UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 1 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part AN ACT providing funding and establishing conditions for state government 1 agencies and institutions, making an appropriation therefor, and declaring an emergency. 2 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3 Section 1. 2024 Regular Session HB 1/VO, Section 1, subsection (14), at page 4 2, is amended to read as follows: 5 (14) $1,000,000 in fiscal year 2024-2025 to the Kentucky Infrastructure Authority 6 budget unit to be distributed to the City of Albany to support reduction of[and] water 7 loss; 8 Section 2. 2024 Regular Session HB 1/VO, Section 1, subsection (23), at page 9 3, is amended to read as follows: 10 (23) $1,000,000 in fiscal year 2024-2025 to the Kentucky Infrastructure Authority 11 budget unit to be distributed to the Powell Valley Water District[City of Powell Valley] 12 for water and sewer expansion near the Red River Gorge; 13 Section 3. 2024 Regular Session HB 1/VO, Section 1, subsection (24), at page 14 3, is amended to read as follows: 15 (24) $2,000,000 in fiscal year 2024-2025 to the Kentucky Infrastructure Authority 16 budget unit to be distributed to the Beech Fork Water Commission[City of Beach Fork] 17 for water and sewer expansion near the Red River Gorge; 18 Section 4. 2024 Regular Session HB 1/VO, Section 1, subsection (35), at page 19 5, is amended to read as follows: 20 (35) $8,500,000 in fiscal year 2024-2025 to the Kentucky Infrastructure Authority 21 budget unit to be distributed to the Woodford County Fiscal Court to support a 22 wastewater project in the community of Millville in conjunction with the City of 23 Frankfort[Frankfort Plant Board]; 24 Section 5. 2024 Regular Session HB 1/VO, Section 1, subsection (44), at page 25 6, is amended to read as follows: 26 (44) $7,000,000 in fiscal year 2024-2025 to the Kentucky Infrastructure Authority 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 2 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part budget unit to be distributed to the City of Georgetown for various water and wastewater 1 infrastructure projects for Georgetown Municipal Water and Sewer Service; 2 Section 6. 2024 Regular Session HB 1/VO, Section 1, subsection (45), at page 3 6, is amended to read as follows: 4 (45) $50,000,000 in each fiscal year to the Department for Local Government 5 budget unit to be distributed to Louisville Metro Government and allocated at the sole 6 discretion of its Economic Development Department for the revitalization of downtown 7 Louisville to include these projects: 8 (a) The Belvedere; 9 (b) Community Care Campus; 10 (c) LOUMED Campus; 11 (d) Louisville Gardens; 12 (e) Downtown Vacant Buildings[Lot] Revitalization; and 13 (f) Butchertown Sports District; 14 Section 7. 2024 Regular Session HB 1/VO, Section 1, subsection (52), at page 15 7, is amended to read as follows: 16 (52) $1,000,000[$2,000,000] in fiscal year 2024-2025 and $500,000 in fiscal year 17 2025-2026 to the Attorney General[Department for Local Government] budget unit to 18 [be distributed to the City of Paducah to ]create an electric reliability defense 19 program[support the Build Ready Grant for the City of Paducah Infrastructure project]; 20 Section 8. 2024 Regular Session HB 1/VO, Section 1, subsection (53), at page 21 7, is amended to read as follows: 22 (53) $500,000 in fiscal year 2024-2025 to the Department for Local Government 23 budget unit to be distributed to the City of Kevil[Kevil Rural Fire Department] to support 24 upgrades and enhancements for the Kevil Fire Station; 25 Section 9. 2024 Regular Session HB 1/VO, Section 1, subsection (95), at page 26 12, is amended to read as follows: 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 3 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part (95) $850,000 in fiscal year 2024-2025 to the Department of Parks[Department 1 for Local Government] budget unit [to be distributed to the City of Perryville ]for the 2 restoration of the Dye House on the grounds of the Perryville Battlefield State Historic 3 Site; 4 Section 10. 2024 Regular Session HB 1/VO, Section 1, subsection (100), at 5 page 12, is amended to read as follows: 6 (100) $1,000,000 in fiscal year 2024-2025 to the Department for Local Government 7 budget unit to be distributed to the Lincoln High School Historical Foundation in 8 Paducah[Lincoln County Fiscal Court] for a civic center[the Lincoln Civic Center] 9 project; 10 Section 11. 2024 Regular Session HB 1/VO, Section 1, subsection (101), at 11 page 12, is amended to read as follows: 12 (101) $1,000,000 in fiscal year 2024-2025 to the Department for Local Government 13 budget unit to be distributed to the City of Elizabethtown[Hardin County Fiscal Court] 14 for the Elizabethtown Parks and Trails Conservancy; 15 Section 12. 2024 Regular Session HB 1/VO, Section 1, subsection (106), at 16 page 13, is amended to read as follows: 17 (106) $8,000,000 in fiscal year 2024-2025 and $500,000 in fiscal year 2025-2026 to 18 the Department for Local Government budget unit to be distributed to the Center for 19 Rural Development[Lake Cumberland Area Development District] for a regional training 20 center in collaboration with the Lake Cumberland Area Development District; 21 Section 13. 2024 Regular Session HB 1/VO, Section 1, subsection (122), at 22 page 14, is amended to read as follows: 23 (122) $100,000 in each fiscal year to the Department for Local Government budget 24 unit to be distributed to The Nest in Lexington[the Fayette County Fiscal Court] to 25 support operations[The Nest in Lexington]; 26 Section 14. 2024 Regular Session HB 1/VO, Section 1, subsection (130), at 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 4 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part page 15, is amended to read as follows: 1 (130) $1,250,000 in fiscal year 2024-2025 to the Department for Local Government 2 budget unit to be distributed to the City of Booneville for land acquisition and 3 renovations[city renovations]; 4 Section 15. 2024 Regular Session HB 1/VO, Section 1, subsection (131), at 5 page 15, is amended to read as follows: 6 (131) $1,250,000 in fiscal year 2024-2025 to the Department for Local Government 7 budget unit to be distributed to the Owsley County Fiscal Court for land acquisition, 8 reclamation, and renovations; 9 Section 16. 2024 Regular Session HB 1/VO, Section 1, subsection (132), at 10 page 15, is amended to read as follows: 11 (132) $500,000 in fiscal year 2024-2025 to the Department for Local Government 12 budget unit to be distributed to the City of Booneville[Owsley County Fiscal Court] for a 13 home development[homeless] initiative; 14 Section 17. 2024 Regular Session HB 1/VO, Section 1, subsection (134), at 15 page 16, is amended to read as follows: 16 (134) $3,500,000 in fiscal year 2024-2025 to the Department for Local Government 17 budget unit to be distributed to the City of Corbin for land acquisition, construction, and 18 renovations for a tourism initiative; 19 Section 18. 2024 Regular Session HB 1/VO, Section 1, subsection (137), at 20 page 16, is amended to read as follows: 21 (137) $8,500,000 in fiscal year 2024-2025 to the Department for Local Government 22 budget unit to be distributed to the Knox County Fiscal Court for land acquisition and 23 renovations for a new county administrative office[a new County Administrative 24 Office]; 25 Section 19. 