UNOFFICIAL COPY 25 RS BR 1556 Page 1 of 12 XXXX 2/19/2025 2:35 PM Jacketed AN ACT relating to recreation and tourism development. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 SECTION 1. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 3 READ AS FOLLOWS: 4 As used in Sections 1 to 5 of this Act: 5 (1) "Authority" or "DBBDA" means the Dream Big Burnside Development 6 Authority established in Section 2 of this Act; 7 (2) "Board' means the board of directors of the DBBDA; 8 (3) "County" means a county, charter county, urban-county government, unified 9 local government, or consolidated local government; 10 (4) "General Burnside Island" means a four hundred thirty (430) acre island 11 surrounded by the Big South Fork Cumberland River that is located in the Lake 12 Cumberland basin in Pulaski County situated south from the City of Somerset 13 and north of the City of Burnside; 14 (5) "Land" means roads, water, watercourses, buildings, structures, and machinery 15 or equipment thereon when attached to the realty; 16 (6) "Participating county" means a county that has qualified under subsection (5) of 17 Section 2 of this Act; 18 (7) "Recreational area" or "RA" means lands on which there is a system of 19 recreational trails, including streams, rivers, and other waterways, and 20 appurtenant facilities, including trailhead centers, parking areas, camping 21 facilities, picnic areas, historic or cultural interpretive sites, and other facilities in 22 Kentucky and designated by the DBBDA as part of the RA; and 23 (8) "Recreational purposes" means all-terrain vehicle riding, bicycling, canoeing, 24 golfing, fishing, hiking, camping, horseback riding, hunting, kayaking, 25 motorcycle riding, rock climbing, swimming, archaeological activities, nature 26 study, off-highway vehicle driving, pleasure driving, watersports, winter sports, 27 UNOFFICIAL COPY 25 RS BR 1556 Page 2 of 12 XXXX 2/19/2025 2:35 PM Jacketed visiting or viewing historical or scenic sites, and otherwise using land for 1 purposes pertaining to recreation or trail activities. 2 SECTION 2. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 3 READ AS FOLLOWS: 4 (1) The Dream Big Burnside Development Authority is hereby established as an 5 independent, de jure municipal corporation and political subdivision of the 6 Commonwealth and shall exercise all powers that a corporation may lawfully 7 exercise under the laws of the Commonwealth. The authority shall be a public 8 body corporate and politic and an instrumentality of the Commonwealth, 9 established with all the general corporate powers incidental thereto. The 10 authority shall be attached to the Department for Local Government for 11 administrative purposes only. The authority shall be authorized for a period of 12 five (5) years from the effective date of this Act, and may be renewed by the 13 General Assembly. The authority may adopt bylaws, and administrative 14 regulations in accordance with KRS Chapter 13A, for the orderly conduct of its 15 affairs. 16 (2) The purpose of the authority is to develop, finance, maintain, improve, and 17 promote lodging and restaurant facilities and recreational amenities on General 18 Burnside Island State Park and surrounding area for public park purposes to 19 increase economic development, tourism, and outdoor recreation for residents 20 and visitors. 21 (3) The authority shall be governed by a board of directors consisting of 22 representatives from participating local governments and the Commonwealth as 23 provided in this section. 24 (4) The authority and board shall become operational when all members of the 25 authority complete the requirements established by subsection (5)(a) of this 26 section. The commissioner of the Department for Local Government shall notify 27 UNOFFICIAL COPY 25 RS BR 1556 Page 3 of 12 XXXX 2/19/2025 2:35 PM Jacketed the county judge/executive of the participating county, the mayor of a 1 participating city, as well as the board members described in subsection (6) of this 2 section, that the requirements have been met for the authority and board to 3 become operational. The commissioner shall also establish a date, time, and place 4 for an initial organizational meeting of the board, and shall serve as interim 5 chair of the initial organizational meeting until such time as a chair is elected. 