{"data":{"id":"us-ky/krs-45a.045","jurisdiction":"us-ky","citation":"KRS 45A.045","heading":"Authority of cabinet -- Authority to promulgate administrative","body":"regulations -- Disposal of state-owned real and personal property.\n(1) The Finance and Administration Cabinet shall serve as the central procurement and\ncontracting agency of the Commonwealth. The cabinet shall:\n(a) Require all agencies to furnish an estimate of specific needs for supplies,\nmaterials, and equipment to be purchased by competitive bidding for the\npurpose of permitting scheduling of purchasing in large volume. The cab inet\nshall establish and enforce schedules for purchasing supplies, materials, and\nequipment. In addition, prior to the beginning of each fiscal year all agencies\nshall submit to the Finance and Administration Cabinet an estimate of all\nneeds for supplies, materials, and equipment during that year which will have\nto be required through competitive bidding;\n(b) Have the authority, with the approval of the secretary of the Finance and\nAdministration Cabinet, to transfer between departments, to salvage, to\nexchange, and to condemn supplies, equipment, and real property; and\n(c) Attempt in every practicable way to ensure that state agencies are fulfilling\ntheir business needs through the application of the best value criteria.\n(2) The Finance and Administration Cabinet shall recommend regulations, rules, and\nprocedures and shall have supervision over all purchases by the various spending\nagencies, except as otherwise provided by law, and, subject to the approval of the\nsecretary of the Finance and Administration Cabinet, shall promulgate\nadministrative regulations to govern purchasing by or for all these agencies. The\ncabinet shall publish a manual of procedures which shall be incorporated by\nreference as an administrative regulation in accordance with KRS Chapter  13A.\nThis manual shall be distributed to agencies and shall be revised upon issuance of\namendments to these procedures. No purchase or contract shall be binding on the\nstate or any agency thereof unless approved by the Finance and Administration\nCabinet o r made under general administrative regulations promulgated by the\ncabinet.\n(3) The Finance and Administration Cabinet shall purchase or otherwise acquire, or,\nwith the approval of the secretary, may delegate and control the purchase and\nacquisition of the  combined requirements of all spending agencies of the state,\nincluding, but not limited to, interests in real property, contractual services, rentals\nof all types, supplies, materials, equipment, and services.\n(4) (a) The Finance and Administration Cabinet shall sell, trade, or otherwise dispose\nof any interest in real property of the state which is not needed, or has become\nunsuitable for public use, or would be more suitable to the public's interest if\nused in another manner, as determined by the secreta ry of the Finance and\nAdministration Cabinet.\n(b) The determination of the secretary of the Finance and Administration Cabinet\nshall be set forth in an order and shall be reached only after review of a\nwritten request by the agency desiring to dispose of t he real property. This\nrequest shall describe the real property and state the reasons why the agency\nbelieves the real property should be disposed.\n(c) Before the disposal of real property, the secretary of the Finance and\nAdministration Cabinet shall determine that:\n1. No other state agency has a purpose for the real property; and\n2. The city, county, urban -county government, or consolidated local\ngovernment where the real property is located does not have an\nownership interest in the real property.\n(d) All instruments required by law to be recorded which convey any interest in\nany real property so disposed of shall be executed and signed by the secretary\nof the Finance and Administration Cabinet and approved by the Governor.\n(e) Unless the secretary of the Finance and Administration Cabinet deems it in\nthe best interest of the state to proceed otherwise, all interests in real property\nshall be sold either  by invitation of sealed bids or by public auction. The\nselling price of any interest in real property shall not be less than the appraised\nvalue thereof as determined by the cabinet, or the Transportation Cabinet for\nthe requirements of that cabinet.\n(f) A state agency notifying the Finance and Administration Cabinet of its intent\nto dispose of any interest in real property assigned to the state agency shall\ncontinue to provide maintenance and security of the existing structures,\nbuildings, and land includ ed in the real property until the sale or other\ndisposition is complete.