SCHOOL PROPERTY AND BUILDINGS

KRS tit. XIII, ch. 162

in effect

KRS 162.010 Title to school property

162.010. Title to school property The title to all property owned by a school district is vested in the Commonwealth for the benefit of the district board of education. In the acquisition of land for school purposes, whether by purchase or condemnation, or otherwise, the title obtained shall be in fee simple, except that title to land received from the federal government or any agency thereof can be received in other than fee simple with the approval of the Attorney General of the Commonwealth. Any reversionary interest in any land held by boards of education on June 14, 1934, shall not deprive such boards of the ownership of the buildings or other improvements thereon. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 548, effective July 13, 1990. -- Amended 1958 Ky. Acts ch. 136, sec. 1. -- Amended 1954 Ky. Acts ch. 20, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4399-19.

KRS 162.020 Transfer of property from one district to another -- Title not affected -- District may own school in another district

162.020. Transfer of property from one district to another -- Title not affected -- District may own school in another district (1) The title to school property in territory transferred from one (1) school district to another shall not be affected by the transfer. In case of the sale of such property the board of education to which the property belongs may allow a credit on the sale price of the property in proportion to the ratio which the school population of the transferred territory is to the total school population of the district from which the territory was transferred before the transfer was made. (2) A board of education owning and operating a school plant in another district on June 14, 1934, may continue to own and operate the plant, and a county board of education may establish and maintain a school in an independent school district. Any independent school district may purchase school sites and establish and maintain schools outside the limits of the independent district, but independent districts containing cities of the first class or designated cities shall not purchase school sites or establish or maintain schools outside the county in which the independent district is located. (3) As used in this section, "designated city" means a city classified as a city of the second class as of January 1, 2014, under the city classification system in effect prior to January 1, 2015. The Department of Education shall, on or before January 1, 2015, create an official registry listing the cities that qualify as a "designated city" under this section and shall publish that registry on its Web site. Effective: January 1, 2015 History: Amended 2014 Ky. Acts ch. 92, sec. 227, effective January 1, 2015. -- Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 549, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4399-5.

KRS 162.030 Condemnation of property for school purposes

162.030. Condemnation of property for school purposes Each board of education may, when unable to make a contract satisfactory to the board with the owner for the purchase of real estate to be used for school purposes, initiate condemnation proceedings pursuant to the Eminent Domain Act of Kentucky (KRS 416.540 to 416.670), and the title to land so obtained shall be vested in fee simple. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 476, Pt. IV, sec. 250, effective July 13, 1990. -- Amended 1976 Ky. Acts ch. 140, sec. 67. -- Amended 1954 Ky. Acts ch. 20, sec. 2. - - Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4399-21.

KRS 162.040 Escheated property

162.040. Escheated property So much property in each school district as escheats to the state, and is not required by the provisions of KRS Chapter 393 to be disposed of in some other manner, shall vest in the state for the use and benefit of the public schools in the district. The board of education of the district may, in the name of the state and for the use and benefit of the schools of the district, by its chairman or other officer designated by it, enter upon and take possession of the property, or sue for and recover the property by action at law or in equity. The board may sell and convey any of the property by warranty deed or otherwise. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 550, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4399-56.

KRS 162.050 Use of schoolhouse by public assembly

162.050. Use of schoolhouse by public assembly The board of education of any school district may permit the use of the schoolhouse, while school is not in session, by any lawful public assembly of educational, religious, agricultural, political, civic, or social bodies under rules and regulations which the board deems proper. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 551, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4399-53.

KRS 162.055 Use of school property by public for recreational, sporting, academic, literary, artistic, or community uses -- Limited civil immunity

162.055. Use of school property by public for recreational, sporting, academic, literary, artistic, or community uses -- Limited civil immunity (1) As used in this section: (a) "Nonschool hours" refers to those times occurring during the school week which precede or follow regular classroom instruction and also includes weekends, holidays, and vacation breaks; (b) "Public members of the community" includes, in addition to ordinary community members, both students who are not involved in a school- sanctioned curricular or extracurricular activity during nonschool hours and school staff when not working as employees of the school; (c) "Recreation" includes any indoor or outdoor game or physical activity, either organized or unorganized, undertaken for exercise or sport; (d) "School property" includes all indoor or outdoor school structures, facilities, and land, whether owned, rented, or leased by the school or school district; and (e) "Sport" means an activity requiring physical exertion and skill, and which by its nature and organization is competitive, includes a set of rules, and is generally accepted in the community as a sport. (2) A local school board may authorize the use of school property by public members of the community during nonschool hours for the purpose of recreation, sport, academic, literary, artistic, or community uses pursuant to policies adopted by the local school board. (3) A school district and its board members, officers, and employees shall retain the same immunities for any claim for loss or injury arising from use of indoor or outdoor school property or facilities during nonschool hours allowed under this section as would otherwise apply or be available had the use occurred during school hours or for school-related activities. (4) Nothing in this section shall be construed to: (a) Create a duty of care or ground of liability for injury to persons or property; (b) Relieve any person using the school property for recreation from any obligation which he or she may have in the absence of this section to exercise care in his or her use of the school property and his or her activities thereon, or from the legal consequences of failure to employ such care; (c) Ripen into a claim for adverse possession, absent a claim of title or legal right; or (d) Limit the liability protections available under KRS 411.190 or other law. Effective: July 12, 2012 History: Created 2012 Ky. Acts ch. 133, sec. 1, effective July 12, 2012.

KRS 162.060 Plans for school buildings to be approved

162.060. Plans for school buildings to be approved The chief state school officer shall be furnished a copy of all plans and specifications for new public school buildings contemplated by boards of education and for all additions to or alterations of old buildings. He shall examine or cause to be examined all such plans and specifications and shall approve or disapprove them in accordance with the rules and regulations of the Kentucky Board of Education. Plan reviews for conformance with the Uniform State Building Code shall be conducted only by the Department of Housing, Buildings and Construction. No board of education may award a contract for the erection of a new building or contract for an addition to or alteration of an old building until the plan has been approved by the chief state school officer. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 211, effective July 15, 2010. -- Amended 1996 Ky. Acts ch. 362, sec. 6, effective July 15, 1996. -- Amended 1990 Ky. Acts ch. 476, Pt. IV, sec. 251, effective July 13, 1990. -- Amended 1978 Ky. Acts ch. 117, sec. 17, effective February 28, 1980; and ch. 155, sec. 82, effective June 17, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4384-23.

KRS 162.062 Repealed, 2022

162.062. Repealed, 2022 Catchline at repeal: Plans for new public school buildings required to provide sufficient water bottle filling stations and drinking fountains -- Specifications for design and maintenance of water bottle filling stations and drinking fountains. History: Repealed 2022 Ky. Acts ch. 66, sec. 3, effective July 14, 2022. -- Amended 2020 Ky. Acts ch. 22, sec. 1, effective March 17, 2020. -- Created 2019 Ky. Acts ch. 197, sec. 6, effective June 27, 2019.

