UNOFFICIAL COPY 24 RS BR 357 Page 1 of 34 XXXX 2/12/2024 12:55 PM Jacketed AN ACT relating to education and declaring an emergency. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 SECTION 1. KRS 162.060 IS REPEALED AND REENACTED TO READ 3 AS FOLLOWS: 4 Each local board of education shall submit all plans and specifications for new public 5 school buildings and all additions to or alterations of old buildings to the chief state 6 school officer, but no approval shall be required for a local board to commence the 7 design, construction, renovation, or modification of the district's facilities. The 8 Kentucky Department of Education shall not require a local board to seek approval for 9 the plans or specifications, but may require the local board to complete specific forms 10 as appropriate for the purposes of recordkeeping and data collection. 11 Section 2. KRS 156.160 is amended to read as follows: 12 (1) With the advice of the Local Superintendents Advisory Council, the Kentucky 13 Board of Education shall promulgate administrative regulations establishing 14 standards which school districts shall meet in student, program, service, and 15 operational performance. These regulations shall comply with the expected 16 outcomes for students and schools set forth in KRS 158.6451. Administrative 17 regulations shall be promulgated for the following: 18 (a) Courses of study for the different grades and kinds of common schools 19 identifying the common curriculum content directly tied to the goals, 20 outcomes, and assessment strategies developed under KRS 158.645, 21 158.6451, and 158.6453 and distributed to local school districts and schools. 22 The administrative regulations shall provide that: 23 1. If a school offers American sign language, the course shall be accepted 24 as meeting the foreign language requirements in common schools 25 notwithstanding other provisions of law; 26 2. If a school offers the Reserve Officers Training Corps program, the 27 UNOFFICIAL COPY 24 RS BR 357 Page 2 of 34 XXXX 2/12/2024 12:55 PM Jacketed course shall be accepted as meeting the physical education requirement 1 for high school graduation notwithstanding other provisions of law; and 2 3. Every public middle and high school's curriculum shall include 3 instruction on the Holocaust and other cases of genocide, as defined by 4 the United Nations Convention on the Prevention and Punishment of the 5 Crime of Genocide, that a court of competent jurisdiction, whether a 6 court in the United States or the International Court of Justice, has 7 determined to have been committed by applying rigorous standards of 8 due process; 9 (b) Courses of study or educational experiences available to students in all middle 10 and high schools to fulfill the prerequisites for courses in advanced science 11 and mathematics as defined in KRS 158.845; 12 (c) The acquisition and use of educational equipment for the schools as 13 recommended by the Council for Education Technology; 14 (d) The minimum requirements for high school graduation in light of the 15 expected outcomes for students and schools set forth in KRS 158.6451. The 16 minimum requirements shall not include achieving any postsecondary 17 readiness indicator as described in KRS 158.6455 or any minimum score on a 18 statewide assessment administered under KRS 158.6453. Student scores from 19 any assessment administered under KRS 158.6453 that are determined by the 20 department's technical advisory committee to be valid and reliable at the 21 individual level shall be included on the student transcript. The department's 22 technical advisory committee shall submit its determination to the 23 commissioner of education and the Legislative Research Commission; 24 (e) The requirements for an alternative high school diploma for students with 25 disabilities whose individualized education program indicates that, in 26 accordance with 20 U.S.C. sec. 1414(d)(1)(A): 27 UNOFFICIAL COPY 24 RS BR 357 Page 3 of 34 XXXX 2/12/2024 12:55 PM Jacketed 1. The student cannot participate in the regular statewide assessment; and 1 2. An appropriate alternate assessment has been selected for the student 2 based upon a modified curriculum and an individualized course of 3 study; 4 (f) Taking and keeping a school census, and the forms, blanks, and software to be 5 used in taking and keeping the census and in compiling the required reports. 6 The board shall create a statewide student identification numbering system 7 based on students' Social Security numbers. The system shall provide a 8 student identification number similar to, but distinct from, the Social Security 9 number, for each student who does not have a Social Security number or 10 whose parents or guardians choose not to disclose the Social Security number 11 for the student; 12 (g) Sanitary and protective construction of public school buildings, toilets, 13 physical equipment of school grounds, school buildings, and classrooms. With 14 respect to physical standards of sanitary and protective construction for school 15 buildings, the Kentucky Board of Education shall adopt the Uniform State 16 Building Code; 17 (h) Medical inspection, physical and health education and recreation, and other 18 regulations necessary or advisable for the protection of the physical welfare 19 and safety of the public school children. The administrative regulations shall 20 set requirements for student health standards to be met by all students in 21 grades four (4), eight (8), and twelve (12) pursuant to the outcomes described 22 in KRS 158.6451. The administrative regulations shall permit a student who 23 received a physical examination no more than six (6) months prior to his or 24 her initial admission to Head Start to substitute that physical examination for 25 the physical examination required by the Kentucky Board of Education of all 26 students upon initial admission to the public schools, if the physical 27 UNOFFICIAL COPY 24 RS BR 357 Page 4 of 34 XXXX 2/12/2024 12:55 PM Jacketed examination given in the Head Start program meets all the requirements of the 1 physical examinations prescribed by the Kentucky Board of Education; 2 (i) A vision examination by an optometrist or ophthalmologist that shall be 3 required by the Kentucky Board of Education. The administrative regulations 4 shall require evidence that a vision examination that meets the criteria 5 prescribed by the Kentucky Board of Education has been performed. This 6 evidence shall be submitted to the school no later than January 1 of the first 7 year that a three (3), four (4), five (5), or six (6) year-old child is enrolled in a 8 public school, public preschool, or Head Start program; 9 (j) 1. [Beginning with the 2010-2011 school year, ]A dental screening or 10 examination by a dentist, dental hygienist, physician, registered nurse, 11 advanced practice registered nurse, or physician assistant that shall be 12 required by the Kentucky Board of Education. The administrative 13 regulations shall require evidence that a dental screening or examination 14 that meets the criteria prescribed by the Kentucky Board of Education 15 has been performed. This evidence shall be submitted to the school no 16 later than January 1 of the first year that a five (5) or six (6) year-old 17 child is enrolled in a public school. 