2024 Regular Session HB 1/VO, Section 1, subsection (139), at 26 page 16, is amended to read as follows: 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 5 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part (139) $4,000,000 in fiscal year 2024-2025 to the Department for Local Government 1 budget unit to be distributed to the Clay County Fiscal Court for construction of 2 multipurpose buildings and renovations[a Multi-Purpose Building]; 3 Section 20. 2024 Regular Session HB 1/VO, Section 1, subsection (140), at 4 page 16, is amended to read as follows: 5 (140) $10,000,000 in fiscal year 2024-2025 to the Department for Local 6 Government budget unit to be distributed to 1CC for land acquisition, construction, and 7 joint projects for various economic development projects; 8 Section 21. 2024 Regular Session HB 1/VO, Section 1, subsection (146), at 9 page 17, is amended to read as follows: 10 (146) $1,500,000 in fiscal year 2024-2025 to the Department for Local Government 11 budget unit to be distributed to Shaping[Save] Our Appalachian Region for remote talent 12 attraction; 13 Section 22. 2024 Regular Session HB 1/VO, Section 1, subsection (152), at 14 page 17, is amended to read as follows: 15 (152) $11,250,000 in fiscal year 2024-2025 to the Department for Local 16 Government budget unit to be distributed to the City of Frankfort to support construction 17 of the Frankfort Convention Center subject to a dollar-for-dollar match[funding the 18 project balance of $22,500,000]; 19 Section 23. 2024 Regular Session HB 1/VO, Section 1, subsection (160), at 20 page 18, is amended to read as follows: 21 (160) $200,000,000 in fiscal year 2023-2024 to the Cabinet for Economic 22 Development[Department of Agriculture] budget unit to support matching funds under 23 the Government Resources Accelerating Needed Transformation Program of 2024. Of 24 this amount, $4,000,000 shall be distributed to Grant Ready Kentucky. Notwithstanding 25 KRS 147A.158(3)(b), no more than $2,000,000 in fiscal year 2023-2024 shall be used for 26 administrative expenses. Notwithstanding KRS 45.229, these funds shall not lapse and 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 6 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part shall carry forward; 1 Section 24. 2024 Regular Session HB 1/VO, Section 1, subsection (172), at 2 page 20, is amended to read as follows: 3 (172) $50,000,000 in each fiscal year to the Economic Development budget unit to 4 support approved mega-development projects of at least $10,000,000, with an exception 5 for certain economic development projects as recommended by the Cabinet based on 6 unique conditions of the county where the project may occur, including but not limited to 7 the population, per capita income, or county wages that are lower than the median for the 8 state. These funds may be used to provide loans with the ability for forgiveness upon 9 approval by the Secretary to support infrastructure and access to power. The Cabinet 10 shall develop the terms and conditions of the loans and shall include requirements 11 related to increased economic development; 12 Section 25. 2024 Regular Session HB 1/VO, Section 1, subsection (173), at 13 page 20, is amended to read as follows: 14 (173) $50,000,000 in fiscal year 2024-2025 to the Economic Development budget 15 unit to support the Kentucky Economic Development Finance Authority Loan Pool. The 16 appropriation contained in this subsection shall be used to provide funding to Hardin and 17 Warren Counties, communities experiencing significant economic development growth 18 due to announced projects with investments exceeding $2,000,000,000 for supporting 19 critical infrastructure improvements, such as water and sewer requirements, for continued 20 economic development. Assistance may be in the form of a loan with the ability for 21 forgiveness due to meeting negotiated requirements related to increased economic 22 development for the community. Of this amount, $20,000,000 shall be allocated to the 23 Intermodal Transportation Authority project at the Kentucky Transpark; 24 Section 26. 2024 Regular Session HB 1/VO, Section 1, subsection (190), at 25 page 23, is amended to read as follows: 26 (190) $1,500,000 in [each ]fiscal year 2024-2025 and $1,000,000 in fiscal year 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 7 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part 2025-2026 to the Department for Behavioral Health, Developmental, and Intellectual 1 Disabilities budget unit to be distributed to Mountain Comprehensive Health 2 Corporation[Letcher County Fiscal Court] for the Transitioning from Recovery to 3 Society program; 4 Section 27. 2024 Regular Session HB 1/VO, Section 1, subsection (198), at 5 page 24, is amended to read as follows: 6 (198) $4,000,000[$5,000,000] in fiscal year 2024-2025 to the Department for 7 Community Based Services budget unit to support campus completion for the Harbor 8 House of Louisville; 9 Section 28. 2024 Regular Session HB 1/VO, Section 1, subsection (215), at 10 page 26, is amended to read as follows: 11 (215) $18,000,000 in each fiscal year to the Kentucky Horse Park Commission 12 budget unit for facility upgrades to be allocated as follows: 13 (a) $2,500,000 for the renovation of the restaurant; 14 (b) $15,000,000 for the replacement of competition barns and stalls; 15 (c) $7,000,000 for the renovation of entertainment pavilions; 16 (d) $5,000,000 for the replacement of campground sites and bathhouse; 17 (e) $1,500,000 for a maintenance pool; and 18 (f) $5,000,000[$5,000,00] for the renovation of the International Museum of the 19 Horse; 20 Section 29. 2024 Regular Session HB 1/VO, Section 1, subsection (218), at 21 page 26, is amended to read as follows: 22 (218) $200,000 in fiscal year 2024-2025 to the Secretary budget unit in the Tourism, 23 Arts and Heritage Cabinet to be distributed to the Muhlenberg County Tourism 24 Commission to support tourism[provide matching funds to purchase playground 25 equipment at Lake Malone State Park]; 26 Section 30. 2024 Regular Session HB 1/VO, Section 1, subsection (224), at 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 8 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part page 27, is amended to read as follows: 1 (224) $3,500,000 in fiscal year 2023-2024 to the General Administration and 2 Support budget unit in the Kentucky Transportation Cabinet to be distributed to the 3 Paducah-McCracken Riverport Authority to support the Riverport West project. 4 Notwithstanding KRS 45.229, these funds shall not lapse and shall carry forward to 5 fiscal year 2024-2025; 6 Section 31. 2024 Regular Session HB 1/VO, Section 1, subsection (225), at 7 page 27, is amended to read as follows: 8 (225) $7,500,000 in each fiscal year to the General Administration and Support 9 budget unit in the Kentucky Transportation Cabinet to improve public riverports within 10 Kentucky. Of this amount, $250,000 in each fiscal year shall be distributed to the West 11 Kentucky Regional Riverport Authority to support predevelopment archaeological 12 activities. In addition, each[Each] existing public riverport shall receive $750,000 in 13 each fiscal year for construction and maintenance as authorized by KRS 65.520 and for 14 eligible use as described in KRS 174.210(3), and no local match shall be required. Any 15 remaining balance shall be distributed at the Transportation Cabinet Secretary's discretion 16 and may be disbursed to riverport authorities for existing and developing riverports. 