KentuckyHB 3922026 Regular SessionHouseWALLET

AN ACT relating to local public agency transactions.

Sponsored By: Michael Meredith (Republican)

Signed by Governor

AdvertisingCitiesCountiesFinancial ResponsibilityLocal GovernmentLocal MandatePublic ProcurementState Agencies

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Easier group buying under state price deals

Local agencies can buy together under cooperative contracts, and all partners are treated as compliant. Agencies may use state price agreements but cannot pay more than the state price for the same items. If the state deal uses discounts or formulas instead of fixed prices, agencies may buy using those methods and must keep records. School districts may buy outside a state price deal for identical items up to $2,500 if their price is lower.

Higher small-purchase limit for local buys

The law raises the small-purchase limit for local public agencies to $50,000. Beginning January 1, 2030, the limit increases by $10,000 every five years. The Finance and Administration Cabinet announces and posts the current year limit.

Targeted exemptions for local purchasing

Covered local governments get new targeted purchasing exemptions. They may buy directly from a single source in a reasonable area and for unplanned replacement parts when stocking spares is not feasible. They may buy vehicles and installed equipment used only for law enforcement if they get at least three quotes and keep records. They may also buy from disability-service agencies, VA-operated veterans' workshops, local nonprofits or businesses whose main mission is serving people with disabilities, and nonprofit community service groups when the legislative body records that the purchase serves a mutual public benefit; if multiple groups qualify, the government picks one using its competitive selection rules.

Clear rules to sell city property

The law sets clear steps to value and dispose of city property. Cities may use a national value guide or another accepted method when no national guide exists. Before selling property with value, the city prepares a written decision that explains the item, why selling helps the public, how value was estimated, and how it will be sold. Allowed methods include trade-ins when the trade value meets or exceeds fair market value; sales at appraised value for items valued at $10,000 or less, but not to city officers, employees, or their family; and disposal as scrap or garbage when an independent appraisal shows no or negligible value, without the usual written decision. Cities may give a retired or medically unfit service animal to its primary handler or trainer at no cost.

Sponsors & Cosponsors

Sponsor

Michael Meredith
Republican • House

Cosponsors

Jim Gooch Jr.
Republican • House

Roll Call Votes

All Roll Calls

Yes: 135 • No: 0

Senate vote • 3/25/2026

3rd reading, passed

Yes: 38 • No: 0

House vote • 2/18/2026