18 2. A child shall be referred to a licensed dentist if a dental screening or 19 examination performed by anyone other than a licensed dentist identifies 20 the possibility of dental disease; 21 (k) The transportation of children to and from school; 22 (l) The fixing of holidays on which schools may be closed and special days to be 23 observed, and the pay of teachers during absence because of sickness or 24 quarantine or when the schools are closed because of quarantine; 25 (m) The preparation of budgets and salary schedules for the several school 26 districts under the management and control of the Kentucky Board of 27 UNOFFICIAL COPY 24 RS BR 357 Page 5 of 34 XXXX 2/12/2024 12:55 PM Jacketed Education; 1 (n) A uniform series of forms and blanks, educational and financial, including 2 forms of contracts, for use in the several school districts; 3 (o) The purchase and disposal of real and personal property owned by local 4 boards of education. An administrative regulation shall require prior 5 approval for a school district's purchase or disposal of real property. The 6 local board of education shall submit a request to purchase or dispose of 7 real property to the commissioner of education or designee. The 8 commissioner of education or designee shall approve or disapprove the 9 request within thirty (30) days of submission. An approval shall be reported 10 to the Kentucky Board of Education. A local board of education may appeal 11 a disapproval to the Kentucky Board of Education at the next regular 12 meeting; and 13 (p) The development and implementation of procedures, for all students who are 14 homeless children and youths as defined in 42 U.S.C. sec. 11434a(2), to do 15 the following: 16 1. Awarding and accepting of credit, including partial credit, for all 17 coursework satisfactorily completed by a student while enrolled at 18 another school; 19 2. Allowing a student who was previously enrolled in a course required for 20 graduation the opportunity, to the extent practicable, to complete the 21 course, at no cost to the student, before the beginning of the next school 22 year; 23 3. Awarding a diploma, at the student's request, by a district from which 24 the student transferred, if the student transfers schools at any time after 25 the completion of the student's second year of high school and the 26 student is ineligible to graduate from the district to which the student 27 UNOFFICIAL COPY 24 RS BR 357 Page 6 of 34 XXXX 2/12/2024 12:55 PM Jacketed transfers, but meets the graduation requirements of the district from 1 which the student transferred; and 2 4. Exempting the student from all coursework and other requirements 3 imposed by the local board of education that are in addition to the 4 minimum requirements for high school graduation established by the 5 Kentucky Board of Education pursuant to paragraph (d) of this 6 subsection in the district to which the student transfers, if the student 7 transfers schools at any time after the completion of the student's second 8 year of high school and the student is ineligible to graduate both from 9 the district to which the student transfers and the district from which the 10 student transferred. 11 (2) (a) At the request of a local board of education or a school council, a local school 12 district superintendent shall request that the Kentucky Board of Education 13 waive any administrative regulation promulgated by that board. Beginning in 14 the 1996-97 school year, a request for waiver of any administrative regulation 15 shall be submitted to the Kentucky Board of Education in writing with 16 appropriate justification for the waiver. The Kentucky Board of Education 17 may approve the request when the school district or school has demonstrated 18 circumstances that may include but are not limited to the following: 19 1. An alternative approach will achieve the same result required by the 20 administrative regulation; 21 2. Implementation of the administrative regulation will cause a hardship on 22 the school district or school or jeopardize the continuation or 23 development of programs; or 24 3. There is a finding of good cause for the waiver. 25 (b) The following shall not be subject to waiver: 26 1. Administrative regulations relating to health and safety; 27 UNOFFICIAL COPY 24 RS BR 357 Page 7 of 34 XXXX 2/12/2024 12:55 PM Jacketed 2. Administrative regulations relating to civil rights; 1 3. Administrative regulations required by federal law; and 2 4. Administrative regulations promulgated in accordance with KRS 3 158.6451, 158.6453, 158.6455, and this section, relating to measurement 4 of performance outcomes and determination of successful districts or 5 schools, except upon issues relating to the grade configuration of 6 schools. 7 (c) Any waiver granted under this subsection shall be subject to revocation upon 8 a determination by the Kentucky Board of Education that the school district or 9 school holding the waiver has subsequently failed to meet the intent of the 10 waiver. 11 (3) Any private, parochial, or church school may voluntarily comply with curriculum, 12 certification, and textbook standards established by the Kentucky Board of 13 Education and be certified upon application to the board by such schools. 14 (4) Any public school that violates the provisions of KRS 158.854 shall be subject to a 15 penalty to be assessed by the commissioner of education as follows: 16 (a) The first violation shall result in a fine of no less than one (1) week's revenue 17 from the sale of the competitive food; 18 (b) Subsequent violations shall result in a fine of no less than one (1) month's 19 revenue from the sale of the competitive food; 20 (c) "Habitual violations," which means five (5) or more violations within a six (6) 21 month period, shall result in a six (6) month ban on competitive food sales for 22 the violating school; and 23 (d) Revenue collected as a result of the fines in this subsection shall be 24 transferred to the food service fund of the local school district. 25 Section 3. KRS 157.420 is amended to read as follows: 26 Public school funds made available to the credit of each district during any year shall be 27 UNOFFICIAL COPY 24 RS BR 357 Page 8 of 34 XXXX 2/12/2024 12:55 PM Jacketed received, held, and expended by the district board, subject to the provisions of law and 1 administrative regulations of the Kentucky Board of Education. The following 2 restrictions shall govern the expenditure of funds from the public school fund: 3 (1) The salary paid any rank of teachers shall be at least equivalent to the amount set 4 forth in the biennial budget schedule for each rank and experience for a term of one 5 hundred eighty-five (185) days for full-time service during the regular school year. 6 (2) Beginning with the 2004-2006 biennium, the Kentucky Board of Education shall 7 not approve any working budget or salary schedule for local boards of education for 8 any school year unless the one hundred eighty-five (185) day salary schedule for 9 certified staff has been adjusted over the previous year's salary schedule by a 10 percentage increase at least equal to the cost-of-living adjustment that is provided 11 state government workers under the biennial budget. The base funding level in the 12 program for support education excellence in Kentucky as defined in KRS 157.320 13 shall be increased by the statewide dollar value of the annual required cost-of-living 14 percentage adjustment that shall be estimated on the sum of the previous year's 15 statewide teachers' salaries. 16 (3) A district that compensates its teachers or employees for unused sick leave at the 17 time of retirement, pursuant to KRS 161.155, may create an escrow account to 18 maintain the amount of funds necessary to pay teachers or employees who qualify 19 for receipt of the benefit. The fund is limited to not more than fifty percent (50%) of 20 the maximum liability for the current year to be determined according to the 21 number of staff employed by the district on September 15. Interest generated by the 22 account shall be calculated as part of the total amount. The funds shall not be used 23 for any purpose other than compensation for unused sick leave at the time of 24 retirement and shall not be considered as part of the general fund balance in 25 determining available local revenue for purposes of KRS 157.620. 26 (4) (a) The per pupil capital outlay allotment for each district from the public school 27 UNOFFICIAL COPY 24 RS BR 357 Page 9 of 34 XXXX 2/12/2024 12:55 PM Jacketed fund and from local sources shall be kept in a separate account and may be 1 used by the district only for capital outlay projects[ approved by the 2 commissioner of education in accordance with requirements of law, and] 3 based on the district facilities plan[a survey] made in accordance with 4 administrative regulations of the Kentucky Board of Education. These funds 5 shall be used for the following capital outlay purposes: 6 1. For direct payment of construction costs; 7 2. For debt service on voted and funding bonds; 8 3. For payment or lease-rental agreements under which the board 9 eventually will acquire ownership of a school plant; 10 4. For the retirement of any deficit resulting from overexpenditure for 11 capital construction, if such deficit resulted from an emergency declared 12 by the Kentucky Board of Education under KRS 160.550; and 13 5. As a reserve fund for the above-named purposes, to be carried forward 14 in ensuing budgets. 