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AN ACT relating to public contracts. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 45A IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section unless the context requires otherwise: 5
(a) "Governmental body" has the same meaning as in KRS 45A.030 and 6
includes a governmental body of a city, county, special district, or school 7
district; 8
(b) "Manufactured in the United States" means: 9
1. In the case of an iron, steel, or aluminum product, all manufacturing 10
has taken place in the United States, except metallurgical processes 11
involving the refinement of steel additives; and 12
2. In the case of a manufactured good, all the manufacturing processes 13
for the product and its components have taken place in the United 14
States, regardless of the origin of a component's subcomponents; 15
(c) "Public works" has the same meaning as in KRS 45A.487; and 16
(d) "United States" means the United States of America and includes all 17
territory, continental or insular, subject to the jurisdiction of the United 18
States. 19
(2) Notwithstanding any other provision of law to the contrary, each contract for 20
construction or maintenance of a public building or public works made by a 21
governmental body after August 1, 2024, shall contain a provision that the iron, 22
steel, aluminum, or manufactured goods used or supplied as a primary 23
component in the performance of the contract and any subcontract shall be 24
manufactured in the United States, subject to the provisions of this section. 25
(3) Subsection (2) of this section shall not apply if the purchasing agent of the 26
governmental body issues a waiver of the requirements of that subsection in 27 UNOFFICIAL COPY 24 RS BR 1582
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accordance with the following: 1
(a) A request for a waiver shall be filed with the purchasing agent of the 2
governmental body at least thirty (30) days before the bid or proposal 3
opening; 4
(b) The governmental body shall provide notice and an opportunity for public 5
comment on the request at least twenty (20) days before the bids or 6
proposals for the contract are opened. The notice shall: 7
1. Include all information available to the purchasing agent of the 8
governmental body; 9
2. Identify which provision of paragraph (c) of this subsection the waiver 10
request asserts; and 11
3. Be provided to parties interested in the contract by electronic means, 12
including on the official website of the governmental body; 13
(c) In determining whether to issue a waiver, the purchasing agent of the 14
governmental body shall consider whether: 15
1. The application of subsection (2) of this section would be inconsistent 16
with the public interest; 17
2. The iron, steel, aluminum, or manufactured goods to be used or 18
supplied in the performance of the contract are not manufactured in 19
the United States in sufficient and reasonably available quantities or 20
of a satisfactory quality; or 21
3. The inclusion of iron, steel, aluminum, or manufactured goods to be 22
used or supplied in the performance of the contract will increase the 23
cost of the overall contract by more than ten percent (10%); and 24
(d) The purchasing agent of the governmental body shall issue a decision on 25
the waiver request no more than seven (7) days before the date set for 26
opening of the bids or proposal. The notification of this decision shall: 27 UNOFFICIAL COPY 24 RS BR 1582
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1. Immediately be sent to the person requesting the waiver, all persons 1
who submitted comments, and all persons who indicated interest in 2
bidding or submitting requests for proposals on the subject contract; 3
and 4
2. Immediately publish the decision regarding the waiver on the official 5
website of the governmental body and, if issued, a detailed justification 6
for the waiver that addresses the public comments received under 7
paragraph (b) of this subsection. 8
(4) A person shall be debarred under KRS 45A.035(2)(b) or 45A.360(1)(b) from 9
receiving any contract or subcontract with a governmental body if the person has 10
been found by a court or federal or state agency to have intentionally: 11
(a) Affixed a label bearing a "Made in America" inscription, or any inscription 12
with the same meaning, to any iron, steel, aluminum, or manufactured good 13
used in projects to which this section applies, that was sold in or shipped to 14
the United States and not manufactured in the United States; or 15
(b) Represented that any iron, steel, aluminum, or manufactured good used in 16
projects to which this section applies was manufactured in the United States 17
when it was not manufactured in the United States. 18
SECTION 2. A NEW SECTION OF KRS CHAPTER 56 IS CREATED TO 19
READ AS FOLLOWS: 20
