not have let contracts aggregating in ultimate cost more than revenue of current fiscal year, even though expenditure thereunder in any one fiscal year would not have exceeded available funds for that year. Billeter & Wiley v. State Highway Com., 203 Ky. 15 , 261 S.W. 855, 1924 Ky. LEXIS 847 ( Ky. 1924 ).

176.120. Construction work that may be done by department. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1958, ch. 18, § 1; 1960, ch. 137, § 1) was repealed by Acts 1964, ch. 22, § 2.

176.121. Construction work by department employees.

The Department of Highways may cause any road construction or reconstruction to be done by employees of the department instead of through contractors when, in the opinion of the commissioner as expressed in an official order, any of the following conditions is found to exist:

  1. Emergency construction or reconstruction is made necessary by the fact that a road has been rendered unusable or the urgency of need for construction or reconstruction is apparent.
  2. Construction or reconstruction of access roads would serve as an inducement to industrial location or substantial expansion of industry, and the estimated cost of the project is less than one hundred twenty-five thousand dollars ($125,000).
  3. The project involves: an existing road and provides for such work as improvement of sight distance, traffic marking, channelization or the addition or widening of traffic lanes or widening of shoulders; or construction, reconstruction, widening or strengthening of small bridges and projects for which preparation of detailed plans required to secure bids is unnecessary; or an emergency need does not allow for time for preparation of plans and advertisement for bids.
  4. No satisfactory bid is received for the construction or reconstruction of the road after all necessary steps have been taken to obtain bids for such work, and the estimated cost of the projects is less than one hundred twenty-five thousand dollars ($125,000).

History. Enact. Acts 1964, ch. 22, § 1; 1974, ch. 74, Art. IV, § 20(1); 1974, ch. 92, § 1; 1980, ch. 46, § 1, effective July 15, 1980.

176.122. Definitions for KRS 176.122 to 176.128.

As used in KRS 176.122 to 176.128 , unless the context requires otherwise:

  1. “Department” means Department of Highways, Commonwealth of Kentucky.
  2. “Person” means any individual, firm, agency, company, association, partnership or corporation.

History. Enact. Acts 1962, ch. 154, § 1.

176.124. Work of department personnel restricted to rights-of-way.

No officer, agent or employee of the Commonwealth of Kentucky, Department of Highways, shall perform or cause to be performed any work or provide or cause to be provided services of any nature beyond the right-of-way limits of any public road, nor shall any person accept the work or services of any officer, agent or employee of the department on private property.

History. Enact. Acts 1962, ch. 154, § 2.

Opinions of Attorney General.

The practice of grading and graveling private driveways and private roads by the bureau of highways (now Department of Highways) or the county road department is clearly illegal under this section and KRS 176.126 , subject to the penalties provided in KRS 176.990 , and a citizen who has knowledge of violation of these statutes should report them to the Commonwealth Attorney or the county attorney of the county. OAG 73-129 .

176.126. Use of department goods and materials restricted to rights-of-way.

No goods or materials belonging to or under control of the department shall be used in work of any nature beyond the right-of-way limits of any public road, nor shall any person accept or permit the use of such goods or materials on private property.

History. Enact. Acts 1962, ch. 154, § 3.

176.128. Effect of KRS 176.122 to 176.128.

Nothing in KRS 176.122 to 176.128 shall be so construed as to prevent the lawful execution of other granted powers necessary to accomplish the purposes of the Department of Highways.

History. Enact. Acts 1962, ch. 154, § 6.

176.130. Certificates of eligibility for contractors — Application — When necessary.

  1. Every person who seeks to procure, bid upon, or offer to bid upon any contract with the department for the construction or maintenance of any public road or any section thereof, before procuring a proposal form or submitting any bid to obtain such contract, shall procure a certificate of eligibility from the department to bid on such work.
  2. All applications for a certificate of eligibility shall be made to the department in writing, and the department shall act upon the application within thirty (30) days after the application is filed.
  3. A certificate of eligibility is not necessary where the department purchases equipment, material and supplies directly, except in the case of the purchase of crushed stone in lots of more than one thousand (1,000) tons, or bituminous materials in tank car lots.

History. 4356t-18, 4356t-25.

NOTES TO DECISIONS

1.Partnership.

Money borrowed by partners from a bank on personal notes and contributed to partnership to increase net current assets to enable partnership to obtain certificate of eligibility was partnership liability to be taken into account in determining adjusted basis of partners’ interests in the partnership for the purpose of determining the extent to which their distributive share of the partnership loss could be allowed under § 704(d) of the Internal Revenue Code of 1954. Corum v. United States, 268 F. Supp. 109, 1967 U.S. Dist. LEXIS 11546 (W.D. Ky. 1967 ).

176.140. Determination of eligibility to bid.

  1. The department shall determine who shall be eligible to bid upon any contract with the department for the construction or maintenance of any public road or section thereof. The department may adopt rules and regulations and make investigations and examinations to determine the financial status, experience, responsibility, business ability, previous record, sufficiency of plant and equipment, and any other pertinent facts necessary to determine the eligibility of the proposed bidder.
  2. The department shall establish rules and regulations governing the application for the certificate of eligibility, the means and methods of obtaining information relative to the applicant, and the granting of, or refusal to grant, a certificate of eligibility, and may require a financial statement of the applicant, verified by the applicant or, in the case of a corporation, by an authorized official thereof, as often as the department deems it necessary, and at least once in every twelve (12) months.

History. 4356t-19.

Research References and Practice Aids

Cross-References.

See note to KRS 176.130 . Corum v. United States, 268 F. Supp. 109, 1967 U.S. Dist. LEXIS 11546 (W.D. Ky. 1967 ).

176.150. Information required with application for certificate of eligibility.

  1. No applicant shall be given a certificate of eligibility unless his financial statement and the investigation made by the department show that he possesses net current assets or working capital sufficient in the judgment of the department to render it probable that he can satisfactorily execute his contracts and meet obligations therein incurred. All applications for certificates shall expressly authorize the department to obtain all information which it deems pertinent with respect to the financial status, assets, and liabilities of the applicant from any persons having business transactions with the applicant, and shall expressly authorize all those persons to furnish any information requested from them by the department.
  2. No applicant shall be given a certificate of eligibility until the applicant provides the secretary of the Transportation Cabinet with his sworn statement made under penalty of perjury that he has not knowingly violated any provision of the campaign finance laws of the Commonwealth and that the award of a contract to the applicant will not violate any provision of the campaign finance laws of the Commonwealth. “Knowingly” means, with respect to conduct or to a circumstance described by a statute defining an offense, that a person is aware or should have been aware that his conduct is of that nature or that the circumstance exists.
  3. Certificates of eligibility shall be issued without reference to the residence of applicants and the administrative regulations regarding the issuance of certificates shall apply equally to residents and nonresidents. A certificate of eligibility shall not be denied to any applicant upon the sole issue of nationality or residence.
  4. When the applicant is a foreign corporation, limited liability company, or limited partnership, the application shall be accompanied by a certificate from the Secretary of State of the jurisdiction in which it is organized certifying that it is validly existing and in good standing and a certificate from the Kentucky Secretary of State certifying that it is authorized to transact business in the Commonwealth of Kentucky.

History. 4356t-20, 4356t-22, 4356t-23; 1992, ch. 288, § 22, effective July 14, 1992; 2007, ch. 137, § 45, effective June 26, 2007; repealed and reenact., Acts 2010, ch. 51, § 45, effective July 15, 2010.

Legislative Research Commission Note.

(7/15/2010). 2010 Ky. Acts ch. 51, sec. 183, provides, "The specific textual provisions of Sections 1 to 178 of this Act which reflect amendments made to those sections by 2007 Ky. Acts ch. 137 shall be deemed effective as of June 26, 2007, and those provisions are hereby made expressly retroactive to that date, with the remainder of the text of those sections being unaffected by the provisions of this section."

Research References and Practice Aids

Cross-References.

See note to KRS 176.130 . Corum v. United States, 268 F. Supp. 109, 1967 U.S. Dist. LEXIS 11546 (W.D. Ky. 1967 ).

Kentucky Law Journal.

Rutledge, The 2007 Amendments to the Kentucky Business Entity Statutes, 97 Ky. L.J. 229 (2008).

176.160. Issuance or denial of certificate — Effect.

  1. After obtaining such information as it deems necessary relative to the qualification of the applicant, the department shall determine whether or not the applicant is eligible to bid upon road contracts. The department shall promptly notify all applicants of its final action on their applications.
  2. If the department determines that the applicant is eligible, it shall issue to him a certificate of eligibility which shall entitle the applicant to bid upon any contract with the department for the construction or maintenance of any public road or section thereof upon which bids are being asked.
  3. If the department determines that the applicant is ineligible to bid, it shall reject the application and refuse to issue the certificate of eligibility, and the applicant shall not thereafter make application for a certificate of eligibility until he is qualified, both financially and in all other ways.

History. 4356t-20.

176.170. Administrative hearing — Appeal.

  1. Any applicant aggrieved by the decision of the department made pursuant to KRS 176.160 may, within ten (10) days after receiving notification of the decision, request in writing an administrative hearing which shall be conducted in accordance with KRS Chapter 13B.
  2. Any applicant who is aggrieved by the final order of the department may appeal to the Franklin Circuit Court in accordance with KRS Chapter 13B.

History. 4356t-20: 1996, ch. 318, § 59, effective July 15, 1996.

176.180. Limitation on certificate — Rehearing.

  1. In issuing a certificate of eligibility to any applicant, the department may limit the scope of the certificate as to the number or type of projects, or the amount of work that the contractor may bid upon.
  2. Any applicant who is dissatisfied with the department’s ruling as to the aggregate amount of work which he will be permitted to have under contract at any one (1) time, may at any time file a new application for qualification. Such new application shall be promptly considered and acted upon by the department.

History. 4356t-20.

176.190. Revocation of certificate — Notice — Hearing.

A certificate of eligibility may be revoked by the department only after a written notice is given to the qualified bidder and an opportunity given to him for an administrative hearing conducted in accordance with KRS Chapter 13B.

History. 4356t-21; 1996, ch. 318, § 60, effective July 15, 1996.

176.200. Subcontractor to be named.

Before making an award the department may require the bidder to name the subcontractor whom he intends to employ for the various divisions of the work bid upon.

History. 4356t-24.

176.210. Lists of qualified bidders may be made public.

The department may make public from time to time lists of qualified bidders. Such lists shall be general in character and shall not indicate the size of the contracts with respect to which the bidders have qualified.

History. 4356t-22.

176.220. Bids from unqualified bidders.

The department shall not consider any bid filed with it by any person not holding a certificate of eligibility. Bids from unqualified bidders which are discovered by the department before they are read, shall be returned to the bidders without being read. If the department finds subsequent to the opening of bids that facts exist which would disqualify the lowest bidder, or that such bidder is not responsible and competent, the department shall reject such bid, despite the previous qualification of the bidder. The department shall not award any contract to any bidder not qualified to bid thereon at the time the bids are opened.

History. 4356t-25.

176.230. License fee. [Repealed.]

Compiler’s Notes.

This section (4356t-26) was repealed by Acts 1962, ch. 153, § 1.

176.240. Federal aid for road building — Cooperation by department — Allocation of funds.

  1. The department may contract with the federal government in regard to the survey, construction and maintenance of roads under any Act of Congress providing federal aid to the states in road construction, and may, subject to the rules of the United States Secretary of Agriculture, make plans for and supervise the construction of federal aid roads, and may do all things necessary to fully carry out the cooperation contemplated.
  2. The department may set apart out of moneys appropriated out of the state road fund an amount equal to any sum allotted to the state by the federal government, or any sum necessary to carry on cooperative work with the federal government.
  3. The State Treasurer may receive money due under the provisions of any federal aid act, and he shall pay out such money upon warrants of the Finance and Administration Cabinet issued in payment of claims certified by the Department of Highways.

History. 4356t-3f.

NOTES TO DECISIONS

1.Cooperation with Federal Government.

The Department of Highways may do all things necessary fully to cooperate with the federal government. State Highway Com. v. Smith, 250 Ky. 269 , 62 S.W.2d 1044, 1933 Ky. LEXIS 685 ( Ky. 1933 ).

176.250. Duties of department in regard to county roads.

The department shall:

  1. Recommend rules and regulations determining the method of constructing roads and fixing the duties of county road engineers and their employees in respect to all public roads;
  2. Instruct and advise with the county road engineers and their employees as to the establishment of grades and suitable systems of drainage and as to the construction, improvement and maintenance of public roads;
  3. Cause plans, specifications and estimates to be prepared for the repair and improvement of public roads and the construction and repair of bridges, and, when requested, advise upon the various methods of road construction adapted to different sections of the state, and as to the best methods of construction and maintenance of public roads throughout the state, and collect such information relating thereto as it deems expedient; and
  4. Cause meetings to be held in each county for the purpose of furnishing general information and instruction upon the maintenance and improvement of public roads and the application of the road laws and the rules of the department. The department shall notify the county engineer of any county of such meetings and specify the date and place thereof.

History. 4356t-13.

NOTES TO DECISIONS

1.Jurisdiction of Bureau.

The jurisdiction of the department of highways is confined, under applicable statutes, exclusively to the construction and maintenance of state highways, and it has no jurisdiction of public county highways. Johnson v. Clark County, 258 Ky. 563 , 80 S.W.2d 571, 1935 Ky. LEXIS 197 ( Ky. 1935 ).

Research References and Practice Aids

Cross-References.

County road engineer and maintenance of public roads, KRS Ch. 179.

Credit of state may be pledged to any county for road purposes, Const., § 157a.

State aid for county roads, KRS 178.150 , 178.190 , 179.410 , 179.415 .

176.255. Administrative control of covered wooden bridges — Title — Maintenance. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 364, § 2; 1976, ch. 170, § 2) was repealed by Acts 1980, ch. 323, § 3, effective July 15, 1980. For present law, see §§ 176.400 , 176.410 .

176.260. Fiscal year of department.

The fiscal year for the Department of Highways which commences on April 1, 1950, shall be extended up to and including June 30, 1951, and thereafter the fiscal year for the department shall begin July 1, and end June 30.

History. 4356t-17-1; amend. Acts 1950, ch. 32, § 1.

176.270. Finance and Administration Cabinet to furnish income estimates.

On or before June 1 of each year, the Finance and Administration Cabinet shall furnish to the Department of Highways estimates of income for the ensuing fiscal year. Upon the request of the Department of Highways the Finance and Administration Cabinet shall, from time to time, furnish revised estimates of income.

History. 4356t-17-2; amend. Acts 1950, ch. 32, § 2; 1988, ch. 273, § 9, effective July 15, 1988.

NOTES TO DECISIONS

1.Department of Highways Budget.

Budget of Department of Highways is based on estimate of income required to be furnished by department of revenue (now Revenue Cabinet) at beginning of each fiscal year. State Highway Com. v. Coleman, 236 Ky. 444 , 33 S.W.2d 318, 1930 Ky. LEXIS 768 ( Ky. 1930 ).

2.Charging and Crediting Actual Revenue.

After close of fiscal year, the difference between estimated receipts of department and actual receipts for that year should be charged or credited. State Highway Com. v. Coleman, 236 Ky. 444 , 33 S.W.2d 318, 1930 Ky. LEXIS 768 ( Ky. 1930 ).

While it is duty of department to conduct business on basis of revenue provided, surplus for one year will be available for succeeding year and any deficit should be taken care of in succeeding year. State Highway Com. v. Coleman, 236 Ky. 444 , 33 S.W.2d 318, 1930 Ky. LEXIS 768 ( Ky. 1930 ).

176.280. Legal service — Duty of county attorneys.

The county attorneys shall each render legal service to the department in carrying out its duties. The services so rendered shall be without additional compensation, and no county attorney shall be required to render service outside his county.

History. 4356t-3f.

Research References and Practice Aids

Cross-References.

Assistant attorneys general for Department of Highways, duties, term, salaries, KRS 15.105 .

Kentucky Law Journal.

Underwood, Part-Time Prosecutors and Conflicts of Interest: A Survey and Some Proposals, 81 Ky. L.J. 1 (1993).

Richardson, Acquisition of Right of Way for Highway Purposes in Kentucky — Right of Eminent Domain and Just Compensation, 36 Ky. L.J. 159 (1948).

176.290. Renumbered as KRS 44.070.

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 189, §§ 1, 3) was recompiled as KRS 44.070 .

176.300. Renumbered as KRS 44.080.

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 189, § 5) was recompiled as KRS 44.080 .

176.310. Renumbered as KRS 44.090.

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 189, § 6) was recompiled as KRS 44.090 .

176.320. Renumbered as KRS 44.100.

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 189, §§ 7, 8) was recompiled as KRS 44.100 .

176.330. Renumbered as KRS 44.110.

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 189, § 3(a)) was recompiled as KRS 44.110 .

176.340. Renumbered as KRS 44.120.

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 189, § 2) was recompiled as KRS 44.120 .

176.350. Renumbered as KRS 44.130.

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 189, § 4) was recompiled as KRS 44.130 .

176.360. Renumbered as KRS 44.140.

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 189, § 9) was recompiled as KRS 44.140 .

176.370. Renumbered as KRS 44.150.

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 189, § 10) was recompiled as KRS 44.150 .

176.380. Renumbered as KRS 44.160.

Compiler’s Notes.

This section (Enact. Acts 1946, ch. 189, § 3(b)) was recompiled as KRS 44.160 .

176.400. Covered wooden bridges — Administrative control — Title — Maintenance.

  1. Administrative control of covered wooden bridges designated as state shrines shall be shared by the Transportation Cabinet, the Department of Parks, the Kentucky Heritage Council, and the authorities created under KRS 176.410 .
  2. The Transportation Cabinet shall maintain all covered wooden bridges in the Commonwealth which are on public roads and open to vehicular traffic. The cabinet shall maintain the bridges for safety and for historical and aesthetic beauty. The cabinet shall prepare estimates of the cost of maintaining covered wooden bridges which are on public roads and open to vehicular traffic and shall identify and include the total of these estimates in its biennial budget request.
  3. The cabinet may delegate its responsibility for maintenance of covered bridges located on roads maintained by a county to the local government responsible for such roads. Delegation of responsibility for maintenance of covered bridges to a local government shall require periodic inspection by the cabinet.
  4. Nothing in this section shall prevent an appropriate unit of government from closing a covered wooden bridge to vehicular traffic.
  5. The Department of Parks shall be responsible for all covered wooden bridges located in the Commonwealth which are on public property and no longer open to vehicular traffic. The department shall maintain these bridges in sound structural condition and for historical and aesthetic beauty. The department shall prepare estimates of the cost of maintaining covered wooden bridges for which it has a responsibility and shall identify and include the total of these estimates in its biennial budget request.
  6. When an appropriation is made to a covered wooden bridge authority created under the provisions of KRS 176.410 , the Department of Parks shall transfer the obligation of maintenance for the bridges designated in the appropriation to that authority.
  7. An authority may retransfer the right of possession or title and the obligation of maintenance of covered bridges under its jurisdiction to the Department of Parks.
  8. The Heritage Division of the Kentucky Heritage Council may determine that an authority is inactive or unable to discharge its responsibilities and may transfer the right of title or possession to covered bridges under the jurisdiction of the authority to the Department of Parks. The division shall give notice of such an action to the authority and the Department of Parks.
    1. Prior to administering a project that involves the preservation, restoration, or maintenance of a covered wooden bridge, the administering entity shall:
      1. Consider all recommendations submitted pursuant to KRS 176.410 by a covered wooden bridge authority pertaining to any bridge involved in the project;
      2. Consult with the covered wooden bridge authority dedicated to the preservation, restoration, and maintenance of any bridge involved in the project, if such an authority exists; and
      3. Hold at least one (1) public hearing within the county in which the bridge is located, with due notice given pursuant to KRS Chapter 424. The public hearing shall be held no later than sixty (60) days prior to the date the project is commenced or contracted, whichever is earlier.
    2. The requirements of paragraph (a) of this subsection shall not apply to any emergency maintenance project that involves a covered wooden bridge if the project cost is less than fifty thousand dollars ($50,000).
  9. In addition to the requirements set forth in subsection (9) of this section, any project that involves the preservation, restoration, or maintenance of a covered wooden bridge shall require approval by the Kentucky Heritage Council prior to the date the project is commenced or contracted, whichever is earlier.

History. Enact. Acts 1980, ch. 323, § 1, effective July 15, 1980; 1982, ch. 396, § 45, effective July 15, 1982; 2004, ch. 164, § 1, effective April 21, 2004.

176.410. County or multicounty covered wooden bridge authority — Membership of authority — Duties and functions of authority.

  1. Except as provided by KRS 176.400 , at the request of citizens or organizations of a county or multicounty region, the Heritage Division of the Kentucky Heritage Council shall certify to the Governor the creation of a county or multicounty covered wooden bridge authority for that county or multicounty region.
    1. An authority shall consist of members appointed as follows:
      1. The Governor shall appoint one (1) member from each participating county, unless the authority has only one (1) participating county, in which case the Governor shall appoint three (3) members from the participating county; and
      2. The fiscal court of each participating county shall submit to the Governor a list of three (3) candidates, and the Governor shall appoint one (1) member from each list unless the authority has two (2) or fewer participating counties, in which case the Governor shall appoint two (2) members from each list.
    2. The members of an authority shall hold office for terms of four (4) years and until their successors are appointed and qualify except that the terms of office of the members first appointed shall be staggered. An authority may elect by majority voice officers deemed necessary by its members. A majority of the members shall constitute a quorum. An authority shall meet at the call of its chairman, but at least twice during each calendar year.
  2. An authority shall be dedicated to the preservation, restoration, and maintenance of all covered wooden bridges in the county or multicounty region for which it is created.
    1. For covered wooden bridges not open to vehicular traffic, the duties and functions of an authority shall be to:
      1. Review, recommend, and administer projects and programs to insure the proper preservation, restoration, and maintenance of covered wooden bridges in the county or multicounty region for which it is created.
      2. Advise, consult, and cooperate with state, local, and national officials and agencies, and with the Heritage Division of the Kentucky Heritage Council as provided by KRS 176.400 and 176.410 , to accomplish the purposes for which the authority is established.
    2. For covered wooden bridges open to vehicular traffic, the duties and functions of an authority shall be to:
      1. Make recommendations to the Transportation Cabinet and local officials on the proper preservation, restoration, and maintenance of covered wooden bridges in the county or multicounty region for which it is created.
      2. Advise, consult, and cooperate with state, local, and national officials and agencies to accomplish the purposes for which the authority is established.
  3. An authority may:
    1. Accept grants or other funds or property from any source, public or private;
    2. Enter into such contractual relationships as may be necessary;
    3. Acquire real property, by gift or devise or by purchase pursuant to the provisions of KRS 45A.045 , and hold the same in the name of the Commonwealth for the use and benefit of the authority;
    4. Adopt rules and regulations necessary to the performance of its duties and functions.
  4. Members of an authority may be reimbursed in accordance with the provisions of KRS Chapters 44 and 45 for actual and reasonable expenses incurred in the furtherance of the authority’s activities.
  5. The receipt, control, and expenditure of funds shall be subject to the general provisions of the Kentucky Revised Statutes governing financial administration of state agencies.
    1. For covered wooden bridges not open to vehicular traffic, each authority shall develop a program for the preservation, restoration, and maintenance of those covered wooden bridges in the county or multicounty region for which it was established. It shall select the bridges to be preserved, restored, or maintained within a biennium and shall prepare estimates of the cost of preservation, restoration, or maintenance within that biennium.
    2. The program developed by an authority shall be submitted to the Heritage Division of the Kentucky Heritage Council. Upon approval by the division, the authority shall submit its program as its biennial budget request.
    3. When an appropriation is made to an authority to fund its program for the preservation, restoration, and maintenance of covered wooden bridges, title to all covered wooden bridges to be preserved, restored, or maintained under its authority shall be transferred to the authority. Preservation, restoration, and maintenance of covered wooden bridges shall comply with the program approved by the Heritage Division of the Kentucky Heritage Council and shall be administered by the authority. Each authority is authorized to enter into any agreement or contract necessary to implement an approved and funded program.
  6. For covered wooden bridges open to vehicular traffic, each authority shall develop a biennial list of recommendations for the preservation, restoration, and maintenance of those covered wooden bridges in the county or multicounty region for which it was created. This list shall be submitted biennially to the Transportation Cabinet and all fiscal courts within the authority’s jurisdiction.
  7. There is established the covered wooden bridge authority for the counties of Bracken, Fleming, Lewis, Mason, and Robertson as a pilot project.

History. Enact. Acts 1980, ch. 323, § 2, effective July 15, 1980; 1982, ch. 396, § 46, effective July 15, 1982; 1990, ch. 496, § 55, effective July 13, 1990; 2004, ch. 164, § 2, effective April 21, 2004.

176.415. Flags to be displayed at rest areas — Human trafficking hotline telephone number to be prominently displayed in each rest area restroom.

  1. The Department of Highways shall display the following flags at each rest area along the Commonwealth’s interstate and turnpike system:
    1. The flag of the United States of America, to honor our country and the democratic ideals of our forefathers;
    2. The flag of the Commonwealth of Kentucky, as specified by KRS 2.030 , to honor the Commonwealth and its citizens; and
    3. The flag of the National League of Families of American Prisoners of War and Missing in Southeast Asia, the black and white banner commonly known as the POW/MIA flag, which symbolizes America’s missing service members and our unwavering determination to account for them.
  2. The Department of Highways shall post in every restroom located on the premises of each rest area in the Commonwealth a printed sign in English and Spanish at least eleven (11) inches by fourteen (14) inches in size, with letters at least one (1) inch high, displaying the current telephone hotline number of the National Human Trafficking Resource Center or any federally funded successor entity. The sign shall be:
    1. Created using gender-neutral language supplied to the Department of Highways by the Cabinet for Health and Family Services; and
    2. Posted in a prominent place easily seen by patrons.

HISTORY: Enact. Acts 2011, ch. 28, § 1, effective June 8, 2011; 2017 ch. 171, § 3, effective June 29, 2017.

176.419. Definition of “project” and “six (6) year road plan” for KRS 45.245, 45.246, 176.420, 176.430, and 176.440. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 299, § 1, effective July 15, 1994; 1998, ch. 532, § 1, effective July 15, 1998; 2001, ch. 58, § 7, effective June 21, 2001) was repealed by Acts 2009, ch. 78, § 49, effective June 25, 2009.

176.420. Continuing study of highway needs by Department of Highways — Submission of six (6) year road plan to General Assembly — Electronic version. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 138, § 1, effective July 15, 1982; 1990, ch. 502, § 6, effective July 1, 1990; 1992, ch. 433, § 4, effective July 14, 1992; 1994, ch. 299, § 5, effective July 15, 1994; 1998, ch. 532, § 2, effective July 15, 1998; 2001, ch. 58, § 8, effective June 21, 2001) was repealed by Acts 2009, ch. 78, § 49, effective June 25, 2009.

176.430. Transportation Cabinet to study needs of highways and develop recommended six (6) year road plan that identifies individual transportation projects — Proposed biennial highway construction plan — Factors to be considered in development of each project — Monthly transmission of project data to General Assembly — Cabinet may expend funds necessary to complete authorized projects — Digitized maps.

  1. The Transportation Cabinet shall undertake a continuing study of the needs of the highways under its jurisdiction for the purpose of bringing existing facilities to acceptable standards or for the replacement of existing facilities when required.
  2. The Transportation Cabinet shall develop a recommended six (6) year road plan that identifies the individual transportation projects or portions thereof that are scheduled to be constructed in each county. The recommended six (6) year road plan shall include a recommended biennial highway construction plan. The recommended six (6) year road plan and recommended biennial highway construction plan shall be submitted to the General Assembly as required by KRS 48.110(6)(f). The six (6) year road plan shall include but shall not be limited to the following information for each project:
    1. The county name;
    2. The Kentucky Transportation Cabinet project identification number;
    3. The route where the project is located;
    4. The length of the project;
    5. A description of the project and the scope of improvement;
    6. The type of local, state, or federal funds to be used on the project;
    7. The stage of development for the design, right-of-way, utility, and construction phase;
    8. The fiscal year in which each phase of the project should commence;
    9. The estimated cost for each phase of the project; and
    10. The estimated cost to complete the project.
  3. The Transportation Cabinet shall identify projects in the six (6) year road plan that may, in accordance with this section, be advanced from later years, to maximize the use of all funds available to the cabinet, and to plan for the historical precedent of projects being delayed due to unforeseen circumstances. As required by KRS 48.110 , the Governor shall submit to the General Assembly, as part of the proposed biennial highway construction plan, a list of projects from the last four (4) years of the six (6) year road plan, not to exceed ten percent (10%) of the recommended biennial highway construction appropriation, which can be advanced if additional money is received and all projects included in the enacted biennial highway construction plan have been advanced or completed to the extent possible.
  4. In developing the design, right-of-way, utility, and construction phase of each project, the following factors shall be considered but are not exclusive:
    1. Alignment of existing roads;
    2. The width or elevation of existing roadways and shoulder surfaces;
    3. The width of rights-of-way;
    4. The cost of each phase of the project plus a separate identification of the cabinet’s administrative costs for each phase;
    5. The type and volume of traffic;
    6. The condition of structures and drainage;
    7. The accident rate;
    8. The geographic distribution of roadways to be constructed or reconstructed; and
    9. The social, economic, and environmental impact of the proposed project.
  5. The Transportation Cabinet shall, on a monthly basis, transmit electronically to the General Assembly through the Legislative Research Commission a report on all activity relating to all projects with open activity conducted by the Transportation Cabinet during the biennium. The data for each project shall contain all cabinet activity on projects funded through the road fund, including resurfacing and rural and secondary projects, and shall also include but not be limited to the following:
    1. District number and project item number, which shall remain in effect throughout the entire life of the project, subject to the following conditions:
      1. A project split into more than one (1) project during its life shall maintain the same item number with a suffix;
      2. Two (2) or more projects merged shall be identified by the new merged project maintaining the project item number of one (1) of the projects being merged. The total cost of the merged project shall be set forth; and
      3. A project that has been merged with another project and all funds authorized for the initial project that is subsequently shifted to the new merged project shall remain in the six (6) year road plan and shall be identified with a cross reference to the superseded project and superseded project item number;
    2. The county name and county number;
    3. The route prefix, route number, and route suffix;
    4. Termini description including beginning milepoint and ending milepoint;
    5. Type of work;
    6. Length of the project in miles;
    7. Project authorization system number, date the project was authorized, the TD-10 number authorizing the project, and the amount authorized;
    8. Year the project was enacted in a six (6) year road plan, and the notation “A” if the project is active and the notation “I” if the project is inactive;
    9. The phase code “P” for the planning phase, “D” for the design phase, “R” for the right-of-way phase, “U” for the utility phase, and “C” for the construction phase;
    10. The original estimate, fund code, and fiscal year each phase is expected to begin as enacted in the six (6) year road plan;
    11. The current estimate, fund code, and fiscal year each phase is expected to begin;
    12. The status of funding for each phase;
    13. The date current information has been changed for each phase;
    14. The letting date for each phase;
    15. Total number of right-of-way parcels, deeds signed, suits filed, and right-of-way entries completed;
    16. The date right-of-way plans are to be submitted to the central office in Frankfort and the status of right-of-way plans;
    17. Total utility relocations to be completed and the actual number completed;
    18. The award date, the construction project code number, and the award amount for the construction phase;
    19. The total number of contract change orders issued for each phase, the date of the most recent change order, and the net change order amount for each phase;
    20. The name of the contractor, the contractor’s vendor number in the Statewide accounting system, current contract amount, and the current amount earned by the contractor;
    21. The estimated date for completion of the project, current percentage of work completed based upon time, and the actual contract completion date;
    22. The department’s engineer’s estimate for the project; and
    23. Total expenditures by phase.
  6. The department shall transmit on a monthly basis, electronic data to the General Assembly through the Legislative Research Commission on the activity on all state resurfacing projects and all rural secondary projects that shall include as much applicable information as possible as identified in subsection (5) of this section.
  7. In implementing the enacted biennial highway construction plan, the Transportation Cabinet may expend funds necessary to complete the projects authorized, amended only by variations necessitated by bid or unforeseen circumstances.
  8. The department shall pursue digitizing all Kentucky roads on a geographic information system as funds are made available by the General Assembly. The digitized maps shall merge map layers and text layers to produce maps that display geographic information and textual information detailing the six (6) year road plan as enacted by the General Assembly.

History. Enact. Acts 1982, ch. 138, § 2, effective July 15, 1982; 1990, ch. 502, § 7, effective July 1, 1990; 1992, ch. 433, § 5, effective July 14, 1992; 1994, ch. 299, § 6, effective July 15, 1994; 1998, ch. 532, § 3, effective July 15, 1998; 2009, ch. 78, § 20, effective June 25, 2009.

176.431. Transportation Cabinet’s authorization for demonstration road and bridge related projects in each fiscal year — Bidding process and basis of selection for projects — Annual report to Interim Joint Committee on Appropriations and Revenue.