KRS 162.065 Administrative regulations for use by local school boards when constructing schools using construction managers -- Items considered equal to specifications may be furnished

162.065. Administrative regulations for use by local school boards when constructing schools using construction managers -- Items considered equal to specifications may be furnished The State Board of Education shall promulgate administrative regulations for use by local school boards when constructing school buildings using construction managers. A construction manager is an experienced and qualified construction contracting organization that is paid a fee for its professional management and supervision services. The regulations shall include, but not be limited to: (1) A standard "Request for Proposal" form, including appropriate criteria for use by local school boards to ensure only qualified construction managers are considered: (a) A list of successfully completed projects or a demonstrated capability to perform projects of a similar type; (b) A descriptive detail of projects showing the experience and the ability to perform budget estimating, value engineering, and scheduling; and (c) A list of experienced and qualified personnel with a track record of achieved quality and the capability to provide bidder solicitation; (2) Adequate public notice of the invitation for proposals shall be given a sufficient time prior to the date set for the opening of proposals; (3) A requirement for bids, when requested by a construction manager, be submitted to the architect or owner and opened in public; (4) A requirement that all bids for school construction projects be advertised in newspapers with the largest local circulation; (5) A sample fee schedule for construction manager services shall be developed by recommendation of a diversified committee consisting of Department of Education personnel, architects, and construction managers for the guidance of local school boards; (6) A requirement that established qualifications-based selection procedures be implemented by local boards when selecting firms to provide architectural and engineering services; and (7) A requirement that specifications in every invitation for bids or request for proposals shall provide that an item equal to that named or described in the specifications may be furnished. The specifications may identify a sole brand in cases where, in the written opinion of the chief procurement officer, documented unique and valid conditions require compatibility, continuity, or conformity with established standards. An item shall be considered equal to the item named or described if, in the opinion of the local board and the design professional responsible for the specifications: (a) It is at least equal in quality, durability, strength, design, and other criteria deemed appropriate; (b) It will perform at least equally the function imposed by the general design for the public work being contracted for or the material being purchased; and (c) It conforms substantially to the detailed requirements for the item in the specifications. Effective: July 15, 2008 History: Amended 2008 Ky. Acts ch. 47, sec. 5, effective July 15, 2008. -- Created 1992 Ky. Acts ch. 379, sec. 1, effective July 14, 1992.

KRS 162.066 Restriction on award of contracts by construction manager

162.066. Restriction on award of contracts by construction manager When a construction manager is utilized in construction, maintenance, repairs, or renovation or expansion of school facilities the construction manager shall not award construction contracts to any company which the manager owns or in which the manager has a financial interest if less than two (2) bids are accepted. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 379, sec. 2, effective July 14, 1992.

KRS 162.067 Application of KRS 162.065 and 162.066

162.067. Application of KRS 162.065 and 162.066 KRS 162.065 and 162.066 shall apply to all construction of new school facilities, maintenance, and repair of existing school facilities, renovation of existing school facilities, or expansion of existing school facilities. Effective: July 14, 1992 History: Created 1992 Ky. Acts ch. 379, sec. 3, effective July 14, 1992.

KRS 162.070 Contracts for buildings, improvements, and materials to be let on competitive bidding -- When advertisements not required

162.070. Contracts for buildings, improvements, and materials to be let on competitive bidding -- When advertisements not required The contracts for the erection of new school buildings, additions and repairs to old buildings, except additions or repairs not exceeding seven thousand five hundred dollars ($7,500), shall be made by the board of education with the lowest and best responsible bidder complying with the terms of the letting, after advertisement for competitive bids pursuant to KRS Chapter 424, but the board may reject any or all bids. All necessary specifications and drawings shall be prepared for all such work. The board shall advertise for bids on all supplies and equipment that it desires to purchase, except where the amount of the purchase does not exceed seven thousand five hundred dollars ($7,500), and shall accept the bid of the lowest and best bidder taking into consideration the price and the reciprocal preference for resident bidders under KRS 45A.494, but the board may reject any and all bids. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 162, sec. 20, effective July 15, 2010. -- Amended 1990 Ky. Acts ch. 476, Pt. IV, sec. 252, effective July 13, 1990. -- Reenacted 1980 Ky. Acts ch. 250, sec. 1, effective April 9, 1980. History for former KRS 162.070: Repealed 1978 Ky. Acts ch. 110, sec. 106, effective January 1, 1980. -- Amended 1978 Ky. Acts ch. 58, sec. 1, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 185, sec. 1. -- Amended 1966 Ky. Acts ch. 239, sec. 148. -- Amended 1954 Ky. Acts ch. 172, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4399-48.

KRS 162.075 Compliance with code not necessary on purchases from federal government

162.075. Compliance with code not necessary on purchases from federal government The provisions of KRS Chapter 45A and KRS 162.070 shall not apply to purchases made by the boards of education within the Commonwealth of Kentucky from the United States of America, or any agency thereof. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 552, effective July 13, 1990. -- Amended 1980 Ky. Acts ch. 250, sec. 18, effective April 9, 1980. -- Amended 1978 Ky. Acts ch. 110, sec. 104, effective January 1, 1980. -- Created 1946 Ky. Acts ch. 187, sec. 1.

KRS 162.080 Bond issues for school sites and buildings -- Authorization -- Election

162.080. Bond issues for school sites and buildings -- Authorization -- Election (1) Whenever a board of education deems it necessary for the proper accommodation of the schools of its district to enlarge sites for school buildings, to purchase new sites, which in the case of independent districts may be not more than two (2) miles without the boundary lines of the district, to improve, remodel, or restore school buildings, to erect or equip new school buildings, or for any or all of these purposes, and the annual funds raised from other sources are not sufficient to accomplish the purpose, the board shall make a careful estimate of the amount of money required for the purpose and shall determine the amount of money for which bonds shall be issued and the purpose to which the proceeds shall be applied. Upon request of the board of education of any district, the county clerk shall submit to the qualified voters of the district, the question as to whether bonds shall be issued for the purpose. The question shall be so framed that the voter may by his vote answer "for" or "against." (2) The request shall be accompanied by an ordinance or resolution which shall fix the time the bonds shall run and, if a serial issue, the amount to mature at each time. It shall limit the rate of interest to be permitted on the bonds, which shall not exceed the amount permitted by law, and the total amount of bonds to be issued, and shall provide for the levy of a tax to pay the interest and to create a sinking fund to retire them at their maturity. (3) The election shall be held not less than fifteen (15) nor more than thirty (30) days from the time the request of the board of education is filed with the county clerk, and reasonable notice of the election shall be given. The election shall be conducted and carried out in the school district in all respects as required by the general election laws, and shall be held by the same officers as required by the general election laws. The expense of the election shall be borne by the school district. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 48, sec. 86, effective July 13, 1990; and ch. 476, Pt. V, sec. 553, effective July 13, 1990. -- Amended 1976 Ky. Acts ch. 127, sec. 20. - - Amended 1962 Ky. Acts ch. 180, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4399-47. Legislative Research Commission Note (7/13/90). The Act amending this section prevails over the repeal and reenactment in House Bill 940, Acts Ch. 476, pursuant to Section 653(1) of Acts Ch. 476.

KRS 162.085 Issuance of bonds sold directly to banks, private investors, and financial institutions -- Authorization

162.085. Issuance of bonds sold directly to banks, private investors, and financial institutions -- Authorization For the purpose of defraying the cost of constructing or acquiring any school buildings and appurtenances for common school purposes, any school district may issue a bond sold directly to banks, private investors, and financial institutions. Effective: July 15, 2024 History: Created 2024 Ky. Acts ch. 126, sec. 1, effective July 15, 2024.

