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. - Kentucky Statutes

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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) 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). (2) 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. (3) 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. (4) 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. (5) 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 biennial
budget report and 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 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 biennial budget report and 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. (6) (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
section have been met. (c) 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. (d) 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. (e) 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. (f) 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. (g) 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 25, 2009
History: 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.