    1. Notwithstanding any conflicting provisions of this chapter and KRS Chapters 45A and 177, each fiscal year, the Transportation Cabinet is authorized to utilize design/build procurement methods for up to:
      1. Five (5) major demonstration road and bridge related projects, with a total cost of each project not to exceed three hundred million dollars ($300,000,000); and
      2. Ten (10) demonstration road and bridge related projects, with a total cost of each project not to exceed seventy-five million dollars ($75,000,000).
    2. The projects outlined in this subsection shall be identified in the biennial highway construction plan.
  1. For procurement purposes, the Transportation Cabinet shall utilize a qualifications- based bidding process within the context of the provisions of this chapter. The projects shall be selected based on engineering factors that determine a design/build process will provide the best value for the Commonwealth. Factors to consider may include but not be limited to the following: project delivery schedule, technical complexity, constructability, and estimated project cost.
  2. The secretary of the Transportation Cabinet shall determine the nature and scope of each design/build project, and shall submit a report identifying and detailing the demonstration road and bridge related projects, including the estimated cost savings, to the Interim Joint Committee on Appropriations and Revenue by December 1 of each fiscal year.

HISTORY: Enact. Acts 2013, ch. 67, § 1, effective June 25, 2013; 2018 ch. 55, § 1, effective July 14, 2018.

Legislative Research Commission Note.

(6/25/2013). Under the authority of KRS 7.136(1), the Reviser of Statutes has inserted subsection designations into this statute. The words in the text were not changed.

176.432. Fiscal-year-to-date funding status reports on highway construction contingency account

  1. The department shall transmit, on a quarterly basis, electronic data to the General Assembly through the Legislative Research Commission giving a fiscal-year-to-date funding status report on the highway construction contingency account established under KRS 45.247 .
  2. The report shall include:
    1. The available budget of the account;
    2. Authorizations by funding code category;
    3. The total available balance in the account; and
    4. For the most recent quarter, a listing of individual projects and agreements authorized, including the location, a physical description, and amount of authorization.

HISTORY: 2019 ch. 45, § 1, effective June 27, 2019.

176.433. State contingency funding code for six-year road plan.

The Transportation Cabinet shall create a new funding code to be used in the six (6) year road plan to be known as state contingency funds and the abbreviation the cabinet shall use for this funding code shall be SC. The state contingency funding code shall be in addition to all other funding codes used by the cabinet in the six (6) year road plan and shall be used to identify all projects funded with moneys from the highway construction contingency account established under KRS 45.247 .

History. Enact. Acts 1998, ch. 532, § 8, effective July 15, 1998; 2019 ch. 45, § 2, effective June 27, 2019.

176.435. Electronic information databases on construction programs. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 433, § 8, effective July 14, 1992) was repealed by Acts 1998, ch. 532, § 9, effective July 15, 1998.

176.440. State highway engineer to provide cost estimate for any project that legislator desires in six year road plan.

The state highway engineer shall provide a cost estimate for any project that a member of the General Assembly desires to be considered for advancement or inclusion in the six (6) year road plan.

History. Enact. Acts 1982, ch. 138, § 3, effective July 15, 1982; 1990, ch. 502, § 8, effective July 1, 1990; 1992, ch. 433, § 6, effective July 14, 1992; 1994, ch. 299, § 7, effective July 15, 1994; 1998, ch. 532, § 4, effective July 15, 1998; 2001, ch. 58, § 17, effective June 21, 2001; 2009, ch. 78, § 21, effective June 25, 2009.

176.450. Secretary’s emergency fund — No project to be undertaken if not included in program — Exceptions — Additional projects to be submitted to interim joint committee on transportation — Cost limit for preliminary analysis of prospective projects. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 138, § 4, effective July 15, 1982) was repealed by Acts 1990, ch. 502, § 10, effective April 11, 1990.

176.460. Project to be commenced in biennium for which it is planned — Effect of failure to commence — Exceptions — Reinstatement of funds for delayed project — Limitations on application of KRS 176.420 to 176.460. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1982, ch. 138, § 5, effective July 15, 1982; 1990, ch. 502, § 9, effective April 11, 1990; 1992, ch. 433, § 7, effective July 14, 1992; 1994, ch. 299, § 8, effective July 15, 1994) was repealed by Acts 1998, ch. 532, § 9, effective July 15, 1998.

176.470. Annual report on status of highway projects. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1994, ch. 299, § 9, effective July 15, 1994) was repealed by Acts 1998, ch. 532, § 9, effective July 15, 1998.

176.500. Mississippi River Parkway Commission of Kentucky — Members — Duties — Reimbursement for expenses.

  1. The Mississippi River Parkway Commission of Kentucky is hereby established to serve as the local coordinating agency for the development of the Great River Road along the Mississippi River from Canada to the Gulf of Mexico. The commission shall be attached to the Office of the Secretary of the Tourism, Arts and Heritage Cabinet for administrative purposes.
  2. The commission shall consist of the following ten (10) members: Four (4) citizen members, appointed by the Governor, and consisting of one (1) member from each of the four (4) counties that border the Mississippi River, who shall serve a term of four (4) years and may serve until a successor is appointed. Four (4) members shall be the respective county judges/executive of Ballard, Carlisle, Fulton, and Hickman Counties in Kentucky. Other members shall be the secretary of the Tourism, Arts and Heritage Cabinet or his designee; and the secretary of the Transportation Cabinet, or his designee. The commission shall annually elect a chairman and shall meet quarterly or upon call of the chairman with ten (10) days’ written notice. Six (6) members present shall constitute a quorum for the official conduct of business. The commission may enter into contracts with the Purchase Area Development District to provide administrative services.
  3. Members shall receive no compensation but shall be reimbursed according to state regulations for actual and necessary expenses incurred in conducting commission business.
  4. The commission shall assure that the proper direction is taken in developing a corridor of scenic, historical, and archaeological significance through the Kentucky counties of Ballard, Carlisle, Hickman, and Fulton.

History. Enact. Acts 1986, ch. 99, § 1, effective July 15, 1986; 1990, ch. 114, § 1, effective July 13, 1990; 1996, ch. 194, § 57, effective July 15, 1996; 1998, ch. 48, § 15, effective July 15, 1998; 2005, ch. 95, § 39, effective June 20, 2005; 2009, ch. 16, § 53, effective June 25, 2009.

176.505. Motorcycle Advisory Commission for Highway Safety established.

  1. The Motorcycle Advisory Commission for Highway Safety is established as an advisory body to assist the Transportation Cabinet in ensuring that highway design, construction, and maintenance policies and procedures consider the specific needs of motorcyclists.
  2. The commission shall examine Transportation Cabinet policies and procedures in areas including but not limited to crash barrier design, road maintenance practices, road construction, traffic control devices, and intelligent transportation systems, and recommend changes where necessary.

History. Enact. Acts 2003, ch. 122, § 1, effective June 24, 2003.

176.506. Membership of commission — Officers — Meetings.

  1. The Motorcycle Advisory Commission for Highway Safety shall be composed of seven (7) members, appointed as follows:
    1. One (1) representative of the Office of Project Delivery and Preservation within the Kentucky Transportation Cabinet’s Department of Highways, appointed by the Governor;
    2. One (1) representative of the Office of Project Development within the Kentucky Transportation Cabinet’s Department of Highways, appointed by the Governor;
    3. One (1) representative of the Department of Kentucky State Police, appointed by the Governor;
    4. Two (2) representatives of the Kentucky Motorcycle Association, to be appointed by the Governor from a list of five (5) nominees selected by the association;
    5. One (1) member of the Kentucky Motorcycle Safety Education Advisory Commission, appointed by the Governor; and
    6. One (1) representative of the Kentucky Association of Highway Contractors, to be appointed by the Governor from a list of five (5) nominees selected by the association.
  2. Members of the Motorcycle Advisory Commission for Highway Safety shall serve a term of four (4) years. Sitting members shall be eligible to succeed themselves.
  3. Commission members shall receive no compensation for their services and shall not be compensated for expenses incurred from travel or in connection with the performance of their duties as commission members.
  4. The commission shall elect its chair and vice chair from its membership.
  5. The commission shall meet quarterly or upon the call of the chair or the request of the secretary of the Transportation Cabinet.
  6. A majority of the members of the commission constitutes a quorum and the commission may make recommendations only at meetings where a quorum is present.
  7. The commission shall keep a record of its meetings and recommendations.
  8. For administrative purposes, the commission shall be attached to the Office of Highway Safety within the Department of Highways.

History. Enact. Acts 2003, ch. 122, § 2, effective June 24, 2003; 2007, ch. 85, § 184, effective June 26, 2007; 2009, ch. 13, § 8, effective June 25, 2009.

176.5061. Motorcycle safety education program — Standards — Administrative regulations.

  1. The Transportation Cabinet shall establish a motorcycle safety education program. The program shall provide for instructor training courses, instructor approval, and rider training courses for novice riders that shall be held at locations accessible to Kentucky residents. The program may provide for the following:
    1. Rider training courses for novice and experienced riders;
    2. Activities to increase the awareness of a motorcyclist’s knowledge of the effects of alcohol and drug use;
    3. Driver improvement efforts;
    4. Licensing improvement efforts;
    5. Program promotion activities;
    6. Enhancement of the public’s awareness of motorcycles; and
    7. Enhancement of motorcycle safety through education.
  2. The Transportation Cabinet shall promulgate administrative regulations, pursuant to KRS Chapter 13A, governing the development of standards for, and the administration of, a motorcycle safety education program. Standards for the motorcycle rider training courses shall include standards for course content, delivery, curriculum, materials, student evaluation, and the training and approval of instructors. Standards shall meet or exceed established national standards for motorcycle rider training courses prescribed by the National Highway Traffic Safety Administration.

History. Enact. Acts 2005, ch. 122, § 1, effective July 1, 2005; 2007, ch. 85, § 51, effective June 26, 2007; 2018 ch. 39, § 1, effective July 14, 2018; 2021 ch. 188, § 3, effective June 29, 2021; renumbered from KRS § 15A.350 by 2021 ch. 190, § 1, effective June 29, 2021.

Compiler’s Notes.

This section was formerly compiled as KRS 15A.350 and was renumbered as this section effective June 29, 2021.

Legislative Research Commission Notes.

(6/29/2021). This statute was amended by 2021 Ky. Acts chs. 188 and 190, which do not appear to be in conflict and have been codified together.

176.5062. Motorcycle rider training courses — Exemption from motorcycle driver’s license skill test.

  1. The motorcycle safety education program shall offer motorcycle rider training courses designed to develop and instill the knowledge, attitudes, habits, and skills necessary for the proper operation of a motorcycle. The courses shall be taught by instructors approved under KRS 176.5063 and shall include no fewer than eight (8) hours of hands-on instruction for a novice course.
  2. Rider training courses shall be open to a resident of any state who is eligible for a motor vehicle instruction permit in the person’s home state.
  3. Rider training courses shall be provided free of charge to applicants under eighteen (18) years of age.
  4. The cabinet shall issue certificates of completion in a manner and form prescribed by administrative regulations promulgated pursuant to KRS Chapter 13A to persons who satisfactorily complete the requirements of a motorcycle rider training course offered or authorized by the state program.
  5. The Transportation Cabinet shall exempt applicants for a motorcycle driver’s license or endorsement from the licensing skill test if they present satisfactory evidence of successful completion of an approved rider training course that includes a similar test of skill. Applicants under this subsection who successfully completed their testing on a three (3) wheeled motorcycle shall be subject to the restrictions outlined in KRS 186.480(3).
    1. The Motorcycle Safety Education Commission shall publish a list of approved rider training courses which meet the licensing requirements.
    2. The Motorcycle Safety Education Commission shall publish a list of approved instructor training courses which meet the licensing requirements.

History. Enact. Acts 2005, ch. 122, § 2, effective July 1, 2005; 2018 ch. 39, § 2, effective July 14, 2018; renumbered from KRS § 15A.352 by 2021 ch. 190, § 2, effective June 29, 2021.

Compiler’s Notes.

This section was formerly compiled as KRS 15A.352 and was renumbered as this section effective June 29, 2021.

Legislative Research Commission Notes.

(6/29/2021). This statute was amended by 2021 Ky. Acts chs. 188 and 190, which do not appear to be in conflict and have been codified together.

176.5063. Instructors — Requirements for approval — Approval of nonresidents — Review of status every two years.

  1. The cabinet shall approve instructors for the motorcycle rider training courses. A person shall not be approved as an instructor unless the person meets the requirements of this section and administrative regulations of the cabinet and holds a currently valid instructor certification issued by the governing body of a program approved under KRS 176.5062(6)(b).
  2. The program shall offer instructor training courses to prepare instructors to teach the motorcycle rider training courses. Successful completion of the instructor training course shall require the participant to demonstrate knowledge of the course material, knowledge of proper motorcycle operation, motorcycle riding proficiency, and the necessary aptitude for instructing students. A person shall not be approved as an instructor unless the person has successfully completed the instructor training course or an equivalent course offered in another state.
  3. The cabinet shall establish additional requirements for the approval of instructors, including but not limited to the following:
    1. The person shall have a high school diploma or its equivalent;
    2. The person shall be at least eighteen (18) years of age and hold a valid motorcycle driver’s license or endorsement;
    3. The person shall have at least two (2) years of recent motorcycle riding experience; and
    4. The person’s driver’s license shall not have been suspended or revoked at any time during the preceding two (2) years or at any time within the preceding five (5) years for any alcohol or drug related offense.
  4. In the case of a nonresident, the cabinet shall obtain and review the person’s driving record from the state where the person is licensed prior to approval or reapproval of the person as an instructor.
  5. The cabinet shall review the status of all approved instructors at least once every two (2) years and shall withdraw approval from any instructor who is no longer qualified under the requirements of this section. The cabinet shall immediately withdraw approval of an instructor when it receives adequate notice of any disqualification.

History. Enact. Acts 2005, ch. 122, § 3, effective July 1, 2005; 2018 ch. 39, § 3, effective July 14, 2018; renumbered from KRS § 15A.354 by 2021 ch. 190, § 3, effective June 29, 2021.

Compiler’s Notes.

This section was formerly compiled as KRS 15A.354 and was renumbered as this section effective June 29, 2021.

176.5064. Powers of cabinet.

  1. The cabinet may enter into contracts with public or private entities for course delivery and for the provision of services or materials necessary for implementation of the program.
  2. The cabinet may offer motorcycle rider training courses directly and may approve courses offered by independent public or private entities as authorized program courses if they are administered and taught in full compliance with standards established for the state program.
  3. The cabinet may establish by administrative regulation reasonable enrollment fees to be charged for persons who participate in motorcycle rider training courses offered by the cabinet and for persons who participate in approved courses offered by independent public or private entities.
  4. The cabinet may utilize up to ten percent (10%) of available program funds each fiscal year to defray its own expenses in offering motorcycle rider training courses and may reimburse entities that offer approved courses for the expenses incurred in offering the courses to minimize course enrollment fees charged to the students.
  5. The cabinet shall provide meeting facilities and administrative assistance and support to the Motorcycle Safety Education Commission and the expenses shall be paid from the budget of the cabinet. The cabinet shall prepare and maintain all minutes of the commission’s proceedings and shall be the custodian of all files and records of the commission.

History. Enact. Acts 2005, ch. 122, § 4, effective July 1, 2005; renumbered from KRS § 15A.356 by 2021 ch. 190, § 4, effective June 29, 2021.

Compiler’s Notes.

This section was formerly compiled as KRS 15A.356 and was renumbered as this section effective June 29, 2021.

176.5065. Motorcycle safety education program fund.

  1. The motorcycle safety education program fund is established as a restricted fund in the State Treasury. Moneys in the fund are hereby appropriated for the purposes set forth in KRS 176.5061 to 176.5069 . Moneys in the fund shall be utilized to provide motorcycle training courses as established in KRS 176.5062 and for implementation of the program, including reimbursement of entities that offer approved motorcycle rider education courses. The Transportation Cabinet may deduct up to ten percent (10%) of available program funds per fiscal year for administrative costs from the motorcycle safety education program fund.
  2. If at the end of each fiscal year money remains in the fund, it shall be retained in the fund. The interest and income earned on money in the fund, after deducting any applicable charges, shall be credited to the motorcycle safety education program fund.
  3. The following revenue shall be credited to the fund:
    1. Four dollars ($4) of the annual registration fee for each registered motorcycle as provided in KRS 186.535 ;
    2. Four dollars ($4) of the application fee for a motorcycle instruction permit as provided in KRS 186.531 ;
    3. Ten dollars ($10) of the fee for each original or renewal motorcycle driver’s license or endorsement as provided in KRS 186.531 ; and
    4. Any federal or state motorcycle safety funds granted to the program.

HISTORY: Enact. Acts 2005, ch. 122, § 5, effective July 1, 2005; 2007, ch. 85, § 52, effective June 26, 2007; 2017 ch. 100, § 36, effective January 1, 2019; 2018 ch. 39, § 5, effective July 14, 2018; 2018 ch. 39, § 6, effective January 1, 2019; renumbered from KRS § 15A.358 by 2021 ch. 190, § 5, effective June 29, 2021.

Compiler’s Notes.

This section was formerly compiled as KRS 15A.358 and was renumbered as this section effective June 29, 2021.

Legislative Research Commission Notes.

(7/1/2005). Under the authority of KRS 7.136 (1)(h), during codification a manifest clerical or typographical error has been corrected. In the second sentence of 2005 Ky. Acts ch. 122, sec. 5 (2), the phrase “motorcycle safety education fund” has been corrected to read “motorcycle safety education program fund” as it is clear from the context that the word “program” was erroneously omitted in that sentence.

176.5066. Revenues relating to motorcycle safety education program fund — Report.

The Transportation Cabinet shall report monthly to the Interim Joint Committee on Appropriations and Revenue on the revenues deposited into the motorcycle safety education program fund, the expenditures incurred, and the available balance in the fund. In addition, the cabinet shall identify the safety programs provided, the cost of the programs, location, and number of attendees. To facilitate the timely reporting of data under this section, the cabinet shall enter into agreements with entities that provide the training to require monthly billing and attendance records.

History. Enact. Acts 2005, ch. 122, § 6, effective July 1, 2005; 2007, ch. 85, § 53, effective June 26, 2007; renumbered from KRS § 15A.360 by 2021 ch. 190, § 6, effective June 29, 2021.

Compiler’s Notes.

This section was formerly compiled as KRS 15A.360 and was renumbered as this section effective June 29, 2021.

176.5067. Motorcycle Safety Education Commission — Membership — Terms — Meetings — Commission attached to Office of Highway Safety within the Department of Highways for administrative purposes.

  1. The Motorcycle Safety Education Commission is established as an independent body to help foster the growth and development of the motorcycle safety education program established under KRS 15A.350 .
  2. The Motorcycle Safety Education Commission shall be composed of seven (7) members, appointed as follows:
    1. One (1) representative of the Department of Kentucky State Police, appointed by the Governor;
    2. One (1) representative of the Transportation Cabinet, appointed by the Governor;
    3. One (1) instructor in the motorcycle safety education program, appointed by the Governor;
    4. Two (2) members of the Kentucky Motorcycle Association, to be appointed by the Governor from a list of five (5) nominees selected by the association;
    5. One (1) member appointed by the Governor from a list of three (3) nominees selected by the President of the Senate; and
    6. One (1) member appointed by the Governor from a list of three (3) nominees selected by the Speaker of the House of Representatives.
  3. Members of the Motorcycle Safety Education Commission shall serve a term of four (4) years. Sitting members shall be eligible to succeed themselves.
  4. Commission members shall receive no compensation for their services and shall not be compensated for expenses incurred from travel or in connection with the performance of their duties as commission members.
  5. The commission shall elect its chair and vice chair from its membership.
  6. The commission shall meet quarterly or upon the call of the chair or the request of the secretary of the Transportation Cabinet.
  7. The commission may take action only at meetings where a quorum is present.
  8. The commission shall keep a record of its meetings and recommendations.
  9. The commission shall be attached to the Office of Highway Safety within the Department of Highways for administrative purposes.

History. Enact. Acts 2005, ch. 122, § 7, effective July 1, 2005; 2007, ch. 85, § 54, effective June 26, 2007; renumbered from KRS § 15A.362 by 2021 ch. 190, § 7, effective June 29, 2021.

Compiler’s Notes.

This section was formerly compiled as KRS 15A.362 and was renumbered as this section effective June 29, 2021.

Legislative Research Commission Notes.

(6/26/2007). A technical correction has been made in this section by the Reviser of Statutes pursuant to KRS 7.136 .

176.5068. Responsibilities of Motorcycle Safety Education Commission.

The Motorcycle Safety Education Commission shall have the following responsibilities:

  1. Approve any administrative regulation relating to the motorcycle safety education program promulgated by the cabinet prior to the administrative regulation being filed with the Legislative Research Commission pursuant to KRS Chapter 13A;
  2. Approve any proposal by the cabinet to contract for services pursuant to KRS Chapter 45A or any interagency agreement for services relating to the motorcycle safety education program prior to the issuance of the contract or the agreement;
  3. Approve all expenditures of money relating to the motorcycle safety education program which has not been specifically authorized in the biennial budget;
  4. Establish for the cabinet the short-range and long-range goals to promote the continued growth and expansion of the motorcycle safety education program;
  5. Make recommendations regarding the administration of the motorcycle safety education program;
  6. Ensure that the cabinet and the motorcycle safety education program is informed on the views and philosophies of interested parties; and
  7. Act as a communication channel between the relevant state agencies and motorcyclists and the general public.

History. Enact. Acts 2005, ch. 122, § 8, effective July 1, 2005; 2007, ch. 85, § 55, effective June 26, 2007; renumbered from KRS § 15A.364 by 2021 ch. 190, § 8, effective June 29, 2021.

Compiler’s Notes.

This section was formerly compiled as KRS 15A.364 and was renumbered as this section effective June 29, 2021.

Legislative Research Commission Notes.

(7/1/2005). Under the authority of KRS 7.136(1)(h), during codification a manifest clerical or typographical error has been corrected. In subsection (2) of 2005 Ky. Acts ch. 122, sec. 8, the phrase “motorcycle education program” has been corrected to read “motorcycle safety education program” as it is clear from the context that the word “safety” was erroneously omitted.

176.5069. Annual report — Submitted to Governor and Legislative Research Commission and available for public review.

The cabinet shall prepare an annual report on the program to be submitted to the Governor and the Legislative Research Commission and made available to the public for review during the cabinet’s normal business hours. The report shall include:

  1. The number and location of courses offered;
  2. The number of:
    1. Applicants that have applied to be instructors during the previous year;
    2. Applicants approved to be instructors during the previous year; and
    3. Active instructors during the previous year;
  3. The number of students that registered for the various courses and the number of students that completed the various courses successfully;
  4. The number of permits, licenses, and registrations issued;
  5. The amount of money collected by category for permits, licenses, and registrations;
  6. Other information about program implementation as the cabinet shall deem appropriate; and
  7. An assessment of the overall impact of the program on motorcycle safety in the state.

The report shall also provide a complete accounting of revenue receipts of the motorcycle safety education program fund and of all moneys expended under the program.

History. Enact. Acts 2005, ch. 122, § 9, effective July 1, 2005; renumbered from KRS § 15A.366 by 2021 ch. 190, § 9, effective June 29, 2021.

Compiler’s Notes.

This section was formerly compiled as KRS 15A.366 and was renumbered as this section effective June 29, 2021.

176.510. Off-road Motorcycle and ATV Commission established — Purpose. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2005, ch. 139, § 1, effective June 20, 2005) was repealed by Acts 2006, ch. 152, § 16, effective July 12, 2006.

176.511. Membership of Off-road Motorcycle and ATV Commission — Meetings — Records. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2005, ch. 139, § 2, effective June 20, 2005) was repealed by Acts 2006, ch. 152, § 16, effective July 12, 2006.

176.520. Location of construction waste sites.

Waste sites identified in KRS 176.050 shall be on property owned by the state or a city, county, or other governmental agency and have the potential to be turned into industrial parks under the provisions of KRS 176.050 .

History. Enact. Acts 1998, ch. 181, § 2, effective March 27, 1998.

176.525. Use of identified potential industrial park sites as construction waste sites — Deeding of site to local government — Consultation with local government officials in site identification.

  1. During the construction phase of a new road construction project, potential industrial park sites identified during the design phase shall be used as waste sites by the department or the contractor who was awarded the project. Waste shall include, but not be limited, to nonhazardous nonsoluble construction material, steel, concrete, brick, asphalt, rock, dirt, or other fill material, but shall not include vegetation resulting from land clearing and grubbing, utility line maintenance, seasonal and storm-related cleanup, or any hazardous material or hazardous waste as defined in KRS 174.405 .
  2. The purpose of using the site as a repository for waste is to reduce the cost associated with the road project and to level or otherwise create a site sufficient to support industrial activities. The department or the department’s contractor shall use stabilization methods to reduce significant differential settling of the waste. The department or the department’s contractor shall continually grade and compact the waste site, and design surface contours to minimize water run-off, until the site is stable, final grading is complete, and the site is ready for building to begin on an industrial park.
  3. If a waste site is owned by the state, the state shall deed in fee simple the area used as a waste site to an interested city, county, or other governmental agency upon completion of the highway project after the final pay estimate has been processed.
  4. The department shall consult with the appropriate elected officials affected by new routes proposed to be constructed in the six (6) year road plan. The department shall consult with the appropriate elected officials to identify waste sites along the proposed new routes that may be potential industrial park sites.

History. Enact. Acts 1998, ch. 181, § 3, effective March 27, 1998; 2009, ch. 78, § 22, effective June 25, 2009.

176.990. Penalties.

  1. Any person who violates the provisions of KRS 176.122 to 176.128 shall be guilty of a misdemeanor and shall upon conviction be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500). Each day in which work is performed or materials furnished in violation of the provisions of KRS 176.122 to 176.128 shall constitute a separate offense.
  2. In addition to any other penalties provided in this section, any officer, agent or employee of the department who performs work or services beyond the right-of-way limits of public road or any person who accepts such work or services shall reimburse the department for all costs of the work or services performed and for any materials which shall have been used in the performance of the work or services.

History. Enact. Acts 1962, ch. 154, §§ 4, 5.

176.991. Penalties.

  1. Any person who willfully burns, defaces or destroys a covered bridge designated as a state shrine by the Kentucky Heritage Commission or by the heritage division shall be fined not more than five hundred dollars ($500) or confined in the county jail for not less than thirty (30) days or more than six (6) months or both. This shall be in addition to other penalties.
  2. Any person who exceeds the posted weight limits for a covered wooden bridge designated as a state shrine shall be fined not less than ten dollars ($10) or more than five hundred dollars ($500). This shall be in addition to other penalties.

History. Enact. Acts 1974, ch. 364, § 3; 1976, ch. 170, § 3; 1982, ch. 396, § 47, effective July 15, 1982.

CHAPTER 177 State and Federal Highways — Limited Access Facilities — Turnpikes — Road Bonds — Billboards — Recyclers

Definitions

177.010. Definitions for KRS 177.010 to 177.890.

As used in KRS 177.010 to 177.890 , unless the context otherwise requires:

  1. “Department” means Department of Highways of the Commonwealth of Kentucky;
  2. “Construct” includes reconstruct and improve;
  3. “Roads” includes rural roads; highways; bridges and bridge approaches; city streets, viaducts, and bridges;
  4. “Rural and secondary roads” includes:
    1. A county road as defined in KRS 178.010(1)(b);
    2. A publicly-owned road other than a state or federal highway, that is outside a city, town, or urban area having a population of twenty-five hundred (2,500) or more;
    3. A road that is classified as part of the rural secondary road system by the Department of Highways;
  5. “Public grade crossing” means the at-grade intersection of a railroad track or tracks and a road or highway that has been dedicated to public use and incorporated into either the state primary road system or the highway or road system of a county or municipality;
  6. “Cabinet” means the Kentucky Transportation Cabinet; and
  7. “Secretary” means the secretary of the Kentucky Transportation Cabinet.

History. 4356t-17-2e: amend. Acts 1964, ch. 23, § 1; 1992, ch. 229, § 8, effective July 14, 1992; 1996, ch. 238, § 1, effective July 15, 1996; 2002, ch. 64, § 1, effective July 15, 2002.

NOTES TO DECISIONS

1.Constitutionality.

The toll road act (KRS Ch. 177) does not violate the mandatory provision of Const., § 177 which declares that the Commonwealth should not construct a railroad or other highway since Const., § 157A nullified the prohibition in Const., § 177 in relation to public roads and restored the previous unrestricted power of the Commonwealth in relation to public roads. Standiford Civic Club v. Commonwealth, 289 S.W.2d 498, 1956 Ky. LEXIS 285 ( Ky. 1956 ), overruled, Department of Highways v. Jackson, 302 S.W.2d 373, 1957 Ky. LEXIS 189 ( Ky. 1957 ).

2.Purpose.

The intent and purpose of the progressive laws has been to put complete control, maintenance and supervision of state highways in the department of highways. Dixon v. Giles, 304 Ky. 354 , 200 S.W.2d 919, 1947 Ky. LEXIS 649 ( Ky. 1947 ).

3.Construct Defined.

The word “construct” has common usage and means “to build, form or make” or make better the original status and not to preserve or remedy the original status. Thompson v. Bracken County, 294 S.W.2d 943, 1956 Ky. LEXIS 153 ( Ky. 1956 ).

4.Federal Aid for Highway Construction.

State acceptance of federal aid for highway construction does not create any incumbrance or claim upon or against funds derived from “license, excise taxes and fees” arising from sale and use of motor vehicles, gasoline and other motor fuels. Dalton v. State Property & Bldgs. Com., 304 S.W.2d 342, 1957 Ky. LEXIS 276 ( Ky. 1957 ).

Opinions of Attorney General.

The state has reserved to itself control and regulation of highways thereby precluding counties from acquiring the implied authority to grant franchises for use of highway rights of way. OAG 64-44 .

Research References and Practice Aids

Cross-References.

Allocation of costs of eliminating grade crossing, KRS 277.065 .

Commonwealth not to construct highways, Const., § 177.

Highway construction lakes, KRS 150.625 .

Injury to plants on right of way of state roads, punishment for, KRS 433.750 .

Motor fuel tax, allocation to road fund, KRS 47.010 .

Public utility companies entitled to erect transmission lines and appliances along or across public roads and waters, KRS 416.140 .

Regulation of height and weight limits on specified roads, KRS 189.222 .

Regulation of speed and load limits of trucks, KRS 189.230 .

Kentucky Law Journal.

Richardson, Acquisition of Right of Way for Highway Purposes in Kentucky — Right of Eminent Domain and Just Compensation, 36 Ky. L.J. 159 (1948).

Highways

177.020. State primary roads to be designated and controlled by the Department of Highways — Notice to fiscal court and affected citizens — Rural secondary road system — Maintenance — Administrative regulations.

  1. The state primary road system shall consist of such public roads and city streets within the state as the Department of Highways determines shall be established, constructed, or maintained by the Department of Highways.
  2. The department shall, in its discretion, determine which public roads, or city streets, shall be established, constructed, or maintained by it, and shall determine the type of construction or maintenance for that road or city street.
  3. In the establishment of the state primary road system, the Department of Highways is authorized to select new routes, deviate from an existing route whenever it deems such deviation proper, eliminate from the state primary system roads or city streets which have been replaced as proper part of the system by the construction of a new facility or the selection of a new route. No permanent ingress or egress ramp of the state primary road system on fully controlled access facilities shall be closed, except for repairs, unless a public hearing is first held in the area to be affected by the closing. The Department of Highways shall, at least twenty (20) days before the hearing, advertise in a newspaper of general circulation in the area to be affected by the closing, the date, time, and place of the hearing.
  4. Prior to the advertisement for bids on any highway construction project, the Department of Highways shall meet with the fiscal court in the jurisdiction of the construction project for the purpose of advising the fiscal court of any state road or road segment which the department may seek to eliminate from the state primary road system upon completion of that highway construction project. The requirement of this subsection shall be in addition to the requirements of subsection (5) of this section.
  5. The department shall notify the fiscal court of the county at least four (4) months before it eliminates a road, road segment, bridge, or street in that county from the state primary road system. Upon receiving notice, the fiscal court may reject title and notify the department that the road shall not become part of the county road system. If the fiscal court declines, the department shall give notice to all private persons entitled to a necessary access over this road of their rights under this chapter; and, by petition of any private party entitled to such access, the road shall be deemed a discontinued state road and shall be closed to public use but remain open in accordance with its condition and use for the access of the private parties involved. In the absence of such petition, title shall be transferred to the owner or owners of the tract or tracts of land to which the road originally belonged.
  6. As used in this section, the term “rural secondary roads” shall mean the system of roads in this state which are usually considered farm-to-market roads and that are classified as part of the rural secondary road system by the Department of Highways. The roads in the rural secondary system shall be maintained with the proceeds of the provisions of KRS 177.320(1) and in no case shall the rural secondary system, as defined in this subsection, be less than eleven thousand eight hundred (11,800) miles.
  7. The establishment, construction, or maintenance of the state primary road system shall be under the direction and control of the Department of Highways. The commissioner of highways is authorized to adopt regulations necessary to the administration of this authority.

History. Enact. Acts 1964, ch. 23, §§ 2, 3; 1972, ch. 242, § 1; 1974, ch. 74, Art. IV, § 20(1); 1980, ch. 243, § 1, effective July 15, 1980; 1986, ch. 174, § 18, effective July 15, 1986; 1992, ch. 80, § 1, effective July 14, 1992; 2005, ch. 98, § 6, effective June 30, 2005; 2009, ch. 13, § 9, effective June 25, 2009.

