AN ACT relating to real property.

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AN ACT relating to real property. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 45A.045 is amended to read as follows: 3
(1) The Finance and Administration Cabinet shall serve as the central procurement and 4
contracting agency of the Commonwealth. The cabinet shall: 5
(a) [The cabinet shall ] Require all agencies to furnish an estimate of specific 6
needs for supplies, materials, and equipment to be purchased by competitive 7
bidding for the purpose of permitting scheduling of purchasing in large 8
volume. The cabinet shall establish and enforce schedules for purchasing 9
supplies, materials, and equipment. In addition, prior to the beginning of each 10
fiscal year all agencies shall submit to the Finance and Administration 11
Cabinet an estimate of all needs for supplies, materials, and equipment during 12
that year which will have to be required through competitive bidding;[.] 13
(b) [The Finance and Administration Cabinet shall ] Have the authority [power], 14
with the approval of the secretary of the Finance and Administration Cabinet, 15
to transfer between departments, to salvage, to exchan ge, and to condemn 16
supplies, equipment, and real property; and[.] 17
(c) [The Finance and Administration Cabinet shall ] Attempt in every practicable 18
way to ensure that state agencies are fulfilling their business needs through the 19
application of the best value criteria. 20
(2) The Finance and Administration Cabinet shall recommend regulations, rules, and 21
procedures and shall h ave supervision over all purchases by the various spending 22
agencies, except as otherwise provided by law, and, subject to the approval of the 23
secretary of the Finance and Administration Cabinet, shall promulgate 24
administrative regulations to govern purchas ing by or for all these agencies. The 25
cabinet shall publish a manual of procedures which shall be incorporated by 26
reference as an administrative regulation in accordance with [pursuant to] KRS 27
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Chapter 13A. This manual shall be distributed to agencies and shall be revised upon 1
issuance of amendments to these procedures. No purchase or contract shall be 2
binding on the state or any agency thereof unless approved by the Finance and 3
Administration Cabinet or made under general administrative regulations 4
promulgated by the cabinet. 5
(3) The Finance and Administration Cabinet shall purchase or otherwise acquire, or, 6
with the approval of the secretary, may delegate and control the purchase and 7
acquisition of the combined requirements of all spending agencies of the st ate, 8
including, but not limited to, interests in real property, contractual services, rentals 9
of all types, supplies, materials, equipment, and services. 10
(4) (a) The Finance and Administration Cabinet shall sell, trade, or otherwise dispose 11
of any interest in real property of the state which is not needed, or has become 12
unsuitable for public use, or would be more suitable to the public's interest if 13
used in another manner, as determined by the secretary of the Finance and 14
Administration Cabinet. 15
(b) The determination of the secretary of the Finance and Administration Cabinet 16
shall be set forth in an order and shall be reached only after review of a 17
written request by the agency desiring to dispose of the real property. This 18
request shall describe the real property and state the reasons why the agency 19
believes the real property should be disposed. 20
(c) Before the disposal of real property, the secretary of the Finance and 21
Administration Cabinet shall determine that: 22
1. No other state agency has a purpose for the real property; and 23
2. The city, county, urban -county government, or consolidated local 24
government where the real property is located does not have an 25
ownership interest in the real property. 26
(d) All instruments required by law to be recorded which conv ey any interest in 27
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any real property so disposed of shall be executed and signed by the secretary 1
of the Finance and Administration Cabinet and approved by the Governor. 2
(e) Unless the secretary of the Finance and Administration Cabinet deems it in 3
the best interest of the state to proceed otherwise, all interests in real property 4
shall be sold either by invitation of sealed bids or by public auction. The 5
selling price of any interest in real property shall not be less than the appraised 6
value thereof as d etermined by the cabinet, or the Transportation Cabinet for 7
the requirements of that cabinet. 8
(f) A state agency notifying the Finance and Administration Cabinet of its 9
intent to dispose of any interest in real property assigned to the state agency 10
shall c ontinue to provide maintenance and security of the existing 11
structures, buildings, and land included in the real property until the sale or 12
other disposition is complete. 13
(g) In the event the Finance and Administration Cabinet receives no responsive 14
bids f or real property being disposed of, either by sealed bid or by public 15
auction, the real property may be disposed of, consistent with the public 16
interest, in any manner deemed appropriate by the secretary of the Finance 17
and Administration Cabinet. A written description of the real property, the 18
method of disposal, and the amount of compensation, if any, shall be made 19
by the secretary of the Finance and Administration Cabinet. 20
(5) (a) If state-owned real property is observed to be abandoned, or it has not bee n 21
substantially utilized for a public use, the chief executive officer of the city, 22
county, urban-county government, or consolidated local government where 23
the real property is located may: 24
1. Receive notice inquiring about the real property from a citizen , 25
developer, or consultant as described in paragraph (d) of this 26
subsection; 27
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2. Develop a plan for public use of the real property; and 1
3. Submit a written notice to the secretary of the Finance and 2
Administration Cabinet and the Capital Planning Advisory Board: 3
a. Expressing interest in the use of the real property; 4
b. Requesting state utilization information from the Finance and 5
Administration Cabinet on the availability of the real property 6
for disposal; and 7
c. Requesting the real property to be conside red for sale, trade, or 8
disposal. 9
(b) Within sixty (60) calendar days of receiving written notice under paragraph 10
(a)3. of this subsection, the secretary of Finance and Administration 11
Cabinet shall send a written response to the chief executive officer of the 12
city, county, urban -county government, or consolidated local government 13
and the Capital Planning Advisory Board that includes but is not limited to: 14
1. The current occupancy and use of the real property; 15
2. If the Finance and Administration Cabinet or other applicable state 16