KRS 162.090 Issuance and sale of bonds -- Proceeds -- Tax to pay

162.090. Issuance and sale of bonds -- Proceeds -- Tax to pay (1) If two-thirds (2/3) of those voting on the question vote in favor of the proposition, the bonds shall be issued. The bonds shall be designated "school improvement bonds." They shall be placed under the control of the board of education, and the board shall determine when, at what price and how the bonds shall be sold, the date, number of bonds, denomination, whether coupon or registered, the rate of interest, the frequency and place of payment of principal and interest, and other details as desired, embodied in the bonds or in the request providing for their issue. The board shall at once adopt a resolution in conformity therewith. The bonds shall be signed by the chairman and secretary of the board of education. As the bonds are sold, their proceeds shall be placed to the credit of the board of education in a depository designated by the board of education, and shall be kept in a separate account. The depository shall be required to execute proper bond covering the funds. (2) The board of education of the district shall, in addition to the levy made for the maintenance of schools, levy annually a tax sufficient to raise a sum for the payment of the interest and to create a sinking fund for the payment of the bonds at maturity. The bonds shall be a charge upon the school district. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 554, effective July 13, 1990. -- Amended 1976 Ky. Acts ch. 127, sec. 21. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4399-47.

KRS 162.100 Limitation on amount of bond issue -- Effect of bonds issued under former laws

162.100. Limitation on amount of bond issue -- Effect of bonds issued under former laws (1) The bond issue of any district shall not exceed the limits provided in the Constitution, such limitation to be estimated upon the assessment next before the last assessment previous to the incurring of the indebtedness. (2) All of the bonds voted by the various types of school districts and subdistricts prior to June 14, 1934, shall be retired and the interest paid thereon in accordance with the laws under which they were voted, and nothing in KRS 162.080 to 162.100 shall in any way impair any of such bond obligations or the interest thereon. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 555, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4399-47.

KRS 162.110 Repealed, 1966

162.110. Repealed, 1966 Catchline at repeal: Bonds of subdistricts. History: Repealed 1966 Ky. Acts ch. 255, sec. 283. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4399-13.

KRS 162.120 Independent district in city may convey property to city to provide buildings

162.120. Independent district in city may convey property to city to provide buildings To provide buildings for school purposes, boards of education of school districts embracing a city of any class may convey to the city a fee simple title with covenant of general warranty to a site now held or hereafter acquired by the boards of education. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 476, sec. 253, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-1.

KRS 162.130 City to contract for erection of building

162.130. City to contract for erection of building Every city to which a site for a building has been conveyed, as provided in KRS 162.120, shall enter into a contract or contracts with some person for the erection on the site of a building with the necessary appurtenances, according to plans and specifications adopted by the city and approved by the board of education and the chief state school officer. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 476, sec. 254, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-2.

KRS 162.140 Lease of building by board of education

162.140. Lease of building by board of education Immediately upon the approval of the plans and specifications as provided in KRS 162.130, the board of education shall offer to lease the building for a term of one (1) year from the time the building is completed and ready for occupancy. The lease by its terms shall give the lessee the right and option to extend the term of the lease from year to year, for periods of one (1) year, until the original term of the lease has been extended for a total number of years, acceptable to the city, not exceeding thirty (30) years, at a rental which, if paid for the original term and for each of the full number of years for which the term is extended, will amortize the total cost of the erection of the building and appurtenances, provide an adequate maintenance fund and, in addition thereto, a sum sufficient to pay the cost of insuring the building against loss or damage by fire and windstorm or other calamity in such sum as may be agreed by the parties thereto. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 556, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-3.

KRS 162.150 City may erect school buildings

162.150. City may erect school buildings Any city may establish and erect school buildings and necessary appurtenances within the corporate limits under the provisions of KRS 162.160 to 162.280, for the purpose of supplying the board of education of the independent district embracing the city with adequate buildings necessary to carry out its duties and powers. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 557, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-5.

KRS 162.160 Plans and specifications for buildings -- Boards of education must offer to lease buildings before construction contract is made

162.160. Plans and specifications for buildings -- Boards of education must offer to lease buildings before construction contract is made (1) When any city desires to construct a school building, under the provisions of KRS 162.150, the governing body of the city shall, by ordinance, cause plans and specifications for the building to be duly made and filed in the office of the city clerk. The plans and specifications shall give a full description of the building to be constructed, the details thereof and the manner of construction. The plans and specifications shall be prepared by an architect selected by the city and approved by the board of education of the school district, and shall be submitted to the board of education of the school district and to the chief state school officer for approval. (2) If the plans and specifications are approved, and if the board of education of the school district offers to lease the building under a lease of the kind provided in KRS 162.140, the city governing body shall cause the city clerk to advertise for bids, and thereafter the city governing body, through the mayor, may contract for the construction of the building. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 476, Pt. IV, sec. 255, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 23, sec. 11, effective July 15, 1986. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-12.

KRS 162.170 Financing construction of buildings

162.170. Financing construction of buildings For the purpose of defraying the cost of constructing or acquiring any school buildings and appurtenances for common school purposes under the provisions of KRS 162.150, any city may borrow money and issue negotiable revenue bonds. No bonds for common school purposes shall be issued until the conditions of KRS 162.160 have been complied with, and until authorized by an ordinance specifying the proposed undertaking, the amount of bonds to be issued, and the maximum rate of interest the bonds are to bear. The ordinance shall further provide that the buildings and appurtenant facilities are to be constructed or acquired under the provisions of KRS 162.150 to 162.280. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 274, sec. 34, effective July 15, 1996. -- Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 558, effective July 13, 1990. -- Amended 1978 Ky. Acts ch. 155, sec. 82, effective June 17, 1978. -- Amended 1970 Ky. Acts ch. 137, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4421-6, 4421-12.

KRS 162.180 Bonds -- Interest on -- When payable -- How sold

162.180. Bonds -- Interest on -- When payable -- How sold All bonds issued under the provisions of KRS 162.170 for common school purposes may bear interest at a rate or rates or method of determining rates, payable at least annually, and shall be executed in a manner and be payable at times, not exceeding thirty (30) years from the date of issue, and at a place as the governing body of the city determines. The bonds shall be sold in a manner and upon terms as the governing body of the city deems for the best interest of the city. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 274, sec. 35, effective July 15, 1996. -- Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 559, effective July 13, 1990. -- Amended 1978 Ky. Acts ch. 155, sec. 82, effective June 17, 1978. -- Amended 1970 Ky. Acts ch. 137, sec. 2. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4421-7, 4421-8.

KRS 162.185 Applicability of KRS 162.170 and 162.180

162.185. Applicability of KRS 162.170 and 162.180 Nothing contained in KRS 162.170 or 162.180 is intended to or shall be construed to make interest rates applicable to revenue bonds issued by the governing bodies of state institutions of higher learning under KRS 162.340 to 162.380, inclusive, subject to regulation, establishment, limitation, or approval by the Kentucky Board of Education. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 362, sec. 6, effective July 15, 1996. -- Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 560, effective July 13, 1990. -- Amended 1978 Ky. Acts ch. 155, sec. 82, effective June 17, 1978. -- Created 1970 Ky. Acts ch. 137, sec. 3.

KRS 162.190 Bonds negotiable -- Tax-exempt -- Signatures -- Not city debt

162.190. Bonds negotiable -- Tax-exempt -- Signatures -- Not city debt All bonds issued under the provisions of KRS 162.170 shall have all of the qualities of negotiable instruments, and shall not be subject to taxation. If any of the officers whose signatures appear on the bonds or coupons cease to be such officers before delivery of the bonds, the signatures shall nevertheless be valid for all purposes the same as if the officers had remained in office until delivery. The bonds shall be payable solely from the revenue derived from the school building as provided in KRS 162.230, and shall not constitute an indebtedness of the city within the meaning of the constitutional provisions or limitations. It shall be plainly stated on the face of each bond that it was issued under the provisions of KRS 162.150 to 162.280 and that it does not constitute an indebtedness of the city. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 561, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-8.