17 Notwithstanding KRS 45.229, any portion of these funds that have not been expended by 18 the end of fiscal year 2024-2025 shall not lapse and shall carry forward into fiscal year 19 2025-2026; 20 Section 32. 2024 Regular Session HB 1/VO, Section 1, subsection (233), at 21 page 30, is amended to read as follows: 22 (233) $5,000,000 in fiscal year 2024-2025 to the Emergency and Targeted 23 Investment Fund established by KRS 157.618. The School Facilities Construction 24 Commission shall grant priority to schools with structural failures and no bonding 25 capacity;[ and] 26 Section 33. 2024 Regular Session HB 1/VO, Section 1, subsection (234), at 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 9 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part page 30, is amended to read as follows: 1 (234) $2,000,000 in fiscal year 2024-2025 to the Department for Local Government 2 budget unit to be distributed to the Edmonson County Fiscal Court to provide an 3 emergency infrastructure grant. This grant will require a local match of at least 4 $1,000,000;[.] 5 (235) $1,000,000 in fiscal year 2024-2025 to the Department for Local 6 Government budget unit to be distributed to the City of London to support construction 7 of the London City Plaza project; and 8 (236) $1,000,000 in fiscal year 2024-2025 to the University of Kentucky budget 9 unit to support immune dysregulation research. 10 Section 34. 2024 Regular Session HB 6/VO in Part, Part I, A., 4., (2) 11 Congressional Medal of Honor Recipients - Travel and Per Diem, at page 4, is amended 12 to read as follows: 13 (2) [Congressional ]Medal of Honor Recipients - Travel and Per Diem: The 14 Commissioner of the Department of Veterans' Affairs may approve travel and per diem 15 expenses incurred when Kentucky residents who have been awarded the [Congressional 16 ]Medal of Honor attend veterans, military, or memorial events in the Commonwealth of 17 Kentucky. 18 Section 35. 2024 Regular Session HB 6/VO in Part, Part I, A., 6., (1) Kentucky 19 National Guard, at page 8, is amended to read as follows: 20 (1) Kentucky National Guard: Included in the above General Fund 21 appropriation is $4,500,000 in each fiscal year to be expended, subject to the conditions 22 and procedures provided in this Act, which are required as a result of the Governor's 23 declaration of emergency pursuant to KRS Chapter 39A, and the Governor's call of the 24 Kentucky National Guard to active duty when an emergency or exigent situation has been 25 declared to exist by the Governor. Notwithstanding KRS 45.229, any portion of the 26 $4,500,000 not expended shall lapse to the Budget Reserve Trust Fund Account (KRS 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 10 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part 48.705) at the end of each fiscal year. In the event that costs for Governor-declared 1 emergencies or the Governor’s call of the Kentucky National Guard for emergencies or 2 exigent situations exceed $4,500,000 annually, up to $50,000,000[$25,000,000] shall be 3 deemed necessary government expenses and shall be paid from the General Fund Surplus 4 Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705). 5 Section 36. 2024 Regular Session HB 6/VO in Part, Part I, A., 6., (2) Disaster 6 or Emergency Aid Funds, at pages 8 to 9, is amended to read as follows: 7 (2) Disaster or Emergency Aid Funds: Subject to the conditions and procedures 8 in this Act, in the event of a presidentially declared disaster or emergency, the 9 Department of Military Affairs may request from the Finance and Administration 10 Cabinet, as a necessary government expense, up to $75,000,000 in fiscal year 2023-2024, 11 $25,000,000[$50,000,000] in fiscal year 2024-2025, and $25,000,000[$50,000,000] in 12 fiscal year 2025-2026 from the General Fund to be used as required to match federal aid 13 for which the state would be eligible. These necessary funds shall be made available from 14 the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund 15 Account (KRS 48.705). 16 Section 37. 2024 Regular Session HB 6/VO in Part, Part I, A., 19., a., (7) 17 Employment of Family Members, at page 24, is amended to read as follows: 18 [(7) Employment of Family Members: Notwithstanding 65.003(3)(c), no 19 Commonwealth’s Attorney shall hire a family member, as defined as a spouse, parent, 20 sibling, child, mother-in-law, father-in-law, son-in-law, daughter-in-law, grandparent, or 21 grandchild on or after the effective date of this Act.] 22 Section 38. 2024 Regular Session HB 6/VO in Part, Part I, A., 19., b., (8) 23 Employment of Family Members, at page 26, is amended to read as follows: 24 [(8) Employment of Family Members: Notwithstanding 65.003(3)(c), no County 25 Attorney shall hire a family member, as defined as a spouse, parent, sibling, child, 26 mother-in-law, father-in-law, son-in-law, daughter-in-law, grandparent, or grandchild on 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 11 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part or after the effective date of this Act.] 1 Section 39. 2024 Regular Session HB 6/VO in Part, Part I, A., 27., (4) 2 Secondary Area Technology Center Renovation Pool - 2025-2026, at page 41, is 3 amended to read as follows: 4 (4) Secondary Area Technology Center Renovation Pool - 2025-2026: A local 5 school district that owns a secondary area technology center shall be eligible to receive a 6 grant of up to $10,000,000[$7,500,000] to support renovation costs in fiscal year 2025-7 2026. The School Facilities Construction Commission shall develop criteria for the 8 districts to receive funding, which shall include enrollment in job creation training 9 programs, bonding capacity, and a needs-based local match. The Commission shall show 10 preference to applications from regions projected to experience rapid growth due to 11 economic development. No award shall be made to any local school district which has 12 received an award from the Local Area Vocational Education Center Pool since fiscal 13 year 2020-2021. 14 Included in the Secondary Area Technology Center Renovation Pool is an 15 allocation of $600,000 to the Floyd County Area Technology Center to support 16 engineering, design, and rehabilitation costs. Of this amount, $100,000 shall be used 17 for the design, and $500,000 shall be used for sewer, water, and electric. 18 Section 40. 2024 Regular Session HB 6/VO in Part, Part I, C., 1., (22) Property 19 Assessment Growth Relief, at page 60, is amended to read as follows: 20 (22) Property Assessment Growth Relief: (a) In addition to the support 21 provided by KRS 157.360(17), a district shall qualify for supplemental property 22 assessment growth relief in fiscal year 2024-2025 if sufficient funds exist within the 23 SEEK budget unit and all of the following conditions are met: 24 1. The district qualifies for an assessment adjustment in accordance with KRS 25 157.360(17) in fiscal year 2023-2024 and fiscal year 2024-2025; 26 2. The district levied a tax rate of four percent or greater in fiscal year 2024-27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 12 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part 2025; and 1 3. The district experienced a cumulative rate of growth in real estate values 2 from fiscal year 2022-2023 to fiscal year 2024-2025 in excess of 14.4 percent. 