Compiler’s Notes.

A former KRS 177.020 (4356t-5, 4356t-17-2a to 4356t-17-2d) was repealed by Acts 1964, ch. 23, § 3.

NOTES TO DECISIONS

Cited:

Zanella v. Grand Rivers, 687 F. Supp. 1105, 1988 U.S. Dist. LEXIS 5299 (W.D. Ky. 1988 ).

DECISIONS UNDER PRIOR LAW

Analysis

  1. Location.
  2. Addition of Roads.
  3. Control of County Road.
  4. Relinquishment of State Roads.
  5. City Construction.
  6. Construction and Maintenance.
  7. Ferries.
  8. Diversion of Water.
  9. Liability to Abutting Owner.
1.Location.

The location of road, which was to be part of primary road system, was for the state highway engineer and state highway commission (now Department of Highways) to decide, subject to approval of federal officials, and not for fiscal court. Black v. Road Comm'rs of Crittenden County, 201 Ky. 650 , 258 S.W. 94, 1924 Ky. LEXIS 613 ( Ky. 1924 ).

2.Addition of Roads.

The addition of new roads to the primary system did not impair a vested right. Indeed, the abolition of a road was within the power of the state. State Highway Com. v. Mitchell, 241 Ky. 553 , 44 S.W.2d 533, 1931 Ky. LEXIS 114 ( Ky. 1931 ).

3.Control of County Road.

Under law that provided that the department designated and controlled state primary roads the Department of Highways had the power to take over any county road and make it a part of the state primary road system, and having done so, could by its own order discontinue such road. Ex parte Commonwealth, Dep't of Highways, 291 S.W.2d 814, 1956 Ky. LEXIS 399 ( Ky. 1956 ).

4.Relinquishment of State Roads.

Laws providing that department could deviate from established road whenever proper and that permitted transfer of road from state to county impliedly authorized the Department of Highways to discontinue and relinquish to the counties any part of the state system of primary roads as it deemed proper, and after such relinquishment the Department of Highways had no further duty to repair or maintain. However, the relinquishment had to be by order or formal declaration, of which the county had notice. Jefferson County v. Department of Highways, 299 Ky. 358 , 185 S.W.2d 546, 1945 Ky. LEXIS 429 ( Ky. 1945 ).

5.City Construction.

Until the state exercised its authority, the city could have constructed a street which was part of state highway project, and have charged cost to abutting property owners. Mullinax v. Middlesboro, 247 Ky. 297 , 57 S.W.2d 11, 1933 Ky. LEXIS 393 ( Ky. 1933 ).

6.Construction and Maintenance.

The state was not compelled, when it undertook to construct a state highway project, to construct all of it at that time. It could construct any portion as it saw fit, leaving the rest to be completed at some future time. Mullinax v. Middlesboro, 247 Ky. 297 , 57 S.W.2d 11, 1933 Ky. LEXIS 393 ( Ky. 1933 ).

The commission (now department) had all power, except where expressly or by clear implication it was denied, in determining as to how a state highway project was to be constructed and maintained. State Highway Com. v. Smith, 250 Ky. 269 , 62 S.W.2d 1044, 1933 Ky. LEXIS 685 ( Ky. 1933 ).

Trial court erred in allowing a highway construction contractor to proceed, albeit unsuccessfully, with an action to recover excess costs from the Kentucky Transportation Cabinet; an administrative appeals procedure was prescribed for such disputes, an, furthermore, the contractor had already elected an administrative remedy, which it had not abandoned at the time of filing its contract action. Geupel Constr. Co. v. Commonwealth Transp. Cabinet, 136 S.W.3d 43, 2003 Ky. App. LEXIS 39 (Ky. Ct. App. 2003).

7.Ferries.

The state highway commission (now Department of Highways) could have established and operated permanently a free ferry, to carry a state highway project over an intervening stream. State Highway Com. v. Smith, 250 Ky. 269 , 62 S.W.2d 1044, 1933 Ky. LEXIS 685 ( Ky. 1933 ).

The commission (now department) could have established and operated a free ferry within one mile of an existing ferry operating under franchise. State Highway Com. v. Smith, 250 Ky. 269 , 62 S.W.2d 1044, 1933 Ky. LEXIS 685 ( Ky. 1933 ).

8.Diversion of Water.

The Department of Highways had no right to make any change in the construction of a road which would have diverted water from its natural course and would have cast it upon the land or an adjacent property owner, and could have been enjoined from so doing or ordered to abate the condition if it had been already done so. Department of Highways v. McKinney, 291 Ky. 1 , 162 S.W.2d 179, 1942 Ky. LEXIS 156 ( Ky. 1 942 ).

9.Liability to Abutting Owner.

Where closing of old road was conditioned on opening of new road, the old road was not closed if the new road was not opened and persons placing obstructions on old road were liable in damages to persons denied ingress and egress to their property. Hays v. Madison County, 274 Ky. 116 , 118 S.W.2d 197, 1938 Ky. LEXIS 239 ( Ky. 1938 ).

Where county conveyed county road to state as right of way for state primary road, and state Department of Highways constructed a new road over such right of way, the county taking no part in the construction of the road, any liability for damages to an abutting property owner resulting from lowering the grade of the road fell on the state, and not on the county. Philpott v. Monroe County, 293 Ky. 236 , 168 S.W.2d 749, 1943 Ky. LEXIS 594 ( Ky. 1943 ).

Opinions of Attorney General.

Neither a city nor a county has the power to change the name or number of state roads. OAG 70-717 .

Research References and Practice Aids

Cross-References.

Bridges and tunnels, when to become part of primary road system, KRS 180.280 , 181.050 .

Regulation of ferries, KRS 280.130 .

State planning board to submit plans for highway improvement, KRS 147.070 , 147.100 .

177.021. Department may acquire rights-of-way for primary system — Power of cities.

The Department of Highways is authorized to acquire and bear the cost of new or additional rights-of-way needed for establishment, improvement, construction, reconstruction, maintenance or repair of a public road or a city street which has been designated by the Department of Highways as a part of the state primary road system. All cities are authorized to deed any right-of-way owned by such cities to the Commonwealth of Kentucky if the right-of-way is to become part of the state primary road system.

History. Enact. Acts 1964, ch. 23, § 2.

NOTES TO DECISIONS

1.Liability to Abutting Owners.

Where property is acquired by the state highway department under this section, the state is liable to abutting property owners for any property taken, but is not liable when grade is changed but, no property is taken. Ganote v. Commonwealth, Dep't of Highways, 409 S.W.2d 165, 1966 Ky. LEXIS 48 ( Ky. 1966 ).

2.Validity of Designation.

Where the deed between the city and the commonwealth merely evidenced an intent that the right of way become a part of the state primary road system in compliance with this section, but did not contain any operative statement that the right of way on the city street was designated as a part of the state primary road system, the ordinance passed by the city council made no reference to designation of the street, and the contract between the Department of Highways and the city did not refer to any designation by the Commissioner of Highways, there was no evidence of a valid exercise of the Commissioner’s discretionary power of designation of the city street as part of the state primary road system; therefore, the commonwealth did not legally assume any responsibility with regard to the maintenance and repair of the city street. Zanella v. Grand Rivers, 687 F. Supp. 1105, 1988 U.S. Dist. LEXIS 5299 (W.D. Ky. 1988 ).

177.025. Removal of snow from certain state roads by county plows on order of county judge/executive.

The provisions of KRS 67.078 and 67.710 notwithstanding, a county judge/executive may order county plows to remove snow from any state road the plow must travel on to reach a county road to be cleared. The county judge/executive shall not be required to declare an emergency for him to order county plows to remove snow from state roads.

History. Enact. Acts 1994, ch. 374, § 1, effective July 15, 1994.

177.030. Cost of construction to be borne by state — State may accept donations.

The cost of construction of the primary roads shall be borne entirely by the state, or by the state and federal government, where the roads are built in cooperation, and they shall be maintained entirely by the state, but any county, municipality or person may make donations to the state in aid of the construction or maintenance of any road. The state may accept any donation on the terms and conditions prescribed by the department.

History. 4356t-5.

NOTES TO DECISIONS

1.Construction.

The enactment of this section did not repeal statutes then existing authorizing cities to construct and maintain their streets according to any plans then provided by law. Shaver v. Rice, 209 Ky. 467 , 273 S.W. 48, 1925 Ky. LEXIS 523 ( Ky. 1925 ). See Wickliffe's Ex'rs v. Smith, 225 Ky. 796 , 10 S.W.2d 291, 1928 Ky. LEXIS 880 ( Ky. 1928 ).

2.County Bond Issue for Donation.

A county may donate to the state, for construction of public highway through the county as part of proposed state highway, one-half of proceeds of road and bridge bond issue originally intended for use under repealed state aid plan. Lawrence County v. Lawrence Fiscal Court, 191 Ky. 45 , 229 S.W. 139, 1921 Ky. LEXIS 284 ( Ky. 1921 ).

Proceeds of bond issue, voted on previous fiscal court order allotting certain proportion to named roads, cannot be spent on any road in amount in excess of that fixed in pre-election order, even to get benefit of state aid. Reynolds v. Bracken County, 192 Ky. 180 , 232 S.W. 634, 1921 Ky. LEXIS 42 ( Ky. 1921 ).

A part of proceeds of bond issue may be donated by county to state to construct an intercounty seat road, to be afterwards maintained by the state. Wilson v. Fiscal Court of Caldwell County, 194 Ky. 737 , 240 S.W. 743, 1922 Ky. LEXIS 239 ( Ky. 1922 ).

A county may issue bonds, when assented to by the voters, to contribute to construction of road project which the state and federal governments have undertaken. Smith v. Livingston County, 195 Ky. 382 , 242 S.W. 612, 1922 Ky. LEXIS 337 ( Ky. 1922 ).

Proceeds of county bond issue for proposed road which as finally located was part of primary state highway system, may be applied to route designated by state highway engineer and Department of Highways, rather than to different route chosen by order of fiscal court. Black v. Road Comm'rs of Crittenden County, 201 Ky. 650 , 258 S.W. 94, 1924 Ky. LEXIS 613 ( Ky. 1924 ).

After county bond money has been paid to Department of Highways, upon agreement that state would supplement the fund and expend all on state primary system of roads in county, the county must be consulted as to expenditures and construction. State Highway Com. v. Mitchell, 241 Ky. 553 , 44 S.W.2d 533, 1931 Ky. LEXIS 114 ( Ky. 1931 ).

Where county held proceeds of bonds issued for road construction by state for 14 years and state declined to accept the money and construct the road, it could reasonably be assumed the project had been abandoned and county could use the proceeds to buy the bonds and cancel them. Fiscal Court of Estill County v. Debt Com. of Kentucky, 286 Ky. 114 , 149 S.W.2d 735, 1941 Ky. LEXIS 209 ( Ky. 1941 ).

Where county judge, pursuant to authority from fiscal court, agreed with Department of Highways that fund representing part of proceeds of bond issue to build roads should be paid to department if it constructed two bridges, and where department had expended large sums in doing the work, had completed one bridge and nearly completed the other, and it was shown that department would not have undertaken work except for agreement of county judge, department was entitled to order directing that the fund be paid to it, counties being authorized to make donation to state, notwithstanding that former policy, existing when bond issue was voted, requiring counties to bear one-half of cost of road construction, no longer prevails. Estill County v. Price, 287 Ky. 484 , 153 S.W.2d 924, 1941 Ky. LEXIS 559 ( Ky. 1941 ).

Where county offered to lend proceeds of road bond issue to state for construction of primary road through county, but state declined to accept loan on ground that it would create an unconstitutional state debt, whereupon the fiscal court entered an order “appropriating” the money to the Department of Highways, the transaction constituted a donation to the state which the county could not recover. Clay County v. Kentucky Dep't of Highways, 294 Ky. 638 , 172 S.W.2d 436, 1943 Ky. LEXIS 500 ( Ky. 1943 ).

3.Donation of Traffic Light.

Under Const., § 179 and this section, donation of a traffic light by a county constitutes a donation “in aid of the construction or maintenance” of roads. Grauman v. Department of Highways, 286 Ky. 850 , 151 S.W.2d 1061, 1941 Ky. LEXIS 337 ( Ky. 1941 ).

4.Reimbursement by State.

Law providing for the reimbursement of property owners of the city of Grayson for street improvement assessments paid by them in the construction of a street by the city to connect with a primary state highway, was special legislation and violated Const., § 59(29). Commonwealth v. Grayson, 278 Ky. 450 , 128 S.W.2d 770, 1939 Ky. LEXIS 436 ( Ky. 1939 ).

Cited:

Jefferson County v. Department of Highways, 299 Ky. 358 , 185 S.W.2d 546, 1945 Ky. LEXIS 429 ( Ky. 1945 ).

Research References and Practice Aids

Cross-References.

Credit of state may be pledged to any county for road purposes, Const., § 157a.

Public works costing $2,000 or more to be supervised by registered engineer or architect, KRS 322.360 .

Use of prisoners for road work, Const., § 253; KRS 197.130 .

177.035. Cost of relocation of publicly and privately owned utility equipment and appliances to be borne by department — Conditions.

  1. If the department determines that it is necessary for any fireplugs, pipes, mains, conduits, cables, wires, towers, poles, and other equipment and appliances, belonging to any municipality or a municipally owned utility, or any water district established pursuant to KRS Chapter 74, any water association established pursuant to KRS Chapter 273, any local school district, or any sanitation district established pursuant to KRS Chapter 220, to be removed or relocated on, along, over, or under a highway, in order to construct, reconstruct, relocate, or improve any highway, the municipality, municipally owned utility, water district, local school district, or the sanitation district shall relocate or remove them in accordance with the order of the department. The costs and expenses of relocation or removal required by this section, including the costs of installing facilities in a new location, and the cost of any lands, or any rights or interest in lands, and any other rights, acquired to accomplish the relocation or removal, shall be ascertained and paid by the department as a part of the cost of improving or constructing highways.
  2. The term “utility” as used in subsections (3) to (5) of this section shall mean any utility not referenced in subsection (1) of this section, and the term shall mean any utility as defined in KRS 278.010 .
  3. If a utility has facilities located within the public right-of-way pursuant to KRS 416.140 , the department may reimburse the utility the cost to relocate the utility’s facilities to a location either within or without the public right-of-way if the relocation is required due to a highway construction project, subject to the following conditions:
    1. The utility shall be required to submit to the department for the department’s approval a plan for relocating the utility’s facilities. The plan shall include:
      1. A proposal for the relocation, including plans and a cost estimate developed in accordance with department guidelines; and
      2. A reasonable schedule of calendar days for completing the relocation that has been agreed to by the department. If, due to circumstances beyond the utility’s control, the utility or the department cannot meet the specified completion date included in the plan, the department may grant an extension to the utility for a time period agreed upon by both parties; and
    2. The utility shall be required to have either:
      1. Entered into a written agreement with the department to include the relocation of the facilities as part of the department’s construction contract. The utility may, with the approval of the department, perform a portion of the relocation work under this subparagraph with contractors or employees of the utility; or
      2. Entered into a written agreement with the department for the utility to remove all of its facilities that conflict with the highway construction project, as determined by the department, prior to letting the construction contract. The utility may perform a portion or all of the relocation work under this subparagraph with contractors or employees of the utility.
  4. A utility that enters into an agreement with the department under subsection (3)(b) of this section shall be required to complete the relocation work in compliance with the schedule included in the plan required to be submitted under subsection (3)(a) of this section. The provisions of this subsection shall not apply if the department fails to undertake the highway construction project within the time period specified in the agreement, and in this instance, the department shall be required to reimburse the utility any allowable cost the utility has incurred to relocate its facilities in compliance with the plan approved by the department.
  5. The department shall reimburse a utility as authorized in subsection (3) of this section if the department is satisfied that the utility’s facilities have been relocated in conformance with the plan approved by the department. The utility shall have twelve (12) months from the completion date of the relocation, according to the schedule of calendar days, to submit a reimbursement request for relocation costs to the department.
  6. The provisions of this section shall not amend or affect in any way the provisions of KRS 179.265 .

History. Enact. Acts 1972, ch. 361, § 1; 1974, ch. 74, Art. IV, § 20(1); 1988, ch. 207, § 1, effective July 15, 1988; 1990, ch. 281, § 1, effective July 13, 1990; repealed, reenact., and amend. Acts 1994, ch. 112, § 1, effective March 29, 1994; 1994, ch. 279, § 2, effective July 15, 1994; 2004, ch. 154, § 1, effective July 13, 2004.

Compiler’s Notes.

The history of this section prior to the 1994 repeal and reenactment was (Enact. Acts 1972, ch. 361, § 1; 1974, ch. 74, Art. IV, § 20(1); 1988, ch. 207, § 1, effective July 15, 1988; 1990, ch. 281, § 1, effective July 13, 1990).

Acts 1994, ch. 279, § 7 provides, “In enacting Sections 1 to 4 of this Act, the General Assembly ratifies and confirms any prior actions on statutes contained in those sections by the Reviser of Statutes acting pursuant to the authority established by KRS 7.140 and 7.136 . Nothing in Sections 1 to 6 of this Act shall be construed under KRS 7.123(4) as appearing to affect any substantive law in the statute law of Kentucky, and the repeal and reenactments contained in Sections 1 to 5 of this Act shall not operate under KRS 446.260 to defeat any amendments in other acts of this session to statutes contained in those sections.”

Legislative Research Commission Note.

(7/15/94). This section was amended by 1994 Ky. Acts ch. 112 and repealed and reenacted by 1994 Ky. Acts ch. 279. These Acts do not appear to be in conflict and have been codified together.

(9/10/90). Section 2 of the enrolled version of House Bill 301 of the 1990 Regular Session, 1990 Ky. Acts ch. 191, purported to amend KRS 177.035 , but the inclusion of that section of the bill was the result of an error in enrolling a Senate amendment which was not accepted by the House and from which the Senate subsequently receded. Pursuant to KRS 446.017 , Section 2 of the enrolled version of House Bill 301 is void and has been severed from that bill. The above statutory text is a recodification of KRS 177.035 , as amended by the 1990 Regular Session, without the amendment contained in Section 2 of House Bill 301. The original 1990 codification of KRS 177.035 and its accompanying note are superseded and without effect.

Opinions of Attorney General.

The plain import of the language of this section is that the relocation of utilities belonging to cities, water districts or sanitation districts shall be at the cost of the highway department, and this includes all utilities relocated after January 1, 1972. OAG 72-668 .

This section does not violate either section 177 or 230 of the Kentucky constitution. OAG 74-199 .

Research References and Practice Aids

Cross-References.

Relocation of utility facilities, cost to be paid by public, KRS 179.265 .

Water, gas and electric companies transmitting water, gas or electricity, construction and maintenance of lines and appliances, KRS 416.140 .

177.037. Community boundary signs — Commemorative boundary signs for city or unincorporated urban place.

  1. The Department of Highways may install and maintain signs recognizing the boundary of a city, town, or community whether incorporated or unincorporated. These signs shall be installed regardless of whether the community has a post office, if the Department of Highways had previously erected signs recognizing the city, town, or community. The signs shall be placed at the official community boundaries. If the community does not have official boundaries, the signs shall be installed at the community boundaries as determined by the built-up area.
  2. The department shall install and maintain signs at the boundaries of any city or an unincorporated urban place as defined in KRS 177.366 , regardless of whether the city or unincorporated urban place has a post office or zip code, if the city or unincorporated urban place:
    1. Submits a written request for not more than two (2) signs:
      1. To honor the birthplace of a person important to the city or unincorporated urban place; or
      2. To honor an event or accomplishment important to the city or unincorporated urban place; and
    2. Agrees to pay for the actual cost to make and install the signs.
  3. The department shall work with the city or unincorporated urban place to determine the appropriate place to install the signs required under subsection (2) of this section. If an agreement cannot be reached on the appropriate place to install the signs, the site selected by the city or unincorporated urban place shall take precedence and the department shall not prohibit and shall not delay the installation of the signs.
  4. Each city or unincorporated urban place requesting a sign under subsection (2) of this section shall be limited to two (2) signs. Requests for additional signs authorized under subsection (2) of this section in excess of two (2) by the same city or unincorporated urban place shall be consolidated into a single sign.
  5. All statutes to the contrary notwithstanding, the Transportation Cabinet shall amend its policies and administrative regulations in effect on July 15, 2002, to comply with the provisions of this section, and shall not subsequently adopt new policies or promulgate new administrative regulations to the contrary.

History. Enact. Acts 1990, ch. 191, § 1, effective July 13, 1990; 2002, ch. 298, § 2, effective July 15, 2002; 2014, ch. 92, § 248, effective January 1, 2015.

177.040. Roads through cities of fifth or sixth class; cost of construction. [Repealed.]

Compiler’s Notes.

This section (4356t-8) was repealed by Acts 1942, ch. 30, § 9.

177.041. City streets constituting connecting links for state and Federal highways, maintenance by state. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1942, ch. 30, § 1) was repealed by Acts 1964, ch. 23, § 3.

177.042. Designation of city streets by commissioner of highways — Record — Statement to city.

The commissioner of highways on and after July 1, 1942, may designate such city streets or portions thereof, including viaducts and bridges, as in his discretion are connecting links of state or federal maintained highways or that he may in his discretion determine to be necessary feeder streets and necessary to produce an adequate system of highways. The Department of Highways shall prepare and cause a record of such city streets so designated and upon each such designation it shall furnish to each city a statement of the streets so designated in that city.

History. Enact. Acts 1942, ch. 30, § 2.

NOTES TO DECISIONS

1.Validity of Designation.

Where the deed between the city and the Commonwealth merely evidenced an intent that the right of way become a part of the state primary road system in compliance with KRS 177.021 , but did not contain any operative statement that the right-of-way on the city street was designated as a part of the state primary road system, the ordinance passed by the city council made no reference to designation of the street, and the contract between the Department of Highways and the city did not refer to any designation by the Commissioner of Highways, there was no evidence of a valid exercise of the Commissioner’s discretionary power of designation of the city street as part of the state primary road system; therefore, the commonwealth did not legally assume any responsibility with regard to the maintenance and repair of the city street. Zanella v. Grand Rivers, 687 F. Supp. 1105, 1988 U.S. Dist. LEXIS 5299 (W.D. Ky. 1988 ).

177.043. Powers of department as to designated city streets — Agreements.

On and after July 1, 1942, the Department of Highways may maintain and repair, construct and reconstruct under its control and supervision such city streets so designated by the commissioner of highways, and may make appropriations and expenditures out of its fund for such purposes. The department may enter into any and all contracts inclusive of agreements with cities and with any federal agencies authorized so to do for such purpose.

History. Enact. Acts 1942, ch. 30, § 3; 1950, ch. 90, § 1.

NOTES TO DECISIONS

1.Validity of Designation.

Where the deed between the city and the Commonwealth merely evidenced an intent that the right-of-way become a part of the state primary road system in compliance with KRS 177.021 , but did not contain any operative statement that the right-of-way on the city street was designated as a part of the state primary road system, the ordinance passed by the city council made no reference to designation of the street, and the contract between the Department of Highways and the city did not refer to any designation by the Commissioner of Highways, there was no evidence of a valid exercise of the Commissioner’s discretionary power of designation of the city street as part of the state primary road system; therefore, the Commonwealth did not legally assume any responsibility with regard to the maintenance and repair of the city street. Zanella v. Grand Rivers, 687 F. Supp. 1105, 1988 U.S. Dist. LEXIS 5299 (W.D. Ky. 1988 ).

Cited:

Perry v. Cumberland, 312 Ky. 375 , 227 S.W.2d 411, 1950 Ky. LEXIS 643 ( Ky. 1950 ); Hazard v. Main Street Realty Co., 262 S.W.2d 87, 1953 Ky. LEXIS 1070 , 41 A.L.R.2d 609 ( Ky. 1953 ).

177.044. Type of construction; plans and specifications; grade; designation of department as agent of city. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1942, ch. 30, § 4) was repealed by Acts 1962, ch. 155, § 1.

177.045. Conveyance of rights of way to state; acquisition of additional rights of way. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1942, ch. 30, § 5) was repealed by Acts 1964, ch. 23, § 3.

177.046. Traffic regulations on streets; signs, markers and signals; penalties; limits on duties of highway department. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1942, ch. 30, § 6; 1950, ch. 90, § 2) was repealed by Acts 1964, ch. 35, § 2.

177.047. Permission of department required for obstructions or excavations in streets.

Any city or person who enters upon such designated city connecting link streets or rights of way thereof, for the purpose of laying conduits, pipes, poles or wires therein, thereon or thereunder or makes any obstruction thereon or any excavation thereunder, which necessitates any change in the condition or structure thereof, shall do so as provided by regulations prescribed by the Department of Highways. The Department of Highways may prescribe rules and regulations for the protection of city connecting link streets, under which such work shall be done, and require indemnity for any damage occasioned by work done under the regulations.

History. Enact. Acts 1942, ch. 30, § 7.

NOTES TO DECISIONS

1.Termination of Permission.

Even though telephone company alleged that it had procured permission of Department of Highways to construct and maintain telephone poles and lines on two streets in the city which had been designated as part of primary road system by department, action by the city in adopting two ordinances, one prohibiting erection and maintenance of poles, lines and wires on the two streets in question, and the other offering for sale a telephone franchise requiring removal of existing telephone poles and lines and prohibiting erection and maintenance of such installations on the two streets, was not arbitrary, capricious, oppressive or unreasonable. Mt. Vernon Tel. Co. v. Mt. Vernon, 313 Ky. 93 , 230 S.W.2d 451, 1950 Ky. LEXIS 818 ( Ky. 1950 ).

Research References and Practice Aids

Cross-References.

Power of department to regulate erection of public utility fixtures in or along highways, KRS 416.140 .

177.048. Routing of highways through fourth, fifth or sixth-class city to reach first or second-class city. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1952, ch. 180, § 1) was repealed by Acts 1964, ch. 23, § 3.

177.050. Construction of roads with county funds — Repayment to county.

If any county desires to construct any part of a public road before the state is prepared to construct it, such county shall ask the department for permission to do so. When such request is made the department shall immediately investigate the request, and if they find that the county has funds available to construct such road and will pay for the construction thereof, the department may take up the construction of such road, as soon as the county has taken such steps as the department requires to make available subject to its order sufficient funds to pay for the construction of the road. When the county has satisfied these requirements, the department may proceed to construct the road in the same way and under the same regulations that it constructs other roads. The department shall keep careful account of the money advanced by the county to the state, and when the project of which the road is a part has been completed, the state shall refund to the county the money advanced upon proper certification of the department, if the road is to be accepted by the commissioner of highways as a part of the state primary road system.

History. 4356t-11: amend. Acts 1964, ch. 88, § 1.

NOTES TO DECISIONS

1.Advancement of Funds.

Advancement by a county to the state for road purposes constitutes a “debt” within the meaning of Const., §§ 49, 50. Crick v. Rash, 190 Ky. 820 , 229 S.W. 63, 1921 Ky. LEXIS 516 ( Ky. 1921 ).

2.Acceptance of Advancement.

The state may accept funds for roads advanced by county, if at the time the state issues certificates for repayment, there is a sufficient fund in state treasury not otherwise appropriated, anticipated or contracted against out of which the certificate may be paid, or if there will be available during the year in which the contract is made, from sources already provided, funds sufficient to meet not only that debt but the aggregate amount of all others outstanding and similarly or otherwise created. Crick v. Rash, 190 Ky. 820 , 229 S.W. 63, 1921 Ky. LEXIS 516 ( Ky. 1921 ).

177.055. Construction and maintenance of urban roads and streets.

  1. An incorporated area or unincorporated urban place may elect, with the concurrence of the Department of Highways, to construct, reconstruct, or maintain urban roads and streets which are included in the Department of Highways’ state primary road system and are maintained by the Department of Highways.
  2. The Department of Highways cannot initiate the expenditures of funds allocated pursuant to KRS 177.365 on any roads or streets classified by the Department of Highways as being a part of the state primary road system as defined in KRS 177.020 .

History. Enact. Acts 1974, ch. 67, § 1.

177.057. Required consultation on highway access prior to purchase of property for school facility.

A local school district shall not purchase property for the construction of any school facility until the district consults with the Kentucky Transportation Cabinet, Department of Highways, Frankfort Office, to determine if the property to be purchased currently has adequate highway access or if highway access is planned for a future date by the Transportation Cabinet. If the property to be purchased does not currently have adequate highway access or if the Transportation Cabinet does not plan future highway access to the property, the cabinet shall so notify the local school district in writing.

History. Enact. Acts 1994, ch. 112, § 2, effective March 29, 1994.

177.060. Payment for right-of-way.

  1. Except as otherwise provided in this section and in KRS 177.070 , all cost of acquiring any necessary land or right-of-way for primary road purposes and all damages incurred shall be paid by the county.
  2. Temporary rights-of-way and private surfaced roads, other than those owned by the county, which are acquired for primary road purposes shall be paid for by the state.
  3. When a highway has been located by the department and a right-of-way procured by the county and accepted by the department, any additional right-of-way required by the department as a result of a change in the highway may be acquired by the department and shall be paid for by the state unless it is a road owned by the county.
  4. The cost of acquiring right-of-way for initial construction of industrial access roads, state park access roads and other roads the construction of which would best serve the interests of the Commonwealth in promoting economic and industrial growth shall be paid by the state.

History. 4356t-7: amend. Acts 1962, ch. 163.

NOTES TO DECISIONS

1.Construction.

This section requires the county to pay for right-of-way taken for highway purposes whether it be acquired by contract or by condemnation proceedings, and even though it be acquired at the instance of the Department of Highways. Kentucky Bell Corp. v. Commonwealth, 295 Ky. 21 , 172 S.W.2d 661, 1943 Ky. LEXIS 184 ( Ky. 1943 ).

2.Application.

In applying this section it is necessary to observe all the paragraphs thereof. Department of Highways v. Current, 299 Ky. 127 , 184 S.W.2d 879, 1944 Ky. LEXIS 1040 ( Ky. 1944 ).

3.Liability of County.
4.— Taking of Property.

When the state or county takes land of individual for right-of-way and uses it for that purpose, the county is estopped to deny its liability for reasonable value of land taken, with incidental damages to balance of tract. Muhlenberg v. Ray, 215 Ky. 295 , 284 S.W. 1074, 1926 Ky. LEXIS 706 ( Ky. 1926 ).

County is liable to property owner for land taken by Department of Highways for right-of-way and ditches, where it is taken without owner’s knowledge or consent, and county accepted and used road. Metcalf v. Lyttle, 219 Ky. 488 , 293 S.W. 979, 1927 Ky. LEXIS 370 ( Ky. 1927 ).

This section imposes the duty of the county to obtain the right-of-way and to pay any damages incurred or awarded. Hunt-Forbes Const. Co. v. Robinson, 227 Ky. 138 , 12 S.W.2d 303, 1928 Ky. LEXIS 484 ( Ky. 1928 ).

A county may be sued for value of land taken for roads and damages incident to trespass, whether taking was directly by county or by state in construction of roads. Kentucky State Park Com. v. Wilder, 260 Ky. 190 , 84 S.W.2d 38, 1935 Ky. LEXIS 437 ( Ky. 1935 ).

Const., §§ 13 and 242 prohibit the actual taking of private property for public use without payment, and Const., § 242 allows compensation for injury or destruction of property unattended by an actual taking. Kentucky State Park Com. v. Wilder, 260 Ky. 190 , 84 S.W.2d 38, 1935 Ky. LEXIS 437 ( Ky. 1935 ).

County is liable for right-of-way taken for construction of highway. Crittenden County v. Towery, 264 Ky. 606 , 95 S.W.2d 233, 1936 Ky. LEXIS 367 ( Ky. 1936 ).

In action to recover damages resulting from taking of land for highway purposes, verdict must be by all 12 of jury. Breathitt County v. Hudson, 265 Ky. 21 , 95 S.W.2d 1132, 1936 Ky. LEXIS 450 ( Ky. 1936 ).

If right-of-way is not acquired by agreement, or through exercise of eminent domain, the county is liable for compensation to owner after taking of property. Breathitt County v. Hudson, 265 Ky. 21 , 95 S.W.2d 1132, 1936 Ky. LEXIS 450 ( Ky. 1936 ).

Const., § 242, and this section impose liability upon a county for land taken for road purposes; but that liability is limited to damages actually sustained by the owner. Leslie County v. Davidson, 270 Ky. 705 , 110 S.W.2d 652, 1937 Ky. LEXIS 145 ( Ky. 1937 ).

Since county has duty to furnish right-of-way, action for wrongful taking of land in connection with construction of state highway would not lie against state or its highway department, but rather against county. Department of Highways v. Parker, 306 Ky. 14 , 206 S.W.2d 73, 1947 Ky. LEXIS 952 ( Ky. 1947 ).

The Constitution and the statutes require that a county shall pay for road rights-of-way, whether acquired by contract or by condemnation proceedings. Maggard v. Marcum, 252 S.W.2d 41, 1952 Ky. LEXIS 977 ( Ky. 1952 ).

County is required to pay all costs of acquiring the necessary right-of-way for primary road systems and where a judgment therefor was rendered against the state Department of Highways the court should have ordered the county to indemnify such department. Commonwealth, Dep't of Highways v. Alexander, 388 S.W.2d 599, 1965 Ky. LEXIS 443 ( Ky. 1965 ).

