Request By:
Mr. James P. Melton
Executive Director
Kentucky School Boards Association
67 Fountain Place
Frankfort, Kentucky 40601
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Robert L. Chenoweth, Acting Deputy Attorney General
As the Executive Director of the Kentucky School Boards Association you have asked the Office of the Attorney General for an advisory opinion as to the eligibility of the Eastern Kentucky Educational Development Corporation (EKEDC) to participate in programs operated by the Kentucky School Boards Insurance Trust. The programs offered by the Trust are for Workman's Compensation and Unemployment Compensation coverage. You provided us with a copy of the Trust Agreement.
EKEDC was formed and approved by the Attorney General to operate under the Interlocal Cooperation Act as provided under KRS 65.210 to 65.300. A copy of the Interlocal Agreement for EKEDC was also provided to this office.
The question you have presented for our consideration is a difficult one and one with no legal precedents. For the reasons we will develop below, it is our opinion that EKEDC may participate in the Kentucky School Boards Insurance Trust upon becoming a member of the Kentucky School Boards Association.
For purposes of starting to analyze the situation we turn to the statutory law under which EKEDC was formed. KRS 65.210 to 65.300 may be referred to as "the Interlocal Cooperation Act. " KRS 65.210. The purpose of this Act is stated in KRS 65.220 in the following manner:
"It is the purpose of KRS 65.210 to 65.300 to permit local governmental units to make the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby to provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population and other factors influencing the needs and development of local communities."
This office has previously concluded that local school districts are public agencies which may take advantage of the benefits to be derived from entering into an Interlocal Agreement with each other. KRS 65.240(1), (2) and see OAG 74-351. KRS 65.240(1) also provides that:
"Any power or powers, privileges or authority exercised or capable of exercise by a public agency of this state may be exercised and enjoyed jointly with any other public agency of this state. . . ."
Basically, we believe what this means is that what a public agency can do by itself can usually be done jointly with other public agencies under an Interlocal Cooperation Agreement, assuming no statutory bar exists to the contrary.
EKEDC was created under the Interlocal Cooperation Act and approved by the Attorney General as required by law (KRS 65.260) on September 8, 1978. The contents of the EKEDC agreement disclose, as is required by law, "the precise organization, composition and nature of any separate, legal or administrative entity created thereby, together with a statement of the powers delegated thereto. . . ." KRS 65.250(1)(b). Article V of the Agreement contains the "purpose" of EKEDC and reads:
"The basic purpose of this agreement is to provide a more expedient vehicle for providing participating districts with involvative educational programs and if EKEDC serves as its own LEA (Local Educational Agency), then more services and materials can be provided per pupil for the money being expended." (Emphasis supplied. )
In Article XIII, we find the following language:
"Be it resolved that the Superintendents serving as member of the Eastern Kentucky Educational Development Corporation Board of Directors do hereby enter into an Interlocal Cooperation Agreement to establish a separate administrative board as an entity for the Eastern Kentucky Educational Development Corporation." (Emphasis supplied. )
Looking now at the basic question you have presented as to whether EKEDC is eligible to participate in programs operated by the Kentucky School Boards Insurance Trust, we must consider the Agreement and Declaration of Trust. In Article I are provided the definitions to be used in the Trust Agreement. Section 1 defines "members" as follows:
"'Members' is defined to mean the school districts of the Commonwealth of Kentucky and other tax-supported educational agencies which are members of the Association."
Although each of the component parts of EKEDC, the respective school districts, are members of the Kentucky School Boards Association, as we noted above, EKEDC is a separate entity, its own local educational agency. It has legal viability by itself. We do not believe EKEDC can bootstrap itself as a member of the Kentucky School Boards Association solely because its parts are members. Thus, we are of the opinion the critical point to be resolved is EKEDC itself becoming a member of the Kentucky School Boards Association. If that were to be accomplished, subject to appropriate consideration under the Kentucky School Boards Association's constitution, then we believe it would follow that EKEDC could be a "member" to participate in the Kentucky School Boards Association's insurance trust.
We hope we have been of some assistance to you regarding this matter.