2013 Kentucky Revised Statutes CHAPTER 45 - BUDGET AND FINANCIAL ADMINISTRATION 45.760 Limitations on project and equipment expenditures in State Capital Construction Program.
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45.760 Limitations on project and equipment expenditures in State Capital
Construction Program.
The provisions of any other law notwithstanding:
(1) During any biennium the amount allotted, from all sources, for expenditure on
any project in the state capital construction program for that biennium shall not
exceed the estimated cost of the project during that biennium, as shown in any
branch budget bill enacted by the General Assembly, except as provided in this
section and KRS 45.770 and 45.780.
(2) When the General Assembly disapproves a capital project or item of
equipment that was previously approved, it shall be eliminated as a capital
project or major item of equipment in the Capital Projects Program. General
fund moneys appropriated for that project or item of equipment but not allotted,
and general fund moneys allotted but not expended to the project or equipment
account, shall be transferred to the capital construction and equipment
purchase contingency account in the capital construction fund. Agency or
federal funds for a disapproved project or item, that have been appropriated
but unallotted or allotted but unexpended, shall be returned to the appropriate
agency fund. Road fund moneys for a disapproved project or item that have
been appropriated but unallotted or allotted but unexpended, shall be returned
to the Road Fund Surplus Account.
(3) Capital projects and major items of equipment disapproved under subsection
(2) of this section shall be terminated.
(4) During any biennium, the amount allotted from all sources for expenditure for
the purchase of any major item of equipment shall not exceed the estimated
cost of the item as shown in any branch budget bill enacted by the General
Assembly and authorizing the purchase, except as provided in subsections (5)
and (6) of this section and in KRS 45.770 and 45.780.
(5) A major item of equipment to be used for medical, scientific, or research
purposes, excluding computer equipment and aircraft, may be authorized even
though it is not specifically listed in any branch budget bill enacted for the
current biennium, subject to the following conditions and procedures:
(a) Moneys specifically budgeted and appropriated by the General Assembly
for another purpose shall not be reallotted for expenditure on the item;
moneys utilized shall not jeopardize any existing program and shall not
require the use of any current general funds specifically dedicated to
existing programs;
(b) Funds are available for the purchase and the method of financing the
purchase will not require an additional appropriation of state funds to
acquire the item; and
(c) The purchasing agency shall, within thirty (30) days after making the
purchase, report the purchase to the Capital Projects and Bond Oversight
Committee. The report shall include a description of the item, the purpose
for which it will be used, the necessity for the purchase, and the amount
expended for the purchase from each source of funds used.
(6) Moneys from any source may be transferred to the allotment account of any
capital project authorized by the General Assembly under this section, subject
(7)
to the following conditions and procedures:
(a) The total amount transferred shall not exceed fifteen percent (15%) of the
amount authorized by the General Assembly unless:
1.
The source of funds is private or federal; or
2.
An unforeseen decision by a federal or state court or regulatory
agency requires the transfer.
(b) Moneys specifically budgeted and appropriated by the General Assembly
for another purpose shall not be allotted or reallotted for expenditure on
the capital project.
(c) Moneys utilized shall not jeopardize any existing program and shall not
require the use of any current general funds specifically dedicated to
existing programs.
(d) The relevant entity head, or his designee, shall submit the capital project
to the Capital Projects and Bond Oversight Committee at least fourteen
(14) days prior to the committee meeting. The submission shall include a
written certification to the committee that the transfer, in excess of fifteen
percent (15%) of the amount authorized by the General Assembly, is:
1.
Paid for out of private or federal funds; or
2.
Required by an unforeseen decision by a federal or state court or
regulatory agency; and
3.
Not allotted or reallotted from moneys specifically budgeted and
appropriated by the General Assembly for another purpose; and
4.
Not jeopardizing any existing program and not requiring the use of
any current general funds specifically dedicated to existing
programs.
(e) If a capital project is financed with road funds, the cost overruns or scope
increases shall be paid out of the highway contingency account
established pursuant to KRS 45.247.