KRS 162.200 Use of funds -- Lien on building

162.200. Use of funds -- Lien on building All money received from any bonds issued pursuant to KRS 162.170 shall be used solely for the establishment or erection of the school building and necessary appurtenances, except that the money may be used also to advance the payment of the interest on bonds during the first three (3) years following the date of the bonds. There shall be a statutory mortgage lien upon the school building and appurtenances in favor of the holders of the bonds and coupons. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 562, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-9.

KRS 162.210 Rights of bondholders to enforce lien

162.210. Rights of bondholders to enforce lien The school building and appurtenances shall remain subject to the statutory lien provided by KRS 162.200 until the payment in full of the principal and interest of the bonds. Any holder of the bonds or of any of the coupons may, either at law or in equity, protect and enforce the lien, and may by action enforce and compel performance of all duties required by KRS 162.150 to 162.280, including the making and collecting of sufficient rents, the segregation of the income and revenue, and the application thereof. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 563, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-10.

KRS 162.220 Receiver in case of default

162.220. Receiver in case of default If there is any default in the payment of the principal or interest on any of the bonds, any court having jurisdiction of the action may appoint a receiver to administer the school building on behalf of the city, with power to charge and collect rentals sufficient to provide for the payment of any bonds or obligations outstanding against the school building and for the payment of the operating expenses, and to apply the income and revenues in conformity with KRS 162.150 to 162.280, and the ordinance referred to in KRS 162.170 and 162.230. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 564, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-11.

KRS 162.230 Rent -- Disposition to be fixed by ordinance

162.230. Rent -- Disposition to be fixed by ordinance At or before the issuance of the bonds, the governing body of the city shall, by ordinance, set aside and pledge the income of the building into a special fund to be used and applied in payment of the cost and maintenance of the building. The ordinance shall definitely fix the amount of revenue necessary to be set aside and applied for the payment of the principal and interest of the bonds. The balance of the income shall be set aside for the reasonable and proper maintenance of the building, including a sufficient sum to pay the cost of insurance. The city governing body may provide by ordinance any provision and stipulation it deems necessary for the administration of the income for the security of the bondholders. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 565, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4421-13, 4421-17.

KRS 162.240 Deposit and investment of sinking fund

162.240. Deposit and investment of sinking fund The sinking fund shall be deposited in a depository selected by the governing body of the city. The deposit, where practicable, shall be continuously secured by a pledge to the city of direct obligations of the United States, exclusive of accrued interest, at all times at least equal to the balance on deposit in the account, or in some other manner acceptable to the purchasers or holders of the bonds. The securities shall be deposited with the city or held by a trustee or agent satisfactory to the governing body of the city. The sinking fund may be invested in direct obligations of the United States. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 566, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-17.

KRS 162.250 Maintenance fund surplus to be transferred to sinking fund

162.250. Maintenance fund surplus to be transferred to sinking fund If a surplus is accumulated in the maintenance fund equal to the cost of maintaining the building during the remainder of the calendar or fiscal year, as may be provided by the ordinance required by KRS 162.230, and the cost of maintaining and operating the building for the succeeding like calendar or fiscal year, the excess over such amount shall be transferred to the sinking fund. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 567, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-14.

KRS 162.260 Refunding bonds may be issued

162.260. Refunding bonds may be issued The city may issue refunding bonds to provide funds for the payment of any outstanding bonds, in accordance with the procedure prescribed for the issuance of the original bonds. The refunding bonds shall be secured to the same extent and shall have the same source of payment as the bonds which are refunded. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 476, sec. 256, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-15.

KRS 162.270 Additional bonds authorized

162.270. Additional bonds authorized If the governing body of the city finds that the bonds authorized will be insufficient to accomplish the purpose desired, additional bonds may be authorized and issued subject to the same procedure. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 568, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-16.

KRS 162.280 When city to convey property to board

162.280. When city to convey property to board When the board of education of the school district has paid rent, as provided in KRS 162.160, sufficient to amortize the cost of erection of the building and appurtenances and to maintain the building and pay the cost of insurance, the city shall thereupon convey the premises to the board, and shall transfer any balance remaining in the funds provided for in KRS 162.230 to 162.250 to the account of the board of education. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 569, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4421-18.

KRS 162.290 Alternative methods -- Other procedure not required

162.290. Alternative methods -- Other procedure not required KRS 162.120 to 162.140 and KRS 162.150 to 162.280 are additional and alternate methods for the acquisition of school buildings by boards of education of independent districts embracing cities of any class, and do not include, alter, amend, or repeal any other statute. No proceeding shall be required for the acquisition of any school building or the issuance of bonds under KRS 162.150 to 162.280 except such as are prescribed by those sections. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 570, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4421-4, 4421-19.

KRS 162.300 Certain boards may obtain school buildings as provided in KRS 162.120 to 162.290

162.300. Certain boards may obtain school buildings as provided in KRS 162.120 to 162.290 County boards of education and boards of education of independent districts not embracing a city of any class may obtain buildings for school purposes by proceeding under the provisions of KRS 162.120 to 162.290. When applied to such boards of education, KRS 162.120 to 162.290 shall be so read that the term: (1) "City" means "county," including a county containing a consolidated local government, or "urban-county," as the case may be; (2) "City clerk" means "county clerk" or the appropriate recordkeeping officer in an urban-county government or a consolidated local government; (3) "Governing body of the city" means "fiscal court" or the governing body of an urban-county government or a consolidated local government, as the case may be; (4) "Mayor" means "county judge/executive," "chief executive officer of the urban- county government," or "mayor of a consolidated local government," as the case may be; and (5) "Ordinance" means either "ordinance" or "resolution." Effective: July 15, 2002 History: Amended 2002 Ky. Acts ch. 346, sec. 176, effective July 15, 2002. -- Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 571, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 23, sec. 12, effective July 15, 1986. -- Amended 1974 Ky. Acts ch. 367, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4421-20 to 4421-38.

KRS 162.310 State educational institution may convey building site

162.310. State educational institution may convey building site For the purpose of providing buildings to be used in connection with any state educational institution, the governing body of the institution may convey to any person complying with KRS 162.320 and 162.330 a fee simple title, with covenant of general warranty of title, to real estate held by or for the institution, as a site for the buildings. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 572, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4535cc-1.

KRS 162.320 Contract for erection of building

162.320. Contract for erection of building Every person to whom a site for a building is conveyed pursuant to KRS 162.310 shall immediately enter into a written contract with some person approved by the governing body of the state educational institution, for the immediate erection on the site of a building with the necessary appurtenances, according to plans and specifications approved by the governing body of the state educational institution. The contract shall provide the time when the building shall be completed. The contractor shall enter into bond with the Commonwealth for the benefit of the state educational institution in the penal sum of not less than twenty-five percent (25%) of the contract price for the completion of the work in the manner and within the time set out in the contract. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 573, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4535cc-2.