15 (b) A district may [submit a request to the commissioner of education to ]use 16 funds from the per pupil capital outlay allotment to purchase land for a new 17 school or to modify an existing school if the project is included on the 18 approved district facilities[facility] plan for completion within eight (8) years. 19 The land shall not be included in the calculation of the school district's unmet 20 need.[ The commissioner may grant or deny the district's request at his or her 21 discretion.] 22 (c) A district which has experienced an increase in adjusted average daily 23 attendance, as defined by administrative regulation, of twenty percent (20%) 24 or more over a five (5) year period may submit a request to the commissioner 25 of education to use capital outlay funds for the operation of a new school for 26 the first two (2) years following its opening. The commissioner may grant or 27 UNOFFICIAL COPY 24 RS BR 357 Page 10 of 34 XXXX 2/12/2024 12:55 PM Jacketed deny the district's request at his or her discretion. 1 (d) A local school district may submit a request to the commissioner of education 2 to use capital outlay funds for maintenance expenditures or for the purchase of 3 property insurance without forfeiting the district's participation in the School 4 Facilities Construction Commission program. Maintenance requests may 5 include other priorities that are not considered major renovations, such as 6 repair, renovation, or system upgrades that are necessary to maintain the 7 integrity of an existing school facility. 8 (5) The district may contribute capital outlay funds for energy conservation measures 9 under guaranteed energy savings contracts pursuant to KRS 45A.345, 45A.352, and 10 45A.353. Use of these funds, provided in KRS 45A.353, 56.774, and 58.600, shall 11 be based on the following: 12 (a) The energy conservation measures shall include facility alteration; 13 (b) The energy conservation measures shall be identified in the approved district 14 facilities[district's approved facility] plan; 15 (c) The current facility systems are consuming excess maintenance and operating 16 costs; 17 (d) The savings generated by the energy conservation measures are guaranteed; 18 (e) The capital outlay funds contributed to the energy conservation measures shall 19 be defined as capital cost avoidance as provided in KRS 45A.345(2) and shall 20 be subject to the restrictions on usage as specified in KRS 45A.352(9); and 21 (f) The equipment that is replaced shall have exceeded its useful life as 22 determined by a life-cycle cost analysis. 23 (6) If any district has a special levy for capital outlay or debt service that is equal to the 24 capital outlay allotment or a proportionate fraction thereof, and spends the proceeds 25 of that levy for the above-named purposes, the commissioner of education under 26 administrative regulations of the Kentucky Board of Education, may authorize the 27 UNOFFICIAL COPY 24 RS BR 357 Page 11 of 34 XXXX 2/12/2024 12:55 PM Jacketed district to use all or a proportionate fraction of its capital outlay allotment for 1 current expenses. However, a district which uses capital outlay funds for current 2 expenses shall not be eligible to participate in the School Facilities Construction 3 Commission funds, except when the current expenditures are approved by the 4 commissioner of education under subsection (4)[(b) or ](c) of this section. 5 (7) If [a survey shows that ]a school district has no capital outlay needs as shown in 6 subsection (4)(a)1., 2., 3., and 4. of this section, upon approval of the commissioner 7 of education, these funds may be used for school plant maintenance, repair, 8 insurance on buildings, replacement of equipment, purchase of school buses, and 9 the purchase of modern technological equipment, including telecommunications 10 hardware, televisions, computers, and other technological hardware to be utilized 11 for educational purposes only. 12 (8) [In surveying the schools, ]The Department of Education shall regularly conduct a 13 review to designate each school facility as a permanent, functional, or transitional 14 center. 15 (a) "Permanent center" means a center which meets the program standards 16 approved by the Kentucky Board of Education, is located so that students are 17 not subjected to an excessive amount of time being transported to the site, and 18 has established an attendance area which will maintain enrollment at capacity 19 but will also avoid overcrowding. 20 (b) "Functional center" means a center which does not meet all the criteria 21 established for a permanent facility, but is adequate to meet accreditation 22 program standards to insure no substantial academic or building deficiency. 23 [The facility plan shall include additions and renovations necessary to meet 24 current accreditation standards for which federal, state, and local funds may 25 be used.] 26 (c) "Transitional center" means a center which the local board of education has 27 UNOFFICIAL COPY 24 RS BR 357 Page 12 of 34 XXXX 2/12/2024 12:55 PM Jacketed determined shall no longer be designated permanent or functional. The center 1 shall be destined to be closed and shall not be eligible for new construction, 2 additions, or major renovation. However, the board of education shall 3 maintain any operating transitional center to provide a safe and healthy 4 environment for students. 5 (9) [Beginning in fiscal year 2011-2012, ]The Kentucky Department of Education shall 6 standardize the process for evaluating the overall quality and condition of all school 7 buildings across the state. The [evaluation ]process shall: 8 (a) Result in consistent categorization of buildings for local planning purposes 9 and for the distribution of state general fund moneys designated for capital 10 construction; 11 (b) Be based on measurable, objective criteria; 12 (c) Include numerical scoring with weights to recognize building components and 13 characteristics that address: 14 1. Life safety issues; 15 2. Compliance with state and federal codes; 16 3. Compliance with requirements under the Americans with Disabilities 17 Act; 18 4. Community spaces; 19 5. Instructional areas; 20 6. Mechanical, electrical, plumbing, and other technology systems; 21 7. Site and exterior building conditions; 22 8. Age of the buildings; 23 9. Feasibility of building additions or major renovations; 24 10. The districts' facility capacities; 25 11. Current use of temporary facilities; and 26 12. Projected enrollment growth; and 27 UNOFFICIAL COPY 24 RS BR 357 Page 13 of 34 XXXX 2/12/2024 12:55 PM Jacketed (d) Use of a third-party evaluator that utilizes an already established software-1 based system to perform the first, base-line evaluation. 2 (10) The Kentucky Board of Education shall promulgate an administrative regulation 3 upon recommendation of the Kentucky Department of Education and the School 4 Facilities Construction Commission to implement subsection (9) of this section. 5 (11) Under administrative regulations promulgated by the Kentucky Board of 6 Education, each district shall use the review and evaluation established in 7 subsections (8) and (9) of this section to develop a district facilities plan to outline 8 facility needs, plan future construction and renovation, and prioritize needed 9 projects. The district facilities plan: 10 (a) Shall place each current facility or any future projected facility into 11 categorical priorities and develop a priority order of district facilities 12 projects; 13 (b) May place extracurricular facilities into any categorical priority; 14 (c) Shall include any energy conservation measures planned under subsection 15 (5) of this section; 16 (d) Shall include any additions and renovations necessary for a school facility 17 rated as a functional center to meet current accreditation standards for 18 which federal, state, and local funds may be used; and 19 (e) Shall be submitted by the local board of education to the commissioner or 20 designee for approval. The commissioner or designee shall approve or 21 disapprove the plan within thirty (30) days of submission. An approved plan 22 shall be reported to the Kentucky Board of Education. A local board may 23 resubmit a disapproved plan with amendments or appeal the disapproval to 24 the Kentucky Board of Education at the next regular meeting. 