3 (b) A district shall qualify for supplemental relief in fiscal year 2025-2026 if 4 sufficient funds exist within the SEEK budget unit and all of the following conditions 5 are met: 6 1. The district qualifies for an assessment adjustment in accordance with KRS 7 157.360(17) in fiscal year 2024-2025 and fiscal year 2025-2026; 8 2. The district levied a tax rate of four percent or greater in fiscal year 2025-9 2026; and 10 3. The district experienced a cumulative rate of growth in real estate values 11 from fiscal year 2022-2023 to fiscal year 2025-2026 in excess of 25.8 percent. 12 (c) The Kentucky Department of Education shall use the available funds to 13 adjust the assessment for qualifying districts in each fiscal year to provide real estate 14 growth relief.[Notwithstanding KRS 157.360(17), the Department of Education shall 15 value real estate for the purposes of calculating the state portion of local effort required to 16 participate in the SEEK Program as the lesser of the current year assessment or the prior 17 year assessment increased by four percent, plus the value of current year new property. 18 For purposes of calculating the adjusted prior year assessment, the value of current new 19 year property may not exceed 110 percent of the value of the prior year’s valuation of 20 existing property. Authorization to use the prior year assessment, as adjusted, shall be 21 subject to available funds.] 22 Section 41. 2024 Regular Session HB 6/VO in Part, Part I, C., 3., (5) Center for 23 School Safety, at pages 66 to 67, is amended to read as follows: 24 (5) Center for School Safety: Included in the above General Fund appropriation 25 is $15,000,000 in each fiscal year for the Center for School Safety. Notwithstanding KRS 26 158.446, the Center for School Safety shall allot these moneys for the purposes described 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 13 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part in KRS 158.440, 158.441, 158.4415, 158.4416, 158.442, 158.445, and 158.446 at both 1 public and private school buildings, campuses, grounds, recreational areas, or athletic 2 fields, except that no more than $2,000,000[$1,500,000] in each fiscal year may be 3 retained for operating and administrative purposes. The Center for School Safety shall 4 research and evaluate commercial software solutions available to improve school safety. 5 Notwithstanding KRS 45.229, any portion of General Fund not expended for this purpose 6 shall lapse to the Budget Reserve Trust Fund Account (KRS 48.705). Mandated reports 7 shall be submitted pursuant to Part III, 24. of this Act. 8 Section 42. 2024 Regular Session HB 6/VO in Part, Part I, G., 8., (16) Foster 9 Home Rate Equity, at page 116, is amended to read as follows: 10 (16) Foster Home Rate Equity: Included in the above appropriations is 11 $10,600,000 in Restricted Funds and $2,400,000 in Federal Funds in each fiscal year to 12 support an increase in the [DCBS ]foster care rate per diems[diem and to align the rates 13 to be more equitable with the Private Child Caring and Private Child Placing agency rate 14 per diems]. Mandated reports shall be submitted pursuant to Part III, 24. of this Act. 15 Section 43. 2024 Regular Session HB 6/VO in Part, Part I, J., 1., (12) 16 Postbaccalaureate Initiatives, at page 150, is amended to read as follows: 17 (12) Postbaccalaureate Initiatives: Included in the above General Fund 18 appropriation is $2,000,000 in fiscal year 2023-2024 to contract with an outside entity to 19 conduct a study on the postbaccalaureate initiatives of each of the comprehensive 20 universities. The study shall be prioritized according to 2024 Regular Session SJR 170. 21 Notwithstanding KRS 45.229, these funds shall not lapse and shall carry forward to fiscal 22 year 2024-2025. Any unexpended funds at the conclusion of the study may be used for 23 administrative expenses. Mandated reports shall be submitted pursuant to Part III, 24. of 24 this Act. 25 Section 44. 2024 Regular Session HB 6/VO in Part, Part I, J., 1., (13) Immunity 26 for Postsecondary Institutions, at pages 150 to 151, is amended to read as follows: 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 14 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part (13) Immunity for Postsecondary Institutions: Notwithstanding any statute to 1 the contrary, a public postsecondary institution, including any affiliated corporation, its 2 officers, employees, and agents, shall be immune from all claims, including class action 3 claims for damages, a declaratory judgment, and equitable relief based on an act or 4 omission if: 5 (a) The claim arises out of or in connection with tuition paid to the public 6 postsecondary institution for an academic term that included the months of March, April, 7 and May 2020; 8 (b) The claim alleges losses or damages arising from an act or omission by the 9 public postsecondary institution during or in response to the COVID-19 emergency; and 10 (c) The alleged act or omission of the public postsecondary institution was related 11 to protecting public health and safety interests in response to the COVID-19 emergency 12 in compliance with federal, state, or local guidance, including but not limited to: 13 1. Transition to online or otherwise remote instruction; 14 2. Pause or modification to instruction available through the institution of higher 15 education; 16 3. Closure of, or modification to, operation of on-campus facilities of the public 17 postsecondary institution; or 18 4. The public postsecondary institution offered online and otherwise remote 19 learning options that allowed students to complete the coursework in the academic term 20 that included the months of March, April, and May 2020 and receive academic credit. 21 Section 45. 2024 Regular Session HB 6/VO in Part, Part I, J., 1., (14) Simmons 22 College, at page 151, is amended to read as follows: 23 (14) Simmons College: Included in the above Federal Funds appropriation is 24 $1,280,200 in fiscal year 2023-2024 from the State Fiscal Recovery Fund of the 25 American Rescue Plan Act of 2021 to support infrastructure planning and facility 26 acquisition for student residential housing, an onsite tutoring/study facility, and 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 15 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part development and designs for capital improvements to support academic program 1 expansion[the Teacher Education Initiative and public health initiatives]. 2 Section 46. 2024 Regular Session HB 6/VO in Part, Part I, K., 10. Claims and 3 Appeals, at pages 173 to 174, is amended to read as follows: 4 10. CLAIMS AND APPEALS 5 2023-24 2024-25 2025-26 6 General Fund 1,000,000 2,215,700 2,246,800 7 Restricted Funds -0- 1,317,200 1,317,300 8 Federal Funds -0- 768,100 769,100 9 TOTAL 1,000,000 4,301,000 4,333,200 10 (1) Crime Victims' Compensation Fund: Included in the above General Fund 11 appropriation is $1,000,000 in fiscal years 2023-2024, 2024-2025, and 2025-2026 to 12 support the Crime Victims' Compensation Fund. Notwithstanding KRS 45.229, any 13 portion of General Fund not expended for this purpose shall lapse to the Budget Reserve 14 Trust Fund Account (KRS 48.705). Mandated reports shall be submitted pursuant to Part 15 III, 24. of this Act. 16 (2) Additional Personnel: Included in the above Federal Funds appropriation is 17 $104,100 in fiscal year 2024-2025 and $105,100 in fiscal year 2025-2026 to support 18 additional personnel. Mandated reports shall be submitted pursuant to Part III, 24. of this 19 Act. 20 (3) Administrative Expenses and Claims: Notwithstanding KRS 304.2-400(2), 21 excess Restricted Funds from the Department of Insurance shall be transferred to the 22 Crime Victims' Compensation Fund and made available to support administrative 23 expenses and claims. 