Kentucky Statutes 45A.850 – Selection of underwriter and bond counsel for various agencies — Comanaging underwriters — Review by Capital Projects and Bond Oversight Committee
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(1) (a) Pursuant to KRS § 45A.853 and KRS § 45A.857, one (1) or more underwriters and one (1) or more bond counsel firms shall be chosen for each of the following agencies:
1. Turnpike Authority of Kentucky;
2. Kentucky Housing Corporation;
3. Kentucky Infrastructure Authority;
4. Kentucky Higher Education Student Loan Corporation;
5. Kentucky River Authority;
6. Kentucky Agricultural Finance Corporation;
7. Kentucky Local Correctional Facilities Construction Authority;
8. State Property and Buildings Commission; and
9. Kentucky Public Transportation Infrastructure Authority.
(b) The underwriter and the bond counsel chosen for each agency shall provide their services for all bond issuances over a period of twelve (12) months from their selection. At the conclusion of the twelve (12) month period, the executive director may continue the employment of the underwriter or the bond counsel, on the same terms and conditions, for another twelve (12) month period. If the employment is not continued, the choosing of an underwriter or bond counsel, as appropriate, shall be conducted pursuant to KRS § 45A.853 and KRS § 45A.857.
(2) (a) Pursuant to KRS § 45A.853 and KRS § 45A.857, one (1) or more underwriters and one (1) or more bond counsel firms shall be chosen to provide their services for all of the following agencies:
1. School Facilities Construction Commission;
2. Murray State University;
3. Western Kentucky University;
4. University of Louisville when it declines to exercise the authority granted under KRS § 164A.585(1) and 164A.605;
5. Northern Kentucky University;
6. Kentucky State University;
7. University of Kentucky when it declines to exercise the authority granted under KRS § 164A.585(1) and 164A.605;
8. Morehead State University;
9. Eastern Kentucky University; and
10. Kentucky Community and Technical College System.
(b) The underwriter and the bond counsel chosen for all of the agencies shall provide their services for all bond issuances of the agencies for a period of
twelve (12) months from the underwriter’s and the bond counsel’s selection. At the conclusion of the twelve (12) month period, the executive director may continue the employment of the underwriter or the bond counsel, on the same terms and conditions, for another twelve (12) month period. If the employment is not continued, the choosing of an underwriter or bond counsel, as appropriate, shall be conducted pursuant to KRS § 45A.853 and KRS § 45A.857.
(3) Pursuant to KRS § 45A.853 and 45A.857, one (1) or more financial advisors, managing underwriters, and remarketing agents and one (1) bond counsel shall be chosen for the Kentucky Asset/Liability Commission. The commission shall enter into agreements with the individuals or entities for a maximum contract period of twenty-four (24) months. At the conclusion of the contract period, the executive director may continue the employment of the financial advisor, underwriter, remarketing agent, or bond counsel for another contract period, not to exceed twenty-four (24) months. If the employment is not continued or terminated, the selection of a financial advisor, underwriter, remarketing agent, or bond counsel, as appropriate, shall be conducted pursuant to KRS § 45A.853 and KRS § 45A.857.
(4) The office may select national comanaging underwriters and Kentucky comanaging underwriters who shall provide national and local marketing expertise for bond issuances. The executive director shall recommend to the secretary of the Finance and Administration Cabinet the number of national and Kentucky comanaging underwriters, if any, to be utilized on each bond issuance. The executive director shall consider the following issues when making the recommendations:
(a) Principal amount of bonds being issued; (b) Structure of the bond issue; and
(c) Composition of expected buyers of the bonds.
Kentucky comanaging underwriters shall be selected pursuant to a request for proposals. National comanaging underwriters shall be selected pursuant to an administrative regulation promulgated by the office. For specific bond transactions under subsection (1) of this section, the executive director may recommend to the secretary of the Finance and Administration Cabinet as a managing underwriter the Kentucky underwriter which received the highest score for its proposal pursuant to this section. Comanaging underwriters selected pursuant to this subsection shall provide their services to a bond issuing agency as needed over the appropriate period of time stated in this section.
(5) If the executive director recommends to the secretary of the Finance and Administration Cabinet a Kentucky underwriter as provided by subsection (4) of this section, and the secretary orders that procurement proceed pursuant to KRS
45A.857, the requirements, review, and recommendation of the Capital Projects and
Bond Oversight Committee as provided by KRS § 45.810 shall apply.
Effective: June 24, 2015
History: Amended 2015 Ky. Acts ch. 81, sec. 1, effective June 24, 2015. — Amended
2012 Ky. Acts ch. 110, sec. 17, effective April 11, 2012. — Amended 1998 Ky. Acts ch. 92, sec. 2, effective July 15, 1998. — Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 35, effective May 30, 1997; and ch. 4, sec. 13, effective May 30, 1997. —
Amended 1996 Ky. Acts ch. 139, sec. 2, effective July 15, 1996. — Created 1994 Ky. Acts ch. 409, sec. 4, effective July 15, 1994.
