{"data":{"id":"us-ky/krs-45a.695","jurisdiction":"us-ky","citation":"KRS 45A.695","heading":"Personal service contract procedures -- Tax incentive agreements.","body":"(1) Except as provided in subsection (8) of this section, no one shall begin work on a\npersonal service contract entered into by any contracting body or incur expenditures\nunder a tax incentive agreement until notification of the personal service contract or\ntax incentive agreement is filed with the committee. Each personal service contract\nshall have a cancellation clause not to exceed thirty (30) days notice to the\ncontractee.\n(2) Each personal service contract, tax incentive agreement, and memorandum of\nagreement shall be filed with the committee prior to the effective date and shall be\naccompanied by a completed proof of necessity form as established by the\ncommittee by promulgation of an administrative regulation, or equivalent\ninformation if submitted electronically. The proof of necessity form shall document:\n(a) The need for the service or benefit to the Commonwealth of the tax incentive\nagreement;\n(b) For personal service contracts and memoranda of agreement, the\nunavailability of state personnel or the nonfeasibility of utilizing state\npersonnel to perform the service;\n(c) The total projected cost of the contract or agreement and source of funding;\n(d) The total projected duration of the contract or tax incentive agreement;\n(e) Payment information, in detail;\n(f) In the case of memoranda of agreement or similar device, the reason for\nexchanging resources or responsibilities; and\n(g) Such other information as the committee deems appropriate.\n(3) Adequate notice of the need for a personal service contract s hall be given by the\ncontracting body through a request for proposals. The request for proposals shall\ndescribe the services required, list the type of information and data required of each\nofferor, state the relative importance of particular qualification s, and include the\nreciprocal preference for resident bidders required by KRS 45A.494.\n(4) The head of the contracting body or his or her designee may conduct discussions\nwith any offeror who has submitted a proposal to determine the offeror's\nqualifications for further consideration. Discussions shall not disclose any\ninformation derived from proposals submitted by other offerors.\n(5) Award shall be made to the offeror determined by the head of the contracting body,\nor his or her designee, to be the best qualified of all offerors based on the evaluation\nfactors set forth in the request for proposals and the negotiation of fair and\nreasonable compensation. If compensation cannot be agreed upon with the best\nqualified offeror and if proposals were submitted b y one (1) or more other offerors\ndetermined to be qualified, negotiations may be conducted with the other offeror or\nofferors in the order of their respective qualification ranking. In this case, the\ncontract may be awarded to the next best ranked offeror for a fair and reasonable\ncompensation. All determinations of the qualification rankings of offerors by the\nhead of the contracting body or a designee of the officer based on evaluation factors\nset forth in the request for proposals shall be made in writin g. Written\ndocumentation shall be maintained concerning the final results of negotiation with\neach vendor and reasoning as to why each vendor was chosen.\n(6) The committee shall maintain a record or have readily accessible records of the date\non which each personal service contract, tax incentive agreement, and memorandum\nof agreement was received and shall maintain or have access to electronic or paper\nfiles on all personal service contracts, tax incentive agreements, and memoranda of\nagreement. Except for  records exempt from inspection under KRS 61.870 to\n61.884, all personal service contracts, tax incentive agreements, and memoranda of\nagreement shall be made available for public inspection.\n(7) Payment on personal service contracts, tax incentive agreements, and memoranda of\nagreement submitted to the committee for approval shall not be made for services\nrendered or projects undertaken after committee disapproval, unless the decision of\nthe committee is overridden by the secretary of the Finance and Admin istration\nCabinet or agency head, if the agency has been granted delegation authority by the\nsecretary of the Finance and Administration Cabinet. All personal service contracts,\ntax incentive agreements, and memoranda of agreement shall contain a provision\nthat stipulates that payments on personal service contracts and memoranda of\nagreement shall not be authorized for services rendered after committee\ndisapproval, unless the decision of the committee is overridden by the secretary of\nthe Finance and Admini stration Cabinet or agency head, if the agency has been\ngranted delegation authority.\n(8) In the event of a governmental emergency as defined under KRS 45A.690, work\nmay begin prior to filing notification of the personal service contract with the\ncommittee, if the secretary of the Finance and Administration Cabinet or his\ndesignee determines th at the time involved in the normal review process would be\ndetrimental to the Commonwealth's ability to act or procure the services and the\nnormal process will not accommodate the governmental emergency. Payment shall\nnot be made until written notification  and explanation of the reasons for this action\nare forwarded to the committee.\n(9) If a governmental emergency exists as defined under KRS 45A.690 and work is\nauthorized to begin on a personal service contact immediately, a copy of a\nstatement, approved b y the secretary of the Finance and Administration Cabinet or\nhis designee, setting forth in detail the nature of the emergency shall be filed with\nthe committee, along with a copy of the personal service contract.\n(10) (a) No payment shall be made on any p ersonal service contract unless the\nindividual, firm, partnership, or corporation awarded the personal service\ncontract submits its invoice for payment on a form established by the\ncommittee.\n(b) Invoices shall be submitted every ninety (90) days, unless the personal service\ncontract specifies a different submission time period.\n(c) Separate invoices shall be submitted for each distinct matter covered by the\npersonal service contract, and shall be signed by the individual responsible for\nthat matter.\n(d) Each invoice shall contain the following information:\n1. A description of the matter covered by the invoice;\n2. The date each service was performed;\n3. A full description of each service;\n4. The name and title of each individual who worked on the matter, and the\ntime the individual spent on the matter;\n5. The subject matter and recipient of any correspondence;\n6. A full description of any work product produced, designating the way in\nwhich the work product is associated with the matter being invoiced;\n7. The hourly rate for each individual working on the matter, and the total\ncharge for that individual for each matter invoiced;\n8. An itemized list of all disbursements to be reimbursed by the state for\neach matter invoiced;\n9. The total charge for each matter;\n10. The combined total for services and disbursements for the billing period;\n11. The tax identification number of the entity awarded the personal service\ncontract; and\n12. An indication on each invoice of whether or not the invoice is final.\n(e) The issuance of an invoice to the Commonwealth constitutes an affirmation\nby the individual, firm, partnership, or corporation awarded the personal\nservice contract that the invoice truly and accurately represents work actually\nperformed and expenses actually incurred.\n(f) The head of the contracting body shall approve the invoice, indicating that the\ncharges in the invoice reflect the value of the work performed, and all\nrecorded costs and disbursements were reasonably and necessarily incurred in\nconnection with the matter invoiced.","path":["KRS Chapter 45A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22468","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:08Z","sha256":"8e35e66ce610431716dcda70f8115349ab686e51ab6a650d85da9d73d29ddda9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-45a.690","next":"us-ky/krs-45a.700"},"notice":"GroundRules: Original legal text. Not legal advice."}