{"data":{"id":"us-ky/krs-65.028","jurisdiction":"us-ky","citation":"KRS 65.028","heading":"Public -private partnership delivery method of awarding contracts for","body":"capital construction projects -- Kentucky Local Government Public -Private\nPartnership Board.\n(1) As used in this section:\n(a) \"Best value\" has the same meaning as in KRS 65.025;\n(b) \"Cabinet\" means the Finance and Administration Cabinet;\n(c) \"Local government\" means a city, county, charter county, urban -county\ngovernment, consolidated local government, unified local government, or\nlocal school district of the Commonwealth;\n(d) \"Private partner\" has the same meaning as in KRS 65.025; and\n(e) \"Public-private partnership\" has the same meaning as in KRS 65.025.\n(2) A public-private partnership delivery method may be utilized by a local government\nas provided in this section and adm inistrative regulations promulgated thereunder.\nContracts using this method shall be awarded by competitive negotiation on the\nbasis of best value, and shall in all cases take effect only if executed by the\nlegislative body of the local government, which i n the case of a school district shall\nbe the local board of education. The provisions of KRS 65.025(2) to (4) shall not\napply to public-private partnerships utilized by local governments.\n(3) A local government utilizing a public -private partnership shall continue to be\nresponsible for oversight of any function that is delegated to or otherwise performed\nby a private partner.\n(4) A public -private partnership shall not be used to circumvent any requirements or\nrestrictions placed upon any local government pu rsuant to any provision of the\nKentucky Revised Statutes.\n(5) All public-private partnership agreements executed by a local government or any of\nits agencies under this section shall be approved by the legislative body of the local\ngovernment, which in the  case of a school district shall be the local board of\neducation, at a public meeting, and shall include at a minimum the following\nprovisions:\n(a) 1. Property owned by a local government shall not be sold, conveyed, or\ndisposed of in any way at any time; and\n2. Leases issued by a local government to any party shall not be transferred\nin any way by that party;\nwithout the specific and express written consent of the legislative body, which\nin the case of a school district shall be the local board of education, of the\nlocal government;\n(b) Require the private partner to provide or cause to be provided performance\nand payment bonds on the design and construction portion of the agreement as\nrequired under KRS 45A.435 and maintenance bonds, warranties, guarantees,\nand letters of credit in connection with the private partner's other activities\nunder the agreement, in the forms and amounts satisfactory to the lo cal\ngovernment and in amounts necessary to provide adequate protection to the\nlocal government;\n(c) Review and approval of plans and specifications for the project by the local\ngovernment;\n(d) Inspection of the project by the local government to ensure tha t the private\npartner's actions are acceptable to the local government in accordance with the\nagreement;\n(e) Maintenance of public liability insurance or self -insurance, in form and\namount satisfactory to the local government and reasonably sufficient to\ninsure coverage of tort liability to the public and employees and to enable the\ncontinued operation of the project;\n(f) Reimbursement to be paid to the local government for services provided by\nthe local government;\n(g) Filing of appropriate financial state ments by the private partner on a periodic\nbasis;\n(h) Policies and procedures governing the rights and responsibilities of the local\ngovernment and the private partner in the event the public -private partnership\nagreement is terminated or there is a materi al default by the private partner.\nThese policies and procedures shall include conditions governing assumption\nof the duties and responsibilities of the private partner by the local\ngovernment, and the transfer or purchase of property or other interests of  the\nprivate partner by the local government;\n(i) Any fees or payments as may be established by agreement of the private\npartner and the local government;\n(j) A detailed description of all duties and requirements of the private partner;\n(k) The ability of a private partner or partners to quickly respond to the needs\npresented in the request for proposal, and the importance of economic\ndevelopment opportunities represented by the qualifying project. In evaluating\nproposals, preference shall be given to a pla n that includes the involvement of\nsmall businesses as subcontractors, to the extent that small businesses can\nprovide services in a competitive manner, unless any preference interferes\nwith the qualification for federal or other funds; and\n(l) Any other i nformation necessary to properly address the life cycle of the\nagreement, including the disposition of assets if or when the public -private\npartnership agreement is terminated or otherwise concludes.\n(6) (a) On or before December 31, 2016, the secretary of  the Finance and\nAdministration Cabinet shall promulgate administrative regulations setting\nforth criteria to be used by a local government employing a public -private\npartnership for a particular project, and establishing a process for public -\nprivate partnership procurement undertaken by local governments consistent\nwith this section. Prior to submission of the proposed administrative\nregulations pursuant to the regulatory process required by KRS Chapter 13A,\nthe proposed administrative regulations shall be  approved by the Kentucky\nLocal Government Public-Private Partnership Board established by subsection\n(11) of this section.