KRS § 45.770 — KY Code / Title VI / Chapter 45 / Section 45.770
45.770 Contingency account
Status: in_force

45.770 Contingency account.

(1) There is created within the capital construction fund the capital construction and

equipment purchase contingency account. The account shall consist of moneys

appropriated to the account by the General Assembly.

(2) Money in the capital construction and equipment purchase contingency account

may be transferred to the allotment account of a capital construction project,

authorized by the General Assembly under KRS 45.760, subject to the following

conditions and procedures:

(a) Except as provided in paragraphs (b) and (c) of this subsection, during any

biennium, the amount that may be transferred from the capital construction

and equipment purchase contingency account to the allotment account of an

authorized project shall not exceed an amount equal to fifteen percent (15%)

of the estimated cost of the project, for that biennium, approved by the

General Assembly in the manner provided by KRS 45.760.

(b) Subject to paragraph (c) of this subsection, if the cost of an authorized project

exceeds, by more than fifteen percent (15%), its estimated cost, as approved

by the General Assembly, due to an unforeseen decision by a federal or state

court or regulatory agency, moneys in excess of fifteen percent (15%) of the

estimated cost of the project may be transferred from the capital construction

and equipment purchase contingency account to the allotment account of the

project.

(c) The Finance and Administration Cabinet shall, prior to making any transfer

under this subsection, present the proposed transfer to the Capital Projects and

Bond Oversight Committee, at least fourteen (14) days prior to the committee

meeting, for review as provided by KRS 45.800. Presentation of a proposed

transfer under paragraph (b) of this subsection shall include written

certification to the committee from the commissioner of the Department for

Facilities and Support Services, Finance and Administration Cabinet, that the

transfer is necessitated by cost increases resulting from an unforeseen decision

by a federal or state court or regulatory agency.

(3) Money in the capital construction and equipment purchase contingency account

may be transferred to the allotment account of a major item of equipment,

authorized by the General Assembly under KRS 45.760, for expenditure on that

item subject to the following conditions and procedures:

(a) Except as provided in paragraphs (b) and (c) of this subsection, during any

biennium, the amount that may be transferred from the capital construction

and equipment purchase contingency account to the allotment account of an

authorized major item of equipment shall not exceed an amount equal to

fifteen percent (15%) of the estimated cost of the item, for that biennium,

approved by the General Assembly in the manner provided by KRS 45.760.

(b) If the cost of an authorized major item of equipment exceeds, by more than

fifteen percent (15%), its estimated cost, as approved by the General

Assembly, due to an unforeseen decision by a federal or state court or

regulatory agency, moneys in excess of fifteen percent (15%) of the estimated

cost may be transferred from the capital construction and equipment purchase

contingency account to the allotment account of the item.

(c) The Finance and Administration Cabinet shall, prior to making any transfer

under this subsection, present the proposed transfer to the Capital Projects and

Bond Oversight Committee, at least fourteen (14) days prior to the committee

meeting, for review as provided by KRS 45.800. Presentation of a proposed

transfer under paragraph (b) of this subsection shall include written

certification to the committee from the secretary of the Finance and

Administration Cabinet that the transfer is necessitated by cost increases

resulting from an unforeseen decision by a federal or state court or regulatory

agency.

(4) Money in the capital construction and equipment purchase contingency account

may be transferred to a capital project account to be used for nonrecurring moving

expenses of state agencies to address issues of public health and safety or

governmental efficiency, subject to the following conditions and procedures:

(a) The Finance and Administration Cabinet shall, prior to making any transfer

under this subsection, present the proposed transfer to the Capital Projects and

Bond Oversight Committee, at least fourteen (14) days prior to the committee

meeting, for review as provided by KRS 45.800.

(b) Presentation of a proposed transfer shall include written certification to the

committee from the secretary of the Finance and Administration Cabinet that

the moving costs are nonrecurring, and describing the specific benefits,

including but not limited to fiscal and efficiency savings associated with the

proposal.

(c) No transfer shall be used for capital improvements.

(5) No later than thirty (30) days after a project has been accepted by the

Commonwealth of Kentucky and the contracts encumbered against that project

have been closed, moneys constituting the available balance in the project or

equipment account shall be transferred as follows:

(a) If the project was a line item in the budget and not funded with road funds,

then the balance shall be transferred to the capital construction surplus

account.

(b) If the project was a line item in the budget and funded with road funds, then

the balance shall be transferred to the road fund surplus account.

(c) If the project was completed within the biennium in which it was authorized,

and if the project was funded from a major maintenance pool, then the balance

shall be transferred to that major maintenance pool.

(d) If the project was not completed within the biennium in which it was

authorized, without being expressly reauthorized by a succeeding session of

the General Assembly, then the balance shall be transferred to the capital

construction surplus account.