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HB 460 (BR 73) - M. Long, J. Coleman, D. Graham, B. Heleringer
AN ACT relating to government contracts.
Amend various sections of KRS Chapter 45A and 198A to define various terms, including “memorandum of agreement”; rename the Personal Service Contract Review Subcommittee to the Government Contract Review Committee throughout the bill; clarify that a governmental emergency does not include the failure of an agency to file a personal service contract or memorandum of agreement (MOA) with the committee in a timely manner; define “memorandum of agreement” for purposes of government contract review to mean MOA’s, memoranda of understanding, program administration contract, or similar device, that involve an exchange of resources or responsibilities to carry out a government function; define multicontract; specify the term personal service contract requires professional skill or professional judgment and include price contracts in any amount; designate that agreements between a state agency and providers of direct Medicaid health care to individuals, except for HMO's and other entities primarily responsible for managed health care, are exempt from review by the committee; designate that agreements between a state agency and a state college or university, an area development district, a community action agency, a mental health/mental retardation board, another state agency or a political subdivision as within the definition of personal service contract; designate that agreements between state colleges and employers of students in work study programs sponsored by the Kentucky Higher Education Assistance Authority as exempt from review by the committee; require MOA's to be filed with the committee prior to the effective date and require documentation specified in a proof of necessity form, or equivalent information if filed electronically; require additional documentation of the projected cost and source of funding, projected duration, detailed payment information, reason for exchanging resources or responsibilities, and any other information as the committee deems; require maintenance of an electronic or paper file or readily accessible records on all personal service contracts and MOA's, including date of receipt by the committee, and make available for public inspection; prohibit payment on any personal service contract or MOA prior to review by the committee, unless a governmental emergency exists; clarify governmental emergency provisions to require the secretary of the Finance and Administration Cabinet or his designee to determine that the time involved in the review process would be detrimental to the state's ability to act or procure the service and the normal process will not accommodate the emergency and, on personal service contracts, require written documentation of such facts to the committee; require personal service contracts under $1,000 and MOA's and price contracts under $50,000 to be filed with the committee not more than 30 days after their effective date and allow committee review of such contracts if filed more than 30 days after the effective date; exempt MOA's and price contracts under $50,000 during a fiscal year from routine review by the committee, but allow periodic examination of such contracts with agency participation; specify that if any MOA or price contract under $50,000 is amended to the extent that it exceeds $50,000, then require committee review; designate that a quorum is at least four (4) members present and the vote to be by majority; require examination of the appropriations of any exchange of resources or responsibilities; require annual reports to the committee by contracting bodies and establish procedures; delete requirement of monthly reports of committee activity to the Legislative Research Commission; allow the committee to establish policies and procedures and allow the use of electronic instrumentalities; remove the requirement that certain certifications, made upon negotiation of an architectural or engineering contract with the Transportation Cabinet, are to be filed with the committee; and make various technical corrections and changes.
HB 460 - AMENDMENTS
HCS - Retain original provisions, except allow the committee to determine governmental emergency; specify that memoranda of agreement are between state agencies and any other governmental body or political subdivision; allow the committee to define the governmental emergency provisions; exclude from the definition of memorandum of agreement, agreements between the Transportation Cabinet and political subdivisions for road and road-related projects, agreements between the State Auditor and any other governmental agency, agreements between state agencies, as required by state or federal law, agreements between employers and students in the KHEAA work-study program, agreements involving child support collections and enforcement, agreements with public utilities, agreements with providers of certain direct health care, agreements with transit authorities, non-financial agreements, obligations and payments for reimbursement of the cost of corrective action made pursuant to the Petroleum Storage Tank Environmental Assurance Fund, exchanges of confidential personal information between agencies, rural concentrated employment programs, and other agreements as the committee deems necessary; allow the committee to specify other personal service contracts to exempt as it deems appropriate; exempt from public inspection records as required by the Open Records Act; allow payment for services rendered on personal service contracts and memoranda of agreement upon committee disapproval or objection; specify that price contracts under the jurisdiction of the committee must relate to personal services; increase the aggregate amount under which the committee is obligated to review a contract from $1,000 to $5,000; require the secretary of the Finance and Administration Cabinet to act upon disapproval or objection to a contract or agreement within 10 days; delete the provision that would have allowed LRC access to agency files.
HFA (1, M. Long) - Specify that all personal service contracts and memoranda of agreement shall contain a provision stipulating that payment on such contracts are not authorized for services rendered after the committee disapproves the contract or agreement, unless the decision of the committee is overruled.
HFA (2, M. Long) - Make technical correction.
HFA (3, M. Long) - Exempt from the definition of memorandum of agreement, agreements with educational cooperatives or local school districts pursuant to executive branch budget bill authority for the employment of education administrators and professional educators.
HFA (4, M. Long) - Make technical corrections.
SCS - Retain original provisions except include in the definition of memorandum of agreement, interlocal agreements to which the Commonwealth is a party, agreements by regional cooperative organizations formed by local boards of education or other public educational institutions for the purpose of providing professional educational services to the participating organizations, and agreements with Kentucky Distinguished Educators; increase the aggregate amount under which the committee is obligated to review a personal service contract to $10,000; and make technical changes.
SFA (1, D. Nunnelley) - Include privatization contracts in the definition of memorandum of agreement.
SFA (2, D. Karem) - Exempt agreements between state agencies and universities or colleges from the definition of memorandum of agreement.
Feb 2-introduced in House
Feb 3-to State Government (H)
Feb 20-posted in committee
Mar 3-reported favorably, 1st reading, to Calendar with Committee Substitute
Mar 4-floor amendment (1) filed to Committee Substitute; 2nd reading, to Rules
Mar 5-floor amendments (2) (3) and (4) filed to Committee Substitute
Mar 9-posted for passage in the Regular Orders of the Day for March 10, 1998
Mar 12-3rd reading, passed 98-0 with Committee Substitute and floor amendments (1) and (4)
Mar 13-received in Senate
Mar 16-to State and Local Government (S)
Mar 19-reported favorably, 1st reading, to Calendar with Committee Substitute
Mar 20-floor amendment (1) filed to Committee Substitute; 2nd reading, to Rules
Mar 26-floor amendment (2) filed to Committee Substitute; posted for passage in the Regular Orders of the Day for March 27, 1998
Mar 27-3rd reading, passed 32-0 with Committee Substitute and floor amendments (1) and (2)
Mar 30-received in House; posted for passage for concurrence in Senate amendments
Mar 31-House concurred in Senate Committee Substitute and Senate floor amendments (1) and (2); passed 91-0
Apr 1-enrolled, signed by each presiding officer, delivered to Governor
Apr 10-signed by Governor
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