agency intends to evaluate real property for disposal under subsection 17
(4) of this section or to maintain its ownership interest in the real 18
property for public use; and 19
3. Provide a description of the real property, current status, available and 20
planned occupancy, utilization, restrictions of use, and a timeline for 21
full utilization of the property. 22
(c) If the applicable state agency determines to request disposal of the real 23
property, the state agency and Finance and Administration Cabinet shall 24
proceed in accordance with subsection (4) of this section. 25
(d) A citizen, developer, or consultant may notify the chief executive officer of 26
the city, county, urban -county government, or consolidated local 27
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government where state-owned real property is located if he or she observes 1
that the state-owned real property is abandoned or not substantially utilized 2
for public use. 3
(6) The Finance and Administration Cabinet shall sell, trade, or otherwise dispose of all 4
personal property of the state that is not needed, or has become unsuitable for 5
public use, or would be more suitable to the public's interest if used in another 6
manner, or, with the approval of the secretary, may delegate the sale, trade, or other 7
disposal of the personal property. In the event the authority is delegated, the method 8
for disposal shall be determined by the agency head, in accordance with 9
administrative regulations promulgated by the Finance and Administration Cabinet, 10
and shall be set forth in a document describing the property and stating the method 11
of disposal and the reasons why the agency believes the property should be 12
disposed of. In the event the aut hority is not delegated, requests to the Finance and 13
Administration Cabinet to sell, trade, or otherwise dispose of the property shall 14
describe the property and state the reasons why the agency believes the property 15
should be disposed of. The method for di sposal shall be determined by the Division 16
of Surplus Properties, and approved by the secretary of the Finance and 17
Administration Cabinet or his or her designee. 18
(7)[(6)] The Finance and Administration Cabinet shall exercise general supervision 19
and control over all warehouses, storerooms, and stores and of all inventories of 20
supplies, services, and construction belonging to the Commonwealth. The cabinet 21
shall promulgate administrative regulations to require agencies to take and maintain 22
inventories of plant property, buildings, structures, other fixed assets, and 23
equipment. The cabinet shall conduct periodic physical audits of inventories. 24
(8)[(7)] The Finance and Administration Cabinet shall establish and maintain 25
programs for the development and use of pur chasing specifications and for the 26
inspection, testing, and acceptance of supplies, services, and construction. 27
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(9)[(8)] Nothing in this section shall prevent the Finance and Administration Cabinet 1
from negotiating with vendors who maintain a General Servi ces Administration 2
price agreement with the United States of America or any agency thereof. No 3
contract executed under this provision shall authorize a price higher than is 4
contained in the contract between the General Services Administration and the 5
vendor affected. 6
(10)[(9)] Except as provided in KRS Chapters 175, 176, 177, and 180, and subject to 7
the provisions of this code, the Finance and Administration Cabinet shall purchase 8
or otherwise acquire all real property determined to be needed for state use, upon 9
approval of the secretary of the Finance and Administration Cabinet as to the 10
determination of need and as to the action of purchase or other acquisition. The 11
amount paid for this real property shall not exceed the appraised value as 12
determined by th e cabinet or the Transportation Cabinet (for such requirements of 13
that cabinet), or the value set by eminent domain procedure. Subject to the 14
provisions of this code, real property or any interest therein may be purchased, 15
leased, or otherwise acquired fro m any officer or employee of any agency of the 16
state upon a finding by the Finance and Administration Cabinet, based upon a 17
written application by the head of the agency requesting the purchase, and approved 18
by the secretary of the Finance and Administrati on Cabinet and the Governor, that 19
the employee has not either himself or herself, or through any other person, 20
influenced or attempted to influence either the agency requesting the acquisition of 21
the property or the Finance and Administration Cabinet in co nnection with such 22
acquisition. Whenever such an acquisition is consummated, the request and finding 23
shall be recorded and kept by the Secretary of State along with the other documents 24
recorded pursuant to the provisions of KRS Chapter 56. 25
(11)[(10)] The F inance and Administration Cabinet shall maintain records of all 26
purchases and sales made under its authority and shall make periodic summary 27
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reports of all transactions to the secretary of the Finance and Administration 1
Cabinet, the Governor, and the Gener al Assembly. The Finance and Administration 2
Cabinet shall also report trends in costs and prices, including savings realized 3
through improved practices, to the above authorities. The Finance and 4
Administration Cabinet shall also compile an annual report of state purchases by all 5
spending agencies in the state's statewide accounting and reporting system. The 6
report format shall include, but not be limited to, dollar amount, volume, type of 7
purchase, and vendor. 8
(12)[(11)] For capital construction projects, s ubject to the provisions of this code and 9
KRS 45A.180, the procurement may be on whichever of the following alternative 10
project delivery methods, in the judgment of the secretary of the Finance and 11
Administration Cabinet after first considering the traditi onal design -bid-build 12
project delivery method, offers the best value to the taxpayer: 13
(a) A design-build basis; or 14
(b) A construction management-at-risk basis. 15
Proposals shall be reviewed by the engineering staff to assure quality and value, and 16
compliance with procurement procedures. All specifications shall be written to 17
promote competition. Nothing in this section shall prohibit the procurement of 18
phased bidding or construction manager-agency services. 19
(13)[(12)] The Finance and Administration Cabinet s hall have control and supervision 20
over all purchases of energy-consuming equipment, supplies, and related equipment 21
purchased or acquired by any agency of the state as provided in this code, and shall 22
promulgate administrative regulations to designate the manner in which an energy -23
consuming item will be purchased so as to promote energy conservation and 24
acquisition of energy efficient products. Major energy components shall be 25
