AN ACT relating to local public agency transactions.

Amend KRS 45A.345, relating to local procurement, to define "best value" and redefine "evaluated bid price" as "economic efficiency"; amend KRS 45A.365 to require invitations for bids to state that awards be made on the best value rather than the lowest evaluated bid price; delete requirement for the inclusion of a reciprocal preference for resident bidders; require awards to the best value bid rather than the bid that is lowest evaluated bid price remove reference…

Advertising Cities Counties Financial Responsibility Local Government Public Procurement State Agencies Local Mandate

Introduced: January 15, 2026

Last action: April 7, 2026

(Acts Ch. 39)

In effect since July 15, 2026

Acts from the 2026 Regular Session that don't carry an emergency clause or set their own effective date took effect 90 days after the session adjourned (Ky. Constitution § 55).

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This bill changes how local government agencies in Kentucky purchase goods and services. It shifts the standard for awarding contracts from the lowest bid price to the "best value," raises the spending threshold for simplified purchasing procedures from $40,000 to $60,000 (with automatic increases every five years), and removes existing rules that gave preference to Kentucky-based businesses when bidding on government contracts. Who it may affect: local government agencies, businesses that bid on government contracts, and taxpayers whose money funds local public purchases.

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