25 (12)[(11)] If a local school board authorized elementary, middle, or secondary education 26 classes in a facility of a historical settlement school on January 1, 1994, the board 27 UNOFFICIAL COPY 24 RS BR 357 Page 14 of 34 XXXX 2/12/2024 12:55 PM Jacketed shall continue to use the facilities provided by the settlement school if the facilities 1 meet health and safety standards for education facilities as required by 2 administrative regulations. The local school board and the governing body of the 3 settlement school shall enter into a cooperative agreement that delineates the role, 4 responsibilities, and financial obligations for each party. 5 (13)[(12)] Notwithstanding the provisions of subsections (4) and (6) of this section, a 6 local district that has requested a mid-year adjustment in the support education 7 excellence in Kentucky funding under KRS 157.360(16) may request permission 8 from the commissioner of education to use capital outlay funds for the purchase of 9 school buses or to use the capital outlay funds for increased operational expenses 10 for the first three (3) years following the increased growth in the district without 11 forfeiture of the district's participation in the School Facilities Construction 12 Commission Program. The commissioner may grant or deny the district's request. 13 Section 4. KRS 157.440 is amended to read as follows: 14 (1) (a) Notwithstanding any statutory provisions to the contrary, effective for school 15 years beginning after July 1, 1990, the board of education of each school 16 district may levy an equivalent tax rate as defined in subsection (9)(a) of KRS 17 160.470 which will produce up to fifteen percent (15%) of those revenues 18 guaranteed by the program to support education excellence in Kentucky. The 19 levy for the 1990-91 school year shall be made no later than October 1, 1989, 20 and no later than October 1, 1990, for the 1991-92 school year, and by 21 October 1 of each odd-numbered year thereafter. Effective with the 1990-91 22 school year, revenue generated by this levy shall be equalized at one hundred 23 fifty percent (150%) of the statewide average per pupil assessment. 24 (b) To participate in the Facilities Support Program of Kentucky, the board of 25 education of each school district shall commit at least an equivalent tax rate of 26 five cents ($0.05) to debt service, new facilities, or major renovations of 27 UNOFFICIAL COPY 24 RS BR 357 Page 15 of 34 XXXX 2/12/2024 12:55 PM Jacketed existing school facilities, or the purchase of land[ if approved by the 1 commissioner of education as provided in KRS 157.420(4)(b)]. The five cents 2 ($0.05) shall be in addition to the thirty cents ($0.30) required by KRS 3 160.470(9) and any levy pursuant to paragraph (a) of this subsection. The levy 4 shall be made no later than October 1 of each odd-numbered year. Eligibility 5 for equalization funds for the biennium shall be based on the district funds 6 committed to debt service on that date. The five cents ($0.05) shall be 7 equalized at one hundred fifty percent (150%) of the statewide average per 8 pupil assessment. The equalization funds shall be committed to debt service to 9 the greatest extent possible, but any excess equalization funds not needed for 10 debt service shall be deposited to a restricted building fund account. The 11 funds may be escrowed for future debt service or used to address the priority 12 order[categorical priorities] listed in the approved district facilities plan 13 pursuant to Section 3 of this Act[KRS 157.420]. 14 (c) The board of education of each school district may contribute the levy 15 equivalent tax rate of five cents ($0.05) and equalization funds for energy 16 conservation measures under guaranteed energy savings contracts pursuant to 17 KRS 45A.345, 45A.352, and 45A.353. Use of these funds, as provided under 18 KRS 45A.353, 56.774, and 58.600 shall be based on the following guidelines: 19 1. Energy conservation measures shall include facility alteration; 20 2. Energy conservation measures shall be identified in the approved 21 district facilities[district's approved facility] plan pursuant to Section 3 22 of this Act[KRS 157.420]; 23 3. The current facility systems are consuming excess maintenance and 24 operating costs; 25 4. The savings generated by the energy conservation measures are 26 guaranteed; 27 UNOFFICIAL COPY 24 RS BR 357 Page 16 of 34 XXXX 2/12/2024 12:55 PM Jacketed 5. The levy equivalent tax rate of five cents ($0.05) and equalization funds 1 contributed to the energy conservation measures shall be defined as 2 capital cost avoidance as provided in KRS 45A.345(2) and shall be 3 subject to the restrictions on usage as specified in KRS 45A.352(9); and 4 6. The equipment that is replaced has exceeded its useful life as 5 determined by a life cycle cost analysis. 6 (d) The rate levied by a district board of education under the provisions of this 7 subsection shall not be subject to the public hearing provisions of KRS 8 160.470(7) or to the recall provisions of KRS 160.470(8). 9 (e) A school district which is at or above the equivalent tax rates permitted under 10 the provisions of the Kentucky Education Reform Act of 1990, 1990 Ky. Acts 11 ch. 476, shall not be required to levy an equivalent tax rate which is lower 12 than the rate levied during the 1989-90 school year. 13 (2) (a) A district may exceed the maximum provided by subsection (1) of KRS 14 160.470 provided that, upon request of the board of education of the district, 15 the county board of elections shall submit to the qualified voters of the 16 district, in the manner of submitting and voting as prescribed in paragraph (b) 17 of this subsection, the question whether a rate which would produce revenues 18 in excess of the maximum provided by subsection (1) of KRS 160.470 shall 19 be levied. The rate that may be levied under this section may produce revenue 20 up to no more than thirty percent (30%) of the revenue guaranteed by the 21 program to support education excellence in Kentucky plus the revenue 22 produced by the tax authorized by this section. Revenue produced by this levy 23 shall not be equalized with state funds. If a majority of those voting on the 24 question favor the increased rate, the tax levying authority shall, when the 25 next tax rate for the district is fixed, levy a rate not to exceed the rate 26 authorized by the voters. 27 UNOFFICIAL COPY 24 RS BR 357 Page 17 of 34 XXXX 2/12/2024 12:55 PM Jacketed (b) The election shall be held not less than fifteen (15) or more than thirty (30) 1 days from the time the request of the board is filed with the county clerk, and 2 reasonable notice of the election shall be given. The election shall be 3 conducted and carried out in the school district in all respects as required by 4 the general election laws and shall be held by the same officers as required by 5 the general election laws. The expense of the election shall be borne by the 6 school district. 7 (3) For the 1966 tax year and for all subsequent years for levies which were approved 8 prior to December 8, 1965, no district board of education shall levy a tax at a rate 9 under the provisions of this section which exceeds the compensating tax rate as 10 defined in KRS 132.010, except as provided in subsection (4) of this section and 11 except that a rate which has been approved by the voters under this section but 12 which was not levied by the district board of education in 1965 may be levied after 13 it has been reduced to the compensating tax rate as defined in KRS 132.010, and 14 except that in any school district where the rate levied in 1965 was less than the 15 maximum rate which had been approved by the voters, the compensating tax rate 16 shall be computed and may be levied as though the maximum approved rate had 17 been levied in 1965 and the amount of revenue which would have been produced 18 from such maximum levy had been derived therefrom. 19 (4) Notwithstanding the limitations contained in subsection (3) of this section, no tax 20 rate shall be set lower than that necessary to provide such funds as are required to 21 meet principal and interest payments on outstanding bonded indebtedness and 22 payments of rentals in connection with any outstanding school revenue bonds 23 issued under the provisions of KRS Chapter 162. 24 (5) The chief state school officer shall certify the compensating tax rate to the levying 25 authorities. 