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26A.162 Determination of use allowance -- Presumption of twenty year bond issue -- Standards for longer term of issue -- Legislative oversight.

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Page 1 of 1 26A.162 Determination of use allowance -- Presumption of twenty year bond issue - - Standards for longer term of issue -- Legislative oversight. (1) The use allowance in the judicial branch budget recommendation submitted under KRS 48.100 shall be determined as if bonds will be issued for a term of twenty (20) <br>years at the prevailing market rate, computed from the estimated date that the Court <br>of Justice will occupy the facility. If the market rate for the bonds has increased <br>when the bonds are to be sold, the director of the Administrative Office of the <br>Courts may approve an extension in the bond term, up to a total of twenty-five (25) <br>years, but only as necessary to keep the annual use allowance within the budgeted <br>amount. All bonds issued by any local unit of government for court facilities <br>projects shall be limited to the term approved by the Administrative Office of the <br>Courts. (2) Before approving any bond issue for a term exceeding twenty-five (25) years, the director of the Administrative Office of the Courts shall submit a proposal for the <br>extended term to the Interim Joint Committee on Appropriations and Revenue and <br>the Capital Projects and Bond Oversight Committee. The proposal shall include a <br>statement of the necessity for the extended bond term and the impact of the <br>extended term on the project's budgeted scope and authorized annual use allowance. (3) Within thirty (30) days after receiving a proposal to extend a bond term beyond twenty-five (25) years, the Interim Joint Committee on Appropriations and Revenue <br>and the Capital Projects and Bond Oversight Committee shall either approve or <br>disapprove the proposal and shall then promptly notify the director of the <br>Administrative Office of the Courts. If either committee disapproves the proposal, <br>the director of the Administrative Office of the Courts shall take one (1) of the <br>following actions and shall notify the committee of its decision in writing within <br>thirty (30) days: <br>(a) Disapprove and take no further action on the proposal; <br>(b) Revise the proposal to comply with the committee's objections; or <br>(c) Determine to approve and proceed with the proposal over the committee's objection. Effective: July 14, 2000 <br>History: Created 2000 Ky. Acts ch. 496, sec. 3, effective July 14, 2000.