24 Section 47. 2024 Regular Session HB 6/VO in Part, Part I, L., 1., (5) Southern 25 Kentucky Tourism Initiative, at page 175, is amended to read as follows: 26 (5) Southern Kentucky Tourism Initiative: Included in the above Restricted 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 16 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part Funds appropriation is $500,000 in fiscal year 2024-2025 to support the 1 Southern[Southeast] Kentucky Chamber of Commerce for the Southern Kentucky 2 Tourism Initiative. Mandated reports shall be submitted pursuant to Part III, 24. of this 3 Act. 4 Section 48. 2024 Regular Session HB 6/VO in Part, Part I, L., 6., (5) State Fair 5 Board Property Improvements, at pages 178 to 179, is amended to read as follows: 6 (5) State Fair Board Property Improvements: Notwithstanding any statute to 7 the contrary, the State Fair Board shall give preference[offer a right of first refusal] to 8 Kentucky businesses **[with which the Board has existing relationships]** [before 9 offering partnership opportunities to other businesses ]to make improvements to State 10 Fair Board properties for hotel development[redevelopment]. The Board shall 11 recommend the participation of Kentucky-based businesses **[with which it has existing 12 relationships]** and shall also recommend the participation of other Kentucky-based 13 businesses offering solutions to accomplish the goal of improving hotel 14 development[redevelopment]. For the purposes of this subsection, "Kentucky-based 15 business" means a business that has employees working in Kentucky and that operates a 16 principle executive office in Kentucky from which those employees, other offices, and 17 affiliated entities are directed and controlled. 18 Section 49. 2024 Regular Session HB 6/VO in Part, Part I, L., 6., (6) Kentucky 19 Exposition Center Redevelopment Plan - Phase II, at page 179, is amended to read as 20 follows: 21 (6) Kentucky Exposition Center Redevelopment Plan - Phase II: The General 22 Assembly recognizes the need to secure the future of Kentucky State Fair Board 23 properties. To address this need, the project authorization set out in Part II, Capital 24 Projects Budget, of this Act is contingent on the State Fair Board’s submission and 25 approval by the General Assembly via joint resolution of a comprehensive statewide 26 proposal regarding improvements to the properties. The proposal shall include the 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 17 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part following: 1 (a) Recommendations for private and/or local government partnerships. In 2 developing its proposal regarding private partnerships, the Board shall give 3 preference[offer a right of first refusal] to Kentucky-based businesses with which it has 4 existing relationships and shall also recommend the participation of other Kentucky-5 based businesses offering solutions to accomplish the goal of improving Board 6 properties. For the purposes of this paragraph, "Kentucky-based business" means a 7 business that has employees working in Kentucky and that operates a principle executive 8 office in Kentucky from which those employees, other offices, and affiliated entities are 9 directed and controlled; 10 (b) Detailed financial information regarding return on investment resulting from 11 partnerships; and 12 (c) A 50 percent match of the state contribution from private and/or local 13 government partners. 14 The proposal may also include a plan of action regarding disposal of property to 15 local governments. The State Fair Board shall develop the proposal and present it to the 16 Interim Joint Committee on Appropriations and Revenue by December 1, 2024. 17 Section 50. 2024 Regular Session HB 6/VO in Part, Part II, I., (1) 18 Postsecondary Education Asset Preservation Pool, at page 199, is amended to read as 19 follows: 20 (1) Postsecondary Education Asset Preservation Pool: The Postsecondary 21 Education Asset Preservation Pool provides funding for individual asset preservation, 22 renovation, and maintenance projects at Kentucky’s public postsecondary institutions in 23 Education, General, and state-owned and operated residential housing facilities, for fixed 24 asset pedestrian and student parking areas, and for the razing of university-owned 25 buildings. For fiscal years 2024-2025 and 2025-2026, each project for research 26 institutions shall be matched at 25 percent from funds provided by each research 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 18 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part institution. Capital projects as defined in KRS 45.750(1)(f) are hereby authorized from 1 these funds or combination of funds thereof and shall be reported to the Capital Projects 2 and Bond Oversight Committee. 3 Section 51. 2024 Regular Session HB 6/VO in Part, Part II, I., 7., 002. 4 Renew/Renovate Steely Library, at page 205, is amended to read as follows: 5 002. Renew/Renovate Landrum Academic Center[Steely Library] 6 Bond Funds 49,000,000 -0- 7 Other Funds 3,000,000 -0- 8 TOTAL 52,000,000 -0- 9 Section 52. 2024 Regular Session HB 265/VO, Part I, A., 1., (5) Riverport 10 Improvements, at page 3, is amended to read as follows: 11 (5) Riverport Improvements: Included in the above General Fund appropriation 12 is $500,000 in each fiscal year to the Riverport Financial Assistance Trust Fund (KRS 13 174.210)[improve public riverports within Kentucky. The Secretary of the Transportation 14 Cabinet, in conjunction with the Kentucky Water Transportation Advisory Board, shall 15 determine how the funds are distributed]. Notwithstanding KRS 45.229, any portion of 16 General Fund not expended for this purpose shall lapse to the Budget Reserve Trust Fund 17 Account (KRS 48.705). Mandated reports shall be submitted pursuant to Part I, A., 1., (4) 18 of this Act. 19 Section 53. 2024 Regular Session HB 265/VO, Part I, A., 8., (6) Vision Testing, 20 at page 14, is amended to read as follows: 21 (6) Vision Testing: Notwithstanding KRS 186.577, prior to January 1, 2025, an 22 individual applying for [renewal of ]an operator's license renewal or instruction permit 23 renewal shall not be required to submit to a test of visual acuity and visual field. The 24 Transportation Cabinet may establish a pilot project to allow for the voluntary vision 25 testing upon renewal at regional driver licensing offices. 26 Section 54. There is hereby appropriated additional Other Funds in the amount 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 19 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part of $16,000,000 in fiscal year 2024-2025 to the Northern Kentucky University budget unit 1 for the Expand/Renovate Soccer Complex capital project. 2 Section 55. Pursuant to KRS 141.020(2)(a)2.d., the appropriation in this section 3 is supported solely by funds from the Budget Reserve Trust Fund Account (KRS 48.705) 4 and shall not be identified as GF appropriations when certifying the reduction conditions 5 pursuant to KRS 141.020(2)(a)5. and (d)2. to 5. 6 There is hereby appropriated General Fund moneys from the Budget Reserve Trust 7 Fund Account (KRS 48.705) in the amount of $150,000,000 in fiscal year 2023-2024 to 8 the Department of Highways budget unit to be allocated to the 2024-2026 Biennial 9 Highway Construction Plan project number 2-1088.52, contingent upon award of a 10 federal Multimodal Project Discretionary Grant for this project. 