amortized on a seven (7) to ten (10) years' recovery basis and shall take into 26
consideration the projected cost of fuel. The Finance and Administration Cabinet, in 27
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consultation with the Cabinet for Economic Development, shall conduct a thorough 1
economic feasibility analysis on any major energy-using component of at least three 2
million (3,000,000) BTU's per hour heat input and shall issue a certificate of 3
economic feasibility prior to the Finance and Administration Cabinet's purchasing 4
or retrofitting any such component that utilizes any fuel other than coal. The 5
economic feasibility ana lysis shall consist of life -cycle cost comparisons of a 6
component that would utilize coal and one(s) that would utilize any fuel other than 7
coal. For the analysis, the Finance and Administration Cabinet shall provide 8
detailed estimates of equipment purchas e price, installation cost, annual operation 9
and maintenance costs, and usage patterns of energy-using components. 10
Section 2. KRS 56.463 is amended to read as follows: 11
The cabinet shall have the power and duty: 12
(1) To determine the comparative needs and demands of the various state agencies for 13
acquiring real estate and for building projects; 14
(2) To purchase or otherwise acquire all real property determined to be needed for state 15
use and upon the approval of the secretary of the Finance and Administration 16
Cabinet as to the determination of need and as to the action of purchase or other 17
acquisition, except as provided in KRS Chapters 175, 176, 177, and 180. All such 18
acquisitions of real property or interests therein shall be made in accordance with 19
KRS 45A.045; 20
(3) (a) To sell or otherwise dispose of all property, including any interest in real 21
property, of the state that is not needed or has become unsuitable for public 22
use or would be more suitable consistent with the public interest for some 23
other use as determined by the secretary of the Finance and Administration 24
Cabinet. All such sales or other disposition shall be made in accordance with 25
KRS 45A.045.[;] 26
(b) A state ag ency notifying the Finance and Administration Cabinet of its 27
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intent to dispose of any interest in real property assigned to the state agency 1
shall continue to provide maintenance and security of the existing 2
structures, buildings, and land included in the real property until the sale or 3
other disposition is complete in accordance with Section 1 of this Act. 4
(4) (a) To control the use of any real property owned or otherwise held by the 5
Commonwealth, or any state agency, and to determine for what periods of 6
time and for what purposes any state agency may use the same, including the 7
agency for whose use it was initially acquired or improved, and to determine 8
what appropriate uses shall be made of such real property during periods that 9
the cabinet finds the same is not required for the purposes of any particular 10
state agency. The cabinet shall allocate to the General Assembly and the 11
Legislative Research Commission all space within the New State Capitol 12
Annex in the basement and on the first, second, third, and f ourth floors, 13
excluding: 14
1. Mechanical areas, public entrances, vestibules, and restrooms; and 15
2. The following additional space, as allocated on January 1, 2023: 16
a. Areas in the basement occupied by the Kentucky State Police and 17
Facilities Security; 18
b. Areas in the basement operated as the snack bar and cafeteria, as 19
well as storage areas related to the operation of the snack bar and 20
cafeteria; 21
c. The area in the basement operated as a nurse's station; 22
d. The area in the basement used as an automated telle r machine 23
(ATM); 24
e. The office space in the basement occupied by the Secretary of 25
State; 26
f. Utility spaces in the basement west wing and east wing 27
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northernmost hallways occupied by janitorial, maintenance, and 1
mechanical staff; 2
g. The loading dock in the rear of the annex basement, along with the 3
office space immediately adjacent to the loading d ock on the back 4
wall of the annex, provided that the General Assembly and the 5
Legislative Research Commission shall be given access to and use 6
of the loading dock and the receiving areas adjacent to the loading 7
dock; and 8
h. Office and studio space on the f irst floor currently occupied and 9
used for broadcasting purposes by Kentucky Educational 10
Television. 11
All space assigned to the legislative branch and plans, uses, furnishings, and 12
equipment therefor are subject to the specific approval of the Legislative 13
Research Commission; 14
(b) All additional space in the New State Capitol Annex, not specifically 15
allocated for use by the General Assembly and the Legislative Research 16
Commission in paragraph (a) of this subsection, shall be allocated for the use 17
of the legi slative branch, with occupancy by the legislative branch to be 18
determined by the Legislative Research Commission, upon a vote of a 19
majority of the entire membership of the Legislative Research Commission; 20
(c) In order for the General Assembly and the Legis lative Research Commission 21
to efficiently utilize the space provided by paragraphs (a) and (b) of this 22
subsection, the cabinet shall enter into a memorandum of understanding with 23
the Legislative Research Commission on or about February 1, 2024, and as 24
often as every two (2) years thereafter at the request of the Legislative 25
Research Commission, to establish tenancy terms, including but not limited to 26
building maintenance, repairs, renovations, and upgrades; facility security; 27
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janitorial services; and applic able rental and utilities rates. The Legislative 1
Research Commission shall at any time, and upon at least sixty (60) days' 2
notice, be authorized to discontinue the cabinet's provision of janitorial 3
services for the New State Capitol Annex and to enter into a separate contract 4
for the provision of those services, with the applicable rental and utilities rates 5
to be proportionately reduced to reflect that separate contract, provided that 6
the Legislative Research Commission may also at any time, and upon at le ast 7
sixty (60) days' notice, elect to have the cabinet continue or reinstate the 8
provision of those janitorial services at the cabinet's expense; 9
(d) For the purposes of this subsection, real property shall include the parking 10
areas adjacent to the New State Capitol and the New State Capitol Annex, and 11
the cabinet shall allocate to the General Assembly and the Legislative 12
Research Commission all parking spaces within the Capitol campus parking 13
garage, all parking spaces in the east, south, and west parking lots of the New 14
State Capitol Annex, and all parking spaces in the west parking lot of the New 15
State Capitol, except for those spaces in the west parking lot of the New State 16
