{"data":{"id":"us-ky/krs-45a.551","jurisdiction":"us-ky","citation":"KRS 45A.551","heading":"Procedures for state agency privatization contracts.","body":"(1) Upon approval of the Finance and Administration Cabinet, a state agency may enter\ninto a privatization contract.\n(2) Before a state agency recommends to the Finance and Administration Cabinet that it\nenter into a privatization contract, the state agency sh all determine and set forth in\nwriting:\n(a) The necessity for the service and the intended goals of the service;\n(b) Problems and inefficiencies existing with the current governmental operation\nof the service; and\n(c) Whether the service can efficiently be provided by the agency.\n(3) If the state agency determines that the service cannot efficiently be provided by the\nagency, the state agency shall be permitted to continue the normal contracting\nprocess for the service. However, if the state agency determin es that the service can\nefficiently be provided by the agency and the state agency chooses to proceed with\nprivatization, it shall set forth in writing to the Finance and Administration Cabinet:\n(a) The tangible benefits of privatizing the service;\n(b) Any state or federal legal restraints that may limit or prevent privatization of\nthe government service;\n(c) The availability of multiple qualified and competitive private vendors;\n(d) 1. A cost-benefit analysis comparison that shall include, but not be limit ed\nto, collection and analysis of the total assessible fixed and variable,\ndirect and indirect, costs of:\na. The current governmental operation; and\nb. The private vendor contract.\n2. The costs shall include, but not be limited to:\na. Facility and equipment maintenance;\nb. Inflation-adjusted costs, where comparison to past years is being\nconducted;\nc. Transition costs associated with shifting the service delivery from\nthe government agency to a private vendor;\nd. Costs of monitoring, evaluating, and enforcing the contract;\ne. Personnel costs such as those providing for benefits, early\nretirements, retraining, and relocation in another position; and\nf. A plan for resuming government operation of the service if the\nprivatization effort fails.\n(e) A plan of assistance for all state employees who will be adversely affected by\nprivatizing the service. The plan shall include at least:\n1. Efforts to place affected employees in vacant positions in another state\nagency and to retrain employees for  another position in state\ngovernment;\n2. Provisions in the contract, if feasible, for the hiring by the contractor of\ndisplaced employees at wages and benefits comparable to the wages and\nbenefits paid to the state employees, subject to the provisions of KRS\n11A.130; and\n3. Prior notification to affected state employees the day the contract is\nsigned, or three (3) months before the day the adverse effect will occur,\nwhichever is earlier.\n(f) A process for monitoring, evaluating, and enforcing a contract wi th a private\nvendor which shall include, but not be limited to:\n1. Development of a method for ongoing, comprehensive performance\nevaluation of the private vendor; and\n2. Establishment of performance criteria and standards to evaluate the\nprivate vendor.\n(4) All information required by subsections (2) and (3) of this section shall be\nsubmitted to the Finance and Administration Cabinet for its review and approval\nprior to proceeding with the contracting provisions of KRS Chapter 45A.\n(5) The state agency shall retain responsibility for ensuring the quality and reliability of\nthe services.\n(6) All records in the possession of a state agency in conjunction with the approval,\nevaluation, or enforcement of a privatization contract unless exempt under another\nstatute shall be public records, access to which shall be governed by KRS 61.870 to\n61.884.\n(7) Any other statute to the contrary notwithstanding, all records prepared, owned,\nused, in the possession of, or retained by a state agency in conjunction with the\napproval, evaluation, or enforcement of a privatization contract shall be public\nrecords, access to which shall be governed by KRS 61.870 to 61.884.","path":["KRS Chapter 45A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22446","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:07Z","sha256":"f08ec9de79776df3979f9e95f277a14979afd631e42db3641499e8b3f1a2ff43","source_id":"us-ky","stale":false,"prev":"us-ky/krs-45a.550","next":"us-ky/krs-45a.552"},"notice":"GroundRules: Original legal text. Not legal advice."}