26 Section 5. KRS 157.615 is amended to read as follows: 27 UNOFFICIAL COPY 24 RS BR 357 Page 18 of 34 XXXX 2/12/2024 12:55 PM Jacketed As used in KRS 157.611 to 157.640, unless the context requires otherwise: 1 (1) "Available local revenue" means the sum of the school building fund account 2 balance; the bonding potential of the capital outlay and building funds; and the 3 capital outlay fund account balance on June 30 of odd-numbered years. These 4 accounts shall be as defined in the manual for Kentucky school financial accounting 5 systems; 6 (2) "Board of education" means the governing body of a county school district or an 7 independent school district; 8 (3) "Bonds" or "bonds of the commission" means bonds issued by the commission, or 9 issued by a city, county, or other agency or instrumentality of the Board of 10 Education, in accordance with KRS Chapter 162, payable as to principal and 11 interest from rentals received from a board of education or from the department 12 pursuant to a lease or from contributions from the commission, and constitute 13 municipal bonds exempt from taxation under the Constitution of the 14 Commonwealth; 15 (4) "Department" means the State Department of Education; 16 (5) "District technology plan" means the plan developed by the local district and the 17 Department of Education and approved by the Kentucky Board of Education upon 18 the recommendation of the Council for Education Technology; 19 (6) "Equivalent tax rate" means the rate which results when the income from all taxes 20 levied by the district for school purposes is divided by the total assessed value of 21 property plus the assessment for motor vehicles certified by the Department of 22 Revenue as provided by KRS 160.470; 23 (7) "Kentucky Education Technology System" means the statewide system set forth in 24 the technology master plan issued by the Kentucky Board of Education with the 25 recommendation of the Council for Education Technology and approved by the 26 Legislative Research Commission; 27 UNOFFICIAL COPY 24 RS BR 357 Page 19 of 34 XXXX 2/12/2024 12:55 PM Jacketed (8) "Lease" or "lease instrument" means a written instrument for the leasing of one (1) 1 or more school projects executed by the commission as lessor and a board of 2 education as lessee, or executed by the commission as lessor and the department as 3 lessee, as the case may be; 4 (9) "Lease/purchase agreement" means a lease between the school district or the 5 department and a vendor that includes an option to purchase the technology 6 equipment or software at the end of the lease period; 7 (10) "Percentage discount" means the degree to which the commission will participate in 8 meeting the bond and interest redemption schedule required to amortize bonds 9 issued by the commission on behalf of a local school district; 10 (11) "Project" means a defined item of need to construct new facilities or to provide 11 major renovation of existing facilities which is identified on the [priority schedule 12 of the approved ]district facilities[school facilities] plan; 13 (12) "District[school] facilities plan" means the plan required by Section 3 of this 14 Act[developed pursuant to the survey specified by KRS 157.420 and by] and the 15 administrative regulations of the Kentucky Board of Education; 16 (13) "Technology master plan" means the long-range plan for the implementation of the 17 Kentucky Education Technology System as developed by the Council for Education 18 Technology and approved by the Kentucky Board of Education and the Legislative 19 Research Commission; 20 (14) "Unmet facilities need" means the total cost of new construction and major 21 renovation needs as shown by the approved district[school] facilities plan less any 22 available local revenue; 23 (15) "Unmet technology need" means the total cost of technology need as shown by the 24 approved technology plan of the local district; and 25 (16) "Eligible district" means any local school district having an unmet facilities need, as 26 defined in this section, in excess of one hundred thousand dollars ($100,000) or a 27 UNOFFICIAL COPY 24 RS BR 357 Page 20 of 34 XXXX 2/12/2024 12:55 PM Jacketed district qualifying for education technology funding. 1 Section 6. KRS 157.620 is amended to read as follows: 2 (1) To participate in the school construction funding program, the district must have 3 unmet needs as defined by KRS 157.615 and must meet the following eligibility 4 criteria: 5 (a) Commit at least an equivalent tax rate of five cents ($0.05) to debt service, 6 new facilities, or major renovations of existing school facilities as defined by 7 KRS 157.440. A district that levies the five cents ($0.05) and has not accepted 8 an official offer of assistance from the School Facilities Construction 9 Commission, made pursuant to KRS 157.611, may use receipts from the levy 10 for other purposes as determined by the district board of education. 11 (b) On July 1 of odd-numbered years, the district board of education shall restrict 12 all available local revenue, as defined by KRS 157.615, for school building 13 construction, to be utilized in accordance with the priorities determined by the 14 most current approved district[school] facilities plan[ approved by the 15 Kentucky Board of Education]. 16 (2) Interest earned on restricted funds required by this section shall become a part of 17 the restricted funds. 18 (3) Funds restricted by the requirements of this section may be used by the district for 19 projects or a portion thereof as listed in priority order on the approved 20 district[school] facilities plan prior to receiving state funds. Any local school 21 district which is not an eligible district may be permitted, upon written application 22 to the Department of Education, to transfer funds restricted by KRS 157.611 to 23 157.640 for other school purposes. 24 (4) Not later than October 15 of the year immediately preceding an even-numbered 25 year regular session of the General Assembly, the Kentucky Board of Education 26 shall submit a statement to the School Facilities Construction Commission 27 UNOFFICIAL COPY 24 RS BR 357 Page 21 of 34 XXXX 2/12/2024 12:55 PM Jacketed certifying the following in each district: 1 (a) The amount of school facility construction needs in each district; 2 (b) The amount of available local revenue in each district; and 3 (c) That the district has or has not met the eligibility criteria established by 4 subsection (1) of this section. 5 (5) Construction needs shall be those needs specified in the approved district[school] 6 facilities plan[ approved by the Kentucky Board of Education] as of June 30 of the 7 year preceding an even-numbered year regular session of the General Assembly. 8 Section 7. KRS 157.621 is amended to read as follows: 9 (1) In addition to the levy required by KRS 157.440(1)(b) to participate in the Facilities 10 Support Program of Kentucky, local school districts that have made the levy 11 required by KRS 157.440(1)(b) are authorized to levy the following additional 12 equivalent rates to support debt service, new facilities, or major renovations of 13 existing school facilities, which levies shall not be subject to recall under any 14 provision of the Kentucky Revised Statutes, or to voter approval under the 15 provisions of KRS 157.440(2): 16 (a) 1. Prior to April 24, 2008, local school districts that have experienced 17 student population growth during a five (5) year period may levy an 18 additional five cents ($0.05) equivalent rate for debt service and new 19 facilities. The tax rate levied by the district under this provision shall not 20 be equalized by state funding, except as provided in paragraph (b) of 21 this subsection. Any levy imposed under this paragraph prior to April 22 24, 2008, by a local school district shall continue until removed by the 23 local school district. 24 2. A local school district shall meet the following criteria in order to levy 25 the tax provided in subparagraph 1. of this paragraph: 26 a. Growth of at least one hundred fifty (150) students in average 27 UNOFFICIAL COPY 24 RS BR 357 Page 22 of 34 XXXX 2/12/2024 12:55 PM Jacketed daily attendance and three percent (3%) overall growth for the five 1 (5) preceding years; 2 b. Bonded debt to the maximum capability of at least eighty percent 3 (80%) of capital outlay from the Support Education Excellence in 4 Kentucky funding program, all revenue from the local facility tax, 5 and all receipts from state equalization on the local facility tax; 6 c. Current student enrollment in excess of available classroom space; 7 and 8 d. The district facilities plan[A local school facility plan that] has 9 been approved by the Kentucky Board of Education and certified 10 to the School Facilities Construction Commission; 11 (b) 1. In addition to the levy authorized by paragraph (a) of this subsection, a 12 local school district may levy an additional five cents ($0.05) equivalent 13 rate under the same terms and conditions established by paragraph (a) of 14 this subsection beginning in fiscal year 2003-2004 if the levy was made 15 prior to April 24, 2008, and if the local school district: 16 a. Levied the five cents ($0.05) equivalent rate authorized by 17 paragraph (a) of this subsection; and 18 b. Still meets the requirements established by paragraph (a)2. of this 19 subsection. 