5.— Damage to Remaining Property.

If, in construction of road, adjacent land is damaged, it will be construed as a taking or applying for a public use within meaning of Const., § 13 and the county will be liable therefor, unless the right to so injure or take is to be considered within the conveyance. Fallis v. Mercer County, 236 Ky. 315 , 33 S.W.2d 12, 1930 Ky. LEXIS 743 ( Ky. 1930 ).

With respect to the county, where there are resulting injuries which are of the nature of a taking of private property by the proper construction of a state highway, the county is liable. Ashland v. Queen, 254 Ky. 329 , 71 S.W.2d 650, 1934 Ky. LEXIS 79 ( Ky. 1934 ).

Const., § 242 allows compensation for injury or destruction of property unattended by an actual taking. Kentucky State Park Com. v. Wilder, 260 Ky. 190 , 84 S.W.2d 38, 1935 Ky. LEXIS 437 ( Ky. 1935 ).

County is liable for permanent, substantial trespass, or invasion, or direct injury, or consequential damage, to remaining land aside from that actually taken, where such act as in accordance with prudent plans of Department of Highways. Breathitt County v. Hudson, 265 Ky. 21 , 95 S.W.2d 1132, 1936 Ky. LEXIS 450 ( Ky. 1936 ).

Where owner, by deed reciting consideration of cash and contemplated benefits, conveys land to state for highway purposes, he cannot recover from county damages to remaining land thereafter caused by negligence of department of highways. Perry County v. Riley, 268 Ky. 325 , 104 S.W.2d 1090, 1937 Ky. LEXIS 461 ( Ky. 1937 ).

6.— Removal of Lateral Support.

The county is liable to property owner for damages sustained by removal of lateral support in cutting down grade, causing lot to slip away. Perry County v. Townes, 228 Ky. 608 , 15 S.W.2d 521, 1929 Ky. LEXIS 638 ( Ky. 1929 ).

County rather than the state was liable for the removal of lateral support of land of property owners as result of state highway construction where county assumed any liability that might arise out of claim based on failure of properly acquired right-of-way. Commonwealth, Dep't of Highways v. Thacker, 384 S.W.2d 79, 1964 Ky. LEXIS 75 ( Ky. 1964 ).

7.— Proper Construction.

Under this and related sections, if the department of highways damages property in the prudent construction of roads, the county should be made to pay therefor because of its duty to furnish the right-of-way. Floyd County v. West Virginia-Kentucky Hardware & Supply Co., 59 F.2d 895, 1932 U.S. App. LEXIS 3481 (6th Cir. Ky. 1932 ). See Perry County v. Townes, 228 Ky. 608 , 15 S.W.2d 521, 1929 Ky. LEXIS 638 ( Ky. 1929 ); Fallis v. Mercer County, 236 Ky. 315 , 33 S.W.2d 12, 1930 Ky. LEXIS 743 ( Ky. 1930 ); Barass v. Ohio County, 240 Ky. 149 , 41 S.W.2d 928, 1931 Ky. LEXIS 356 ( Ky. 1931 ).

Where road was constructed in a proper manner by the contractor and in accordance with the terms and conditions of this section, an obligation was imposed upon the county, not only to obtain the necessary right-of-way, but also to pay for any damages incurred by the property owners. Commonwealth, Dep't of Highways v. Thacker, 384 S.W.2d 79, 1964 Ky. LEXIS 75 ( Ky. 1964 ).

The county is liable both for “taking” damages, and for “resulting” damages to the extent that the latter are attributable to proper construction of the highway. Commonwealth, Dep't of Highways v. Alexander, 388 S.W.2d 599, 1965 Ky. LEXIS 443 ( Ky. 1965 ).

8.— Negligent or Improper Construction.

While the county is responsible, under this section, for the taking of and injury to property in the necessary and proper construction of a road by the Department of Highways, it is not liable for improper or negligent use or the creation of a nuisance by the commission. Barass v. Ohio County, 240 Ky. 149 , 41 S.W.2d 928, 1931 Ky. LEXIS 356 ( Ky. 1931 ).

County is not liable for damages caused by negligence or carelessness of contractor. Breathitt County v. Hudson, 265 Ky. 21 , 95 S.W.2d 1132, 1936 Ky. LEXIS 450 ( Ky. 1936 ).

Liability of county for condemnation damages in construction of state highway depends solely upon this section, and county is liable only for those damages incident to the taking of the property, unless county acts independently. County is not liable for negligent acts of the Department of Highways in construction work that cause further damage to adjacent property. Bader v. Jefferson County, 274 Ky. 486 , 119 S.W.2d 870, 1938 Ky. LEXIS 311 ( Ky. 1938 ).

A county is liable to the owner of land taken for highway purposes, or damaged by the proper construction of a highway, by the Department of Highways, but is not liable for negligent or improper construction by the department. Hopkins County v. Rodgers, 275 Ky. 778 , 122 S.W.2d 743, 1938 Ky. LEXIS 493 ( Ky. 1938 ).

This section did not impose liability upon county or city for injury to property abutting on road caused by negligence of W.P.A. workers, where county and city merely furnished right-of-way, entire work of construction was done by W.P.A., and road was not part of primary system of state roads. Perry County v. Tyree, 282 Ky. 708 , 139 S.W.2d 721, 1940 Ky. LEXIS 226 ( Ky. 1940 ).

This section does not require the county to compensate for damages where the Department of Highways lowered the grade of a dedicated street, thereby impairing egress and ingress. Cantrell v. Pike County, 255 S.W.2d 988, 1953 Ky. LEXIS 690 ( Ky. 1953 ).

9.— Joint.

County and city are jointly liable for damage resulting from construction of viaduct within city limits, as part of state highway project. Ashland v. Queen, 254 Ky. 329 , 71 S.W.2d 650, 1934 Ky. LEXIS 79 ( Ky. 1934 ).

10.Payment of Right-of-Way.

In suit to enjoin county bond issue for funding of warrants and notes, issued for acquisition of rights-of-way for state highway projects procured on command of state, the landowners, warrant and note holders, or a representative of such classes, should be made parties to suit, as well as the department of highways. Fiscal Court of Union County v. Young, 242 Ky. 335 , 46 S.W.2d 473, 1932 Ky. LEXIS 267 ( Ky. 1932 ).

If outstanding county warrants are illegal and void, they cannot be considered in determining validity of proposed expenditures of county for rights-of-way. Williams v. Estill County, 253 Ky. 417 , 69 S.W.2d 683, 1934 Ky. LEXIS 655 ( Ky. 1934 ).

Proceeds of bond issue voted by county in 1919 for “building roads and bridges” could be used to buy rights-of-way for state highway, there being no law in 1919 or at the present time prohibiting county from buying rights-of-way with money raised through issuance of bonds. Rice v. Marcum, 294 Ky. 486 , 172 S.W.2d 75, 1943 Ky. LEXIS 483 ( Ky. 1943 ).

11.Liability of State.

Where county conveyed county road to state as right-of-way for state primary road, and state Department of Highways constructed a new road over such right-of-way, the county taking no part in the construction of the road, any liability for damages to an abutting property owner resulting from lowering the grade of the road would fall on the state, and not on the county. Philpott v. Monroe County, 293 Ky. 236 , 168 S.W.2d 749, 1943 Ky. LEXIS 594 ( Ky. 1943 ).

Where state Department of Highways, in relocating a state highway, acquired a new right-of-way and closed the old right-of-way, the county was not liable in damages to property owner whose land abutted on old right-of-way and who claimed damage by reason of loss of access to highway however, the state was liable in such case. Department of Highways v. Current, 299 Ky. 127 , 184 S.W.2d 879, 1944 Ky. LEXIS 1040 ( Ky. 1944 ).

Where private property is taken for public use or where there is a trespass thereon which amounts to such taking the state’s immunity from suit is waived through Const., §§ 13 and 242. Lehman v. Williams, 301 Ky. 729 , 193 S.W.2d 161, 1946 Ky. LEXIS 563 ( Ky. 1946 ).

Neither the state nor its Department of Highways is liable for negligence in construction of state highway. Department of Highways v. Parker, 306 Ky. 14 , 206 S.W.2d 73, 1947 Ky. LEXIS 952 ( Ky. 1947 ).

The damage contemplated in this section is the damage or compensation assessed in the acquiring of a right-of-way and it does not mean the type of damage negligently inflicted by the Department of Highways to that portion of the landowner’s tract which is not acquired for highway purposes. Department of Highways v. Corey, 247 S.W.2d 389, 1952 Ky. LEXIS 701 ( Ky. 1952 ).

Reverse condemnation procedure for taking, destroying or injuring of property by the sovereign without any color of right or title so to do does not apply where Commonwealth has done nothing beyond that which was authorized by a right-of-way deed and the doctrine of sovereign immunity precludes action against the Department of Highways for breach of contract or in tort in the absence of statutory authority for such action. Commonwealth, Dep't of Highways v. Davidson, 383 S.W.2d 346, 1964 Ky. LEXIS 32 ( Ky. 1964 ).

12.— Remedies.

If the department has created and is maintaining a nuisance to the property owner’s damage, he may have a remedy by injunction. Barass v. Ohio County, 240 Ky. 149 , 41 S.W.2d 928, 1931 Ky. LEXIS 356 ( Ky. 1931 ).

Certain remedies may be enforced against Department of Highways, such as requiring it to abate a nuisance. Breathitt County v. Hudson, 265 Ky. 21 , 95 S.W.2d 1132, 1936 Ky. LEXIS 450 ( Ky. 1936 ).

The Department of Highways has no right to make any change in the construction of a road which will divert water from its natural course and cast it upon the land of an adjacent property owner, and may be enjoined from so doing or ordered to abate the condition if it has been already done. Department of Highways v. McKinney, 291 Ky. 1 , 162 S.W.2d 179, 1942 Ky. LEXIS 156 ( Ky. 1 942 ).

13.Contractor’s Liability.

Where contractor is constructing road under authority of state and not county, he cannot be held responsible if performance was without negligence and within terms of contract. Hunt-Forbes Const. Co. v. Robinson, 227 Ky. 138 , 12 S.W.2d 303, 1928 Ky. LEXIS 484 ( Ky. 1928 ).

Contractor is liable for damages resulting from own negligence or unauthorized trespass upon property off the right-of-way. Breathitt County v. Hudson, 265 Ky. 21 , 95 S.W.2d 1132, 1936 Ky. LEXIS 450 ( Ky. 1936 ).

14.Fiscal Court Members.

Members of fiscal court are not liable for damages. Metcalf v. Lyttle, 219 Ky. 488 , 293 S.W. 979, 1927 Ky. LEXIS 370 ( Ky. 1927 ).

15.Nature of Action.

Action for land taken for highway purposes, and resulting damage to remaining property, is in nature of a condemnation proceeding. Breathitt County v. Hudson, 265 Ky. 21 , 95 S.W.2d 1132, 1936 Ky. LEXIS 450 ( Ky. 1936 ). See Leslie County v. Davidson, 270 Ky. 705 , 110 S.W.2d 652, 1937 Ky. LEXIS 145 ( Ky. 1937 ).

16.Reformation of Deed.

Since county pays for right-of-way, it may be proper to reform deed conveying right-of-way in action against county, without joining Department of Highways, although deed runs to latter. Hacker v. Clay County, 291 Ky. 614 , 165 S.W.2d 172, 1942 Ky. LEXIS 288 ( Ky. 1942 ).

17.Measure of Damages.

Assessed value of land for ad valorem taxation furnished by owner as required by assessment statutes was competent for purpose of determining damages but prices paid to others in the neighborhood in obtaining right-of-way was incompetent notwithstanding similar conditions were shown to exist. Commonwealth by State Highway Com. v. Combs, 229 Ky. 627 , 17 S.W.2d 748, 1929 Ky. LEXIS 820 ( Ky. 1929 ).

Testimony as to amount realized by defendants from sale of lots from farm eight (8) years previously during boom times was not admissible to establish value of strip 60 feet wide and 910 feet long on condemnation by department of highways. Commonwealth by State Highway Com. v. Combs, 229 Ky. 627 , 17 S.W.2d 748, 1929 Ky. LEXIS 820 ( Ky. 1929 ).

A deed to right-of-way, reciting as part of consideration the resulting benefits to grantor’s adjacent property, forbids recovery for consequential injury to that property, such as hindering ingress and egress because of elevation of highway. Fallis v. Mercer County, 236 Ky. 315 , 33 S.W.2d 12, 1930 Ky. LEXIS 743 ( Ky. 1930 ).

Landowners were entitled to value of fruit trees as incident to land taken for highway purposes but, being merely incidental, the value could not be separated from the market value of the land but was limited to the difference between market value of entire tract immediately before and market value of remainder immediately after the taking and disregarding any enhancement in valuation of remainder of tract because of highway. Commonwealth v. Combs, 244 Ky. 204 , 50 S.W.2d 497, 1932 Ky. LEXIS 394 ( Ky. 1932 ).

Where deed to right-of-way recites as part of consideration the resulting benefits to grantor’s adjacent property he cannot recover for consequential injury to that property such as the loss of use of land. Snyder v. Shelby County, 261 Ky. 118 , 87 S.W.2d 90, 1935 Ky. LEXIS 594 ( Ky. 1935 ).

Loss of the use, rents, or profits of land merely because it is not fenced is not damage to lands as contemplated by Const., § 242, which does not include loss of use when land itself has not been damaged. Snyder v. Shelby County, 261 Ky. 118 , 87 S.W.2d 90, 1935 Ky. LEXIS 594 ( Ky. 1935 ).

This section does not make county liable for fencing right-of-way, where that was not made a part of consideration or otherwise agreed to. Snyder v. Shelby County, 261 Ky. 118 , 87 S.W.2d 90, 1935 Ky. LEXIS 594 ( Ky. 1935 ).

Deed to right-of-way, reciting as part of consideration the resulting benefits to grantor’s adjacent property, forbids recovery for consequential injury to that property, such as damage arising from prudent, proper and good faith exercise of right to put land conveyed to intended use. Breathitt County v. Hudson, 265 Ky. 21 , 95 S.W.2d 1132, 1936 Ky. LEXIS 450 ( Ky. 1936 ).

The value fixed by owner for purposes of taxation is competent evidence of the value of land taken for highway but is not conclusive and the court is authorized to consider it in connection with other evidence which will indicate a much greater value. Crittenden County v. Towery, 264 Ky. 606 , 95 S.W.2d 233, 1936 Ky. LEXIS 367 ( Ky. 1936 ).

Consequential damages may be offset by consequential benefits but cost of additional fencing included as part of direct damages cannot be abated by benefits arising from the building of the road. Crittenden County v. Towery, 264 Ky. 606 , 95 S.W.2d 233, 1936 Ky. LEXIS 367 ( Ky. 1936 ).

Value fixed by landowner for tax purposes is competent but not conclusive and it should be considered in connection with other evidence indicating much greater value. Crittenden County v. Towery, 264 Ky. 606 , 95 S.W.2d 233, 1936 Ky. LEXIS 367 ( Ky. 1936 ).

Where the land is condemned for road purposes, the measure of damages, in the absence of additional fencing or other improvements made necessary by the taking, is the reasonable market value of the strip of land taken, considered in relation to the entire tract, and also the diminution in the reasonable market value of the remainder of the tract directly resulting by reason of the situation and shape in which it is placed by the taking of said strip, but not exceeding in all the difference between the market value of the whole tract immediately before and the reasonable market value of the remainder immediately after the taking, deducting from both estimates any enhancement of the value of the remainder by reason of the building and use of the road. Franklin County v. Bailey, 250 Ky. 528 , 63 S.W.2d 622, 1933 Ky. LEXIS 739 ( Ky. 1933 ). See Perry County v. Riley, 268 Ky. 325 , 104 S.W.2d 1090, 1937 Ky. LEXIS 461 ( Ky. 1937 ).

Where statutory provisions were not followed in acquisition of land by deed for highway, the county could be required to respond in damages for noncompliance with obligations in the deed to the department of highways and the damages should be measured by the same rules that apply to condemnation proceedings subject to any legal defense available to the county. Bates' Adm'x v. Menifee County, 273 Ky. 417 , 116 S.W.2d 973, 1938 Ky. LEXIS 654 ( Ky. 1938 ).

The damage contemplated in this section is the damage or compensation assessed in acquiring the right-of-way and it does not mean damage negligently inflicted by the Department of Highways to that portion of landowner’s tract which is not acquired for highway purposes. Department of Highways v. Corey, 247 S.W.2d 389, 1952 Ky. LEXIS 701 ( Ky. 1952 ).

18.Contract by Fiscal Court.

Where there was ample evidence of ratification of contracts by county to pay for rights-of-way conveyed to Department of Highways, the claims against county for unpaid consideration were not invalidated because they had not been authorized by the fiscal court. Maggard v. Marcum, 252 S.W.2d 41, 1952 Ky. LEXIS 977 ( Ky. 1952 ).

Cited:

Ex parte Marshall Fiscal Court, 264 Ky. 550 , 95 S.W.2d 33, 1936 Ky. LEXIS 366 ( Ky. 1936 ); Commonwealth v. Tate, 297 Ky. 826 , 181 S.W.2d 418, 1944 Ky. LEXIS 820 ( Ky. 1944 ); Department of Highways v. Current, 299 Ky. 127 , 184 S.W.2d 879, 1944 Ky. LEXIS 1040 ( Ky. 1944 ).

DECISIONS UNDER PRIOR LAW

1.Liability of County.

Const., §§ 13 and 242 prohibited the actual taking of private property for public use without payment, and Const., § 242 allowed compensation for injury or destruction of property unattended by an actual taking. Bushart v. Fulton County, 183 Ky. 471 , 209 S.W. 499, 1919 Ky. LEXIS 504 ( Ky. 1919 ).

Const., § 242 allowed compensation for injury or destruction of property unattended by actual taking. Bushart v. Fulton County, 183 Ky. 471 , 209 S.W. 499, 1919 Ky. LEXIS 504 ( Ky. 1919 ).

2.Payment for Right of Way.

When more than two-thirds of voters of county voted in favor of free turnpikes, that vote authorized incurring indebtedness in excess of revenue for year to purchase privately owned turnpikes. Whaley v. Commonwealth, 110 Ky. 154 , 61 S.W. 35, 23 Ky. L. Rptr. 1292 , 1901 Ky. LEXIS 73 ( Ky. 1901 ).

Research References and Practice Aids

Kentucky Law Journal.

Oberst & Lewis, Claims Against the State of Kentucky — Reverse Eminent Domain, 42 Ky. L.J. 163 (1953).

177.065. Moving costs of residents of land taken, paid when. [Repealed.]

Compiler’s Notes.

This section (Acts 1964, ch. 50, § 1) was repealed by Acts 1970, ch. 207, § 4.

177.066. Financial assistance for persons displaced by highway acquisition. [Repealed.]

Compiler’s Notes.

This section (Acts 1970, ch. 207, §§ 1 to 3) was repealed by Acts 1972, ch. 195, § 18.

177.068. Statutorily designated sections of the National Truck Network.

The United States Route 431 from the junction of the Wendell H. Ford Western Kentucky Parkway to the Kentucky and Tennessee border shall be designated as part of the National Truck Network established pursuant to the federal Surface Transportation Assistance Act of 1982.

History. Enact. Acts 2006, ch. 216, § 1, effective July 12, 2006.

177.070. Purchase of right-of-way — Donations.

  1. Except as provided in subsection (2), the department may agree with any landowner as to the value of a right-of-way and if the agreement is approved by the county attorney the fiscal court shall enter an order directing the payment of the amount agreed upon to the landowner, and the agreement shall be entered upon the county court’s records.
  2. The department may contract with the owners of private surfaced roads necessary to be incorporated in the primary road system, and agree upon the price to be paid, subject to the approval of the county judge/executive and county attorney in each county where such roads are located. Upon receipt of the certificate of the county judge/executive and county attorney showing the transfer and total cost, the Finance and Administration Cabinet shall draw its warrant upon the State Treasurer for payment of the amount certified. The state shall not pay for private roads owned by counties.
  3. Any landowner may donate a right-of-way across his land for any primary road, by executing a deed to the department for the use and benefit of the state for such right-of-way.

History. 4356t-7.

NOTES TO DECISIONS

1.Construction.

This section authorizes Department of Highways to purchase desired rights-of-way at expense of county or its fiscal court, where purchases are approved by county attorney. Brown v. Commonwealth, 259 Ky. 631 , 82 S.W.2d 770, 1935 Ky. LEXIS 341 ( Ky. 1935 ).

Unless directions of this section are complied with in acquisition of land by deed for highway purposes, county does not become obligated to comply therewith, but county may be required to respond in damages for appropriating the land, the damages being measured by same rules that apply to condemnation proceedings. Bates' Adm'x v. Menifee County, 273 Ky. 417 , 116 S.W.2d 973, 1938 Ky. LEXIS 654 ( Ky. 1938 ).

This section provides how the fiscal court may acquire rights-of-way for highway purpose, but the fiscal court alone is invested with this power and cannot delegate it to others. Campbell County v. Braun, 295 Ky. 96 , 174 S.W.2d 1, 1943 Ky. LEXIS 206 ( Ky. 1943 ).

2.Application.

The provisions of subsection (2) of this section were intended to apply only to roads which were public ways but privately owned. Lee County v. Hieronymus, 240 Ky. 490 , 42 S.W.2d 730, 1931 Ky. LEXIS 444 ( Ky. 1931 ).

3.Agreement.

Department of Highways was not bound by arbitration agreement on value of land for highway, when agreement was made between fiscal court and heirs of owner. Adams' Heirs v. McCoy, 212 Ky. 731 , 279 S.W. 1103, 1926 Ky. LEXIS 227 ( Ky. 1926 ).

There is no constitutional or statutory provision authorizing judge of county court to enter into contract for county to arbitrate controversy on right-of-way for public roads, especially where road is state or federal project. Adams' Heirs v. McCoy, 212 Ky. 731 , 279 S.W. 1103, 1926 Ky. LEXIS 227 ( Ky. 1926 ).

Oral agreement regarding right-of-way made with property owner by county judge (now county judge/executive), county attorney, justices of the peace and county road engineer does not constitute a contract binding on the county, as a county cannot contract except through its fiscal court acting as a body. Holbrook v. Letcher County, 223 Ky. 597 , 4 S.W.2d 382, 1928 Ky. LEXIS 390 ( Ky. 1928 ).

The statute contemplates a written agreement filed in and spread upon records of county court, where condemnation proceedings would otherwise have been instituted, so there is an agreed judgment binding on fiscal court. Postlethweighte v. Towery, 258 Ky. 468 , 80 S.W.2d 541, 1935 Ky. LEXIS 183 ( Ky. 1935 ).

Representatives of county, in negotiating for right-of-way, would have no authority to make oral agreement that highway would be constructed on designated part of right-of-way, or that additional payment would be made if highway was not constructed according to conditions specified by landowner, since statute requires that right-of-way agreements be approved by county attorney and fiscal court and entered on the records. Hacker v. Clay County, 291 Ky. 614 , 165 S.W.2d 172, 1942 Ky. LEXIS 288 ( Ky. 1942 ).

County and not state Department of Highways was liable to landowner for removal of lateral support where county in agreement assumed any liability that might arise out of any claim based on failure of properly acquired right-of-way. Commonwealth, Dep't of Highways v. Thacker, 384 S.W.2d 79, 1964 Ky. LEXIS 75 ( Ky. 1964 ).

4.— Approval by County Attorney.

The provision as to county attorney approving agreement refers to an agreement between Department of Highways and property owner, and has no application to an agreement between fiscal court and owner. Lee County v. Hieronymus, 240 Ky. 490 , 42 S.W.2d 730, 1931 Ky. LEXIS 444 ( Ky. 1931 ).

The fiscal court may buy right-of-way without approval and consent of county attorney. Lee County v. Hieronymus, 240 Ky. 490 , 42 S.W.2d 730, 1931 Ky. LEXIS 444 ( Ky. 1931 ). See Postlethweighte v. Towery, 258 Ky. 468 , 80 S.W.2d 541, 1935 Ky. LEXIS 183 ( Ky. 1935 ).

A county attorney cannot bind his county to pay whatever he might agree with property owner for right-of-way. Postlethweighte v. Towery, 258 Ky. 468 , 80 S.W.2d 541, 1935 Ky. LEXIS 183 ( Ky. 1935 ).

5.Authorization by Fiscal Court.

Claims against county by administratrix were not invalid because contracts by county to pay for rights-of-way conveyed to Department of Highways were not authorized by the fiscal court where there was ample evidence of ratification of the contracts. Maggard v. Marcum, 252 S.W.2d 41, 1952 Ky. LEXIS 977 ( Ky. 1952 ).

6.Deed.
7.— Void.

Landowner was not estopped from claiming damages by remaining acquiescent or not making active opposition to state road construction across land, even though she had executed void deed therefor. Franklin County v. Bailey, 250 Ky. 528 , 63 S.W.2d 622, 1933 Ky. LEXIS 739 ( Ky. 1933 ).

Not having lawfully secured a legal or any title to land for road under void deed, state remained in same position as to taking and use as if no negotiations had taken place. Franklin County v. Bailey, 250 Ky. 528 , 63 S.W.2d 622, 1933 Ky. LEXIS 739 ( Ky. 1933 ).

8.— Reformation.

In absence of proof of fraud or mutual mistake, evidence that property owner, in conveying land for right-of-way, thought that road would be constructed a certain distance from his buildings, and that he would be paid additional compensation if road was constructed within a closer distance, did not constitute grounds for reforming conveyance. Hacker v. Clay County, 291 Ky. 614 , 165 S.W.2d 172, 1942 Ky. LEXIS 288 ( Ky. 1942 ).

9.Donation of Right-of-Way.

Where right-of-way deed was given by property owner with understanding that plans for construction would be altered to eliminate proposed change of watercourse, he was entitled to equitable relief against damage caused to his land by reason of failure of Department of Highways to make agreed change. Department of Highways v. McKinney, 291 Ky. 1 , 162 S.W.2d 179, 1942 Ky. LEXIS 156 ( Ky. 1 942 ).

If a landowner gives land for a right-of-way, he cannot impose conditions which might result in injury to the taxpayers without the approval of the county attorney and the fiscal court given in the statutory manner. Hacker v. Clay County, 291 Ky. 614 , 165 S.W.2d 172, 1942 Ky. LEXIS 288 ( Ky. 1942 ).

Cited:

Commonwealth v. Tate, 297 Ky. 826 , 181 S.W.2d 418, 1944 Ky. LEXIS 820 ( Ky. 1944 ).

Research References and Practice Aids

Kentucky Law Journal.

Richardson, Acquisition of Right of Way for Highway Purposes in Kentucky — Right of Eminent Domain and Just Compensation, 36 Ky. L.J. 159 (1948).

Oberst & Lewis, Claims Against the State of Kentucky — Reverse Eminent Domain, 42 Ky. L.J. 163 (1953).

177.072. Motorcycle awareness signs.

  1. As used in this section:
    1. “Local government” means:
      1. Any city organized and governed under KRS Chapter 83 or 83A;
      2. Any urban-county government organized and governed under KRS Chapter 67A;
      3. Any consolidated local government organized and governed under KRS Chapter 67C; and
      4. All of Kentucky’s one hundred twenty (120) counties; and
    2. “Motorcycle awareness signs” means signs that increase the awareness of the traveling public to the possible presence of motorcycles and which are erected in the highway right-of-way of any highway that is part of the state primary road system established under KRS 177.020 .
  2. All statutes to the contrary notwithstanding, the cabinet shall permit any local government, subject to the provisions of subsection (4) of this section, to erect motorcycle awareness signs.
  3. The cabinet may, in addition to authorizing a local government to erect motorcycle awareness signs, also erect motorcycle awareness signs.
  4. Any local government wanting to erect motorcycle awareness signs shall submit a written request to the cabinet. The request shall identify the routes and the specific location on the routes where motorcycle awareness signs will be erected. If the cabinet determines that any location identified in the request would pose a traffic safety hazard, the cabinet shall identify an alternative location for the placement of the motorcycle awareness signs.
  5. The signs authorized to be erected under this section shall consist of two (2) signs. The upper sign shall be diamond shaped with a motorcyclist pictured on the sign. A second rectangular sign shall be placed directly below the diamond shaped sign and contain the words “Share the Road.” The signs shall conform with the standards established in the “Manual on Uniform Traffic Control Devices” published by the United States Department of Transportation, Federal Highway Administration.

History. Enact. Acts 2005, ch. 113, § 1, effective June 20, 2005.

177.073. Official signs and notices as to scenic and historical attractions.

The Department of Highways shall erect within six hundred and sixty (660) feet of the right-of-way of any interstate, limited access highway, federal-aid primary highway, or turnpikes official directional signs and notices pertaining to publicly and privately owned natural wonders and scenic and historical attractions, including cultural, scientific, educational, and religious sites, and areas of natural scenic beauty or naturally suited for outdoor recreation deemed to be in the interest of the traveling public under the following conditions:

  1. Such signs shall not violate any federal law, rule, or regulation, nor exceed any standards of size, lighting, spacing, and message content as may be promulgated from time to time by the secretary of the United States Department of Transportation under subsection (c) of Section 131 of Title 23 of the United States Code affecting the allocation of federal funds to the Commonwealth of Kentucky.
  2. Such signs and notices shall not violate any safety standards set forth in KRS 177.830 to 177.890 nor any regulation promulgated by the commissioner of highways pursuant to KRS 177.860 .
  3. The message content on such signs and notices shall be limited to the identification by name of the attraction or activity and directional information useful to the traveler in locating the attraction, such as mileage, route numbers, or exit numbers. Descriptive words or phrases, and pictorial or photographic representations of the activity or its environs are prohibited.
  4. The commissioner of highways shall promulgate by regulations specific selection methods and criteria to be used in determining those sites and attractions, publicly and privately owned, for which directional signs and notices may be erected as permitted by subsection (c) of Section 131 of Title 23, United States Code. A statement as to selection methods, criteria, and standards of size, lighting, and spacing shall be furnished to the secretary of the United States Department of Transportation before the Department of Highways erects any such directional signs and notices. The commissioner shall consider and determine, upon proper application to the Department of Highways, those sites and attractions eligible for official directional signs and notices.
  5. The Department of Highways shall require reimbursement for the cost of erection and maintenance of official directional signs and notices authorized by this section when such sites or attractions are privately owned and shall prescribe the size, number, and locations of such signs and notices based upon its determination of the traveler’s need for information.
  6. The commissioner of highways shall promulgate such reasonable rules and regulations necessary to carry out the provisions of this section.

History. Enact. Acts 1974, ch. 317, § 1.

NOTES TO DECISIONS

1.Private Attractions.

This section does not grant private individuals the right to erect and maintain signs pertaining to natural wonders and the like while waiting for the bureau (now department) of highways to act and owners of private attractions who desire highway signs advertising such attractions must proceed under this section. Commonwealth, Dep't of Transp. v. Central Kentucky Angus Asso., 555 S.W.2d 627, 1977 Ky. App. LEXIS 798 (Ky. Ct. App. 1977).

177.0734. Definitions for KRS 177.0734 and 177.0736.

As used in KRS 177.0734 and 177.0736 , unless the context requires otherwise:

  1. “Fully controlled access highways” means highways, limited to interstate and state parkways, that shall give preference to through traffic, shall have access only at selected public roads or streets, shall have no highway grade crossing or intersection, and shall further conform with the Federal Highway Administration’s (FHWA’s) adopted standards as contained in Federal Highway Program Manual (FHPM) 6-8-3-8 and to administrative regulations promulgated pursuant to KRS Chapter 13A;
  2. “Logo signs” means signs that consist of a business identification symbol, name, brand, trademark, or combination thereof that may be attached to specific service signs, pursuant to the Manual on Uniform Traffic Control Devices (MUTCD) and administrative regulations promulgated pursuant to KRS Chapter 13A;
  3. “Specific service signs” means official signs, erected on the rights-of-ways of fully controlled or partially controlled access highways or roads as defined in KRS 177.010 , that shall include, but not be limited to, the display of the words “Gas”, “Food”, “Lodging”, “Attractions”, or “Camping” or combinations thereof and shall have space for one (1) or more logo signs that may be attached to the official signs. The erection and maintenance of the official signs shall conform with the Manual on Uniform Traffic Control Devices (MUTCD) and administrative regulations promulgated pursuant to KRS Chapter 13A; and
  4. “Partially controlled access highway” means a highway that gives preference to through traffic, that has access only at selected public roads or streets, and that may have a limited number of highway at-grade intersections and private driveway connections.

History. Enact. Acts 1992, ch. 402, § 1, effective July 14, 1992; 1998, ch. 526, § 5, effective July 15, 1998.

177.0736. Logo and service signs — Administrative regulations.

The commissioner of the Department of Highways shall promulgate administrative regulations, pursuant to KRS Chapter 13A, to provide for the erection of specific service signs on fully controlled access highways or at interchanges on partially controlled access highways. The administrative regulations shall conform to the Manual on Uniform Traffic Control Devices (MUTCD), and shall include, but not be limited to, criteria for the following:

  1. Distances to eligible businesses;
  2. Selection of eligible businesses;
  3. Acceptance of logo signs that conform to the MUTCD;
  4. Removing or covering logo signs during off seasons for eligible businesses operated on a seasonal basis;
  5. Defining the circumstances in which specific service signs are erected; and
  6. Determining the costs to eligible businesses for initial installation, annual maintenance, and removal of logo signs.

