[As Amended by House Committee of the Whole]

         
As Amended by House Committee

         
As Amended by Senate Committee
         
Session of 2000
         
SENATE BILL No. 462
         
By Committee on Elections and Local Government
         
1-20
         

12             AN  ACT concerning campaign finance; relating to contributions; amend-
13             ing K.S.A. 1999 Supp. 25-4153a and repealing the existing section.
14             AN ACT concerning governmental ethics and elections; amending
15             K.S.A. 1999 Supp. 25-4143, 25-4153a, 46-237, 46-237a and 46-
16             269 and repealing the existing sections. [K.S.A. 10-116a, 10-
17             427a, 10-1202, 10-1211, 25-4142, 46-235, 46-242, 46-271, 59-
18             2006, 66-1513, 75-430a, 75-1250, 75-1251, 75-1253, 75-1254,
19             75-1255, 75-1258, 75-1265, 75-3738, 75-3740, 75-3784, 75-3799,
20             75-37,102, 75-5310a, 75-5801, 75-5802, 75-5803 and 75-5804
21             and K.S.A. 1999 Supp. 10-106, 25-4143, 25-4153a, 40-3410, 40-
22             3411, 44-566a, 46-237, 46-237a, 46-269, 74-8904, 75-3739 and
23             76-745 and repealing the existing sections; also repealing K.S.A.
24             75-1256, 75-1257, 75-5805, 75-5806 and 75-5807.]
25      
26       Be it enacted by the Legislature of the State of Kansas:
27        [Section  1. K.S.A. 25-4142 is hereby amended to read as fol-
28       lows: 25-4142. K.S.A. 25-4119e, 25-4119f, 25-4119g, 25-4142 to 25-
29       4179 inclusive, and amendments thereto and 25-4119e, 25-4119f, 25-
30       4119g, 25-4148a, 25-4153a, 25-4157a, 25-4169a, 25-4180 to 25-4185,
31       inclusive through 25-4187 and section 2, and amendments thereto,
32       shall constitute be known and may be cited as the ``campaign finance
33       act.''
34             [New Sec.  2. (a) The restrictions in subsection (b) shall apply
35       to political committees having as a major purpose to expressly ad-
36       vocate the nomination, election or defeat of any clearly identified
37       candidate for the legislature or to make contributions or expend-
38       itures for the nomination, election or defeat of any clearly identi-
39       fied candidate for the legislature.
40             [(b) A member of the legislature, a member-elect of the legis-
41       lature and a candidate for election to the legislature shall not serve


2

  1       as an officer or director of a political committee.]
  2        [Section  3. K.S.A. 46-235 is hereby amended to read as fol-
  3       lows: 46-235. (a) No state officer or employee shall accept com-
  4       pensation for performance of official duties, other than that to
  5       which such person is entitled for such performance. No person
  6       shall pay or offer to pay any state officer or employee any com-
  7       pensation for performance of official duties, except a state officer
  8       or employee performing official duties in making payments to
  9       state officers and employees. The receipt of wages or salary from
10       an individual's non-state employer during a period of service as a
11       state officer or employee shall not be construed as compensation
12       for performance of official duties.
13             [(b)  (1) Except as otherwise specifically provided in this subsection,
14       no legislator, state officer elected on a statewide basis, full-time state of-
15       ficer appointed subject to confirmation by the senate or the spouse of any
16       such officer shall accept directly or indirectly any present, promised or
17       contingent moneys, compensation, expenses or other allowance or eco-
18       nomic opportunity:
19             [(A) Which is paid or financed in whole or in part from moneys or
20       funds of, or which are budgeted for expenditures by, any agency of the
21       state, or any body politic and corporate or other entity created by any
22       law of the state, except compensation and allowances specifically author-
23       ized by law for duties and service of the legislator, state officer elected on
24       a statewide basis, full-time state officer appointed subject to confirmation
25       by the senate;
26             [(B) under any contract or bond or any kind of debt instrument issued
27       by any agency of the state or any body politic and corporate or other
28       entity created by any law of the state; or
29             [(C) under any contract issued by any political or taxing subdivision
30       of the state which receives an amount equal to 10% or more of the reve-
31       nues funding its budget of expenditures in any fiscal year from any agency
32       of the state.
33             [(2) The provisions of part (1) of this subsection shall not apply to:
34             [(A) Any contract or bond awarded or issued by any agency of the
35       state or any body politic and corporate or other entity created by any law
36       of the state upon the basis of a pure competitive bid or in accordance with
37       an established fee schedule;
38             [(B) moneys, compensation, allowances or economic opportunities re-
39       ceived from any agency of the state or any body politic and corporate or
40       other entity created by any law of the state, if such benefit accrues to
41       members of the general public or a specific class of individuals other than
42       members of the legislature;
43             [(C) the refund of taxes by the state or any political or taxing


3

  1       subdivision;
  2             [(D) benefits received pursuant to the order of any court or an action
  3       brought in accordance with the Kansas administrative procedure act;
  4             [(E) the receipt of compensation, expenses or other allowances for
  5       service to any university under the jurisdiction of the state board of re-
  6       gents, the Washburn board of regents, a community college or a unified
  7       school district; or
  8             [(F) the receipt of compensation, expenses or other allowances for
  9       service in the classified or unclassified service under the Kansas civil serv-
10       ice act by the spouse of any such officer.
11             [(3) Any person violating the provisions of this subsection shall be
12       guilty of a class A misdemeanor.
13             [(c) Except as otherwise specifically provided in this subsection, no
14       person, in which any legislator, state officer elected on a statewide basis,
15       full-time state officer appointed subject to confirmation by the senate or
16       the spouse of any such officer has a substantial interest or any kind of
17       ownership interest, shall accept any compensation or economic opportu-
18       nity from any agency of the state, any body politic and corporate or other
19       entity created by any law of the state or any political or taxing subdivision
20       of the state which receives an amount equal to 10% or more of the reve-
21       nues funding its budget of expenditures in any fiscal year from any agency
22       of the state. The provisions of this subsection shall not apply to ownership
23       or a substantial interest consisting of stocks or bonds which are publicly
24       traded or bonds issued by agencies of the state or bodies politic or cor-
25       porate or other entities created by any law of the state.
26             [Sec.  4. K.S.A. 46-242 is hereby amended to read as follows:
27       46-242. (a) No state officer or employee shall accept a represen-
28       tation case before a state agency where such officer or employee
29       knows or should know that it is obviously without merit and is
30       being offered with intent to obtain improper influence over a state
31       agency.
32             [(b) No state officer or employee shall use threat or promise of
33       official action in an attempt to influence a state agency in any rep-
34       resentation case.
35             [(c) Except as otherwise provided in this subsection, no legislator, or
36       other representative of any firm of which any legislator is a member or
37       by which any legislator is employed, shall represent any person in any
38       representation case before any state agency except cases in which the
39       legislator is representing only the personal interest of the legislator, the
40       interests of a member of the immediate family of such legislator or a
41       person in which such legislator has a substantial interest. The provisions
42       of this subsection shall not apply to representation in workers compen-
43       sation cases, before the board of tax appeals and proceedings in accord-


4

  1       ance with the Kansas administrative procedure act.
  2             [Sec.  5. K.S.A. 1999 Supp. 74-8904 is hereby amended to read
  3       as follows: 74-8904. Except as otherwise limited by this act, the
  4       authority shall have the following powers to:
  5             [(a) Sue and be sued;
  6             [(b) have a seal and alter such seal;
  7             [(c) make and alter bylaws for its organization and internal
  8       management;
  9             [(d) adopt such rules and regulations as may be necessary to
10       carry out the purposes of this act;
11             [(e) acquire, hold and dispose of real and personal property for
12       its corporate purposes;
13             [(f) appoint officers, agents and employees, prescribe their du-
14       ties and qualifications and fix their compensation;
15             [(g) borrow money and to issue notes, bonds and other obli-
16       gations pursuant to K.S.A. 74-8905, and amendments thereto,
17       whether or not the interest on which is subject to federal income
18       taxation, and to provide for the rights of the lenders or holders
19       thereof;
20             [(h) purchase notes or participations in notes evidencing loans
21       which are secured by mortgages or security interests and to enter
22       into contracts in that regard;
23             [(i) make secured or unsecured loans for any of the purposes
24       for which bonds of the authority may be issued under this act or
25       to low and moderate income multifamily rental housing projects
26       participating in programs established in section 42 of the federal
27       internal revenue code, and provide financing for housing projects
28       and programs in participation with programs established by the
29       United States department of housing and urban development or
30       the Kansas department of commerce and housing; except as oth-
31       erwise provided in this subsection, nothing in this act shall be con-
32       strued to authorize the authority to make loans directly to individ-
33       uals to finance housing developments;
34             [(j) sell mortgages and security interests at public or private
35       sale, to negotiate modifications or alterations in mortgage and se-
36       curity interests, to foreclose on any mortgage or security interest
37       in default or commence any action to protect or enforce any right
38       conferred upon it by any law, mortgage, security agreement, con-
39       tract or other agreement, and to bid for and purchase property
40       which was the subject of such mortgage or security interest at any
41       foreclosure or at any other sale, to acquire or take possession of
42       any such property, and to exercise any and all rights as provided
43       by law for the benefit or protection of the authority or mortgage


5

  1       holders;
  2             [(k) collect fees and charges in connection with its loans, bond
  3       guarantees, commitments and servicing, including, but not limited
  4       to, reimbursement of costs of financing as the authority shall de-
  5       termine to be reasonable and as shall be approved by the authority;
  6             [(l) make and execute contracts for the servicing of mortgages
  7       acquired by the authority pursuant to this act, and to pay the rea-
  8       sonable value of services rendered to the authority pursuant to
  9       those contracts;
10             [(m) enter into agreements with and accept gifts, grants, loans
11       and other aid from the federal government, the state, any state
12       agency, any political subdivision of the state, or any person or cor-
13       poration, foundation or legal entity, and to agree to and comply
14       with any conditions attached to federal and state financial assis-
15       tance not inconsistent with the provisions of this act;
16             [(n) invest moneys of the authority not required for immediate
17       use, including proceeds from the sale of any bonds, in such manner
18       as the board shall determine, subject to any agreement with bond-
19       holders stated in the authorizing resolution providing for the is-
20       suance of bonds;
21             [(o) procure insurance against any loss in connection with its
22       programs, property and other assets;
23             [(p) provide technical assistance and advice to the state or po-
24       litical subdivisions of the state and to enter into contracts with the
25       state or political subdivisions of the state to provide such services.
26       The state or political subdivisions of the state are hereby author-
27       ized to enter into contracts with the authority for such services and
28       to pay for such services as may be provided them;
29             [(q) establish accounts in one or more depositories;
30             [(r) lease, acquire, construct, sell and otherwise deal in and
31       contract concerning any facilities;
32             [(s) have and exercise all of the powers granted to the public
33       housing authorities by the state, except that the authority shall not
34       have the power of eminent domain;
35             [(t) do any and all things necessary or convenient to carry out
36       purposes of the authority and exercise the powers given and
37       granted in this act;
38             [(u) assist minority businesses in obtaining loans or other
39       means of financial assistance. The terms and conditions of such
40       loans or financial assistance, including the charges for interest and
41       other services, will be consistent with the provisions of this act. In
42       order to comply with this requirement, efforts must be made to
43       solicit for review and analysis proposed minority business ven-


6

  1       tures. Basic loan underwriting standards will not be waived to in-
  2       consistently favor minority persons or businesses from the intent
  3       of the authority's lending practices; and
  4             [(v) form one or more subsidiary corporations under K.S.A. 17-
  5       6001 et seq., and amendments thereto, in accordance with the pro-
  6       cedures therein contained. Each subsidiary corporation shall be
  7       subject to the same restrictions and limitations as to the powers
  8       and purposes to which the authority is subject. The authority may
  9       delegate any of its powers, obligations and duties to any subsidiary
10       corporation by inclusion of such powers, obligations and duties in
11       the articles of incorporation of the subsidiary corporation. Subsid-
12       iary corporations so formed shall constitute legal entities separate
13       and distinct from each other, the authority and the state. The au-
14       thority shall not be liable for the debts or obligations or for any
15       actions or inactions of its subsidiary corporations unless the au-
16       thority expressly agrees otherwise in writing. The authority may
17       make loans or grants to a subsidiary corporation from time to time
18       to enable the subsidiary corporation to carry out its purposes. The
19       members of the authority shall constitute all of the directors of
20       each subsidiary corporation;
21             [(w) adopt rules and regulations establishing guidelines for the
22       awarding of professional services contracts for state agencies, in accord-
23       ance with section 4, and amendments thereto; and
24             [(x) adopt rules and regulations establishing guidelines for the accep-
25       tance of competitive bids upon the sale of bonds by any agency of the
26       state, any body politic and corporate or any other entity created by any
27       law of the state.
28             [The state, any municipality or any state commission, public au-
29       thority, agency, officer, department, board or division authorized
30       and empowered to enter into agreements with, to grant, convey,
31       lease or otherwise transfer any property to, or to otherwise trans-
32       act business with the authority, shall have the same authorization
33       and power to engage in these activities with each subsidiary cor-
34       poration of the authority.
35             [One or more such subsidiary corporation may be formed for
36       purposes of establishing state tax credit equity funds to assist in
37       the development of low-income and middle-income housing and
38       obtain financing through participation in the program established
39       in section 42 of the federal internal revenue code.
40             [Actions of the authority or any subsidiary corporation relating
41       to housing pursuant to this subsection (v) shall be carried out in
42       accordance with any terms, conditions and limitations relating to
43       policy issues regarding housing, as established by the secretary of


