State Survey of P3 Authorizing Statutes: Kentucky

HB 309 ‐ Enacted 04/08/2016 as Act No. 67 ‐ Creates a new section under Kentucky Revised Statutes Chapter 65

Summary

Authorizes local governments to enter into public‐private partnership agreements for capital projects.

Excerpt:

(5) All public‐private partnership agreements executed by a local government or any of its agencies under this section shall be approved by the legislative body of the local government at a public meeting, and shall include at a minimum the following provisions:

…

(b) Require the private partner to provide or cause to be provided performance and payment bonds on the design and construction portion of the agreement as required under KRS 45A.435 and maintenance bonds, warranties, guarantees, and letters of credit in connection with the private partner’s other activities under the agreement, in the forms and amounts satisfactory to the local government and in amounts necessary to provide adequate protection to the local government;

KRS §§ 154.15-010 to 154.15-030

Summary

The law establishes the Kentucky Communications Network Authority to oversee and maintain Kentucky Wired, an open-access broadband network. The Authority is charged with managing a master agreement that establishes a P3 for designing, engineering, building, operating, maintaining, and upgrading the network.

No Surety Bond Language

KRS § 45A.030; KRS § 45A.077; KRS § 65.028

Summary

The law authorizes the state and local governments to enter into P3s for capital projects or for the procurement of services. The law also authorizes the state to enter into P3s and to adopt regulations to set forth the requirements for the project, which must include the parameters for the P3 agreement. State capital projects that exceed $25 million using the P3 method must be approved by the legislature.