\n(b) The secretary shall consult with design -builders, construction managers,\ncontractors, design professionals including engineers a nd architects, and other\nappropriate professionals during the development of these administrative\nregulations.\n(c) The secretary shall have the authority to contract with a consultant, pursuant\nto KRS 45A.695, to assist the cabinet and the Kentucky Local G overnment\nPublic-Private Partnership Board with the review process required in\nsubsection (12) of this section. The secretary may, through administrative\nregulation, impose a reasonable fee on the private partner to defray the cost of\nthe review required i n subsection (12) of this section, including any expenses\nor fees incurred in contracting with a consultant.\n(d) If the secretary fails to timely promulgate administrative regulations pursuant\nto this subsection, local governments may then act pursuant to this section\nincluding compliance with the process outlined in subsection (12) of this\nsection, in the absence of administrative regulations.\n(7) A request for proposal for a local government project utilizing a public -private\npartnership shall include at a minimum:\n(a) The parameters of the proposed public-private partnership agreement;\n(b) The duties and responsibilities to be performed by the private partner or\npartners;\n(c) The methods of oversight to be employed by the local government;\n(d) The duties and responsibilities that are to be performed by the local\ngovernment and any other partners to the contract;\n(e) The evaluation factors and the relative weight of each to be used in the\nscoring of awards; and\n(f) Other information required by a local government to evaluate the proposals\nsubmitted by respondents and the overall proposed public-private partnership.\n(8) A private entity desiring to be a private partner shall demonstrate to the satisfaction\nof the local government that it is capable of performing any duty, responsibility, or\nfunction it may be authorized or directed to perform as part of the public -private\npartnership agreement.\n(9) When a request for proposal for a project utilizing a public -private partnership is\nissued, the local government shall transmit a copy of the request for proposal to the\ncabinet and to the Department for Local Government.\n(10) A request for proposal or other solicitation may be canceled, or all proposals may\nbe rejected, if i t is determined in writing that the action is taken in the best interest\nof the local government and approved by the legislative body, which in the case of a\nschool district shall be the local board of education.\n(11) (a) There is established within the ca binet the Kentucky Local Government\nPublic-Private Partnership Board, composed of eleven (11) members as\nfollows:\n1. The secretary of the cabinet, or the secretary's designee;\n2. Two (2) individuals appointed by the Kentucky League of Cities, both\nof whom shall have experience in municipal financial operations;\n3. Two (2) individuals appointed by the Kentucky Association of Counties,\nboth of whom shall have experience in county financial operations, one\n(1) to be recommended by the Kentucky County Judge/Exe cutive\nAssociation and one (1) to be recommended by the Kentucky County\nMagistrates and Commissioners Association;\n4. The commissioner of the Department for Local Government, or the\ncommissioner's designee;\n5. The executive director of the Office of Financial Management within the\ncabinet, or the executive director's designee;\n6. The Auditor of Public Accounts, or the Auditor's designee;\n7. One (1) citizen member appointed by the Governor, who shall have\nexperience and knowledge in local government debt and  financial\noperations; and\n8. Two (2) members of the Kentucky General Assembly, one (1) appointed\nby the President of the Senate and one (1) appointed by the Speaker of\nthe House of Representatives, each of whom shall serve in a nonvoting\nex officio capaci ty and shall not be considered for purposes of\ndetermining a quorum.\n(b) Members of the board shall begin their terms on August 1, 2016, and shall\nserve for a term of four (4) years.\n(c) Board members appointed under paragraph (a)2. and 3. of this subsection may\nsend a designee with similar experience to meetings for which they are\nunavailable.\n(d) Vacancies occurring in the term of any member shall be filled in the same\nmanner as the original appointment.\n(e) The members of the board shall receive no compensation for their services.\n(f) The secretary of the cabinet, or the secretary's designee, shall serve as chair of\nthe board and the members shall elect a vice chair from among the\nmembership of the board. The vice chair may preside over meetings of the\nboard in the absence of the chair.\n(g) The board shall meet at least once per year, and as needed for the timely\nconsideration of proposed projects. A majority of the members of the board\nshall constitute a quorum.\n(h) The secretary of the cabinet shall be r esponsible for providing staff support\nand maintaining complete records of the board's actions and proceedings, as\npublic records open to inspection.\n(12) (a) Upon the initial issuance of a public -private partnership agreement having a\ntotal contractual va lue that equals or exceeds thirty percent (30%) of the\ngeneral fund revenues received by the local government in the immediately\npreceding fiscal year, the local government shall submit the agreement to the\ncabinet for the sole purpose of making an evaluat ion to the Kentucky Local\nGovernment Public-Private Partnership Board of the following:\n1. Whether the agreement meets the requirements of subsection (5) of this\nsection;\n2. An analysis of the overall project's economic and financial viability\nwithin the s cope of available or proposed financing arrangements and\nexpected revenues; and\n3. Whether the agreement adheres to the procurement process required by\nsubsection (2) of this section.