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Kentucky · Snapshot 09/05/2026

KRS 45A.494: Reciprocal preference to be given by governmental bodies to resident

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Where this section sits in the code
  1. KRS Chapter 45A

bidders -- List of states -- Administrative regulations.

(1) Prior to a contract being awarded to the lowest responsible and responsive bidder

on a contract by a governmental body, a resident bidder of the Commonwealth shall

be given a preference against a nonresident bidder registered in any state that gives

or requires a preference to bidders from that state. The preference shall be equal to

the preference given or required by the state of the nonresident bidder.

(2) A resident bidder is an individual, partnership, association, corporation, or other

business entity that, on the date the contract is first advertised or announced as

available for bidding:

(a) Is authorized to transact business in the Commonwealth; and

(b) Has for one (1) year prior to and through the date of the advertisement, filed

Kentucky corporate income taxes, made payments to the Kentucky

unemployment insurance fund established in KRS 341.490, and maintai ned a

Kentucky workers' compensation policy in effect.

(3) A nonresident bidder is an individual, partnership, association, corporation, or other

business entity that does not meet the requirements of subsection (2) of this section.

(4) If a procurement de termination results in a tie between a resident bidder and a

nonresident bidder, preference shall be given to the resident bidder.

(5) This section shall apply to all contracts funded or controlled in whole or in part by a

governmental body.

(6) The Finance and Administration Cabinet shall maintain a list of states that give to

or require a preference for their own resident bidders, including details of the

preference given to such bidders, to be used by governmental bodies in determining

resident bidder pr eferences. The cabinet shall also promulgate administrative

regulations in accordance with KRS Chapter 13A establishing the procedure by

which the preferences required by this section shall be given.

(7) The preference for resident bidders shall not be giv en if the preference conflicts

with federal law.

(8) Any governmental body soliciting or advertising for bids for contracts shall make

KRS 45A.490 to 45A.494 part of the solicitation or advertisement for bids.

Collected 2026-09-05T20:49:07Z. Source file · JSON

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