6 The chair shall be a resident of the city or county. 7 (5) Any local government located within the RA may become a participating county 8 upon adoption of a resolution or ordinance by the governing body of the county 9 specifically approving the county's participation in the DBBDA and submission 10 of the adopted resolution or ordinance to: 11 (a) The commissioner of the Department for Local Government if the 12 resolution or ordinance is adopted prior to the DBBDA becoming 13 operational pursuant to subsection (4) of this section; or 14 (b) The DBBDA if the resolution or ordinance is adopted after DBBDA 15 becomes operational. 16 (6) The DBBDA board shall consist of the following members: 17 (a) The secretary of the Tourism, Arts and Heritage Cabinet or his or her 18 designee; 19 (b) The commissioner of the Department for Local Government or his or her 20 designee; 21 (c) The commissioner of the Department of Fish and Wildlife Resources or his 22 or her designee; 23 (d) If an executive director of the authority has been employed under 24 subsection (10) of this section, he or she shall serve as a nonvoting member, 25 except in the event of a tie vote of the board; 26 (e) Two (2) representatives selected from six (6) candidates submitted by the 27 UNOFFICIAL COPY 25 RS BR 1556 Page 4 of 12 XXXX 2/19/2025 2:35 PM Jacketed chair of the Somerset-Pulaski Economic Development Authority; 1 (f) Two (2) representatives selected from six (6) candidates provided by the 2 chair of the Somerset-Pulaski Economic Development Authority; 3 (g) Two (2) representatives appointed by the mayor of the City of Burnside; 4 (h) Two (2) representatives appointed by the mayor of the City of Somerset; 5 (i) Two (2) representatives appointed by the county judge/executive of Pulaski 6 County; 7 (j) The county judge/executive of Pulaski County or his or her designee; 8 (k) One (1) state Representative who is from the DBBDA region shall serve as a 9 nonvoting member, appointed to a two (2) year term by the Speaker of the 10 House of Representatives, and shall not serve another term consecutively 11 with a prior term; and 12 (l) One (1) state Senator who is from the DBBDA region shall serve as a 13 nonvoting member, appointed to two (2) year term by the President of the 14 Senate. 15 (7) A county judge/executive shall only serve on the board while holding the office 16 for which he or she was elected. If a county judge/executive ceases to serve as the 17 county judge/executive prior to the end of his or her term, he or she shall be 18 removed from the board, and his or her replacement as county judge/executive 19 shall serve on the board for the remainder of the term. 20 (8) (a) The voting members of the board shall be: 21 1. The county judge/executive; 22 2. The secretary of the Tourism, Arts and Heritage Cabinet or his or her 23 designee; 24 3. The commissioner of the Department for Local Government or his or 25 her designee; and 26 4. The commissioner of the Department of Fish and Wildlife Resources 27 UNOFFICIAL COPY 25 RS BR 1556 Page 5 of 12 XXXX 2/19/2025 2:35 PM Jacketed or his or her designee. 1 (b) If a vacancy occurs among the appointed members of the board, the 2 unexpired term shall be filled pursuant to the requirements and procedures 3 for original appointments. 4 (9) (a) The board shall meet at least once every quarter to elect officers, establish a 5 regular meeting schedule, and perform other duties as may be prescribed in 6 the authority's bylaws. The board chair may call special meetings at any 7 time. 8 (b) Notice of each meeting shall be made in writing and delivered to board 9 members at least seven (7) days before the scheduled meeting date. 10 Electronic mail is an acceptable form of notice of special meetings, so long 11 as it is sent to directors at least seven (7) days before the scheduled meeting 12 date. 13 (c) Accommodations shall be made for remote attendance for each board 14 meeting, whether regular or special, through means such as video 15 conferencing, conference call, or similar services. 16 (d) The presence of a majority of the total voting members of the DBBDA board 17 shall constitute a quorum. Vacant board positions shall be counted against 18 the quorum total necessary for board action. 