History. Enact. Acts 1992, ch. 402, § 2, effective July 14, 1992; 1994, ch. 90, § 1, effective July 15, 1994; 1998, ch. 526, § 6, effective July 15, 1998.

177.0738. Logo signs for eligible businesses.

  1. Any camping facility that has been authorized by the commissioner of the Department of Highways to attach its logo sign to the face of a specific service sign erected on a fully controlled access highway, pursuant to the Federal Highway Administration’s Manual on Uniform Traffic Control Devices, may make application to the commissioner of the Department of Highways to have its logo sign attached to the face of a specific service sign erected on any road as defined in KRS 177.010 .
  2. The commissioner of the Department of Highways shall promulgate administrative regulations, pursuant to KRS Chapter 13A, to provide for the erection of specific service signs on roads, as defined in KRS 177.010 . The specific service signs as herein required to be erected shall include, but not be limited to, the display of logo signs that provide identification of and directional information to camping facilities. The administrative regulations shall conform with the Federal Highway Administration’s Manual on Uniform Traffic Control Devices (MUTCD) and shall include, but not be limited to, criteria for the following:
    1. Selection of eligible businesses;
    2. Distances to eligible businesses;
    3. Acceptance of logo signs that conform to the MUTCD;
    4. Removing or covering logo signs during off-seasons for eligible businesses operated on a seasonal basis;
    5. Defining the circumstances in which specific service signs are erected; and
    6. Determining the costs to eligible businesses for initial installation, annual maintenance, and removal of logo signs.

History. Enact. Acts 1992, ch. 426, § 1, effective July 14, 1992.

177.0739. Bed and breakfast establishments, shopping malls, and shopping areas eligible to obtain specific service highway signs.

All statutes to the contrary notwithstanding, the Transportation Cabinet shall amend its policies and administrative regulations in effect on June 24, 2003, governing highway signage, to include bed and breakfast establishments, shopping malls, and shopping areas as businesses that are eligible to obtain a specific service highway sign, and shall not subsequently adopt new policies or promulgate new administrative regulations to the contrary.

History. Enact. Acts 2002, ch. 298, § 1, effective July 15, 2002; 2003, ch. 57, § 1, effective June 24, 2003.

177.074. Naming of state road or bridge — Signage.

  1. Every road which is part of the state primary system shall be identified by a specific route number. In addition to a route number, the secretary shall direct the placement of signage denoting the honorary naming of a bridge, a road, or a road segment to comply with the provisions of subsections (2), (3), and (5) of this section.
  2. The secretary shall, within thirty (30) days of receipt of a written request by the commissioner of the Department of Kentucky State Police, name a state road or segment of a state road in memory and honor of Kentucky state troopers killed in the line of duty. The written request shall include the:
    1. Trooper’s name;
    2. Date and circumstances of the trooper’s death; and
    3. Specific segment of state road the Department of Kentucky State Police is requesting be named in honor and memory of the state trooper killed in the line of duty.
  3. The road or road segment identified in the request shall be either the state road where the trooper was killed, or the state road closest to the deceased trooper’s home. The cabinet shall consult with the commissioner of the Department of Kentucky State Police on the design and installation of the road signs naming the state road or road segment in honor and memory of each trooper, and the cabinet shall erect the appropriate highway signs within thirty (30) days of receipt of the written request required under subsection (2) of this section.
  4. If the road segment identified in the request under subsection (2) of this section has already been named for another individual or organization, the Department of Kentucky State Police and the cabinet shall consult on and determine an alternate location that is acceptable to both agencies.
  5. The secretary shall direct the placement of signage denoting the honorary naming of a road, a road segment, or a bridge upon direction by joint resolution of the General Assembly.
  6. The placement of the signs installed as a result of a resolution passed by the General Assembly shall be the responsibility of the Department of Highways.
    1. A school board or the governing body of a city or county may petition the secretary for the installation of temporary signage honoring an individual, a group of individuals, or a team.
    2. The secretary shall, within thirty (30) days of receipt of a written request under this subsection, approve or deny the petition.
    3. Within thirty (30) days of the approval of a petition, the secretary shall direct the placement of honorary signage under this subsection. The Transportation Cabinet shall be the final arbiter of the location of signage placement under this subsection. Signage installed under this subsection shall remain in place for a minimum of one (1) year from the date of its placement.
    4. The petitioning body shall bear all costs of signage and installation under this subsection.
  7. The Transportation Cabinet may adopt administrative regulations to implement the provisions of subsection (7) of this section, including but not limited to basic standards for design and placement of signs and establishing a process to allow the petitioning body to reimburse the Transportation Cabinet for the cost of manufacturing and installing the signs for which a petition has been granted.
  8. The new proposed truck bypass around Mayfield, Kentucky, shall be named the “Dick Castleman Bypass,” after former State Representative Dick Castleman.
  9. The bridge on United States Highway 27 over the Kentucky River near Camp Nelson, between Jessamine and Garrard Counties, shall be named the “Loyd Murphy Memorial Bridge.”

History. Enact. Acts 1990, ch. 180, § 1, effective July 13, 1990; 1996, ch. 356, § 2, effective July 15, 1996; 2002, ch. 64, § 2, effective July 15, 2002; 2007, ch. 85, § 185, effective June 26, 2007; 2022 ch. 218, § 1, effective July 14, 2022.

177.0745. Designation of Grange City Covered Bridge.

The Hillsboro Covered Bridge in Fleming County is renamed and designated the “Grange City Covered Bridge.”

History. Enact. Acts 1998, ch. 404, § 2, effective July 15, 1998.

177.075. Condemnation by Highway Department for roads and road materials. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1950, ch. 27, §§ 1 and 2) was repealed by Acts 1952, ch. 49, § 11, effective June 19, 1952.

177.076. Definitions for KRS 177.076 to 177.079.

As used in KRS 177.076 to 177.079 , unless the context requires otherwise:

  1. “Historical site” means a cultural or educational site that is officially listed in the National Register of Historical Places;
  2. “Fully controlled access highway” means a limited access highway, an interstate highway, and a parkway;
  3. “Limited supplemental guide sign” means an official highway guide sign that is erected by the Department of Highways to give directions, furnish advance notice, show mileage or exit indicators, and indicate access to historical sites or to scenic, cultural, and recreational tourist areas or attractions and that conforms to the design standards and requirements set forth in the Manual on Uniform Traffic Control Devices (MUTCD);
  4. “Post-interchange guide sign” means an official highway sign that may be used in conjunction with a limited supplemental guide sign and lists the name of a tourist area or attraction or an historical site and the distance from an interstate to a tourist area or attraction or an historical site. A post-interchange guide sign shall conform to the design standards and requirements set forth in the Manual on Uniform Traffic Control Devices (MUTCD);
  5. “Rural area” means an area that does not have sufficient population to be designated as an urban area;
  6. “Tourist area or attraction” means a cultural, recreational, or entertainment facility, family entertainment center, or an area of natural phenomenon or scenic beauty that is suited for outdoor recreation that receives a major portion of its income or visitors during the normal business season from motorists not residing in the immediate area of the tourist area or attraction. “Tourist area or attraction” does not include any of the following:
    1. Lodging facilities; or
    2. Facilities that are primarily devoted to the retail sale of goods, unless the facilities are a family entertainment center or the goods are created by individuals at the tourist area or attraction or if the sale of goods is incidental to the tourist area or attraction; or
    3. Recreational facilities that do not serve as a likely destination where individuals who are not residents of the state would remain overnight in commercial lodging at or near the tourism area or attraction;
  7. “Family entertainment center” means a facility, other than a stand alone shopping center, that meets all of the following criteria:
    1. Contains a minimum of fifty thousand (50,000) square feet of building space;
    2. Is located on property encompassing at least five (5) acres adjacent or complementary to a cultural, recreational, or entertainment facility, or natural recreational area;
    3. Provides a variety of entertainment and leisure options;
    4. Contains at least one (1) restaurant and at least two (2) additional venues, including, but not limited to, live entertainment, concert halls, museums, zoos, or other cultural, recreational or leisure activities; and
    5. Is at a location where sixty percent (60%) of the developed property is devoted to entertainment and food options.
  8. “City” means an area with a population of one hundred thousand (100,000) or more designated by the United States Department of Commerce, Bureau of the Census.

History. Enact. Acts 1998, ch. 526, § 1, effective July 15, 1998; 2000, ch. 353, § 1, effective July 14, 2000.

177.077. Limited supplemental guide signs — Administrative regulations — Criteria for approval — Hearings — Effect on pre-existing signs.

  1. No later than February 1, 1999, the commissioner of the Department of Highways shall establish standards, procedures, and forms for the making and approval of applications for a limited supplemental guide sign by the promulgation of administrative regulations in accordance with KRS Chapter 13A.
  2. The criteria for the approval of a limited supplemental guide sign application for an historical site or for a tourist area or attraction shall be based upon average annual attendance and distance from a fully controlled access highway interchange.
  3. At a fully controlled access highway interchange in a rural area, the standards for approval shall be the lesser of:
    1. Tourist areas and attractions that have an average annual attendance of ten thousand (10,000) visitors and are located within fifty (50) miles of a fully controlled access highway;
    2. Tourist areas and attractions that are located within fifty (50) miles of a fully controlled access interchange and have an annual visitation equal to or greater than the average annual daily traffic count of the fully controlled access highway at the interchange from which the attraction is served.
  4. At a fully controlled access highway interchange in a city, the standards for approval shall be the lesser of:
    1. Tourist areas and attractions that have an average annual attendance of seventy-five thousand (75,000) visitors and are located within fifty (50) miles of a fully controlled access highway interchange;
    2. Tourist areas and attractions that are located within fifty (50) miles of a fully controlled access highway interchange and have an annual visitation equal to the average annual daily traffic count of the fully controlled access highway at the interchange from which the attraction is served.
  5. Historical sites that are located in either a rural area or a city shall have an average annual attendance of five thousand (5,000) and shall be located within fifty (50) miles from a fully controlled access highway interchange.
  6. The identification of a tourist area or attraction on a specific service sign pursuant to KRS 177.0736 shall not affect its eligibility for a limited supplemental guide sign.
  7. Upon receipt of an application, the commissioner of the Department of Highways shall within thirty (30) days provide written notification to the applicant of any hearings pertaining to the application. The commissioner of the Department of Highways shall make a determination on whether to approve the erection of a limited supplemental guide sign within ninety (90) days after the receipt of an application and shall provide written notification to the applicant of his decision.
  8. Supplemental guide signs, including but not limited to limited supplemental guide signs, erected prior to July 1, 1998, shall not be removed due to the site selection criteria contained in KRS 177.076 to 177.079 .

History. Enact. Acts 1998, ch. 526, § 2, effective July 15, 1998; 2000, ch. 353, § 2, effective July 14, 2000.

Legislative Research Commission Note.

(7/14/2000). Section 2 of 2000 Ky. Acts ch. 353 (House Bill 693) made no changes to this statute. The changes to KRS 177.077 contained in the General Assembly version of House Bill 693 were eliminated by Senate Committee Amendment 1, which was adopted by the Senate and concurred in by the House of Representatives. This left the existing text of KRS 177.077 unchanged.

177.078. Application — Fees — Reimbursement.

  1. An application from an historical site or from a tourist area or attraction for the erection of a limited supplemental guide sign shall be made to the commissioner of the Department of Highways. The application shall include, but not be limited to:
    1. Evidence that demonstrates the average annual attendance;
    2. Evidence that the tourist area or attraction is established as a permanent business; and
    3. Evidence that the tourist area or attraction has all necessary and proper licenses, that normal business hours shall be maintained, that it is open to the traveling public, and that it provides recreational or educational opportunities.
  2. An application fee of two hundred dollars ($200) shall be paid to the Department of Highways by each applicant.
  3. Upon approval of the application, the applicant shall reimburse the Transportation Cabinet for the total cost of the sign and its installation. The applicant shall have the option to pay the reimbursement cost in full or amortize the reimbursement cost for a period not to exceed ten (10) years.

History. Enact. Acts 1998, ch. 526, § 3, effective July 15, 1998; 2000, ch. 353, § 3, effective July 14, 2000; 2010, ch. 30, § 1, effective July 15, 2010.

177.079. Commissioner required to apply to Federal Highway Administration for experimental usage of signs.

Pursuant to the requirements of the MUTCD Section 1A-6, the commissioner of the Department of Highways shall apply to the Federal Highway Administration, by no later than February 1, 1999, for permission to experiment with a new usage of post-interchange guide signs on all fully controlled access highways in the Commonwealth of Kentucky.

History. Enact. Acts 1998, ch. 526, § 4, effective July 15, 1998.

177.080. Condemnation for right-of-way. [Repealed.]

Compiler’s Notes.

This section (4356t-7) was repealed by Acts 1950, ch. 27, § 3.

177.081. Authority of Department of Highways to condemn land and materials — Title to property — Conclusiveness of official order — Duty of department to clear and maintain property.

  1. The Commonwealth of Kentucky, Department of Highways, when it has, by official order, designated the route, location, or relocation of a highway, limited access highway, bridge, roadside park, borrow-pit, quarry, garage, or other property or structure deemed necessary for the construction, reconstruction, or maintenance of an adequate system of highways, may, if unable to contract or agree with the owner or owners thereof, condemn the lands or material, or the use and occupancy of the lands designated as necessary. All property acquired by the Commonwealth of Kentucky, Department of Highways, shall be in fee simple whenever so specified in the petition filed in the action. The official order of the Department of Highways shall be conclusive of the public use of the condemned property and the condemnor’s decision as to the necessity for taking the property will not be disturbed in the absence of fraud, bad faith, or abuse of discretion.
  2. Any property purchased or otherwise acquired by the Department of Highways for the purpose of construction or reconstruction of a road, street, or highway shall be cleared and maintained by the Department of Highways from the time of acquisition until such property is no longer owned by the department.
  3. The proceedings for condemnation shall be as provided in the Eminent Domain Act of Kentucky.

History. Enact. Acts 1952, ch. 49, §§ 1, 10; effective June 19, 1952; 1974, ch. 74, Art. IV, § 20(1); 1976, ch. 140, § 74; 1980, ch. 231, § 2, effective July 15, 1980.

Compiler’s Notes.

The Eminent Domain Act of Kentucky referred to in subsection (3) of this section is compiled as KRS 416.540 to 416.680 .

NOTES TO DECISIONS

1.Constitutionality.

KRS 177.081 does not violate the separation-of-powers doctrine under Ky. Const. §§ 27 and 28. Rabourn v. Commonwealth, 2006 Ky. App. Unpub. LEXIS 137 (Ky. Ct. App. July 14, 2006).

2.Condemnation.
3.— Right.

Where it appears distinctly possible that value of land condemned for the disposal of waste of rock and dirt from highway project will be enhanced by filling it to the level of the highway there was good reason for acquisition of fee simple title of such land. Commonwealth, Dep't of Highways v. Burchett, 367 S.W.2d 262, 1963 Ky. LEXIS 19 ( Ky. 1963 ).

In condemnation case even though bottom land in hill country is scarce and valuable and is one of the circumstances of the case it is not a dispositive consideration on the question of necessity. Commonwealth, Dep't of Highways v. Burchett, 367 S.W.2d 262, 1963 Ky. LEXIS 19 ( Ky. 1963 ).

Judicial power of government should not be invoked against discretion of agency of executive branch in determining what is in public interest, including what particular property is needed in connection with a valid public project, unless there is such clear and gross abuse of discretion as to offend guaranty of constitution against exercise of arbitrary power. Commonwealth, Dep't of Highways v. Burchett, 367 S.W.2d 262, 1963 Ky. LEXIS 19 ( Ky. 1963 ).

Where commissioner of highways made order reciting that the interest of the public will best be served by the acquisition of an entire tract of land which was in excess of the amount actually needed for the traveled portion of the highway and there was no evidence of fraud, bad faith or abuse of discretion on the part of the commissioner, the court would not disturb the finding as to the commissioner on the question of the necessity for the land. Commonwealth Dep't of Highways v. Vandertoll, 388 S.W.2d 358, 1964 Ky. LEXIS 538 (Ky. Ct. App. 1964).

When the highway department by official order determines that an acquisition is necessary this section places on the defendant the burden of proving fraud, bad faith or abuse of discretion. Commonwealth, Dep't of Highways v. Burchett, 367 S.W.2d 262, 1963 Ky. LEXIS 19 ( Ky. 1963 ).

The right of condemnation for highway purposes could not be made to depend upon the predominance of the public interest over private benefit; the accepted test is whether the roadway is under the control of public authorities and is open to public use, without regard to private interest or advantage. Sturgill v. Commonwealth, Dep't of Highways, 384 S.W.2d 89, 1964 Ky. LEXIS 79 ( Ky. 1964 ).

The condemner’s decision as to the necessity for taking the property will not be disturbed in the absence of fraud, bad faith, or abuse of discretion. Commonwealth Dep't of Highways v. Vandertoll, 388 S.W.2d 358, 1964 Ky. LEXIS 538 (Ky. Ct. App. 1964).

Subsection (1) grants the Department of Transportation broad discretion to determine necessity for acquisition of land to build highways and upon a determination of necessity, the commonwealth’s right of acquisition may be defeated only by proof of fraud, bad faith or abuse of discretion, and the landowner opposing condemnation bears the burden of proof. Commonwealth Transp. Cabinet Dep't of Highways v. Taub, 766 S.W.2d 49, 1988 Ky. LEXIS 83 ( Ky. 1988 ), overruled in part, Fischer v. Fischer, 348 S.W.3d 582, 2011 Ky. LEXIS 37 ( Ky. 2011 ).

Because KRS 177.081 did not violate the separation-of-powers doctrine under Ky. Const. §§ 27 and 28, and the fact that the Department of Highways could have applied a lower speed design or chosen a different route did not imply that the road design was arbitrary or an abuse of discretion, the condemnation action was affirmed. Rabourn v. Commonwealth, 2006 Ky. App. Unpub. LEXIS 137 (Ky. Ct. App. July 14, 2006).

4.— Abandonment of Proceedings.

After good faith abandonment, condemner is entitled to maintain new proceedings, and pending trial judgments fixing awards property owners should be ordered to remit respective amounts received in excess of commissioner’s awards in new suits. Commonwealth, Dep't of Highways v. Fultz, 360 S.W.2d 216, 1962 Ky. LEXIS 220 ( Ky. 1962 ).

Having once abandoned action, condemner’s right to proceed anew against same property, for same purpose, depends on whether abandonment was in good faith. Condemner cannot resort to experimental suits and assessments and in effect obtain new trial to have reassessment without taking appeal. Commonwealth, Dep't of Highways v. Fultz, 360 S.W.2d 216, 1962 Ky. LEXIS 220 ( Ky. 1962 ).

In absence of statutory regulation to contrary, eminent domain proceedings may be abandoned by condemner at any time, even after judgment so long as possession has not been taken or award paid. Commonwealth, Dep't of Highways v. Fultz, 360 S.W.2d 216, 1962 Ky. LEXIS 220 ( Ky. 1962 ).

Since right of abandonment may be exercised by condemner at any stage of litigation, order in Circuit Court reciting fact of abandonment extinguishes entire proceeding. Commonwealth, Dep't of Highways v. Fultz, 360 S.W.2d 216, 1962 Ky. LEXIS 220 ( Ky. 1962 ).

5.— Change in Plans and Specifications.

A change in plans and specifications of a highway improvement which affected landowners’ property after procuring of a deed in condemnation proceedings was permissible. Cartee v. Commonwealth, Dep't of Highways, 374 S.W.2d 860, 1964 Ky. LEXIS 396 ( Ky. 1964 ).

Commonwealth is not obligated to build highway according to original plans or to build at all, unless right-of-way deed so provides. Commonwealth, Dep't of Highways v. King, 375 S.W.2d 688, 1964 Ky. LEXIS 424 ( Ky. 1964 ).

An official order pursuant to this section may be amended by the Transportation Cabinet subject to the restrictions set forth in this section applicable to the original order. Commonwealth Transp. Cabinet Dep't of Highways v. Taub, 766 S.W.2d 49, 1988 Ky. LEXIS 83 ( Ky. 1988 ), overruled in part, Fischer v. Fischer, 348 S.W.3d 582, 2011 Ky. LEXIS 37 ( Ky. 2011 ).

6.— Exemption.

A cemetery’s exemption from taking by condemnation, specifically granted to its property by Acts 1888, ch. 35, § 2(a), was not invalidated by this section and KRS 416.540 relating to the Department of Highway’s power of eminent domain. Mother of God Cemetery Asso. v. Commonwealth, Transp. Cabinet, Dep't of Highways, 759 S.W.2d 69, 1988 Ky. App. LEXIS 128 (Ky. Ct. App. 1988).

7.Evaluation.

Loss of the potential to exploit commercially the express traffic which is diverted from old highway to new highway is not a compensable element of loss in a condemnation proceeding. Commonwealth, Dep't of Highways v. Raybourn, 359 S.W.2d 611, 1962 Ky. LEXIS 200 ( Ky. 1962 ).

Assignment of separate values to certain underground storage tanks used in conjunction with a service station located on the condemned land was error. Commonwealth, Dep't of Highways v. Belk, 389 S.W.2d 920, 1965 Ky. LEXIS 398 ( Ky. 1965 ).

An award of $97,250 for the taking of land on which a synagogue was situated was not in error where evidence fixed the value at $142,461 and $75,260. Commonwealth, Dep't of Highways v. Congregation Anshei S'Fard, 390 S.W.2d 454, 1965 Ky. LEXIS 353 ( Ky. 1965 ).

Where after taking 16.08 acres from a 51-acre farm for highway purposes the farm was divided so that a 10.36-acre tract without improvements was left on the south side of the highway and a 24.56-acre tract with improvements was situated north of the new turnpike and Commonwealth’s two witnesses testified the difference in market value before and after the taking was $3,525 and $3,420 and the landowner’s two witnesses fixed the difference between the before and after values at $8,000 and $8,750, a verdict of $6,585 was not excessive. Commonwealth, Dep't of Highways v. Darnell, 400 S.W.2d 230, 1966 Ky. LEXIS 430 ( Ky. 1966 ).

Verdict of $5,000 was more than liberal but fell just a hair short of appearing at first blush to have been the result of passion or prejudice where 3.76 acres were taken but the farm was divided so 4.88 acres were on the north side of the new road and 91.36 acres were on the south side of the new road with the 30-foot high road passing between the residence and the barn. Commonwealth, Dep't of Highways v. Musick, 400 S.W.2d 513, 1966 Ky. LEXIS 436 ( Ky. 1966 ).

Where the commissioners of the county court in their report fell into the error of listing a separate amount for a fencing item it in no way affected the owner’s rights upon their appeal. Commonwealth, Dep't of Highways v. Boyer, 434 S.W.2d 630, 1968 Ky. LEXIS 236 ( Ky. 1968 ).

While supporting facts are admissible, dollar figures must not be placed on individual damage factors. Commonwealth, Dep't of Highways v. Boyer, 434 S.W.2d 630, 1968 Ky. LEXIS 236 ( Ky. 1968 ).

8.— Evidence.

Evidence relating to sales of tracts of two (2) and three (3) acres was admissible where there was competent evidence relating to the adaptability of the subject land for subdivision. Commonwealth, Dep't of Highways v. West, 383 S.W.2d 116, 1964 Ky. LEXIS 5 ( Ky. 1964 ).

Actual time witness made up his mind as to appraised value of property condemned for highway purposes is unimportant so long as it is within a reasonable time of the taking. Commonwealth, Dep't of Highways v. Bennett, 387 S.W.2d 594, 1965 Ky. LEXIS 477 ( Ky. 1965 ).

Value of tract of land after the construction of the new road had been completed was admissible in condemnation action for highway purposes. Commonwealth, Dep't of Highways v. Belk, 389 S.W.2d 920, 1965 Ky. LEXIS 398 ( Ky. 1965 ).

Generally the market value of property taken by condemnation for highway purposes is the standard to determine just compensation for taking of property and evidence of replacement value must relate to the market value. Commonwealth, Dep't of Highways v. Congregation Anshei S'Fard, 390 S.W.2d 454, 1965 Ky. LEXIS 353 ( Ky. 1965 ).

Testimony as to the undepreciated cost of constructing a replica of a synagogue was improper but not prejudicial considered with the other evidence pertaining to depreciation. Commonwealth, Dep't of Highways v. Congregation Anshei S'Fard, 390 S.W.2d 454, 1965 Ky. LEXIS 353 ( Ky. 1965 ).

Although it is overall values which are to be presented, it is proper on cross-examination to delve into factors used by the witness to ascertain whether he has reached the values in an approved manner. Commonwealth, Dep't of Highways v. Boyer, 434 S.W.2d 630, 1968 Ky. LEXIS 236 ( Ky. 1968 ).

It was reversible error for the condemnee and his three witnesses to testify as to before and after value and then as to the additional factor of fencing cost. Commonwealth, Dep't of Highways v. Boyer, 434 S.W.2d 630, 1968 Ky. LEXIS 236 ( Ky. 1968 ).

Fact that the commissioners placed a substantially higher value on the property did not necessarily indicate that the Department of Highway’s offer was unreasonable; thus, the trial court did not clearly err in finding that the Department negotiated in good faith in regard to the condemnation action. Rabourn v. Commonwealth, 2006 Ky. App. Unpub. LEXIS 137 (Ky. Ct. App. July 14, 2006).

9.— Expert Witnesses.

Comparable sales ranging from two (2) to eight (8) miles and some on inferior roads were admissible where the properties were reasonably similar and a qualified expert stated that they were sufficiently comparable for appraisal purposes. Commonwealth, Dep't of Highways v. West, 383 S.W.2d 116, 1964 Ky. LEXIS 5 ( Ky. 1964 ).

Persons who were skilled in professional appraisal techniques and were regularly engaged in land transactions in the area, qualified as expert valuation witnesses and the jury was entitled to give their opinions of damages great weight. Commonwealth, Dep't of Highways v. Belk, 389 S.W.2d 920, 1965 Ky. LEXIS 398 ( Ky. 1965 ).

When the chief controversy is the amount of damages to be awarded and an expert witness gives opinions of the amount of damages which are glaringly contradictory, his status as an expert becomes so unreliable that his testimony should be stricken upon a proper motion. Commonwealth, Dep't of Highways v. Belk, 389 S.W.2d 920, 1965 Ky. LEXIS 398 ( Ky. 1965 ).

Where expert witnesses testified land was worth $99,151 and $92,000 before condemnation and the damage was $71,325 and $75,000 but on cross-examination testified the value of a hypothetical tract of land identical with that of the landowner’s remaining land was $64,844 and $51,600, their glaringly contradictory testimony should have been stricken on proper motion. Commonwealth, Dep't of Highways v. Belk, 389 S.W.2d 920, 1965 Ky. LEXIS 398 ( Ky. 1965 ).

Witnesses need not be expert land appraisers in the sense that they had instruction and experience in the science of real estate appraisement and where they owned real estate in the area and had bought and sold a few tracts of land in the community they were qualified and the weight to which their testimony was entitled was for the jury to determine. Commonwealth, Dep't of Highways v. Musick, 400 S.W.2d 513, 1966 Ky. LEXIS 436 ( Ky. 1966 ).

10.— Unit.

In condemnation cases involving different estates and interests in a single tract or parcel the property shall be evaluated as a unit, and, if the condemner fails in the attempt to acquire a substantial interest by contract there is no valid reason it should not be permitted to acquire the entire unit by condemnation. Commonwealth v. Cardinal Hill Nursery, Inc., 343 S.W.2d 842, 1961 Ky. LEXIS 449 ( Ky. 1961 ).

Ordinarily, two or more parcels of land constitute one tract for the purpose of assessing damages for injury to the portion not taken when they are physically contiguous and are united in use and ownership. Commonwealth, Dep't of Highways v. Raybourn, 359 S.W.2d 611, 1962 Ky. LEXIS 200 ( Ky. 1962 ).

Reference in condemnation petition to two deeds was merely reference to source of title and did not preclude state from introducing proof to show why the two tracts should not be regarded as a single unit of land for purpose of determining damages. Commonwealth, Dep't of Highways v. Raybourn, 359 S.W.2d 611, 1962 Ky. LEXIS 200 ( Ky. 1962 ).

When it has been proven that the owner of property, on which land is being taken by the power of eminent domain, has purchased such property with the knowledge of that fact, he is not entitled, for the purpose of assessing damages, to have it considered a part of other property previously acquired by him. Commonwealth, Dep't of Highways v. Raybourn, 359 S.W.2d 611, 1962 Ky. LEXIS 200 ( Ky. 1962 ).

11.Injunction.

Landowner cannot enjoin state department of highways from constructing highway and from instituting proceedings to condemn realty but must first avail himself of the statutory remedy provided by KRS 177.081 to 177.087 (KRS 177.083 to 177.087 now repealed) and if for any reason the efficacy of the remedy is threatened the court may then upon proper application resort to injunctive relief to preserve the remedy afforded by the statute. Collins v. Commonwealth, 324 S.W.2d 406, 1959 Ky. LEXIS 371 ( Ky. 1959 ).

12.Determination of Necessity.

While the right to condemn for access roads was incident to the right to condemn for a main highway, access roads were not so unimportant and trivial that land could be condemned for them without an official determination of necessity. Commonwealth, Dep't of Highways v. Salmon Corp., 489 S.W.2d 32, 1972 Ky. LEXIS 25 ( Ky. 1972 ).

13.Interference With Access to Property.

The diminished width of a public street after construction of a bridge did not deprive neighboring furniture store owners of reasonable access to their property as, with regard to their private use of the street as a loading zone, store owners, after construction of the bridge, lost nothing more than the convenience of blocking the street while unloading large delivery trucks; the only thing that changed as a result of the diminished width of the street was that they had to use smaller trucks. Gibson v. Commonwealth, Transp. Cabinet, Dep't of Highways, 777 S.W.2d 234, 1989 Ky. App. LEXIS 169 (Ky. Ct. App. 1989).

Cited:

Commonwealth v. Mayo, 324 S.W.2d 802, 1959 Ky. LEXIS 376 ( Ky. 1959 ); Riley v. Commonwealth, Dep’t of Highways, 375 S.W.2d 245, 1963 Ky. LEXIS 185 ( Ky. 1963 ); Commonwealth, Dep’t of Highways v. C. S. Brent Seed Co., 376 S.W.2d 310, 1964 Ky. LEXIS 446 ( Ky. 1964 ); Commonwealth, Dep’t of Highways v. Bennett, 386 S.W.2d 733, 1965 Ky. LEXIS 524 ( Ky. 1965 ); Cartmell v. Urban Renewal & Community Development Agency, 430 S.W.2d 649, 1968 Ky. LEXIS 408 ( Ky. 1968 ); Commonwealth, Dep’t of Transp., Bureau of Highways v. Catlett, 568 S.W.2d 759, 1978 Ky. App. LEXIS 553 (Ky. Ct. App. 1978).

DECISIONS UNDER PRIOR LAW

  1. Condemnation.
  2. — Conditions Precedent.
  3. — Termination of Proceedings.
  4. Liability of County.
  5. Damages.
1.Condemnation.
2.— Conditions Precedent.

Inability to agree with the owner of land desired was a condition precedent to condemnation. Howard Realty Co. v. Paducah & I. R. Co., 182 Ky. 494 , 206 S.W. 774, 1918 Ky. LEXIS 395 ( Ky. 1918 ). See Postlethweighte v. Towery, 258 Ky. 468 , 80 S.W.2d 541, 1935 Ky. LEXIS 183 ( Ky. 1935 ).

3.— Termination of Proceedings.

Highway contractor was liable in trespass to property owner for entering upon land and beginning construction without waiting for termination of condemnation proceedings and payment of damages. Terhune v. Gorham, 225 Ky. 249 , 8 S.W.2d 431, 1928 Ky. LEXIS 785 ( Ky. 1928 ).

County could have interpleaded as party defendant in action for entering upon land and beginning construction before termination of condemnation proceeding. Terhune v. Gorham, 225 Ky. 249 , 8 S.W.2d 431, 1928 Ky. LEXIS 785 ( Ky. 1928 ).

4.Liability of County.

When the state or county took land of individual for right-of-way and used it for that purpose, the county was estopped to deny its liability for reasonable value of land taken and incidental damages to balance of tract. Muhlenberg v. Ray, 215 Ky. 295 , 284 S.W. 1074, 1926 Ky. LEXIS 706 ( Ky. 1926 ).

5.Damages.

Direct damages to realty could not have been diminished by anticipated enhancement by highway, though the latter could have been set off against consequential damages. Waggoner v. Commonwealth, 206 Ky. 703 , 268 S.W. 317, 1925 Ky. LEXIS 1020 ( Ky. 1925 ).

Where company had an easement from the state department of highways, along a state highway, for the maintenance of a water pipeline, it was entitled, when highway was widened so as to make it necessary to relocate the pipeline, to an award of damages equal to the cost of relocating the pipeline, its damages not being limited to the mere value of the original easement. Commonwealth v. Means & Russell Iron Co., 299 Ky. 465 , 185 S.W.2d 960, 1945 Ky. LEXIS 451 ( Ky. 1945 ).

