CHAPTER 150
Legislative Research Commission PDF Version
1
CHAPTER 150
( SB 42 )
AN ACT relating to procurement.
Be it enacted by the General Assembly of the Commonwealth of Kentucky:
Section 1. KRS 45A.380 is amended to read as follows:
A local public agency may contract or purchase through noncompetitive negotiation only when a written
determination is made that competition is not feasible and it is further determined in writing by a designee of the local
public agency that:
(1) An emergency exists which will cause public harm as a result of the delay in competitive procedures;
(2) There is a single source within a reasonable geographical area of the product or service to be procured;
(3) The contract is for the services of a licensed professional, such as attorney, physician, psychiatrist,
psychologist, certified public accountant, registered nurse, or educational specialist; a technician such as a
plumber, electrician, carpenter, or mechanic; or an artist such as a sculptor, aesthetic painter, or musician,
provided, however, that this provision shall not apply to architects or engineers providing construction
management services rather than professional architect or engineer services;
(4) The contract is for the purchase of perishable foods, such as meat, fish, poultry, egg products, fresh
vegetables, and fresh fruits[items purchased on a weekly or more frequent basis, such as fresh fruits,
vegetables, fish or meat];
(5) The contract is for replacement parts where the need cannot be reasonably anticipated and stockpiling is not
feasible;
(6) The contract is for proprietary items for resale;
(7) In school districts the contract relates to an enterprise in which the buying or selling by students is a part of the
educational experience;
(8) The contract or purchase is for expenditures made on authorized trips outside of the boundaries of the local
public agency;
(9) The contract is for the purchase of supplies which are sold at public auction or by receiving sealed bids;
(10) The contract is for group life insurance, group health and accident insurance, group professional liability
insurance, worker's compensation insurance, and unemployment insurance;
(11) The contract is for a sale of supplies at reduced prices that will afford a purchase at savings to the local public
agency; or
(12) The contract is with a private real estate developer and contains a requirement:
(a) That the developer increase the size or otherwise improve the collection capacity of the sanitary sewer
or storm water pipe serving the affected private real estate development; and
(b) That the local public agency pay only the proportional cost of increasing the size, or otherwise
improving the collection capacity, of the sanitary sewer or storm water pipe over the original collection
capacity.
Section 2. KRS 424.260 is amended to read as follows:
(1) Except where a statute specifically fixes a larger sum as the minimum for a requirement of advertisement for
bids, no city, county, or district, or board or commission of a city or county, or sheriff or county clerk, may
make a contract, lease, or other agreement for:
(a) Materials;[,]
(b) Supplies, except perishable foods such as meat, poultry, fish, egg products, fresh vegetables, and fresh
fruits;[ and vegetables,]
(c) Equipment;[,] or[ for] ACTS OF THE GENERAL ASSEMBLY 2
(d) Contractual services other than professional;[,]
involving an expenditure of more than thirty thousand dollars ($30,000) without first making newspaper
advertisement for bids. This subsection shall not apply to the transfer of property between governmental
agencies as authorized in KRS 82.083(4)(a).
(2) If the fiscal court requires that the sheriff or county clerk advertise for bids on expenditures of less than thirty
thousand dollars ($30,000), the fiscal court requirement shall prevail.
(3) (a) Nothing in this statute shall limit or restrict the ability of a local school district to acquire supplies and
equipment outside of the bidding procedure if those supplies and equipment meet the specifications of
the contracts awarded by the Office of Material and Procurement Services in the Office of the
Controller within the Finance and Administration Cabinet or a federal, local, or cooperative agency and
are available for purchase elsewhere at a lower price. A board of education may purchase those supplies
and equipment without advertising for bids if, prior to making the purchases, the board of education
obtains certification from the district's finance or purchasing officer that the items to be purchased meet
the standards and specifications fixed by state price contract, federal (GSA) price contract, or the bid of
another school district whose bid specifications allow other districts to utilize their bids, and that the
sales price is lower than that established by the various price contract agreements or available through
the bid of another school district whose bid specifications would allow the district to utilize their bid.
(b) The procedures set forth in paragraph (a) of this subsection shall not be available to the district for any
specific item once the bidding procedure has been initiated by an invitation to bid and a publication of
specifications for that specific item has been published. In the event that all bids are rejected, the district
may again avail itself of the provisions of paragraph (a) of this subsection.
