KRS 45A.877: Reimbursement of underwriters for counsel retained by them for bond

issuance -- Prohibition against state employee's recommending selection.

(1) The office shall establish and maintain a schedule of rates at which underwriters

will be reimbursed for fees and expenses of counsel they retain for a bond issuance.

(2) Employees of the Commonwealth shall be prohibited from directly or indirectly

recommending the selection of the underwriter's counsel. This section shall not be

deemed to prohibit the creatio n of a list of qualified firms to assist underwriters in

the selection of their counsel or from otherwise making general information

regarding law firms available to underwriters.

(3) For each bond issuance, the secretary of the Finance and Administration Cabinet

and the executive director shall certify to the Capital Projects and Bond Oversight

Committee that neither they, or, to the best of their knowledge, anyone involved in

the selection process, attempted to recommend the hiring of any law firm by an

underwriter.

(4) If the Capital Projects and Bond Oversight Committee determines that an employee

of the Commonwealth has, at the request of a law firm, recommended the selection

of an underwriter's counsel relating to a bond issuance in an attempt to exerc ise

influence on the selection process, the committee shall recommend to the secretary

of the Finance and Administration Cabinet that the firm be prohibited from serving

as bond counsel or underwriter's counsel for a bond issuance for a period of two (2)

years, commencing on the date of the determination. The secretary shall follow the

recommendation or submit the reasons for not following the recommendation in

writing to the committee.