All contracts made after August 1, 2024, by a state agency for the construction or 21
maintenance of a state property or building, building project, or industrial development 22
project, shall comply with the provisions set forth in Section 1 of this Act. 23
SECTION 3. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 24
READ AS FOLLOWS: 25
All contracts made after August 1, 2024, by a city, county, special district, or local 26
school district for the construction or maintenance of a public building or public works 27 UNOFFICIAL COPY 24 RS BR 1582
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shall comply with the provisions set forth in Section 1 of this Act. 1
Section 4. KRS 45A.343 is amended to read as follows: 2
(1) Any local public agency may adopt the provisions of KRS 45A.345 to 45A.460. No 3
other statutes governing purchasing shall apply to a local public agency upon 4
adoption of these provisions. 5
(2) After July 15, 1994, any contract entered into by a local public agency, whether 6
under KRS 45A.345 to 45A.460 or any other authority, shall require the contractor 7
and all subcontractors performing work under the contract to: 8
(a) Reveal any final determination of a violation by the contractor or 9
subcontractor within the previous five (5) year period pursuant to KRS 10
Chapters 136, 139, 141, 337, 338, 341, and 342 that apply to the contractor or 11
subcontractor; and 12
(b) Be in continuous compliance with the provisions of KRS Chapters 136, 139, 13
141, 337, 338, 341, and 342 that apply to the contractor or subcontractor for 14
the duration of the contract. 15
(3) A contractor's failure to reveal a final determination of a violation by the contractor 16
of KRS Chapters 136, 139, 141, 337, 338, 341, and 342 or to comply with these 17
statutes for the duration of the contract shall be grounds for the local public 18
agency's: 19
(a) Cancellation of the contract; and 20
(b) Disqualification of the contractor from eligibility for future contracts awarded 21
by the local public agency for a period of two (2) years. 22
(4) A subcontractor's failure to reveal a final determination of a violation by the 23
subcontractor of KRS Chapters 136, 139, 141, 337, 338, 341, and 342 or to comply 24
with these statutes for the duration of the contract shall be grounds for the local 25
public agency's disqualification of the subcontractor from eligibility for future 26
contracts for a period of two (2) years. 27 UNOFFICIAL COPY 24 RS BR 1582
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(5) A local public agency shall follow the requirements of Sections 1 and 3 of this Act 1
regarding a contract for construction or maintenance of a public building or a 2
public work. 3
Section 5. KRS 45A.352 is amended to read as follows: 4
(1) A local public agency may enter into a guaranteed energy savings contract for 5
innovative solutions for energy conservation measures. The local public agency 6
shall submit a request for proposals. The request for proposals for competitive 7
procurement of guaranteed energy savings contracts shall include the following: 8
(a) The name and address of the governmental unit; 9
(b) The name, address, title, and phone number of a contact person; 10
(c) Notice indicating that the local public agency is requesting qualified providers 11
to propose energy conservation measures through a guaranteed energy savings 12
contract; 13
(d) The following evaluation criteria for assessing the proposals: 14
1. Construction management capabilities; 15
2. Technical approach to facilities included; 16
3. Financial attributes, as defined by total cost of contract and guaranteed 17
savings and provider's financial strength demonstrating ability to fulfill 18
the guarantee term; and 19
4. Provider's capability, personnel, track record, and demonstrated ability 20
to accomplish the contract; 21
(e) The date, time, and place where proposals must be received; 22
(f) Any other stipulations and clarifications the local public agency may require; 23
and 24
(g) An overview prepared by the local public agency stating goals or objectives 25
specific to facility needs to be considered by the qualified providers who are 26
responding to the request. Detailed scope of construction is not required. 27 UNOFFICIAL COPY 24 RS BR 1582
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(2) Respondents to the request for proposal shall provide the following: 1
(a) A detailed list of the proposed energy conservation measures and the 2
guaranteed savings which shall be supported with calculations. Any 3
guaranteed energy and operational savings shall be determined by using one 4
of the measurement and verification methodologies listed in the United States 5
Department of Energy's "Measurement and Verification Guideline for Federal 6
Energy Projects" or in the "North American Energy Measurement and 7