7

  1       commerce and housing.
  2             [One or more such subsidiary corporations may be formed for
  3       purposes of acquiring or conveying on behalf of the state and pur-
  4       suant to this act a project of statewide as well as local importance,
  5       issuing bonds on behalf of the state pursuant to this act to finance
  6       a project of statewide as well as local importance or otherwise fi-
  7       nancing on behalf of the state pursuant to this act a project of
  8       statewide as well as local importance. The Kansas statewide pro-
  9       jects development corporation is hereby created in accordance
10       with this section.
11             [New Sec.  6. (a) Except as otherwise specifically provided by
12       law, all contracts for the providing of professional services for state
13       agencies shall be awarded in conformance with guidelines estab-
14       lished pursuant to rules and regulations adopted by the board of
15       directors of the Kansas development finance authority upon the
16       basis of competitive bids. The director of purchases and officers
17       and employees of all state agencies shall provide the board of di-
18       rectors of the Kansas development finance authority with such in-
19       formation, records and assistance as the board may require in es-
20       tablishing such guidelines.
21             [All bids shall be solicited by notice published in the Kansas reg-
22       ister. Notice also shall be published not less than once in the jour-
23       nal or other publication of the profession for which such services
24       are to be contracted.
25             [When in the judgment of the board of directors of the Kansas
26       development finance authority, an agency emergency requires im-
27       mediate performance of services, competitive bids need not be
28       required.
29             [(b) As used in this act, ``professional services'' shall mean and
30       include all services provided under contract to agencies of the
31       state by any member of profession, the members of which are li-
32       censed or regulated under the laws of the state of Kansas.
33             [Sec.  7. K.S.A. 75-3738 is hereby amended to read as follows:
34       75-3738. Except as otherwise provided in section 4, and amendments
35       thereto, the director of purchases shall:
36             [(a) Purchase, rent or otherwise provide for the furnishing of
37       supplies, materials, equipment or contractual services for all state
38       agencies.
39             [(b) Have power to authorize any state agency to purchase di-
40       rectly certain specified supplies, materials, equipment or contrac-
41       tual services under prescribed conditions and procedures.
42             [(c) Prescribe the manner in which supplies, materials and
43       equipment shall be purchased, delivered and distributed.


8

  1             [(d) Prescribe the time, manner and authentication of making
  2       requisitions for supplies, materials, equipment and contractual
  3       services.
  4             [(e) Establish standards of quality and quantity and develop
  5       standard specifications in consultation with the several state
  6       agencies.
  7             [(f) Prescribe the manner of making chemical and physical
  8       tests of samples submitted with bids and samples of deliveries to
  9       determine compliance with specifications and the manner in which
10       state agencies shall inspect all deliveries of supplies, materials and
11       equipment.
12             [(g) Prescribe the amounts and form of, accounting for and dis-
13       position of any deposit or bond required to be submitted with a
14       bid or a contract and the amount of any such deposit or bond to
15       be given for the faithful performance of a contract.
16             [(h) Require reports by state agencies of stocks of supplies, ma-
17       terials and equipment on hand and prescribe the form of such
18       reports and deliver copies of such reports to the director of pur-
19       chases and the director of accounts and reports.
20             [Sec.  8. K.S.A. 1999 Supp. 75-3739 is hereby amended to read
21       as follows: 75-3739. In the manner as provided in this act and rules
22       and regulations established thereunder:
23             [(a) All contracts for construction and repairs, and all pur-
24       chases of and contracts for supplies, materials, equipment and con-
25       tractual services to be acquired for state agencies shall be based
26       on competitive bids, except that competitive bids need not be re-
27       quired in the following instances:
28             [(1) For contractual services, supplies, materials, or equipment
29       when, in the judgment of the director of purchases, no competition
30       exists;
31             [(2) when, in the judgment of the director of purchases, chem-
32       icals and other material or equipment for use in laboratories or
33       experimental studies by state agencies are best purchased without
34       competition, or where rates are fixed by law or ordinance;
35             [(3) when, in the judgment of the director of purchases, an
36       agency emergency requires immediate delivery of supplies, ma-
37       terials or equipment, or immediate performance of services;
38             [(4) when any statute authorizes another procedure or pro-
39       vides an exemption from the provisions of this section;
40             [(5) when compatibility with existing contractual services, sup-
41       plies, materials or equipment is the overriding consideration;
42             [(6) when a used item becomes available and is subject to im-
43       mediate sale; or


9

  1             [(7) when, in the judgment of the director of purchases and the
  2       head of the acquiring state agency, not seeking competitive bids
  3       is in the best interest of the state.
  4             [When the director of purchases approves a purchase of or con-
  5       tract for supplies, materials, equipment, or contractual services in
  6       any instance specified in this subsection, the director may delegate
  7       authority to make the purchase or enter the contract under con-
  8       ditions and procedures prescribed by the director.
  9             [The director of purchases shall prepare a detailed report at
10       least once in each calendar quarter of all contracts over $5,000
11       entered into without competitive bids under subsection (a)(1), (2),
12       (3), (5), (6) or (7). The director shall submit the report to the leg-
13       islative coordinating council, the chairperson of the committee on
14       ways and means of the senate, the chairperson of the committee
15       on appropriations of the house of representatives and the chair-
16       person of the Kansas performance review board.
17             [(b)  (1) If the amount of the purchase is estimated to exceed
18       $50,000, sealed bids shall be solicited by notice published once in
19       the Kansas register not less than 10 days before the date stated in
20       the notice for the opening of the bids. The director of purchases
21       may waive this publication of notice requirement when the direc-
22       tor determines that a more timely procurement is in the best in-
23       terest of the state. The director of purchases also may designate a
24       trade journal for the publication. The director of purchases also
25       shall solicit such bids by sending notices by mail to prospective
26       bidders and by posting the notice on a public bulletin board for at
27       least 10 business days before the date stated in the notice for the
28       opening of the bids unless otherwise provided by law. All bids shall
29       be sealed when received and shall be opened in public at the hour
30       stated in the notice.
31             [(2) The director of purchases shall prepare a detailed report
32       at least once in each calendar quarter of all instances in which the
33       director waived publication of the notice of bid solicitations in the
34       Kansas register as provided in this subsection. The director shall
35       submit the report to the legislative coordinating council, the chair-
36       person of the committee on ways and means of the senate, the
37       chairperson of the committee on appropriations of the house of
38       representatives and the chairperson of the Kansas performance
39       review board.
40             [(c) All purchases estimated to exceed approximately $25,000
41       but not more than $50,000, shall be made after receipt of sealed
42       bids following at least three days' notice posted on a public bulletin
43       board.


10

  1             [(d) All purchases estimated to be more than $5,000, but less
  2       than $25,000, may be made after the receipt of three or more bid
  3       solicitations by telephone, telephone facsimile or sealed bid, fol-
  4       lowing at least three days' notice posted on a public bulletin board.
  5       Such bids shall be recorded as provided in subsection (e) of K.S.A.
  6       75-3740, and amendments thereto. Any purchase that is estimated
  7       to be less than $5,000 may be purchased under conditions and
  8       procedures prescribed by the director of purchases. Purchases
  9       made in compliance with such conditions and procedures shall be
10       exempt from other provisions of this section.
11             [(e) With the approval of the secretary of administration, the
12       director of purchases may delegate authority to any state agency
13       to make purchases of less than $25,000 under certain prescribed
14       conditions and procedures. The director of purchases shall pre-
15       pare a report at least once in each calendar quarter of all current
16       and existing delegations of authority to state agencies as provided
17       in this subsection. The director shall submit the report to the leg-
18       islative coordinating council, the chairperson of the committee on
19       ways and means of the senate, the chairperson of the committee
20       on appropriations of the house of representatives and the chair-
21       person of the Kansas performance review board.
22             [(f) Subject to the provisions of subsection (e), contracts and
23       purchases shall be based on specifications approved by the direc-
24       tor of purchases. When deemed applicable and feasible by the di-
25       rector of purchases, such specifications shall include either energy
26       efficiency standards or appropriate life cycle cost formulas, or
27       both, for all supplies, materials, equipment and contractual serv-
28       ices to be purchased by the state. The director of purchases may
29       reject a contract or purchase on the basis that a product is manu-
30       factured or assembled outside the United States. No such specifi-
31       cations shall be fixed in a manner to effectively exclude any re-
32       sponsible bidder offering comparable supplies, materials,
33       equipment or contractual services.
34             [(g) Notwithstanding anything herein to the contrary, all con-
35       tracts with independent construction concerns for the construc-
36       tion, improvement, reconstruction and maintenance of the state
37       highway system and the acquisition of rights-of-way for state high-
38       way purposes shall be advertised and let as now or hereafter pro-
39       vided by law.
40             [(h) The director of purchases may authorize state agencies to
41       contract for services and materials with other state agencies, or
42       with federal agencies, political subdivisions of Kansas, agencies of
43       other states or subdivisions thereof, or private nonprofit educa-


11

  1       tional institutions, without competitive bids.
  2             [(i) The director of purchases may participate in, sponsor, con-
  3       duct, or administer a cooperative purchasing agreement or con-
  4       sortium for purchases of supplies, materials, equipment, and con-
  5       tractual services with federal agencies or agencies of other states
  6       or local units of government. Cooperative purchasing agreements
  7       entered into under this subsection shall not be subject to K.S.A.
  8       75-3739 through 75-3740a, and amendments thereto. Nothing in
  9       this subsection shall allow federal grant moneys to be handled dif-
10       ferently from any other moneys of the state unless the require-
11       ments of the applicable federal grant specifically require such fed-
12       eral moneys to be handled differently.
13             [(j) The director of purchases may delegate authority to any
14       state agency to make purchases under certain prescribed condi-
15       tions and procedures when the acquisition is funded, in whole or
16       in part, from a grant. Purchases made in compliance with such
17       conditions and procedures shall be exempt from other provisions
18       of this section. As used in this subsection the term ``grant'' means
19       a disbursement made from federal or private funds, or a combi-
20       nation of these sources, to a state agency.
21             [(k) The director of purchases shall prepare a detailed report
22       at least once each calendar quarter of all contracts for services,
23       supplies, materials or equipment entered into pursuant to subsec-
24       tion (h), (i) or (j) and submit it to the legislative coordinating coun-
25       cil, the chairperson of the committee on ways and means of the
26       senate, the chairperson of the committee on appropriations of the
27       house of representatives and the chairperson of the Kansas per-
28       formance review board.
29             [(l) Except as otherwise specifically provided by law, no state
30       agency shall enter into any lease of real property without the prior
31       approval of the secretary of administration. A state agency shall
32       submit to the secretary of administration such information relating
33       to any proposed lease of real property as the secretary may re-
34       quire. The secretary of administration shall either approve, modify
35       and approve or reject any such proposed lease.
36             [(m) The director of purchases shall require all bidders on state
37       contracts to disclose all substantial interests held by the bidder in
38       the state.
39             [(n) Notwithstanding anything herein to the contrary, the final de-
40       termination and awarding of all contracts for the providing of professional
41       services for state agencies, shall be awarded in conformance with guide-
42       lines established pursuant to rules and regulations adopted by the board
43       of directors of the Kansas development finance authority and as provided


12

  1       by K.S.A. 74-8904 and section 4, and amendments thereto.
  2             [Sec.  9. K.S.A. 75-3740 is hereby amended to read as follows:
  3       75-3740. (a) Except as provided by K.S.A. 75-3740b, all contracts
  4       and purchases made by or under the supervision of the director of
  5       purchases or any state agency for which competitive bids are re-
  6       quired shall be awarded to the lowest responsible bidder, taking
  7       into consideration conformity with the specifications, terms of de-
  8       livery, and other conditions imposed in the call for bids.
  9             [(b) Except as otherwise provided in subsection (g), the director of
10       purchases shall have power to decide as to the lowest responsible
11       bidder for all purchases, but if:
12             [(1) The dollar amount of the bid received from the lowest re-
13       sponsible bidder from within the state is identical to the dollar
14       amount of the bid received from the lowest responsible bidder
15       from without the state, the contract shall be awarded to the bidder
16       from within the state;
17             [(2) in the case of bids for paper products specified in K.S.A.
18       75-3740b, the dollar amounts of the bids received from two or
19       more lowest responsible bidders are identical, the contract shall
20       be awarded to the bidder whose bid is for those paper products
21       containing the highest percentage of recyclable materials; and
22             [(3) in the case of bids for paper products specified in K.S.A.
23       75-3740b, and amendments thereto, the dollar amounts of the bids
24       received from two or more lowest responsible bidders are identi-
25       cal, the contract shall be awarded to the bidder whose bid is for
26       those paper products containing the highest percentage of recy-
27       cled materials.
28             [(c) Except as otherwise provided in subsection (g), any or all bids
29       may be rejected, and a bid shall be rejected if it contains any ma-
30       terial alteration or erasure. The director of purchases may reject
31       the bid of any bidder who is in arrears on taxes due the state, who
32       is not properly registered to collect and remit taxes due the state
33       or who has failed to perform satisfactorily on a previous contract
34       with the state. The secretary of revenue is hereby authorized to
35       exchange such information with the director of purchases as is nec-
36       essary to effectuate the preceding sentence notwithstanding any
37       other provision of law prohibiting disclosure of the contents of
38       taxpayer records or information. Prior to determining the lowest
39       responsible bidder on contracts for construction of buildings or
40       for major repairs or improvements to buildings for state agencies,
41       the director of purchases shall consider: (1) The criteria and in-
42       formation developed by the secretary of administration, with the
43       advice of the state building advisory commission to rate contrac-


