Statutes Impacting UofL

Statutes Impacting UofL

(Note: This section does not pertain to ULP leases.)

Kentucky Revised Statutes (KRS): Applicable Links

KRS 56.803 – State leasing requirements

KRS 56.805 – Emergency leasing provisions

KRS 56.806 – Terms of leases

KRS 56.813 – Request for additional space

KRS 56.823 – Requirement to report leases to Capital Projects and Bond Oversight Committee

KRS 56.832 – Property leasing in foreign jurisdictions

KRS 48.111 – Requirement to have line item budget authority for leases in excess of $200,000 annually

 

Key statutory elements to consider

  1. When a department is in need of a new leased space, additional space needed at a different lease rate, or if a lease is at the end of its term, a request for proposal (RFP) must be posted.
  2. Need for capital authorization in the state budget process
  3. A lease agreement term shall begin on a date stated and end on June 30th in each year in which biennium ends, which are even-numbered years.
  4. A lease may be automatically renewed, under the same terms and conditions, for three (3) two (2) year renewal terms.
  5. Rent must remain the same for the entire term of the lease; operating expense increases are allowed.
  6. The lease agreement is required to allow the University to terminate the lease agreement with a 30 day notice.