Capitol allocated, as of January 1, 2023, to the Supreme Court of Kentucky, 17
the L ieutenant Governor, the Attorney General, and the Secretary of State. 18
Any further allocation of any parking spaces allocated pursuant to this 19
paragraph shall be within the sole discretion of the Legislative Research 20
Commission or its designee; and 21
(e) To determine the housing and furnishings needs of the various state agencies 22
located in Frankfort and to establish and put into effect a permanent program 23
for housing them. Subject to paragraphs (a) and (b) of this subsection, the 24
cabinet is also authorized and directed to allocate office space and furnishings 25
in existing public buildings located in Frankfort, exclusive of the third and 26
fourth floors of the New State Capitol and the space in the New State Capitol 27
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Annex allocated to the legislative branch, accor ding to the needs of the 1
various agencies. When necessary, the cabinet is authorized to provide 2
additional office space and furnishings in Frankfort under any building 3
program the cabinet deems most advisable and economical for the state. The 4
permanent housing program shall include provisions for housing the General 5
Assembly and its related agencies, including the Legislative Research 6
Commission, and its subcommittees, the executive offices, the Supreme Court 7
and the clerk of the Supreme Court, the Departme nt of Law and the law 8
library, in the New State Capitol, provided the General Assembly and the 9
Legislative Research Commission shall have complete control and exclusive 10
use of the third and fourth floors of the New State Capitol and shall have 11
exclusive use of the space in the New State Capitol Annex allocated to them 12
under paragraphs (a) and (b) of this subsection. If there be any additional 13
space in the Capitol, it shall be assigned to agencies whose activities are most 14
closely related to the agencies dir ected to be located permanently in the 15
Capitol; 16
(5) To acquire, by condemnation in the manner provided in the Eminent Domain Act of 17
Kentucky, any real estate necessary for use by the state or by any state agency, 18
when the cabinet is unable to agree with th e owner thereof on a price for such real 19
estate; 20
(6) To lease any real property, or any interest in such real property, owned by the state 21
or any agency thereof, in accordance with KRS 45A.045; 22
(7) To provide for and adopt plans and specifications as may b e necessary, to provide 23
adequate public notice for and receive bids for any expenditures proposed to be 24
made, to award contracts for the purpose authorized, to supervise construction and 25
make changes and revisions in plans and specifications or in construc tion as may 26
become necessary, and generally to do any and all other things as may become 27
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necessary or expedient in order to effectively fulfill and carry out the purposes of 1
this chapter, including the right to employ clerks, engineers, statisticians, arch itects, 2
or other persons required to be employed in order to fulfill the functions of the 3
Commonwealth relating to state property and buildings provided in KRS 56.450 to 4
56.550; and 5
(8) To adopt rules and promulgate administrative regulations as may be nec essary to 6
govern the acquisition, control, and disposition of the real property to which this 7
section is applicable. 8
Section 3. KRS 27A.210 is amended to read as follows: 9
(1) The following books and records shall be maintained by the State Law Library: 10
(a) All copies of Volumes 1 to 77 of the Kentucky Reports; 11
(b) Twenty-five (25) copies each of Volumes 78 to 314 of the Kentucky Reports; 12
(c) Two (2) sets of all future publications of the journals and nine (9) sets of the 13
Acts of the General Assembly; and 14
(d) Two (2) sets of the official Kentucky statute publications. 15
(2) The state law librarian shall arrange with the proper official of each state of the 16
United States and of the United States and its territories for the exc hanges of the 17
statutes and the acts of the legislatures of each state and of Congress. When an 18
exchange is agreed upon, the state law librarian shall send to the officer one (1) 19
copy of the Acts of the General Assembly and one (1) set of statutes as soon a s they 20
are ready for distribution. 21
(3) Copies of acts, statutes, and other materials required to be kept by the state law 22
librarian and to be made available for exchange shall be furnished to the state law 23
librarian, without charge, by the agency or offici al responsible for the distribution 24
of same. 25
(4) The state law librarian may arrange for the distribution or disposal of materials held 26
by the State Law Library upon concurrence of the administrative assistant to the 27
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Chief Justice responsible for law library operations. 1
(5) The state law librarian may acquire, by purchase, exchange, donation, or otherwise, 2
books and other materials the librarian deems suitable for the holdings of the State 3
Law Library. 4
(6) The state law librarian may, with the concurrence o f the administrative assistant to 5
the Chief Justice responsible for law library operations, sell any surplus books in 6
the State Law Library that have a market value, collect the funds received therefor, 7
and deposit them in the ["]state law library surplus books fund,["] which is hereby 8
created in the State Treasury. The ["]state law library surplus books fund ["] shall 9
not lapse. The state law librarian may reinvest the funds in other books and 10
materials that the librarian deems suitable for the holdings of the State Law Library. 11
The provisions of KRS 45A.045 (6)[(5)] concerning the powers and duties of the 12
Finance and Administration Cabinet shall not apply to sales made by the state law 13
librarian under this section. 14
(7) The state law librarian may, with the c oncurrence of the administrative assistant to 15
the Chief Justice responsible for law library operations, offer and provide technical 16
and other assistance to county law libraries and to other publicly funded law 17
libraries. 18
(8) The state law librarian may, up on the request of a county law library or other 19
publicly funded law library and with the concurrence of the administrative assistant 20
to the Chief Justice responsible for law library operations, purchase books, supplies, 21
or other materials for the library. The funds used for these purposes shall be those 22
of the county law library or other publicly funded law library. 23
(9) The state law librarian shall issue, with the concurrence of the administrative 24
assistant to the Chief Justice responsible for law library operations, regulations for 25
the operation, management, and lending policy of the State Law Library. 26
Section 4. KRS 45A.050 is amended to read as follows: 27
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(1) Except as provided in KRS 45A.800 to 45A.835 and KRS Chapters 175, 176, 177, 1
