AN ACT relating to local public agency transactions.
Summary
Amend KRS 45A.345, relating to local procurement, to define "best value" and redefine "evaluated bid price" as "economic efficiency"; amend KRS 45A.365 to require invitations for bids to state that awards be made on the best value rather than the lowest evaluated bid price; delete requirement for the inclusion of a reciprocal preference for resident bidders; require awards to the best value bid rather than the bid that is lowest evaluated bid price remove reference to reciprocal preference; amend KRS 45A.370 to allow purchases through competitive negotiation using the best value bid rather than the lowest evaluated bid; remove references to reciprocal preference; amend KRS 45A.375, relating to competitive negotiation to allow awards to be made upon the best value rather than lowest evaluated bid, and remove reference to reciprocal preference; amend KRS 45A.385, relating to small purchase procedures, to increase the small purchase maximum amount to $60,000 from $40,000; index the maximum amount by $10,000 every 5 years beginning in 2030; require the Finance and Administration Cabinet to publicize the current amount; amend KRS 45A.420, relating to cooperative purchasing, to allow local public agencies to make agreements using an established discount, quote, formula, or other pricing method as established by the Commonwealth when an agreement does not establish a fixed unit price; amend KRS 82.083, relating to the disposition of property owned by a city, to amend the definition of "independent appraisal" as it relates to personal property for which there is no applicable nationally published valuation standard, to include a generally accepted method to determine a good-faith estimate; amend KRS 82.084 to add law enforcement vehicles and equipment to the exclusions from KRS 45A.345 to 45A.460 and 424.260; amend KRS 424.260 to increase the limit for making advertisements for purchases to $60,000 from $40,000; index the small purchase maximum amount by $10,000 every 5 years beginning in 2030; amend KRS 157.420 and 157.440 to conform; repeal KRS 65.027, relating to reciprocal preference to resident bidders.
Bill status
signed
all 5 stages cleared
Introduction
Jan 2026
Committee Review
Mar 2026
House Passage
Mar 2026
Senate Passage
Mar 2026
Signed into Law
Apr 2026
Introduced Jan 15, 2026
Signed Apr 7, 2026
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What changed between versions
Introduced
→
Current/Final
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5 edits
MODERATE
This bill significantly updates Kentucky's local procurement and asset disposal laws. It raises the threshold for 'small purchases' from $40,000 to $50,000 and establishes a mechanism to automatically increase this limit by $10,000 every five years starting in 2030. Additionally, it clarifies that local agencies can negotiate with Commonwealth vendors without violating existing laws and expands the methods cities can use to sell or dispose of their property.
Scope change
The bill expands the scope of allowable procurement practices for local agencies by increasing financial thresholds and adding new disposal options for city property.
THRESHOLDS
Increased the maximum dollar amount for 'small purchase procedures' from $40,000 to $50,000.
TIMELINE
Added a provision to automatically increase the small purchase limit by $10,000 every five years, effective January 1, 2030.
ELIGIBILITY
Clarified that local agencies may negotiate with vendors for supplies covered by Commonwealth price agreements, provided the negotiated price does not exceed the Commonwealth price.
REQUIREMENT
Added new procedures for cities to sell or dispose of real and personal property, including transfers for economic development, electronic auctions, and sales to animal handlers.
DEFINITION
Updated the definition of 'local public agency' and related terms to reflect the new procurement and disposal rules.
Floor votes · House Feb 18, 2026
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
19
Key actions
7
Committee
6
Apr 7, 2026
Signed into law
signed by Governor (Acts Ch. 39)
lower
Mar 26, 2026
Upper · Passed
enrolled, signed by President of the Senate
upper
Mar 26, 2026
Lower · Passed
enrolled, signed by Speaker of the House
lower
Mar 25, 2026
Lower · Passed
3rd reading, passed 38-0
lower
Mar 19, 2026
Lower · Passed
reported favorably, 1st reading, to Consent Calendar
lower
Mar 16, 2026
Committee
to Economic Development, Tourism, & Labor (S)
upper
Feb 19, 2026
Committee
to Committee on Committees (S)
upper
Feb 18, 2026
Lower · Passed
3rd reading, passed 97-0 with Committee Substitute (1)
lower
Feb 12, 2026
Lower · Passed
reported favorably, 1st reading, to Calendar with Committee Substitute (1)
lower
Jan 23, 2026
Committee
to Economic Development & Workforce Investment (H)
lower
Jan 15, 2026
Committee
to Committee on Committees (H)
lower
Jan 15, 2026
Introduced
introduced in House
lower
0 primary · 0 co-sponsors
Sponsors
No sponsor information available.
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