11 Section 56. Pursuant to KRS 141.020(2)(a)2.d., the appropriation in this section 12 is supported solely by funds from the Budget Reserve Trust Fund Account (KRS 48.705) 13 and shall not be identified as GF appropriations when certifying the reduction conditions 14 pursuant to KRS 141.020(2)(a)5. and (d)2. to 5. 15 There is hereby appropriated General Fund moneys from the Budget Reserve Trust 16 Fund Account (KRS 48.705) in the amount of $150,000,000 in fiscal year 2023-2024 to 17 the Department of Highways budget unit to be allocated to the 2024-2026 Biennial 18 Highway Construction Plan project number 10-169.10, contingent upon award of a 19 federal Multimodal Project Discretionary Grant for this project. 20 Section 57. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 21 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 22 amount of $2,969,200 in fiscal year 2024-2025 and $3,956,800 in fiscal year 2025-2026 23 to the Public Health budget unit to support the costs of workforce and operations for the 24 local health departments. 25 Section 58. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 26 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 20 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part amount of $500,000 in fiscal year 2024-2025 to the Department for Local Government 1 budget unit to be distributed to the Lee County Fiscal Court to support a public safety 2 initiative. 3 Section 59. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 4 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 5 amount of $1,500,000 in fiscal year 2024-2025 to the Attorney General budget unit to 6 create an electric reliability defense program. 7 Section 60. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 8 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 9 amount of $300,000 in fiscal year 2024-2025 to the Council on Postsecondary Education 10 budget unit to support a grant match for the National Stem Cell Foundation. 11 Section 61. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 12 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) as a 13 one-time allocation in the amount of $5,000,000 in each fiscal year to the University of 14 Kentucky budget unit to support cancer research at the Markey Cancer Center, including 15 but not limited to ovarian cancer research. 16 Section 62. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 17 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 18 amount of $5,000,000 in fiscal year 2024-2025 to the Department for Local Government 19 budget unit to be distributed to the Carlisle County Fiscal Court to support the Carlisle 20 County Water District in providing water treatment and water lines to schools in the 21 county. 22 Section 63. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 23 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 24 amount of $5,000,000 in fiscal year 2024-2025 to the Department for Local Government 25 budget unit to be distributed to the Pleasure Ridge Park Fire District to support a capital 26 construction project. 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 21 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part Section 64. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 1 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 2 amount of $5,000,000 in fiscal year 2025-2026 to the Department of Agriculture budget 3 unit to support economic development initiatives within the agriculture industry. The 4 funding is contingent on the Commissioner of Agriculture’s submission and approval by 5 the General Assembly via joint resolution of a comprehensive proposal regarding 6 agriculture economic development initiatives. The proposal shall be submitted to the 7 Interim Joint Committee on Appropriations and Revenue by December 1, 2024. 8 Section 65. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 9 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) as a 10 one-time allocation in the amount of $905,800 in fiscal year 2024-2025 and $1,596,800 11 in fiscal year 2025-2026 to the Justice Administration budget unit to support the loss of 12 federal funds for the Court-Appointed Special Advocate (CASA) funding programs. 13 Section 66. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 14 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 15 amount of $250,000 in fiscal year 2024-2025 to the Department for Local Government 16 budget unit to be distributed to the Daviess County Fiscal Court to support sewer 17 compliance for the City of Whitesville. 18 Section 67. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 19 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 20 amount of $1,200,000 in fiscal year 2023-2024 to the Department for Local Government 21 budget unit to be distributed to the Daviess County Fiscal Court to support water project 22 cost overruns. Notwithstanding KRS 45.229, these funds shall not lapse and shall carry 23 forward. 24 Section 68. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 25 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 26 amount of $250,000 in fiscal year 2025-2026 to the Department for Local Government 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 22 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part budget unit to be distributed to the Union County Fiscal Court to support water line 1 installation and repairs for the City of Sturgis. 2 Section 69. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 3 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 4 amount of $800,000 in fiscal year 2024-2025 to the Kentucky Infrastructure Authority 5 budget unit to support a statewide comprehensive plan for water management services 6 provided by the Area Development Districts and maintenance of the Water Resource 7 Information System. 8 Section 70. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 9 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) as a 10 one-time allocation in the amount of $600,000 in each fiscal year to the Behavioral 11 Health, Developmental, and Intellectual Disabilities budget unit to support direct services 12 provided to clients by The Healing Place. 13 Section 71. Pursuant to KRS 141.020(2)(a)2.d., there is hereby appropriated 14 General Fund moneys from the Budget Reserve Trust Fund Account (KRS 48.705) in the 15 amount of $15,000,000 in each fiscal year to the Economic Development budget unit to 16 support approved mega-development projects of at least $10,000,000, with an exception 17 for certain economic development projects as recommended by the Cabinet based on 18 unique conditions of the county where the project may occur, including but not limited to 19 the population, per capita income, or county wages that are lower than the median for the 20 state. The funds may be used to provide loans with the ability for forgiveness upon 21 approval by the Secretary to support infrastructure and access to power. The Cabinet shall 22 develop the terms and conditions of the loans and shall include requirements related to 23 increased economic development. 