AN ACT relating to local public agency transactions.

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AN ACT relating to local public agency transactions. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 45A.385 is amended to read as follows: 3
(1) The local public agency may use small purchase procedures for any contract for 4
which a determination is made that the aggregate amount of the contract does not 5
exceed fifty thousand dollars ($50,000) [forty thousand dollars ($40,000)] if small 6
purchase procedures are in writing and available to the public. 7
(2) Beginning in calendar year 2030, the small purchase maximum amount set out in 8
subsection (1) of this section shall b e increased by ten thousand dollars ($10,000) 9
every five (5) years effective on January 1 of each year. The Finance and 10
Administration Cabinet shall, through a technical advice memorandum or other 11
official means of communication, announce the small purchas e maximum 12
amount in effect for the current year, and shall also prominently post that 13
information on its website. 14
Section 2. KRS 45A.420 is amended to read as follows: 15
(1) Any local public agency may enter into an agreem ent for cooperative purchasing 16
with any other local public agency. When the contracting local public agency 17
contracts for supplies, services or construction pursuant to KRS 45A.365, 45A.370, 18
45A.375, or 45A.380, all other parties to the agreement shall be deemed to have 19
complied with the provisions of those sections. 20
(2) Nothing in KRS 45A.345 to 45A.990 shall deprive a local public agency from 21
negotiating with vendors for supplies where such supplies are the subject of a price 22
agreement with the Commonwealth of Kentucky provided, however, that no 23
contract executed under t his section would authorize a price higher than is 24
contained in the price agreement with the Commonwealth of Kentucky for such 25
specific supplies. 26
(3) For agreements that do not establish a fixed unit price, a local public agency may 27
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make purchases using an established discount, quote, formula, or other pricing 1
method as established by the Commonwealth in the agreement. A local public 2
agency shall retain records documenting its compliance with the procedures 3
required in the applicable agreement. 4
(4)[(3)] Nothing in KRS 45A.345 to 45A.990 shall deprive a local school district from 5
acquiring supplies outside of price agreements with the Commonwealth of 6
Kentucky if the supplies meet the same specifications as the contract items and the 7
supplies are purchased at a lower price than is contained in the price agreement with 8
the Commonwealth of Kentucky for such specific supplies and the purchase does 9
not exceed two thousand five hundred dollars ($2,500). 10
Section 3. KRS 82.083 is amended to read as follows: 11
(1) As used in this section, "independent appraisal" means an appraisal made by: 12
(a) An individual or organization not affiliated with the city or its officers or 13
employees, using a generally accepted national or professional standard; or 14
(b) A city's officers or employees using: 15
1. A nationally published valuation of property based on the most recent 16
edition of the publication; or 17
2. For personal property with no applicable nationally published 18
valuation standard, a generally acce pted method to determine a good -19
faith estimate of the value of the personal property. 20
(2) A city may sell or otherwise dispose of any of its real or personal property. 21
(3) Before selling or otherwise disposing of any real or personal property that has any 22
value, the city shall make a written determination setting forth and fully describing: 23
(a) The real or personal property; 24
(b) Its intended use at the time of acquisition; 25
(c) The reasons why it is in the public interest to dispose of it;[ and] 26
(d) The method used to estimate value when the property is personal property 27
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appraised under subsection (1)(b)2. of this section; and 1
(e) The method of disposition to be used. 2
(4) Real or personal property may be: 3
(a) Transferred, with or without compensation, to another governmental agency; 4
(b) Transferred, with or without compensation, for economic development 5
purposes, which shall include but not be limited to real property transfers for 6
the elimination of blight; 7
(c) Sold at public auction following publication of the auction in accordance with 8
KRS 424.130(1)(b); 9
(d) Sold by electronic auction following publication of the auction, including the 10
uniform resource link (URL) for the site of the electronic auction, in 11
accordance with KRS 424.130(1)(b); 12
(e) Sold by seale d bids in accordance with the procedure for sealed bids under 13
KRS 45A.365(3) and (4); 14
(f) Traded towards the purchase of the same or similar type of property, if the 15
trade-in value received equals or exceeds the actual fair market value of the 16
property as determined using an independent appraisal as defined in 17
subsection (1) of this section; 18
(g) Sold for its appraised fair market value or a greater amount if the property is 19
valued at ten thousand dollars ($10,000) or less in an independent appraisal. 20
Property sold under this paragraph may not be sold to a city officer or 21
employee or family member of a city officer or employee as defined in the 22
city's ethics ordinance adopted under KRS 65.003; 23
(h) Notwithstanding subsection (3) of this section, sold for scrap or disposed of as 24
garbage in a manner consistent with the public interest if the property has no 25
value, or is of negligible value as determined by an independent appraisal; 26
(i) Sold by the Finance and Administration Cabinet under an agreement with the 27
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city; or 1
(j) Notwithstanding subsection (3) of this section, when the property is an animal 2
used in service by the city, given to the animal's primary handler or trainer, 3
without the payment of compensation, when the animal is retired or is no 4
longer capable of performing service to the city. 5
(5) If a city receives no bids for the real or personal property, either at public or 6
electronic auction or by sealed bid, the property may be disposed of, consistent with 7
the public interest, in any manner deemed appropriate by th e city. In those 8
instances, a written description of the property, the method of disposal, and the 9
amount of compensation, if any, shall be made. 10
(6) Any compensation resulting from the disposal of this real or personal property shall 11
be transferred to the general fund of the city. 12
Section 4. KRS 82.084 is amended to read as follows: 13
KRS 45A.345 to 45A.460 and 424.260 shall not apply to city governments, urban -county 14
governments, consolidated local governments, or air boa rds identified in and operating 15