Where operator of a residential subdivision, after obtaining grant of easement from state Department of Highways, had constructed a water pipeline along south side of state highway, he was entitled, in condemnation proceeding brought by state in connection with proposed reconstruction and widening of highway, to an award of damages equal to cost of relocating his pipeline on the north side of the highway, which was made necessary by the proposed reconstruction. In such case, where it was proved that 3,000 feet of pipe would have to be relocated in order to make the pipeline function, condemnee was entitled to an award based on the cost of relocating 3,000 feet, although only 652 feet were within the condemned area. Commonwealth v. Means & Russell Iron Co., 299 Ky. 465 , 185 S.W.2d 960, 1945 Ky. LEXIS 451 ( Ky. 1945 ).

Opinions of Attorney General.

In condemnation cases involving the Commonwealth of Kentucky, department of highways, the department of highways is not required to pay the $3.00 writ tax or the $4.00 jury fee. OAG 62-431 .

Scenic strips and easements adjacent to the highway rights of way could be legally purchased for beautification purposes and highway funds could be expended for such purpose. OAG 66-35 .

Research References and Practice Aids

Kentucky Law Journal.

Germain, Remedies, 63 Ky. L.J. 777 (1974-1975).

Treatises

Caldwell’s Kentucky Form Book, 5th Ed., Practice Context for Condemnation (Eminent Domain), § 307.00.

ALR

Condemnation of materials for highways. 172 A.L.R. 131.

Abutting owner’s right to damages for limitation of access caused by conversion of conventional road into limited-access highway. 42 A.L.R.3d 13.

Measure and elements of damage for limitation of access caused by conversion of conventional road into limited-access highway. 42 A.L.R.3d 148.

177.082. County attorney to represent Department of Highways in condemnation proceedings — Petition.

The Commonwealth of Kentucky, Department of Highways, when seeking to condemn lands and material and the use and occupancy of lands, under the provisions of KRS 177.081 , shall direct the county attorney or any attorney authorized to represent the Commonwealth to file a petition in the office of the Circuit Court clerk in the county in which all or the greater portion of the land or material is located. If any authorized attorney, other than the county attorney, is directed to file the petition, the county attorney shall assist in the prosecution of the action. The petition shall be filed in the name of the Commonwealth of Kentucky, Department of Highways, and may join as plaintiff the county in which any part of the property is situated, or in which the petition is filed, or any municipality thereof.

History. Enact. Acts 1952, ch. 49, § 2; 1974, ch. 74, Art. IV, § 20(1); 1976, ch. 140, § 75; 1976 (Ex. Sess.), ch. 14, § 166, effective January 2, 1978.

NOTES TO DECISIONS

1.Filing Official Order.

The official order of the Department of Highways designating the property needed was conclusive of the public use of the property and county court judgment was voidable where Commonwealth failed to file the official order. Commonwealth, Dep't of Highways v. Harkness, 383 S.W.2d 359, 1964 Ky. LEXIS 37 ( Ky. 1964 ).

Where Commonwealth failed to file official order of the Department of Highways designating the property needed and county court judgment was voidable, the county court could enter a second or corrected judgment when the Commonwealth filed the official order. Commonwealth, Dep't of Highways v. Harkness, 383 S.W.2d 359, 1964 Ky. LEXIS 37 ( Ky. 1964 ).

2.Condemnation in Reverse.

Where after taking deeds for property of a certain tract, the highway department took an additional amount which was not included in the deed, the action for compensation therefor was condemnation in reverse and was properly brought in the county in which the land lay rather than in the court of claims under KRS 44.070 . Commonwealth, Dep't of Highways v. Gisborne, 391 S.W.2d 714, 1965 Ky. LEXIS 329 ( Ky. 1965 ).

Cited:

Stillpass v. Kenton County Ariport Board, Inc., 403 S.W.2d 46, 1966 Ky. LEXIS 324 ( Ky. 1966 ); Commonwealth, Dep’t of Transp., Bureau of Highways v. Catlett, 568 S.W.2d 759, 1978 Ky. App. LEXIS 553 (Ky. Ct. App. 1978).

DECISIONS UNDER PRIOR LAW

1.County Attorney.

County attorney remained authorized representative of county in appeal by county to the Circuit Court and could have entered into an agreement with landowner pending appeal. Reams v. Laurel County, 289 Ky. 744 , 160 S.W.2d 176, 1942 Ky. LEXIS 647 ( Ky. 1942 ).

Opinions of Attorney General.

A county attorney and his law partner, who is the Commonwealth’s Attorney of that district, may pursue cases pending against the Department of Highways which are not in that county or judicial district, since there is no conflict of interest. OAG 70-307 .

A county attorney should not engage in negotiations relating to state highway rights-of-way located in his county nor condemnation cases arising in his county even though he was retained prior to assuming office, but he may represent private parties involved in condemnation proceedings in other counties since his statutory obligations as county attorney do not extend to other counties. OAG 74-111 .

Research References and Practice Aids

Kentucky Law Journal.

Underwood, Part-Time Prosecutors and Conflicts of Interest: A Survey and Some Proposals, 81 Ky. L.J. 1 (1993).

177.083. Commissioners, appointment, oath, duties, fees. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1952, ch. 49, § 3, effective June 19, 1952) was repealed by Acts 1976, ch. 140, § 129.

177.084. Summons, issuance, contents — Report of warning order attorney. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1952, ch. 49, § 4; Acts 1954, ch. 243, § 1, effective March 13, 1954) was repealed by Acts 1976, ch. 140, § 129.

177.085. Answer, filing, allegations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1952, ch. 49, § 5, effective June 19, 1952) was repealed by Acts 1976, ch. 140, § 129.

177.086. Action by county court on commissioners’ report if no answer filed — Judgment — Hearing by court if answer filed. — Judgment. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1952, ch. 49, § 6; Acts 1962, ch. 219, § 1) was repealed by Acts 1976, ch. 140, § 129.

177.087. Time for filing and proceedings upon appeals to the circuit court and Court of Appeals. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1952, ch. 49, § 7; Acts 1954, ch. 243, § 2; Acts 1966, ch. 255, § 162(1)) was repealed by Acts 1976, ch. 140, § 129.

177.088. Payment of compensation into court. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1952, ch. 49, § 8, effective June 19, 1952) was repealed by Acts 1976, ch. 140, § 129.

177.089. Proceedings against conflicting claimants. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1952, ch. 49, § 9, effective June 19, 1952) was repealed by Acts 1976, ch. 140, § 129.

177.090. Acquisition of land along federal-aid highways for scenic beauty — Condemnation.

  1. The Department of Highways is hereby authorized to acquire and improve strips of land necessary for the restoration, preservation, and enhancement of scenic beauty within and adjacent to federal-aid highways of this state, including acquisition and development of publicly owned and controlled rest and recreation areas and sanitary and other facilities within or adjacent to the highway right-of-way reasonably necessary to accommodate the traveling public.
  2. The interest in any land authorized to be acquired and maintained under this section may be the fee simple or any lesser interest, as determined by the Department of Highways to be reasonably necessary to accomplish the purposes of this section. Such acquisition may be by gift, purchase, exchange, or condemnation.
  3. The acquisition through condemnation shall be in accordance with the provisions of the Eminent Domain Act of Kentucky.

History. Enact. Acts 1966, ch. 104, § 1; 1974, ch. 74, Art. IV, § 20(1); 1976, ch. 140, § 76.

Compiler’s Notes.

Former KRS 177.090 (4356t-12) was repealed by Acts 1950, ch. 27, § 3.

The Eminent Domain Act of Kentucky referred to in subsection (3) of this section is compiled as KRS 416.540 to 416.680 .

Research References and Practice Aids

Kentucky Law Journal.

Tippy, Roads and Recreation, IV. The Highway as Recreation, B. The Highway Beautification Act of 1965, 55 Ky. L.J. 799 (1967).

177.100. Condemnation procedure. [Repealed.]

Compiler’s Notes.

This section (4356t-12) was repealed by Acts 1950, ch. 27, § 3.

177.103. Definitions for KRS 177.106. [Repealed]

History. Enact. Acts 1962, ch. 202, § 1; repealed by 2021 ch. 148, § 2, effective June 29, 2021.

177.106. Definition — Highway encroachment prohibited without permit — Removal — Civil fines imposed and collected — Permissible use of fines.

  1. As used in this section, “encroachment” means any improvement to land including but not limited to buildings, fences, ditches, embankments, driveways, or signs, or any change from the original contour of land, that:
    1. Is constructed, created, or implemented under, on, or over the right-of-way of a state-maintained road; and
    2. May hinder or prevent use or maintenance of a road or right-of-way.
    1. A person shall not cause an encroachment or allow an encroachment to remain under, on, or over any part of the right-of-way of a state-maintained road unless that person has first obtained an encroachment permit from the Department of Highways.
    2. If the department determines that an encroachment, for which an encroachment permit has not been issued, interferes with the safe, convenient, and continuous use and maintenance of a road, the department shall issue to the responsible party a notice of violation and order to remove or relocate the encroachment within seven (7) days, at the responsible party’s expense.
    3. If the department orders the removal or change in location of any encroachment from the right-of-way and the responsible party fails to remove it or change its location within the time allotted in paragraph (b) of this subsection, the department shall:
      1. Cause the removal of the encroachment; and
      2. Recoup the cost of removal from the responsible party. Moneys recouped under this paragraph shall be deposited in the road fund.
  2. In addition to any payment required to cover the costs of removal pursuant to subsection (2)(c) of this section, any person who fails to obtain a permit as required by subsection (2)(a) of this section shall, upon issuance of a notice of violation under subsection (2)(b) of this section:
    1. Be subject to a civil fine of:
      1. Five hundred dollars ($500) for the first violation;
      2. One thousand dollars ($1,000) for the second violation within a three (3) year period; and
      3. Two thousand dollars ($2,000) for a third or subsequent violation within a three (3) year period;
    2. After a third violation within a three (3) year period, be prohibited from receiving an encroachment permit from the department for a period of six (6) months, from the date of notice of the third violation; and
    3. Be responsible for payment, within twenty-four (24) hours of notice from the department, for any safety measures determined to be necessary by the department.
  3. Any civil fines imposed pursuant to subsection (3)(a) of this section shall be:
    1. Collected by the municipality in which the violation occurred; and
    2. Used by that municipality for public safety or infrastructure purposes.

History. Enact. Acts 1962, ch. 202, § 2; 2021 ch. 148, § 1, effective June 29, 2021.

NOTES TO DECISIONS

Analysis

1.Warning of Encroachment.

Where the Department of Highways built a road under the plaintiff’s coal chute and permitted the chute to remain intact and no change in the grade or elevation occurred after the building of the road, the plaintiff was not contributorily negligent for not posting warning notices. Tar Heel Coals, Inc. v. Turner Elkhorn Mining Co., 448 S.W.2d 385, 1969 Ky. LEXIS 56 ( Ky. 1969 ).

2.Refusal of Permit.

The constitutional restrictions against the taking of property without compensation have no application to the situation where the highway department refuses to allow an abutting property owner to build a structure over the highway. Commonwealth, Dep't of Highways v. Trimble, 451 S.W.2d 641, 1969 Ky. LEXIS 18 ( Ky. 1969 ).

3.Violation of Statute as Negligence.

Summary judgment was properly granted to the defendant in an action arising from an accident in which the driver of a fire department water truck was killed when he lost control of the truck and collided with a tree on the defendant’s property, notwithstanding that the defendant had been ordered to remove the tree in conjunction with an application by the defendant to construct a driveway, as the failure to remove the tree did not cause the accident. Estate of Wheeler v. Veal Realtors & Auctioneers, Inc., 997 S.W.2d 497, 1999 Ky. App. LEXIS 91 (Ky. Ct. App. 1999).

Notes to Unpublished Decisions

Analysis

0.5.Applicability.

Unpublished decision: Statute did not apply to the subcontractor in its role as a subcontractor construction company, and the subcontractor thus had no obligations under the statute, because the statute spoke only to a permittee's obligations and the subcontractor was not a permittee. Renaissance/Valley Farms, LLC v. T&C Contr., Inc., 614 Fed. Appx. 805, 2015 FED App. 0400N, 2015 U.S. App. LEXIS 9451 (6th Cir. Ky. 2015 ).

3.Violation of Statute as Negligence.

Unpublished decision: Claim for negligence per se failed because the statute applied only to encroachment permit holders and not to subcontracting construction companies, the subcontractor did not have any obligations pursuant to the statute, and the subcontractor did not violate the statute. Renaissance/Valley Farms, LLC v. T&C Contr., Inc., 614 Fed. Appx. 805, 2015 FED App. 0400N, 2015 U.S. App. LEXIS 9451 (6th Cir. Ky. 2015 ).

Opinions of Attorney General.

The highway department cannot arbitrarily or unreasonably refuse to issue an encroachment permit sought under this section. OAG 71-245 .

Although the location of newspaper vending machines on city, county and state roads would constitute a purpresture since they are there without public authority, there would be no encroachment as envisioned by this section. OAG 77-260 .

Where a husband and wife deeded certain lands to the state in fee simple for the benefit and use of the Department of Highways, in contemplation of the construction and maintenance of a road, and where the state’s title to the road and maintenance responsibility were never transferred to the county in which the road was located, but the state and the county maintained the road for several years, only the state had the right to permit a gas company to run a gas pipeline along the subject road right-of-way, since this section and KRS 416.140 , which control, are in pari materia and do not conflict, since the right to grant permissive use of a state highway must be expressed in terms of a highway encroachment permit pursuant to this section and since, under KRS 416.140 , the location of such gas lines would, under a permit, be subject to the reasonable direction and regulation of the Bureau (now Department) of Highways. OAG 81-183 .

Transportation and Tourism Interagency Committee

177.107. Transportation and Tourism Interagency Committee — Purpose.

The Transportation and Tourism Interagency Committee is established to foster close collaboration between the Tourism, Arts and Heritage Cabinet and the Transportation Cabinet on policies that affect the tourism industry and to place strong emphasis on the coordination of mutual interests such as highway signage, scenic byways, highway safety, and concern for the Commonwealth’s beauty and heritage.

History. Enact. Acts 1998, ch. 334, § 1, effective July 15, 1998; 2005, ch. 95, § 40, effective June 20, 2005; 2009, ch. 16, § 54, effective June 25, 2009.

177.108. Membership of Transportation and Tourism Interagency Committee — Compensation — Officers — Meetings — Proxy voting.

  1. The Transportation and Tourism Interagency Committee shall be composed of thirteen (13) members or their official appointed designees, as follows:
    1. Six (6) members appointed by the secretary of the Tourism, Arts and Heritage Cabinet;
    2. Six (6) members appointed by the secretary of the Transportation Cabinet; and
    3. One (1) member appointed by the executive director of the Kentucky Heritage Council.
  2. Committee members shall receive no compensation for their services, but shall be entitled to reimbursement for all reasonable expenses necessarily incurred in connection with the performance of their duties and functions as committee members.
  3. The committee shall elect its chair and vice chair from representatives of the Tourism, Arts and Heritage and Transportation Cabinets for a term of one (1) year. The vice chair shall succeed the chair. The chair shall alternately be a representative of the Tourism, Arts and Heritage and Transportation Cabinets.
  4. The committee shall meet upon the call of the chair and upon the request of the secretary of the Tourism, Arts and Heritage Cabinet or the secretary of the Transportation Cabinet.
  5. A committee member may appoint a proxy for an individual meeting, delegating to the proxy the privilege of voting on any issue. The proxy appointment shall be in writing.

History. Enact. Acts 1998, ch. 334, § 2, effective July 15, 1998; 2005, ch. 95, § 41, effective June 20, 2005; 2009, ch. 16, § 55, effective June 25, 2009.

177.109. Duties and responsibilities.

The Transportation and Tourism Interagency Committee shall have but not be limited to the following duties and responsibilities:

  1. Review Kentucky’s signage laws, administrative regulations, and policies implementing the federal “Manual on Uniform Traffic Control Devices” and submit any proposed revisions to the secretary of the Transportation Cabinet;
  2. Seek public comment on Kentucky’s signage laws, administrative regulations, and policies;
  3. Advise the Transportation Cabinet on the scenic byways and highways program;
  4. Review and make recommendations on requests for highway signage from tourism-related entities;
  5. Coordinate development of the tourism information potential of welcome centers and rest areas through such means as interactive videos, information kiosks, and highway advisory radio transmitters, as well as other innovative methods which may be identified by the committee;
  6. Monitor developments across the United States relating to billboards and official signs;
  7. Report to the secretary of the Transportation Cabinet and to the secretary of the Tourism, Arts and Heritage Cabinet on issues of mutual interest to the cabinets;
  8. Serve as an advisory committee on issues identified by the secretary of the Transportation Cabinet and secretary of the Tourism, Arts and Heritage Cabinet; and
  9. Report committee recommendations to the secretary of the Transportation Cabinet, the secretary of the Tourism, Arts and Heritage Cabinet, the secretary of the Education and Labor Cabinet, and the secretary of the Executive Cabinet.

History. Enact. Acts 1998, ch. 334, § 3, effective July 15, 1998; 2005, ch. 95, § 42, effective June 20, 2005; 2006, ch. 211, § 115, effective July 12, 2006; 2009, ch. 11, § 59, effective June 25, 2009; 2009, ch. 16, § 56, effective June 25, 2009; 2022 ch. 236, § 91, effective July 1, 2022.

Railroad Crossings

177.110. Railroad crossings — Construction of KRS 177.120 to 177.210.

  1. The provisions of KRS 177.120 to 177.210 shall not apply to any railroad lines or tracks constructed across primary roads after March 23, 1926.
  2. Where railroad lines or tracks constructed after March 23, 1926 cross any primary road, the department shall determine the character of the crossing to be constructed by the railroad company, and the cost of such crossings shall be paid for by the railroad company.

History. 4356z-9.

Research References and Practice Aids

Kentucky Law Journal.

Richardson, Acquisition of Right of Way for Highway Purposes in Kentucky — Right of Eminent Domain and Just Compensation, 36 Ky. L.J. 159 (1948).

177.120. Department may order elimination of grade crossings or substitution — Standards to be set by administrative regulations — Closure of grade crossings.

  1. Whenever the department considers it necessary for the public safety, it may order any railroad company owning or operating a railroad in this state, to eliminate any grade crossing or change any existing overhead or underpass structure where any public road crosses the railroad tracks of the company. The department may determine whether a substitute crossing should be established and if so, the location of the crossing to be substituted, and whether it shall pass over or under the railroad tracks or intersect them at grade.
  2. In accordance with this section, the department shall promulgate administrative regulations by December 1, 1992, that contain standards governing the closure of public grade crossings. In adopting standards, the department shall request and consider written comments from affected local governments and shall consider that the number of redundant and inherently dangerous grade crossings in this state should be reduced and that public safety will be enhanced by reducing the number of redundant and inherently dangerous grade crossings.
  3. On or before July 1, 1993, and on or before July 1 of each of the next four (4) years, and as necessary thereafter, the department shall compose a list of grade crossings proposed to be closed. The list shall be developed by applying the standards set forth in the administrative regulations adopted under subsection (2) of this section. Grade crossings that are part of an abandonment, closing, or removal shall not be included in the list. The department shall notify the public officials having the necessary authority and the railway companies operating the railroads of the proposed closures. Either affected party may request a public hearing, and if requested, the department shall hold a public hearing and apply in its determination the information gained at the public hearing and administrative regulations developed under subsection (2) of this section. If after the hearing the department determines that closure is warranted, it may order the crossing closed.
  4. If a request for a hearing on a particular crossing is not received within thirty (30) days of notice of the opportunity for a public hearing advertised pursuant to the requirements of KRS Chapter 424, the department shall order the crossing closed.

History. 4356z-1; 4356z-10; 1992, ch. 229, § 6, effective July 14, 1992; 1994, ch. 195, § 2, effective July 15, 1994.

NOTES TO DECISIONS

1.Application.

This section has no application to the closing or obstructing of a railroad crossing, but only applies when an overhead or underpass is substituted for a grade crossing. McCreary County Fiscal Court v. Roberts, 292 Ky. 527 , 166 S.W.2d 977, 1942 Ky. LEXIS 112 ( Ky. 1942 ).

KRS 93.280 (now repealed) and this section did not apply to permit county to enjoin appellee from laying tracks across roads at grade level where railroad planned to construct 5.75 miles of track that would cross three roads within county as such roads were county roads and not part of the primary road system of the state nor within the corporate limits of a first class city. Jefferson County v. Louisville & N. R. Co., 245 S.W.2d 611, 1951 Ky. LEXIS 1264 ( Ky. 1951 ).

177.130. Hearing — Order — Plans, specifications, and estimates of cost.

If the department finds that a crossing proposed for vacation should be replaced with another grade crossing or a grade separation, it shall give at least ten (10) days’ notice by certified mail, return receipt requested, to the railroad company and to the chief executive officer of the affected unit of local government of a public hearing to be held at a time and place stated in the notice. At the public hearing, the department shall consider whether or not the proposed grade separation or substitute crossing is reasonably necessary and the most advantageous method of enhancing the public convenience and necessity. If the department finds that the grade separation or substitute crossing is reasonably necessary, it shall make an order to that effect and furnish a copy thereof by certified mail, return receipt requested, to the railroad company and to the chief executive officer of the affected unit of local government. The order shall specify the location of the crossing to be substituted and whether it shall pass over or under the railroad tracks or intersect them at grade, the width of the crossing, and the angle at which the crossing shall meet and converge into the roadbed on either side of the railroad tracks. The order may direct the railroad company to prepare plans, specifications, and estimates of cost for the grade separation or substitute crossing in accordance with the general plan prescribed by the order. The order may provide that the plans, specifications, and estimates of cost shall be prepared by the department.

History. 4356z-2: amend. Acts 1974, ch. 74, Art. IV, § 20(1); 1974, ch. 315, § 21; 1980, ch. 114, § 29, effective July 15, 1980; 1992, ch. 229, § 7, effective July 14, 1992; 1996, ch. 318, § 61, effective July 15, 1996.

177.140. Railroad company to present plans and estimates of cost.

Within ninety (90) days after the entry of an order directing a grade separation or change, and the preparation of plans, specifications, and estimates of cost by the railroad company, the railroad company shall present to the department plans, specifications, and estimates of cost for the grade separation or change, including the necessary approaches thereto.

History. 4356z-3.

177.150. Final hearing — Notice — Final order — Waiver of proceedings — Appeal.

  1. After receipt of the plans, specifications, and estimates of cost from the railroad company, the department shall give at least ten (10) days’ notice by certified mail, return receipt requested, to the railroad company of a time and place for a conference with respect to the grade separation or change. If the department elects to prepare plans, specifications, and estimates of cost, it shall furnish copies thereof to the railroad company prior to or at the time it gives notice of the conference. At the conference, the department shall approve or modify the plans and specifications and shall consider and determine the method of doing the work, whether by the railroad company or by the department, or partly by one and partly by the other, and whether by contract or by the employees of the department or the railroad company, or both, or by any combination of these methods, and if by contract, the method and manner of advertising for bids, the time and place of opening the bids, the time when work shall be begun and completed, and all similar matters of an administrative nature. The department shall embody its conclusions in an order, a copy of which shall be sent by certified mail, return receipt requested, to the railroad company.
  2. The department and any railroad company may agree by contract as to the method of eliminating any grade crossing or changing any existing overhead or underpass structure. In event of an agreement, all notices, hearings, and proceedings shall be deemed to have been waived, and the work of eliminating the grade crossing or making the change shall be performed in accordance with the terms of the contract, with the same effect as though the work was being performed pursuant to a final order of the department.
  3. Any person aggrieved by an order issued pursuant to subsection (1) of this section may appeal to the department, and upon appeal an administrative hearing shall be conducted in accordance with KRS Chapter 13B.

History. 4356z-4: amend. Acts 1974, ch. 74, Art. IV, § 20(1); 1974, ch. 315, § 22; 1980, ch. 114, § 30, effective July 15, 1980; 1996, ch. 318, § 62, effective July 15, 1996.

177.160. Rejection of bids — Department may do work.

  1. The department may by supplemental orders reject or order the rejection of all bids submitted for the work, or any part thereof, and require a readvertisement for bids. The department may reject all bids and elect to do the work itself, or partly by itself and by the railroad company, or by contractors, or by a combination of these methods. If the department elects to do the work itself there shall not be charged to the railroad company any sum in excess of that it would have been required to pay had the contract been let to the lowest bidder.
  2. In all cases where the work is let by the railroad company on contract, the work shall be done under the general supervision of the department.

History. 4356z-5.

177.170. Division of costs — Payment.

  1. The cost of preparing the plans, specifications and estimates of cost and of advertising for bids shall be paid wholly by the railroad company. The state shall pay one-half (1/2) of the cost of the work within the right-of-way lines of the railroad company, extended across the highway, and the railroad company shall pay the other one-half (1/2) of the cost of the work lying within said lines. The department shall pay the entire cost of all work lying beyond the right-of-way lines of the railroad.
  2. As the work progresses the department shall furnish to the railroad company, and the railroad company shall furnish to the department, a monthly statement showing in detail all amounts expended in connection with the work. On or about the fifteenth of each month the state highway engineer shall prepare a statement showing the total amount expended to the close of the preceding month, the amount paid or expended by each party up to that time, and the amount due from the department to the railroad company or from the railroad company to the department. Upon receipt of the statement each party shall pay to the other the amounts shown to be due thereby.
  3. All payments made on such monthly statements shall be considered only payments on account, and upon final completion of the work the state highway engineer shall prepare and furnish to the railroad company a statement showing the total cost of the work, the amount paid or expended by the department or the railroad company, and the amount due from one to the other. Each party shall be afforded reasonable opportunities to verify the statements of expenditures by the other, and the balance due as certified by the state highway engineer in his final statement shall be paid by one (1) party to the other promptly upon receipt of such final statement.
  4. The work lying within the right-of-way of the railroad shall be maintained at the expense of the railroad company, but the railroad company shall not be required to keep up the surface of the roadbed of the highway.

History. 4356z-6; 4356z-11.

Research References and Practice Aids

ALR

Constitutional power to compel railroad company to relocate or reconstruct highway crossing or to pay or contribute to expense thereof. 55 A.L.R. 660; 62 A.L.R. 815; 109 A.L.R. 768.

177.180. Highway engineer to approve contracts.

All contracts let by the railroad company under KRS 177.120 to 177.210 shall have the approval of the state highway engineer, in writing, indorsed on the contract.

History. 4356z-8.

177.190. Appeal by railroad company to Circuit Court.

  1. Any railroad company dissatisfied with a final order of the department directing the elimination of any grade crossing or change of existing overhead or underpass structure, or any order modifying or amending the final order may appeal by filing a petition in the clerk’s office of the Franklin Circuit Court in accordance with KRS Chapter 13B.
  2. On the hearing of the appeal, the Circuit Court shall determine whether the elimination of the grade crossing, or the change in existing overhead or underpass structure, is reasonably necessary for the safety of the traveling public, and whether the plans and specifications prescribed by the order of the department are reasonably adequate to provide safety of operation for the trains of the railroad company, its employees and the public, and make reasonably adequate provisions for the future development of the railroad company’s facilities.
  3. If the court finds from the evidence that the elimination of the grade crossing or change in existing overhead or underpass structure is not reasonably necessary for the safety of the traveling public, it shall, by final judgment, enjoin the department from enforcing its final order.
  4. If the court finds from the evidence that the elimination of the grade crossing or change in existing overhead or underpass structure is reasonably necessary for the safety of the traveling public, it shall, by final judgment, either order the railroad company to proceed with the work in accordance with the final order of the department, or in accordance with other plans and specifications prescribed by the court.

History. 4356z-7: amend. Acts 1974, ch. 74, Art. IV, § 20(1); 1976, ch. 62, § 93; 1996, ch. 318, § 63, effective July 15, 1996.

177.200. Appeal to Court of Appeals.

Either the department or the railroad company affected by the final judgment of the Circuit Court may appeal to the Court of Appeals in accordance with the Rules of Civil Procedure.

History. 4356z-7: amend. Acts 1960, ch. 104, § 11; 1974, ch. 74, Art. IV, § 20(1); 1976, ch. 62, § 94.

177.210. Department may bring action to enforce order.

If any railroad company fails to comply with any order of the department issued under authority of KRS 177.120 to 177.210 , the department may cause to be instituted in the Franklin Circuit Court, in the name of the state, an action to compel compliance with the order by mandatory process of the court.

History. 4356z-12.

Limited Access Facilities

177.220. Definition of “limited access facility.”

For the purpose of KRS 177.220 to 177.310 , a limited access facility is defined as a highway or street especially designed for through traffic, and over, from or to which owners or occupants of abutting land or other persons have no right or easement or only a limited right or easement of access, light, air, or view by reason of the fact that their property abuts upon such limited access facility or for any other reason. Such highways or streets may be parkways, from which trucks, buses, and other commercial vehicles shall be excluded; or they may be freeways open to use by all customary forms of street and highway traffic.

History. Enact. Acts 1946, ch. 225, § 2.

NOTES TO DECISIONS

1.Designation.

Where highway bypass was designated a limited access facility before it was built, it was such although there were several intersections at grade level and no under or over passes and so billboards could be removed therefrom. Lunsford v. Ward, 411 S.W.2d 39, 1967 Ky. LEXIS 454 ( Ky. 1967 ).

Cited:

Guthrie v. Curlin, 263 S.W.2d 240, 1953 Ky. LEXIS 1238 ( Ky. 1953 ).

Opinions of Attorney General.

In view of Regulations 603 KAR 5:020 and 5:025 which prohibit pedestrian travel and hitchhiking on a fully controlled limited access highway, hitchhikers on interstate highways may be prosecuted under KRS 177.990 . OAG 75-558 .

Research References and Practice Aids

Kentucky Law Journal.

Kuehn, Loss of Access — A Right to Be Compensated, 60 Ky. L.J. 727 (1971).

177.230. Establishment of limited access facilities — Regulation of use.

The highway authorities of the state, counties, cities, and towns, acting alone or in cooperation, with each other or with any federal, state, or local agency or any other state having authority to participate in the construction and maintenance of highways, are hereby authorized to plan, designate, establish, regulate, vacate, alter, improve, maintain, and provide limited access facilities for public use wherever such authority or authorities are of the opinion that traffic conditions, present or future, will justify such special facilities: provided, that within cities such authority shall be subject to such municipal consent as may be provided by law. Said highway authorities of the state, counties, cities, and towns, in addition to the specific powers granted in KRS 177.220 to 177.310 , shall also have and may exercise, relative to limited access facilities, any and all additional authority now or hereafter vested in them relative to highways or streets within their respective jurisdictions. Said units may regulate, restrict, or prohibit the use of such limited access facilities by the various classes of vehicles or traffic in a manner consistent with KRS 177.220 .

History. Enact. Acts 1946, ch. 225, § 3; 2019 ch. 44, § 25, effective June 27, 2019.

NOTES TO DECISIONS

1.Removal of Advertising Signs.

Where bypass was designated a limited access highway before it was constructed even though a few abutting property owners were allowed access to it the commissioner could not be enjoined from removing advertising signs erected and maintained on property adjacent to the bypass. Lunsford v. Ward, 411 S.W.2d 39, 1967 Ky. LEXIS 454 ( Ky. 1967 ).

Cited:

Guthrie v. Curlin, 263 S.W.2d 240, 1953 Ky. LEXIS 1238 ( Ky. 1953 ); Sturgill v. Commonwealth, Dep’t of Highways, 384 S.W.2d 89, 1964 Ky. LEXIS 79 ( Ky. 1964 ).

Opinions of Attorney General.

In view of Regulations 603 KAR 5:020 and 5:025 which prohibit pedestrian travel and hitchhiking on a fully controlled limited access highway, hitchhikers on interstate highways may be prosecuted under KRS 177.990 . OAG 75-558 .

177.240. Design of facilities — Regulation of access.

The highway authorities of the state, county, city, and town are authorized to so design any limited access facility and to so regulate, restrict, or prohibit access as to best serve the traffic for which such facility is intended, and its determination of such design shall be final. In this connection, such highway authorities are authorized to divide and separate any limited access facility into separate roadways by the construction of raised curbings, central dividing sections, or other physical separations, or by designating such separate roadways by signs, markers, stripes, and the proper lane for such traffic by appropriate signs, markers, stripes, and other devices. No person shall have any right of ingress or egress to, from, or across limited access facilities to or from abutting lands, except at such designated points at which access may be permitted, upon such terms and conditions as may be specified from time to time.

History. Enact. Acts 1946, ch. 225, § 4; 1984, ch. 213, § 1, effective July 13, 1984; 2006, ch. 173, § 27, effective July 12, 2006; 2019 ch. 44, § 26, effective June 27, 2019.

NOTES TO DECISIONS

Cited:

Keck v. Manning, 313 Ky. 433 , 231 S.W.2d 604, 1950 Ky. LEXIS 897 ( Ky. 1950 ); Sturgill v. Commonwealth, Dep’t of Highways, 384 S.W.2d 89, 1964 Ky. LEXIS 79 ( Ky. 1964 ).

Opinions of Attorney General.

