Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 45A.550-45A.554
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
45A.552 requires the Finance and
Administration Cabinet to develop an objective and systematic process for
evaluating the information required to be submitted by state agencies for use
in determining whether to approve privatization of a government service. This
administrative regulation establishes the process for evaluating information
when determining whether to approve a request for privatization.
Section 1. Request to Privatize.
(1) An agency desiring to enter into a
privatization contract, as defined in
KRS
45A.550, shall submit a Request to Privatize,
signed by the agency head, and accompanied by the written documentation
described in
KRS
45A.551(2) and (3), to the
Secretary of the Finance and Administration Cabinet.
(2) The secretary shall:
(a) Appoint an ad hoc committee to review the
request;
1. The committee shall consist of:
a. Two (2) employees from the Personnel
Cabinet; and
b. Four (4) employees
from the Finance and Administration Cabinet.
2. The committee:
a. Shall verify the accuracy and completeness
of the information submitted by the agency;
b. Shall develop a method and benchmarks for
evaluating a request, document the method and benchmarks in writing, and attach
the document to the committee's recommendation to the secretary;
c. May request a meeting with the agency to
discuss or clarify the information submitted;
d. Shall score the request based on the
information submitted pursuant to
KRS
45A.551(2) and (3) and the
method and benchmarks established by the committee; and
e. Shall issue a written recommendation to
the secretary, including data compiled by the committee, within thirty (30)
days of submission of the request to the secretary.
(b) Issue a written determination
approving or rejecting the Request to Privatize, within ten (10) days from
receipt of the committee's recommendation, and forward a copy of the
secretary's determination and the committee's recommendation to the Government
Contract Review Committee.
Section 2. Basis of Determination.
(1) The secretary shall base the
determination to approve or reject a Request to Privatize on the following
factors:
(a) The agency analysis provided
pursuant to
KRS
45A.551(2) and
(3);
(b) The committee's recommendation;
and
(c) The effect of privatization
upon:
1. Continuation of funds currently
available;
2. Other programs and
responsibilities;
3. The exercise
of discretion in applying governmental authority;
4. The making of value judgments in decisions
affecting the government;
5.
Quality of services; and
6. Overall
cost.
(2) If
the information submitted by the agency is insufficient, the committee or the
secretary shall request additional information or clarification from the
requesting agency.
(3) If the
information demonstrates that it would be in the best interest of the
Commonwealth to privatize the service, the secretary shall approve the Request
to Privatize.
Section 3.
Incorporation by Reference.
(1) The following
material is incorporated by reference:
(a)
"Request to Privatize" 9/1999; and
(b) "Cost Benefit Analysis" 9/1999.
(2) This material may be
inspected, copied, or obtained at the Finance and Administration Cabinet,
Office of the Secretary, Room 383 Capitol Annex, Frankfort, Kentucky, 40601,
Monday through Friday, 8 a.m. to 4:30 p.m.
STATUTORY AUTHORITY:
KRS
45A.552