under the provisions of KRS 183.142(1) for the purchase of: 16
(1) Products or services when there is a single source of the product or service to be 17
procured within a reasonable geographic area; 18
(2) Products needed as replacement parts for personal property or equipment where the 19
need cannot be reasonably anticipated and maintaining an inventory of replacement 20
parts is not feasible;[ and] 21
(3) Vehicles and equipment installed on vehicles that are used exclusively for law 22
enforcement purposes, if the purchaser obtains at least three (3) quotes prior to 23
making the purchase and retains records documenting the quotes; and 24
(4) Products or services that are provided by: 25
(a) Entities recognized by the Office of Vocational Rehabilitation under KRS 26
Chapter 163 that operate programs for the rehabilitation of individuals who 27
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are blind or visually impaired; 1
(b) Agencies for individuals with severe disabilities as described in KRS 2
45A.465; 3
(c) A qualified veterans' workshop providing job and e mployment-skill training 4
to veterans where such a workshop is operated by the United States 5
Department of Veterans Affairs; 6
(d) Nonprofit organizations, employment services organizations, or other private 7
business organizations with established operations within the jurisdiction of 8
the city, urban-county government, or consolidated local government with the 9
main mission or business purpose of serving individuals with disabilities by 10
offering transitional or supported employment services or other rehabilitat ive 11
programs and services, including but not limited to serving individuals with 12
severe mental or physical disabilities or those recovering from substance 13
abuse disorders; or 14
(e) Nonprofit community service organizations operating within the jurisdiction 15
of the city, urban-county government, or consolidated local government when 16
there is a determination in the official record of the legislative body that the 17
purchase of the products or services would serve a mutual benefit to the 18
government and the organization by: 19
1. Furthering the purposes of the organization; 20
2. Providing a service or product needed by the government; 21
3. Advancing a specific public purpose; and 22
4. Serving the best interest of the public. 23
If two (2) or more organizations meet the qualific ations set out in this 24
paragraph, then the government shall award the contract to one (1) of the 25
qualifying organizations using the selection criteria of its adopted competitive 26
bidding process. 27
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Section 5. KRS 424.260 is amended to read as follows: 1
(1) Except where a statute specifically fixes a larger sum as the minimum for a 2
requirement of advertisement for bids, no city, county, or district, or board or 3
commission of a city or county, or sheriff or county clerk, may ma ke a contract, 4
lease, or other agreement for: 5
(a) Materials; 6
(b) Supplies, except perishable foods such as meat, poultry, fish, egg products, 7
fresh vegetables, and fresh fruits; 8
(c) Equipment; or 9
(d) Contractual services other than professional; 10
involving an expenditure of more than fifty thousand dollars ($50,000) [forty 11
thousand dollars ($40,000)] without first making newspaper advertisement for bids. 12
This subsection shall not apply to the transfer of property between governmental 13
agencies as authorized in KRS 82.083(4)(a). 14
(2) If the fiscal court requires that the sheriff or county clerk advertise for bids on 15
expenditures of less than fifty thousand dollars ($50,000) [forty thousand dollars 16
($40,000)], the fiscal court requirement shall prevail. 17
(3) (a) Nothing in this statute shall limit or restrict the ability of a local school district 18
to acquire supplies and equipment outside of the bidding procedure if those 19
supplies and equipment meet the specifi cations of the contracts awarded by 20
the Office of Material and Procurement Services in the Office of the 21
Controller within the Finance and Administration Cabinet or a federal, local, 22
or cooperative agency and are available for purchase elsewhere at a lower 23
price. A board of education may purchase those supplies and equipment 24
without advertising for bids if, prior to making the purchases, the board of 25
education obtains certification from the district's finance or purchasing officer 26
that the items to be purch ased meet the standards and specifications fixed by 27
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state price contract, federal (GSA) price contract, or the bid of another school 1
district whose bid specifications allow other districts to utilize their bids, and 2
that the sales price is lower than that established by the various price contract 3
agreements or available through the bid of another school district whose bid 4
specifications would allow the district to utilize their bid. 5
(b) The procedures set forth in paragraph (a) of this subsection shall not be 6
available to the district for any specific item once the bidding procedure has 7
been initiated by an invitation to bid and a publication of specifications for 8
that specific item has been published. In the event that all bids are rejected, 9
the district ma y again avail itself of the provisions of paragraph (a) of this 10
subsection. 11
(4) This requirement shall not apply in an emergency if the chief executive officer of 12
the city, county, or district has duly certified that an emergency exists, and has filed 13
a co py of the certificate with the chief financial officer of the city, county, or 14
district, or if the sheriff or the county clerk has certified that an emergency exists, 15
and has filed a copy of the certificate with the clerk of the court where his necessary 16
office expenses are fixed pursuant to KRS 64.345 or 64.530, or if the 17
superintendent of the board of education has duly certified that an emergency 18
exists, and has filed a copy of the certificate with the chief state school officer. 19
(5) The provisions of su bsection (1) of this section shall not apply for the purchase of 20
wholesale electric power for resale to the ultimate customers of a municipal utility 21
organized under KRS 96.550 to 96.900. 22
(6) Subsection (1) of this section shall not apply to purchases for products or services 23
made pursuant to KRS 82.084. 24
(7) Beginning in calendar year 2030, the small purchase maximum amount set out in 25
subsections (1) and (2) of this section shall be increased by ten thousand dollars 26
($10,000) every five (5) years effective on January 1 of each year. The Finance 27
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and Administration Cabinet shall, through a technical advice memorandum or 1
other official means of communication, announce the small purchase maximum 2
amount in effect for the current year, and shall also prominently p ost that 3
information on its website. 4