KRS 162.330 Lease of building -- Option to purchase

162.330. Lease of building -- Option to purchase Immediately upon the execution of the contract provided for by KRS 162.320, the person to whom the site is conveyed shall execute, acknowledge, and deliver to the governing body of the state educational institution, a lease of the site and the building to be erected thereon, for a term of one (1) year from the time the building is completed and ready for occupancy, with an option in the lessee to extend the term of the lease for a term of one (1) year from the expiration of the original term of the lease and for one (1) year from the expiration of each extended term of the lease, until the original term of the lease has been extended for a total number of years to be agreed upon by the parties at a rental which, if paid for the original term and for each of the full number of years for which the term of the lease may be extended, will amortize the total cost of the erection of the building and appurtenances. The rent shall be paid at such times as the parties to the lease agree upon. The lease shall provide that the lessee may, at the expiration of the original or any extended term, purchase the leased premises at a stated price, which shall be the balance of the total cost of the erection of the building and appurtenances not amortized by the payments of rent previously made by the lessee. The lease shall provide that in the event of the exercise of the option to purchase the leased premises or in the event the lease has been extended for the full number of years which it is agreed the same may be extended, and all rents and payments provided for in the lease have been made, the lessor shall convey the premises to the lessee in fee simple with covenant of general warranty of title. The lease may provide that the lessee shall, as additional rent for the leased premises, pay all taxes assessed against the leased premises, and the cost of insuring the building erected thereon against loss or damage by fire and windstorm in such sum as may be agreed by the parties thereto. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 574, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4535cc-3.

KRS 162.340 Governing bodies of state educational institutions may erect buildings

162.340. Governing bodies of state educational institutions may erect buildings The governing body of any state educational institution may, under the provisions of KRS 162.350 to 162.380, erect buildings and appurtenances to be used in connection with the institution for educational purposes. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 575, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4535m-1.

KRS 162.350 Method of erection of buildings by state educational institutions

162.350. Method of erection of buildings by state educational institutions The governing body of a state educational institution erecting a building or buildings pursuant to KRS 162.340 is subject to the provisions of KRS 162.170 to 162.240, KRS 162.260, 162.270, and 162.290, except that part of KRS 162.190 that provides that the bonds shall be payable solely from the revenue derived from the particular building or buildings erected. When so applied these sections shall be so read that: (1) "City" means "state educational institution"; (2) "Ordinance" means "resolution"; (3) "Governing body of the city" means "governing body of the institution"; (4) "School buildings" means the type of buildings contemplated by KRS 162.340; (5) "Thirty (30) years" in KRS 162.180 means "forty (40) years"; (6) "KRS 162.230" in KRS 162.190 and 162.220, means "KRS 162.230, 162.360, and 162.370"; (7) "KRS 162.150 to KRS 162.280" means "KRS 162.350 to 162.380." Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 274, sec. 36, effective July 15, 1996. -- Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, 576, effective July 13, 1990. -- Amended 1968 Ky. Acts ch. 110, sec. 20. -- Amended 1958 Ky. Acts ch. 147, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4535m-2 to 4535m-8; 4535m-10 to 4535m-12, 4535m-14.

KRS 162.360 Revenues from building -- Determination and use

162.360. Revenues from building -- Determination and use The governing body of a state educational institution erecting a building or buildings and appurtenances under the provisions of KRS 162.340 shall, by resolution, provide that the bonds shall be payable, solely from the revenues of such building or buildings, provided, said governing body may in its discretion, by said resolution, also provide that the bonds shall be payable from the revenues of any other building or buildings theretofore or as may be thereafter erected and used, in connection with the institution for educational purposes provided, further, any such provision for the payment of the bonds from the revenues of such other building or buildings theretofore erected shall be subject to and in all respects in full conformity and compliance with the rights of the holders of any bonds or obligations payable from the revenues of such other building or buildings theretofore issued by the governing body then outstanding. The resolution shall fix the initial minimum rents, tolls, fees, and other charges to be imposed in connection with the services furnished by the building or buildings to be erected and may also provide that the governing body of the institution shall monthly as the service accrues pay from the current funds of the institution or from student fees, or both, into the special fund provided by KRS 162.230, as that section is made applicable by KRS 162.350, a minimum amount representing the reasonable cost and value of any service rendered to the educational institution by such building or buildings in furnishing any educational facilities in the operation of the educational institution. The resolution shall fix the extent of the pledge of revenues from such other building or buildings toward the payment of the bonds and interest thereon and may specify the terms and conditions upon which additional bonds may be thereafter issued and sold ranking on a parity with and payable from the same source as the bonds authorized by such resolution, and such additional parity bonds may thereafter be so issued and sold to pay all or any part of the cost of building or buildings and appurtenances. The resolution shall definitely fix the minimum amount of revenues necessary to be set apart on or before stated intervals and applied to the payment of the principal and interest on the bonds and the balance of the income and revenues shall be set aside as a proper operation and maintenance fund, including a sufficient sum to pay the cost of insuring the building or buildings against loss or damage by fire and windstorm or other calamity as may have been stipulated in the resolution or resolutions authorizing the bonds. The charges for the services from the building or buildings, together with the available revenues of any other building or buildings pledged to the payment of said bonds and interest thereon, shall be sufficient at all times to provide for the payment of such interest and to create a sinking fund to accomplish retirement of such bonds at or before maturity, and to pay the current operation and maintenance expenses of the building or buildings to the extent such expenses are not otherwise provided. The charges shall be revised from time to time so as to produce these amounts. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 577, effective July 13, 1990. -- Amended 1958 Ky. Acts ch. 147, sec. 2. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4535m-8.

KRS 162.370 Maintenance fund surplus

162.370. Maintenance fund surplus If a surplus is accumulated in the maintenance fund equal to the cost of maintaining the building or buildings during the remaining portion of the calendar or fiscal year, as may be provided by the resolution adopted under KRS 162.360 and the cost of maintaining and operating the building or buildings the succeeding like calendar or fiscal year, the excess over such amount may be transferred at any time by the governing body to the sinking fund or may be used for any improvements, extensions, or additions to the building or buildings. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 578, effective July 13, 1990. -- Amended 1958 Ky. Acts ch. 147, sec. 3. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4535m-9.

KRS 162.380 Bonds are obligations of governing body -- Resolution constitutes contract

162.380. Bonds are obligations of governing body -- Resolution constitutes contract The bonds issued under authority of KRS 162.350 shall be obligations only of the governing body of the institution, payable as to both principal and interest from the revenues as pledged for that purpose. In no event shall they be considered a debt for which the credit of the state is pledged. Any resolution adopted under the provisions of KRS 162.350 or 162.360 shall constitute a contract between the governing body of the institution and the holder of any bond or coupon and shall be binding in all respects upon the governing body of the institution and its successors. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 579, effective July 13, 1990. -- Amended 1958 Ky. Acts ch. 147, sec. 4. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4535m-13.

KRS 162.385 School district finance corporation -- Definitions -- Construction bonds

162.385. School district finance corporation -- Definitions -- Construction bonds (1) Any board of education may obtain buildings for school purposes by proceeding under the provisions of KRS 162.120 to 162.290 utilizing a nonprofit finance corporation established pursuant to the provisions of KRS 273.161 to 273.390, inclusive, and KRS 58.180 as an issuing agency for the bonds instead of a city or county. When applied to such boards of education, KRS 162.120 to 162.290 shall be so read that the term: (a) "City" means a finance corporation acting as an agency and instrumentality of the board pursuant to KRS 58.180; (b) "City clerk" means the secretary of the finance corporation; (c) "Governing body of the city" means the board of directors of the finance corporation or other governing body thereof; (d) "Mayor" means president or chief executive officer of the finance corporation; and (e) "Ordinance" means an ordinance, resolution, or trust indenture or a similar document. (2) In order to promote uniformity in the financing of school facilities, each finance corporation shall include the identity of the school district for which it acts in its title and shall be designated as "................... School District Finance Corporation." (3) Bonds issued by a finance corporation on behalf of a board of education shall constitute "bonds" within the meaning of KRS 157.615(3) and the School Facilities Construction Commission shall be authorized to assist qualified boards in meeting rental payments due under a lease from the finance corporation to the board which shall constitute a "lease" within the meaning of KRS 157.615(8). Effective: April 3, 1992 History: Amended 1992 Ky. Acts ch. 195, sec. 13, effective April 3, 1992. -- Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 580, effective July 13, 1990. -- Created 1988 Ky. Acts ch. 301, sec. 1, effective April 9, 1988.