and 180, all rights, powers, duties, and authority relating to the procurement of 2
supplies, services, and construction, and the management, control, warehousing, 3
sale, and disposal of supplies, services, and construction now vested in or exercised 4
by any state agency under the several statutes relating thereto, are hereby 5
transferred to the secretary of the Finance and Administration Cabinet as provided 6
in this code, subject to the provisions of subsection (2) of this section. 7
(2) Unless otherwise ordered by the secretary of the Finance and Administration 8
Cabinet, the acquisition of the following shall not be required through the Finance 9
and Administration Cabinet: 10
(a) Works of art for museum and public display; 11
(b) Published books, maps, periodicals, and technical pamphlets; and 12
(c) Services of visiting speakers, professors, and performing artists. 13
(3) The Finance and Administration Cabinet shall include in all state agency price 14
contracts for the purchase of materials or supplies a provision that, as approved by 15
the secretary of the Finance and Administration Cabinet, any political subdivision, 16
including cities of all classes, counties, school districts, or special districts, may 17
participate in these contracts to the same extent as the Commonwealth. Any 18
political subdivision may purchase materials and supplies in accordance with a 19
contract for supplies and materials entered into by the Finance and Administration 20
Cabinet for the Commonwealth, including those contracts negotiated by the cabinet 21
with vendors who maintain a General Services Administration price agreement as 22
provided in KRS 45A.045 (9)[(8)]. Political subdivisions of the Commonwealth 23
must comply with other provisions of the Kentucky Revised Statutes which require 24
purchase by competitive bidding, before participating in the contract, unless the 25
state contract has been let by competitive bidding, or the contract was negotiated as 26
provided in KRS 45A.045(9)[(8)]. 27
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(4) The Financ e and Administration Cabinet shall inform the Department for Local 1
Government, which shall then inform the appropriate purchasing agent of each 2
political subdivision interested in participating under this section, of all state agency 3
contracts in effect between the Commonwealth and vendors. 4
(5) The secretary of the Finance and Administration Cabinet shall promulgate 5
administrative regulations necessary for the implementation of this section and 6
necessary to provide that the Commonwealth be reimbursed for an y additional 7
expenses incurred by the Commonwealth in allowing political subdivisions to 8
participate in contracts with vendors. 9
(6) The Finance and Administration Cabinet shall comply with all provisions relating 10
to the methods of purchasing in the Kentuck y Revised Statutes. This section is not 11
intended to repeal or otherwise affect any provision of the Kentucky Revised 12
Statutes regarding purchasing methods of the Finance and Administration Cabinet. 13
(7) Notwithstanding any other statute to the contrary, all public agencies as defined in 14
KRS 45A.490 shall comply with the provisions for reciprocal preference for 15
resident bidders in KRS 45A.490 to 45A.494. 16
Section 5. KRS 45A.300 is amended to read as follows: 17
(1) Any public p urchasing unit may either participate in, sponsor, conduct, or 18
administer a cooperative purchasing agreement for the acquisition of any supplies, 19
services, or construction with any other public purchasing unit or foreign 20
purchasing activity, in accordance with an agreement entered into between the 21
participants. This cooperative purchasing may include[,] but is not limited to[,] joint 22
contracts between public purchasing units and access by local public purchasing 23
units to open-ended state public purchasing unit contracts. 24
(2) Nothing in this code shall limit any public purchasing unit from selling to, acquiring 25
from, or using any property belonging to another public purchasing unit or foreign 26
purchasing activity independent of the requirements of KRS 45A.070 to 45A.180. 27
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(3) Nothing in this code shall limit or restrict any public purchasing unit from entering 1
into an agreement, independent of the requirements of KRS 45A.045 (6)[(5)] and 2
KRS 45A.070 to 45A.165, with any other public purchasing unit or foreign 3
purchasing activity for the cooperative use of supplies or services. 4
(4) Any public purchasing unit may enter into an agreement for the joint or common 5
use of warehousing facilities or the lease or common use of capital equipment or 6
facilities with any other public purchasing unit or a foreign purchasing activity 7
subject to the terms as may be agreed upon between the parties. 8
(5) Nothing in this code shall limit or restrict the ability of local school districts to 9
acquire supplies outside of the public purchas ing agreements when the supplies and 10
equipment meeting the same specifications as the contract items are available at a 11
lower price elsewhere and the purchase does not exceed two thousand five hundred 12
dollars ($2,500). 13
(6) Nothing in this code shall limit any public purchasing unit from receiving notice of 14
or accepting a price reduction on supplies or equipment when the supplies or 15
equipment are being offered by the vendor with whom a price agreement has been 16
made; the supplies or equipment are being offere d in accordance with all terms and 17
conditions that are specified in the price agreement, except those relating to price; 18
and the price reduction is offered to all of the participants in the price agreement. 19
Public purchasing units may accept special price reductions under this subsection 20
even if the reduced price requires the purchase of a specified quantity of units 21
different from the quantity stated in the original price agreement. Price reductions 22
under this subsection shall not be considered to permanen tly alter the price of the 23
supplies or equipment under the price agreement with the Commonwealth, except 24
where the price reductions are to be made permanent under the express terms of the 25
price agreement and where the purchasing agency which solicited the price 26
agreement determines that the enforcement of those terms serves the best interest of 27
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the Commonwealth. 1
(7) The Finance and Administration Cabinet shall not exclude the Department of Fish 2
and Wildlife Resources from, or interfere with the department's participation in, any 3
contracts available to multiple state agencies for the procurement of goods or 4
services, including but not limited to interfering with the department's electronic 5
access to the statewide accounting system in any way. 6
Section 6. KRS 45A.810 is amended to read as follows: 7
(1) (a) One (1) or more architectural services selection committees and one (1) or 8
more engineering or engineering -related services selection committees shall 9
