KLC Initiative, Annexation Bill Make Their Way to the House and Senate Floor

Legislators are pushing bills through committees in a flurry of activity leading up to the veto recess at the end of the month.

Senate Bill 229, a KLC initiative on behalf of municipal utilities, unanimously passed the House Local Government Committee on Wednesday. The legislation clarifies the naming of members from municipal utilities to several boards as designated by the Kentucky League of Cities and cleared the Senate unanimously last week.

The bill sponsored by Sen. Mike Wilson, R-Bowling Green, now heads to the full House.

Annexation

Meanwhile, the Senate State and Local Government Committee continued to move the compromise annexation bill through the legislative process, leaving it one step away from reaching the governor.

The KLC Board of Directors initially voted to oppose the provisions of House Bill 596 that mandated city revenue splitting by cities with the county governments. KLC was able to secure amendments in the House with the agreement of the sponsor, legislative leaders, and counties on limiting the application of the revenue-splitting provisions in cities located in counties with occupational license tax crediting to a few unique circumstances. 

The revenue splitting provisions will only apply when:

  • The annexation involves a corridor that doesn’t include existing city water or wastewater utility lines; or
  • The annexation is of contiguous territory, and the city does not provide new services to the annexed territory.  

The annexation bill passed the Senate State and Local Government Committee 10-1, and now heads to the full Senate chamber.