Verification Protocol." If due to existing data limitations or the 8
nonconformance of specific project characteristics, none of the methods listed 9
in either the United States Department of Energy's "Measurement and 10
Verification Guideline for Federal Energy Projects" or in the "North 11
American Energy Measurement and Verification Protocol" is sufficient for 12
measuring guaranteed savings, the qualified provider shall develop an 13
alternate method that is compatible with one (1) of the two (2); 14
(b) The estimated cost of the proposed energy conservation measures including 15
engineering, construction, commissioning, measurement and verification, 16
annual reconciliation statements, and required on-going services; and 17
(c) Proposed method and costs of financing. 18
(3) The value for total cost of the contract minus the calculated savings from the energy 19
conservation measures listed in the qualified provider's proposal, shall be within 20
fifteen percent (15%) of the value for the total cost of the contract minus the 21
calculated savings after the final contract has been negotiated. If the difference 22
between the proposed and the final contract is not within fifteen percent (15%) and 23
the local public agency and the qualified provider are unable to renegotiate the final 24
contract to reconcile the difference between the proposed and final contract values, 25
then the local public agency may: 26
(a) Stop negotiations with the current qualified provider; and 27 UNOFFICIAL COPY 24 RS BR 1582
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(b) Select an alternate provider. 1
(4) The local public agency may, as a component of the request for proposal, solicit and 2
negotiate additional maintenance services for the affected proposed energy 3
conservation measures. Additional services shall be subject to budget 4
appropriations on an annual basis and may be discontinued at any time over the 5
guarantee period with no negative impact to the guaranteed savings contract. 6
(5) The local public agency shall utilize the request for proposal process to enter into a 7
guaranteed energy savings contract. The local public agency may, at its discretion, 8
utilize a request for qualifications, provided that the local public agency solicits 9
qualification statements from multiple potentially qualified providers. The local 10
public agency shall use the qualification statements to select no fewer than two (2) 11
providers and each provider shall then be subject to the request-for-proposal 12
requirement provided in subsections (1) to (4) of this section. 13
(6) The local public agency shall select the provider best qualified to meet its needs. 14
The local public agency shall provide public notice of the meeting at which it 15
proposes to award a guaranteed energy savings contract, the name of the parties to 16
the proposed contract, and the purpose of the contract. The public notice shall be 17
made at least ten (10) days prior to the meeting. After reviewing the proposals, a 18
local public agency may enter into a guaranteed energy savings contract with a 19
qualified provider if it finds that the amount it would spend on the energy 20
conservation measures recommended in the proposal would not exceed the amount 21
to be saved in either energy or operational costs plus capital cost avoidance within 22
the term of the contract from the date of installation, if the recommendations in the 23
proposal are followed. 24
(7) The guaranteed energy savings contract shall include a written guarantee of the 25
qualified provider that either the energy or operational costs savings plus capital 26
cost avoidance will meet or exceed the costs of the energy conservation measures 27 UNOFFICIAL COPY 24 RS BR 1582
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within the term of the contract. The qualified provider shall, on an annual basis, 1
reimburse the local public agency for any shortfall in guaranteed energy savings 2
projected in the contract. A qualified provider shall provide a sufficient bond to the 3
local public agency for the installation and the faithful performance of all the 4
measures included in the contract. The guaranteed energy savings contract may 5
provide for payments over a period of time, not to exceed the term of the contract. 6
(8) The qualified provider shall provide the local public agency with an annual 7
reconciliation statement. The statement shall disclose any shortfalls or surplus 8
between guaranteed energy and operational savings specified in the guaranteed 9
energy savings contract and actual energy and operational savings incurred during a 10
given guarantee year. The guarantee year shall consist of a twelve (12) month term 11
commencing from the time that the energy conservation measures became fully 12
operational. The qualified provider shall pay the local public agency any short fall 13
