Key KRS Statutes and UK Regulations

In addition to the document, Ethical Principles and Code of Conduct, there are statutes of the Commonwealth of Kentucky that address ethical principles, as follows:

KRS 164.131(7) Board of Trustees of University of Kentucky Membership Terms

(7) No member of the administrative staff of the university shall be directly or indirectly interested in any contract with the university for the sale of property, materials, supplies, equipment, or services, with exception of compensation to the two (2) faculty members and the one (1) nonteaching personnel member.

KRS 164.390 Interests in contracts prohibited

Unless specifically approved by the governing board of an institution under the provisions of KRS 164.367, no president, professor, teacher, member of the executive council, or other officer or employee shall be interested in any contract or purchase for the building or repairing of any structure or furnishing of any supplies for the use of a university or college

KRS 164.367 Governing board may permit its employees to have an interest in a contract between the institution and a business -- Regulations to be forwarded to the Legislative Research Commission.

(1) For the purposes of this section, "business" has the same meaning as defined in KRS 11A.010.

(2)The governing board of each public postsecondary education institution may adopt regulations establishing the conditions under which and the procedures whereby the board may approve a specific instance of an employee having an interest in a contract between the institution and a business.

(3) Each governing board shall forward, as soon as is practicable, a copy of the regulations it adopts under provisions of this section to the Legislative Research Commission. A board shall also forward any subsequent changes to the regulations to the Commission.

UK Governing Regulation Part I.D.2 (m), Financial Advantage

Members of the University community must exhibit personal integrity, honesty and responsibility in all actions. Official position or office shall not be used to obtain financial gain or benefits for oneself or members of one's family or business associates. Any action that creates the appearance of impropriety should be avoided. Except as specifically approved by the Board, purchases and contracts shall not be made with an employee of the University of Kentucky for any item of supply, equipment, or service, nor may an employee have any interest, directly or indirectly, in any purchase made by the University of Kentucky (Business Procedures Manual B.2.C). (See KRS 164.131 and KRS 164.367) An indirect interest may be defined as a real or perceived use of a university position or office with respect to a purchase or contract, leading to financial or other benefits to the individual or a member of his or her family. An indirect interest includes situations where a business owned or controlled by a family member does business with the University area where the employee is assigned.

An employee seeking approval under this section shall first make an application to the University Ethics Committee by submitting in writing a full disclosure of all aspects of his or her relationship with the contracting company or business. The Ethics Committee shall make a recommendation to the President, who shall forward to the Board the Committee's recommendation together with his or her recommendation. In recommending approval of a contractual relationship, the Committee shall determine that:

(i) the contractual relationship is in the best interest of the University; 

(ii) the employee has taken whatever actions are necessary to avoid any conflict of interest or any appearance of a conflict of interest;

(iii) if the conflict is subject to the provision of KRS Chapter 45A, the employee's contract shall be the lowest price bid or otherwise provides the best value to the University

(iv) the employee's interest in the contract does not present a conflict with the employee performing his or her job; and 

(v) the nature of the contract and the nature of the employee's interest in the contract or business shall be fully disclosed to the University community by as broad communications as feasibly possible. 

Action taken by the Board shall be in open session, by affirmative vote. The action item shall fully disclose the nature of the conflict, and the reasons for the action. 

45A is Model Procurement Code for the Commonwealth of Kentucky.

KRS 45A.335 Definitions for terms in KRS 45A.330 to 45A.340

(2) "Officer or employee" means a member or employee of the boards of trustees, or regents of a state university, except faculty and student members, and a person holding an office, position or employment in the agency, but does not include other persons who serve without salary and it does not include members of employees of school boards or district boards of education or faculty or staff of state institutions of higher learning or, as used in KRS 45A.430(5), citizen members of boards, commissions or independent state authorities who may receive per diem allowances for attendance at meetings of the boards, commissions or authorities on which they serve;

KRS 45A.340 Conflicts of interest of public officers and employees

(7) No member of a board of trustees or regents shall have an interest in any contract with a state university unless such contract shall have been subjected to competitive bidding in compliance with KRS 45A, unless such trustee or regent shall have been the lowest bidder and unless such trustee or regent shall have first notified in writing the remaining members of the board, and to the newspaper having the largest circulation in the county in which the state university is located, of his intention to bid on such contract.