1. Turnpike Authority of Kentucky;
Terms Used In Kentucky Statutes 45A.850
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Month: means calendar month. See Kentucky Statutes 446.010
- Oversight: Committee review of the activities of a Federal agency or program.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
2. Kentucky Housing Corporation;
3. Kentucky Infrastructure Authority;
4. Kentucky Higher Education Student Loan Corporation;
5. Kentucky River Authority;
6. Kentucky Agricultural Finance Corporation;
7. Kentucky Local Correctional Facilities Construction Authority;
8. State Property and Buildings Commission; and
9. Kentucky Public Transportation Infrastructure Authority.
(b) The underwriter and the bond counsel chosen for each agency shall provide their services for all bond issuances over a period of twelve (12) months from their selection. At the conclusion of the twelve (12) month period, the executive director may continue the employment of the underwriter or the bond counsel, on the same terms and conditions, for another twelve (12) month period. If the employment is not continued, the choosing of an underwriter or bond counsel, as appropriate, shall be conducted pursuant to KRS § 45A.853 and KRS § 45A.857.
(2) (a) Pursuant to KRS § 45A.853 and KRS § 45A.857, one (1) or more underwriters and one (1) or more bond counsel firms shall be chosen to provide their services for all of the following agencies:
1. School Facilities Construction Commission;
2. Murray State University;
3. Western Kentucky University;
4. University of Louisville when it declines to exercise the authority granted under KRS § 164A.585(1) and 164A.605;
5. Northern Kentucky University;
6. Kentucky State University;
7. University of Kentucky when it declines to exercise the authority granted under KRS § 164A.585(1) and 164A.605;
8. Morehead State University;
9. Eastern Kentucky University; and
10. Kentucky Community and Technical College System.
(b) The underwriter and the bond counsel chosen for all of the agencies shall provide their services for all bond issuances of the agencies for a period of
twelve (12) months from the underwriter’s and the bond counsel’s selection. At the conclusion of the twelve (12) month period, the executive director may continue the employment of the underwriter or the bond counsel, on the same terms and conditions, for another twelve (12) month period. If the employment is not continued, the choosing of an underwriter or bond counsel, as appropriate, shall be conducted pursuant to KRS § 45A.853 and KRS § 45A.857.
(3) Pursuant to KRS § 45A.853 and 45A.857, one (1) or more financial advisors, managing underwriters, and remarketing agents and one (1) bond counsel shall be chosen for the Kentucky Asset/Liability Commission. The commission shall enter into agreements with the individuals or entities for a maximum contract period of twenty-four (24) months. At the conclusion of the contract period, the executive director may continue the employment of the financial advisor, underwriter, remarketing agent, or bond counsel for another contract period, not to exceed twenty-four (24) months. If the employment is not continued or terminated, the selection of a financial advisor, underwriter, remarketing agent, or bond counsel, as appropriate, shall be conducted pursuant to KRS § 45A.853 and KRS § 45A.857.
(4) The office may select national comanaging underwriters and Kentucky comanaging underwriters who shall provide national and local marketing expertise for bond issuances. The executive director shall recommend to the secretary of the Finance and Administration Cabinet the number of national and Kentucky comanaging underwriters, if any, to be utilized on each bond issuance. The executive director shall consider the following issues when making the recommendations:
(a) Principal amount of bonds being issued; (b) Structure of the bond issue; and
(c) Composition of expected buyers of the bonds.
Kentucky comanaging underwriters shall be selected pursuant to a request for proposals. National comanaging underwriters shall be selected pursuant to an administrative regulation promulgated by the office. For specific bond transactions under subsection (1) of this section, the executive director may recommend to the secretary of the Finance and Administration Cabinet as a managing underwriter the Kentucky underwriter which received the highest score for its proposal pursuant to this section. Comanaging underwriters selected pursuant to this subsection shall provide their services to a bond issuing agency as needed over the appropriate period of time stated in this section.
(5) If the executive director recommends to the secretary of the Finance and Administration Cabinet a Kentucky underwriter as provided by subsection (4) of this section, and the secretary orders that procurement proceed pursuant to KRS
45A.857, the requirements, review, and recommendation of the Capital Projects and
Bond Oversight Committee as provided by KRS § 45.810 shall apply.
Effective: June 24, 2015
History: Amended 2015 Ky. Acts ch. 81, sec. 1, effective June 24, 2015. — Amended
2012 Ky. Acts ch. 110, sec. 17, effective April 11, 2012. — Amended 1998 Ky. Acts ch. 92, sec. 2, effective July 15, 1998. — Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 35, effective May 30, 1997; and ch. 4, sec. 13, effective May 30, 1997. —
Amended 1996 Ky. Acts ch. 139, sec. 2, effective July 15, 1996. — Created 1994 Ky. Acts ch. 409, sec. 4, effective July 15, 1994.