19 (10) The DBBDA board: 20 (a) Shall elect a chair, vice chair, secretary, treasurer, and any other officers as 21 established in the bylaws of the board; 22 (b) May appoint temporary and standing committees to accomplish the 23 purposes of Sections 1 to 5 of this Act and shall clearly describe the role, 24 responsibilities, and tenure of each committee so created; 25 (c) Shall adopt bylaws for the management and regulation of its affairs and all 26 other matters necessary to effect proper management and accountability of 27 UNOFFICIAL COPY 25 RS BR 1556 Page 6 of 12 XXXX 2/19/2025 2:35 PM Jacketed the board. The bylaws shall include, at a minimum, the following: 1 1. The powers and duties of the board's members and the manner and 2 number of officers to be elected from among the board members; and 3 2. The terms, conditions, and manner in which a board member will be 4 removed; 5 (d) Shall review and approve an annual budget; 6 (e) Shall ensure that all administrative costs for operating the authority are 7 paid from funds accruing to the authority; 8 (f) May seek administrative and management assistance through written 9 agreement with state agencies, local area development districts, or local 10 governing bodies until such time as the board has secured sufficient 11 funding through grants, loans, fee systems, or any other funding source to 12 hire staff; and 13 (g) Shall employ an executive director to act as its chief executive officer to 14 serve at its will and pleasure. 15 (11) The authority shall comply with the provisions of KRS Chapter 65A. 16 (12) The executive director: 17 (a) Shall be a person who is domiciled in a DBBDA participating county; 18 (b) May, with permission of the board and approval of the commissioner of the 19 Department for Local Government or his or her designee, employ any other 20 hourly personnel considered necessary and retain temporary services. Pay 21 raises for any personnel shall require approval of the board and the 22 commissioner of the Department for Local Government or his or her 23 designee; 24 (c) Shall carry out plans to implement Sections 1 to 5 of this Act and to exercise 25 those powers enumerated in the bylaws of the board; 26 (d) Shall, along with any staff with responsibilities so delegated by the executive 27 UNOFFICIAL COPY 25 RS BR 1556 Page 7 of 12 XXXX 2/19/2025 2:35 PM Jacketed director, ensure that all minutes, records, and orders of the authority and its 1 board are complete and available for public inspection, if necessary; 2 (e) Shall prepare narrative and financial reports of the authority's fiscal 3 obligations and submit these reports to the board at regularly scheduled 4 meetings or as otherwise directed; and 5 (f) May cast a tiebreaking vote in board decisions, but shall not be permitted to 6 cast a vote under any other circumstances. Until such time as an executive 7 director is hired, the chairperson of the board shall make the final 8 determination in the event of a tie vote of the board. 9 (13) The executive director, all full-time or part-time personnel, all seasonal 10 employees, and all contractual employees, if any, shall be paid from funds 11 accruing to the authority and authorized in a budget approved by the board, 12 unless the Department for Local Government has temporarily taken on the 13 responsibility of paying any of those employees. 14 (14) Board members shall serve without compensation, but may be reimbursed for 15 actual and necessary travel expenses incurred in the performance of their duties, 16 subject to Finance and Administration Cabinet administrative regulations. Board 17 members may have their lodging reimbursed by DBBDA. Any reimbursement 18 requests exceeding five hundred dollars ($500) per person shall be submitted to 19 the Department for Local Government for approval. 20 SECTION 3. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 21 READ AS FOLLOWS: 22 (1) The Dream Big Burnside Development Authority shall: 23 (a) Supervise the design, construction, financing, operations, and maintenance 24 within the RA and provide all management functions for the park, lodging 25 facilities, restaurants, boat facilities, campground, and other recreational or 26 entertainment facilities to include an 18-hole golf course, and any other 27 UNOFFICIAL COPY 25 RS BR 1556 Page 8 of 12 XXXX 2/19/2025 2:35 PM Jacketed property build, acquired, or leased pursuant to its powers under Sections 1 1 to 5 of this Act; 2 (b) Construct, develop, manage, maintain, operate, improvise, renovate, 3 finance, or otherwise provide for recreational activities on designated public 4 lands and private lands who have voluntarily entered into use agreements 5 with the board; 6 (c) Promote the growth and development of the reactional area, tourism, and 7 the hotel, restaurant, and entertainment industry within the RA and the 8 Commonwealth, through marketing the RA to enhance local economic and 9 tourism development; 10 (d) Establish agreements with other persons, businesses, agencies, 11 organizations, or any other entity to levy a surcharge on tickets for events, 12 activities, festivals, or functions that are cosponsored with other entities and 13 contribute to the authority's operating revenue; and 14 (e) Procure insurance against any losses in connection with its property, 15 licenses, easements, or contracts, including hold-harmless agreements, 16 operations, or assets in such amounts and from such insurers as the board 17 considers desirable. 18 (2) The board may carry out any of the following to accomplish the purposes of 19 Sections 1 to 5 of this Act: 20 (a) Acquire, own, and hold property, and all interests therein, by deed, 21 purchase, gift, devise, bequest, or lease, or by transfer from the State 22 Property and Buildings Commission, except that the authority shall not 23 acquire property through the exercise of the power of eminent domain; 24 (b) Dispose of any property acquired in any manner provided by law; 25 (c) Lease property, whether as lessee or lessor, and acquire or grant through 26 easement, license, or other appropriate legal form, the right to develop and 27 UNOFFICIAL COPY 25 RS BR 1556 Page 9 of 12 XXXX 2/19/2025 2:35 PM Jacketed use property and open it to the use of the public; 1 (d) In accordance with KRS 148.255, acquire authorization of the General 2 Assembly prior to sale, trade, or disposal of real property valued greater 3 than four thousand dollars ($400,000) that is owned by the Commonwealth 4 and managed by the Department of Parks; 5 (e) Mortgage or otherwise grant security interests in its property; 6 (f) Maintain sinking funds and reserves as the board determines appropriate 7 for the purposes of meeting future monetary obligations and needs of the 8 authority; however, contributions to a sinking fund during a fiscal year 9 shall not exceed ten percent (10%) of the total fees collected during the 10 prior year; 11 (g) Sue and be sued, plead and be impleaded, and complain and defend in any 12 court; 13 (h) Make contracts and execute instruments necessary for carrying on its 14 business, including contracts with any state agency, the federal government, 15 or any person, individual, partnership, or corporation to effect any or all of 16 the purposes of Sections 1 to 5 of this Act as follows: 17 1. Contracts shall go through a public bidding process; 18 2. Contracts for one thousand dollars ($1,000) or more shall be sent, 19 with at least three (3) bids from separate entities, to the Department 20 for Local Government for review and final approval; 21 a. Bids from entities with DBBDA participants are to be given 22 preference over competing bidders from outside of DBBDA 23 participants; and 24 b. If the Department for Local Government has not given a 25 response in the form of an approval or rejection after five (5) 26 business days from the date the department received the contract 27 UNOFFICIAL COPY 25 RS BR 1556 Page 10 of 12 XXXX 2/19/2025 2:35 PM Jacketed to be reviewed, it shall be considered approved; and 1 3. Solicit or bid to participate and enter into a public-private partnership; 2 (i) Accept grants and loans from and enter into contracts and other 3 transactions with any federal agency, regional commission, or state agency 4 for accomplishing the purposes of Sections 1 to 5 of this Act; 5 (j) Borrow money and issue bonds, security interests, or notes; 6 (k) Provide for and secure the payment of the bonds, security interests, or 7 notes; 8 (l) Provide for the rights of the holders of the bonds, security interests, or 9 notes; 10 (m) Purchase, hold, and dispose of any of its bonds, security interests, or