be created in the Finance and Administration Cabinet. 10
(b) One (1) or more engineering and engineering -related services selection 11
committees shall be created in the Transportation Cabinet. 12
(c) One (1) or more engineering and engineering -related services selection 13
committees shall be created in the Department of Fish and Wildlife 14
Resources. 15
(2) Except when an emergency condition exists as defined by KRS 45A.095(1)(a), 16
when architectural, engineering, or engineering -related services are procured under 17
KRS 45A.837 and 45A.838, or whe n the project is constructed under KRS 18
45A.045(12)[(11)](a) or (b): 19
(a) An architectural services selection committee created in the Finance and 20
Administration Cabinet shall participate in every instance of that cabinet's 21
procuring architectural services f or its own needs and the needs of other 22
agencies, and upon request from the commissioner of the Department of Fish 23
and Wildlife Resources, shall assist and participate in that department's 24
procuring of architectural services; 25
(b) An engineering and enginee ring-related services selection committee created 26
in the Finance and Administration Cabinet shall participate in every instance 27
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of that cabinet's procuring engineering or engineering-related services; 1
(c) An engineering and engineering -related services selection committee created 2
in the Transportation Cabinet shall participate in every instance of that 3
cabinet's procuring engineering or engineering-related services; and 4
(d) An engineering and engineering -related services selection committee created 5
in the Department of Fish and Wildlife Resources shall participate in every 6
instance of that department's procuring of engineering or engineering -related 7
services. 8
(3) An architectural services selection committee created in the Finance and 9
Administration Cabinet to perform its own procurement and assist other state 10
agencies with procuring architectural services shall consist of six (6) or more 11
members selected in the manner specified within each paragraph: 12
(a) Two (2) architects. The secretary of the Finance and Administration Cabinet 13
shall appoint a pool of at least six (6) architects who are employees of the 14
cabinet. At least three (3) of the architects shall be merit employees of the 15
cabinet. The secretary, or d esignee, under the supervision of the Auditor of 16
Public Accounts, or designee, shall randomly select architects from the pool. 17
The first employee selected shall be placed on the selection committee. If the 18
first employee selected is a merit employee, the s econd employee selected 19
shall be placed on the selection committee. If the first employee selected is a 20
nonmerit employee, the selection process shall continue until a merit 21
employee is selected. That merit employee shall be placed on the selection 22
committee; 23
(b) One (1) or more additional employees of the Department for Facilities 24
Management, appointed by the commissioner of the Department for Facilities 25
Management, to serve as a nonvoting technical adviser for a given project 26
selection. Advisory members s hall serve on a project -by-project basis and 27
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shall have the requisite knowledge, training, or experience pertaining to the 1
professional requirements of the project; 2
(c) Two (2) merit employees of the user agency appointed by the head of that 3
agency to serv e for the duration of the selection committee's participation in 4
the project for which they were appointed by the user agency; 5
(d) An individual. The Kentucky Society of Architects shall nominate nine (9) 6
individuals, and the Governor shall appoint three ( 3) of these individuals to 7
serve in the pool from which the secretary of the Finance and Administration 8
Cabinet, or designee, under the supervision of the Auditor of Public Accounts, 9
or designee, shall randomly select one (1) individual to serve on the 10
committee; 11
(e) One (1) or more merit employees of the Auditor of Public Accounts, 12
appointed by the Auditor, who may, at the discretion of the Auditor, serve as 13
nonvoting members of the committee. If one (1) employee is appointed, then 14
that employee may attend any committee proceedings. If more than one (1) 15
employee is appointed, then either of the employees may attend any 16
committee proceeding; and 17
(f) Upon completion of the selection process set forth in this subsection, the 18
commissioner of the Department of F acilities Management shall submit a 19
statement to the Auditor of Public Accounts attesting to full compliance with 20
the selection process for each architectural firm appointed to provide 21
architectural services. In addition, a complete record of the selection process 22
for each project shall be maintained by the department and shall be subject to 23
audit by the Auditor of Public Accounts. 24
(4) The engineering and engineering-related services selection committee created in the 25
Finance and Administration Cabinet shal l consist of six (6) or more members 26
selected in the manner specified in each paragraph: 27
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(a) Two (2) engineers. The secretary of the Finance and Administration Cabinet 1
shall appoint a pool of at least six (6) engineers who are employees of the 2
cabinet. At least three (3) of the engineers shall be merit employees of the 3
cabinet. The secretary, or designee, under the supervision of the Auditor of 4
Public Accounts, or designee, shall randomly select engineers from the pool. 5
The first employee selected shall be placed on the selection committee. If the 6
first employee selected is a merit employee, the second employee selected 7
shall be placed on the selection committee. If the first employee selected is a 8
nonmerit employee, the selection process shall continue unti l a merit 9
employee is selected. That merit employee shall be placed on the selection 10
committee; 11
(b) Two (2) merit employees of the user agency appointed by the head of that 12
agency to serve for the duration of the selection committee's participation in 13
the project for which they were appointed by the user agency; 14
(c) An individual. The Kentucky Society of Professional Engineers and the 15
Kentucky Consulting Engineers Council shall together nominate nine (9) 16
individuals, and the Governor shall appoint three (3) of these individuals to 17
serve in the pool from which the secretary of the Finance and Administration 18
Cabinet, or designee, under the supervision of the Auditor of Public Accounts, 19
or designee, shall randomly select one (1) individual to serve on the 20
committee; 21
(d) One (1) or more merit employees of the Auditor of Public Accounts, 22
appointed by the Auditor, who may, at the discretion of the Auditor, serve as 23
nonvoting members of the committee. If one (1) employee is appointed, then 24
that employee may attend a ny committee proceedings. If more than one (1) 25