This section pinpoints the sound discretion vested in the applicable “highway authorities”; and it stresses that such authorities administrative or executive action, as such, is final. It was not intended to prohibit some subsequent change in access after construction. OAG 83-118 .

Under KRS 175.450(9), the turnpike authority, acting in concert with the department of highways, has the authority to grant additional access points on a turnpike. However, such a decision, as a sound exercise of discretion, must be on a case-by-case basis, and be based upon the general public’s best interest in terms of peace, health, safety, convenience, and general and economic welfare; such a decision for additional access points must be subject to available funding of construction and maintenance, and must in no way compromise or lessen in any way the rights of bondholders involved in the original turnpike construction. OAG 83-118 .

177.250. Acquisition of property and property rights — Options to acquire — Administrative regulations.

  1. For the purposes of KRS 177.220 to 177.310 , the highway authorities of the state, county, or city may acquire private or public property and property rights for limited access facilities and service roads, including rights of access, air, view, and light, by gift, devise, purchase, or condemnation in the same manner as such units are authorized by law to acquire property or property rights in connection with highways and streets within their respective jurisdiction. Except as provided in subsection (2) of this section, all property rights acquired under the provisions of KRS 177.220 to 177.310 shall be in fee simple. In connection with the acquisition of property or property rights for any limited access facility or portion thereof, or service road in connection therewith, the state, county, or city highway authority may, in its discretion, acquire an entire lot, block, or tract of land, if by so doing, the interests of the public will be best served, even though said entire lot, block, or tract is not immediately needed for the right-of-way proper.
  2. A city, county, or urban-county independently, or any combination of a city, county, or urban-county that have entered into an interlocal cooperative agreement under KRS 65.210 to 65.300 , may purchase options to acquire property or property rights on highways or streets within their respective jurisdictions if the property or property rights to be acquired are for highway projects included in:
    1. The most recent twenty (20) year statewide transportation plan adopted by the Transportation Cabinet and submitted to the Federal Highway Administration;
    2. The most recent six (6) year road plan enacted by the General Assembly;
    3. The most recent long-range transportation plan adopted by a metropolitan planning organization and submitted to the Transportation Cabinet; or
    4. The most recent recommendations of an area development district transportation committee that have been submitted to the Transportation Cabinet.
  3. The secretary of the Transportation Cabinet shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish guidelines governing the purchase of options under subsection (2) of this section.

History. Enact. Acts 1946, ch. 225, § 5; 1966, ch. 255, § 163; 1998, ch. 131, § 1, effective July 15, 1998; 2009, ch. 78, § 40, effective June 25, 2009.

NOTES TO DECISIONS

1.Right of Condemnation.

State was entitled to condemn land for a ramp leading to motel from a nonaccess highway, the controlling question being whether or not the public has a right to use the ramp upon the same terms as the person at whose instance it was established. Sturgill v. Commonwealth, Dep't of Highways, 384 S.W.2d 89, 1964 Ky. LEXIS 79 ( Ky. 1964 ).

2.Evaluation.

The land must be valued in condemnation cases on the basis of its use at the time of taking unless it can be shown that there is an expectation or probability of other uses in the near future which would augment its value. Sloan v. Commonwealth, Dep't of Highways, 405 S.W.2d 294, 1966 Ky. LEXIS 253 ( Ky. 1966 ).

3.Noncompensatory Factors.

Loss of some access to the property is not compensable as long as the owners retain reasonable means of access. Sloan v. Commonwealth, Dep't of Highways, 405 S.W.2d 294, 1966 Ky. LEXIS 253 ( Ky. 1966 ).

4.Determination of Necessity.

While the right to condemn for access roads was incident to the right to condemn for a main highway, access roads were not so unimportant and trivial that land could be condemned for them without an official determination of necessity. Commonwealth, Dep't of Highways v. Salmon Corp., 489 S.W.2d 32, 1972 Ky. LEXIS 25 ( Ky. 1972 ).

Cited:

Lunsford v. Ward, 411 S.W.2d 39, 1967 Ky. LEXIS 454 ( Ky. 1967 ); Commonwealth, Dep’t of Transp., Bureau of Highways v. Knieriem, 707 S.W.2d 340, 1986 Ky. LEXIS 238 ( Ky. 1986 ).

Research References and Practice Aids

Kentucky Law Journal.

Richardson, Acquisition of Right of Way for Highway Purposes in Kentucky — Right of Eminent Domain and Just Compensation, 36 Ky. L.J. 159 (1948).

Collateral References.

ALR

Power to condemn abutting owner’s right of access to limited access highway or street. 43 A.L.R.2d 1073.

Abutting owner’s right to damages for limitation of access caused by conversion of conventional road into limited-access highway. 42 A.L.R.3d 13.

Measure and elements of damage for limitation of access caused by conversion of conventional road into limited-access highway. 42 A.L.R.3d 148.

177.260. Precedence of condemnation cases in courts.

Court proceedings necessary to acquire property or property rights for purposes of KRS 177.220 to 177.310 shall take precedence over all other causes not involving the public interest in all courts, to the end that the provision of limited access facilities may be expedited.

History. Enact. Acts 1946, ch. 225, § 6.

Opinions of Attorney General.

Where a city deeded its publicly owned right-of-way along a city street to the department of highways, the department could not assume the responsibility for, or the costs of relocating sewer lines and laterals located within the public way. OAG 60-498 .

177.270. Use of existing facilities — Grade crossing elimination — Public way connections.

The highway authority of the state, county, city, and town may designate and establish limited access highways as new and additional facilities or may designate and establish an existing street or highway as included within a limited access facility. The state or any of its subdivisions shall have authority to provide for the elimination of intersections at grade of limited access facilities with existing state and county roads, and city and town streets, by grade separation or service road, or by closing off such roads and streets at the right-of-way boundary line of such limited access facility; and after the establishment of any limited access facility, no highway or street which is not part of said facility shall intersect the same at grade. No city or town street, county or state highway or other public way shall be opened into or connected with any such limited access facility without the consent and previous approval of the highway authority in the state, county, city, or town having jurisdiction over such limited access facility. Such consent and approval shall be given only if the public interest shall be served thereby.

History. Enact. Acts 1946, ch. 225, § 7; 2019 ch. 44, § 27, effective June 27, 2019.

NOTES TO DECISIONS

1.Closing Public Road.

The Department of Highways has express authority under this section and KRS 177.430 and 177.440 to close a public road that crosses a turnpike or grade but the regular procedure for closing a county road under KRS 178.070 to 178.100 must be followed. Ex parte Commonwealth, Dep't of Highways, 291 S.W.2d 814, 1956 Ky. LEXIS 399 ( Ky. 1956 ).

177.280. Agreements of local governmental units respecting facilities.

The highway authorities of the state, city, county, and town are authorized to enter into agreements with each other, or with the federal government, respecting the financing, planning, establishment, improvement, maintenance, use, regulation, or vacation of limited access facilities or other public ways in their respective jurisdictions, to facilitate the purposes of KRS 177.220 to 177.310 .

History. Enact. Acts 1946, ch. 225, § 8; 2019 ch. 44, § 28, effective June 27, 2019.

177.290. Local service roads and streets.

In connection with the development of any limited access facility, the state, county, city, and town highway authorities are authorized to plan, designate, establish, use, regulate, alter, improve, maintain, and vacate local service roads and streets or to designate as local service roads and streets any existing road or street, and to exercise jurisdiction over service roads in the same manner as is authorized over limited access facilities under the terms of KRS 177.220 to 177.310 , if in their opinion such local service roads and streets are necessary or desirable. Such local service roads or streets shall be of appropriate design, and shall be separated from the limited access facility proper by means of all devices designated as necessary or desirable by the proper authority.

History. Enact. Acts 1946, ch. 225, § 9; 2019 ch. 44, § 29, effective June 27, 2019.

NOTES TO DECISIONS

Cited:

Keck v. Manning, 313 Ky. 433 , 231 S.W.2d 604, 1950 Ky. LEXIS 897 ( Ky. 1950 ).

177.300. Traffic rules on limited access facilities.

It is unlawful for any person (1) to drive a vehicle over, upon, or across any curb, central dividing section or other separation or dividing line on limited access facilities; (2) to make a left turn or a semicircular or U-turn except through an opening provided for that purpose in the dividing curb section, separation or line; (3) to drive any vehicle except in the proper lane provided for that purpose and in the proper direction and to the right of the central dividing curb, separation section, or line; (4) to drive any vehicle into the limited access facility from a local service road except through an opening provided for that purpose in the dividing curb, or dividing section or dividing line which separates such service road from the limited access facility proper.

History. Enact. Acts 1946, ch. 225, § 10.

177.305. Prevention of spillage from trucks hauling coal.

All trucks hauling coal on a fully controlled limited access highway shall be covered by a tarp or equivalent cover to prevent spillage.

History. Enact. Acts 1988, ch. 415, § 3, effective July 15, 1988.

177.310. Declaration of policy.

The legislature hereby finds, determines, and declares that KRS 177.220 to 177.310 is necessary for the immediate preservation of the public peace, health, and safety, and for the promotion of the general welfare.

History. Enact. Acts 1946, ch. 225, § 1.

177.315. Spacing of access control points on limited access facilities for those having limited rights or easement of access.

  1. As used in this section, “partial control of access” means the limited right or easement of access granted by the Transportation Cabinet under subsection (2) of this section.
  2. The Transportation Cabinet shall establish minimum spacing requirements for partial control of access to a limited access facility, and the manner that the access is to be provided, for the owners or occupants of land or other persons who have a limited right or easement of access under KRS 177.220 . Minimum spacing between access points shall be one thousand two hundred (1,200) feet in rural areas and six hundred (600) feet in urban areas.
  3. The Transportation Cabinet may change the spacing of access control points if:
      1. An owner or occupant of land abutting a limited access facility requests the cabinet for the change; or
      2. A local government requests the cabinet for the change; and
    1. The change in spacing of access points is supported by an engineering and traffic study approved by the state highway engineer.

History. Enact. Acts 1998, ch. 528, § 1, effective July 15, 1998; 2006, ch. 173, § 26, effective July 12, 2006.

177.317. Hal Rogers Parkway — Access control and spacing.

The Transportation Cabinet shall allow partial control of access on the Hal Rogers Parkway, between the junction with KY 192 and the junction with KY 80, and establish minimum spacing requirements and the manner in which the access is to be provided. Minimum access spacing under this section shall be no less than one thousand two hundred (1,200) feet.

History. Enact. Acts 2005, ch. 147, § 1, effective June 20, 2005; 2009, ch. 94, § 1, effective March 24, 2009.

Use of Gasoline Tax Revenues

177.320. Use of portion of gasoline tax revenues for secondary and rural roads, county roads and bridges and the Kentucky Transportation Center — Allocation of funds.

  1. Twenty-two and  two-tenths percent (22.2%) of all funds arising from the imposition  of taxes provided by KRS 138.220(1) and (2), 138.660(1) and  (2) and 234.320 shall  be set aside for the construction, reconstruction and maintenance  of secondary and rural roads and for no other purpose, and shall be  expended for said purposes by the Transportation Cabinet of the Commonwealth  of Kentucky according to the terms and conditions prescribed in KRS 177.330 to 177.360 .
  2. On or after July  1, 1980, eighteen and three-tenths percent (18.3%) of all funds arising  from the imposition of taxes provided by KRS 138.220(1) and (2), 138.660(1) and  (2), and 234.320 shall  be set aside for the construction, reconstruction and maintenance  of county roads and bridges provided by KRS 179.410 and 179.415 .
  3. All funds set  aside in subsection (2) of this section for the construction, reconstruction  and maintenance of county roads and bridges shall be allocated to  the county in accordance with the formula established in KRS 177.360(1) pursuant to KRS 179.410 .
  4. On or after July  1, 1986, one-tenth of one percent (0.1%) of all funds arising from  the imposition of taxes provided by KRS 138.220(1) and (2), 138.660 and 234.320 shall  be set aside for the purposes and functions of the Kentucky Transportation  Center as established by KRS 177.375 to 177.380 , except  that the receipts provided to the center by this subsection shall  not exceed one hundred ninety thousand dollars ($190,000) for any  fiscal year.

History. Enact. Acts 1948, ch. 46, § 1; 1972, ch. 61, § 10; 1974, ch. 291, § 1; 1980, ch. 188, § 132, effective July 1, 1980; 1980, ch. 218, § 9, effective July 1, 1980; 1982, ch. 265, § 10, effective April 1, 1982; 1984, ch. 350, § 3, effective July 13, 1984; 1986, ch. 174, § 8, effective July 1, 1986; 1986, ch. 330, § 1, effective July 15, 1986; 2005, ch. 173, Pt. XVII, § 3, effective July 1, 2005.

NOTES TO DECISIONS

Cited:

Opinions of Attorney General.

Rural and secondary fund money can be spent on a road which is a part of a county road system, as defined in KRS 178.010 , even though county road aid funds authorized by subsection (2) of this section (county roads and bridges) and 179.410 to 179.430 can be spent only on such county roads, since a “secondary and rural” road for purposes of fund distribution may include a county road, but a “county road” can be only a road meeting the definition under KRS 178.010 and 179.010(1). OAG 79-533 .

The term “secondary and rural” is broad enough to include “county roads,” but “county roads” are not necessarily “secondary and rural.” OAG 79-533 .

Where county fiscal court designated several county roads for repair under the Rural Secondary Road Fund and subsequently the state conferred with party patrons in the county and proceeded to change the list of county roads to be repaired and began repairing county roads without ever seeking or receiving authorization from the fiscal court, the state’s action was legal since the fiscal court was given a chance to recommend as to the project, but the Department of Rural Aid could not agree with the fiscal court. OAG 84-336 .

“County Roads” are public roads which have been formally accepted by the fiscal court of the county as a part of the county road system. OAG 85-73 .

Under the statutory definitions, a “secondary and rural” road for purposes of fund distribution by the state, under subsection (1) of this section, may include a “county road,” as well as a “secondary and rural road.” However, a “county road,” for purposes of fund distribution, under subsection (2) of this section, can only be a road meeting the definition of KRS 178.010(1)(b). OAG 85-73 .

A county cannot maintain a road not shown on a county road aid map (County Road Series Map) adopted by the fiscal court, unless such road was entitled to acceptance as a part of the county road system, and has been so accepted by the fiscal court; it is a rebuttable presumption that a road not shown on a County Road Series Map that has been formally adopted for a county, is not a “county road” within the meaning of KRS 178.010(1)(b). OAG 93-48 .

Costs of advertising an ordinance for adoption of a road as a county road, and the cost of preparing a deed in connection with conveying a right-of-way to the county, cannot be properly viewed as costs for “construction, reconstruction and maintenance” as used in subsection (2) of this section and therefore such costs cannot be paid for from county road aid funds. OAG 93-64 .

Where statute directs that an expense allowance shall be received by the county judge/executive, paying agency cannot accede to the request of the county judge/executive that such payment be instead made to the county treasury. OAG 94-67 .

Research References and Practice Aids

Cross-References.

Expenditure of state aid appropriations for rural highways, KRS 179.410 to 179.440 .

177.330. Consultation by Department of Rural and Municipal Aid with fiscal courts for selection of roads to be improved — Recommendations — Road through city with population of less than 3,000.

  1. At least once  in each calendar year, the Department of Rural and Municipal Aid,  through a duly authorized representative, shall consult with the fiscal  courts of the various counties for the purpose of receiving recommendations  from the fiscal courts for the selection of rural and secondary roads  lying within the counties for construction, reconstruction, or maintenance  under the Rural and Secondary Road Program as set forth in KRS 177.320(1). The Department of Rural and Municipal Aid may receive recommendations  from any citizen on the selection of rural and secondary roads for  construction, reconstruction, or maintenance under the Rural and Secondary  Road Program. The Department of Highways shall notify each county  fiscal court of the county roads that the department intends to construct,  reconstruct, or maintain in accordance with the provisions of KRS  Chapters 177 and 179.
  2. Where the construction  of a secondary or rural road through an incorporated city with a population  of less than three thousand (3,000) based upon the most recent federal  decennial census is necessary, as determined by the Department of  Rural and Municipal Aid, the road may be constructed, reconstructed,  or maintained at the discretion of the Department of Rural and Municipal  Aid.

History. Enact. Acts 1948, ch. 46, § 1; 1956 (2nd Ex. Sess.), ch. 4, § 1, effective June 26, 1956; 1984, ch. 350, § 4, effective July 13, 1984; 1996, ch. 238, § 2, effective July 15, 1996; 2005, ch. 98, § 7, effective June 20, 2005; 2009, ch. 13, § 10, effective June 25, 2009; 2014, ch. 92, § 249, effective January 1, 2015.

NOTES TO DECISIONS

1.Constitutionality.

Where an attack on this statute was based on the unconstitutionality of the delegation of authority to the commissioner of highways to determine what constituted rural roads and which of those roads would be improved, the court held the attack groundless because the power of the commissioner was only to determine priority schedules within each county and the complaining taxpayers did not assert any dissatisfaction with the priority schedule for improvement of rural or county roads within their county. Jefferson County v. King, 479 S.W.2d 880, 1972 Ky. LEXIS 320 ( Ky. 1972 ).

Opinions of Attorney General.

Under this section the state Department of Highways must consult with the fiscal courts of the various counties about secondary rural roads but under KRS 177.340 , if the county and state court agree on the matter, the state highway department has authority to construct, reconstruct, blacktop or maintain said roads under this section and KRS 177.340 . OAG 71-178 .

Reading KRS 177.340 and this section together, it is evident that the Department of Rural Aid is required to use its sound discretion in considering the county’s recommendations within the Department’s consideration of the development of a system of secondary highways, which may become a part of the state highway system, at the discretion of the Department of Highways. OAG 84-336 .

Under KRS 177.330 to 177.360 the Department of Rural Aid’s consulting with the particular fiscal court and the receiving of a recommendation from the fiscal court as to the proposed road project are mandatory; the Department is required to give the fiscal court’s recommendation due consideration. OAG 84-336 .

Where county fiscal court designated several county roads for repair under the Rural Secondary Road Fund and subsequently the state conferred with party patrons in the county and proceeded to change the list of county roads to be repaired and began repairing county roads without ever seeking or receiving authorization from the fiscal court, the state’s action was legal since the fiscal court was given a chance to recommend as to the project, but the Department of Rural Aid could not agree with the fiscal court. OAG 84-336 .

“Secondary and rural roads,” within the meaning of KRS 177.360 , are those roads lying outside of cities, towns and urban areas having a population of 2,500 or more, but do not include state or federal highways. OAG 85-73 .

The selection of secondary and rural roads for improvement in each county is made by agreement between the fiscal court and the Department of Highways, or if no agreement can be reached, then by the Department alone. OAG 85-73 .

Considering that the statutes permit the spending of Rural and Secondary Road Fund money on “county roads” (as defined by KRS 178.010 ), under the explicit terms of subsection (1) of this section, the Department of Rural and Municipal Aid and the fiscal court must come to an agreement in order that the Transportation Cabinet can proceed with a “county road” project, pursuant to this chapter and KRS Ch. 179. OAG 85-73 .

For the Department of Rural and Municipal Aid to construct or reconstruct or to do maintenance on a county road without any agreement with the fiscal court of that county would be in violation of this section. OAG 85-73 .

177.340. Selection of roads to be improved in case of disagreement with fiscal court — Roads become part of state highway system.

If, within thirty (30) days after consulting with a fiscal court, the Department of Rural and Municipal Aid and the fiscal court fail to agree on the selection of any rural and secondary roads for construction, reconstruction, or maintenance under the Rural and Secondary Road Program, the department may proceed toward the construction, reconstruction, or maintenance of any road, which, in its discretion, is essential to a system of secondary highways. Rural and secondary roads constructed, reconstructed, or maintained in accordance with an agreement between the affected county and the Department of Rural and Municipal Aid, or selected for construction, reconstruction, or maintenance by the Department of Rural and Municipal Aid, at its discretion, without agreement with the affected county, may become a part of the highway system of the Commonwealth of Kentucky at the discretion of the Department of Highways.

History. Enact. Acts 1948, ch. 46, § 1; 1956 (2nd Ex. Sess.), ch. 4, § 2; 1984, ch. 350, § 5, effective July 13, 1984; 1996, ch. 238, § 4, effective July 15, 1996; 2005, ch. 98, § 8, effective June 20, 2005; 2009, ch. 13, § 11, effective June 25, 2009.

NOTES TO DECISIONS

1.Constitutionality.

Where an attack on this statute was based on the unconstitutionality of the delegation of authority to the commissioner of highways to determine what constituted rural roads and which of those roads would be improved, the court held the attack groundless because the power of the commissioner was only to determine priority schedules within each county and the complaining taxpayers did not assert any dissatisfaction with the priority schedule for improvement of rural or county roads within their county. Jefferson County v. King, 479 S.W.2d 880, 1972 Ky. LEXIS 320 ( Ky. 1972 ).

Opinions of Attorney General.

Under KRS 177.360 , in the absence of an agreement with the fiscal court, the selection of any secondary or rural roads for construction, reconstruction or maintenance can be made by the state highway department pursuant to this section, in its discretion. OAG 71-298 .

Reading KRS 177.330 and this section together, it is evident that the Department of Rural Aid is required to use its sound discretion in considering the county’s recommendations within the department’s consideration of the development of a system of secondary highways, which may become a part of the state highway system, at the discretion of the Department of Highways. OAG 84-336 .

Where county fiscal court designated several county roads for repair under the Rural Secondary Road Fund and subsequently the state conferred with party patrons in the county and proceeded to change the list of county roads to be repaired and began repairing county roads without ever seeking or receiving authorization from the fiscal court, the state’s action was legal since the fiscal court was given a chance to recommend as to the project, but the Department of Rural Aid could not agree with the fiscal court. OAG 84-336 .

“Secondary and rural roads,” within the meaning of KRS 177.360 , are those roads lying outside of cities, towns and urban areas having a population of 2,500 or more, but do not include state or federal highways. OAG 85-73 .

The selection of secondary and rural roads for improvement in each county is made by agreement between the fiscal court and the Department of Highways, or if no agreement can be reached, then by the Department alone. OAG 85-73 .

177.350. Standards for construction and improvement of state-maintained secondary and rural roads — Studies — Surveys — Maps — Personnel — Equipment.

The Department of Rural and Municipal Aid may promulgate administrative regulations pursuant to KRS Chapter 13A to establish standards for the construction, reconstruction, maintenance, and improvement of rural and secondary roads in the Commonwealth of Kentucky. The department shall conduct studies, make surveys, prepare maps, employ personnel, and obtain equipment as may be necessary for the establishment and maintenance of an integrated system of secondary and rural roads in the Commonwealth of Kentucky.

History. Enact. Acts 1948, ch. 46, § 1; 1956 (2nd Ex. Sess.), ch. 4, § 3; 1984, ch. 350, § 6, effective July 13, 1984; 1996, ch. 238, § 3, effective July 15, 1996; 2005, ch. 98, § 9, effective June 20, 2005; 2009, ch. 13, § 12, effective June 25, 2009.

NOTES TO DECISIONS

1.Rental of Equipment.

Informal contracts for rental of road building equipment or machinery and operators therefor to be used under supervision of employees of department of highways for construction of secondary roads did not require advertisement for bids. Hall v. Commonwealth, 331 S.W.2d 272, 1959 Ky. LEXIS 3 ( Ky. 1959 ).

177.360. Allocation of funds for state-maintained roads — Apportionments to be made on basis of revenue estimates — Uniform financial information report required.

  1. Except as provided  in subsection (5) of this section, the Department of Rural and Municipal  Aid shall allocate the funds set apart under KRS 177.320(1) for construction, reconstruction, and maintenance of state-maintained  secondary and rural highways as follows:
    1. One-fifth (1/5)  shall be apportioned equally among the one hundred twenty (120) counties.
    2. One-fifth (1/5)  shall be apportioned among the one hundred twenty (120) counties on  the basis of the ratio which the rural population of each county bears  to the total rural population of the state. “Rural population”  as used here means the population in a county outside cities, towns,  and urban areas having a population of twenty-five hundred (2,500)  or more as shown by the most recent decennial census of the United  States Bureau of the Census, and county population shall be determined  by the most recent decennial census of the United States Bureau of  the Census.
    3. One-fifth (1/5)  shall be apportioned among the one hundred twenty (120) counties on  the basis of the ratio that the public road mileage outside of cities,  towns, and urban areas having a population of twenty-five hundred  (2,500) or more bears to the total mileage of such roads for the entire  state.
    4. Two-fifths (2/5)  shall be apportioned among the one hundred twenty (120) counties on  the basis of the ratio which the square-mile rural area of the county  bears to the total square-mile rural area of the state. “Rural  area” as used here means that area of the county outside of  cities, towns, and urban areas having a population of twenty-five  hundred (2,500) or more and shown by the most recent decennial census  of the United States Bureau of the Census.
  2. A sum not exceeding  six percent (6%) of the allocation provided by KRS 177.320(1) to each county shall be deducted at the beginning of each fiscal  year and adjusted quarterly to cover the maintenance, administrative,  engineering, and other costs of the program.
  3. Of the total  amount apportioned by the provisions of this section, a sum not exceeding  six percent (6%) may be deducted and placed by the Department of Rural  and Municipal Aid in a special emergency account to be expended at  the direction of the commissioner to meet unforeseen emergencies on  rural and secondary roads and bridges.
  4. Apportionments  as required by the provisions of this section shall be made on the  basis of revenue estimates supplied by the Finance and Administration  Cabinet and adjusted quarterly in accordance with the most recent  revision of the estimates by the Finance and Administration Cabinet.
  5. Any county eligible  to receive county road aid moneys in accordance with KRS 177.320 and  this section shall be required to submit a uniform financial information  report to the Department for Local Government in accordance with KRS 65.905 before  any payment of county road aid funds shall be made. The Department  for Local Government shall notify the Department of Rural and Municipal  Aid no later than March 1 annually of any county that has not submitted  a uniform financial information report. The Department of Rural and  Municipal Aid shall, upon notification by the Department for Local  Government, immediately suspend all county road aid moneys to the  county until the county complies with the provisions of KRS 65.900 to 65.925 and submits  the uniform financial information report to the Department for Local  Government. The Department for Local Government shall immediately  notify the Department of Rural and Municipal Aid to reinstate county  road aid moneys to any county affected by this subsection as soon  as the county submits the uniform financial information report.

History. Enact. Acts 1948, ch. 46, § 1; 1962, ch. 101; 1984, ch. 350, § 7, effective July 13, 1984; 1988, ch. 273, § 10, effective July 15, 1988; 1990, ch. 47, § 7, effective July 13, 1990; 1998, ch. 69, § 65, effective July 15, 1998; 2005, ch. 98, § 10, effective June 20, 2005; 2007, ch. 20, § 5, effective June 26, 2007; 2007, ch. 47, § 82, effective June 26, 2007; 2009, ch. 13, § 13, effective June 25, 2009; 2010, ch. 117, § 78, effective July 15, 2010.

Legislative Research Commission Note.

(6/26/2007). This section was amended by 2007 Ky. Acts chs. 20 and 47, which are in conflict. Under KRS 446.250 , Acts ch. 47, which was last enacted by the General Assembly, prevails.

NOTES TO DECISIONS

1.Secondary and Rural Roads.

“Secondary and rural roads” within the meaning of this section were those outside of cities, towns and urban areas having a population of 2,500 or more, and not state or federal highways. Jefferson County v. King, 479 S.W.2d 880, 1972 Ky. LEXIS 320 ( Ky. 1972 ).

2.Allocation.

Where complaining taxpayers argued that the formula for allocation violated sections 2, 3, 59 and 60 of the Kentucky Constitution as being arbitrary and discriminatory because it gave no weight to overall population or to number of cars per mile of rural roads, the court held that such factors were not so directly related to the accomplishment of the public purpose of improving and maintaining rural roads as to require their inclusion in the formula. Jefferson County v. King, 479 S.W.2d 880, 1972 Ky. LEXIS 320 ( Ky. 1972 ).

Cited:

Opinions of Attorney General.

Bureau (now department) of highways of county with an urban-county form of government should consult with the fiscal court in connection with the construction of county roads and with the Urban County Council on the Secondary and Rural Road Program. OAG 77-754 .

Where a county encompassing a major city has merged with that city to form an urban-county government, the allotment of county road aid pursuant to subsection (1)(b)-(d) of this section, can be accomplished through the designation by the urban-county government, pursuant to KRS 67A.050 of rural-urban areas and roads in rural and urban areas of the urban-county government; accordingly, allocation can be made based upon such an “urbanized boundary.” OAG 81-176 .

“Secondary and rural roads,” within the meaning of this section, are those roads lying outside of cities, towns and urban areas having a population of 2,500 or more, but do not include state or federal highways. OAG 85-73 .

177.365. Reservation of certain tax receipts for urban roads and streets — Definitions.

  1. On and after July 1, 1980, seven and seven-tenths percent (7.7%) of all amounts received from the imposition of the taxes provided for in KRS 138.220(1) and (2), 138.660(1) and (2) and 234.320 shall be set aside by the Finance and Administration Cabinet for the construction, reconstruction and maintenance of urban roads and streets and for no other purpose.
  2. As used in this section unless the context requires otherwise “construction,” “reconstruction,” and “maintenance” mean the supervising, inspecting, actual building, and all expenses incidental to the construction, reconstruction, or maintenance of a road or street, including planning, locating, surveying, and mapping or preparing roadway plans, acquisition of rights-of-way, relocation of utilities, lighting and the elimination of other hazards such as roadway grade crossings, and all other items defined in the Department of Highways, design, operations, and construction manuals.
  3. “Urban roads” mean all public ways lying within the limits of the unincorporated urban place as defined in KRS 81.015 , and as described by the Bureau of Census tracts.
  4. “Streets” mean all public ways which have been designated by the incorporated city as being city streets and said streets lying within the boundaries of an incorporated city.

History. Enact. Acts 1972, ch. 61, § 11; 1974, ch. 290, § 1; 1980, ch. 218, § 10, effective July 1, 1980; 1982, ch. 265, § 11, effective April 1, 1982; 1986, ch. 174, § 9, effective July 1, 1986; 1988, ch. 327, § 5, effective July 15, 1988; 2005, ch. 173, Pt. XVII, § 4, effective July 1, 2005.

Opinions of Attorney General.

Since § 230 of the Constitution clearly restricts the use of money derived from taxes on gasoline for highway purposes, any legislation directing the money to be used otherwise would be unconstitutional, and broadening a definition of the word “maintenance” to include any activity or project that would decrease cost and expenditures of repair on urban streets and highways would not surmount the constitutional barrier. OAG 78-144 .

Where funds disbursed by the state from various road use taxes are received by the city pursuant to KRS 177.369 , and the city places these funds in an interest-bearing special road fund account, the interest derived therefrom must be applied to the road-related purposes set forth in this section, Const., § 230 mandates this and since subsection (2) of KRS 177.369 narrowly restricts expenditures for the construction, reconstruction and maintenance of urban roads and streets. OAG 81-143 .

The funds received by the city under the municipal aid program are subject to the general mandate of Const., § 230 concerning road expenditures; KRS 177.369(2) further limits permissible expenditures of such funds to only the “purpose of construction, reconstruction and maintenance of urban roads and streets set forth in this section”; therefore, since a parking lot is not within the definition of “streets,” the city cannot expend its municipal aid funds to pave a public parking lot. OAG 82-492 .

Municipal road aid funds may be used for the repair, replacement and general maintenance of street lights on public streets. OAG 84-271 .

Since the sidewalk is generally considered to be part of the street, a city may expend portions of its municipal aid funds to construct, maintain and repair sidewalks and be within the statutory requirement that such funds be spent to construct and maintain its streets. OAG 84-271 .

The city may not use portions of its municipal aid funds to pay the utility expenses for the operation of its street lighting system; paying the utility bills from the municipal aid funds would go beyond the physical maintenance of the street lighting system. OAG 84-271 .

177.366. Allocation of municipal aid funds — Apportionments to be made on basis of revenue estimates — Uniform financial information report.