in the guaranteed energy and operation savings within thirty (30) days after the total 14
year savings have been determined. If there is a surplus in the actual guaranteed 15
energy and operational savings in a given year, that surplus savings may be carried 16
forward and applied against any possible savings shortfall in the following 17
guarantee year, except that the surplus carried forward is limited to a period not to 18
exceed one (1) year. If the qualified provider pays the local public agency for a 19
short fall in energy or operational savings incurred during a given guarantee year 20
and there is a surplus in energy or operational savings in future guarantee years, the 21
qualified provider shall bill the local public agency for an amount not to exceed the 22
amount of the short fall in the given guarantee year. 23
(9) The use of capital cost avoidance shall be subject to the following restrictions: 24
(a) The amount expended shall not exceed fifty percent (50%) of the project cost; 25
and 26
(b) Capital cost avoidance shall be restricted to payment for permanent equipment 27 UNOFFICIAL COPY 24 RS BR 1582
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replacement as follows: 1
1. Storm windows or doors, multiglazed windows or doors, additional 2
glazing, and reduction in glass area; 3
2. Replacement of heating, ventilating, or air conditioning major 4
components or systems; 5
3. New lighting fixtures where required to achieve Illuminating 6
Engineering Society of North America (IES) standards, provided the 7
existing light fixtures shall have been determined to be obsolete and 8
incapable of achieving IES standards; and 9
4. Life safety system replacements or upgrades which shall have been 10
determined to be necessary to conform with existing state and local 11
codes and standards. 12
(10) The commissioner of education shall review, and approve or disapprove projects 13
from local school districts relating to energy conservation measures under a 14
guaranteed energy savings contract, on the basis of the following guidelines: 15
(a) The project design's compliance with technical, health, and safety standards as 16
required by administrative regulation; 17
(b) The availability of general funds, capital outlay allotments under KRS 18
157.420 or local and state funds from the Facilities Support Program of 19
Kentucky as provided by KRS 157.440, for projects that will use capital cost 20
avoidance; 21
(c) The appropriate use of capital outlay allotments under KRS 157.420, local 22
and state funds from the Facilities Support Program of Kentucky as provided 23
by KRS 157.440, for projects using capital cost avoidance, based on the 24
project's compliance with the district's approved facility plan; 25
(d) The funding capability of the school district; and 26
(e) The financing mechanism and proper financing documentation. 27 UNOFFICIAL COPY 24 RS BR 1582
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(11) The request for proposal as provided in subsections (1) to (4) of this section shall be 1
deemed to satisfy the requirements set out in KRS 162.070(1), and shall not be 2
subject to an award determination based on the lowest competitive bid or a separate 3
bidding process for each energy conservation measure listed in the proposal. 4
(12) A guaranteed energy savings contract that does not involve construction or the 5
installation of physical improvements shall not require the approval of the 6
commissioner of education and shall not be subject to other requirements of this 7
section. 8
Section 6. KRS 65.027 is amended to read as follows: 9
(1) As used in this section, "local government" means city, county, urban-county, 10
consolidated local government, charter county, unified local government, or special 11
district. 12
(2) For all contracts awarded by a local government, the local government shall apply 13
the reciprocal preference for resident bidders described in KRS 45A.494. 14
(3) Sections 1 and 3 of this Act shall apply to all contracts awarded by a local 15
government for construction or maintenance of a public building or public 16
works. 17
Section 7. KRS 162.070 is amended to read as follows: 18
(1) The contracts for the erection of new school buildings, additions and repairs to old 19
buildings, except additions or repairs not exceeding seven thousand five hundred 20
dollars ($7,500), shall be made by the board of education with the lowest and best 21
responsible bidder complying with the terms of the letting, after advertisement for 22
competitive bids pursuant to KRS Chapter 424, but the board may reject any or all 23
bids. All necessary specifications and drawings shall be prepared for all such work. 24
The board shall advertise for bids on all supplies and equipment that it desires to 25
purchase, except where the amount of the purchase does not exceed seven thousand 26