(4) This requirement shall not apply in an emergency if the chief executive officer of the city, county, or district
has duly certified that an emergency exists, and has filed a copy of the certificate with the chief financial
officer of the city, county, or district, or if the sheriff or the county clerk has certified that an emergency exists,
and has filed a copy of the certificate with the clerk of the court where his necessary office expenses are fixed
pursuant to KRS 64.345 or 64.530, or if the superintendent of the board of education has duly certified that an
emergency exists, and has filed a copy of the certificate with the chief state school officer.
(5) The provisions of subsection (1) of this section shall not apply for the purchase of wholesale electric power for
resale to the ultimate customers of a municipal utility organized under KRS 96.550 to 96.900.
SECTION 3. A NEW SECTION OF KRS CHAPTER 45A IS CREATED TO READ AS FOLLOWS:
No contract shall be awarded, extended, or renewed to a bidder or contractor under this chapter if the bidder or
contractor procured an original, subsequent, or similar contract while employing an executive agency lobbyist
who was convicted of a crime related to the original, subsequent, or similar contract within five (5) years of the
conviction of the lobbyist.
Section 4. KRS 45A.340 is amended to read as follows:
(1) No officer or employee of the General Assembly, or officer or employee of an agency as defined in KRS
45A.335, shall knowingly receive or agree to receive, directly or indirectly, compensation for any services to
be rendered, either by himself or another, in negotiations with the state or an agency for the purchase by the
state or an agency of an interest in real property. This section shall not apply to appearances before any court,
except that negotiations shall be prohibited as aforesaid at any time.
(2) No officer or employee of an agency or member of a state board or commission, may be in any manner
interested, either directly or indirectly, in his own name or in the name of any other person, association, trust,
or corporation, in any contract for the performance of any work in the making or letting or administration of
which such officer or employee may be called upon to act or vote. No such officer or employee may represent,
either as agent or otherwise, any person, association, trust, or corporation, with respect to any application or
bid for any contract or work in regard to which such officer or employee may be called upon to act or vote.
Nor may any such officer or employee take, solicit, or receive, either directly or indirectly, any money or other
thing of value as a gift or bribe or means of influencing his vote or action in his official character. Any contract
made and procured in violation hereof is void. For the purposes of this section the holding of less than five
percent (5%) of the stock of a corporation is not considered an interest.
(3) No officer or employee of the General Assembly or officer or employee of any agency shall, for
compensation, appear before an agency as an expert witness. CHAPTER 150
Legislative Research Commission PDF Version
3
(4) No officer or employee of the General Assembly, or officer or employee of any agency, shall act as officer or
agent for the Commonwealth or any agency in the transaction of any business with himself, or with any
corporation, company, association, or firm in which he or his spouse has any interest greater than five percent
(5%) of the total value thereof.
(5) No officer or employee of an agency or appointee shall knowingly himself or by his partners or through any
corporation which he controls or in which he owns or controls more than ten percent (10%) of the stock, or by
any other person for his use or benefit or on his account, undertake, execute, hold, or enjoy, in whole or in
part, any contract, agreement, sale, or purchase of the value of twenty-five dollars ($25) or more, made,
entered into, awarded or granted by any agency, unless said contract, agreement, sale or purchase:
(a) Was made or let after public notice and competitive bidding; or
(b) Results from the sale of a craft item to a state park if the employee is an interim state park employee
designated as a craftsperson under KRS 148.257.
(6) No officer, employee, or appointee of an agency, including persons who serve without salary or other payment
for their services, shall knowingly receive or agree to receive, directly or indirectly, compensation for any
services rendered or to be rendered, either by himself or another, in any cause, proceeding, application, or
other matter which is before said agency or before the department of state government in which said agency
functions.
(7) No member of a board of trustees or regents shall have an interest in any contract with a state university unless
such contract shall have been subjected to competitive bidding in compliance with KRS Chapter 45A, unless
such trustee or regent shall have been the lowest bidder and unless such trustee or regent shall have first
notified in writing the remaining members of the board, and to the newspaper having the largest circulation in
the county in which the state university is located, of his intention to bid on such contract.
(8) No officer, employee, or appointee of an agency, including persons who serve without salary or other
payment for their services, may participate in the procurement of a contract under this chapter that relates
to his or her prior employment until at least one (1) year has passed since his or her termination with that
employer.
Section 5. Section 3 of this Act shall be applied retroactively to all contracts entered into since January 1,
2017. No contract existing as of the effective date of this Act shall be voided under Section 3 of this Act.
Signed by Governor April 8, 2022.