{"data":{"id":"us-ky/krs-48.111","jurisdiction":"us-ky","citation":"KRS 48.111","heading":"Governor to include in executive budget recommendation a recommended","body":"program for rental of space costing more than $200,000 annually -- Restriction\non certain leases -- Exception.\n(1) The Governor shall include in the executive branch budget recommenda tion and in\nthe draft branch budget bill for the executive branch submitted to each even -\nnumbered-year regular session of the General Assembly pursuant to KRS 48.110,\nfor the biennium period beginning July 1, 1992, and for each biennium thereafter, a\nrecommended program for rental of any space for which the annual rental cost will\nexceed two hundred thousand dollars ($200,000).\n(2) The recommended program for leased space shall include:\n(a) A summary description of each specific two hundred thousand dollar\n($200,000) lease project recommended for funding during the biennium; and\n(b) For each project:\n1. The name of the agency for which space will be leased;\n2. The purpose and justification for the lease;\n3. Whether the lease contains a purchase option which will be exercised\nduring the biennium pursuant to KRS 56.806(4) and the estimated\npurchase price;\n4. a. Whether the lease contains a lease -purchase which will be\ncompleted during the biennium pursuant to KRS 56.806(5) prior to\nthe total amortization, throu gh lease payments, of the fair market\nvalue of the leased property as of the time the lessor and the\nCommonwealth entered into the lease; and\nb. The estimated sum of money that will have to be paid in addition\nto rent paid to complete the purchase;\n5. The estimated cost of the lease; and\n6. The recommended sources of funds.\n(3) All information required by subsection (2) of this section shall be included in the\nexecutive branch budget recommendation. The branch budget bill for the executive\nbranch shall contain only the information specified in subparagraphs 1. and 2. of\nsubsection (2)(b) of this section.\n(4) Except as provided in subsection (5) of this section, no lease with an annual rental\ncost which will exceed two hundred thousand dollars ($200,000) shall be executed\nunless the lease has been identified and included in the bra nch budget bill. The\nbranch budget bill for the executive branch shall authorize the expenditure by the\nbudget unit that will occupy the premises.\n(5) A lease with an annual rental cost exceeding two hundred thousand dollars\n($200,000) may be authorized ev en though it is not specifically listed in the branch\nbudget bill, subject to the following conditions and procedures:\n(a) A lease is awarded as the result of the consolidation of leases in which case, in\naddition to subsection (6) of this section, the pro visions of KRS 56.803 and\n56.823(2) or of KRS 56.805(2) and 56.823(3) shall apply, as appropriate; or\n(b) A lease is awarded as the result of an agency occupying substantially less\nspace than it should, under the standards for space set by the Department f or\nFacilities Management, in which case, in addition to subsection (6) of this\nsection, the provisions of KRS 56.803 and 56.823(2) or of KRS 56.805(2) and\n56.823(3) shall apply, as appropriate. The space allocated under the new lease\nshall not exceed the space which should be allocated pursuant to the standards\nfor space; or\n(c) A lease with an annual rental cost of less than two hundred thousand dollars\n($200,000) is renewed or replaced for an annual rental cost that exceeds two\nhundred thousand dollars ($ 200,000), but only if that request and subsequent\nrenewal or replacement lease is:\n1. From the same state agency lessee whose initial lease was under two\nhundred thousand dollars ($200,000);\n2. For the same or substantially the same square footage as the i nitial lease\nthat was under two hundred thousand dollars ($200,000);\n3. The result of the competitive leasing process authorized by KRS 56.803;\n4. For an annual lease payment of less than two hundred and fifty thousand\ndollars ($250,000); and\n5. Effective only until June 30 of the next even -numbered year unless\nauthorized in the branch budget bill; or\n(d) A lease is awarded as the result of an emergency in which case the provisions\nof KRS 56.805(3) and (4) and KRS 56.823(5) shall apply; or\n(e) 1. Fifty percent (50%) or more of the actual cost shall be funded by federal\nor private funds; and\n2. Money specifically budgeted and appropriated by the General Assembly\nfor another purpose shall not be allotted or reallotted for expenditure on\nthe lease. Money utiliz ed shall not jeopardize any existing program and\nshall not require the use of current general funds specifically dedicated\nto existing programs; and\n3. The Finance and Administration Cabinet shall comply with the\nrequirements of subsection (6) of this section.\n(6) (a) No later than five (5) business days after an advertisement for lease proposals\npursuant to paragraph (a) or (b) of subsection (5) of this section, the cabinet\nshall provide the Capital Projects and Bond Oversight Committee with a copy\nof the advertisement and shall state in writing to the committee that the copy\nis being provided in compliance with this paragraph.\n(b) Prior to final authorization of a lease pursuant to paragraph (e) of subsection\n(5) of this section, the cabinet shall report t o the Capital Projects and Bond\nOversight Committee:\n1. The name of the agency for which space will be leased;\n2. The purpose and justification for the lease;\n3. The estimated cost of the lease;\n4. The source of funds; and\n5. Whether the requirements of pa ragraph (e) of subsection (5) of this\nsection have been met.\n(c) Within thirty (30) days after the report required in paragraph (b) of this\nsubsection has been submitted to the committee, the committee shall conduct\nits review and decide whether to approve  or disapprove the proposed lease\nauthorization. The Legislative Research Commission shall promptly transmit\nthe committee's findings and determinations to the Finance and\nAdministration Cabinet.\n(d) If the committee disapproves a proposed lease authorization, the secretary of\nthe Finance and Administration Cabinet shall:\n1. Revise the proposed lease authorization to comply with the objection of\nthe committee; or\n2. Cancel the proposed lease authorization; or\n3. Determine to proceed with the proposed lease authorization disapproved\nby the committee.\n(e) The decision made by the secretary of the Finance and Administration Cabinet\nunder paragraph (d) of this subsection shall be communicated to the\ncommittee in writing within thirty (30) days of the committee's disapproval.\n(f) The Legislative Research Commission shall maintain records of the\ncommittee's disapproval of a proposed lease authorization and the cabinet's\nreport of its actions on a disapproved p roposed lease authorization. If the\ncommittee disapproves a proposed lease authorization, the Legislative\nResearch Commission shall transmit the committee's disapproval and the\ncabinet's action on the disapproval to the appropriate interim joint committee\nof the Legislative Research Commission and to the General Assembly when\nnext convened in an even-numbered-year regular session.\n(g) If, after committee review, a lease is authorized, the lease shall be awarded\npursuant to this section and KRS 43.050 and 56 .800 to 56.823 and shall be\nsubsequently reviewed pursuant to the appropriate subsection of KRS 56.823.","path":["KRS Chapter 48"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=39788","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:09Z","sha256":"6cc7c940730bc295ba70afb78b6184707cb5ea6e43c50709d2164949f1ca9cac","source_id":"us-ky","stale":false,"prev":"us-ky/krs-48.110","next":"us-ky/krs-48.112"},"notice":"GroundRules: Original legal text. Not legal advice."}