five hundred dollars ($7,500), and shall accept the bid of the lowest and best bidder 27 UNOFFICIAL COPY 24 RS BR 1582
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taking into consideration the price and the reciprocal preference for resident bidders 1
under KRS 45A.494, but the board may reject any and all bids. 2
(2) Sections 1, 2, and 3 of this Act shall apply to all contracts for construction or 3
maintenance of a school building or other public works. 4
Section 8. KRS 164A.575 is amended to read as follows: 5
(1) The governing boards of each institution may elect to purchase interest in real 6
property, contractual services, rentals of all types, supplies, materials, equipment, 7
printing, and services, except that competitive bids may not be required for: 8
(a) Contractual services where no competition exists; 9
(b) Food, clothing, equipment, supplies, or other materials to be used in 10
laboratory and experimental studies; 11
(c) Instructional materials available from only one (1) source; 12
(d) Where rates are fixed by law or ordinance; 13
(e) Library books; 14
(f) Commercial items that are purchased for resale; 15
(g) Professional, technical, scientific, or artistic services, but contracts shall be 16
submitted in accordance with KRS 45A.690 to 45A.725; 17
(h) All other commodities, equipment, and services which, in the reasonable 18
discretion of the board, are available from only one (1) source; and 19
(i) Interests in real property. 20
(2) Nothing in this section shall deprive the boards from negotiating with vendors who 21
maintain a General Services Administration price agreement with the United States 22
of America or any agency thereof, provided, however, that no contract executed 23
under this provision shall authorize a price higher than is contained in the contract 24
between General Services Administration and the vendor affected. 25
(3) The governing board shall require the institution to take and maintain inventories of 26
plant and equipment. 27 UNOFFICIAL COPY 24 RS BR 1582
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(4) The governing board shall establish procedures to identify items of common 1
general usage among all departments to foster volume purchasing. It shall establish 2
and enforce schedules for purchasing supplies, materials, and equipment. 3
(5) The governing board shall have power to salvage, to exchange, and to condemn 4
supplies, equipment, and real property. 5
(6) Upon the approval of the secretary of the Finance and Administration Cabinet, the 6
governing board may purchase or otherwise acquire all real property determined to 7
be needed for the institution's use. The amount paid shall not exceed the fair market 8
value as determined by a qualified appraiser or the value set by the eminent domain 9
procedure. Any real property acquired under this section shall be in name of the 10
Commonwealth for the use and benefit of the institution. 11
(7) (a) Notwithstanding KRS 56.806, the governing board may renegotiate the cost 12
of a lease after the expiration of the lease term and any renewal terms 13
provided in the lease prior to any renewal not provided for in the terms of the 14
lease. 15
(b) Except when a lease incorporates a lease-purchase under KRS 56.806, the 16
governing board shall reserve the right to cancel a lease upon at least thirty 17
(30) days' written notice. 18
(c) Notwithstanding KRS 56.823(2) and (3), any lease renewals, except automatic 19
renewals permitted under KRS 56.803, 56.805(2), and 56.806(1), for which 20
the annual rental cost will exceed two hundred thousand dollars ($200,000) 21
shall be reported to the Capital Projects and Bond Oversight Committee in the 22
same format as set out in KRS 56.823(2). 23
(d) Notwithstanding KRS 56.813, a public college or university may pay for 24
improvements to leased property costing in excess of ten thousand dollars 25
($10,000) but less than one million dollars ($1,000,000) in a lump sum upon 26
approval of its board using non-general fund appropriations and without 27 UNOFFICIAL COPY 24 RS BR 1582
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incurring debt. 1
(8) The governing board shall sell or otherwise dispose of all real or personal property 2
of the institution which is not needed or has become unsuitable for public use, or 3
would be more suitable consistent with the public interest for some other use, as 4
determined by the board. The determination of the board shall be set forth in an 5
order, and shall be reached only after review of a written request by the institution 6
desiring to dispose of the property. Such request shall describe the property and 7
state the reasons why the institution believes disposal should be effected. All 8
instruments required by law to be recorded which convey any interest in any such 9
real property so disposed of shall be executed and signed by the appropriate officer 10