13

  1       tors on the basis of their performance under similar contracts with
  2       the state, local governmental entities and private entities, in ad-
  3       dition to other criteria and information available, and (2) the rec-
  4       ommendations of the project architect, or, if there is no project
  5       architect, the recommendations of the secretary of administration
  6       or the agency architect for the project as provided in K.S.A. 75-
  7       1254, and amendments thereto. In any case where competitive
  8       bids are required and where all bids are rejected, new bids shall
  9       be called for as in the first instance, unless otherwise expressly
10       provided by law.
11             [(d) Before the awarding of any contract for construction of a
12       building or the making of repairs or improvements upon any build-
13       ing for a state agency, the director of purchases shall receive writ-
14       ten approval from the state agency for which the building con-
15       struction project has been approved, that the bids generally
16       conform with the plans and specifications prepared by the project
17       architect, by the secretary of administration or by the agency ar-
18       chitect for the project, as the case may be, so as to avoid error and
19       mistake on the part of the contractors. In all cases where material
20       described in a contract can be obtained from any state institution,
21       the director of purchases shall exclude the same from the contract.
22             [(e) All bids with the names of the bidders and the amounts
23       thereof, together with all documents pertaining to the award of a
24       contract, shall be made a part of a file or record and retained by
25       the director of purchases for five years, unless reproduced as pro-
26       vided in K.S.A. 75-3737, and amendments thereto, and shall be
27       open to public inspection at all reasonable times.
28             [(f) As used in this section and in K.S.A. 75-3741, and amend-
29       ments thereto, ``project architect'' shall have the meaning ascribed
30       thereto in K.S.A. 75-1251, and amendments thereto.
31             [(g) The final determination and awarding of all contracts for the
32       providing of professional services for state agencies, shall be awarded in
33       conformance with guidelines established pursuant to rules and regulations
34       adopted by the board of directors of the Kansas development finance
35       authority and as provided in K.S.A. 74-8904 and section 4, and amend-
36       ments thereto.
37             [Sec.  10. K.S.A. 75-3784 is hereby amended to read as follows:
38       75-3784. (a) Except as otherwise provided in subsection (b), the secre-
39       tary of administration is hereby authorized to contract for ancillary
40       technical services for any project for the construction of a building
41       or for repairs or improvements to a building for a state agency
42       which are not provided by any firm or state agency providing ar-
43       chitectural services or engineering services for the project. Such


14

  1       ancillary technical services shall include but not be limited to ge-
  2       ology services and other soil or subsurface investigation and test-
  3       ing services, surveying, adjusting and balancing of air condition-
  4       ing, ventilating, heating and other mechanical building systems,
  5       testing and consultant services. Such contract shall not be subject
  6       to the provisions of K.S.A. 75-3739, and amendments thereto, or
  7       to the provisions of the acts contained in articles 54 or 58 of chap-
  8       ter 75 of the Kansas Statutes Annotated. Expenditures for such
  9       ancillary technical services shall be made from funds appropriated
10       for the project or available therefor.
11             [(b) The final determination and awarding of all contracts for the
12       providing of professional services for state agencies shall be awarded in
13       conformance with guidelines established pursuant to rules and regulations
14       adopted by the board of directors of the Kansas development finance
15       authority and as provided in K.S.A. 74-8904 and section 4, and amend-
16       ments thereto.
17             [Sec.  11. K.S.A. 75-3799 is hereby amended to read as follows:
18       75-3799. (a) Upon request of the chief administrative officer of a
19       state agency and subject to the approval of the secretary of ad-
20       ministration, the director of purchases may convene a financial
21       services negotiating committee to obtain financial services for the
22       state agency under this section.
23             [(b) Each financial services negotiating committee shall be
24       composed of (1) the director of purchases, or a person designated
25       by the director of purchases, (2) the chief administrative officer of
26       the state agency needing financial services, or a person designated
27       by the officer, and (3) the director of accounts and reports, or a
28       person designated by the director of accounts and reports.
29             [(c) The financial services negotiating committee is authorized
30       to negotiate contracts with qualified parties to provide financial
31       services, including services relating to installment purchase, lease,
32       or lease-purchase of equipment or to other financial related serv-
33       ices needed by the state agency.
34             [(d) Prior to negotiating for financial services, the committee
35       shall advertise for proposals, negotiate with one or more of the
36       firms submitting proposals and select from among those submit-
37       ting such proposals the party to contract with for the purpose of
38       providing financial services.
39             [(e) Contracts entered into pursuant to this section for finan-
40       cial services shall not be subject to the provisions of K.S.A. 75-3738
41       to through 75-3740a, inclusive, and any and amendments thereto.
42             [(f) The provisions of this section shall not apply to the awarding of
43       contracts for the providing of professional services as defined by section


15

  1       4, and amendments thereto.
  2             [Sec.  12. K.S.A. 75-37,102 is hereby amended to read as fol-
  3       lows: 75-37,102. (a) Upon request of the chief administrative offi-
  4       cer of a state agency and subject to the approval of the secretary
  5       of administration, the director of purchases may convene a pro-
  6       curement negotiating committee to obtain services or technical
  7       products for the state agency.
  8             [(b) Each procurement negotiating committee shall be com-
  9       posed of: (1) The director of purchases, or a person designated by
10       the director; (2) the chief administrative officer of the state agency
11       desiring to make the procurement, or a person designated by the
12       officer; and (3) the secretary of administration, or a person des-
13       ignated by the secretary.
14             [(c) The negotiating committee is authorized to negotiate for
15       the procuring state agency contracts with qualified parties to pro-
16       vide services or technical products needed by the state agency.
17             [(d) Prior to negotiating for the procurement, a notice to bid-
18       ders first shall be published in the Kansas register. Upon receipt
19       of bids or proposals, the committee may negotiate with one or
20       more of the firms submitting bids or proposals and select from
21       among those submitting such bids or proposals the party to con-
22       tract with to provide the services or technical products.
23             [(e) Contracts entered into pursuant to this section shall not be
24       subject to the provisions of K.S.A. 75-3738 through 75-3740a, and
25       amendments thereto. Meetings to conduct negotiations pursuant
26       to this section shall not be subject to the provisions of K.S.A. 75-
27       4317 through 75-4320a, and amendments thereto. The director of
28       purchases shall submit a report at least once in each calendar quar-
29       ter to the legislative coordinating council and the chairpersons of
30       the senate committee on ways and means and the house of rep-
31       resentatives committee on appropriations of all contracts entered
32       into pursuant to this section. In the event that the negotiating com-
33       mittee selects a bid which is not the lowest bid on a given contract,
34       the directors report shall contain a rationale explaining why the
35       lowest bidder was not awarded the contract.
36             [(f) Nothing in this section shall be construed as requiring ei-
37       ther negotiations pursuant to this section or bids pursuant to K.S.A.
38       75-3739, and amendments thereto, for the procurement of profes-
39       sional services or services for which, in the judgment of the direc-
40       tor of purchases, meaningful specifications cannot be determined.
41             [(g) The provisions of this section shall not apply to the awarding of
42       contracts for the providing of professional services as defined by section
43       4, and amendments thereto.


16

  1             [Sec.  13. K.S.A. 75-430a is hereby amended to read as follows:
  2       75-430a. (a) Any state agency in the executive branch of state gov-
  3       ernment authorized by law to negotiate for contracts for ancillary
  4       technical services relating to construction or remodeling projects,
  5       or architectural, engineering, actuarial, auditing or accounting services,
  6       other than as an expert witness for the purposes of litigation, shall
  7       publish a notice of the commencement of such negotiations in the
  8       Kansas register at least 15 days prior to the commencement of such
  9       negotiations. The director of purchases may require a state agency
10       to publish such a notice for any other contract that will be
11       negotiated.
12             [This subsection shall not apply to the acquisition of legal services
13       by any state agency in the executive branch, to emergency purchases
14       or services reported in accordance with K.S.A. 75-3739, and
15       amendments thereto, or to the acquisition of any services by any
16       state agency in the legislative or judicial branches of state
17       government.
18             [This subsection shall not apply to sales of property obtained
19       pursuant to the federal property and administrative services act.
20             [(b) Any state agency authorized to negotiate the sale of any
21       personal property of the state or a state agency, other than to an-
22       other state agency, shall publish a notice of the commencement of
23       such negotiations in the Kansas register at least 15 days prior to
24       the commencement of such negotiations.
25             [(c) Any state agency authorized by law to enter into leases on
26       real property of the state or a state agency for the production of
27       oil, natural gas, sand, gravel or any other mineral, or combination
28       thereof, by competitive bids or other procedures as authorized by
29       law, shall publish a notice of intention to enter into a lease for such
30       mineral production in the Kansas register at least 30 days prior to
31       the bid opening or the commencement of such other procedure as
32       authorized by law.
33             [(d) Any state agency authorized by law to lease or sell any real
34       property of the state or any state agency or any interest in such
35       real property, other than to another state agency or a political
36       subdivision, shall publish a notice of intention to lease or sell state
37       real property at least 30 days prior to commencement of bidding
38       or other procedure authorized by law.
39             [Sec.  14. K.S.A. 75-1250 is hereby amended to read as follows:
40       75-1250. The legislature hereby declares it to be the policy of this
41       state to announce publicly all requirements for architectural serv-
42       ices, and to negotiate award contracts for architectural services on
43       the basis of demonstrated competence and qualification for the


17

  1       type of professional services required and at fair and reasonable
  2       prices.
  3             [Sec.  15. K.S.A. 75-1251 is hereby amended to read as follows:
  4       75-1251. As used in K.S.A. 75-1250 through 75-1267, and amend-
  5       ments thereto, unless the context otherwise requires:
  6             [(a) ``Firm'' means such individual, firm, partnership, corpo-
  7       ration, association, or other legal entity which is: (1) permitted by
  8       law to practice the profession of architecture; and (2) maintaining
  9       an office in Kansas staffed by one or more architects who are li-
10       censed by the board of technical professions; or (3) not maintaining
11       an office in Kansas but which is qualified to perform special ar-
12       chitectural services that are required in special cases where in the
13       judgment of the secretary of administration it is necessary to go
14       outside the state to obtain such services.
15             [(b) ``Negotiating committee'' means a committee to negotiate as pro-
16       vided in this act, and consisting of (1) the head of the state agency for
17       which the proposed project is planned or of the state agency which con-
18       trols and supervises the operation and management of the institution for
19       which the proposed project is planned, if such is the case, or a person
20       designated by the head of the agency, (2) the head of the institution for
21       which the proposed project is planned, or a person designated by the
22       head of the institution, and (3) the director of the division of architectural
23       services, or a person designated by the director, who shall act as chair-
24       person of the committee. When the proposed project is not planned for
25       an institution, the state agency head shall designate a second person in
26       lieu of the head of an institution.
27             [(c) ``Architectural services'' means those services described in sub-
28       section (e) of K.S.A. 74-7003, and amendments thereto.
29             [(d) (c) ``Project architect'' means a firm employed under this
30       act for a particular project.
31             [(e) (d) ``State building advisory commission'' means the state
32       building advisory commission created by K.S.A. 75-3780, and
33       amendments thereto, or any duly authorized officer or employee
34       of such commission.
35             [(f) (e) ``State agency'' includes any state institution.
36             [Sec.  16. K.S.A. 75-1253 is hereby amended to read as follows:
37       75-1253. (a) Whenever it becomes necessary in the judgment of
38       the secretary of administration or in any case when the total cost of a
39       project for the construction of a building or for major repairs or
40       improvements to a building for a state agency is expected to exceed
41       $500,000, the secretary of administration shall convene a negotiating
42       committee. The state building advisory commission shall prepare a list of
43       at least three and not more than five firms which are, in the opinion of


18

  1       the state building advisory commission, qualified to serve as project ar-
  2       chitect for the project. Such list shall be submitted to the negotiating
  3       committee, without any recommendation of preference or other recom-
  4       mendation. The secretary of administration shall meet with each negoti-
  5       ating committee and shall advise the negotiating committee but shall have
  6       no vote in the selection process or other matter upon which the com-
  7       mittee may vote notify the director of purchases that bids should be so-
  8       licited for the services of a project architect for such project.
  9             [(b) The secretary of administration may combine two or more
10       separate projects for the construction of buildings or for major
11       repairs or improvements to buildings for state agencies, for the
12       purpose of procuring architectural services for all such projects
13       from a single firm. In each case, the combined projects shall be
14       construed to be a single project for all purposes under the provi-
15       sions of K.S.A. 75-1250 to through 75-1267, inclusive, and amend-
16       ments thereto.
17             [(c)  (1) This section shall not apply to any repetitive project
18       with a standard plan that was originally designed by the secretary
19       of administration or an agency architect pursuant to paragraphs
20       (2) and (3) of subsection (a) of K.S.A. 75-1254, and amendments
21       thereto. In such a case, the secretary of administration or the
22       agency architect may provide architectural services for the repet-
23       itive project. The repetitive design exception authorized by this
24       subsection shall not apply if the in-house architectural design sec-
25       tion of the division of architectural services has a staff of greater
26       than one chief architect and five designers.
27             [(2) ``Repetitive project'' means a project which uses the same
28       standard design as was used for a project constructed previously,
29       including, but not limited to, sub-area shops and salt domes of the
30       department of transportation and showers and toilet buildings of
31       the department of wildlife and parks. The plans for the project
32       may be modified as required for current codes, operational needs
33       or cost control. The total floor area of the project may be increased
34       by an area of not more than 25% of the floor area of the originally
35       constructed project, except that not more than 25% of the linear
36       feet of the exterior and interior walls may be moved for such in-
37       crease. A project shall not be considered to be repetitive if it has
38       been over four years between the substantial completion of the
39       last project using the design plans and the appropriation of funds
40       for the proposed project.
41             [Sec.  17. K.S.A. 75-1254 is hereby amended to read as follows:
42       75-1254. (a) Whenever a negotiating committee is not convened in
43       accordance with K.S.A. 75-1253 and amendments thereto contract for