24 Section 72. Notwithstanding KRS 39A.303(6), from the appropriation set out in 25 2022 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 6, there is hereby appropriated Restricted 26 Funds from the East Kentucky State Aid Funding for Emergencies (EKSAFE) Fund 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 23 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part established in KRS 39A.303 in the amount of $28,725,000 in fiscal year 2024-2025 to the 1 Military Affairs budget unit to be used for the advancement of moneys to city and county 2 governments experiencing strained fiscal liquidity while awaiting reimbursement from 3 federal emergency management assistance or insurance claims related to the impact of 4 the Presidential Declaration of a Major Disaster, designated FEMA-4663-DR. 5 Section 73. If a recipient of moneys from the East Kentucky State Aid Funding 6 for Emergencies (EKSAFE) Fund under Section 72 of this Act subsequently receives 7 moneys from any other source, the recipient shall reimburse the Commonwealth for the 8 amount of moneys received from the EKSAFE Fund. All moneys reimbursed to the 9 Commonwealth shall be deposited into the Budget Reserve Trust Fund account 10 established in KRS 48.705 within 30 days. The moneys appropriated in Section 72 of this 11 Act shall not lapse and shall carry forward until June 30, 2026. If the moneys are not 12 encumbered by June 30, 2026, the moneys shall be returned to the Commonwealth and 13 shall be deposited into the Budget Reserve Trust Fund account established in KRS 48.705 14 within 30 days. 15 **[Section 74. Notwithstanding KRS 45.255(8), there is hereby appropriated 16 Restricted Funds from the Kentucky Contribution Trust Fund established in KRS 45.255 17 in the amount of $7,227,500 in fiscal year 2024-2025 to the Military Affairs budget unit 18 to be used for the advancement of moneys to city and county governments experiencing 19 strained fiscal liquidity while awaiting reimbursement from federal emergency 20 management assistance or insurance claims related to the impact of the Presidential 21 Declaration of a Major Disaster, designated FEMA-4663-DR.]** 22 Section 75. If a recipient of moneys from the Kentucky Contribution Trust 23 Fund under Section 74 of this Act subsequently receives moneys from any other source, 24 the recipient shall reimburse the Commonwealth for the amount of the moneys received 25 from the Kentucky Contribution Trust Fund. All moneys reimbursed to the 26 Commonwealth shall be deposited into the Budget Reserve Trust Fund account 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 24 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part established in KRS 48.705 within 30 days. The moneys appropriated in Section 74 of this 1 Act shall not lapse and shall carry forward until June 30, 2026. If the moneys are not 2 encumbered by June 30, 2026, the moneys shall be returned to the Commonwealth and 3 shall be deposited into the Budget Reserve Trust Fund account established in KRS 48.705 4 within 30 days. 5 Section 76. The Council on Postsecondary Education shall submit a report to 6 the Interim Joint Committee on Appropriations and Revenue by December 1, 2024, 7 detailing all programs administered by the Council. The report shall include a description 8 of each program, program expenditures, and statutory references if applicable. 9 Section 77. A local governmental agency may request participation in a 10 governmental services program through the Department of Corrections to provide 11 inmates the opportunity to learn job skills. At the discretion of the warden of the facility, 12 the local government shall be responsible for all costs, including but not limited to 13 supervision, transportation, training, and meals but shall not be required to pay labor 14 costs. 15 Section 78. KRS 45A.100 is amended to read as follows: 16 (1) Procurements may be made in accordance with small purchase administrative 17 regulations promulgated by the secretary of the Finance and Administration 18 Cabinet, pursuant to KRS Chapter 13A, as follows: 19 (a) Up to ten thousand dollars ($10,000) per project for construction and one 20 thousand dollars ($1,000) for purchases by any state governmental body, 21 except for those state administrative bodies specified in paragraph (b) of this 22 subsection; and 23 (b) Up to one hundred[forty] thousand dollars ($100,000)[($40,000)] per project 24 for construction or purchases by the Finance and Administration Cabinet, 25 state institutions of higher education, and the legislative branch of 26 government. 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 25 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part (2) Procurement requirements shall not be artificially divided so as to constitute a small 1 purchase under this section. Reverse auctions may be used for small purchase 2 procurements. At least every two (2) years, the secretary shall review the prevailing 3 costs of labor and materials and may make recommendations to the next regular 4 session of the General Assembly for the revision of the then current maximum 5 small purchase amount as justified by intervening changes in the cost of labor and 6 materials. 7 (3) The secretary of the Finance and Administration Cabinet may grant to any state 8 agency with a justifiable need a delegation of small purchasing authority which 9 exceeds the agency's small purchase limit provided in subsection (1) of this section. 10 Delegations of small purchasing authority shall be granted or revoked by the 11 secretary of the Finance and Administration Cabinet, in accordance with 12 administrative regulations promulgated by the cabinet pursuant to KRS Chapter 13 13A. These administrative regulations shall establish, at a minimum, the criteria for 14 granting and revoking delegations of small purchasing authority, including the 15 requesting agency's past compliance with purchasing regulations, the level of 16 training of the agency's purchasing staff, and the extent to which the agency utilizes 17 the Kentucky Automated Purchasing System. The administrative regulations may 18 permit the secretary of the Finance and Administration Cabinet to delegate small 19 purchase procurements up to the maximum amount specified in subsection (1)(b) of 20 this section. 21 Section 79. KRS 45A.190 is amended to read as follows: 22 (1) As used in this section, "agency contract administrator" means the state agency 23 employee responsible for the administration of a contract. 24 (2) When a construction contract is awarded in an amount in excess of one 25 hundred[forty] thousand dollars ($100,000)[($40,000)], the following bonds shall 26 be furnished to the Commonwealth, and shall be binding on the parties upon the 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 26 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part award of the contract: 1 (a) A performance bond satisfactory to the Commonwealth executed by a surety 2 company authorized to do business in this Commonwealth, or otherwise 3 supplied, satisfactory to the Commonwealth, in an amount equal to one 4 hundred percent (100%) of the contract price as it may be increased; and 5 (b) A payment bond satisfactory to the Commonwealth executed by a surety 6 company authorized to do business in the Commonwealth, or otherwise 7 supplied, satisfactory to the Commonwealth, for the protection of all persons 8 supplying labor and material to the contractor or his subcontractors, for the 9 performance of the work provided for in the contract. The bond shall be in an 10 amount equal to one hundred percent (100%) of the original contract price. 