of the board. Unless the board deems it in the best interest of the institution to 11
proceed otherwise, all such real or personal property shall be sold either by 12
invitation of sealed bids or by public auction; provided, however, that the selling 13
price of any interest in real property shall not be less than the fair market value 14
thereof as determined by the Finance and Administration Cabinet or the 15
Transportation Cabinet for such requirements of that department. 16
(9) Real property or any interest therein may, subject to the provisions of KRS Chapter 17
45A, be purchased, leased, or otherwise acquired from any officer or employee of 18
any board of the institution, based upon a written application by the grantor or 19
lessor approved by the board, that the employee has not either himself or herself, or 20
through any other person, influenced or attempted to influence either the board 21
requesting the purchase of the property. In any case in which such an acquisition is 22
consummated, the said request and finding shall be recorded and kept by the 23
Secretary of State along with the other documents recorded pursuant to the 24
provisions of KRS Chapter 56. 25
(10) (a) As used in this section, "construction manager-agency," "construction 26
management-at-risk," "design-bid-build," "design-build," and "construction 27 UNOFFICIAL COPY 24 RS BR 1582
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manager-general contractor" shall have the same meaning as in KRS 1
45A.030. 2
(b) For capital construction projects, the procurement may be on a total design-3
bid-build basis, a design-build basis, construction manager-general contractor 4
basis, or construction management-at-risk basis, whichever in the judgment of 5
the board offers the best value to the taxpayer. Best value shall be determined 6
in accordance with KRS 45A.070. Proposals shall be reviewed by the 7
institution's engineering staff to assure quality and value, and compliance with 8
procurement procedures. All specifications shall be written to promote 9
competition. Services for projects delivered on the design-build basis, 10
construction manager-general contractor basis, or construction management-11
at-risk basis shall be procured in accordance with KRS 45A.180, KRS 12
45A.183, and the regulations promulgated in accordance with KRS 45A.180. 13
Nothing in this section shall prohibit the procurement of construction 14
manager-agency services. 15
(c) Notwithstanding KRS 45A.185, for all capital construction projects, bidder 16
security for competitive sealed bidding for construction contracts shall only be 17
required when the price is estimated to exceed one million dollars 18
($1,000,000). 19
(11) The governing board shall attempt in every practicable way to insure the 20
institution's supplying its real needs at the lowest possible cost. To accomplish this 21
the board may enter into cooperative agreements with other public or private 22
institutions of education or health care. 23
(12) The governing board shall have control and supervision over all purchases of 24
energy consuming equipment, supplies, and related equipment purchased or 25
acquired by the institution, and shall designate by regulation the manner in which 26
an energy consuming item will be purchased so as to promote energy conservation 27 UNOFFICIAL COPY 24 RS BR 1582
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and acquisition of energy efficient products. 1
(13) The governing board may negotiate directly for the purchase of contractual 2
services, supplies, materials, or equipment in bona fide emergencies regardless of 3
estimated costs. The existence of the emergency must be fully explained, in writing, 4
by the vice president responsible for business affairs and such explanation must be 5
approved by the institution president. The letter and approval shall be filed with the 6
record of all such purchases. Where practical, standard specifications shall be 7
followed in making emergency purchases. A good faith effort shall be made to 8
effect a competitively established price for emergency purchases. 9
(14) (a) All governing boards that purchase agricultural products, as defined by KRS 10
45A.630, shall, on or before January 1 of each year, provide a report to the 11
Legislative Research Commission and to the Department of Agriculture 12
describing the types, quantities, and costs of each product purchased. The 13
report shall be completed on a form provided by the department. 14
(b) If purchasing agricultural products, a governing board shall encourage the 15
purchase of Kentucky-grown agricultural products in accordance with KRS 16
45A.645. If a governing board purchases agricultural products through a 17
contract with a vendor or food service provider, the contract shall require that 18
