KRS 56.832: Lease by Commonwealth of real property in foreign jurisdiction.

(1) The term "foreign jurisdiction" for the purpose of this section means states other

than Kentucky, a territory of the United States, or a foreign country.

(2) The Finance and Administration Cabinet shall promulgate administrative

regulations relating to the lease of real property in a foreign jurisdiction.

(3) When an agency determines it has a need to lease office space in a foreign

jurisdiction, the agency shall submit a request in writing to the Department for

Facilities and Support Services within the Finance and Administration Cabinet.

(4) The Department for Facilities and Support Services shall review the space request

and draw up general requirement specifications. The general requirement

specifications shall be kept on file by the department.

(5) (a) If the Department for Facilities and Support Services determines that it is not

feasible to lease the space through competitive sealed bid, the Department for

Facilities and Support Services may, under Finance and Administration

Cabinet administrative regu lations, acquire leased space through

noncompetitive negotiation.

(b) If competitive sealed bid is determined to be unfeasible, the commissioner of

the Department for Facilities and Support Services shall put in writing the

justification for his determinat ion prior to award of the lease. This writing

shall be kept on file by the department.

(6) Any lease awarded under this section shall include a thirty (30) day cancellation

notice that will allow the Commonwealth the right to cancel the lease upon written

notice within thirty (30) days.

(7) Any lease proposed to be awarded under this section, including all lease renewals

for which the annual rental cost will exceed one hundred thousand dollars

($100,000), shall be reported to the Capital Projects and Bond Oversight Committee

after drafting of the lease is completed but before execution. The report shall

include:

(a) The name of the agency that will occupy the premises;

(b) The name of the lessor;

(c) The purpose and justification for the lease;

(d) The terms of the lease;

(e) An explanation of why the Finance and Administration Cabinet chose this

lessor; and

(f) A survey and cost comparison of similar rental properties within the area.

(8) Within thirty (30) days after the report required in subsection (7) of this section has

been submitted to the committee, the committee shall conduct its review and decide

whether to approve or disapprove the proposed lease authorization. If the committee

disapproves a proposed lease authorization, the secretary of the Finance and

Administration Cabinet shall:

(a) Revise the proposed lease authorization to comply with the objection of the

committee;

(b) Cancel the proposed lease authorization; or

(c) Determine to proceed with the proposed lease authorization disapproved by

the committee.

(9) The decision made by the secretary of the Finance and Administration Cabinet

under subsection (8) of this section shall be communicated to the committee in

writing within thirty (30) days of the committee's disapproval.

(10) Except when another lease term is approved by the secretary of the Finance and

Administration Cabinet, the terms of the lease entered into may provide for an

initial lease term beginning on a date stat ed and ending on June 30 in each year in

which the General Assembly has convened in an even -numbered-year regular

session and appropriated funds for the operation of the state government during the

next ensuing biennium. The lease may grant the state succe ssive options for the

automatic renewal of the lease upon the same terms and conditions for additional

renewal periods of twenty-four (24) months each, not to exceed three (3) automatic

renewal periods. Any lease containing a provision for the automatic re newal of the

lease after the expiration of the initial lease term shall also provide that the state

may, upon written notice given to the lessor on or before April 15 of the year in

which the initial or any automatic renewal term expires, elect not to exer cise its

option for the automatic renewal of the lease term. Subject to the agreement of the

lessor, a lease in which the final automatic renewal period has expired, or will

expire as of the end of the then current term, may be renewed upon the same terms

and conditions, provisions of KRS 56.803 to the contrary notwithstanding.