11 (3) When any contract in an amount in excess of one hundred[forty] thousand dollars 12 ($100,000)[($40,000)] for commodities, supplies, equipment, or services of any 13 kind, or when a contract for construction services costing one hundred[forty] 14 thousand dollars ($100,000)[($40,000)] or less is proposed for presentation to 15 vendors or contractors, the agency contract administrator shall evaluate whether a 16 performance bond should be required in the procurement document, and make his 17 recommendation to the purchasing agency. The agency contract administrator shall 18 note the reason that a performance bond is or is not recommended and his notation 19 shall be a part of the permanent record relating to the contract. If a performance 20 bond is required, the requirement shall be included in the invitation to bid, request 21 for proposal, or other procurement document. The agency contract administrator 22 shall make audits of the performance of contracts upon completion of one-third 23 (1/3) of the contract and upon completion of two-thirds (2/3) of the contract. For 24 contracts taking longer than one (1) year to complete, audits of performance shall 25 be conducted at least annually. Before a vendor is released from a performance 26 bond, the agency contract administrator shall review the audits of performance, 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 27 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part make a final performance review, and promptly determine whether, in his or her 1 opinion, the vendor has fully complied with the terms of the contract. The opinion 2 of the agency contract administrator shall be made in writing or electronically, set 3 forth the reasons for his or her opinion regarding compliance or noncompliance, 4 and be signed by the agency contract administrator. This opinion may have an 5 electronic signature. The using agency head shall, after consideration of the 6 performance audits, the final performance review, and the opinion of the agency 7 contract administrator regarding compliance or noncompliance, determine whether 8 to recommend to the purchasing agency that the performance bond be released or 9 whether a claim should be made against the performance bond. This determination 10 of the using agency head shall be in writing, signed by the using agency head, and 11 forwarded to the purchasing agency. This determination may have an electronic 12 signature and be transmitted electronically. If the recommendation of the using 13 agency is not followed by the purchasing agency, the purchasing agency shall place 14 a statement in the file explaining why it is not followed. 15 (4) Nothing in this section shall be construed to limit the authority of the 16 Commonwealth to require a performance bond or other security in addition to those 17 bonds, or in circumstances other than specified in subsection (2) or (3) of this 18 section. 19 Section 80. KRS 56.491 is amended to read as follows: 20 (1) No state agency shall have power or authority to make plans and specifications, 21 provide public notice of invitations for bids, let contracts, or incur any financing 22 commitments, either in the way of a charge against public funds or in the way of 23 negotiations for issuance of revenue bonds, for any capital construction projects 24 involving the improvement of lands or the construction, alteration, reconstruction, 25 or major repair of any building or other structure, or sewage disposal or water 26 supply system, requiring the expenditure of more than five[two] hundred[ fifty] 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 28 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part thousand dollars ($500,000)[($250,000)] without first securing the approval of the 1 Finance and Administration Cabinet. 2 (2) The state agency seeking the approval shall submit to the Finance and 3 Administration Cabinet a general description of the proposed project, with the 4 detailed information the cabinet may require. Review of construction plans for 5 conformance with the Uniform State Building Code shall be conducted by the 6 Department of Housing, Buildings and Construction. The Finance and 7 Administration Cabinet shall not approve any project requiring its approval in any 8 instance if it finds that: the project is not needed; the proposed method of financing 9 is not sound; the project will exceed the amount of the funds available therefor; the 10 work contemplated will be insufficient to accomplish the purpose of the project; or 11 after providing for the ordinary recurring expenses of government and debt service 12 and for payments under existing allotments for extraordinary expenses and capital 13 outlay, cash will not be available in the State Treasury to promptly pay for the work 14 during the biennium, or except as provided in subsection (5) of this section, that the 15 work is to be done by employees of the agency. 16 (3) The finding of the Finance and Administration Cabinet shall be final, except in 17 cases where the issuance and sale of bonds is proposed, in which cases the cabinet 18 shall submit its findings to the commission for final approval, modification, or 19 disapproval. 20 (4) Any capital construction project, the total cost of completion of which the Finance 21 and Administration Cabinet determines will exceed five[two] hundred[ fifty] 22 thousand dollars ($500,000)[($250,000)], shall be contracted for on a competitive 23 bid basis, and the execution of the contracts shall be approved and authorized by the 24 cabinet. When a capital construction project has been approved as provided in this 25 section, in whole or in part, the cabinet shall prepare the plans and specifications, 26 provide public notice of invitations for bids, award the contracts, supervise the 27 UNOFFICIAL COPY 24 RS SB 91/EN/VETO IN PART Page 29 of 29 XXXX 4/22/2024 2:43 PM Enacted & Vetoed in Part construction, and handle the financial negotiations on behalf of the requesting state 1 agency; or with prior written approval, the cabinet may authorize a state agency to 2 do so with delegated authority of the cabinet. 3 (5) A capital construction project, the total cost of completion of which the Finance and 4 Administration Cabinet determines will not exceed five[two] hundred[ fifty] 5 thousand dollars ($500,000)[($250,000)], may be performed by the employees of 6 the requesting agency or by individuals hired specifically for the project who shall 7 be exempt from the requirements of KRS Chapter 18A, if the project is approved 8 and authorized by the cabinet. Necessary materials and supplies shall be procured in 9 accordance with the standard purchasing procedures and policies of the cabinet as 10 defined in KRS Chapter 45A. 11 (6) This section shall not apply to capital outlays to the Department of Highways for 12 roads and bridges. 13 (7) This section shall not apply to capital outlays by the Justice and Public Safety 14 Cabinet for repair, maintenance, improvement, or expansion of present correctional 15 facilities on which projects inmates are used. Any capital construction project to be 16 performed by the Justice and Public Safety Cabinet shall be approved and 17 authorized by the Finance and Administration Cabinet. 18 (8) This section shall not apply to surveys capable of being performed by employees of 19 the Department of Fish and Wildlife Resources. Boundary surveys or surveys 20 involving property lines shall be performed by or under the supervision of an 21 employee possessing a professional land surveyor license. 22 Section 81. Whereas the provisions of this Act provide ongoing support for 23 state government agencies and their functions, an emergency is declared to exist, and this 24 Act takes effect upon its passage and approval by the Governor or upon its otherwise 25 becoming a law. 26