KRS 162.387 School district finance corporations may lease land for school construction -- Issuance of bonds

162.387. School district finance corporations may lease land for school construction -- Issuance of bonds (1) Notwithstanding any other statute or administrative regulation to the contrary, any nonprofit finance corporation formed under KRS 162.385 may lease land from any government entity or agency for the purposes of constructing a school building on the site. The nonprofit finance corporation shall offer to lease the land for one (1) year and the lease by its terms shall give the lessee the right and option to extend the term from year to year, for periods of one (1) year, for a minimum of fifty (50) years. (2) In the event a finance corporation leases property from a governmental agency as set forth in subsection (1) of this section, the finance corporation may issue school building revenue bonds on behalf of a school district in accordance with KRS 162.120 to 162.300 just as if the finance corporation held fee simple title to the leased property. Effective: July 15, 2010 History: Created 2010 Ky. Acts ch. 69, sec. 1, effective July 15, 2010.

KRS 162.390 Repealed, 1946

162.390. Repealed, 1946 Catchline at repeal: School building fund in cities of first class; tax for. History: Repealed 1946 Ky. Acts ch. 36, sec. 3. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 2978e-1.

KRS 162.400 Repealed, 1946

162.400. Repealed, 1946 Catchline at repeal: Taxes go to school board; may be accumulated; building fund. History: Repealed 1946 Ky. Acts ch. 36, sec. 3. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 2978e-2.

KRS 162.410 Repealed, 1946

162.410. Repealed, 1946 Catchline at repeal: Deposit or investment of building fund. History: Repealed 1946 Ky. Acts ch. 36, sec. 3. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 2978e-3.

KRS 162.420 Repealed, 1946

162.420. Repealed, 1946 Catchline at repeal: Expenditures from building fund. History: Repealed 1946 Ky. Acts ch. 36, sec. 3. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 2978e-2, 2978e-4.

KRS 162.430 Repealed, 1946

162.430. Repealed, 1946 Catchline at repeal: Report of condition of building fund. History: Repealed 1946 Ky. Acts ch. 36, sec. 3. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 2978e-5.

KRS 162.431 Repealed, 1946

162.431. Repealed, 1946 Catchline at repeal: School building fund in cities of second class and in counties containing such a city; tax for; other assets of. History: Repealed 1946 Ky. Acts ch. 36, sec. 3. -- Amended 1944 Ky. Acts ch. 31, sec. 1. -- Created 1942 Ky. Acts ch. 27, sec. 1.

KRS 162.432 Repealed, 1946

162.432. Repealed, 1946 Catchline at repeal: Taxes go to school board; accumulation and use of fund. History: Repealed 1946 Ky. Acts ch. 36, sec. 3. -- Created 1942 Ky. Acts ch. 27, sec. 2.

KRS 162.433 Repealed, 1946

162.433. Repealed, 1946 Catchline at repeal: Deposit or investment of fund. History: Repealed 1946 Ky. Acts ch. 36, sec. 3. -- Created 1942 Ky. Acts ch. 27, sec. 3.

KRS 162.434 Repealed, 1946

162.434. Repealed, 1946 Catchline at repeal: Expenditures from fund. History: Repealed 1946 Ky. Acts ch. 36, sec. 3. -- Created 1942 Ky. Acts ch. 27, sec. 4.

KRS 162.435 Repealed, 1946

162.435. Repealed, 1946 Catchline at repeal: Audit of fund. History: Repealed 1946 Ky. Acts ch. 36, sec. 3. -- Amended 1944 Ky. Acts ch. 31, sec. 1. -- Created 1942 Ky. Acts ch. 27, sec. 5.

KRS 162.440 Insurance fund for board of education in a designated city or county containing a designated city

162.440. Insurance fund for board of education in a designated city or county containing a designated city (1) The board of education of any designated city or of a county containing a designated city may, by resolution, establish a fund to be known as the "insurance fund" after written approval of the plan to administer the fund has been secured from the chief state school officer. The resolution shall fix the maximum limit of the fund. The fund shall be maintained separate from the other funds and moneys of the board, and shall be used exclusively for replacing or repairing any injury or destruction to any of the buildings owned by the board or to their contents when caused by fire, tornado, windstorm, cyclone, casualty, explosion, riot, or flood, but not when caused by wear and tear or the natural processes of decadence or deterioration. (2) As used in this section, "designated city" means a city classified as a city of the second class as of January 1, 2014, under the city classification system in effect prior to January 1, 2015. The Department of Education shall, on or before January 1, 2015, create an official registry listing the cities that qualify as a "designated city" under this section and shall publish that registry on its Web site. Effective: January 1, 2015 History: Amended 2014 Ky. Acts ch. 92, sec. 228, effective January 1, 2015. -- Amended 1990 Ky. Acts ch. 476, Pt. IV, sec. 257, effective July 13, 1990. -- Amended 1944 Ky. Acts ch. 31, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 3219a-1.

KRS 162.450 Payments into fund -- Replacement of expenditures -- Use of interest

162.450. Payments into fund -- Replacement of expenditures -- Use of interest The board of education authorized to establish an insurance fund pursuant to KRS 162.440 may raise the maximum limit of the insurance fund from time to time as it deems best. Until the amount in the fund equals the maximum limit, the board of education shall each year, from the revenues under its control, set apart to the fund a sum equal to from one-twentieth (1/20) to one-tenth (1/10) of the maximum limit of the sum. When any portion of the fund is used, payments to restore the fund shall at once be begun and be continued until the restoration is complete. When the fund is, for any reason, below the maximum limit, the interest derived from the investment thereof shall be accumulated and added to the fund; otherwise the interest may be transferred to the general funds of the board. Effective: January 1, 2015 History: Amended 2014 Ky. Acts ch. 92, sec. 229, effective January 1, 2015. -- Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 581, effective July 13, 1990. -- Amended 1944 Ky. Acts ch. 31, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 3219a-2.

KRS 162.460 Investment and care of insurance fund

162.460. Investment and care of insurance fund The insurance fund shall be kept on deposit with the treasurer of the board of education, unless by order of the board it is invested in United States, state, county, or city bonds that are not payable from assessments, and are registered, if practicable. If the bonds are coupon bonds, they shall be kept deposited in a safe deposit vault and be opened only by the business manager or secretary of the board in the presence of a member of the board authorized to represent it. Every vote upon the use or investment of any portion of the fund shall be by call of the yeas and nays and the record shall show how each member voted. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 582, effective July 13, 1990. -- Amended 1944 Ky. Acts ch. 31, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 3219a-3, 3219a-5.

KRS 162.470 Insurance inspector to examine buildings annually

162.470. Insurance inspector to examine buildings annually The board of education shall cause every building to be carefully examined annually by a competent insurance inspector. The inspector shall make a written report of the result of his examination with recommendations. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 583, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 3219a-4.

