780 KAR 7:060reg. Equipment inventory and insurance

      Section 1. Definitions. (1) “Fund” means the State Fire and Tornado Insurance Fund.

      (2) “Kentucky TECH schools” means the system of state-operated secondary career and technical education programs in the area technology centers.

 

      Section 2. (1) The Office of Administration and Support[Administrative Services] shall be responsible for the management and control of an inventory system for career and[vocational-] technical education programs.

      (2) Pursuant to KRS 45.313, all equipment with a value of $500[250] or more acquired in whole or in part with state funds shall be maintained on this inventory and identified in accordance with 200 KAR 5:021.

      (3) The area technology centers shall be responsible for conducting an annual inventory of all property.

      (4) All equipment acquired in whole or in part with federal funds shall be maintained on the current inventory.

 

      Section 3.[2.] Except as provided in subsections (1), (2), and (3) of this section, all career and technical education equipment in the Kentucky TECH schools shall be covered by the State Fire and Tornado Insurance Fund regular policy underwritten by the Commonwealth of Kentucky.

      (1) Equipment insured for full coverage under the state computer insurance policy shall not be covered under the[State Fire and Tornado Insurance] fund.

      (2) Equipment normally utilized and stationed at remote locations shall be insured under the floater clause in the[State Fire and Tornado Insurance] fund.

      (3) Equipment on loan from industry requiring insurance shall be insured under the Inland Marine policy underwritten by the Commonwealth of Kentucky.

 

This is to certify that the chief state school officer has reviewed and recommended this administrative regulation prior to its adoption by the Kentucky Board of Education, as required by KRS 156.070(5).

 

STEPHEN L. PRUITT, Ph.D., Commissioner

ROGER L. MARCUM, Chairperson

      APPROVED BY AGENCY: May 12, 2016

      FILED WITH LRC: May 13, 2016 at 10 a.m.

      CONTACT PERSON: Kevin C. Brown, Associate Commissioner and General Counsel, Kentucky Department of Education, 500 Mero Street, First Floor, Capital Plaza Tower, Frankfort, Kentucky 40601, phone [phone], fax [phone].

Notation

      RELATES TO: KRS 45.301(1)(f), 45.313, 56.070-56.100[56.185], 156.802(3), 156.852[151B.025(3), 151B.150]

      STATUTORY AUTHORITY: KRS 156.070(4), (5), 156.802(3)[151B.025(3)]

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 156.070(4) requires the Kentucky Board of Education to promulgate administrative regulations for the efficient management, control, and operation of schools and programs under its jurisdiction.  KRS 156.802(3) authorizes the Kentucky Department of Education to manage, control, and operate state vocational education and technology centers. KRS 156.070(5) requires the board to establish policy relating to equipment contracts. This administrative regulation establishes policy and operating procedures concerning the inventory and insurance of state-operated career and technical education equipment.[KRS 45.301(1)(f) requires the Finance and Administration Cabinet to supervise purchasing and storekeeping and control of property and stores. KRS 45.313 requires that each budget unit shall maintain a current inventory of equipment having an original cost of $500 or more. This inventory shall be available for examination by the Finance and Administration Cabinet at all times. KRS 56.070-56.185 grants the Finance and Administration Cabinet the authority to determine state property to be insured under the state fire and tornado insurance fund. KRS 156.802][151B.025][requires the Associate Commissioner][Executive Director][of the Office of Career and Technical Education to administer the state-operated career and technical education program. This administrative regulation establishes policy and operating procedures relative to the inventory and insurance of state-operated career and technical education equipment.]