2014 Kentucky Revised Statutes CHAPTER 48 - BUDGET 48.111 Governor to include in executive budget recommendation a recommended program for rental of space costing more than $200,000 annually -- Restriction on certain leases -- Exception.
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48.111 Governor to include in executive budget recommendation a
recommended program for rental of space costing more than $200,000
annually -- Restriction on certain leases -- Exception.
(1)
(2)
(3)
(4)
(5)
The Governor shall include in the executive branch budget recommendation
and in the draft branch budget bill for the executive branch submitted to each
even-numbered-year regular session of the General Assembly pursuant to
KRS 48.110, for the biennium period beginning July 1, 1992, and for each
biennium thereafter, a recommended program for rental of any space for which
the annual rental cost will exceed two hundred thousand dollars ($200,000).
The recommended program for leased space shall include:
(a) A summary description of each specific two hundred thousand dollar
($200,000) lease project recommended for funding during the biennium;
and
(b) For each project:
1.
The name of the agency for which space will be leased;
2.
The purpose and justification for the lease;
3.
Whether the lease contains a purchase option which will be
exercised during the biennium pursuant to KRS 56.806(4) and the
estimated purchase price;
4. a.
Whether the lease contains a lease-purchase which will be
completed during the biennium pursuant to KRS 56.806(5)
prior to the total amortization, through lease payments, of the
fair market value of the leased property as of the time the
lessor and the Commonwealth entered into the lease; and
b.
The estimated sum of money that will have to be paid in
addition to rent paid to complete the purchase;
5.
The estimated cost of the lease; and
6.
The recommended sources of funds.
All information required by subsection (2) of this section shall be included in the
executive branch budget recommendation. The branch budget bill for the
executive branch shall contain only the information specified in subparagraphs
1. and 2. of subsection (2)(b) of this section.
Except as provided in subsection (5) of this section, no lease with an annual
rental cost which will exceed two hundred thousand dollars ($200,000) shall be
executed unless the lease has been identified and included in the branch
budget bill. The branch budget bill for the executive branch shall authorize the
expenditure by the budget unit that will occupy the premises.
A lease with an annual rental cost exceeding two hundred thousand dollars
($200,000) may be authorized even though it is not specifically listed in the
branch budget bill, subject to the following conditions and procedures:
(a) A lease is awarded as the result of the consolidation of leases in which
case, in addition to subsection (6) of this section, the provisions of KRS
56.803 and 56.823(2) or of KRS 56.805(2) and 56.823(3) shall apply, as
appropriate; or
(b) A lease is awarded as the result of an agency occupying substantially
(6)
less space than it should, under the standards for space set by the
Department for Facilities Management, in which case, in addition to
subsection (6) of this section, the provisions of KRS 56.803 and 56.823(2)
or of KRS 56.805(2) and 56.823(3) shall apply, as appropriate. The space
allocated under the new lease shall not exceed the space which should
be allocated pursuant to the standards for space; or
(c) A lease with an annual rental cost of less than two hundred thousand
dollars ($200,000) is renewed or replaced for an annual rental cost that
exceeds two hundred thousand dollars ($200,000), but only if that request
and subsequent renewal or replacement lease is:
1.
From the same state agency lessee whose initial lease was under
two hundred thousand dollars ($200,000);
2.
For the same or substantially the same square footage as the initial
lease that was under two hundred thousand dollars ($200,000);
3.
The result of the competitive leasing process authorized by KRS
56.803;
4.
For an annual lease payment of less than two hundred and fifty
thousand dollars ($250,000); and
5.
Effective only until June 30 of the next even-numbered year unless
authorized in the branch budget bill; or
(d) A lease is awarded as the result of an emergency in which case the
provisions of KRS 56.805(3) and (4) and KRS 56.823(5) shall apply; or
(e) 1.
Fifty percent (50%) or more of the actual cost shall be funded by
federal or private funds; and
2.
Money specifically budgeted and appropriated by the General
Assembly for another purpose shall not be allotted or reallotted for
expenditure on the lease. Money utilized shall not jeopardize any
existing program and shall not require the use of current general
funds specifically dedicated to existing programs; and
3.
The Finance and Administration Cabinet shall comply with the
requirements of subsection (6) of this section.
(a) No later than five (5) business days after an advertisement for lease
proposals pursuant to paragraph (a) or (b) of subsection (5) of this
section, the cabinet shall provide the Capital Projects and Bond Oversight
Committee with a copy of the advertisement and shall state in writing to
the committee that the copy is being provided in compliance with this
paragraph.
(b) Prior to final authorization of a lease pursuant to paragraph (e) of
subsection (5) of this section, the cabinet shall report to the Capital
Projects and Bond Oversight Committee:
1.
The name of the agency for which space will be leased;
2.
The purpose and justification for the lease;
3.
The estimated cost of the lease;
4.
The source of funds; and
5.
Whether the requirements of paragraph (e) of subsection (5) of this
(c)
(d)
(e)
(f)
(g)
section have been met.
Within thirty (30) days after the report required in paragraph (b) of this
subsection has been submitted to the committee, the committee shall
conduct its review and decide whether to approve or disapprove the
proposed lease authorization. The Legislative Research Commission
shall promptly transmit the committee's findings and determinations to the
Finance and Administration Cabinet.
If the committee disapproves a proposed lease authorization, the
secretary of the Finance and Administration Cabinet shall:
1.
Revise the proposed lease authorization to comply with the
objection of the committee; or
2.
Cancel the proposed lease authorization; or
3.
Determine to proceed with the proposed lease authorization
disapproved by the committee.
The decision made by the secretary of the Finance and Administration
Cabinet under paragraph (d) of this subsection shall be communicated to
the committee in writing within thirty (30) days of the committee's
disapproval.
The Legislative Research Commission shall maintain records of the
committee's disapproval of a proposed lease authorization and the
cabinet's report of its actions on a disapproved proposed lease
authorization. If the committee disapproves a proposed lease
authorization, the Legislative Research Commission shall transmit the
committee's disapproval and the cabinet's action on the disapproval to the
appropriate interim joint committee of the Legislative Research
Commission and to the General Assembly when next convened in an
even-numbered-year regular session.
If, after committee review, a lease is authorized, the lease shall be
awarded pursuant to this section and KRS 43.050 and 56.800 to 56.823
and shall be subsequently reviewed pursuant to the appropriate
subsection of KRS 56.823.
Effective:June 8, 2011
History: Amended 2011 Ky. Acts ch. 73, sec. 8, effective June 8, 2011. -Amended 2009 Ky. Acts ch. 78, sec. 43, effective June 25, 2009. -- Amended
2001 Ky. Acts ch. 58, sec. 2, effective June 21, 2001. -- Amended 2000 Ky. Acts
ch. 50, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 539,
sec. 1, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 44, sec. 1,
effective July 15, 1994; ch. 177, sec. 1, effective July 15, 1994; and ch. 387,
sec. 24, effective July 15, 1994. -- Created 1990 Ky. Acts ch. 512, sec. 1,
effective July 13, 1990.
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