KRS 45.800: Prerequisites to transfer of money from contingency account or other

sources.

(1) Except as otherwise provided in KRS 45.770(2)(b), prior to transferring funds from

any source to the allotment account of a capital construction project or major ite m

of equipment, the relevant entity head, or his designee, shall present to the Capital

Projects and Bond Oversight Committee, at least fourteen (14) days prior to the

committee meeting, for its review, specification of the amount of the proposed

transfer, documentation of the necessity for the transfer, and, with respect to capital

construction projects, documentation of:

(a) The amount already expended on the project prior to and during the current

biennium; and

(b) Any alterations made or planned in the project since its consideration by the

General Assembly during the most recent even -numbered-year regular

session.

(2) Within thirty (30) days after submission to the committee of a proposed capital

construction and equipment purchase contingency account t ransfer, the committee

shall determine whether the amount of the proposed transfer is reasonable and

consistent with KRS 45.770, whether the proposed transfer is necessary, and

whether any alterations made or planned in a project materially change the proj ect

as considered and authorized by the General Assembly. If the committee does not

approve a proposed transfer or other proposed action, the committee, unless the

Legislative Research Commission directs otherwise, shall promptly transmit its

findings and determination to the head of the entity that presented the proposal.

(3) If the committee does not approve a proposed transfer or other proposed action, the

transfer shall not be made nor the action taken unless the relevant entity head, or his

designee, shall:

(a) Revise the transfer or action to comply with the objections of the committee;

(b) Cancel the transfer or action; or

(c) Determine to make the transfer or take the action not approved by the

committee.

(4) The decision made by the relevant entity head, or his designee, under the preceding

subsection shall be communicated to the committee in writing within thirty (30)

days of the committee's not approving the proposed transfer or other proposed

action.

(5) The committee, unless the Legislative Resea rch Commission directs otherwise,

shall maintain records of its findings and determinations and the relevant entity

head's, or his designee's, report of his action on each proposed transfer from the

capital construction and equipment purchase contingency a ccount. If the committee

determines that the amount of a proposed transfer is not reasonable or is not

consistent with KRS 45.770, or that the transfer is not necessary, or if the

committee finds that any alteration in a project materially changes the proj ect as

considered and approved by the General Assembly, the committee's determination

and the action of the secretary of the Finance and Administration Cabinet, or other

appropriate entity head, on the transfer shall be transmitted to the appropriate

interim joint committees of the Legislative Research Commission and to the

General Assembly when next convened.

(6) The committee, unless the Legislative Research Commission directs otherwise,

shall maintain reports of purchases made under KRS 45.760(5), reports of transfers

made under KRS 45.760 to this section, reports of transfers made from the

emergency repair, main tenance, and replacement account, and a record of any

committee finding or recommendation relating to such purchases and transfers.

(7) The committee shall monitor the costs of state capital construction projects in

comparison with the costs of constructio n for the private sector to determine

whether the costs are comparable and, if not comparable, the reasons for any

difference. The committee shall consider contractors' charges to the state, land

acquisition costs, costs and availability of materials, cost and availability of labor,

and laws, regulations, and purchasing procedures pertaining to state capital

construction projects that are not applicable to construction for the private sector.

The committee's findings and recommendations shall be transmitted to the

appropriate interim joint committee of the Legislative Research Commission and to

the General Assembly when convened.