KRS § 160.160 — KY Code / Title XIII / Chapter 160 / Section 160.160
160.160 Boards of education -- Powers and procedures -Approval of Department of Education required for mortgages and leases -- Authorization for general obligation bonds -- Rental and debt service payments -- Funds intercept -- Sale of real or personal property by board
Status: in_force

160.160 Boards of education -- Powers and procedures -Approval of Department

of Education required for mortgages and leases -- Authorization for general

obligation bonds -- Rental and debt service payments -- Funds intercept -- Sale

of real or personal property by board.

(1) Each school district shall be under the management and control of a board of

education consisting of five (5) members, except in counties containing a city of the

first class wherein a merger pursuant to KRS 160.041 shall have been accomplished

which shall have seven (7) members elected from the divisions and in the manner

prescribed by KRS 160.210(5), to be known as the "Board of Education of ....,

Kentucky." Each board of education shall be a body politic and corporate with

perpetual succession. It may sue and be sued; make contracts; expend funds

necessary for liability insurance premiums and for the defense of any civil action

brought against an individual board member in his official or individual capacity, or

both, on account of an act made in the scope and course of his performance of legal

duties as a board member; purchase, receive, hold, and sell property; issue its bonds

to build and construct improvements; and do all things necessary to accomplish the

purposes for which it is created. Each board of education shall elect a chairman and

vice chairman from its membership in a manner and for a term prescribed by the

board not to exceed two (2) years.

(2) No board of education shall participate in any financing of school buildings, school

improvements, appurtenances thereto, or furnishing and equipment, including

education technology equipment without:

(a) First establishing the cost of the project in advance of financing, based on the

receipt of advertised, public, and competitive bids for such project, in

accordance with KRS Chapter 424; and

(b) Establishing the cost of financing in advance of the sale of any bonds,

certificates of participation in any leases, or other evidences of financial

commitments issued by or on behalf of such board. Any bonds, leases,

participations, or other financial arrangements shall not involve a final

commitment of the board until the purchaser or lender involved shall have

been determined by public advertising in accordance with KRS Chapter 424.

(3) No board of education shall make a mortgage, lien, or other encumbrance upon any

school building owned by the board, or transfer title to any such school building as

part of any financing arrangement, without the specific approval of the Department

of Education, and without the transaction being entered into pursuant to a detailed

plan or procedure specifically authorized by Kentucky statute.

(4) Without the approval of the Department of Education, no board may lease, as

lessee, a building or public facility that has been or is to be financed at the request

of the board or on its behalf through the issuance of bonds by another public body

or by a nonprofit corporation serving as an agency and instrumentality of the board,

or by a leasing corporation. Any lease, participation, or other financial arrangement

shall not involve a final commitment of the board unless and until the purchaser or

lender involved in same shall have been determined by public advertising in

accordance with KRS Chapter 424. No transaction shall be entered into by the

board except upon the basis of public advertising and competitive bidding in

accordance with KRS Chapter 424.

(5) A school district may issue general obligation bonds in accordance with KRS

Chapter 66.

(6) Rental payments due by a board under a lease approved by the Department of

Education in accordance with subsection (4) of this section, and debt service

payments under a general obligation bond issued in accordance with this section,

shall be due and payable not less than ten (10) days prior to the interest due date for

the bonds, notes, or other debt obligations issued to finance the building or public

facility. If a board fails to make a rental payment when due under a lease or a debt

service payment when due for a general obligation bond issue, upon notification to

the Department of Education by the paying agent, bond registrar, or trustee for the

bonds not less than three (3) days prior to the interest due date, the Department of

Education shall withhold or intercept any funds then due the board to the extent of

the amount of the required payment on the bonds and remit the amount to the

paying agent, bond registrar, or trustee as appropriate. Thereafter, the Department

of Education shall resolve the matter with the board and adjust remittances to the

board to the extent of the amount paid by the Department of Education on the

board's behalf.

(7) Bonds, notes, or leases negotiated to provide education technology shall not be sold

for longer than seven (7) years or the useful life of the equipment as established by

the state technology master plan, whichever is less.

(8) Notwithstanding any requirements of public advertising, competitive bidding, or

approval by the Department of Education, or any administrative regulation

promulgated pursuant to KRS 156.160(1)(o), a local board may authorize the

transfer or sale of the district's real or personal property to another governmental or

quasi-governmental agency in exchange for money or a similar type of property that

equals or exceeds the fair market value of the district property as determined by an

independent appraisal conducted by:

(a) An individual or organization not affiliated with the district or its officers or

employees, using a generally accepted national or professional standard; or

(b) A district's officers or employees using a nationally published valuation of

property based on the most recent edition of the publication.