19

  1       architectural services is not proposed for a proposed any project for the
  2       construction of a building or for major repairs or improvements
  3       to a building for a state agency, the secretary of administration
  4       shall:
  5             [(1) Conduct discussions with at least three firms regarding the pro-
  6       posed project, determine the architectural services desired for such pro-
  7       ject, and negotiate a contract with one of such firms as project architect
  8       for the desired architectural services for all phases of the project which
  9       are authorized by appropriations therefor at a rate of compensation not
10       in excess of those specified in K.S.A. 75-1263 and amendments thereto;
11             [(2) undertake to provide all or part of the architectural services for
12       such project, including the construction administration services as de-
13       scribed in K.S.A. 75-1260 and amendments thereto; or
14             [(3) designate a qualified employee of the state agency or in-
15       stitution for which the project is being constructed, or of the state
16       agency which controls and supervises the operation and manage-
17       ment of such institution, to provide all or part of such services for
18       the project; for the purposes of providing such architectural serv-
19       ices, such employee shall be known as the agency architect for the
20       project.
21             [(b) The employee of such agency designated as the agency
22       architect for the project shall be a licensed architect under the
23       provisions of K.S.A. 74-7001 to through 74-7035, inclusive, and
24       amendments thereto and shall be found by the secretary of ad-
25       ministration to be qualified to perform all of the architectural serv-
26       ices for the particular project, including the construction admin-
27       istration services as described in K.S.A. 75-1260, and amendments
28       thereto.
29             [(c) The secretary of administration or the agency architect for
30       the project, as the case may be, shall provide the preliminary de-
31       sign services, construction contract documents, bidding services
32       and construction administration services as described in K.S.A. 75-
33       1260, and amendments thereto, for each phase of the project for
34       which no firm is employed as project architect.
35             [Sec.  18. K.S.A. 75-1255 is hereby amended to read as follows:
36       75-1255. A written description of the scope or program of the pro-
37       ject shall be prepared by the head of the state agency for which
38       the project is proposed and submitted to the negotiating committee.
39       The negotiating committee may approve the description as submitted or
40       may revise and amend or reject all or any part of such description. The
41       description in the form approved by the negotiating committee shall be
42       used in the negotiations between the committee and qualified firms.
43       Such description shall be the basis for the project development and


20

  1       the project description shall not be altered therefrom without the prior
  2       approval of the negotiating committee.
  3             [Sec.  19. K.S.A. 75-1258 is hereby amended to read as follows:
  4       75-1258. (a) Each contract for architectural services negotiated un-
  5       der K.S.A. 75-1254 or 75-1257, and amendments thereto awarded, shall
  6       be entered into between the secretary of administration and the
  7       firm selected as the project architect. Each such contract shall re-
  8       quire the project architect to submit evidence which is satisfactory
  9       to the secretary of administration that the firm has general pro-
10       fessional liability insurance or specific professional liability insur-
11       ance which is adequate for the project.
12             [(b) In addition to the requirements in subsection (a), each
13       such contract for architectural services shall specify the responsi-
14       bilities undertaken by the project architect and that the project
15       architect shall be responsible for all of such architect's negligent
16       acts, errors or omissions in the performance of such contract.
17             [Sec.  20. K.S.A. 75-1265 is hereby amended to read as follows:
18       75-1265. Whenever the negotiating committee and the secretary of
19       administration, with the advice of the state building advisory com-
20       mission, agree with regard to a specific project that the best inter-
21       ests of the state would be served, the negotiating committee may enter
22       into a contract with any qualified company or person for construc-
23       tion management services for such project shall be awarded in con-
24       formance with guidelines established pursuant to rules and regulations
25       adopted by the board of directors of the Kansas development finance
26       authority and as provided in K.S.A. 74-8904 and section 4, and amend-
27       ments thereto. Such services may include: Detail cost estimating,
28       critical path method scheduling and monitoring, drafting contract
29       documents for necessary phasing and grouping, drafting contracts
30       and change orders, full-time inspection and checking and approv-
31       ing shop drawings, color schedules, and materials. The fee for serv-
32       ices under this section shall be negotiated by the negotiating commit-
33       tee but shall not exceed one percent (1%) of the estimated cost of
34       the project, and such fees shall be in addition to fees authorized
35       under K.S.A. 75-1263, and amendments thereto.
36             [Sec.  21. K.S.A. 1999 Supp. 40-3410 is hereby amended to
37       read as follows: 40-3410. When the insurer of a health care pro-
38       vider or inactive health care provider covered by the fund has
39       agreed to settle its liability on a claim against its insured or when
40       the self-insurer has agreed to settle liability on a claim and the
41       claimant's demand is in an amount in excess of such settlement, or
42       where a claim is against an inactive health care provider covered
43       by the fund who does not have liability insurance in effect which


21

  1       is applicable to the claim, or where it would otherwise be in the
  2       best interest of the fund, the claimant and the board of governors
  3       may negotiate on an amount to be paid from the fund. The board
  4       of governors may employ request that independent counsel be em-
  5       ployed to represent the interest of the fund in any such negotia-
  6       tions. All contracts for the providing of such services shall be awarded in
  7       conformance with guidelines established pursuant to rules and regulations
  8       adopted by the board of directors of the Kansas development finance
  9       authority and as provided in K.S.A. 74-8904 and section 4, and amend-
10       ments thereto. In the event the claimant and the board of governors
11       agree upon an amount the following procedure shall be followed:
12             [(a) A petition shall be filed by the claimant with the court in
13       which the action is pending against the health care provider or the
14       inactive health care provider, or if none is pending, in a court of
15       appropriate jurisdiction, for approval of the agreement between
16       the claimant and the board of governors.
17             [(b) The court shall set such petition for hearing as soon as the
18       court's calendar permits, and notice of the time, date and place of
19       hearing shall be given to the claimant, the health care provider or
20       inactive health care provider, and to the board of governors.
21             [(c) At such hearing the court shall approve the proposed set-
22       tlement if the court finds it to be valid, just and equitable.
23             [(d) In the event the settlement is not approved, the procedure
24       set forth in K.S.A. 40-3411 and amendments thereto shall be
25       followed.
26             [Sec.  22. K.S.A. 1999 Supp. 40-3411 is hereby amended to
27       read as follows: 40-3411. (a) In any claim in which the insurer of a
28       health care provider or inactive health care provider covered by
29       the fund has agreed to settle its liability on a claim against its in-
30       sured or when the self-insurer has agreed to settle liability on a
31       claim and the claimant's demand is in an amount in excess of such
32       settlement, to which the board of governors does not agree, or
33       where the claim is against an inactive health care provider covered
34       by the fund who does not have liability insurance in effect which
35       is applicable to the claim and the claimant and board of governors
36       cannot agree upon a settlement, an action must be commenced by
37       the claimant against the health care provider or inactive health
38       care provider in a court of appropriate jurisdiction for such dam-
39       ages as are reasonable in the premises. If an action is already pend-
40       ing against the health care provider or inactive health care pro-
41       vider, the pending action shall be conducted in all respects as if
42       the insurer or self-insurer had not agreed to settle.
43             [(b) Any such action against a health care provider covered by


22

  1       the fund or inactive health care provider covered by the fund who
  2       has liability insurance in effect which is applicable to the claim
  3       shall be defended by the insurer or self-insurer in all respects as
  4       if the insurer or self-insurer had not agreed to settle its liability.
  5       Notwithstanding any other provision of law, the insurer or self-
  6       insurer shall be reimbursed from the fund for the costs of such
  7       defense incurred after the settlement agreement was reached, in-
  8       cluding a reasonable attorney's fee not to exceed the maximum
  9       hourly rate established by the board of governors. The board of
10       governors is authorized to employ may request that independent coun-
11       sel be employed in any such action against a health care provider
12       or an inactive health care provider covered by the fund. All con-
13       tracts for the providing of such services shall be awarded in conformance
14       with guidelines established pursuant to rules and regulations adopted by
15       the board of directors of the Kansas development finance authority and
16       as provided in K.S.A. 74-8904 and section 4, and amendments thereto. If
17       the primary carrier or self-insurer determines that the policy limits
18       or the self-insured amount of basic coverage should be tendered
19       to the fund in order to relieve itself of further costs of defense, it
20       may do so in the manner specified by the board of governors. In
21       the event of such a tender, the fund shall become responsible for
22       the conduct of the defense. In the event of such a tender, competitive
23       bids shall not be required and the board of governors may employ
24       the attorney retained by the primary carrier or self-insurer or ap-
25       point other counsel to represent such health care provider. In any
26       event, the board of governors shall pay attorneys' fees at a rate not
27       to exceed the maximum hourly rate established by the board of
28       governors. Under such circumstances, the fund shall have no lia-
29       bility for attorneys' fees to any attorney not so appointed.
30             [(c) In any such action the health care provider or the inactive
31       health care provider against whom claim is made shall be obligated
32       to attend hearings and trials, as necessary, and to give evidence.
33             [(d) The costs of the action shall be assessed against the fund
34       if the recovery is in excess of the amount offered by the board of
35       governors to settle the case and against the claimant if the recovery
36       is less than such amount.
37             [Sec.  23. K.S.A. 1999 Supp. 44-566a is hereby amended to
38       read as follows: 44-566a. (a) There is hereby created in the state
39       treasury the workers compensation fund. The commissioner of in-
40       surance shall be responsible for administering the workers com-
41       pensation fund, and all payments from the workers compensation
42       fund shall be upon warrants of the director of accounts and reports
43       issued pursuant to vouchers approved by the commissioner of in-


23

  1       surance or a person or persons designated by the commissioner.
  2       The commissioner of insurance annually shall report to the gov-
  3       ernor and the legislature the receipts and disbursements from the
  4       workers compensation fund during the preceding fiscal year.
  5             [(b)  (1) On June 1 of each year, the commissioner of insurance
  6       shall impose an assessment against all insurance carriers, self-in-
  7       surers and group-funded workers compensation pools insuring the
  8       payment of compensation under the workers compensation act,
  9       and the same shall be due and payable to the commissioner on the
10       following July 1, the proceeds of which shall be credited to the
11       workers compensation fund. The total amount of each such as-
12       sessment shall be equal to an amount sufficient, in the opinion of
13       the commissioner of insurance, to pay all amounts, including at-
14       torney fees and costs, which may be required to be paid from such
15       fund during the current fiscal year, less the amount of the esti-
16       mated unencumbered balance in the workers compensation fund
17       as of the June 30 immediately preceding the date the assessment
18       is due and payable under this section. The total amount of each
19       such assessment shall be apportioned among those upon whom it
20       is imposed, such that each is assessed an amount that bears the
21       same relation to such total assessment as the amount of money paid
22       or payable in workers compensation claims by such insurance car-
23       rier, self-insurer or group-funded workers compensation pool in
24       the immediately preceding calendar year bears to all such claims
25       paid or payable during such calendar year. The commissioner of
26       insurance may establish experience-based rates of assessments un-
27       der this subsection and make adjustments in the assessments im-
28       posed under this subsection based on the success of accident pre-
29       vention programs under K.S.A. 44-5,104, and amendments
30       thereto, and other employer safety programs.
31             [(2) The commissioner of insurance shall remit all moneys re-
32       ceived by or for such commissioner under this subsection to the
33       state treasurer. Upon receipt of any such remittance the state trea-
34       surer shall deposit the entire amount thereof in the state treasury
35       to the credit of the workers compensation fund.
36             [(c)  (1) Whenever the workers compensation fund may be
37       made liable for the payment of any amounts in proceedings under
38       the workers compensation act, the commissioner of insurance, in
39       the capacity of administrator of such fund, shall be impleaded in
40       such proceedings and shall represent and defend the workers com-
41       pensation fund. The commissioner of insurance shall be deemed
42       impleaded in any such proceedings whenever written notice of the
43       proceedings setting forth the nature of the liability asserted


