HB 727 — AN ACT relating to school district buildings.

UNOFFICIALCHAPTER COPY126 241 RSCHAPTER 126 ( HB 727/GA727 ) AN ACT relating to school district buildings.

(3) The commission shall assist local school boards meet their education technology needs by distributing state funds appropriated for this purpose and by assisting school boards to design efficient finance plans for the bonding, purchase or lease of Page 1 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA education technology equipment and related software identified in the technology master plan.

(2) No board of education shall participate in any financing of school buildings, school improvements, appurtenances thereto, or furnishing and equipment, including Page 2 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA education technology equipment without:

Any bonds, Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 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.

Page 3 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA (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.

or Page 4 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA (b) A district's officers or employees using a nationally published valuation of property based on the most recent edition of the publication.

CHAPTER 126 3 (4) To send to each board of education at least thirty (30) days before the due date of any debt service or rental payment a notice of the amount of debt service or rental to become due and the date thereof, and to require acknowledgment thereof;

and (5) To receive from the board of education, satisfactory evidence that sufficient funds have been transmitted to the commission or its agent, or will be so transmitted, in the event of the board's failure to pay debt service and administrative costs when due, as provided in the bond or lease, to notify and request that the department withhold from the board of education a sufficient portion of any undisbursed funds then held or set aside or allocated to it, and to request that the department transfer the required amount thereof to the commission for the account of the board of Page 5 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA education.

Are assessed by the liability self-insurance group to cover an accrued Page 6 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA deficit;

Any change in the plans for premium payment, assessments, or Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY dividends shall be filed for prior approval with the commissioner.

(3) Prior to the inception of each group member's self-insurance year, the trustees shall Page 7 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA collect from that member at least twenty-five percent (25%) of the estimated premium for the ensuing year, except that in the case of a self-insured group formed by governmental entities twenty-five percent (25%) of the estimated premium for the ensuing year shall be collected no later than thirty (30) days after the beginning of the self-insured group's self-insurance year.

(6) A trustee, fiscal agent, or service organization shall not utilize an asset of the self-self-insured insured group for a purpose unrelated to workers' compensation.

The trustees shall maintain cash or cash equivalent accounts as may be prudently necessary to pay Page 8 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA expenses without having to liquidate long-term investments.

At the time of purchase, investments in equity securities shall not exceed twenty percent (20%) of the total market value of the investment portfolio of the self-insured group reflected on the most recent quarterly Page 9 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA or annual statement of financial condition on file with the commissioner;

CHAPTER 126 5 2.

(a) Not less than fifty percent (50%) of the total market value of the entire investment portfolio shall be held in cash, cash equivalents, or securities as Page 10 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA described in subsection (7)(a) to (d) of this section;

(12) Except as provided in subsection (11) of this section, all other provisions of the Page 11 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA Kentucky Revised Statutes applying to any financing obtained by a governmental entity shall apply.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (3) "Credit enhancement facilities" means letters of credit;

The use of Page 12 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA "debt charges" for this purpose does not imply that any particular obligations constitute debt within the meaning of the Kentucky Constitution or other laws.

(6) "Floating indebtedness" means the amount by which the total of all expenditures by an issuer in any fiscal year exceeds the total of all funds and receipts of the issuer for that fiscal year which are available to the issuer for the purpose of funding those expenditures, but only to the extent that the governing body of the issuer made good-faith estimates of expenditures and funds and receipts available to fund those expenditures and the short-fallshort- fall in available funds and receipts was due to unforeseeable circumstances or events.

Page 13 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA (13) "Net indebtedness" means the principal amount of outstanding bonds of an issuer as determined in accordance with KRS 66.031.

or (c) Bonds for the payment, or redemption or purchase for cancellation prior to maturity, of which sufficient moneys or investments, in accordance with the applicable legislation or other proceedings or any applicable law, by mandatory sinking fund redemption requirements, or otherwise, have been deposited, and credited in a sinking fund or with a trustee or paying or escrow agent, whether at or prior to their maturity or redemption, and, in the case of bonds to be redeemed prior to their stated maturity, notice of redemption has been given or satisfactory arrangements have been made for giving notice of that CHAPTER 126 7 redemption, or waiver of that notice by or on behalf of the affected bond holders has been filed with the issuer or its agent.

(17) "Public project" means any property, asset, or improvement certified by the governing body, which certification is conclusive, as being for a public purpose and Page 14 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA having an estimated life or period of usefulness of one (1) year or more, and includes, but is not limited to, real estate, buildings, and personal property, equipment, furnishings, and site improvements, and reconstruction, rehabilitation, renovation, installation, improvement, enlargement, and extension of property, assets, or improvements so certified as having an estimated life or period of usefulness of one (1) year or more and is to be used for a public purpose.

(22) "Self-supporting obligations" means obligations issued for the purpose of paying costs of public projects to the extent that receipts of the issuer, other than the proceeds of taxes levied by that issuer, derived from or with respect to that public project or the operation of the public project being financed, or the enterprise, system, or category of public project of which the public project being financed is Page 15 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA part, are estimated by the governing body or a representative of the governing body to be sufficient to pay the current expenses of that operation or of that public project, enterprise, or system and the debt charges payable from those receipts on obligations issued for that public project.

Such a local board shall still submit BG-1 Project Application forms Page 16 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA as appropriate to the Kentucky Department of Education for recordkeeping and data collection.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY Section 9.

Nothing in Sections 8 to 13 of this Act shall be deemed to waive Page 17 of 18 HB072710.100 - 2115 - XXXX 3/12/2024 2:30 PM GA UNOFFICIAL COPY 24 RS HB 727/GA prior approval for the use of federal Elementary and Secondary School Emergency Relief Fund moneys or other funds that federal law requires approval from state officials prior to use.

HB072710.100Signed -by 2115Governor -April XXXX9, 3/12/20242024. 2:30 PM18 of 18 GA