Title 739 | Chapter 001 | Regulation 080REG
PROPOSED
This document is not yet current.
KENTUCKY COMMUNITY AND TECHNICAL COLLEGE SYSTEM
Board of Regents
(New Administrative Regulation)
739 KAR 1:080.Issuance of bonds.
Section 1.
The Kentucky Community and Technical College System Board of Regents, under the provision of KRS 164A.560, elects the authority to issue bonds subject to the conditions as set forth in KRS 164A.605.DR. RYAN QUARLES, President
APPROVED BY AGENCY: July 9, 2025
FILED WITH LRC: July 11, 2025 at 8:25 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on September 23, 2025, at 1:00 p.m. EST at 300 North Main Street, Versailles, Kentucky 40383. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing was received by that date, the hearing may be cancelled. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through September 30, 2025. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Chelsea Young, Staff Attorney, 300 North Main Street, Versailles, Kentucky 40383, phone (859) 256-3562, fax (859) 256-3117, email chelsea.young@kctcs.edu.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Chelsea Young
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation implements the provisions of KRS 164A.605 at the Kentucky Community and Technical College System.
(b) The necessity of this administrative regulation:
This administrative regulation is necessary to effectuate the provisions of KRS 164A.555-164A.630.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This regulation conforms to the authorizing statutes by electing the management and administrative procedures set forth therein.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This regulation will assist in administration by adopting the necessary procedures, set forth in the statute.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This is a new administrative regulation; existing regulatory language is not being amended.
(b) The necessity of the amendment to this administrative regulation:
Not Applicable.
(c) How the amendment conforms to the content of the authorizing statutes:
Not Applicable.
(d) How the amendment will assist in the effective administration of the statutes:
Not Applicable.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
The Kentucky Community and Technical College System, including the sixteen colleges within that system.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
The system will adopt the management and administration procedures as set forth in the applicable law.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
Less than $250,000.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
The effected entities will benefit from the regulatory guidance pertaining to the necessary procedures that shall be followed.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Less than $250,000.
(b) On a continuing basis:
Less than $250,000.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
These funds would likely come as part of the staffing and audit budgets housed within the Treasury, Accounting and Capital Projects teams.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
With current debt service, it is not anticipated that an increase in fees or funding will be necessary.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
No, this regulation does not immediately establish any new fees; nor does it directly increase any existing fees.
(9) TIERING: Is tiering applied?
No. Tiering is not appropriate as the administrative regulation applies equally to all individuals or entities that it regulates.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 164A.605
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
KRS 164A.560
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
The Kentucky Community and Technical College System.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
Less than $250,000.
For subsequent years:
Less than $250,000.
2. Revenues:
For the first year:
None
For subsequent years:
None
3. Cost Savings:
For the first year:
None
For subsequent years:
None
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
None.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
2. Revenues:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
3. Cost Savings:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
None
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
2. Revenues:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
3. Cost Savings:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
The primary fiscal impact involves staffing additions to the Kentucky Community and Technical College System for effective bond process management. Some responsibilities will be distributed among current staff, requiring additional training costs. Annual internal and external audit expenses may also rise due to increased reporting demands. Establishing a Bond Advisory Team, including Bond Counsel, Borrower’s Counsel, Underwriter, Financial Advisor, and Conduit Issuer will involve additional costs. However, these are typically included in the bond issuance itself and should not significantly impact KCTCS finances. KCTCS currently funds debt service through the mandatory student fee. If a third bond series is considered, the fee’s adequacy and any potential increase would be evaluated at that time.
(b) Methodology and resources used to reach this conclusion:
Research and review of the standard practices of institutional bond issuance, review of industry salary ranges, as well as consultation with the initial Kentucky Community and Technical College System bond issuance teams and the Commonwealth Office of Financial Management.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(13):
As a majority of the cost of bond issuance will be rolled into the value of the bonds themselves, there is no "major economic impact" as defined.
(b) The methodology and resources used to reach this conclusion:
Research and review of the standard practices of institutional bond issuance, review of industry salary ranges, as well as consultation with the initial Kentucky Community and Technical College System bond issuance teams and the Commonwealth Office of Financial Management.