24

  1       against the workers compensation fund, is given to the commis-
  2       sioner of insurance. The commissioner of insurance may be made
  3       a party in this manner by any party to the proceedings. A copy of
  4       the written notice shall be given to the director and to all other
  5       parties to the proceedings.
  6             [(2) The administrative law judge shall dismiss the workers
  7       compensation fund from any proceeding where the administrative
  8       law judge has determined that there is insufficient evidence to
  9       indicate involvement by the workers compensation fund.
10             [(3) In any case in which the workers compensation fund has
11       been impleaded by the employer or insurance carrier and where
12       an award has been entered deciding all of the issues in the em-
13       ployee's claim against the employer, but not deciding the issues
14       between the employer and the fund, the fund may file an appli-
15       cation with the administrative law judge requesting that the fund
16       be dismissed from the case with prejudice. The employer shall
17       have a period of six months from the filing of the application in
18       which to complete the employer's evidence on the fund issues and
19       submit the case to the administrative law judge for decision. The
20       fund shall then have a period of 60 days after the submission of
21       the employer's evidence to submit its own evidence concerning the
22       fund issues in the case. If the employer fails to do so, the admin-
23       istrative law judge shall dismiss the fund from the case with prej-
24       udice on the judge's own motion.
25             [(d) The commissioner of insurance, in the capacity of admin-
26       istrator of the workers compensation fund, may make settlements
27       of any amounts which may be payable from the workers compen-
28       sation fund with regard to any claim under the workers compen-
29       sation act, subject to the approval of the director.
30             [(e) The workers compensation fund shall be liable for:
31             [(1) Payment of awards to handicapped employees in accord-
32       ance with the provisions of K.S.A. 44-569, and amendments
33       thereto, for claims arising prior to July 1, 1994;
34             [(2) payment of workers compensation benefits to an employee
35       who is unable to receive such benefits from such employee's em-
36       ployer under the conditions prescribed by K.S.A. 44-532a, and
37       amendments thereto;
38             [(3) reimbursement of an employer or insurance carrier pur-
39       suant to the provisions of K.S.A. 44-534a and amendments thereto,
40       subsection (d) of K.S.A. 44-556 and amendments thereto, subsection
41       (c) of K.S.A. 44-569 and amendments thereto and K.S.A. 44-569a, and
42       amendments thereto to such sections;
43             [(4) payment of the actual expenses of the commissioner of in-


25

  1       surance which are incurred for administering the workers com-
  2       pensation fund, subject to the provisions of appropriations acts;
  3       and
  4             [(5) any other payments or disbursements provided by law.
  5             [(f) If it is determined that the workers compensation fund is
  6       not liable as described in subsection (e), attorney fees incurred by
  7       the workers compensation fund may be assessed against the party
  8       who has impleaded the workers compensation fund other than im-
  9       pleadings pursuant to K.S.A. 44-532a, and amendments thereto.
10             [(g) The commissioner of insurance shall provide for the im-
11       plementation of the workers compensation fund as provided in this
12       section and shall be responsible for ensuring the fund's adequacy
13       to meet and pay claims awarded against it.
14             [(h) All contracts to provide any legal services for the commissioner
15       of insurance in the administration of the workers compensation fund shall
16       be submitted to competitive bid and the contract shall be awarded in
17       conformance with guidelines established pursuant to rules and regulations
18       adopted by the board of directors of the Kansas development finance
19       authority and as provided in K.S.A. 74-8904 and section 4, and amend-
20       ments thereto.
21             [Sec.  24. K.S.A. 59-2006 is hereby amended to read as follows:
22       59-2006. (a) A person's spouse and the parents of a person who is
23       a minor shall be bound by law to support the person if the person
24       is committed to, admitted to, transferred to or received as a patient
25       at a state institution. Payment for the maintenance, care and treat-
26       ment of any patient in a state institution irrespective of the manner
27       of such patient's admission shall be paid by the patient, by the
28       conservator of such patient's estate or by any person bound by law
29       to support such patient. The secretary of social and rehabilitation
30       services may recover the basic maximum charge established as
31       provided for in subsection (a) of K.S.A. 59-2006b, and amendments
32       thereto, or the actual per patient costs established as provided in
33       subsection (b) of K.S.A. 59-2006b, and amendments thereto, as
34       compensation for the maintenance, care and treatment of a patient
35       from such patient when no legal disability exists, or from the estate
36       of such patient or from any person bound by law to support such
37       patient.
38             [(b) The secretary of social and rehabilitation services shall pe-
39       riodically and not less than once during each fiscal year make writ-
40       ten demand upon the patient or person liable for the amount
41       claimed by the secretary to have accrued since the last demand
42       was made, and no action shall be commenced by the secretary
43       against such patient or such patient's responsible relatives for the


26

  1       recovery thereof unless such action is commenced within three
  2       years after the date of such written demand. When any part of the
  3       amount claimed to be due has been paid or any acknowledgment
  4       of an existing liability, debt or claim, or any promise to pay the
  5       same has been made by the obligor, an action may be brought in
  6       such case within three years after such payment, acknowledgment
  7       or promise, but such acknowledgment or promise must be in writ-
  8       ing signed by the party to be charged thereby. If there are two or
  9       more joint debtors, no one of whom is entitled to act as the agent
10       of the others, no such joint debtor shall lose the benefit of the
11       statute of limitations so as to be chargeable by reason of any ack-
12       nowledgment, promise or payment made by any other or others
13       of them, unless done with the knowledge and consent of, or ratified
14       by, the joint debtor sought to be charged. The secretary may ac-
15       cept voluntary payments from patients or relatives or from any
16       source, even though the payments are in excess of required
17       amounts and shall deposit the same as provided by law.
18             [(c) The secretary of social and rehabilitation services shall
19       have the power to compromise and settle any claim due or claimed
20       to be due from such patient or such patient's relatives who are
21       liable for the patient's care, maintenance and treatment and upon
22       payment of a valuable consideration by the patient or the persons
23       bound by law to support such patient, may discharge and release
24       the patient or relative of any or all past liability herein. Whenever
25       the secretary shall negotiate a compromise agreement to settle any
26       claim due or claimed to be due from a patient or such patient's
27       relatives responsible under this act to support the patient, no ac-
28       tion shall thereafter be brought or claim made for any amounts
29       due for the care, maintenance and treatment of such patient in-
30       curred prior to the effective date of the agreement entered into,
31       except for the amounts provided for in the agreement if the pro-
32       visions of such compromise agreement are faithfully performed.
33       In the event the terms and conditions of such compromise agree-
34       ment are not complied with, such failure to comply shall serve to
35       revive and reinstate the original amount of the claim due before
36       negotiation of such compromise agreement, less amounts paid on
37       the claim.
38             [(d) The secretary of social and rehabilitation services may re-
39       quest that a contract be entered into with an attorney admitted to
40       practice in this state or with any debt collection agency doing busi-
41       ness within or without this state to assist in the collection of
42       amounts claimed to be due under the provisions of this section.
43       The fee for services of such attorney or debt collection agency shall


27

  1       be based on the amount of moneys actually collected. No fee shall
  2       be in excess of 50% of the total amount of moneys actually col-
  3       lected. All funds collected less the fee for services as provided in
  4       the contract shall be remitted to the secretary of social and reha-
  5       bilitation services within 45 days from the date of collection.
  6             [Contracts entered pursuant to this section, except as otherwise
  7       provided with regards to a contract with an attorney, may be negotiated
  8       by the secretary of social and rehabilitation services and shall not
  9       be subject to the competitive bid requirements of K.S.A. 75-3739
10       through 75-3741, and amendments thereto. Subject to the provisions
11       limiting the fee for services, each contract with an attorney under
12       this section shall be entered into pursuant to competitive bids and
13       the contract shall be awarded in conformance with guidelines es-
14       tablished pursuant to rules and regulations adopted by the board
15       of directors of the Kansas development finance authority and as
16       provided in K.S.A. 74-8904 and section 4, and amendments
17       thereto.
18             [(e) Before entering into a contract with a debt collection
19       agency under subsection (d), the secretary of social and rehabili-
20       tation services shall require a bond from the debt collection agency
21       in an amount not in excess of $100,000 guaranteeing compliance
22       with the terms of the contract.
23             [(f) A debt collection agency entering into a contract with the
24       secretary of social and rehabilitation services for the collection of
25       amounts claimed to be due under this section shall agree that it is
26       receiving income from sources within the state or doing business
27       in the state for purposes of the Kansas income tax act.
28             [(g) As used in this section, ``state institution'' has the meaning
29       provided by K.S.A. 59-2006b, and amendments thereto.
30             [(h) When a minor becomes a patient of a state institution, an
31       assignment of all past, present and future support rights of the
32       minor which are possessed by either parent or any other person
33       entitled to receive support payments for the minor is conveyed by
34       operation of law to the secretary of social and rehabilitation serv-
35       ices. The assignment of support rights shall be effective upon the
36       minor's admission as a patient of any state institution, regardless
37       of the manner of admission, without the requirement that any writ-
38       ten assignment or similar document be signed by the parent or
39       other person entitled to receive support payments for the minor.
40       When a minor becomes a patient of a state institution, the parent
41       or other person entitled to receive support payments for the minor
42       is also deemed to have appointed the secretary of social and re-
43       habilitation services or the secretary's designee, as attorney in fact


28

  1       to perform the specific act of negotiating and endorsing all drafts,
  2       checks, money orders or other negotiable instruments represent-
  3       ing support payments on behalf of the minor. This limited power
  4       of attorney shall remain in effect until the assignment of support
  5       rights has been terminated in full. For any minor who is a patient
  6       of a state institution on the effective date of this act and whose
  7       past, present and future support rights are not assigned to the
  8       secretary of social and rehabilitation services, the assignment of
  9       support rights and limited power of attorney shall be effective on
10       the effective date of this act if notice of the assignment is sent to
11       the person otherwise entitled to receive support payments for the
12       minor.
13             [The assignment of support rights provided in this section shall
14       remain in full force and effect until the minor is no longer a patient
15       of a state institution. When the minor is no longer a patient of a
16       state institution, the assignment shall remain in effect as to unpaid
17       support obligations due and owing as of the last day of the month
18       in which the minor ceases to be a patient, until the claim of the
19       secretary of social and rehabilitation services for the maintenance,
20       care and treatment of the minor is satisfied. Nothing in this section
21       shall affect or limit the rights of the secretary of social and reha-
22       bilitation services under any assignment pursuant to K.S.A. 39-709,
23       and amendments thereto.
24             [Sec.  25. K.S.A. 66-1513 is hereby amended to read as follows:
25       66-1513. (a) In accordance with the provisions of subsection (b),
26       the state corporation commission is hereby authorized to contract
27       for professional services, including but not limited to the services
28       of engineers, accountants, attorneys and economists, to assist in
29       investigations and appraisals under K.S.A. 66-1502, and amend-
30       ments thereto, which assistance may include preparation and pres-
31       entation of expert testimony, when the expenses of such profes-
32       sional services are required to be assessed under that statute
33       against the public utilities involved.
34             [(b) Such contracts shall be negotiated by a negotiating committee
35       composed of the following persons: The general counsel of the state cor-
36       poration commission or the designee of the general counsel; the director
37       of the budget or the designee of the director; the director of accounts
38       and reports or the designee of the director; and the director of the ap-
39       propriate division of the state corporation commission, as determined and
40       designated by the chairperson of the state corporation commission, or the
41       designee of the director. When a contract authorized under subsection
42       (a) is proposed to be entered into, the general counsel of the state cor-
43       poration commission or the designee of the general counsel shall convene


29

  1       the negotiating committee. The negotiating committee shall consider all
  2       proposals by persons applying to perform such contract and shall award
  3       the contract. All contracts for the providing of professional services, as
  4       defined by section 4, and amendments thereto, shall be submitted to com-
  5       petitive bid and the contract shall be awarded in conformance with guide-
  6       lines established pursuant to rules and regulations adopted by the board
  7       of directors of the Kansas development finance authority and as provided
  8       in K.S.A. 74-8904 and section 4, and amendments thereto.
  9             [(c) Except as otherwise provided in subsection (b), such contracts
10       shall not be subject to the provisions of K.S.A. 75-3739, and amend-
11       ments thereto, or to the provisions of the acts contained in article
12       58 of chapter 75 of the Kansas Statutes Annotated.
13             [(d) As used in this section, ``person'' means an individual, firm,
14       partnership, corporation, association or other legal entity.
15             [Sec.  26. K.S.A. 75-5310a is hereby amended to read as fol-
16       lows: 75-5310a. The secretary of social and rehabilitation services
17       is hereby authorized to contract for the services of persons to assist
18       in the preparation of expert testimony for litigation and to act as
19       expert witnesses in litigation. Any such contracts, other than con-
20       tracts for professional services as defined by section 4, and amendments
21       thereto, shall be exempt from the competitive bid requirements of
22       K.S.A. 75-3739, and amendments thereto. All contracts for the pro-
23       viding of professional services, as defined by section 4, and amendments
24       thereto, shall be submitted to competitive bids and the contract shall be
25       awarded in conformance with guidelines established pursuant to rules and
26       regulations adopted by the board of directors of the Kansas development
27       finance authority and as provided in K.S.A. 74-8904 and section 4, and
28       amendments thereto.
29             [Sec.  27. K.S.A. 1999 Supp. 76-745 is hereby amended to read
30       as follows: 76-745. (a) As used in this section ``negotiating commit-
31       tee'' means a committee to negotiate as provided in this act, and
32       consisting of the executive officer of the state board of regents or
33       a person designated by the executive officer, two representatives
34       of the state educational institutions as designated by the state
35       board of regents and the director of purchases or a person desig-
36       nated by the director of purchases.
37             [(b) The state board of regents shall convene a negotiating
38       committee to obtain collection services. The negotiating commit-
39       tee is authorized to negotiate contracts with one or more qualified
40       parties to provide collection services for the state educational in-
41       stitutions and such contracts may be entered on a multi-year basis.
42             [(c) Prior to negotiating for collection services, the committee
43       shall advertise for proposals, negotiate with firms submitting pro-


