200 KAR 21:030. Calculating the preference for Kentucky bond counsel firms for state bond issues.

      RELATES TO: KRS 45A.843, 45A.853, 45A.873

      STATUTORY AUTHORITY: KRS 45A.873(1)(b), 45A.879

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 45A.873(1)(a) requires that in the competition for the Commonwealth's bond counsel business awarded pursuant to KRS 45A.840 to 45A.879, a bond counsel firm with its principal place of business located in Kentucky shall receive a preference over a bond counsel firm with its principal place of business located outside Kentucky. KRS 45A.873(1)(b) requires the Office of Financial Management and Economic Analysis to calculate this preference. This administrative regulation establishes the procedure for calculation.

      Section 1. Calculation of Preference for Kentucky Bond Counsel. (1)(a) The office shall, on a biennial basis and in conjunction with the prequalification process mandated by KRS 45A.853, issue a letter to the state government debt management office or similar governmental agency of each state from which a bond counsel firm requesting to be prequalified has its principal place of business.

      (b) The letter shall request that the agency provide the office with a written copy of that state's statute, administrative regulation, or policy, if any, regarding preference given to in-state bond counsel firms in competition for state bond counsel business.

      (2)(a) The office shall use written evidence of statutes, administrative regulations, or policies as the basis to determine a firm's eligibility for preference and to calculate the preference.

      (b) If a written response is not received from a state within thirty (30) days, the failure to respond shall be deemed an indication that the state does not give a preference to an in-state firm competing for state bond counsel business.

      (c) If a state supplies written evidence demonstrating that the authority required in paragraph (a) of this subsection was implemented outside of the scheduled prequalification period, the office shall consider the matter of preference for a firm with a principal place of business in that state.

      (3)(a) The office shall compile a list of bond counsel firms qualified to receive a preference and the corresponding calculation or formula for the preference.

      (b) The list shall be provided to the selection committee reviewing responses to requests for qualifications.

      (c) The office shall forward to the selection committees any amendment to the list made necessary by the receipt of information pursuant to subsection (2)(c) of this section. (21 Ky.R. 1988; eff. 3-22-95; Am. 25 Ky.R. 2649; 26 Ky.R. 42; eff. 7-14-99.)