  1. Except as provided in subsection (8) of this section, on and after July 1, 1980, the Finance and Administration Cabinet shall allocate to each incorporated city and “unincorporated urban place” its pro rata share of the funds set apart for construction, reconstruction, and maintenance of urban roads and streets on the basis of the ratio which the population in the incorporated cities and in “unincorporated urban places” bears to the total population in incorporated cities and in “unincorporated urban places” of the state. “Unincorporated urban places” as used here, means an area as defined in KRS 81.015 , and any area outside of incorporated cities, which area has a population of 2,500 or more as shown by the most recent decennial census of the United States Bureau of the Census, and all populations shall be determined by the most recent decennial census of the United States.
  2. Any area which becomes incorporated after December 31, 1970, shall not be eligible to participate in the Municipal Aid Program until the beginning of the second fiscal year following its incorporation and population certification. It shall be the responsibility of the newly incorporated area to provide the Finance and Administration Cabinet with documentation from the United States Bureau of the Census showing the population of the newly incorporated area as it existed at the time of the last decennial census.
  3. In the event the newly incorporated area cannot obtain a population count from the Bureau of the Census, it shall not be eligible to participate in the Municipal Aid Program until the next decennial census.
  4. If an incorporated city, whose incorporation took place prior to December 31, 1970, annexes additional area, the population of the annexed area will not be counted in the allocation of municipal aid funds until the beginning of the second fiscal year following annexation and population certification.
  5. It shall be the responsibility of the incorporated city to provide the Finance and Administration Cabinet with documentation from the United States Bureau of the Census showing the population for the annexed area as it existed at the time of the last decennial census.
  6. If the incorporated area cannot obtain a population count from the Bureau of the Census, the annexed area’s population shall not be eligible to be counted in the distribution of the municipal aid fund. However, the streets included in the annexed areas shall be eligible to receive work through this program.
  7. Apportionments as required by the provisions of this section shall be made on the basis of revenue estimates supplied by the Office of State Budget Director and shall be adjusted quarterly in accordance with the most recent revision of the estimates by the Office of State Budget Director.
  8. Any local government eligible to receive municipal road aid moneys pursuant to KRS 177.365 to 177.369 shall be required to submit a uniform financial information report to the Department for Local Government pursuant to KRS 65.905 before any payment of municipal road aid funds shall be made. The Department for Local Government shall notify the Finance and Administration Cabinet no later than March 1 annually of any local government that has not submitted a uniform financial information report. The Finance and Administration Cabinet shall, upon notification by the Department for Local Government, immediately suspend all municipal road aid moneys to the local government until the local government complies with the provisions of KRS 65.900 to 65.925 and submits the uniform financial information report to the Department for Local Government. The Department for Local Government shall immediately notify the Finance and Administration Cabinet to reinstate municipal road aid moneys to any local government affected by this subsection as soon as the local government submits the uniform financial information report.

History. Enact. Acts 1972, ch. 61, § 12; 1974, ch. 178, § 1; 1980, ch. 218, § 11, effective July 1, 1980; 1988, ch. 273, § 11, effective July 15, 1988; 1988, ch. 327, § 6, effective July 15, 1988; 1990, ch. 47, § 6, effective July 13, 1990; 1998, ch. 69, § 66, effective July 15, 1998; 2000, ch. 46, § 26, effective July 14, 2000; 2007, ch. 20, § 6, effective June 26, 2007; 2007, ch. 47, § 83, effective June 26, 2007; 2010, ch. 117, § 79, effective July 15, 2010.

Legislative Research Commission Note.

(6/26/2007). This section was amended by 2007 Ky. Acts chs. 20 and 47, which are in conflict. Under KRS 446.250 , Acts ch. 47, which was last enacted by the General Assembly, prevails.

177.367. Selection and construction of projects to be funded. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 61, § 13; 1974, ch. 74, Art. IV, § 20(1); 1976 (1st Ex. Sess.), ch. 20, § 6, effective January 2, 1978) was repealed by Acts 1980, ch. 218, § 15, effective July 1, 1980.

177.368. Bureau to furnish annual report to participating cities and unincorporated urban places — Emergency account. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1972, ch. 61, § 14; 1974, ch. 74, Art. IV, § 20(1)) was repealed by Acts 1980, ch. 218, § 15, effective July 1, 1980.

177.369. Payment of pro rata share of funds appropriated to incorporated cities and counties.

  1. On and after the fiscal year beginning July 1, 1980 and each fiscal year thereafter, the Finance and Administration Cabinet shall pay to each incorporated city and county containing an unincorporated urban place its pro rata share of any funds appropriated and any unexpended balance of funds appropriated for construction, reconstruction, and maintenance of urban roads and streets. During each fiscal year, the Finance and Administration Cabinet shall make quarterly payments to each such city and county of the funds set aside and allocated pursuant to KRS 177.365 and 177.366 .
  2. The expenditure of any money received by the city or county pursuant to the provisions of subsection (1) of this section shall be made solely for the purpose of construction, reconstruction, and maintenance of urban roads and streets set forth in KRS 177.365 .
  3. Any city or county which has received any money pursuant to the provisions of subsection (1) of this section shall retain all records of the expenditure of such money for a period of five (5) years and said records shall be subject to audit by the Finance and Administration Cabinet for said period of time in order to determine the proper expenditure of said money for the purposes required by KRS 177.365 .

History. Enact. Acts 1980, ch. 218, § 12, effective July 1, 1980; 1988, ch. 327, § 7, effective July 15, 1988.

Opinions of Attorney General.

Where a city receives funds disbursed by the state from various road use taxes and received by the city pursuant to this section, and the city places these funds in an interest-bearing special road fund account, the interest derived therefrom must be applied to the road-related purposes set forth in KRS 177.365 since Const., § 230 mandates this and since subsection (2) of this section narrowly restricts expenditures for the construction, reconstruction and maintenance of urban roads and streets. OAG 81-143 .

The funds received by the city under the municipal aid program are subject to the general mandate of Const., § 230 concerning road expenditures; subsection (2) of this section further limits permissible expenditures of such funds to only the “purpose of construction, reconstruction and maintenance of urban roads and streets set forth in KRS 177.365 ”; therefore, since a parking lot is not within the definition of “streets,” the city cannot expend its municipal aid funds to pave a public parking lot. OAG 82-492 .

The city may not use portions of its municipal aid funds to pay the utility expenses for the operation of its street lighting system; paying the utility bills from the municipal aid funds would go beyond the physical maintenance of the street lighting system. OAG 84-271 .

Since the sidewalk is generally considered to be part of the street, a city may expend portions of its municipal aid funds to construct, maintain and repair sidewalks and be within the statutory requirement that such funds be spent to construct and maintain its streets. OAG 84-271 .

Municipal road aid funds may be used for the repair, replacement and general maintenance of street lights on public streets. OAG 84-271 .

177.370. Recommendations and reports to General Assembly. [Repealed.]

Compiler’s Notes.

This section (Enact Acts 1948, ch. 46, § 1) was repealed by Acts 1956 (2d Ex. Sess.), ch. 4, § 4, effective June 26, 1956.

Kentucky Transportation Center

177.375. Kentucky Transportation Center Advisory Board.

  1. There is created a Kentucky Transportation Center Advisory Board, hereinafter in KRS 177.375 to 177.380 called the transportation center board or the board, to assist in policy formulation for and to provide direction to the Kentucky Transportation Center which is located at the University of Kentucky. The board shall consist of nine (9) members appointed by the Governor.
  2. Of the nine (9) members, three (3) members shall be ex officio and include the secretary of the Transportation Cabinet, the state highway engineer and the dean of the College of Engineering at the University of Kentucky. In addition, it is recommended that three (3) of the nine (9) appointments be made in the following manner:
    1. One (1) member appointed from a list of three (3) names submitted by the executive board of the Kentucky Association of Counties;
    2. One (1) member appointed from a list of three (3) names submitted by the executive board of the Kentucky County Judges’ Association; and
    3. One (1) member appointed from a list of three (3) names submitted by the executive board of the Kentucky Municipal League.

      Initial appointments made pursuant to paragraphs (a), (b) and (c) of this subsection shall be for a period of one (1) year. The remaining appointments shall be for two (2) years except that ex officio members shall serve the same terms as that of their respective offices. Ex officio members and regular members shall have the same powers and voting privileges. Each appointment thereafter shall be for a period of two (2) years.

  3. The Governor shall designate one (1) member of the board as chairman, whose term shall be for two (2) years with said two (2) years being consistent with the biennium budget period. The members shall serve without pay, but shall be reimbursed for reasonable expenses from the center’s budget.
  4. Meetings of the board shall be held at least semiannually but may be held more frequently as deemed necessary subject to call by the chairman or by request of a majority of the board members. Board meetings shall concern, among other things, policy matters relating to the transportation center’s technical assistance and research programs, financial plans, and such other matters as necessary to carry out the intent of KRS 177.375 to 177.380 .
  5. Five (5) members of the board shall constitute a quorum for doing business. Each member shall have one (1) vote and a majority vote of the members present shall control on all questions. Each regular and ex officio member may designate a proxy by written notice to the chairman prior to call to order of each meeting and such proxy shall be entitled to cast the member’s vote.

History. Enact. Acts 1984, ch. 394, § 1, effective July 13, 1984.

177.376. Duties of board.

The Kentucky Transportation Center Board shall:

  1. Recommend policies and procedures as necessary to carry out the provisions of KRS 177.375 to 177.380 ;
  2. Review and recommend research, and technical assistance programs undertaken and financed under the provisions of KRS 177.375 to 177.380 ;
  3. Review all progress on projects authorized under the provisions of KRS 177.375 to 177.380 ;
  4. Provide the Governor, the General Assembly and the Legislative Research Commission with an annual report by January 15 of each year showing the status of funds appropriated under the provisions of KRS 177.375 to 177.380 for the operation and management of the Kentucky Transportation Center and the progress of the Kentucky Transportation Center’s technical assistance and research programs;
  5. Advise the General Assembly by January 30 during each even-numbered-year regular session of the need for continuation of the Kentucky Transportation Center;
  6. Ensure that personnel and facilities of the regional universities and community colleges are utilized when appropriate for completion of work or service functions performed by the center; and
  7. Ensure that all authorized projects are directed toward transportation improvement and more specifically toward strengthening the transportation system of Kentucky.

History. Enact. Acts 1984, ch. 394, § 2, effective July 13, 1984; 2001, ch. 58, § 9, effective June 21, 2001.

177.377. Appointment of director.

The president of the University of Kentucky shall appoint a director from a list of three (3) names submitted by the transportation center board. Other employees of the center shall be appointed in the same manner as other staff members of the university. All employees of the Kentucky Transportation Center shall be employees of the University of Kentucky within the provisions of KRS 164.220 to 164.230 .

History. Enact. Acts 1984, ch. 394, § 3, effective July 13, 1984.

177.378. Use of funds.

  1. Any state moneys appropriated to the University of Kentucky under KRS 177.375 to 177.380 shall be used for the operation and management of the transportation center’s technical assistance and research programs and for no other purpose.
  2. Funds unexpended at the close of the fiscal year shall not lapse but shall be carried forward to the next fiscal year or biennium, provided, however, that such surplus shall be included in the budget for the center considered and approved for the ensuing period.

History. Enact. Acts 1984, ch. 394, § 4, effective July 13, 1984.

177.379. Budget.

  1. The director shall submit the transportation center budget in the manner and form set forth for other units of the university, after approval by the transportation center board.
  2. Copies of the approved budget shall be filed with the transportation center board and the Legislative Research Commission.

History. Enact. Acts 1984, ch. 394, § 5, effective July 13, 1984.

177.380. Funds not to be diverted to other use — Records — Annual financial report.

  1. Funds appropriated by KRS 177.375 to 177.380 and any other act for transportation center programs shall not be diverted for any other use.
  2. The University of Kentucky and the transportation center shall maintain such records as necessary to account for all receipts and expenditures credited or charged against the transportation center.
  3. An annual financial report shall be submitted to the executive director of the Legislative Research Commission and to the Governor by the university on behalf of the transportation center.

History. Enact. Acts 1984, ch. 394, § 6, effective July 13, 1984.

Compiler’s Notes.

A former KRS 177.380 (Acts 1948, ch. 46, § 1) was repealed by Acts 1974, ch. 74, Art. IV, § 21.

Turnpike Projects

177.390. Definitions for KRS 177.390 to 177.570.

As used in KRS 177.390 to 177.570 , the following words and terms shall have the following meanings, unless the context shall indicate another or different meaning or intent:

  1. The word “department” shall mean the Department of Highways, or, if said department shall be abolished, the department, board, body, or commission succeeding to the principal functions thereof or to whom the powers given by KRS 177.390 to 177.570 to the department shall be given by law;
  2. The word “project” or the words “turnpike project” shall mean any express highway or superhighway or such part or parts thereof as may be constructed under the provisions of KRS 177.390 to 177.570 by the department, including all bridges, tunnels, overpasses, underpasses, interchanges, entrance plazas, approaches, connecting highways, tollhouses, service stations, garages, restaurants, and administration, storage, and other buildings and facilities which the department may deem necessary for the operation of such project, together with all property, rights, easements, and interests which may be acquired by the department for the construction or the operation of such project;
  3. The word “cost” as applied to a turnpike project shall embrace the cost of construction, the cost of the acquisition of all land, rights of way, property, rights, easements, and interests acquired by the department for such construction, the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which such buildings or structures may be moved, the cost of all machinery and equipment, financing charges, provision for working capital in such amount as the department shall determine to be reasonable, interest prior to and during construction, and, if deemed advisable by the department, for a period not exceeding two (2) years after completion of construction, cost of traffic estimates and of engineering and legal expenses, plans, specifications, surveys, estimates of cost and of revenues, other expenses necessary or incident to determining the feasibility or practicability of constructing any such project, administrative expense, and such other expense as may be necessary or incident to the construction of the project, the financing of such construction, and the placing of the project in operation. Any obligation or expense heretofore or hereafter incurred by the department for traffic surveys, borings, preparation of plans and specifications, engineering, and other services in connection with the construction of a project shall be regarded as a part of the cost of such project and may be reimbursed to the Commonwealth out of the proceeds of turnpike revenue bonds hereinafter authorized in KRS 177.400 to 177.570 ;
  4. The words “public highways” shall include all public highways, roads, and streets in the Commonwealth, whether maintained by the Commonwealth or by any county, city, town, or other political subdivision;
  5. The word “bonds” or the words “turnpike revenue bonds” shall mean revenue bonds of the Commonwealth authorized under the provisions of KRS 177.390 to 177.570 ;
  6. The word “owner” shall include all individuals, copartnerships, associations, or corporations having any title or interest in any property, rights, easements, and interests authorized to be acquired by KRS 177.390 to 177.570 .

History. Enact. Acts 1950, ch. 157, § 3; 1960, ch. 174, § 1, effective March 25, 1960.

NOTES TO DECISIONS

1.Public Highways.

A toll road is a “public highway.” Guthrie v. Curlin, 263 S.W.2d 240, 1953 Ky. LEXIS 1238 (Ky. Ct. App. 1953).

2.Access.

Right of access to street or highway by abutting property owner is generally an easement and is subordinate to the rights of the public and the grounds of authority for impairing or taking this property by closing or obstructing the street or highway is public convenience and necessity but the taking of such property without due process of law cannot be countenanced. Standiford Civic Club v. Commonwealth, 289 S.W.2d 498, 1956 Ky. LEXIS 285 ( Ky. 1956 ), overruled, Department of Highways v. Jackson, 302 S.W.2d 373, 1957 Ky. LEXIS 189 ( Ky. 1957 ).

3.Administrative Functions.

In regulating the use and occupancy of state property a state officer is not exercising a legislative function, but an administrative one. Guthrie v. Curlin, 263 S.W.2d 240, 1953 Ky. LEXIS 1238 (Ky. Ct. App. 1953).

Cited:

Guthrie v. Curlin, 263 S.W.2d 240, 1953 Ky. LEXIS 1238 ( Ky. 1953 ); Turnpike Authority of Kentucky v. Wall, 336 S.W.2d 551, 1960 Ky. LEXIS 331 ( Ky. 1960 ).

Research References and Practice Aids

Kentucky Law Journal.

Martin, Administrative Action for Efficient Debt Management: The Kentucky Case, The Setting, 49 Ky. L.J. 505 (1961).

177.400. Turnpike projects authorized.

In order to provide for the construction of modern express highways or superhighways embodying safety devices, including, when determined by the department to be feasible and necessary, center division, ample shoulder widths, long-sight distances, two (2) or more lanes in each direction and grade separations at intersections with other highways and railroads, and thereby facilitate vehicular traffic, remove many of the present handicaps and hazards on the congested highways in the Commonwealth, and promote the agricultural and industrial development of the Commonwealth, the Department of Highways is hereby authorized and empowered to construct, maintain, repair and operate turnpike projects, and to issue revenue bonds of the Commonwealth to finance such projects.

History. Enact. Acts 1950, ch. 157, § 1; 1960, ch. 174, § 2.

177.410. General powers of Department of Highways as to turnpike projects.

The department is hereby authorized and empowered:

  1. To construct, reconstruct, maintain, repair, operate, regulate and police turnpike projects at such locations within the Commonwealth as may be determined by the department and approved by the Governor;
  2. To acquire sites abutting on any turnpike project, and to construct or contract for the construction of buildings and appurtenances for service stations, garages, restaurants and other services and to lease the same to others for any of such purposes (or, if leases cannot be made on acceptable terms, to operate any and all of the same) in such manner and under such terms as the department may determine;
  3. To issue turnpike revenue bonds of the Commonwealth, payable solely from the tolls, revenues and other funds pledged for their payment, for the purpose of paying all or any part of the cost of any one (1) or more turnpike projects, and to refund any of its bonds, all as provided in KRS 177.390 to 177.570 ;
  4. To fix and revise from time to time and charge and collect tolls for transit over each turnpike project constructed by it;
  5. To combine for financing purposes any two (2) or more turnpike projects;
  6. To establish rules and regulations for the use of any turnpike project;
  7. To acquire, hold and dispose of real and personal property in the exercise of its powers and the performance of its duties under KRS 177.390 to 177.570 , without reference to KRS Chapter 56;
  8. To designate the locations and establish, limit and control such points of ingress and egress from each turnpike project as the department may determine to be necessary or desirable in the judgment of the department to insure the proper operation and maintenance of such project, and to prohibit entrance to such project from any point or points not so designated;
  9. To make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under KRS 177.390 to 177.570 ;
  10. To employ consulting engineers, attorneys, accountants, construction and financial experts, superintendents, managers, and such other employees and agents as may be necessary in its judgment, and to fix their compensation;
  11. To receive and accept from any federal agency grants for or in aid of the construction of any turnpike project, and to receive and accept aid or contributions from any source of either money, property, labor or other things of value, to be held, used and applied only for the purposes for which such grants and contributions may be made;
  12. To expend any funds provided under the authority of KRS 177.390 to 177.570 in advertising the facilities and services of a turnpike project or projects to the traveling public; and
  13. To do all acts and things necessary or convenient to carry out the powers expressly granted in KRS 177.390 to 177.570 .

History. Enact. Acts 1950, ch. 157, § 4; 1960, ch. 174, § 3.

177.420. Acquisition of property — Condemnation — Possession — Special provisions for condemning railroad property.

  1. The department is hereby authorized and empowered to acquire by purchase, whenever it shall deem such purchase expedient, solely from funds provided under the authority of KRS 177.390 to 177.570 , such lands, structures, property, rights, rights-of-way, franchises, easements and other interests in lands, including lands lying under water and riparian rights, which are located within the Commonwealth, as it may deem necessary or convenient for the construction and operation of any project, upon such terms and at such prices as may be considered by it to be reasonable and can be agreed upon between it and the owner thereof, and to take title thereto in the name of the Commonwealth for the use and benefit of the department.
  2. Whenever a reasonable price cannot be agreed upon, or whenever the owner is legally incapacitated or is absent, unknown or unable to convey valid title, the department is hereby authorized and empowered to acquire by condemnation or by the exercise of the power of eminent domain any lands, property, rights, rights-of-way, franchises, easements and other property, including public lands, parks, playgrounds, reservations, highways or parkways, or parts thereof or rights therein, of any person, copartnership, association, railroad, public service, public utility or other corporation, or municipality or political subdivision, deemed necessary or convenient for the construction or the efficient operation of any project or necessary in the restoration of public or private property damaged or destroyed. Any such proceedings shall be conducted, and the compensation to be paid shall be ascertained and paid, in the manner provided by the Constitution and laws of the Commonwealth then applicable which relate to condemnation or to the exercise of the power of eminent domain by the department. Title to any property acquired by the department shall be taken in the name of the Commonwealth for the use and benefit of the department. In any condemnation proceedings the court having jurisdiction of the suit, action or proceeding may make such orders as may be just to the department and to the owners of the property to be condemned and may require an undertaking or other security to secure such owners against any loss or damage by reason of the failure of the department to accept any pay for the property, but neither such undertaking or security nor any act or obligation of the department shall impose any liability upon the Commonwealth except as may be paid from the funds provided under the authority of KRS 177.390 to 177.570 .
  3. If the owner, lessee or occupier of any property to be condemned shall refuse to remove his personal property therefrom or give up possession thereof, the department may proceed to obtain possession in any manner now or hereafter provided by law.
  4. With respect to any railroad property or right-of-way upon which railroad tracks are located, any powers of condemnation or of eminent domain may be exercised to acquire only an easement interest therein which shall be located either sufficiently far above or sufficiently far below the grade of any railroad track or tracks upon such railroad property so that neither the proposed project nor any part thereof, including any bridges, abutments, columns, supporting structures and appurtenances, nor any traffic upon it, shall interfere in any manner with the use, operation or maintenance of the trains, tracks, works or appurtenances or other property of the railroad nor endanger the movement of the trains or traffic upon the tracks of the railroad. Prior to the institution of condemnation proceedings for such easement over or under such railroad property or right-of-way, plans and specifications of the proposed project showing compliance with the above-mentioned above or below grade requirements and showing sufficient and safe plans and specifications of such overhead or undergrade structure and appurtenances shall be submitted to the railroad for examination and approval. If the railroad fails or refuses within thirty (30) days to approve the plans and specifications so submitted, the matter shall be submitted to the Public Service Commission of Kentucky whose decision, arrived at after due consideration in accordance with its usual procedure, shall be final as to the sufficiency and safety of such plans and specifications and as to such elevations or distances above or below the tracks. Said overhead or undergrade structure and appurtenances shall be constructed only in accordance with such plans and specifications and in accordance with such elevations or distances above or below the tracks so approved by the railroad or the Public Service Commission as the case may be. A copy of the plans and specifications approved by the railroad or the Public Service Commission shall be filed as an exhibit with the petition for condemnation.

History. Enact. Acts 1950, ch. 157, § 5.

NOTES TO DECISIONS

Cited:

Standiford Civic Club v. Commonwealth, 289 S.W.2d 498, 1956 Ky. LEXIS 285 ( Ky. 1956 ), overruled, Department of Highways v. Jackson, 302 S.W.2d 373, 1957 Ky. LEXIS 189 ( Ky. 1957 ), overruled in part, Department of Highways v. Jackson, 302 S.W.2d 373, 1957 Ky. LEXIS 189 ( Ky. 1957 ).

Research References and Practice Aids

Cross-References.

Condemnation proceedings, KRS 177.081 .

Private property not to be taken without just compensation, Const., § 13.

177.430. Grade separations — Relocation or vacation of existing highway — Rights of access — Regulations as to public utility facilities on or along turnpike project.

  1. The department shall have power to construct grade separations at intersections of any turnpike project with public highways and to change and adjust the lines and grades of such highways so as to accommodate the same to the design of such grade separation. The cost of such grade separations and any damage incurred in changing and adjusting the lines and grades of such highways shall be ascertained and paid by the department as a part of the cost of such turnpike project.
  2. If the department shall find it necessary to change the location of any portion of any public highway, it shall cause the same to be reconstructed at such location as the department shall deem most favorable and of substantially the same type and in as good condition as the original highway. The cost of such reconstruction and any damage incurred in changing the location of any such highway shall be ascertained and paid by the department as a part of the cost of such turnpike project.
  3. Any public highway affected by the construction of any turnpike project may be vacated or relocated by the department in the manner now provided by law for the vacation or relocation of public roads, and any damages awarded on account thereof shall be paid by the department as a part of the cost of such project.
  4. In addition to the foregoing powers the department and its authorized agents and employees may enter upon any lands, waters and premises in the Commonwealth for the purpose of making surveys, soundings, drillings and examinations as they may deem necessary or convenient for the purposes of KRS 177.390 to 177.570 , and such entry shall not be deemed a trespass, nor shall an entry for such purposes be deemed an entry under any condemnation proceedings which may be then pending. The department shall make reimbursement for any actual damage resulting to such lands, waters and premises as a result of such activities.
  5. The department shall also have power to make reasonable regulations for the installation, construction, maintenance, repair, renewal, relocation and removal of tracks, pipes, mains, conduits, cables, wires, towers, poles and other equipment and appliances (herein called “public utility facilities”) of any public utility in, on, along, over or under any turnpike project. Whenever the department shall determine that it is necessary that any such public utility facilities which now are, or hereafter may be, located in, on, along, over or under any turnpike project should be relocated in such turnpike project, or should be removed from such turnpike project, the public utility owning or operating such facilities shall relocate or remove the same in accordance with the order of the department; provided, however, that the cost and expenses of such relocation or removal, including the cost of installing such facilities in a new location or new locations, and the cost of any lands, or any rights or interests in lands, and any other rights, acquired to accomplish such relocation or removal, shall be ascertained and paid by the department as a part of the cost of such turnpike project. In case of any such relocation or removal of facilities, the public utility owning or operating the same, its successors or assigns, may maintain and operate such facilities, with the necessary appurtenances, in the new location or new locations, for as long a period, and upon the same terms and conditions, as it had the right to maintain and operate such facilities in their former location or locations. No utility shall have the privilege of establishing its lines or properties within the right-of-way of a turnpike, except upon the conditions and terms prescribed by the department; however, a utility shall be permitted to connect its lines with service stations, garages, restaurants and other installations permitted to exist upon the right-of-way of the turnpike.
  6. Costs and expenses paid by the department as permitted by subsections (1), (2), (3), and (5) of this section may in the discretion of the department be reimbursed to it from the proceeds of bonds issued for the project or projects under KRS 177.390 to 177.570 if so provided in the proceedings or trust indenture pursuant to which such bonds are issued.
  7. The Commonwealth hereby consents to the use of all lands owned by it, including lands lying under water, which are deemed by the department to be necessary for the construction or operation of any turnpike project.

History. Enact. Acts 1950, ch. 157, § 6; 1960, ch. 174, § 4.

NOTES TO DECISIONS

1.Construction.

This section means that the regular procedure for closing a county road, KRS 178.070 to 178.100 , shall be followed, but that as concerns the right to close, the procedure is a mere formality. Ex parte Commonwealth, Dep't of Highways, 291 S.W.2d 814, 1956 Ky. LEXIS 399 ( Ky. 1956 ).

Cited:

Standiford Civic Club v. Commonwealth, 289 S.W.2d 498, 1956 Ky. LEXIS 285 ( Ky. 1956 ), overruled, Department of Highways v. Jackson, 302 S.W.2d 373, 1957 Ky. LEXIS 189 ( Ky. 1957 ), overruled in part, Department of Highways v. Jackson, 302 S.W.2d 373, 1957 Ky. LEXIS 189 ( Ky. 1957 ).

177.440. Limited access to turnpikes.

All turnpikes established under the provisions of KRS 177.390 to 177.570 are declared to be limited access facilities, within the meaning and subject to the provisions of KRS 177.220 to 177.310 , and KRS 177.990 . No right of access to a turnpike shall vest in the holder of adjacent or neighboring property by reason of the proposal to construct, or the construction and operation of, a turnpike. Nothing in KRS 177.390 to 177.570 shall be construed to create any right of access in an owner near or adjacent to an entranceway to a turnpike, where such right did not already exist to an entranceway on a road or highway which has been incorporated into the turnpike.

History. Enact. Acts 1950, ch. 157, § 7.

NOTES TO DECISIONS

1.Construction.

The reference in this section to the limited access statute was intended to adopt only such positions of the limited access statute as relate to control of access to the highway, and was not intended to adopt the portions relating to location or establishment of the highway. Guthrie v. Curlin, 263 S.W.2d 240, 1953 Ky. LEXIS 1238 (Ky. Ct. App. 1953).

177.450. Turnpike revenue bonds.

  1. The department is authorized to provide, at one time or from time to time, for the issuance of turnpike revenue bonds of the Commonwealth for the purpose of paying all or any part of the cost of any one or more turnpike projects. The principal of and the interest on the bonds shall be payable solely from the funds provided in KRS 177.390 to 177.570 for payment. The bonds of any issue may be in one (1) or more series and any one (1) or more of the series may enjoy equal or subordinate status with respect to the pledge of funds from which they are payable, shall be dated, shall bear interest at a rate or rates or method of determining rates, payable at least annually, shall mature at a time or times not exceeding forty (40) years from their date or dates, all as may be determined by the department, and may be made redeemable before maturity, at the option of the department, at a price or prices and under terms and conditions as may be fixed by the department prior to the issuance of the bonds. The department shall determine the form of the bonds, including any interest coupons to be attached to the bonds, and shall fix the denomination or denominations of the bonds and the place or places for payment of principal and interest, which may be at any bank or trust company within or without the Commonwealth. The bonds shall be signed by the commissioner of highways, and the great seal of the Commonwealth or a facsimile signature of the commissioner shall be affixed to the bonds and attested by the Secretary of State by his facsimile signature, and any coupons attached to the bonds shall bear the facsimile signature of the commissioner of highways. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until the delivery. All bonds issued under the provisions of KRS 177.390 to 177.570 shall have and are declared to have all the qualities and incidents of negotiable instruments under the negotiable instruments law of the Commonwealth. The bonds may be issued in coupon or in registered form, or both, as the department may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest. The department may sell the bonds in a manner, either at public or private sale, and for a price as it may determine will best effect the purposes of KRS 177.390 to 177.570.
  2. The proceeds of the bonds of each issue shall be used solely for the payment of the cost of the turnpike project or projects for which the bonds shall have been issued, and shall be disbursed in a manner and under the restrictions, if any, as the department may provide in the proceedings authorizing the issuance of the bonds or in the trust agreement mentioned in KRS 177.460 securing the bonds. If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than the cost, additional bonds may be issued to provide the amount of the deficit, and, unless otherwise provided in the proceedings authorizing the issuance of the bonds or in the trust agreement securing the bonds, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued. If the proceeds of the bonds of any issue shall exceed the cost, the surplus shall be deposited to the credit of the sinking fund or funds for the bonds or any account or accounts as the department shall have provided in the proceedings or trust agreement authorizing and securing the bonds.
  3. Prior to the preparation of definitive bonds, the department may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds shall have been executed and are available for delivery. The department may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds may be issued under the provisions of KRS 177.390 to 177.570 without obtaining the consent of any department, division, commission, board, department, or agency of the Commonwealth, and without any other proceedings or the happening of any other conditions or things than those proceedings, conditions, or things which are specifically required by KRS 177.390 to 177.570 .

History. Enact. Acts 1950, ch. 157, § 8; 1960, ch. 174, § 5; 1996, ch. 274, § 38, effective July 15, 1996.

NOTES TO DECISIONS

1.Constitutionality.

This section is not unconstitutional because it does not require public sale — the requirement of public sale is superimposed upon the statute by other law. Guthrie v. Curlin, 263 S.W.2d 240, 1953 Ky. LEXIS 1238 (Ky. Ct. App. 1953).

2.Advertisement for Bids.

There must be public advertisement for bids in the sale of bonds by a governmental officer or agency. Guthrie v. Curlin, 263 S.W.2d 240, 1953 Ky. LEXIS 1238 (Ky. Ct. App. 1953).

177.460. Trust agreement to secure bonds — Rights and remedies of bondholders.

In the discretion of the department, any bonds issued under the provisions of KRS 177.390 to 177.570 may be secured by a trust agreement by and between the department and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth. Such trust agreement or the proceedings providing for the issuance of such bonds may pledge or assign the tolls and other revenues to be received, but shall not convey or mortgage any turnpike project or any part thereof. Such trust agreement or proceedings providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the department in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation and insurance of the turnpike project or projects in connection with which such bonds shall have been authorized, the rates of toll to be charged, and the custody, safeguarding and application of all moneys. It shall be lawful for any bank or trust company incorporated under the laws of the Commonwealth which may act as depository of the proceeds of bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the department. Any such trust agreement may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or proceedings may contain such other provisions as the department may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or proceedings may be treated as a part of the cost of the operation of the turnpike project or projects.

History. Enact. Acts 1950, ch. 157, § 9.

177.470. Bonds not debt of Commonwealth.

Revenue bonds issued under the provisions of KRS 177.390 to 177.570 shall not be deemed to constitute a debt of the Commonwealth or of any political subdivision thereof or a pledge of the faith and credit of the Commonwealth or of any such political subdivision, but such bonds shall be payable solely from the funds provided therefor in KRS 177.390 to 177.570 . All such revenue bonds shall contain on the face thereof a statement to the effect that the Commonwealth shall not be obligated to pay the same or the interest thereon except from revenues of the project or projects for which they are issued and, if so provided in the proceedings or trust agreement authorizing or providing for the issuance of such bonds, from other available funds pledged to the payment thereof, and that neither the faith and credit nor the taxing power of the Commonwealth is pledged to the payment of the principal of or the interest on such bonds.

History. Enact. Acts 1950, ch. 157, § 2; 1960, ch. 174, § 6.

177.480. Tolls for use of turnpike — Contracts for utility and service facilities — Disposition of toll revenues — Maintenance of turnpike by Department of Highways.

  1. The department is hereby authorized to fix, revise, charge, and collect tolls for the use of each turnpike project and the different parts or sections thereof, and to contract with any person, partnership, association, or corporation desiring the use of any part thereof, including the right-of-way adjoining the paved portion, for placing thereon telephone, telegraph, electric light or power lines, service stations, garages, stores, hotels, and restaurants, or for any other purpose except for tracks for railroad or railway use, and to fix the terms, conditions, rents, and rates of charges for such use. A sufficient number of service stations shall be authorized to be established in each service area along any such turnpike to permit reasonable competition by private business in the public interest.
  2. Tolls shall be so fixed and adjusted in respect of the aggregate of tolls from the turnpike project or projects in connection with which the bonds of any issue shall have been issued under the provisions of KRS 177.390 to