Horlander speakingRepresentative Dennis Horlander serves as Co-Chairman of the bipartisan Government Contract Review Committee.  Representative Horlander along with his co-chair, Senator Sara Beth Gregory, have the responsibility of overseeing billions of dollars worth of contracts and agreements. The committee oversees nearly 5,000 contracts, agreements and tax incentives throughout broad industry segments such as education, public health, parks, insurance, lottery, retirement systems, student loans, transportation, work study, Medicaid, transit authorities, petroleum storage and the State Fair Board. In order to best serve the taxpayers, Representative Horlander attends conferences and meetings with these various industries in the state, in order to become more informed about what is necessary and appropriate to safeguard the taxpayers’ interests.

2012 Annual Report of the Government Contract Review Committee

Jurisdiction:  Review of all nonexempt memoranda of agreement by and between state agencies, and review of all nonexempt personal service contracts by state agencies and by off-budget agencies, that include, but are not limited to, the Kentucky Lottery Corporation, the Kentucky Housing Corporation, state universities within the Commonwealth, the Kentucky Employers’ Mutual Insurance Corporation, the Kentucky Higher Education Assistance Authority, the Kentucky Student Loan Corporation, and the Kentucky Retirement Systems to examine the stated need for the service, whether the service could or should be performed by state personnel, the amount and duration of the contract or agreement, and the appropriateness of any exchange of resources or responsibilities; and review of all qualifying motion picture or entertainment production tax incentives.

Memoranda of agreement review exemptions include agreements between the Transportation Cabinet and political subdivisions of the Commonwealth for road and road-related projects; agreements between the Auditor of Public Accounts and other government agencies for auditing services; agreements between a state agency as required by federal or state law; agreements between state agencies and state universities or colleges, and agreements between state universities and colleges and employers of students in the Commonwealth Work Study Program; agreements involving child support collections and enforcement; agreements with public utilities, providers of certain direct Medicaid health care to individuals, and transit authorities; nonfinancial agreements; any obligation or payment for reimbursement of the cost of corrective action made pursuant to the Petroleum Storage Tank Environmental Assurance Fund; exchanges of confidential personal information between agencies; agreements between state agencies and rural concentrated employment programs; and any other agreement that the committee deems inappropriate for consideration.

Personal service contract review exemptions include agreements between the Department of Parks and a performing artist or artists for less than $5,000 per fiscal year, per artist or artists; agreements with public utilities, foster care parents, providers of certain direct Medicaid health care to individuals, individuals performing homemaker services, and transit authorities; agreements between state universities or colleges and employers of students in the Commonwealth Work Study Program; agreements between state agencies and rural concentrated employment programs; agreements between the State Fair Board and judges, officials, or entertainers contracted for events promoted by the State Fair Board; and any other contract that the committee deems inappropriate for consideration.

Committee Activity

The Government Contract Review Committee is a statutory committee of the Legislative Research Commission and is required to meet monthly. During fiscal year 2012 beginning July 1, 2011, and ending June 30, 2012, the committee reviewed 696 personal service contracts and 593 amendments to personal service contracts. The committee also reviewed 252 personal service contracts for $10,000 and less, which are submitted to the committee for informational purposes only.

During FY 2012, the committee reviewed 930 memoranda of agreement and 1,302 memoranda of agreement amendments. The committee also reviewed 814 memoranda of agreement for $50,000 and less, which are submitted to the committee for informational purposes only.

During FY 2012, the committee reviewed 1,541 personal service contract items, 3,046 memoranda of agreement items and 4 film tax incentive agreements for a total of 4,591 items.

Since the start of FY 2013 through November 13, 2012, the committee has reviewed 894 personal service contracts and 233 amendments to personal service contracts. The committee has also reviewed 166 personal service contracts for $10,000 and less, which are submitted to the committee for informational purposes only.

Since the start of FY 2013 through November 13, 2012, the committee has reviewed 1,010 memoranda of agreement and 537 memoranda of agreement amendments. The committee also reviewed 574 memoranda of agreement for $50,000 and less, which are submitted to the committee for informational purposes only.

Additionally, as a result of House Bill 3 of the 2009 Special Session, the committee reviewed one film tax incentive agreement at the September 11, 2012, meeting and two film tax incentive agreements at the November 13, 2012, meeting

Since the start of FY 2013 through November 13, 2012, the committee has reviewed 1,293 personal service contract items, 2,121 memoranda of agreement items and 3 film tax incentive agreement for a total of 3,417 items.

Note: These totals reflect all personal service contracts, memoranda of agreements, and film tax incentive agreements entered into the eMars procurement system and captured by the LRC Contract Reporting Database.

Dennis Horlander State Representative Campaign, Jan Horton, Treasurer