2014 Kentucky Revised Statutes CHAPTER 56 - STATE LANDS AND BUILDINGS 56.870 Approval of General Assembly required for certain state fiscal obligations --Statement for inclusion on bonds and notes and related materials on Commonwealth's involvement.
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56.870 Approval of General Assembly required for certain state fiscal
obligations --Statement for inclusion on bonds and notes and related
materials on Commonwealth's involvement.
(1)
(2)
(3)
(4)
Notwithstanding any statutory provisions to the contrary, prior to the issuance
and sale of any definitive bonds or temporary bonds, or the securing of any
interim financing through bond anticipation notes, loan agreements, or by any
other means, each agency, authority, board, corporation, cabinet, commission,
or any other agency or instrumentality of the Commonwealth shall first obtain
approval of financing from the General Assembly, sitting in regular or special
session. This approval shall be evidenced by the adoption by the General
Assembly of a specific act or the adoption by the General Assembly of the
biennial branch budget bill which specifies the purposes for the financing.
The biennial branch budget bill shall also establish a ceiling for revenue bonds
which require a general fund or road fund appropriation to retire.
The provisions of subsection (1) of this section shall not be applicable to the
financing of any project in any case where the project for which financing is
proposed is certified by the secretary of the Finance and Administration
Cabinet to be of a type that will independently produce revenues sufficient to
fully meet debt service, issuance costs, reserve fund requirements, insurance
premiums, and any other expenditures necessary for financing so that no
appropriation of state funds will be required. Repayments of revolving funds
established with bond issues for which debt service, issuance costs, reserve
fund requirements, insurance premiums, or any other expenditures associated
with the issuance of the bonds are appropriated by the General Assembly shall
not be deemed independently produced revenue. This certification shall be
made in writing by the secretary of the Finance and Administration Cabinet to
the statutory head of the issuing agency or authority with a copy to the
Governor and the Legislative Research Commission.
The following statement shall appear on all bonds or notes and all
prospectuses offering statements or related materials used in conjunction with
the sale of bonds or notes for which financing is certified in accordance with the
provisions of subsection (3) of this section: "Kentucky's name is on these
bonds (or notes) for the benefit and convenience of other entities within the
state. However, the only security which is pledged for the bonds (or notes) is
the independent revenues and assets from the project. The General Assembly
does not intend to appropriate any state funds to fulfill the financial obligation
represented by the bonds (or notes)."
Effective:July 15, 1994
History: Amended 1994 Ky. Acts ch. 53, sec. 1, effective July 15, 1994.
Amended 1992 Ky. Acts ch. 105, sec. 53, effective July 14, 1992; and ch. 295,
sec. 2, effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 507, sec. 19,
effective July 13, 1990. -- Amended 1982 Ky. Acts ch. 450, sec. 62, effective
July 1, 1983. -- Created 1980 Ky. Acts ch. 96, sec. 1, effective July 15, 1980.
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