20 2. Any school district that imposes both the levy authorized by paragraph 21 (a) of this subsection and the additional levy authorized by subparagraph 22 1. of this paragraph shall receive equalization funding from the state for 23 the levy imposed by paragraph (a) of this subsection beginning in fiscal 24 year 2003-2004. Equalization shall be provided at one hundred fifty 25 percent (150%) of the statewide average per pupil assessment, subject to 26 the provision of funding by the General Assembly. Equalization funds 27 UNOFFICIAL COPY 24 RS BR 357 Page 23 of 34 XXXX 2/12/2024 12:55 PM Jacketed shall be used as provided in KRS 157.440(1)(b). 1 3. Any levy imposed under this paragraph prior to April 24, 2008, by a 2 local school district shall continue until removed by the local school 3 district; and 4 (c) 1. A local school district that meets the following conditions may levy an 5 additional five cents ($0.05) equivalent rate on and after April 24, 2008: 6 a. The local school district is located in a county that will have more 7 students as a direct result of the new mission established for Fort 8 Knox by the Base Realignment and Closure (BRAC) 2005 issued 9 by the United States Department of Defense pursuant to the 10 Defense Base Closure and Realignment Act of 1990, Pub. L. No. 11 100-526, Part A of Title XXIX of 104 Stat. 1808, 10 U.S.C. sec. 12 2687 note; and 13 b. The commissioner of education has determined, based upon the 14 presentation of credible data, that the projected increased number 15 of students is sufficient to require new facilities or the major 16 renovation of existing facilities to accommodate the new students, 17 and has approved the imposition of the additional levy. 18 2. Any local school district that imposes both the levy authorized by 19 paragraph (a) of this subsection and the additional levy authorized by 20 subparagraph 1. of this paragraph, and that has not received equalization 21 funding under subsection (2) or (3) of this section, shall receive 22 equalization funding from the state for the levy imposed by paragraph 23 (a) of this subsection beginning in the fiscal year following the fiscal 24 year in which the levy authorized by subparagraph 1. of this paragraph 25 is imposed. Equalization shall be provided at one hundred fifty percent 26 (150%) of the statewide average per pupil assessment, subject to the 27 UNOFFICIAL COPY 24 RS BR 357 Page 24 of 34 XXXX 2/12/2024 12:55 PM Jacketed provision of funding by the General Assembly. Equalization funds shall 1 be used as provided in KRS 157.440(1)(b). 2 3. Any levy imposed under this paragraph by a local school district shall 3 continue until removed by the local school district. 4 (2) (a) Any local school district that, prior to April 27, 2016, levied an equivalent rate 5 that: 6 1. Was subject to recall at the time it was levied; and 7 2. Included a rate of at least five cents ($0.05) equivalent rate for the 8 purpose of debt service for school construction or major renovation of 9 existing school facilities; 10 shall be eligible for retroactive equalization from the state for that levy at one 11 hundred fifty percent (150%) of the statewide average per pupil assessment 12 beginning in fiscal year 2003-2004, subject to the fiscal condition of the 13 Commonwealth and the provision of funding by the General Assembly. 14 Equalization funds shall be used as provided in KRS 157.440(1)(b). 15 (b) It is the intent of the General Assembly that for levies described in this 16 subsection that are imposed on or after April 27, 2016, equalization funds, if 17 provided by the General Assembly, shall terminate upon the earlier of June 18 30, 2038, or the date the bonds for the local school district supported by this 19 equalization funding are retired. Equalization shall be subject to the fiscal 20 condition of the Commonwealth and the provision of funding by the General 21 Assembly. 22 (3) Any local school district that: 23 (a) Levied an equivalent tax rate as of April 24, 2008, that included at least ten 24 cents ($0.10) that was devoted to building purposes, or that had debt service 25 corresponding to a ten cents ($0.10) equivalent rate; 26 (b) Did not receive equalized growth funding pursuant to subsection (1)(b)2. of 27 UNOFFICIAL COPY 24 RS BR 357 Page 25 of 34 XXXX 2/12/2024 12:55 PM Jacketed this section; and 1 (c) Has been approved by the commissioner of education; 2 shall be eligible for equalization from the state for that levy at one hundred fifty 3 percent (150%) of the statewide average per pupil assessment beginning in fiscal 4 year 2005-2006, subject to the provision of funding by the General Assembly. 5 Equalization funds shall be used as provided in KRS 157.440(1)(b). Equalization 6 funds shall be available to a local school district pursuant to this subsection until the 7 earlier of June 30, 2038, or the date the bonds for the local school district supported 8 by this equalization funding are retired. 9 (4) (a) Notwithstanding any other provision of this section, any local school district 10 receiving equalization funding prior to April 27, 2016, related to an equivalent 11 rate levy described in subsection (1), (2), (3), or (5) of this section shall 12 continue to receive the equalization funding related to the applicable 13 equivalent rate levy, subject to the limitations established by subsections (1), 14 (2), (3), and (5) of this section, and subject to the fiscal condition of the 15 Commonwealth and the provision of funding by the General Assembly, until 16 amended by subsequent action of the General Assembly. A local school 17 district described in this paragraph shall not be eligible to receive equalization 18 for any additional equivalent rate levies made by it on or after April 27, 2016. 19 (b) Notwithstanding any other provision of this section, any local school district 20 that has imposed an equivalent rate levy described in subsection (1)(a) or (b) 21 or (2) of this section prior to April 27, 2016, that qualifies for equalization but 22 that has not yet received equalization funding shall be eligible for equalization 23 funding as provided in subsection (1)(a) or (b) or (2) of this section, subject to 24 the provision of funding by the General Assembly. 25 (c) On and after April 24, 2008, a local school district not included in paragraph 26 (a) or (b) of this subsection shall be prohibited from imposing an equivalent 27 UNOFFICIAL COPY 24 RS BR 357 Page 26 of 34 XXXX 2/12/2024 12:55 PM Jacketed rate levy under the provisions of subsection (1)(a) or (b) of this section, and 1 shall not be eligible for equalization funding under the provisions of this 2 section. 3 (d) On and after April 24, 2008, a local school district meeting the requirements 4 of subsection (1)(c) of this section may impose the levy authorized by 5 subsection (1)(c) of this section, and shall qualify for equalization as provided 6 in subsection (1)(c) of this section, subject to the provision of funding by the 7 General Assembly. 8 (5) (a) Any local school district that: 9 1. Had school facilities classified as Category 5 on May 18, 2010, by the 10 Kentucky Department of Education; and 11 2. Levied an additional five cents ($0.05) equivalent tax rate prior to April 12 27, 2016, for debt service, new construction, and major renovation 13 beyond the five cents ($0.05) equivalent tax rate required by KRS 14 157.440(1)(b), except as provided in paragraph (b) of this subsection; 15 shall be eligible for equalization from the state for that levy at one hundred 16 fifty percent (150%) of the statewide average per pupil assessment beginning 17 in the fiscal year following the fiscal year in which the levy was imposed. 18 This levy shall be subject to the recall provisions of KRS 132.017. 