30

  1       posals and select among those submitting such proposals the party
  2       or parties to contract with for the purposes of collection services.
  3             [(d) Except as otherwise provided in subsection (e), contracts en-
  4       tered into pursuant to this section shall not be subject to the pro-
  5       visions of K.S.A. 75-3738 to through 75-3740a, inclusive, and amend-
  6       ments thereto.
  7             [(e) All contracts for the providing of professional services, as defined
  8       by section 4, and amendments thereto, shall be submitted to competitive
  9       bid and the contract awarded in conformance with guidelines established
10       pursuant to rules and regulations adopted by the board of directors of the
11       Kansas development finance authority and as provided in K.S.A. 74-8904
12       and section 4, and amendments thereto.
13             [Sec.  28. K.S.A. 75-5801 is hereby amended to read as follows:
14       75-5801. The legislature hereby declares it to be the policy of this
15       state to publicly announce all requirements for engineering serv-
16       ices, and to negotiate award contracts for engineering services on
17       the basis of demonstrated competence and qualification for the
18       type of professional services required and at fair and reasonable
19       fees.
20             [Sec.  29. K.S.A. 75-5802 is hereby amended to read as follows:
21       75-5802. As used in this act unless the context specifically requires
22       otherwise:
23             [(a) ``Firm'' means any individual, firm, partnership, corpora-
24       tion, association, or other legal entity permitted by law to practice
25       the profession of engineering and provide engineering services or
26       practice the profession of land surveying and provide land survey-
27       ing services.
28             [(b) ``Engineering services'' means those services described in
29       subsection (i) of K.S.A. 74-7003, and amendments thereto.
30             [(c) ``Land surveying'' means those services described in sub-
31       section (j) of K.S.A. 74-7003, and amendments thereto.
32             [(d) ``Agency head'' means the chief administrative officer of a
33       state agency, as that term is defined in subsection (3) of K.S.A. 75-
34       3701, and amendments thereto, but shall not include the chief ad-
35       ministrative officer of any state institution.
36             [(e) ``Negotiating committee'' means a committee designated to ne-
37       gotiate as provided in this act, and consisting of (1) the agency head of
38       the state agency for which the proposed project is planned, or a person
39       designated by such agency head, (2) the secretary of administration, or a
40       person designated by said secretary, and (3) the chief administrative of-
41       ficer of the state institution for which the proposed project is planned, or
42       when the proposed project is not planned for a state institution, the
43       agency head shall designate a second person in lieu of the chief admin-


31

  1       istrative officer of a state institution.
  2             [(f) ``Project'' means any capital improvement project or any
  3       study, plan, survey or program activity of a state agency, including
  4       development of new or existing programs and preparation of fed-
  5       eral grant applications.
  6             [(g) (f) ``State building advisory commission'' means the state
  7       building advisory commission created by K.S.A. 75-3780, and
  8       amendments thereto, or any duly authorized officer or employee
  9       of such commission.
10             [Sec.  30. K.S.A. 75-5803 is hereby amended to read as follows:
11       75-5803. (a) In the procurement of engineering or land surveying
12       services, each agency head which utilizes engineering or land sur-
13       veying services shall encourage firms engaged in the lawful prac-
14       tice of their profession to annually submit a statement of qualifi-
15       cations and performance data to the agency head and to the state
16       building advisory commission. The agency head shall thereafter
17       cause to be prepared annually a list of firms qualified, based upon
18       criteria established and published by such agency head, to provide
19       such engineering or land surveying services.
20             [(b) Except as otherwise provided in subsection (c), when a project
21       requiring engineering or land surveying services is proposed for a state
22       agency, the agency head for such state agency shall evaluate current state-
23       ments of qualifications and performance data on file with the agency
24       head, together with those that may be submitted by other firms regarding
25       the proposed project. The agency head may establish time frames for the
26       receipt of qualifications statements and performance data from any firm
27       wishing to be considered for the proposed project. The agency head shall
28       conduct discussions with not less than three firms regarding anticipated
29       concepts and the relative utility of alternative methods of approach for
30       furnishing the required engineering or land surveying services and then
31       such agency head shall select from among all such firms, on a rotational
32       basis, the firm to perform the engineering or land surveying services,
33       unless such firm refuses to provide such engineering or land surveying
34       services.
35             [(c) (b) In any case where a project requiring engineering or
36       land surveying services is proposed which concerns the construc-
37       tion of any building or facility or any major repairs or improve-
38       ments to any building or facility, including in any case but not
39       limited to any heating, cooling or power facility, for a state agency
40       and a negotiating committee is not convened under K.S.A. 75-5804 and
41       amendments thereto, the agency head of the state agency shall notify
42       the state building advisory commission and shall request a list of director
43       of purchases that it is the desire of the agency that contracts be entered


32

  1       into with firms qualified to provide the engineering or land sur-
  2       veying services for such project. Upon receipt of any such request,
  3       the state building advisory commission shall evaluate the current state-
  4       ments of qualifications and performance data on file, together with those
  5       statements that may be submitted by other firms, regarding the proposed
  6       project and other information developed and available to the state build-
  7       ing advisory commission, and shall prepare a list of at least three and not
  8       more than five firms which, in the opinion of the state building advisory
  9       commission, are qualified to furnish the engineering or land surveying
10       services for the proposed project. Each such list shall be submitted to the
11       agency head without any recommendation of preference or other rec-
12       ommendation. The agency head shall conduct discussions with the firms
13       listed and shall select the firm to perform the engineering or land sur-
14       veying services, all in the manner provided in subsection (b). If the agency
15       head is unable to enter into a contract for the necessary engineering or
16       land surveying services with any firm so listed, the agency head shall
17       request the state building advisory commission to prepare and submit
18       another list of firms qualified to provide such engineering or land sur-
19       veying services and shall proceed in accordance with this subsection. The
20       secretary of administration shall provide to the agency head such infor-
21       mation, advice and assistance as may be requested by the agency head
22       regarding the selection of a firm to provide engineering or land surveying
23       services for such projects, including all information and evaluations re-
24       garding the listed firms gathered and developed under K.S.A. 75-3783,
25       and amendments thereto.
26             [Sec.  31. K.S.A. 75-5804 is hereby amended to read as follows:
27       75-5804. (a) Whenever it becomes necessary in the judgment of
28       the agency head of a state agency for which a project is proposed
29       and, in any case where the total cost of such a proposed project is expected
30       to exceed $250,000, the agency head shall convene a negotiating com-
31       mittee. Except as otherwise provided in subsection (b), the agency head
32       shall submit the list of at least three and not more than five of the most
33       highly qualified firms to the negotiating committee so convened, without
34       any recommendation of preference or other recommendation.
35             [(b) Whenever a negotiating committee is convened under this sec-
36       tion for a proposed project requiring engineering or land surveying serv-
37       ices which concerns the construction of any building or facility or any
38       major repairs or improvements to any building or facility, including but
39       not limited, to any heating, cooling or power facility, for a state agency,
40       the agency head for the state agency shall notify the state building advisory
41       commission of the project and shall request a list of firms qualified to
42       provide notify the director of purchases that it is the desire of the agency
43       that a contract be awarded for the purpose of providing the engineering


33

  1       or land surveying services for the proposed project. Upon receipt
  2       of any such request the state building advisory commission shall evaluate
  3       the current statements of qualifications and performance data on file,
  4       together with those statements that may be submitted by other firms
  5       regarding the proposed project and other information developed and
  6       available to the state building advisory commission. The commission shall
  7       prepare a list of at least three and not more than five firms which, in the
  8       opinion of the state building advisory commission, are qualified to furnish
  9       the engineering or land surveying services for the proposed project. Each
10       such list shall be submitted to the negotiating committee so convened
11       without any recommendation of preference or other recommendation.
12             [Sec.  32. K.S.A. 1999 Supp. 10-106 is hereby amended to read
13       as follows: 10-106. (a) Municipal bonds shall be sold at public sale
14       as follows: The officers having charge of the sale of the bonds shall
15       publish a notice of the sale one time in a newspaper having general
16       circulation in the county where the bonds are issued and in the
17       Kansas register. Such notices shall be published not less than six
18       days nor more than 30 days before the sale and shall contain the
19       following information: (1) Except as provided by subsection (b), The
20       date, time and place at which a public auction will be held or at which
21       written sealed bids will be received and considered for the sale of
22       the bonds for cash at such price as the municipality may accept;
23       (2) the date of issue, total par value and denomination of the bonds
24       being sold; (3) the dates and amounts of maturities of the bond
25       issues; (4) the dates on which interest on the bonds shall become
26       due and payable; (5) the place or places where and the approxi-
27       mate date on which the bonds being sold will be delivered to the
28       purchaser; (6) a statement that a good faith deposit in the form of
29       a certified or cashier's check or surety bond in the amount of 2%
30       of the total par value of the bonds being sold shall accompany each
31       bid or in the case of public sale at auction the same shall be fur-
32       nished by each bidder; (7) a statement disclosing whether or not
33       the purchaser of the bonds will be required to pay for the printing
34       thereof and whether or not and to what extent the purchaser of
35       the bonds will be required to pay the expense of legal services
36       rendered to the municipality in connection with the issuance of
37       the bonds including the fees of recognized bond counsel for an
38       opinion as to legality of issuance; (8) the assessed valuation of the
39       municipality; and (9) the total bonded indebtedness of the munic-
40       ipality as of the date on which the bonds being sold are dated
41       including the bonds submitted for bid. The rate of interest may be
42       omitted in advertising and the bidders requested to specify the
43       lowest interest rate or rates on the bonds at which they will pay


34

  1       the purchase price.
  2             [If All municipal bonds shall be sold at public sale with sealed bids,.
  3       All purchasers shall submit their bids in writing, sealed, for all or
  4       any part of the bonds, and each bid shall be accompanied by a
  5       certified or cashier's check or surety bond for 2% of the total
  6       amount of the bid. In case any purchaser, whose bid is accepted,
  7       fails to carry out the contract, the deposit shall be forfeited to the
  8       municipality issuing the bonds. Sealed bids shall be opened pub-
  9       licly and only at the time and place specified in the notice. At the
10       time and place specified, the bonds shall be sold to the highest and
11       best bidder or bidders, and the bonds may be allotted among the
12       bidders, however, any or all bids may be rejected. No contract for
13       the sale of the bonds shall be made except on bids submitted as
14       provided in this section. No bonds shall be delivered to any pur-
15       chaser until the amount of the bid is placed in the hands of the
16       officer in charge of the sale. The provisions of this section relating
17       to the public sale of bonds shall not apply to bonds secured solely
18       and only by revenues, bonds sold, pursuant to written agreement,
19       to the government of the United States of America or any bureau,
20       department, instrumentality or agency thereof, bonds issued pur-
21       suant to K.S.A. 10-427 et seq., and amendments thereto, and all bonds of
22       the same series or which are issued simultaneously with such bonds and
23       bond sales where the total amount of the issue does not exceed $100,000.
24       In such cases, the bonds may be sold at public or private sale as
25       the officers having charge of the sale of such bonds determine.
26       The practice of providing more than one issue within a twelve-
27       month period for any one project is prohibited unless the project
28       engineer or architect certifies that it is necessary to do so for the
29       orderly construction progress of the project.
30             [(b) As an alternative to providing notice of the date, time and place
31       of public auction or receipt of bids provided by subsection (a)(1), the
32       officers having charge of a bond sale may establish a time period of not
33       less than seven nor more than 30 days during which such bonds would
34       be sold. Notice of such sale period shall be published one time in a news-
35       paper having general circulation in the county where the bonds are issued
36       and in the Kansas register and shall be published not less than six days
37       nor more than 30 days before the beginning date of the sale period. The
38       notice shall contain the information specified in subsection (a) except that
39       in place of the time and date of sale, the notice shall specify the time
40       period during which the bonds would be sold and the manner in which
41       persons interested in submitting a bid may register for notice of the bond
42       sale. At least three business days prior to the time and date of the bond
43       sale, the officers having charge of the sale shall give notice to all persons


35

  1       having registered for notice of the bond sale, and bids shall be submitted
  2       and received and the sale made in the manner provided in subsection (a).
  3             [Sec.  33. K.S.A. 10-116a is hereby amended to read as follows:
  4       10-116a. Any municipal or quasi-municipal corporation which has
  5       issued or may hereafter issue revenue bonds under the laws of the
  6       state of Kansas, may issue, without an election, revenue bonds pur-
  7       suant to the provisions of this section to refund any revenue bond
  8       issue or issues, or part thereof, any interest on such bonds or both
  9       such bonds and interest. The principal amount of any issue of re-
10       funding revenue bonds shall not exceed the aggregate amount of:
11       (a) The principal amount of the revenue bonds or interest being
12       refunded; (b) the amount of any interest which has accrued
13       thereon or interest that will accrue to the date of payment of the
14       bonds being refunded; (c) the amount of any premium required to
15       be paid should the bonds be called for redemption and payment;
16       (d) expenses of the municipal or quasi-municipal corporation
17       deemed by the governing body to be necessary for the issuance of
18       the refunding bonds; and (e) expenses incident to the payment of
19       the bonds being refunded. The refunding revenue bonds may be
20       sold or exchanged for the bonds being refunded either as a whole or
21       in installments at any time or times, either at, before, or after the
22       maturity of the bonds being refunded. All such bonds shall be sold at
23       public sale upon the basis of competitive bids. Notice of such sale and the
24       conditions and procedures for the receipt and acceptance of bids, shall be
25       made in the manner prescribed for the sale of municipal bonds pursuant
26       to K.S.A. 10-106, and amendments thereto, insofar as the same is appli-
27       cable. If the refunding revenue bonds are sold more than six
28       months prior to the maturity or earliest prior redemption date of
29       the bonds being refunded, the proceeds derived from the sale,
30       together with any other moneys on hand, shall be placed in escrow
31       under a trust agreement with a Kansas bank having full trust pow-
32       ers. The proceeds and moneys shall be invested in direct obliga-
33       tions of, or obligations the principal of and the interest on which
34       are unconditionally guaranteed by, the United States of America
35       or municipal obligations which are secured by direct obligations
36       of the United States of America, and which shall mature or be
37       subject to redemption by the holders thereof not later than the
38       respective dates when the proceeds of the obligations together
39       with the interest accruing thereon and any other moneys or in-
40       vestments held in escrow will be required for the purposes in-
41       tended. The trust agreement shall pledge or assign the moneys and
42       investments held in trust for the payment of the principal of the
43       revenue bonds being refunded and may pledge or assign the mon-