employee is appointed, then either of the employees may attend any 26
committee proceeding; 27
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(e) One (1) or more additional employees of the Department for Facilities 1
Management to serve as nonvoting technical adv iser for a specific project 2
selection. Advisory members shall serve on a project -by-project basis and 3
shall have the requisite knowledge, training, or experience pertaining to the 4
professional requirements of the project; and 5
(f) Upon completion of the sel ection process set forth in this subsection, the 6
commissioner of the Department of Facilities Management shall submit a 7
statement to the Auditor of Public Accounts attesting to full compliance with 8
the selection process for each firm appointed to provide e ngineering or 9
engineering-related services. In addition, a complete record of the selection 10
process for each project shall be maintained by the department and shall be 11
subject to audit by the Auditor of Public Accounts. 12
(5) The engineering and engineering-related services selection committee created in the 13
Transportation Cabinet shall consist of six (6) or more members selected in the 14
manner specified in each paragraph: 15
(a) Two (2) engineers. The secretary of the Transportation Cabinet shall appoint a 16
pool of six (6) engineers who are employees of the cabinet. At least three (3) 17
of the engineers shall be merit employees of the cabinet. The secretary, or 18
designee, under the supervision of the Auditor of Public Accounts, or 19
designee, shall randomly select engi neers from the pool. The first employee 20
selected shall be placed on the selection committee. If the first employee 21
selected is a merit employee, the second employee selected shall be placed on 22
the selection committee. If the first employee selected is a no nmerit 23
employee, the selection process shall continue until a merit employee is 24
selected. That merit employee shall be placed on the selection committee; 25
(b) Two (2) engineers who are merit employees of the user division appointed by 26
the head of that divis ion to serve for the duration of the selection committee's 27
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participation in the project for which they were appointed by the user agency. 1
However, if two (2) user divisions have approximately equal responsibilities 2
or separate responsibilities for the proj ect, each user division head shall 3
appoint one (1) member to the selection committee; 4
(c) An individual. The Kentucky Society of Professional Engineers and the 5
Kentucky Consulting Engineers Council shall together nominate nine (9) 6
individuals, and the Gove rnor shall appoint three (3) of these individuals to 7
serve in the pool from which the secretary of the Transportation Cabinet, or 8
designee, under the supervision of the Auditor of Public Accounts, or 9
designee, shall randomly select one (1) individual to serve on the committee; 10
(d) One (1) or more merit employees of the Auditor of Public Accounts, 11
appointed by the Auditor, who may, at the discretion of the Auditor, serve as 12
nonvoting members of the committee. If one (1) employee is appointed, then 13
that employee may attend any committee proceedings. If more than one (1) 14
employee is appointed, then either of the employees may attend any 15
committee proceeding; and 16
(e) Upon completion of the selection process set forth in this subsection, the 17
commissioner of the D epartment of Highways shall submit a statement to the 18
Auditor of Public Accounts attesting to full compliance with the selection 19
process for each firm appointed to provide engineering or engineering -related 20
services. In addition, a complete record of the s election process for each 21
project shall be maintained by the department and shall be subject to audit by 22
the Auditor of Public Accounts. 23
(6) The engineering and engineering -related services selection committee created 24
within the Department of Fish and Wild life Resources shall consist of six (6) or 25
more members selected as follows: 26
(a) The commissioner of the Department of Fish and Wildlife Resources shall 27
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appoint five (5) members: 1
1. One (1) department employee in or designated to the job classification 2
of Department of Fish and Wildlife Resources Project Manager; 3
2. Two (2) Department of Fish and Wildlife Resources employees in the 4
Engineering and Geological series, at least one (1) of whom shall be a 5
merit employee; 6
3. One (1) merit employee of the Departm ent of Fish and Wildlife 7
Resources designated by the division head for the project or by the 8
commissioner; and 9
4. One (1) employee of the Department of Fish and Wildlife Resources 10
who is an attorney; 11
(b) The Kentucky Society of Professional Engineers and the Kentucky Consulting 12
Engineers Council shall together nominate nine (9) individuals, and the 13
Governor shall sele ct three (3) of these individuals to serve in a pool from 14
which the commissioner of the Department of Fish and Wildlife Resources, or 15
designee, under the supervision of the Auditor of Public Accounts, or 16
designee, shall randomly select one (1) individual to serve on the committee; 17
(c) One (1) or more merit employees of the Auditor of Public Accounts, 18
appointed by the Auditor, who may, at the discretion of the Auditor, serve as 19
nonvoting members of the committee. If one (1) employee is appointed, then 20
that employee may attend any committee proceedings. If more than one (1) 21
employee is appointed, then either of the employees may attend any 22
committee proceeding; and 23
(d) Upon completion of the selection process set forth in this subsection, the 24
commissioner of the Department of Fish and Wildlife Resources shall submit 25
a statement to the Auditor of Public Accounts attesting to full compliance 26
with the selection process for each firm appointed to provide engineering or 27
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engineering-related services. A complete recor d of the selection process for 1
each project shall be maintained by the Department of Fish and Wildlife 2
Resources and shall be subject to audit by the Auditor of Public Accounts. 3
(7) (a) All selection committee members shall have experience which qualifies them 4
to serve on the committee. 5
(b) The same appointment procedures set out in this section apply to any user 6
agency or user division listed in subsection (3), (4), (5), or (6) of this section 7
that does not operate under a merit system. 8
(c) Any individual appointed to serve in a pool from which selection committee 9
members are drawn shall serve in the pool for an initial one (1) year term and 10
may be reappointed. He or she shall serve until his or her successor is 11
appointed and qualified. A successor or a rep lacement, in the case of a 12
vacancy in the pool, shall be appointed in the same manner as the initial 13
appointee. If a selection committee member, drawn from a pool, leaves a 14