\n(g) In the event the Finance and Administration Cabinet receives no responsive\nbids for real property being disposed of, either by sealed bid or by public\nauction, the real property m ay be disposed of, consistent with the public\ninterest, in any manner deemed appropriate by the secretary of the Finance\nand Administration Cabinet. A written description of the real property, the\nmethod of disposal, and the amount of compensation, if any,  shall be made by\nthe secretary of the Finance and Administration Cabinet.\n(5) (a) If state-owned real property is observed to be abandoned, or it has not been\nsubstantially utilized for a public use, the chief executive officer of the city,\ncounty, urban -county government, or consolidated local government where\nthe real property is located may:\n1. Receive notice inquiring about the real property from a citizen,\ndeveloper, or consultant as described in paragraph (d) of this subsection;\n2. Develop a plan for public use of the real property; and\n3. Submit a written notice to the secretary of the Finance and\nAdministration Cabinet and the Capital Planning Advisory Board:\na. Expressing interest in the use of the real property;\nb. Requesting state utilization inf ormation from the Finance and\nAdministration Cabinet on the availability of the real property for\ndisposal; and\nc. Requesting the real property to be considered for sale, trade, or\ndisposal.\n(b) Within sixty (60) calendar days of receiving written notice u nder paragraph\n(a)3. of this subsection, the secretary of the Finance and Administration\nCabinet shall send a written response to the chief executive officer of the city,\ncounty, urban-county government, or consolidated local government and the\nCapital Planning Advisory Board that includes but is not limited to:\n1. The current occupancy and use of the real property;\n2. If the Finance and Administration Cabinet or other applicable state\nagency intends to evaluate real property for disposal under subsection\n(4) of this section or to maintain its ownership interest in the real\nproperty for public use; and\n3. Provide a description of the real property, current status, available and\nplanned occupancy, utilization, restrictions of use, and a timeline for full\nutilization of the property.\n(c) If the applicable state agency determines to request disposal of the real\nproperty, the state agency and Finance and Administration Cabinet shall\nproceed in accordance with subsection (4) of this section.\n(d) A citizen, develop er, or consultant may notify the chief executive officer of\nthe city, county, urban -county government, or consolidated local government\nwhere state-owned real property is located if he or she observes that the state -\nowned real property is abandoned or not substantially utilized for public use.\n(6) The Finance and Administration Cabinet shall sell, trade, or otherwise dispose of all\npersonal property of the state that is not needed, or has become unsuitable for\npublic use, or would be more suitable to the pu blic's interest if used in another\nmanner, or, with the approval of the secretary, may delegate the sale, trade, or other\ndisposal of the personal property. In the event the authority is delegated, the method\nfor disposal shall be determined by the agency head, in accordance with\nadministrative regulations promulgated by the Finance and Administration Cabinet,\nand shall be set forth in a document describing the property and stating the method\nof disposal and the reasons why the agency believes the property should be\ndisposed of. In the event the authority is not delegated, requests to the Finance and\nAdministration Cabinet to sell, trade, or otherwise dispose of the property shall\ndescribe the property and state the reasons why the agency believes the proper ty\nshould be disposed of. The method for disposal shall be determined by the Division\nof Surplus Properties, and approved by the secretary of the Finance and\nAdministration Cabinet or his or her designee.\n(7) The Finance and Administration Cabinet shall ex ercise general supervision and\ncontrol over all warehouses, storerooms, and stores and of all inventories of\nsupplies, services, and construction belonging to the Commonwealth. The cabinet\nshall promulgate administrative regulations to require agencies to take and maintain\ninventories of plant property, buildings, structures, other fixed assets, and\nequipment. The cabinet shall conduct periodic physical audits of inventories.\n(8) The Finance and Administration Cabinet shall establish and maintain programs f or\nthe development and use of purchasing specifications and for the inspection,\ntesting, and acceptance of supplies, services, and construction.\n(9) Nothing in this section shall prevent the Finance and Administration Cabinet from\nnegotiating with vendors who maintain a General Services Administration price\nagreement with the United States of America or any agency thereof. No contract\nexecuted under this provision shall authorize a price higher than is contained in the\ncontract between the General Services Administration and the vendor affected.