2026 Regular Session - Day 25 - HB 432 | Rep. Amy Neighbors

Mr. Speaker, I ask the clerk to report the House Committee substitute to House Bill 432. Clerk, please report. House Committee substitute one to House Bill 432. Lady from Metcalfe. Mr. Speaker, the committee substitute tightens and clarifies the standard. It specifies that the 75 percent cap is based on one, the NADA or blue book value for the model year of the vehicle or two, the MSRP for the date of manufacture for the equipment for the same or similar item. The substitute doesn't change the policy. It simply requires a significant discount from new, but it clearly defines which new price is used for comparison. With that, Mr. Speaker, I move adoption of the House Committee substitute to House Bill 432. Motion is for the adoption of House Committee substitute one. Is there any discussion of the committee substitute? Seeing none, those in favor signify by voting aye. Those opposed, nay. House Committee substitute one is adopted. Lady from Metcalfe. Mr. Speaker, House Bill 432 is a targeted common-sense update to Kentucky's local purchasing laws. Its purpose is simple, to give local governments reasonable flexibility while preserving transparency, accountability, and physical responsibility. First, the bill clarifies when non-competitive negotiation may be used. These circumstances already exist in statute, but House Bill 432 modernizes and clearly lists them, such as emergencies, single source providers, licensed professionals, perishable goods, replacement parts, and certain insurance products. Written justification by the local agency is still required, ensuring documentation and oversight remain in place. Second, House Bill 432 updates KRS 424.260 to better reflect real-world purchasing. It maintains the $40,000 statutory bid threshold while allowing a practical exception for the purchase of used vehicles or used equipment, so long as the purchase price does not exceed 75% of the NADA for vehicles or 75% of the manufacturer's suggested retail price for the same or similar equipment based on the model year or date of manufacture. This ensures local governments can make fiscally responsible purchases without unnecessary delays. Importantly, competitive bidding remains the rule, not the exception. Emergency certifications are still required, and school districts retain their existing safeguards and cost-saving options. In short, House Bill 432 reduces red tape, avoids unnecessary delays, and allows local officials to act responsibly and efficiently while continuing to protect the public trust. Mr. Speaker, if there are no questions, I move passage of House Bill 432 as amended by House Committee Substitute 1.