KRS 162.480 Proof of loss -- Appropriations of fund

162.480. Proof of loss -- Appropriations of fund When an injury occurs to any building or its contents from fire, tornado, windstorm, cyclone, casualty, explosion, riot, or flood, the business director or secretary of the board of education shall, within thirty (30) days thereafter, prepare and file with the board a sworn written proof of loss, showing in detail the items of injury, and in detail an estimate of the extent of the financial loss and whether and to what extent the loss is covered by insurance, with the names of the companies, the number of the policies, and names of the agents. Before the board of education may appropriate any portion of the insurance fund, a committee appointed by the board shall report to the board in writing, making recommendations and answering in detail the following questions: (1) What is the entire loss on the building? When and what caused it? (2) What deduction should be made for wear and tear and the natural processes of decadence or deterioration? (3) What portion of the loss proposed to be made good from this fund resulted from causes covered by this fund? (4) Will it be practicable to make the restoration from the general fund and the proceeds of any insurance policies without assistance from this fund? (5) If assistance is needed from this fund, how much? How will the portion so used be returned to the fund? (6) Does the committee recommend an appropriation from this fund to aid in the restoration proposed? If so, how much? Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 476, Pt. IV, sec. 258, effective July 13, 1990. -- Amended 1944 Ky. Acts ch. 31, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 3219a-5.

KRS 162.490 Insurance fund may be used in case of delay in payment under insurance policy

162.490. Insurance fund may be used in case of delay in payment under insurance policy If any insurance company delays in paying to the board of education the amount of any loss under a policy, the board may, on the recommendation of its building and finance committee, appropriate from the insurance fund a sum not exceeding the amount of the probable loss under the policy to aid in the prompt restoration of the loss. The amount drawn from the insurance fund shall not exceed the amount collectible from the policy. A resolution shall be adopted setting over to the insurance fund the proceeds of the policy or sufficient thereof to replace the amount so used, and the proceeds when collected shall be so used and not otherwise. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 476, Pt. IV, sec. 259, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 3219a-6.

KRS 162.500 Prohibited appropriations

162.500. Prohibited appropriations No member of the board of education shall vote for, and no officer of the board shall certify to or draw a check for, an appropriation in violation of KRS 162.440 to 162.490. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 584, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 3219a-7.

KRS 162.510 Repealed, 1964

162.510. Repealed, 1964 Catchline at repeal: Kentucky Public School Authority; public corporation. History: Repealed 1964 Ky. Acts ch. 7, sec. 8. -- Created 1960 Ky. Acts ch. 81, sec. 1.

KRS 162.520 Definitions for KRS 162.520 to 162.620

162.520. Definitions for KRS 162.520 to 162.620 As used in KRS 162.520 to 162.620, the following terms and words have the following respective meanings, unless another meaning is clearly indicated by the context: (1) As used in KRS 162.540, 162.550, 162.580, 162.590, 162.600, and 162.620 "authority" means "State Property and Buildings Commission;" (2) "Department" means the State Department of Education; (3) "Board of education" means the governing body of a county school district, or of an independent school district, for which the authority issues its revenue bonds pursuant to KRS 162.520 to 162.620; (4) "Project" means any undertaking to provide for a board of education any school buildings, facilities, improvements, and appurtenances authorized in KRS 162.120 to 162.300; (5) "Lease" or "lease instrument" means a written instrument for the leasing of one (1) or more school projects executed by the authority as lessor and a board of education as lessee, conforming to the specifications set forth in KRS 162.140; (6) "Bonds" or "bonds of the authority" means bonds issued by the authority under KRS 162.520 to 162.620, payable as to principal and interest solely from rentals received from a board of education pursuant to a lease. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 87, sec. 6, effective July 15, 1996. -- Amended 1990 Ky. Acts ch. 476, Pt. IV, sec. 260, effective July 13, 1990. -- Amended 1964 Ky. Acts ch. 7, sec. 9. -- Created 1960 Ky. Acts ch. 81, sec. 2.

KRS 162.530 Repealed, 1964

162.530. Repealed, 1964 Catchline at repeal: Membership; succession; quorum; compensation; offices; register of membership; official records; regulations; meetings. History: Repealed 1964 Ky. Acts ch. 7, sec. 12. -- Created 1960 Ky. Acts ch. 81, sec. 3.

KRS 162.540 Interpretation of terms in KRS 162.120 to 162.300 when applied to KRS 162.520 to 162.620

162.540. Interpretation of terms in KRS 162.120 to 162.300 when applied to KRS 162.520 to 162.620 Upon receiving a request in writing from a board of education, the authority may, in its discretion, assist such board of education in financing any project by acting in the capacity and manner authorized to be performed by cities under KRS 162.120 to 162.290, and by counties under KRS 162.300. When applied to the authority, KRS 162.120 to 162.300 shall be so read that the following terms and passages have the following respective meanings or interpretations: (1) "City" or "county" means "authority"; (2) "City clerk" or "county clerk" means "secretary or assistant secretary of the authority"; (3) "Governing body of the city" or "fiscal court" means "authority"; (4) "Mayor" or "county judge/executive" means "chairman or vice chairman of the authority"; (5) "Ordinance" in the case of a city, or "resolution" in the case of a county, means a resolution of the authority; (6) "Building and appurtenances" means "project" as defined in subsection (4) of KRS 162.520; (7) The last sentence of KRS 162.190 shall read, "It shall be plainly stated on the face of each bond that it was or is issued under the provisions of KRS 162.520 to 162.620 (omitting reference to KRS 162.150 to 162.280 as such), and that it does not constitute an indebtedness of the authority or of the Commonwealth"; (8) KRS 162.200 is modified to permit use of money received from bonds for the additional purpose of paying reasonable expenses incurred in the authorization, advertising, preparation, sale, and delivery of bonds, and may include a fee contracted to be paid to a fiscal agent for financial advice and services if the contract or agreement therefor shall have been approved by the board of education and by the authority; (9) As used in KRS 162.140, "lease" shall have the meaning defined in subsection (5) of KRS 162.520, and the same shall be recorded or filed for recording in the office of the county clerk of the county in which the project is situated, as evidenced by a written receipt or acknowledgment of filing issued by such clerk, or by a copy of the lease attested or certified by such clerk as being of record in his office. It shall be the duty of the secretary of the authority to obtain such evidence before delivery of the bonds to a purchaser thereof; but failure to obtain the same shall not affect the validity of the bonds in the hands of any purchaser or holder; (10) KRS 162.240 shall not apply; and the following provisions shall govern in lieu thereof: "One (1) or more depositories and paying agents may be selected and designated by the board of education, subject to the approval of the authority, which approval shall not unreasonably be withheld; but each depository and paying agent shall be a financial institution, within or without the Commonwealth, which is a member of the Federal Deposit Insurance Corporation. All deposits of sinking funds and of bond proceeds shall continuously be secured by a pledge to the authority of direct obligations of the United States, exclusive of accrued interest, at all times at least equal to the balance on deposit in the fund or account, such securities to be deposited with the authority or held by a trustee or agent designated by the authority; provided, however, in lieu of requiring such security the authority may in its discretion invest, or cause to be invested and reinvested, any moneys in direct obligations of the United States until such time as cash funds may be needed, and the authority may prescribe for the custody and safekeeping of such securities. When cash funds are needed, the authority shall direct the conversion into cash of such securities, or a sufficient portion thereof, and may require that the same be secured until disbursement, as herein provided. All income from such securities shall accrue to the board of education, but may be retained by the authority and credited upon any rental obligation of the board of education under the lease, or applied to supplement bond proceeds if the same should for any reason turn out to be insufficient to defray the costs and expenses of the project." Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 585, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 23, sec. 13, effective July 15, 1986. -- Amended 1978 Ky. Acts ch. 384, sec. 293, effective June 17, 1978. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 20, sec. 6, effective January 2, 1978. -- Created 1960 Ky. Acts ch. 81, sec. 4, effective June 16, 1960.

