AN ACT relating to government contracts.
     Define the terms "contract," "job," "not-to-exceed amount," "proof of necessity," and "public notice" as used in KRS 45A.690 to 45A.725; limit the use of memoranda of agreement to agreements between governmental bodies; require Medicaid management contracts to be included in the definitions of memoranda of agreement and personal service contracts; expand the definition of personal service contract to include the administration of any state program; expand approval requirement of Government Contract Committee for any agreement with any element of service, including combinations of commodity and service purchases; require evidence of cost of using state employees to perform service, and monitoring plan for contracts and personal service contracts over $40,000, on the proof of necessity form; require requests for proposals for personal service contracts to include price as an evaluation factor; limit award of personal service contracts to responsible offerors as determined by the contractor assessment rating scale; require negotiations for price in personal service contracts to be based on the price submitted by the offeror; prohibit payment on a contract, personal service contract, or memorandum of agreement before consideration by the committee; require the head of the contracting body in addition to the secretary of finance and administration to override a negative committee decision before payment can be made; provide the definition of governmental emergency; require the head of the contracting body, in addition to the secretary of finance and administration, to authorize a governmental emergency; allow the committee to audit previously approved contracts, personal service contracts, and memoranda of agreement after a committee vote; require the committee to develop a methodology for identifying those contracts, personal service contracts, and memoranda of agreement to audit; require the Finance and Administration Cabinet to provide the committee and its staff with access to the cabinet's procurement database, with searchabilty and sorting capability, by July 1, 2007. Beginning in October 2008, require the Finance and Administration Cabinet to provide reports to the committee for all contracts, personal service contracts, and memoranda of agreement, for the previous fiscal year; require the Finance and Administration Cabinet to establish a Web site for the purpose of providing public information on contract and personal service contract awards and renewals; prohibit a contracting body from entering into or using a contract, personal service contract, or memorandum of agreement in which it was not an original party; prohibit the amendment or modification of a contract or personal service contract for more than ten percent (10%) of the original price or work; require that the Attorney General have the right of first refusal for all legal personal service contracts; prohibit a contracting body from entering into a legal services contract for the same or similar legal service contract that the Attorney General has determined will be performed by the Office of the Attorney General; require the Finance and Administration Cabinet to associate payments to specific contracts, personal service contracts, and memoranda of agreement within sixty (60) days after the effective date of this Act, and require the Finance and Administration Cabinet to promulgate administrative regulations relating to the association requirement. Require the Finance and Administration Cabinet to promulgate administrative regulations relating to travel reimbursement for contract and personal service contract vendors; require the Finance and Administration Cabinet to establish and maintain a procurement training program; require the Finance and Administration Cabinet to promulgate administrative regulations clarifying the independent contractor status of contract workers; require the Finance and Administration Cabinet to develop a contractor assessment rating scale, and require all governmental bodies to rate the performance of all contractors and to use the rating scale to determine whether a contractor is a responsible bidder or offeror under KRS 45A.080, 45A.085, and 45A.095; require the Finance and Administration Cabinet to provide training on contractor monitoring, to annually review the monitoring practices of all governmental bodies, and to promulgate administrative regulations to carry out the monitoring requirements; require the Finance and Administration Cabinet to maintain records on all contracts where a determination of emergency, sole source, or not feasible to bid has been made, and to document justification for the exemption; require the Finance and Administration Cabinet to report biennially to the committee concerning the exemption categories. Prohibit approval of a contract for which a sole source, nonfeasibility, or emergency exemption has been approved from being renewed more than two (2) consecutive times without being rebid; delete exemptions from the definition of privatization contract, and delete the term "services" from KRS 45A.550; redefine the process for approving a privatization contract. Amend KRS 45A.553 to reduce the evaluation threshold for privatization contracts from $500,000 to $300,000; amend KRS 45A.285 and 45A.290 to allow a protest to the secretary of the Finance and Administration Cabinet of a contractor rating assessment.

     Jan 18-introduced in House
     Jan 19-to State Government (H)
     Jan 30-posted in committee; posting waived