36

  1       eys and investments held in trust for the payment of the interest
  2       on the revenue bonds being refunded and any redemption pre-
  3       mium thereon. The trust agreement may pledge or assign any of
  4       the obligations or other moneys or investments, or interest accru-
  5       ing thereon, held in trust, which are in excess of the amount of the
  6       obligations and other moneys and investments held which is equal
  7       to the amount of the principal of the bonds to be refunded which
  8       comes due on the date for which the bonds may have been called
  9       for redemption or irrevocable instructions to call bonds for re-
10       demption have been given and any redemption premium thereon,
11       for the payment of the principal of and interest on any or all of the
12       refunding revenue bonds and any redemption premium thereon,
13       and shall contain provisions for protecting and enforcing the rights
14       and remedies of the holders of the revenue bonds. The refunding
15       revenue bonds issued pursuant to this section shall not be general
16       obligations of the municipal or quasi-municipal corporation, ex-
17       cept as herein provided, and insofar as the same may be made
18       applicable the issuance of the refunding revenue bonds, the se-
19       curity thereof, and the rights, duties and obligations of the munic-
20       ipal or quasi-municipal corporation in respect thereof, shall be
21       governed by the laws governing such matters with respect to the
22       bonds being refunded and all other laws generally applicable to
23       revenue bonds issued in this state by the municipal or quasi-mu-
24       nicipal corporation.
25             [Sec.  34. K.S.A. 10-427a is hereby amended to read as follows:
26       10-427a. (a) Refunding bonds issued under the authority of K.S.A.
27       10-427, and amendments thereto, may be sold or exchanged for the
28       bonds being refunded either as a whole or in installments at any time
29       either at, before or after the maturity of the bonds being refunded.
30       All such bonds shall be sold at public sale upon the basis of competitive
31       bids. Notice of such sale and the conditions and procedures for the receipt
32       and acceptance of bids shall be made in the manner prescribed for the
33       sale of municipal bonds pursuant to K.S.A. 10-106, and amendments
34       thereto, insofar as the same is applicable. Such bonds shall be exempt
35       from statutory limitations of bonded indebtedness and shall not be
36       included in computing the total bonded indebtedness of the mu-
37       nicipality for the purpose of applying any statute limiting the
38       bonded indebtedness of the municipality.
39             [(b) If refunding bonds are sold more than six months prior to
40       the maturity or earliest prior redemption date of the bonds being
41       refunded, the proceeds derived from the sale, together with any
42       other moneys on hand, shall be placed in escrow under a trust
43       agreement with a Kansas bank having full trust powers. The pro-


37

  1       ceeds and moneys shall be invested in direct obligations of, or ob-
  2       ligations the principal of and the interest on which are uncondi-
  3       tionally guaranteed by, the United States of America or municipal
  4       obligations which are secured by direct obligations of the United
  5       States of America, and which shall mature or be subject to re-
  6       demption by the holders thereof not later than the respective dates
  7       when the proceeds of the obligations together with the interest
  8       accruing thereon and any other moneys or investments held in
  9       escrow will be required for the purposes intended. The trust
10       agreement shall pledge or assign the moneys and investments held
11       in trust for the payment of the principal of the bonds being re-
12       funded and may pledge or assign the moneys and investments held
13       in trust for the payment of the interest on the bonds being re-
14       funded and any redemption premium thereon. The trust agree-
15       ment may pledge or assign any of the obligations or other moneys
16       or investments, or interest accruing thereon, held in trust, which
17       are in excess of the amount of the obligations and other moneys
18       and investments held which is equal to the amount of the principal
19       of the bonds to be refunded which comes due on the date for which
20       the bonds may have been called for redemption or irrevocable
21       instructions to call bonds for redemption have been given and any
22       redemption premium thereon, for the payment of the principal of
23       and interest on any or all of the refunding bonds and any redemp-
24       tion premium thereon, and shall contain provisions for protecting
25       and enforcing the rights and remedies of the holders of the bonds.
26             [Sec.  35. K.S.A. 10-1202 is hereby amended to read as follows:
27       10-1202. (a) Any municipality authorized by the laws of the state
28       of Kansas to issue general obligation bonds for the acquisition,
29       construction, reconstruction, alteration, repair, improvement, ex-
30       tension or enlargement of any utility is hereby empowered to issue
31       and sell revenue bonds in payment of the cost of such utility or
32       improvements, to fix by ordinance or resolution such rates, fees
33       and charges for the use thereof or services therefrom as may be
34       reasonable and necessary and to provide for the manner of col-
35       lecting and disbursing such revenues subject to the limitations
36       hereinafter contained. All such bonds shall be sold at public sale upon
37       the basis of competitive bids. Notice of such sale and the conditions and
38       procedures for the receipt and acceptance of bids shall be made in the
39       manner prescribed for the sale of municipal bonds pursuant to K.S.A. 10-
40       106, and amendments thereto, insofar as the same is applicable. If any
41       city of the first class shall have issued temporary notes for water-
42       works improvements contemplating the issuance of general obli-
43       gation bonds, said general obligation bonds having been author-


38

  1       ized by the vote of a majority of the qualified electors of such city
  2       voting on the proposition at an election called and held for that
  3       purpose, such city may fund such temporary notes by the issuance
  4       of revenue bonds under the terms of this act without again sub-
  5       mitting any proposition to the electors of such city. Any city which
  6       has issued revenue bonds under the terms of this act may there-
  7       after issue additional revenue bonds for improvements, enlarge-
  8       ments, extensions or additions to any utility system and provide
  9       that, on such conditions as may be specified by the governing body
10       of the city, such later bonds shall be on a parity as to the revenues
11       of such utility and in all other respects with revenue bonds previ-
12       ously issued against such utility under the terms of this act.
13             [(b) Any city of the first class owning and operating a municipal
14       electric utility, which is located in a county having a population of
15       more than twenty thousand (20,000) 20,000 and not more than thirty
16       thousand (30,000) 30,000 and an assessed tangible valuation of more
17       than one hundred thirty-five million dollars ($135,000,000)
18       $135,000,000, is hereby authorized to join with any privately owned
19       electric utility in the construction of an additional electric gener-
20       ating facility and to issue revenue bonds under the authority of
21       this section and the act of which this section is amendatory to pay
22       the city's share of the cost thereof. Such city is hereby authorized
23       to enter into any contracts or agreements with such private electric
24       utility which are necessary for the construction of such generating
25       facility and for the purchase by the city of electric energy produced
26       by such facility. The principal of, and the interest upon, all revenue
27       bonds issued under the authority of this subsection shall be paid
28       from available revenues derived from the operation of the city's
29       municipal electric utility and available revenues derived from the
30       operation of such additional electric generating facility.
31             [Sec.  36. K.S.A. 10-1211 is hereby amended to read as follows:
32       10-1211. Any municipality governed by the provisions of this act
33       having issued revenue bonds under this act or any previous au-
34       thority may, from time to time, may issue revenue bonds pursuant
35       to the provisions of this act to refund any previous issue or part
36       thereof of its outstanding revenue bonds. Such refunding revenue
37       bonds shall be issued and sold in the manner prescribed by and
38       subject to the provisions of K.S.A. 10-116a, and amendments thereto.
39       In addition, any such municipality may, from time to time, may
40       issue general obligation bonds, under the provisions of the general
41       bond law, to refund any previous issue or part thereof of its out-
42       standing revenue bonds, including the principal amount thereof
43       and all accrued outstanding interest thereon, if such revenue


39

  1       bonds are callable in accordance with their terms or the holders
  2       thereof are willing to surrender them to the municipality. Such
  3       general obligation bonds shall not be issued until a resolution
  4       adopted by the governing body of the municipality stating the pur-
  5       pose for which such bonds are to be issued, the total amount of
  6       the bonds proposed to be issued, and the total cost to the city of
  7       the refunding project, shall be is published at least once each week
  8       for two consecutive weeks in the official newspaper of such mu-
  9       nicipality. After publication, such bonds may be issued unless a
10       petition requesting an election on the proposition, signed by elec-
11       tors equal in number to not less than 5% of the electors of the
12       municipality who voted for the office of secretary of state at the
13       last preceding general election of such office, is filed with the clerk
14       of such municipality within 20 days following the last publication
15       of such resolution. If such a petition is filed, the governing body
16       of the municipality shall submit the proposition to the voters at an
17       election called for such purpose and held within 90 days after the
18       last publication of the resolution, and no bonds shall be issued
19       unless such proposition shall receive receives the approval of a ma-
20       jority of the votes cast thereon. Such election shall be called and
21       held in the manner provided by the general bond law. No such
22       general obligation bonds shall be issued unless: (a) The total cost
23       to the municipality on the general obligation bonds shall amount to
24       is less than the remaining interest cost to the municipality on the
25       outstanding revenue bonds being refunded; (b) the anticipated
26       revenues from the utility system involved are expected to be suf-
27       ficient to retire such general obligation bonds; and (c) the refund-
28       ing is necessary to accomplish a comprehensive and orderly fi-
29       nancing plan for the utility system.
30             [New Sec.  37. The awarding of all contracts for the providing
31       of professional services for municipalities involved in the issuance
32       of general obligation and revenue bonds, including but not limited
33       to, the preparation of transcripts, the employment of bond counsel
34       and financial services and bond underwriting shall be awarded in
35       conformance with guidelines established pursuant to rules and
36       regulations adopted by the board of directors of the Kansas de-
37       velopment finance authority as provided in K.S.A. 74-8904 and sec-
38       tion 4, and amendments thereto.
39             [New Sec.  38. (a) All bonds, as defined by K.S.A. 74-8902, and
40       amendments thereto, which are issued by any agency of the state,
41       any body politic and corporate or any other entity created by any
42       law of the state, shall be sold at public sale upon the basis of com-
43       petitive bids, in conformance with guidelines established pursuant


40

  1       to rules and regulations adopted by the board of directors of the
  2       Kansas development finance authority as provided in K.S.A. 74-
  3       8904, and amendments thereto.
  4             [(b) The awarding of all contracts for the providing of profes-
  5       sional services for any agency of the state, any body politic and
  6       corporate or any other entity created by any law of the state, in-
  7       volved in the issuance of general obligation and revenue bonds,
  8       including but not limited to, the preparation of transcripts, the
  9       employment of bond counsel and financial services and bond un-
10       derwriting shall be awarded in conformance with guidelines es-
11       tablished pursuant to rules and regulations adopted by the board
12       of directors of the Kansas development finance authority as pro-
13       vided in K.S.A. 74-8904 and section 4, and amendments thereto.
14             [New Sec.  39. (a) Except as otherwise specifically provided by
15       law, all contracts for the providing of professional services for all
16       political and taxing subdivisions of the state shall be awarded upon
17       the basis of competitive bids. All bids shall be solicited by notice
18       published in a newspaper of general circulation in the political or
19       taxing subdivision.
20             [(b) As used in this act, ``professional services'' shall mean and
21       include all services provided under contract to any political or tax-
22       ing subdivision of the state by any member of profession, the mem-
23       bers of which are licensed or regulated under the laws of the state
24       of Kansas.]
25             Section  1. [40.] K.S.A. 1999 Supp. 25-4153a is hereby amended to
26       read as follows: 25-4153a. (a) No registered lobbyist, political committee
27       or person, other than an individual, shall make a contribution as defined
28       by subsection (d) of K.S.A. 25-4143, and amendments thereto, to any
29       legislator, candidate for membership in the senate or house of represen-
30       tatives, candidate committee for any such legislator or candidate, state
31       officer elected on a statewide basis, candidate for state office elected on
32       a statewide basis or candidate committee for any such officer or candidate
33       after January 1 of each year and prior to adjournment sine die of the
34       regular session of the legislature or at any other time in which the legis-
35       lature is in session to a:
36             (1) Legislator;
37             (2) candidate for membership in the legislature;
38             (3) state officer elected on a statewide basis;
39             (4) candidate for state officer elected on a statewide basis;
40             (5) candidate committee of persons described in paragraphs (1)
41       through (4);
42             (6) political committee established by a state committee of any polit-
43       ical party and designated as a recognized political committee for the sen-