KENTUCKY COMMUNITY AND TECHNICAL COLLEGE SYSTEM
Board of Regents
(New Administrative Regulation)
739 KAR 1:080.Issuance of bonds.
Section 1.
The Kentucky Community and Technical College System Board of Regents, under the provision of KRS 164A.560, elects the authority to issue bonds subject to the conditions as set forth in KRS 164A.605.DR. RYAN QUARLES, President
APPROVED BY AGENCY: July 9, 2025
FILED WITH LRC: July 11, 2025 at 8:25 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on September 23, 2025, at 1:00 p.m. EST at 300 North Main Street, Versailles, Kentucky 40383. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing was received by that date, the hearing may be cancelled. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through September 30, 2025. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Chelsea Young, Staff Attorney, 300 North Main Street, Versailles, Kentucky 40383, phone (859) 256-3562, fax (859) 256-3117, email chelsea.young@kctcs.edu.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Chelsea Young
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation implements the provisions of KRS 164A.605 at the Kentucky Community and Technical College System.
(b) The necessity of this administrative regulation:
This administrative regulation is necessary to effectuate the provisions of KRS 164A.555-164A.630.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This regulation conforms to the authorizing statutes by electing the management and administrative procedures set forth therein.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This regulation will assist in administration by adopting the necessary procedures, set forth in the statute.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This is a new administrative regulation; existing regulatory language is not being amended.
(b) The necessity of the amendment to this administrative regulation:
Not Applicable.
(c) How the amendment conforms to the content of the authorizing statutes:
Not Applicable.
(d) How the amendment will assist in the effective administration of the statutes:
Not Applicable.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
The Kentucky Community and Technical College System, including the sixteen colleges within that system.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
The system will adopt the management and administration procedures as set forth in the applicable law.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
Less than $250,000.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
The effected entities will benefit from the regulatory guidance pertaining to the necessary procedures that shall be followed.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Less than $250,000.
(b) On a continuing basis:
Less than $250,000.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
These funds would likely come as part of the staffing and audit budgets housed within the Treasury, Accounting and Capital Projects teams.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
With current debt service, it is not anticipated that an increase in fees or funding will be necessary.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
No, this regulation does not immediately establish any new fees; nor does it directly increase any existing fees.
(9) TIERING: Is tiering applied?
No. Tiering is not appropriate as the administrative regulation applies equally to all individuals or entities that it regulates.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 164A.605
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
KRS 164A.560
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
The Kentucky Community and Technical College System.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
Less than $250,000.
For subsequent years:
Less than $250,000.
2. Revenues:
For the first year:
None
For subsequent years:
None
3. Cost Savings:
For the first year:
None
For subsequent years:
None
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
None.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
2. Revenues:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
3. Cost Savings:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
None
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
2. Revenues:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
3. Cost Savings:
For the first year:
Not Applicable
For subsequent years:
Not Applicable
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
The primary fiscal impact involves staffing additions to the Kentucky Community and Technical College System for effective bond process management. Some responsibilities will be distributed among current staff, requiring additional training costs. Annual internal and external audit expenses may also rise due to increased reporting demands. Establishing a Bond Advisory Team, including Bond Counsel, Borrower’s Counsel, Underwriter, Financial Advisor, and Conduit Issuer will involve additional costs. However, these are typically included in the bond issuance itself and should not significantly impact KCTCS finances. KCTCS currently funds debt service through the mandatory student fee. If a third bond series is considered, the fee’s adequacy and any potential increase would be evaluated at that time.
(b) Methodology and resources used to reach this conclusion:
Research and review of the standard practices of institutional bond issuance, review of industry salary ranges, as well as consultation with the initial Kentucky Community and Technical College System bond issuance teams and the Commonwealth Office of Financial Management.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(13):
As a majority of the cost of bond issuance will be rolled into the value of the bonds themselves, there is no "major economic impact" as defined.
(b) The methodology and resources used to reach this conclusion:
Research and review of the standard practices of institutional bond issuance, review of industry salary ranges, as well as consultation with the initial Kentucky Community and Technical College System bond issuance teams and the Commonwealth Office of Financial Management.