selection committee, his or her replacement shall be drawn from the pool in 15
the sam e manner as he or she. The replacement shall have the merit or 16
nonmerit status of his or her predecessor. 17
(d) Any individual appointed by the Auditor of Public Accounts to serve on 18
selection committees shall serve an initial one (1) year term and may be 19
reappointed to succeed himself or herself. He or she shall serve until his or her 20
successor is appointed and qualified. A successor or a replacement, in the case 21
of a vacancy, shall be appointed in the same manner as the initial appointee. 22
(e) The selection committee members appointed by the head of a user agency or 23
user division shall serve on a project -by-project basis. These members shall 24
participate only in committee action related to the project for which they were 25
appointed. A replacement, in the case o f a vacancy, shall be appointed in the 26
same manner as the initial appointee. 27
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Section 7. KRS 56.774 is amended to read as follows: 1
(1) The Energy Efficiency Program for State Government Buildings shall provide for 2
implementation of low cost/no cost energy conservation measures, engineering 3
analyses, energy efficiency measures, building improvements, and monitoring of 4
results for state-owned or state-leased buildings. 5
(2) Any engineering analysis conducted on a state -owned building shall assess the 6
energy efficiency of the building and make recommendations for improving the 7
efficient use of energy within the building. The analyses shall be performed by 8
qualified engineers, architects, or other persons trained in energy efficiency who 9
may be employees of the cabinet or employed pursuant to KRS Chapter 45A, 10
except that any engineers, architects or other persons trained in energy efficiency 11
and retained under a guaranteed energy savings performance contract, shall not be 12
subject to the provisions of KRS 45A.800 to 45A.835. 13
(3) Except as provided in subsection (5) of this section, measures to improve the energy 14
efficiency of a state -owned buildin g, which have an aggregate simple payback 15
period of five (5) years or less, shall be implemented as general fund appropriations 16
become available. No more than five percent (5%) of the cost of energy 17
conservation measures for a building may be utilized for monitoring the results. 18
(4) If general fund appropriations are available for energy conservation improvements, 19
the cabinet shall prioritize projects among the various state -owned buildings to 20
determine which projects shall be implemented to best utilize the available funding. 21
(5) If general fund appropriations are unavailable, energy conservation measures for a 22
state-owned building may be financed by other means. These other means include 23
but are not limited to guaranteed energy savings performance contract s as defined 24
under KRS 56.770 entered into pursuant to KRS 45A.085 and KRS 25
45A.045(11)[(10)]. Guaranteed energy savings performance contracts shall not be 26
subject to the provisions of KRS 45A.800 to 45A.835. These energy conservation 27
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measures shall not be limited to those that have an aggregate simple payback period 1
of five (5) years or less, but shall result in reasonable economic benefit to the 2
Commonwealth. Ownership of the energy conservation measures shall be 3
transferred to the Commonwealth upon comple tion of the guaranteed energy 4
savings performance contract or as otherwise agreed upon in the contract. Savings 5
from the implementation of the energy conservation measures under the guaranteed 6
energy savings performance contract shall be used to satisfy th e obligations under 7
the guaranteed energy savings performance contract and to repay the cost of the 8
other means used to finance the energy conservation measures, and may be used to 9
repay expenses incurred by the cabinet to reimburse the cabinet for expenses related 10
to the guaranteed energy savings performance contract, including but not limited to 11
staff time for monitoring, overseeing, and managing the project. Notwithstanding 12
KRS 45.229, remaining savings shall remain in the state agency account and shall 13
not lapse. All savings projected under a guaranteed energy savings performance 14
contract shall be guaranteed to the Commonwealth. 15
(6) The savings in reduced expenditures that are specified as payment sources shall be 16
documented in the guaranteed energy savi ngs performance contract. Savings shall 17
be determined by using one (1) of the measurement and verification methodologies 18
listed in the United States Department of Energy's "International Performance 19
Measurement and Verification Protocol." If specific data limitations or documented 20
unique characteristics of the project prevent use of the "International Performance 21
Measurement and Verification Protocol," an alternative method that is compatible 22
shall be adopted upon documentation and approval of the secretary of the cabinet. 23
Section 8. KRS 56.782 is amended to read as follows: 24
The cabinet shall report on or before October 15, 2008, and on or before every October 25
15 thereafter to the Legislative Research Commission on progres s made to maximize the 26
use of energy -efficiency measures in state government. The Legislative Research 27
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Commission shall transmit the report to the appropriate interim joint committees and to 1
the General Assembly when it convenes. The report shall include but not be limited to: 2
(1) A summary of initiatives undertaken by the cabinet during the reporting period to 3
promote adoption of low cost/no cost energy -efficiency measures, including 4
employee training efforts; 5
(2) A summary of energy -efficiency measures in stalled and energy improvements 6
made during the reporting period; 7
(3) Energy consumption and expenditure data for facilities owned or leased by state 8
government and any documented savings made as a result of energy -efficiency 9
measures and improvements; 10
(4) Status report on the number of buildings newly constructed, renovated, or leased in 11
accordance with the high -performance building standards required under KRS 12
56.777 and the amount of savings realized based upon a life-cycle cost analysis; 13
(5) Any efforts made during the reporting period to promote acquisition of energy -14
efficient products pursuant to KRS 45A.045 (13)[(12)] and the amount of savings 15
expected to be realized in the first year of operation from the purchase of ENERGY 16
STAR-qualified products pursuant to KRS 56.775; 17
(6) Any recommendations for future funding of energy improvements or other 18
measures needed to assure energy efficiency in state government; and 19
(7) Any improvements in energy efficiency planned or realized through the use of the 20
LEED r ating system, the Green Globes rating system, ENERGY STAR -qualified 21
products, and guaranteed energy savings performance contracts. 22