19 (b) School districts that levied a five cents ($0.05) equivalent tax rate for debt 20 service, new construction, and major renovation, beyond the rate required by 21 KRS 157.440(1)(b) prior to May 18, 2010, shall not be required to levy an 22 additional tax to receive the equalization funds provided in paragraph (a) of 23 this subsection. 24 (c) If the school district utilizes the equalization funds to support a bond issue for 25 construction purposes, equalization funds shall be provided until the earlier of 26 twenty (20) years or date the bonds are retired. 27 UNOFFICIAL COPY 24 RS BR 357 Page 27 of 34 XXXX 2/12/2024 12:55 PM Jacketed (d) In the event that a school district receives funding pursuant to this subsection 1 to support construction of a new school facility and subsequently, as a result 2 of litigation, receives funding for the same facility for which state funds were 3 provided, that school district shall reimburse the Commonwealth an amount 4 equal to the amount provided under paragraph (a) of this subsection. Any 5 funds received in this manner shall be deposited in the budget reserve trust 6 fund account established in KRS 48.705. 7 Section 8. KRS 157.622 is amended to read as follows: 8 The School Facilities Construction Commission shall be governed by the following 9 procedures in providing assistance to school districts for construction purposes: 10 (1) Upon receipt of the certified statements from the Kentucky Board of Education as 11 required by KRS 157.620, the commission shall compute the unmet needs of all 12 eligible districts as defined by KRS 157.615; 13 (2) Assistance to each eligible district shall be determined by computing the ratio of the 14 available state funding to total unmet need statewide. Based on the computed ratio, 15 an equivalent percentage of each eligible district's unmet need will be funded; 16 (3) Each eligible district which has otherwise complied with the provisions of KRS 17 157.615 and 157.620 shall be offered sufficient funding to finance construction of 18 the portion of its unmet need computed by applying the ratio determined in 19 subsection (2) of this section to the total unmet need of the district. The funds shall 20 be applied to the projects listed on the most current approved district 21 facilities[facility] plan[ approved by the Kentucky Board of Education], and the 22 funds shall be applied to projects in the priority order listed on the plan. Exceptions 23 to the priority order of projects may be approved by the School Facilities 24 Construction Commission when it is documented by the local board of education 25 and approved by the Kentucky Board of Education upon the recommendation of the 26 chief state school officer that the school district's priority order of needs has 27 UNOFFICIAL COPY 24 RS BR 357 Page 28 of 34 XXXX 2/12/2024 12:55 PM Jacketed changed. The exceptions shall not alter the amount of the offer of assistance; 1 (4) The commission shall promulgate administrative regulations whereby an eligible 2 district which fails in any budget period to receive an allocation of state funds that 3 is sufficient to fund the district's priority project or portions thereof may accumulate 4 credit, subject to the availability of funds, for its unused state allocation for a period 5 not to exceed eight (8) years. Accumulation and retention of credit is contingent 6 upon the transfer of available local revenue to the restricted construction account by 7 June 30 of each year; 8 (5) Except as provided in subsection (6) of this section, all unused state allocations 9 accumulated according to the provisions of subsection (3) of this section shall be 10 reallocated by the commission. The reallocation shall follow the process and intent 11 as set forth in this section with eligible districts being those districts which 12 contribute unused state allocations to the reallocation account. Any district which 13 has an unused state allocation after funding its first priority project in a biennium is 14 not eligible for consideration for additional funds from the reallocation account. 15 Any funding received and utilized from the reallocation account by a district shall 16 equally reduce the credit as set forth in this section; and 17 (6) Refinancing savings that have occurred since July 1, 1997, and subsequent savings 18 to the commission generated over the life of a bond by the local district's 19 refinancing of the bond shall be dedicated to the district's account by the 20 commission. Any funds accumulated in this account shall be used toward the 21 district's next priority, but shall not be deducted from the district's share of 22 commission funds under subsection (3) of this section. 23 Section 9. KRS 158.814 is amended to read as follows: 24 (1) In order to ensure that high-quality, relevant secondary career and technical 25 programs are available to students in all school districts that enable them to gain the 26 academic and technical skills to meet high school graduation requirements and for 27 UNOFFICIAL COPY 24 RS BR 357 Page 29 of 34 XXXX 2/12/2024 12:55 PM Jacketed successful transition to postsecondary education, work, or the military and to 1 support present-day and future needs of Kentucky employers, the Department of 2 Education shall: 3 (a) Review and revise as needed the equipment and facilities standards for each 4 career and technical education program identified and described in the career 5 and technical education supplement to the Kentucky program of studies and 6 published by the Department of Education; and 7 (b) Determine the statewide unmet needs for career and technical education 8 capital projects, including renovations and expansions of existing facilities 9 and the construction of new technology centers, through a needs assessment 10 process. This process shall be tied to specific criteria in determining if the 11 current programs or career pathways offered in locally and state-operated 12 facilities are appropriate for the students in the school districts served as well 13 as for determining if new programs are needed. The statewide assessment of 14 capital needs for career and technical education shall be incorporated into the 15 district facilities plan of each local school district[ facility plan] as required 16 by Section 3 of this Act[KRS 157.420]. The Kentucky Board of Education 17 shall incorporate criteria within the administrative regulations relating to 18 district facilities[school facility] plan requirements to prioritize need for 19 career and technical education programming, regardless of whether the 20 programs are locally or state-operated. 21 (2) The Career and Technical Education Advisory Committee established in KRS 22 156.806 shall be consulted in carrying out the requirements of this section. 23 Section 10. KRS 160.105 is amended to read as follows: 24 The Kentucky Board of Education shall by regulation require each school district to: 25 (1) Provide for fire and extended insurance coverage on each building owned by the 26 board which is not surplus to its needs as shown by the approved district facilities 27 UNOFFICIAL COPY 24 RS BR 357 Page 30 of 34 XXXX 2/12/2024 12:55 PM Jacketed plan. The requirement for such coverage shall not exceed replacement cost and 1 shall allow for the features of coinsurance and deductibles; and 2 (2) Provide each certified employee of the district with primary liability insurance 3 coverage for an amount of not less than one million dollars ($1,000,000) for the 4 protection of the employee from liability arising in the course and scope of pursuing 5 the duties of employment. 6 Section 11. KRS 160.160 is amended to read as follows: 7 (1) Each school district shall be under the management and control of a board of 8 education consisting of five (5) members, except in counties containing a city of the 9 first class wherein a merger pursuant to KRS 160.041 shall have been accomplished 10 which shall have seven (7) members elected from the divisions and in the manner 11 prescribed by KRS 160.210(5), to be known as the "Board of Education of ...., 12 Kentucky." Each board of education shall be a body politic and corporate with 13 perpetual succession. It may sue and be sued; make contracts; expend funds 14 necessary for liability insurance premiums and for the defense of any civil action 15 brought against an individual board member in his official or individual capacity, or 16 both, on account of an act made in the scope and course of his performance of legal 17 duties as a board member; purchase, receive, hold, and sell property; issue its bonds 18 to build and construct improvements; and do all things necessary to accomplish the 19 purposes for which it is created. Each board of education shall elect a chairman and 20 vice chairman from its membership in a manner and for a term prescribed by the 21 board not to exceed two (2) years. 