AN ACT relating to appropriations.

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AN ACT relating to appropriations. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 45.760 is amended to read as follows: 3
The provisions of any other law notwithstanding: 4
(1) During any biennium the amount allotted, from all sources, for expenditure on any 5
project in the state capital construction program for that biennium shall n ot exceed 6
the estimated cost of the project during that biennium, as shown in any branch 7
budget bill enacted by the General Assembly, except as provided in this section and 8
KRS 45.770 and 45.780. 9
(2) When the General Assembly disapproves a capital project or item of equipment that 10
was previously approved, it shall be eliminated as a capital project or major item of 11
equipment in the Capital Projects Program. General fund moneys appropriated for 12
that project or item of equipment but not allotted, and general fund moneys allotted 13
but not expended to the project or equipment account, shall be transferred to the 14
capital construction and equipment purchase contingency account in the capital 15
construction fund. Agency or federal funds for a disapproved project or it em, that 16
have been appropriated but unallotted or allotted but unexpended, shall be returned 17
to the appropriate agency fund. Road fund moneys for a disapproved project or item 18
that have been appropriated but unallotted or allotted but unexpended, shall be 19
returned to the Road Fund Surplus Account. 20
(3) Capital projects and major items of equipment disapproved under subsection (2) of 21
this section shall be terminated. 22
(4) During any biennium, the amount allotted from all sources for expenditure for the 23
purchase of any major item of equipment shall not exceed the estimated cost of the 24
item as shown in any branch budget bill enacted by the General Assembly and 25
authorizing the purchase, except as provided in subsections (5) and (6) of this 26
section and in KRS 45.770 and 45.780. 27
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(5) A major item of equipment to be used for medical, scientific, or research purposes, 1
excluding computer equipment and aircraft, may be authorized even though it is not 2
specifically listed in any branch budget bill enacted for the current biennium, 3
subject to the following conditions and procedures: 4
(a) Moneys specifically budgeted and appropriated by the General Assembly for 5
another purpose shall not be reallotted for expenditure on the item; moneys 6
utilized shall not jeopardize any existing program and shall not require the use 7
of any current general funds specifically dedicated to existing programs; 8
(b) Funds are available for the purchase and the method of financing the purchase 9
will not require an additional appropriation of state funds to acquire the item; 10
and 11
(c) The purchasing agency shall, within thirty (30) days after making the 12
purchase, report the purchase to the Capital Projects and Bond Overs ight 13
Committee. The report shall include a description of the item, the purpose for 14
which it will be used, the necessity for the purchase, and the amount expended 15
for the purchase from each source of funds used. 16
(6) Moneys from any source may be transferre d to the allotment account of any capital 17
project authorized by the General Assembly under this section, subject to the 18
following conditions and procedures: 19
(a) The total amount transferred shall not exceed fifteen percent (15%) of the 20
amount authorized by the General Assembly unless: 21
1. The source of funds is private or federal; or 22
2. An unforeseen decision by a federal or state court or regulatory agency 23
requires the transfer. 24
(b) Moneys specifically budgeted and appropriated by the General Assembly for 25
another purpose shall not be allotted or reallotted for expenditure on the 26
capital project. 27
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(c) Moneys utilized shall not jeopardize any existing program and shall not 1
require the use of any current general funds specifically dedicated to existing 2
programs. 3
(d) The relevant entity head, or his or her designee, shall submit the capital 4
project to the Capital Projects and Bond Oversight Committee at least 5
fourteen (14) days prior to the committee meeting. The submission shall 6
include a written certification to the committee that the transfer, in excess of 7
fifteen percent (15%) of the amount authorized by the General Assembly, is: 8
1. Paid for out of private or federal funds; or 9
2. Required by an unforeseen decision by a federal or state court or 10
regulatory agency; and 11
3. Not allotted or reallotted from moneys specifically budgeted and 12
appropriated by the General Assembly for another purpose; and 13
4. Not jeopardizing any existing program and not requiring the use of any 14
current general funds specifically dedicated to existing programs. 15
(e) If a capital project is financed with road funds, the cost overruns or scope 16
increases shall be paid out of the highway contingency account established 17
pursuant to KRS 45.247. 18
(7) A capital construction project or a major item of equipment may be authorized even 19
though it is not specifically listed in any branch budget bill, subject to the following 20
conditions and procedures: 21
(a) Fifty percent (50%) or more of the actual cost shall be funded by federal or 22
private funds, and fifty percent (50%) or less of the actual cost shall be funded 23
by moneys appropriated to the capital construction and equipment purchase 24
contingency account or, if the purpose of the project or equipment is to reduce 25
energy costs, the relevant entity head certifi es projected energy cost savings 26
associated with the project or equipment are reasonable and sufficient to 27
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produce an aggregate simple payback period, as defined by KRS 56.770, of 1
five (5) years or less; 2
(b) Moneys specifically budgeted and appropriated by the General Assembly for 3
another purpose shall not be allotted or reallotted for expenditure on the 4
project or major item of equipment; moneys utilized shall not jeopardize any 5
existing program and shall not require the use of any current general funds 6
specifically dedicated to existing programs; and 7
(c) The relevant entity head, or his or her designee, shall submit the project or 8
major item of equipment to the committee for review as provided by KRS 9
45.800. 10
(8) The capital construction and equipment purch ase contingency fund may be used to 11
advance funds to projects authorized to be financed by bonds, to finance feasibility 12
studies for projects which may be contemplated for future funding, or to audit the 13
capital projects program when authorized by the General Assembly. 14
(9) On or before October 1, each branch of government shall submit to the committee 15
the following information: 16
(a) A complete list and summary description of every capital construction project 17
and major item of equipment not completed as of J une 30 of the prior fiscal 18
year; and 19
(b) For each project and major item of equipment, as of July 1, of the current 20
fiscal year: 21
1. The project phase; 22
2. The project account number, project name, and any other term employed 23
to identify the project or major item of equipment; 24
3. The available balance in the project or major item of equipment account, 25
and any sums considered available for that project or major item of 26
equipment; 27
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4. A statement of the transfers of funds to or from the project or major item 1
of equipment account; and, any account to which transfers from each 2
project or major item of equipment has been made; 3
5. The year in which the project or major item of equipment was approved, 4
with specific reference to the legislation by which the project or item 5
was approved; 6
6. Total expenditure on the project or major item of equipment; 7
7. The current estimated completion cost, including the amount required 8
for annual inflation; and 9
8. A statement that additional funds for the completion of the project or 10
major item of equipment are or are not required; and, if required, why 11
sufficient funds for completion are not available; and 12
(c) The balance in the appropriated, but unallotted account; and the balance in 13
any account, however designated, that contains appropriated, but unallotte d 14
funds for capital construction. 15
(10) When the General Assembly authorizes a capital construction item in the capital 16
construction section of a branch budget bill, the entity head charged with executing 17
the branch budget shall construct the capital constr uction item according to the 18
requirements set forth in the branch budget bill, supporting documentation 19
considered by the General Assembly, and branch budget records. The entity head 20
shall not deviate from these requirements with regard to: 21
(a) Purpose or location to the extent that the capital construction item no longer 22
meets the identified needs; or 23
(b) Configuration for reasons other than practical accommodation to the 24
construction site or specific program to be accommodated within that capital 25
construction item. 26