A capital construction project or a major item of equipment may be authorized
even though it is not specifically listed in any branch budget bill, subject to the
following conditions and procedures:
(a) Fifty percent (50%) or more of the actual cost shall be funded by federal
or private funds, and fifty percent (50%) or less of the actual cost shall be
funded by moneys appropriated to the capital construction and equipment
purchase contingency account or, if the purpose of the project or
equipment is to reduce energy costs, the relevant entity head certifies
projected energy cost savings associated with the project or equipment
are reasonable and sufficient to produce an aggregate simple payback
period, as defined by KRS 56.770, of five (5) years or less;
(b) Moneys specifically budgeted and appropriated by the General Assembly
for another purpose shall not be allotted or reallotted for expenditure on
the project or major item of equipment; moneys utilized shall not
jeopardize any existing program and shall not require the use of any
current general funds specifically dedicated to existing programs; and
(c) The relevant entity head, or his designee, shall submit the project or
major item of equipment to the committee for review as provided by KRS
45.800.
(8) The capital construction and equipment purchase contingency fund may be
used to advance funds to projects authorized to be financed by bonds, to
finance feasibility studies for projects which may be contemplated for future
funding, or to audit the capital projects program when authorized by the
General Assembly.
(9) On or before October 1, each branch of government shall submit to the
committee the following information:
(a) A complete list and summary description of every capital construction
project and major item of equipment not completed as of June 30 of the
prior fiscal year; and
(b) For each project and major item of equipment, as of July 1, of the current
fiscal year:
1.
The project phase;
2.
The project account number, project name, and any other term
employed to identify the project or major item of equipment;
3.
The available balance in the project or major item of equipment
account, and any sums considered available for that project or major
item of equipment;
4.
A statement of the transfers of funds to or from the project or major
item of equipment account; and, any account to which transfers from
each project or major item of equipment has been made;
5.
The year in which the project or major item of equipment was
approved, with specific reference to the legislation by which the
project or item was approved;
6.
Total expenditure on the project or major item of equipment;
7.
The current estimated completion cost, including the amount
required for annual inflation; and
8.
A statement that additional funds for the completion of the project or
major item of equipment are or are not required; and, if required,
why sufficient funds for completion are not available; and
(c) The balance in the appropriated, but unallotted account; and the balance
in any account, however designated, that contains appropriated, but
unallotted funds for capital construction.
(10) When the General Assembly authorizes a capital construction item in the
capital construction section of a branch budget bill, the entity head charged
with executing the branch budget shall construct the capital construction item
according to the requirements set forth in the branch budget bill, supporting
documentation considered by the General Assembly, and branch budget
records. The entity head shall not deviate from these requirements with regard
to:
(a) Purpose or location to the extent that the capital construction item no
longer meets the identified needs; or
(b) Configuration for reasons other than practical accommodation to the
construction site or specific program to be accommodated within that
capital construction item.
Effective:June 8, 2011
History: Amended 2011 Ky. Acts ch. 73, sec. 6, effective June 8, 2011. -Amended 2009 Ky. Acts ch. 78, sec. 31, effective June 25, 2009. -- Amended
2001 Ky. Acts ch. 58, sec. 23, effective June 21, 2001. -- Amended 1998 Ky.
Acts ch. 375, sec. 1, effective July 15, 1998; and ch. 423, sec. 2, effective July
15, 1998. -- Amended 1994 Ky. Acts ch. 387, sec. 19, effective July 15, 1994.
Amended 1992 Ky. Acts ch. 47, sec. 2, effective July 14, 1992. -- Amended
1990 Ky. Acts ch. 30, sec. 3, effective July 13, 1990; and ch. 507, sec. 4,
effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 46, sec. 1, effective July
15, 1986. -- Amended 1984 Ky. Acts ch. 410, sec. 2, effective July 13, 1984. -Amended 1982 Ky. Acts ch. 300, sec. 7, effective July 15, 1982; and ch. 450,
sec. 60, effective July 1, 1983. -- Created 1979 (1st Extra. Sess.) Ky. Acts ch. 4,
sec. 2, effective January 1, 1980.
2012-2014 Budget Reference. See State/Executive Branch Budget, 2012 Ky. Acts
ch. 144, Pt. I, K, 1, (4) at 1134.
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