22 (2) No board of education shall participate in any financing of school buildings, school 23 improvements, appurtenances thereto, or furnishing and equipment, including 24 education technology equipment without: 25 (a) First establishing the cost of the project in advance of financing, based on: 26 1. The receipt of advertised, public, and competitive bids for such project, 27 UNOFFICIAL COPY 24 RS BR 357 Page 31 of 34 XXXX 2/12/2024 12:55 PM Jacketed in accordance with KRS Chapter 424; or 1 2. Estimates of the cost of the project developed by licensed architects or 2 engineers who prepared the plans or specifications; and 3 (b) Establishing the cost of financing in advance of the sale of any bonds, 4 certificates of participation in any leases, or other evidences of financial 5 commitments issued by or on behalf of such board. Any bonds, leases, 6 participations, or other financial arrangements shall not involve a final 7 commitment of the board until the purchaser or lender involved shall have 8 been determined by public advertising in accordance with KRS Chapter 424. 9 (3) No board of education shall [make a mortgage, lien, or other encumbrance upon 10 any school building owned by the board, or ]transfer title to any [such ]school 11 building as part of any financing arrangement[,] without the specific approval of the 12 Department of Education, and without the transaction being entered into pursuant to 13 a detailed plan or procedure specifically authorized by Kentucky statute. 14 (4) [Without the approval of the Department of Education, ]No board may lease, as 15 lessee, a building or public facility that has been or is to be financed at the request 16 of the board or on its behalf through the issuance of bonds by another public body 17 or by a nonprofit corporation serving as an agency and instrumentality of the board, 18 or by a leasing corporation[. Any lease, participation, or other financial arrangement 19 shall not involve a final commitment of the board unless and until] unless the 20 purchaser or lender involved in same shall have been determined by public 21 advertising in accordance with KRS Chapter 424. No transaction shall be entered 22 into by the board except upon the basis of public advertising and competitive 23 bidding in accordance with KRS Chapter 424. 24 (5) Rental payments due by a board under a lease[ approved by the Department of 25 Education in accordance with] established under subsection (4) of this section shall 26 be due and payable not less than ten (10) days prior to the interest due date for the 27 UNOFFICIAL COPY 24 RS BR 357 Page 32 of 34 XXXX 2/12/2024 12:55 PM Jacketed bonds, notes, or other debt obligations issued to finance the building or public 1 facility. If a board fails to make a rental payment when due under a lease, upon 2 notification to the Department of Education by the paying agent, bond registrar, or 3 trustee for the bonds not less than three (3) days prior to the interest due date, the 4 Department of Education shall withhold or intercept any funds then due the board 5 to the extent of the amount of the required payment on the bonds and remit the 6 amount to the paying agent, bond registrar, or trustee as appropriate. Thereafter, the 7 Department of Education shall resolve the matter with the board and adjust 8 remittances to the board to the extent of the amount paid by the Department of 9 Education on the board's behalf. 10 (6) Bonds, notes or leases negotiated to provide education technology shall not be sold 11 for longer than seven (7) years or the useful life of the equipment as established by 12 the state technology master plan, whichever is less. 13 (7) Notwithstanding any requirements of public advertising, competitive bidding, or 14 approval by the Department of Education, or any administrative regulation 15 promulgated pursuant to KRS 156.160(1)(o), a local board may authorize the 16 transfer or sale of the district's real or personal property to another governmental or 17 quasi-governmental agency in exchange for money or a similar type of property that 18 equals or exceeds the fair market value of the district property as determined by an 19 independent appraisal conducted by: 20 (a) An individual or organization not affiliated with the district or its officers or 21 employees, using a generally accepted national or professional standard; or 22 (b) A district's officers or employees using a nationally published valuation of 23 property based on the most recent edition of the publication. 24 Section 12. KRS 158.102 is amended to read as follows: 25 [(1) ]The board of education for each local school district shall establish and maintain a 26 library media center in every elementary and secondary school to promote information 27 UNOFFICIAL COPY 24 RS BR 357 Page 33 of 34 XXXX 2/12/2024 12:55 PM Jacketed literacy and technology in the curriculum, and to facilitate teaching, student achievement, 1 and lifelong learning. 2 [(2) (a) Schools shall employ a school media librarian to organize, equip, and manage 3 the operations of the school media library. The school media librarian shall 4 hold the appropriate certificate of legal qualifications in accordance with KRS 5 161.020 and 161.030. A certified school media librarian may be employed to 6 serve two (2) or more schools in a school district with the consent of the 7 school councils. 8 (b) If a vacancy occurs, the school council may fill the vacancy on a temporary 9 basis by employing: 10 1. A person who is pursuing certification as a school media librarian in 11 accordance with administrative regulations promulgated by the 12 Education Professional Standards Board; or 13 2. A temporary employee for a period not to exceed sixty (60) days.] 14 Section 13. KRS 199.882 is amended to read as follows: 15 As used in KRS 199.881 to 199.888: 16 (1) "Cabinet" means the Cabinet for Health and Family Services; 17 (2) "Child-care provider" means a child-care provider that is rated pursuant to the 18 quality-based graduated early care and education program rating system set forth in 19 KRS 199.8943; 20 (3) "Contribution" means a direct payment to a child-care provider either directly by an 21 employer or through a third party vendor to subsidize an employee's eligible child-22 care costs, and shall include an employer directly paying for the child-care 23 facilities and facility maintenance on behalf of a child-care provider; 24 (4) "Eligible child-care costs" means costs to be incurred by an individual for services 25 rendered by an eligible child-care provider; 26 (5) "Employee" means an individual who works in Kentucky and is employed by an 27 UNOFFICIAL COPY 24 RS BR 357 Page 34 of 34 XXXX 2/12/2024 12:55 PM Jacketed employer; 1 (6) "Employer" means a nonprofit or for-profit entity with at least one (1) employee 2 who works in Kentucky in each of twenty (20) or more calendar weeks in the 3 current or preceding calendar year; 4 (7) "Fund" means the fund administered by the cabinet as described in KRS 199.885; 5 (8) "Program" means the Employee Child Care Assistance Partnership; 6 (9) "Small business" means a business with fewer than fifty (50) employees who are 7 individually contracted to work more than thirty-five (35) hours per week; 8 (10) "State match" means the money paid directly to the child-care provider by the 9 cabinet from the fund described in KRS 199.885; and 10 (11) "State median household income" means the most recent estimate available of real 11 median household income for the state, as determined by the United States Census 12 Bureau, and adjusted for family size. 13 Section 14. Any person granted an emergency teaching certificate pursuant to 14 KRS 161.100 by the Education Professional Standards Board during the 2023-2024 15 school year shall be eligible to renew that emergency certificate for the 2024-2025 school 16 year, notwithstanding any administrative regulation to the contrary. 17 Section 15. Due to the need to ensure continued financial savings for school 18 districts in relation to construction costs and approval delays, an emergency is declared to 19 exist, and this Act takes effect July 1, 2024. 20