if Kentucky-grown agricultural products are purchased, the products shall be 19
purchased in accordance with KRS 45A.645. Only contracts entered into or 20
renewed after July 15, 2008, shall be required to comply with the provisions 21
of this subsection. 22
(c) All governing boards that purchase Kentucky-grown agricultural products 23
shall, on or before January 1 of each year, provide a report to the Legislative 24
Research Commission and to the Department of Agriculture describing the 25
types, quantities, and costs of each product purchased. The report shall be 26
completed on a form provided by the department. 27 UNOFFICIAL COPY 24 RS BR 1582
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(15) Notwithstanding KRS 45.760, the governing board may authorize a capital 1
construction project or a major item of equipment even though it is not specifically 2
listed in any branch budget bill, subject to the following conditions and procedures: 3
(a) The full cost shall be funded solely by non-general fund appropriations; 4
(b) Moneys specifically budgeted and appropriated by the General Assembly for 5
another purpose shall not be allotted or reallotted for expenditure on the 6
project or major item of equipment. Moneys utilized shall not jeopardize any 7
existing program and shall not require the use of any current general funds 8
specifically dedicated to existing programs; and 9
(c) The institution's president, or designee, shall submit the project or major item 10
of equipment to the Capital Projects and Bond Oversight Committee for 11
review as provided by KRS 45.800. 12
(16) Governing boards shall apply the reciprocal resident bidder preference described in 13
KRS 45A.494 prior to the award of any contract. 14
(17) Governing boards may authorize the use of reverse auctions as defined in KRS 15
45A.070 for the procurement of goods and leases. 16
(18) Sections 1 and 3 of this Act shall apply to all contracts issued by a governing 17
board for construction and maintenance of a public building or other public 18
works. 19
(19)[(18)] (a) Notwithstanding KRS 56.070, the governing board may obtain private 20
insurance to cover any state property in the institution's possession against 21
loss by fire and other hazards. The level of private insurance coverage shall be 22
commensurate with or greater than the insurance coverage provided through 23
the state fire and tornado insurance fund. An institution whose governing 24
board elects to obtain private insurance shall notify the secretary of the 25
Finance and Administration Cabinet at least six (6) months before terminating 26
the institution's insurance coverage through the state fire and tornado 27 UNOFFICIAL COPY 24 RS BR 1582
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insurance fund. 1
(b) No later than January 1 of each year, an institution whose governing board 2
elects to obtain private insurance instead of insurance coverage provided 3
through the state fire and tornado insurance fund shall certify, in writing, to 4
the secretary of the Finance and Administration Cabinet that the property is 5
insured in accordance with paragraph (a) of this subsection and shall attach a 6
copy of the private insurance policy. 7
Section 9. KRS 176.070 is amended to read as follows: 8
(1) Sections 1, 2, and 3 of this Act shall apply to all contracts issued by the 9
department. 10
(2) After surveys, plans, specifications and estimates have been completed for any road 11
or section thereof, and the type and character of the road has been determined, and 12
the right-of-way obtained, the bureau shall advertise by publication pursuant to 13
KRS Chapter 424, for bids on the work, and may contract for the purchase of all 14
materials necessary for the construction and maintenance of roads. 15
(3)[(2)] Before advertising for bids for the construction or reconstruction of any 16
highway, the department may determine the type of improvement desired, and may 17
advertise and receive bids for only the types determined. The advertisement shall 18
make it generally known that the work is to be done, and shall state the place where 19
the bidders may examine the plans and specifications. 20
Section 10. KRS 176.080 is amended to read as follows: 21
(1) Sections 1, 2, and 3 of this Act shall apply to all contracts issued by the 22
department. 23
(2) Each bidder shall accompany his or her bid with a bond or certified check payable 24
to the State Treasurer for a reasonable sum, fixed by the department, guaranteeing 25
that he or she will enter into a contract with the department for doing the work if 26
the work is awarded to him or her. 27 UNOFFICIAL COPY 24 RS BR 1582
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(3)[(2)] Bids shall be opened publicly at the time and place designated in the 1
invitation for bids. At the time the bids are opened, the department shall announce 2