notes; 11 (n) Accept gifts or grants of property, security interests, money, labor, supplies, 12 or services from any governmental unit or from any person, firm, or 13 corporation; 14 (o) Establish a recreational park system based upon contracts and agreements 15 with participating landowners. The board may enter into contracts with 16 landowners, and other persons holding an interest in the land being used 17 for its recreational facilities, to hold those landowners harmless with respect 18 to any claim in tort growing out of the use of the land for public recreation 19 or growing out of the recreational activities operated or managed by the 20 board from any claim, except a claim for damages proximately caused by 21 the willful or malicious conduct of the landowner or any of his or her 22 agents or employees; 23 (p) Establish a fee-based system of permits, user registrations, or other facility 24 access mechanisms as follows: 25 1. The fees may be imposed for access to and use of the trails, parking 26 facilities, visitor centers, or other park-related recreational purpose 27 UNOFFICIAL COPY 25 RS BR 1556 Page 11 of 12 XXXX 2/19/2025 2:35 PM Jacketed facilities or recreation activities that are part of the DBBDA or as an 1 admission to an event; 2 2. The fees shall be decided by the board; and 3 3. The DBBDA shall retain and use the revenue from fees for any 4 purposes consistent with Sections 1 to 5 of this Act and within the 5 guidelines in subsection (3) of this section; 6 (q) Promulgate administrative regulations in accordance with KRS Chapter 7 13A to govern use and maintenance of the DBBDA and any other matters 8 for effective management of the DBBDA; and 9 (r) Exercise all of the powers that a corporation may lawfully exercise under 10 the laws of the Commonwealth. 11 (3) The fees collected by the DBBDA are to be used within the following guidelines: 12 (a) To pay the salary of the executive director and all staff of the DBBDA; 13 (b) To reimburse travel expenses of board members including lodging, subject 14 to Finance and Administration Cabinet administrative regulations; 15 (c) To fund the construction, maintenance, and all necessary expenses of the 16 DBBDA system; 17 (d) To maintain a sinking fund with contributions to the fund during a fiscal 18 year not to exceed ten percent (10%) of the total fees collected during the 19 prior year and the total fund not to exceed a balance of one million dollars 20 ($1,000,000) at the end of any fiscal year; and 21 (e) Any remaining moneys not already appropriated in accordance with 22 Sections 1 to 5 of this Act at the end of the fiscal year are to be sent to the 23 Department for Local Government to be placed into an account to be used 24 exclusively for economic development grants in DBBDA participating 25 counties. 26 (4) Nothing in this section shall be construed as a waiver of sovereign immunity. 27 UNOFFICIAL COPY 25 RS BR 1556 Page 12 of 12 XXXX 2/19/2025 2:35 PM Jacketed SECTION 4. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 1 READ AS FOLLOWS: 2 (1) Revenue bonds and revenue refunding bonds of the authority issued under 3 Sections 1 to 5 of this Act do not constitute a debt of the Commonwealth or of any 4 political subdivision of the Commonwealth or a pledge of the faith and credit of 5 the Commonwealth or of any political subdivision, but the bonds shall be payable 6 solely from the funds provided for in Section 1 to 5 of this Act from revenues 7 resulting from the issuance of bonds. 8 (2) All bonds shall contain on the face of the bond a statement to the effect that 9 neither the Commonwealth nor any political subdivision of the Commonwealth is 10 obligated to pay the bond or the interest on the bond, except from revenues of the 11 recreational project or projects for which they are issued, and that neither the 12 faith or credit nor the taxing power of the Commonwealth or any political 13 subdivision of the Commonwealth is pledged to the payment of the principal or 14 the interest on the bonds. 15 SECTION 5. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 16 READ AS FOLLOWS: 17 A participating landowner who has a contractual agreement with the DBBDA for use 18 of private land as part of the RA does not waive any protection granted to the 19 landowner by KRS 411.190. 20