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Reciprocal Preference Law
Kentucky (KY)
 
Preference/Law                      
Conditions                                                                                                                   

Reciprocal Preference Statute

Effective:  July 15, 2010

45A.494  Reciprocal preference to be given by public agencies to resident bidders -- List of States -- Administrative regulations. 

1)  Prior to a contract being awarded to the lowest responsible and responsive bidder on a
contract by a public agency, a resident bidder of the Commonwealth shall be given a preference against a nonresident bidder registered in any state that gives or requires a preference to bidders from that state.  The preference shall be equal to the preference given or required by the state of the nonresident bidder.  

2)  A resident bidder is an individual, partnership, association, corporation, or other business entity that, on the date the contract is first advertised or announced as available for bidding:
     a)  Is authorized to transact business in the Commonwealth; and
     b)  Has for (1) year prior to and through the date of the advertisement, filed Kentucky
          corporate income taxes, made payments to the Kentucky unemployment insurance 
          fund established in KRS 341.490 and
     c)  maintained a Kentucky workers' compensation policy in effect.

3)  A nonresident bidder is an individual, partnership, association, corporation, or other business entity that does not meet the requirements of subsection (2) of this section.

4)  If a procurement determination results in a tie between a resident bidder and a nonresident bidder, preference shall be given to the resident bidder.

5)  This section shall apply to all contracts funded or controlled in whole or in part by a public agency.

6)  The Finance and Administration Cabinet shall maintain a list of states that give to or require a preference for their own resident bidders, including details of the preference given to such bidders, to be used by public agencies in determining resident bidder preferences.  The cabinet shall also promulgate administrative regulations in accordance with KRS Chapter 13A establishing the procedure by which the preferences required by this section shall be given.

7)  The preference for resident bidders shall not be given if the preference conflicts with federal law.

8)  Any public agency soliciting or advertising for bids for contracts shall make KRS 45A.490 to 45A.494 part of the solicitation or advertisement for bids.   

Kentucky resident bidder reciprocal preference

200 KAR 5:400

 Section 1: Definitions

1)  "Contract" is defined by KRS 45A.460(1).
2)  "Nonresident bidder" is defined by KRS 45A.494(3)
3)  "Public Agency is defined by KRS 45A.490(2)
4)  "Resident bidder is defined by KRS 45A.494(2).
5)  "Response" means any bid or response submitted to a solicitation.
6)  "Solicitation" means an invitation for bid, request for proposal, advertisement for bid, or  another formal method of soliciting a contract issued by a public agency.

 Section 2: Claiming Resident Bidder Status

1)  Any individual, partnership, association, corporation, or other business entity claiming   resident bidder status shall submit along with its response a notarized affidavit that affirms that it meets the criteria to be considered a resident bidder as set forth in KRS 45A.494(2).
2)  If requested, failure to provide documentation to a public agency proving resident  bidder status shall result in disqualification of the bidder or contract termination. 

  Section 3:  Determination of Residency for Nonresident Bidders

1)  The state of residency for a nonresident bidder, for purposes of this administrative      regulation, shall be its principal office as identified in the bidder's certificate of authority to transact business in Kentucky as filed with the Commonwealth of Kentucky, Secretary of State.
2)  If the bidder is not required to obtain a certificate of authority to transact business in      Kentucky, its state of residency shall be the mailing address provided in its bid. 

  Section 4:  Applying the Reciprocal Preference

1)  Once all responsible and responsive bidders to a solicitation have been scored and ranked, the residency of each bidder shall be identified.
2)  A preference equal to the preference given or required by the state of the highest     evaluated nonresident bidders shall be given to all responsive and responsible resident      bidders.  
3)  The responses shall then be rescored and re-ranked to account for any applicable      preferences.  
4)  In awarding a contract, resident bidders shall only receive preference against 
     nonresident bidders residing in a state that gives a preference to bidders from that
     state.  This preference shall not be applied against nonresident bidders residing in
     states that do not give preference against Kentucky bidders.
5)  If a procurement determination results in a tie between a resident bidder and a 
     nonresident bidder, preference shall be given to the resident bidder.
6)  This administrative regulation shall not result in a nonresident bidder receiving a
     preference over another nonresident bidder. 

     (37 Ky.R. 1109; Am. 1627; eff. 02/04/2011)

 
Commodities or Services
 
 
 
 
Preference is to be given in purchasing commodities or services from the Department of Corrections; Division of Prison Industries; Kentucky Industries for the Blind; agencies of individuals with severe disabilities; Incorporated or any other nonprofit corporation that furthers the purposes of KRS Chapter 163.

Agriculture

 

State agencies, as defined by KRS 45A.505, shall purchase Kentucky-grown agricultural products if the products are available and if the vendor can meet the applicable quality standards and pricing requirements of the state agency.