House committee shortens municipal utility notice from 18 to 6 months
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Summary
A House committee unanimously approved HB 313 to cut the statutory notice municipalities must give utility providers before a contract expires from 18 months to 6 months, with proponents calling the change a practical update to account for market shifts.
A Kentucky House committee on Feb. 5 voted unanimously to approve House Bill 313, reducing the statutory notice period that cities must give a utility provider before a contract expires from 18 months to six months.
Rep. Ryan Bivens (House District 24), who introduced the bill, said the change is “common sense” and will help municipalities avoid being locked into terms that become unfavorable when market conditions change over a year and a half. "You start thinking about a year and a half. A lot of things can change in a year and a half," Bivens said.
President Bowman asked why the committee should shorten the window; Bivens replied that the shorter period brings municipal contracting into alignment with current market realities and that utility companies generally support the change. After brief discussion the clerk called the roll and the chair announced the bill "does pass unanimously," and that it will be placed on the House floor for further consideration.
The bill as presented would amend the current statute that requires 18 months' notice; the proposal is to strike "18 months" and substitute "six months." Committee members did not propose further substantive amendments in committee.
The next step is House floor consideration. The committee’s favorable vote means HB 313 will proceed to the full House calendar for debate and a final vote.