\nPublic-private partnership agreements having a total contractual value that is\nless than thirty percent (30%) of the general fund revenues received by the\nlocal government in the immediately preceding fiscal year shall not be\nrequired to be submitted to the cabinet or the Kentucky Local Government\nPublic-Private Partnership Board.\n(b) The local government shall submit any information required by the cabinet,\nrelating to the agreement and its procurement, to enable the cabinet to conduct\nthis evaluation.\n(c) The cabinet shall acknowledge receipt of the agreement within thirty (30)\ndays, and after evaluation thereof shall, within ninety (90) days of its receipt,\nforward the results of its evaluation separately to each individual member of\nthe Kentucky Local Government Public -Private Partnership Board. The full\nboard shall meet within sixty (60) days of the issuance of the cabinet's\nevaluation to consider the evaluation provided by the cabinet and approve or\ndisapprove the proposed agreement. If the board disapproves the project, the\nboard shall provide specific reasons for its disapproval. If the board approves\nthe project, the cabinet sha ll return the agreement to the local government\nlegislative body, which in the case of a school district shall be the local board\nof education, for final execution thereof. No public -private partnership\nagreement issued by a local government that is subjec t to evaluation by the\ncabinet and review and approval by the Kentucky Local Government Public -\nPrivate Partnership Board pursuant to paragraph (a) of this subsection shall\ntake effect unless and until it is approved by the Kentucky Local Government\nPublic-Private Partnership Board pursuant to this subsection and is found by\nthe board to meet the requirements of this section and to be economically\nviable as provided in this subsection.\n(d) If an agreement is not approved by the board, the local government submitting\nthe agreement may modify the agreement and resubmit it for reconsideration\nin accordance with this section.\n(13) The Commonwealth shall bear no liability for public -private partnership\nagreements approved pursuant to subsection (12) of this section.\n(14) Upon approval and execution of a public -private partnership agreement, the local\ngovernment shall transmit a copy of the agreement to the Department for Local\nGovernment.\n(15) The Auditor of Public Accounts may periodically review public -private partnership\nagreements executed by a local government pursuant to this section, and any\nactions undertaken by private partners and local governments thereunder, to\nevaluate compliance with the agreement and this section.\n(16) Multiple local governments, acting in accordance with KRS 65.210 to 65.300, may\njointly enter into a public-private partnership pursuant to this section. Public-private\npartnership agreements involving multiple local governments shall only be required\nto be submitted to the cabinet for e valuation and to the Kentucky Local\nGovernment Public-Private Partnership Board for review and approval, as provided\nby subsection (12) of this section, if the total contractual value equals or exceeds\nthirty percent (30%) of the combined general fund reve nues received in the\nimmediately preceding fiscal year by all local governments participating in the\nagreement.\n(17) (a) A person or business may submit an unsolicited proposal to a local\ngovernment, which may receive the unsolicited proposal.\n(b) Within n inety (90) days of receiving an unsolicited proposal, a local\ngovernment may elect to consider further action on the proposal, at which\npoint the local government shall provide public notice of the proposal\npursuant to KRS Chapter 424 or electronically on the website of the local\ngovernment, and shall:\n1. Provide specific information regarding the proposed nature, timing, and\nscope of the unsolicited proposal, except that trade secrets, financial\nrecords, or other records of the person or business making th e proposal\nshall not be posted unless otherwise agreed to by the local government\nand the person or business; and\n2. Provide for a notice period of at least thirty (30) days and no more than\nninety (90) days for the submission of competing proposals.\n(c) Upon the end of the notice period provided under paragraph (b)2. of this\nsubsection, the local government may consider the unsolicited proposal and\nany competing proposals received. If the local government determines it is in\nthe best interest of the local government to implement some or all of the\nconcepts contained within the unsolicited proposal or competing proposals\nreceived by it, the local government may begin an open, competitive\nprocurement process to do so pursuant to this section.\n(d) An unsolicit ed proposal shall be deemed rejected if no written response is\nreceived from the local government within ninety (90) days after submission,\nduring which time the governmental body has not taken any action on the\nproposal under paragraph (b) of this subsection.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53745","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:20Z","sha256":"bd37d2cca15d5062b40d512a5a94b16b3ac30a232fa7dfceaabfad3feb4728c0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.027","next":"us-ky/krs-65.029"},"notice":"GroundRules: Original legal text. Not legal advice."}