the department's engineer's estimate and make it a part of the department's records 3
pertaining to the letting of any highway construction project contract for which bids 4
were received. Each bid, together with the name of the bidder and the department's 5
engineer's estimate, shall be recorded and open to public inspection. 6
(4)[(3)] The contract shall be awarded to the lowest and best bidder. The department 7
may require bonds from any contractor to secure the performance of any contract or 8
may require security by any other means it deems advisable. 9
(5)[(4)] The department may reject any bid when it finds it for the best interest of the 10
state to do so. When all bids are rejected, the department shall advertise for new 11
bids as in the first place. 12
Section 11. KRS 424.260 is amended to read as follows: 13
(1) Except where a statute specifically fixes a larger sum as the minimum for a 14
requirement of advertisement for bids, no city, county, or district, or board or 15
commission of a city or county, or sheriff or county clerk, may make a contract, 16
lease, or other agreement for: 17
(a) Materials; 18
(b) Supplies, except perishable foods such as meat, poultry, fish, egg products, 19
fresh vegetables, and fresh fruits; 20
(c) Equipment; or 21
(d) Contractual services other than professional; 22
involving an expenditure of more than forty thousand dollars ($40,000) without first 23
making newspaper advertisement for bids. The advertisement for bids shall 24
include notice that Sections 1 and 3 of this Act apply to all contracts involving 25
construction or maintenance of a public building or other public works. This 26
subsection shall not apply to the transfer of property between governmental 27 UNOFFICIAL COPY 24 RS BR 1582
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agencies as authorized in KRS 82.083(4)(a). 1
(2) If the fiscal court requires that the sheriff or county clerk advertise for bids on 2
expenditures of less than forty thousand dollars ($40,000), the fiscal court 3
requirement shall prevail. 4
(3) (a) Nothing in this statute shall limit or restrict the ability of a local school district 5
to acquire supplies and equipment outside of the bidding procedure if those 6
supplies and equipment meet the specifications of the contracts awarded by 7
the Office of Material and Procurement Services in the Office of the 8
Controller within the Finance and Administration Cabinet or a federal, local, 9
or cooperative agency and are available for purchase elsewhere at a lower 10
price. A board of education may purchase those supplies and equipment 11
without advertising for bids if, prior to making the purchases, the board of 12
education obtains certification from the district's finance or purchasing officer 13
that the items to be purchased meet the standards and specifications fixed by 14
state price contract, federal (GSA) price contract, or the bid of another school 15
district whose bid specifications allow other districts to utilize their bids, and 16
that the sales price is lower than that established by the various price contract 17
agreements or available through the bid of another school district whose bid 18
specifications would allow the district to utilize their bid. 19
(b) The procedures set forth in paragraph (a) of this subsection shall not be 20
available to the district for any specific item once the bidding procedure has 21
been initiated by an invitation to bid and a publication of specifications for 22
that specific item has been published. In the event that all bids are rejected, 23
the district may again avail itself of the provisions of paragraph (a) of this 24
subsection. 25
(4) This requirement shall not apply in an emergency if the chief executive officer of 26
the city, county, or district has duly certified that an emergency exists, and has filed 27 UNOFFICIAL COPY 24 RS BR 1582
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a copy of the certificate with the chief financial officer of the city, county, or 1
district, or if the sheriff or the county clerk has certified that an emergency exists, 2
and has filed a copy of the certificate with the clerk of the court where his necessary 3
office expenses are fixed pursuant to KRS 64.345 or 64.530, or if the 4
superintendent of the board of education has duly certified that an emergency 5
exists, and has filed a copy of the certificate with the chief state school officer. 6
(5) The provisions of subsection (1) of this section shall not apply for the purchase of 7
wholesale electric power for resale to the ultimate customers of a municipal utility 8
organized under KRS 96.550 to 96.900. 9
(6) Subsection (1) of this section shall not apply to purchases for products or services 10
made pursuant to KRS 82.084. 11
Section 12. Sections 1 to 3 of this Act may be cited as the Kentucky Buy 12
American Act. 13