KRS 162.550 Ownership of certain moneys determined

162.550. Ownership of certain moneys determined Moneys received by the authority as rentals under any lease, and from the sale of bonds, are declared not to be funds of the Commonwealth but shall be corporate funds of the authority to be held, administered, invested, and disbursed as trust funds under the terms, provisions, pledges, covenants, and agreements set forth in its leases and bond resolutions and bonds. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 586, effective July 13, 1990. -- Created 1960 Ky. Acts ch. 81, sec. 5, effective June 16, 1960.

KRS 162.560 Repealed, 1964

162.560. Repealed, 1964 Catchline at repeal: Officers of authority to be bonded. History: Repealed 1964 Ky. Acts ch. 7, sec. 12. -- Created 1960 Ky. Acts ch. 81, sec. 6.

KRS 162.570 Repealed, 1964

162.570. Repealed, 1964 Catchline at repeal: Authority required to record all financial transactions; report to Governor. History: Repealed 1964 Ky. Acts ch. 7, sec. 12. -- Created 1960 Ky. Acts ch. 81, sec. 7.

KRS 162.580 Duty of authority as to each bond issue

162.580. Duty of authority as to each bond issue In connection with each bond issue of the authority, it shall be the duty of the authority: (1) To require the board of education to insure the project to its full insurable value, or to the amount of the bonds outstanding from time to time, whichever is the less, against the hazards covered by the standard fire insurance policy with standard endorsement of "extended coverage"; and to require that a copy of each policy be delivered to the authority for inspection and for its records; (2) To require periodic accounting from all depositories of funds, the same to be submitted on forms prepared and supplied by the authority; (3) To furnish to the auditing staff of the department a summary identification and description of each issue, and to request that the financial records of the board of education relating thereto be audited as a part of the annual audit of the board of education, and that a separate statement or report thereof be filed with the authority; (4) To send to each board of education, at least thirty (30) days before the due date of any rental payment, a notice of the amount of rental to become due, and the date thereof, and to require acknowledgment thereof; (5) In the event of failure to receive from the board of education satisfactory evidence that sufficient funds have been transmitted to the authority, or will be so transmitted, for paying bond principal and/or interest when due, as provided in the 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 authority for the account of the board of education. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 587, effective July 13, 1990. -- Created 1960 Ky. Acts ch. 81, sec. 8, effective June 16, 1960.

KRS 162.590 Duty of department on request of authority

162.590. Duty of department on request of authority It shall be the duty of the department, upon written request of the authority: (1) To cause its auditing staff to audit the financial records of a board of education relating to any identified and described bond issue of the authority, as an incident to the department's next ensuing annual audit of such board of education, and each subsequent annual audit thereof; and to provide to the authority a statement or report thereof; (2) Upon receiving a notification and request from the authority as described in KRS 162.580, to ascertain whether the lease of the board of education has been renewed and is in force in accordance with its terms; and if the same is ascertained to be in force, to withhold from the board of education a sufficient portion of any undisbursed funds then held or set aside or allocated by the department for the board of education, and to comply with the terms of the notification and request of the authority, for the account of said board of education. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 588, effective July 13, 1990. -- Created 1960 Ky. Acts ch. 82, sec. 9, effective June 16, 1960.

KRS 162.600 Bonds to issue in name of authority -- Identification -- Investment designation

162.600. Bonds to issue in name of authority -- Identification -- Investment designation (1) Bonds of the authority shall be issued in the name of the authority, shall be designated "school building revenue bonds," or, if appropriate, "school building revenue refunding bonds," and shall additionally be identified by the name of the board of education executing the lease. If the authority shall issue more than one (1) series of bonds for the same lessee from time to time, each series, including the first or subsequent to the first, shall additionally be identified distinctly by alphabetical or chronological designation, by date of the bonds, or otherwise as the authority may determine. (2) For the purposes of determining any limit prescribed by any law for investment of any public funds, or funds of banks, trust companies, insurance companies, building and loan associations, credit unions, pension and retirement funds, and fiduciaries, in obligations of a single obligor, bonds issued by the authority pursuant to KRS 162.520 to 162.620 shall not be deemed to be bonds or obligations of the same obligor except to the aggregate of all series of bonds involving leases of a single board of education. (3) Bonds issued by the authority under the provisions of KRS 162.520 to 162.620 are hereby made securities in which all public officers and public bodies of the Commonwealth and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, trustees, and other fiduciaries, and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or other obligations of a similar nature may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the Commonwealth for any purpose for which the deposit of bonds or other obligations of the Commonwealth is now or may hereafter be authorized by law. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 589, effective July 13, 1990. -- Created 1960 Ky. Acts ch. 81, sec. 10, effective June 16, 1960.

KRS 162.610 Repealed, 1964

162.610. Repealed, 1964 Catchline at repeal: Transactions of authority exempt from other control. History: Repealed 1964 Ky. Acts ch. 7, sec. 12. -- Created 1960 Ky. Acts ch. 81, sec. 11.

KRS 162.620 Sale of bonds -- Conditions

162.620. Sale of bonds -- Conditions Bonds of the authority shall be sold only upon the basis of sealed bids or proposals, publicly solicited, received, opened and acted upon. The "publication area," as that term is used in KRS Chapter 424, shall not be deemed to be the area within which the office of the authority is situated, but shall be deemed to be the "publication area" of the board of education executing the lease. Each sale shall be publicly advertised by means of a notice conforming to the provisions of KRS 424.140(3), and the same shall be published at least one (1) time, at least seven (7) days in advance of the date set forth for opening bids, in a daily newspaper having bona fide general circulation throughout the Commonwealth. If such publication is made, it shall be sufficient for publication in the "publication area" to be made only one (1) time, at least seven (7) days in advance of the date set forth for the opening of bids, notwithstanding provisions for publication more often as provided in KRS Chapter 424. If a copy of the sale notice be delivered or transmitted in good faith to the qualified newspaper of the "publication area" in time for publication in an issue thereof published seven (7) days or more in advance of the date set forth for the opening of bids, and with direction for publication therein, any failure of such newspaper to make publication as directed shall not invalidate the sale of the bonds by the authority on the designated date, nor require postponement or cancellation thereof. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 590, effective July 13, 1990. -- Created 1960 Ky. Acts ch. 81, sec. 12, effective June 16, 1960.

KRS 162.990 Penalties

162.990. Penalties Any person who violates any of the provisions of KRS 162.500 is liable to the board of education, in an action brought by the board of education, or by any citizen of the district, or by the chief state school officer, for the restoration of the wrongful appropriation. In addition, he is guilty of malfeasance in office and upon conviction shall forfeit his office, and may for each offense be fined not less than fifty dollars ($50) nor more than one thousand dollars ($1,000), or imprisoned from one (1) to five (5) years, or both so fined and imprisoned. One-half (1/2) of the fine shall be paid to the board of education by the collecting officer. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 476, Pt. IV, sec. 261, effective July 13, 1990. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 3219a-7.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=37888Fetched: 10/20/2026