\n(10) Except as provided in KRS Chapters 175, 176, 177, and 180, and subject to the\nprovisions of this code, the Finance and Administration Cabinet shall purchase or\notherwise acquire all real property determined to b e needed for state use, upon\napproval of the secretary of the Finance and Administration Cabinet as to the\ndetermination of need and as to the action of purchase or other acquisition. The\namount paid for this real property shall not exceed the appraised va lue as\ndetermined by the cabinet or the Transportation Cabinet (for such requirements of\nthat cabinet), or the value set by eminent domain procedure. Subject to the\nprovisions of this code, real property or any interest therein may be purchased,\nleased, or otherwise acquired from any officer or employee of any agency of the\nstate upon a finding by the Finance and Administration Cabinet, based upon a\nwritten application by the head of the agency requesting the purchase, and approved\nby the secretary of the F inance and Administration Cabinet and the Governor, that\nthe employee has not either himself or herself, or through any other person,\ninfluenced or attempted to influence either the agency requesting the acquisition of\nthe property or the Finance and Admin istration Cabinet in connection with such\nacquisition. Whenever such an acquisition is consummated, the request and finding\nshall be recorded and kept by the Secretary of State along with the other documents\nrecorded pursuant to the provisions of KRS Chapter 56.\n(11) The Finance and Administration Cabinet shall maintain records of all purchases and\nsales made under its authority and shall make periodic summary reports of all\ntransactions to the secretary of the Finance and Administration Cabinet, the\nGovernor, and the General Assembly. The Finance and Administration Cabinet\nshall also report trends in costs and prices, including savings realized through\nimproved practices, to the above authorities. The Finance and Administration\nCabinet shall also compile an annual repo rt of state purchases by all spending\nagencies in the state's statewide accounting and reporting system. The report format\nshall include, but not be limited to, dollar amount, volume, type of purchase, and\nvendor.\n(12) For capital construction projects, su bject to the provisions of this code and KRS\n45A.180, the procurement may be on whichever of the following alternative project\ndelivery methods, in the judgment of the secretary of the Finance and\nAdministration Cabinet after first considering the traditio nal design -bid-build\nproject delivery method, offers the best value to the taxpayer:\n(a) A design-build basis; or\n(b) A construction management-at-risk basis.\nProposals shall be reviewed by the engineering staff to assure quality and value, and\ncompliance with procurement procedures. All specifications shall be written to\npromote competition. Nothing in this section shall prohibit the procurement of\nphased bidding or construction manager-agency services.\n(13) The Finance and Administration Cabinet shall have control and supervision over all\npurchases of energy -consuming equipment, supplies, and related equipment\npurchased or acquired by any agency of the state as provided in this code, and shall\npromulgate administrative regulations to designate the manner in which an energy -\nconsuming item will be purchased so as to promote energy conservation and\nacquisition of energy efficient products. Major energy components shall be\namortized on a seven (7) to ten (10) years' recovery basis and shall take into\nconsideration the projected cost of fuel. The Finance and Administration Cabinet, in\nconsultation with the Cabinet for Economic Development, shall conduct a thorough\neconomic feasibility analysis on any major energy-using component of at least three\nmillion (3,000, 000) BTU's per hour heat input and shall issue a certificate of\neconomic feasibility prior to the Finance and Administration Cabinet's purchasing\nor retrofitting any such component that utilizes any fuel other than coal. The\neconomic feasibility analysis s hall consist of life -cycle cost comparisons of a\ncomponent that would utilize coal and one(s) that would utilize any fuel other than\ncoal. For the analysis, the Finance and Administration Cabinet shall provide\ndetailed estimates of equipment purchase price , installation cost, annual operation\nand maintenance costs, and usage patterns of energy-using components.","path":["KRS Chapter 45A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57788","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:06Z","sha256":"4be99e573b021e126032b38987dd984651fab17f1197714dc3cd5bc8d63233eb","source_id":"us-ky","stale":false,"prev":"us-ky/krs-45a.040","next":"us-ky/krs-45a.047"},"notice":"GroundRules: Original legal text. Not legal advice."}