KRS 136.658 — Local Distribution Fund Oversight Committee -- Creation and duties

(1) The Local Distribution Fund Oversight Committee is hereby created and
administratively attached to and staffed by the department. The oversight committee
shall consist of nine (9) members appointed by the Governor and shall be
representative of local gove rnment and state government officials. The Governor
shall receive recommendations for four (4) members each from the Kentucky
Association of Counties and the Kentucky League of Cities from which the
Governor shall select two (2) members each. The Governor shall receive
recommendations for two (2) members each from the Kentucky School Board
Association, the Kentucky Superintendents Association, and the Kentucky School
Administrators Association from which the Governor shall select one (1) member
each. One (1) member shall be appointed by the Governor to represent the interests
of special districts other than school districts. The remaining member shall be the
commissioner of the Department for Local Government, who shall serve as
chairperson of the oversight committee. The members shall serve for a term of three
(3) years. Five (5) members of the oversight committee shall constitute a quorum. A
member may be removed for cause in accordance with procedures established by
the oversight committee and shall serve without salary but shall be reimbursed for
expenses in the same manner as state employees. Any vacancy occurring on the
oversight committee shall be filled by the Governor for the unexpired term.
(2) The duties of the oversight committee shall be:
(a) To m onitor the department's implementation and distribution of funds from
the gross revenues and excise tax fund and the state baseline and local growth
fund and to report its findings to the commissioner of the department; and
(b) To act as a finder of fact for the commissioner of the department in disputes in
and between political subdivisions, school districts, special districts, and
sheriff departments, and between political subdivisions, school districts,
special districts, and sheriff departments, and the department regarding the
implementation and distribution of funds from the gross revenues and excise
tax fund and the state baseline and local growth fund.
(3) The department shall provide the oversight committee with an annual report
reflecting the amounts distributed to each participating political subdivision, school
district, special district, or sheriff department.
(4) Any political subdivision, school district, special district, or sheriff department may
file a complaint and request a hearing with th e oversight committee on a form
prescribed by the committee. The oversight committee shall give notice to any
political subdivision, school district, special district, or sheriff department that may
be affected by the complaint. Any political subdivision, school district, special
district, or sheriff department intending to respond to the complaint shall do so in
writing within thirty (30) days of notice of the complaint.
(5) In conducting its business:
(a) The oversight committee shall give due notice of t he times and places of its
hearings;
(b) The parties shall be entitled to be heard, to present evidence, and to examine
and cross-examine witnesses;
(c) The oversight committee shall act by majority vote;
(d) The oversight committee shall adopt and publish rules of procedure and
practice regarding its hearings; and
(e) The oversight committee shall make written findings and recommendations to
the commissioner of the department.
(6) The commissioner of the department shall review the findings and
recommendations of the oversight committee and issue a final ruling within sixty
(60) days of receipt of the recommendations.
(7) The parties in the dispute shall have the rights and duties to appeal any final ruling
to the Board of Tax Appeals under KRS 49.220.
(8) Nothing contained in this section shall prevent at any time a written compromise of
any matter or matters in dispute, if otherwise lawful, by the parties to the hearing
process.