41

  1       ate or house of representatives; or
  2             (7) political committee established to support or oppose candidates of
  3       a single party in either the senate or the house of representatives.
  4             (b) No such legislator, officer, candidate or committee described in
  5       paragraphs (1) through (7) of subsection (a) shall accept or solicit any
  6       contribution as defined by subsection (d) (e) of K.S.A. 25-4143, and
  7       amendments thereto, from any registered lobbyist, political committee or
  8       person, other than an individual, during such period of time described in
  9       subsection (a).
10             (c) For the purposes of this section, the term political committee in-
11       cludes any committee described in paragraphs (6) and (7) of subsection
12       (a).
13        [(c) Any contribution received on and after January 1, 1999, by
14       any political committee described in paragraph (6) of subsection
15       (a) shall be returned to the contributor.
16        [(c) No committee as described in paragraph (6) or (7) of sub-
17       section (a) shall accept or solicit any contribution as defined by
18       subsection (c) of K.S.A. 25-4143, and amendments thereto, from
19       any individual, during such period of time described in subsection
20       (a).]
21        Sec.  2. [41.] K.S.A. 1999 Supp. 25-4143 is hereby amended to
22       read as follows: 25-4143. As used in the campaign finance act, un-
23       less the context otherwise requires:
24             (a) ``Candidate'' means an individual who: (1) Appoints a trea-
25       surer or a candidate committee;
26             (2) makes a public announcement of intention to seek nomi-
27       nation or election to state or local office;
28             (3) makes any expenditure or accepts any contribution for such
29       person's nomination or election to any state or local office; or
30             (4) files a declaration or petition to become a candidate for
31       state or local office.
32             (b) ``Candidate committee'' means a committee appointed by
33       a candidate to receive contributions and make expenditures for
34       the candidate.
35             (c) ``Clearly identified candidate'' means a candidate who has
36       been identified by the:
37             (1) Use of the name of the candidate;
38             (2) use of a photograph or drawing of the candidate; or
39             (3) unambiguous reference to the candidate whether or not the
40       name, photograph or drawing of such candidate is used.
41             (d) ``Commission'' means the governmental ethics commission.
42             (e)  (1) ``Contribution'' means:
43             (A) Any advance, conveyance, deposit, distribution, gift, loan


42

  1       or payment of money or any other thing of value given to a can-
  2       didate, candidate committee, party committee or political com-
  3       mittee for the express purpose of nominating, electing or defeating
  4       a clearly identified candidate for a state or local office.
  5             (B) Any advance, conveyance, deposit, distribution, gift, loan
  6       or payment of money or any other thing of value made to expressly
  7       advocate the nomination, election or defeat of a clearly identified
  8       candidate for a state or local office;
  9             (C) a transfer of funds between any two or more candidate
10       committees, party committees or political committees;
11             (D) the payment, by any person other than a candidate, can-
12       didate committee, party committee or political committee, of com-
13       pensation to an individual for the personal services rendered with-
14       out charge to or for a candidate's campaign or to or for any such
15       committee;
16             (E) the purchase of tickets or admissions to, or advertisements
17       in journals or programs for, testimonial events;
18             (F) a mailing of materials designed to expressly advocate the
19       nomination, election or defeat of a clearly identified candidate,
20       which is made and paid for by a party committee with the consent
21       of such candidate.
22             (2) ``Contribution'' does not include:
23             (A) The value of volunteer services provided without
24       compensation;
25             (B) costs to a volunteer related to the rendering of volunteer
26       services not exceeding a fair market value of $50 during an allo-
27       cable election period as provided in K.S.A. 25-4149, and amend-
28       ments thereto;
29             (C) payment by a candidate or candidate's spouse for personal
30       meals, lodging and travel by personal automobile of the candidate
31       or candidate's spouse while campaigning;
32             (D) the value of goods donated to events such as testimonial
33       events, bake sales, garage sales and auctions by any person not
34       exceeding a fair market value of $50 per event.
35             (f) ``Election'' means:
36             (1) A primary or general election for state or local office; and
37             (2) a convention or caucus of a political party held to nominate
38       a candidate for state or local office.
39             (g)  (1) ``Expenditure'' means:
40             (A) Any purchase, payment, distribution, loan, advance, de-
41       posit or gift of money or any other thing of value made by a can-
42       didate, candidate committee, party committee or political com-
43       mittee for the express purpose of nominating, electing or defeating


43

  1       a clearly identified candidate for a state or local office.
  2             (B) Any purchase, payment, distribution, loan, advance, de-
  3       posit or gift of money or any other thing of value made to expressly
  4       advocate the nomination, election or defeat of a clearly identified
  5       candidate for a state or local office;
  6             (C) any contract to make an expenditure;
  7             (D) a transfer of funds between any two or more candidate
  8       committees, party committees or political committees; or
  9             (E) payment of a candidate's filing fees.
10             (2) ``Expenditure'' does not include:
11             (A) The value of volunteer services provided without
12       compensation;
13             (B) costs to a volunteer incidental to the rendering of volunteer
14       services not exceeding a fair market value of $50 during an allo-
15       cable election period as provided in K.S.A. 25-4149, and amend-
16       ments thereto;
17             (C) payment by a candidate or candidate's spouse for personal
18       meals, lodging and travel by personal automobile of the candidate
19       or candidate's spouse while campaigning or payment of such costs
20       by the treasurer of a candidate or candidate committee;
21             (D) the value of goods donated to events such as testimonial
22       events, bake sales, garage sales and auctions by any person not
23       exceeding fair market value of $50 per event; or
24             (E) any communication by an incumbent elected state or local
25       officer with one or more individuals unless the primary purpose
26       thereof is to expressly advocate the nomination, election or defeat
27       of a clearly identified candidate.
28             (h) ``Expressly advocate the nomination, election or defeat of
29       a clearly identified candidate'' means any communication which
30       uses phrases including, but not limited to:
31             (A) (1) ``Vote for the secretary of state'';
32             (B) (2) ``re-elect your senator'';
33             (C) (3) ``support the democratic nominee'';
34             (D) (4) ``cast your ballot for the republican challenger for
35       governor'';
36             (E) (5) ``Smith for senate'';
37             (F) (6) ``Bob Jones in '98'';
38             (G) (7) ``vote against Old Hickory'';
39             (H) (8) ``defeat'' accompanied by a picture of one or more can-
40       didates; or
41             (I) (9) ``Smith's the one.''
42             (i) ``Party committee'' means:
43             (1) The state committee of a political party regulated by article


44

  1       3 of chapter 25 of the Kansas Statutes Annotated;
  2             (2) the county central committee or the state committee of a
  3       political party regulated under article 38 of chapter 25 of the Kan-
  4       sas Statutes Annotated;
  5             (3) the bona fide national organization or committee of those
  6       political parties regulated by the Kansas Statutes Annotated;
  7             (4) not more than one political committee established by the
  8       state committee of any such political party and designated as a
  9       recognized political committee for the senate; or
10             (5) not more than one political committee established by the
11       state committee of any such political party and designated as a
12       recognized political committee for the house of representatives.
13             (j) ``Person'' means any individual, committee, corporation,
14       partnership, trust, organization or association.
15             (k)  (1) ``Political committee'' means any combination of two or
16       more individuals or any person other than an individual, a major
17       purpose of which is to expressly advocate the nomination, election
18       or defeat of a clearly identified candidate for state or local office
19       or make contributions to or expenditures for the nomination, elec-
20       tion or defeat of a clearly identified candidate for state or local
21       office.
22             (2) ``Political committee'' shall not include a candidate committee or
23       a party committee.
24             (l) ``Receipt'' means a contribution or any other money or thing
25       of value, but not including volunteer services provided without
26       compensation, received by a treasurer in the treasurer's official
27       capacity.
28             (m) ``State office'' means any state office as defined in K.S.A.
29       25-2505, and amendments thereto.
30             (n) ``Testimonial event'' means an event held for the benefit of
31       an individual who is a candidate to raise contributions for such
32       candidate's campaign. Testimonial events include but are not lim-
33       ited to dinners, luncheons, rallies, barbecues and picnics.
34             (o) ``Treasurer'' means a treasurer of a candidate or of a can-
35       didate committee, a party committee or a political committee ap-
36       pointed under the campaign finance act or a treasurer of a com-
37       bination of individuals or a person other than an individual which
38       is subject to paragraph (2) of subsection (a) of K.S.A. 25-4172, and
39       amendments thereto.
40             (p) ``Local office'' means a member of the governing body of a
41       city of the first class, any elected office of a unified school district
42       having 35,000 or more pupils regularly enrolled in the preceding
43       school year, a county or of the board of public utilities.


45

  1             Sec.  3. [42.] K.S.A. 1999 Supp. 46-237a is hereby amended to
  2       read as follows: 46-237a. (a) The provisions of this section shall
  3       apply to:
  4             (1) The governor;
  5             (2) the lieutenant governor;
  6             (3) the governor's spouse;
  7             (4) all classified employees in the civil service of the state of Kansas;
  8             (5) all unclassified employees in the executive branch of state gov-
  9       ernment whose compensation is subject to approval by the governor pur-
10       suant to K.S.A. 75-2935b, and amendments thereto; and
11             (4) all officers and employees of the executive branch of state govern-
12       ment; and
13             (6) (5) all members of boards, commissions and authorities of
14       the executive branch of state government.
15             (b) No person subject to the provisions of this section shall so-
16       licit or accept any gift, economic opportunity, loan, gratuity, spe-
17       cial discount or service provided because of such person's official
18       position, except:
19             (1) A gift having an aggregate value of less than $40 given at a
20       ceremony or public function where the person is accepting the gift
21       in such person's official capacity; or
22             (2) gifts from relatives or gifts from personal friends when it is
23       obvious to the person that the gift is not being given because of
24       the person's official position; or
25             (3) anything of value received by the person on behalf of the
26       state that inures to the benefit of the state or that becomes the
27       property of the state; or
28             (4) contributions solicited on behalf of a nonprofit organization
29       which is exempt from taxation under paragraph (3) of subsection
30       (c) of section 501 of the internal revenue code of 1986, as
31       amended.
32             (c) No person subject to the provisions of this section shall so-
33       licit or accept free or special discount meals from a source outside
34       of state government, except:
35             (1) Meals, the provision of which is motivated by a personal or
36       family relationship or provided at events that are widely attended.
37       An occasion is ``widely attended'' when it is obvious to the person
38       accepting the meal that the reason for providing the meal is not a
39       pretext for exclusive or nearly exclusive access to the person;
40             (2) meals provided at public events in which the person is at-
41       tending in an official capacity;
42             (3) meals provided to a person subject to this act when it is
43       obvious such meals are not being provided because of the person's


46

  1       official position; and
  2             (4) food such as soft drinks, coffee or snack foods not offered
  3       as part of a meal.
  4             (d) No person subject to the provisions of this section shall so-
  5       licit or accept free or special discount travel or related expenses
  6       from a source outside state government, except:
  7             (1) When it is obvious to the person accepting the same that
  8       the free or special discount travel and related expenses are not
  9       being provided because of the person's official position; or
10             (2) when the person's presence at a meeting, seminar or event
11       serves a legitimate state purpose or interest and the person's
12       agency authorizes or would authorize payment for such travel and
13       expenses.
14             (e) No person subject to the provisions of this section shall so-
15       licit or accept free or special discount tickets or access to enter-
16       tainment or sporting events or activities such as plays, concerts,
17       games, golf, exclusive swimming, hunting or fishing or other rec-
18       reational activities when the free or special discount tickets or ac-
19       cess are provided because of the person's official position. The
20       provisions of this subsection shall not apply to persons whose of-
21       ficial position requires or obliges them to be present at such events
22       or activities.
23             (f)  (1) Violations of the provisions of this section by any clas-
24       sified employee in the civil service of the state of Kansas shall be
25       considered personal conduct detrimental to the state service and
26       shall be a basis for suspension, demotion or dismissal, subject to
27       applicable state law.
28             (2) Violations of the provisions of this section by any unclassi-
29       fied employee whose compensation is subject to be approved by the
30       governor pursuant to K.S.A. 75-2935b, and amendments thereto, shall
31       subject such employee to discipline up to and including
32       termination.
33             (3) In addition to the penalty prescribed under paragraphs (1)
34       and (2), the commission on governmental standards and conduct may
35       assess a civil fine, after proper notice and an opportunity to be
36       heard, against any person for a violation of this section, in an
37       amount not to exceed $5,000 for the first violation, not to exceed
38       $10,000 for the second violation and not to exceed $15,000 for the
39       third violation and for each subsequent violation. All fines assessed
40       and collected under this section shall be remitted to the state trea-
41       surer. Upon receipt thereof, the state treasurer shall deposit the
42       entire amount in the state treasury and credit it to the Kansas com-
43       mission on governmental standards and conduct fee fund governmental


47

  1       ethics fee fund established by K.S.A. 25-4119e, and amendments thereto.
  2             Sec.  4. [43.] K.S.A. 1999 Supp. 46-269 is hereby amended to
  3       read as follows: 46-269. Each report under K.S.A. 46-268, and
  4       amendments thereto, shall disclose the following:
  5             (a) The full name and address of each person who has paid
  6       compensation for lobbying to the lobbyist or has paid for expenses
  7       of lobbying by the lobbyist during the period reported.
  8             (b) The aggregate amount or value of all expenditures made,
  9       except for expenses of general office overhead, by the lobbyist or
10       by the lobbyist's employer for or in direct relation to lobbying dur-
11       ing the reporting period, if such expenditures exceed $100. Indi-
12       vidual expenditures of less than $2 shall not be required to be
13       reported under this subsection. Every lobbyist shall keep detailed
14       accounts of all expenditures required to be reported pursuant to
15       K.S.A. 46-268, and amendments thereto. Such expenditures shall
16       be reported according to the following categories of expenditures:
17             (1) Food and beverages provided as hospitality;
18             (2) entertainment, gifts, honoraria or payments;
19             (3) mass media communications;
20             (4) recreation provided as hospitality;
21             (5) communications for the purpose of influencing legislative
22       or executive action; and
23             (6) all other reportable expenditures made in the performance
24       of services as a lobbyist. With regard to expenditures for enter-
25       tainment or hospitality which is primarily recreation, food and bev-
26       erages, only amounts expended on a state officer or employee or
27       on such officer or employee's spouse shall be considered to be for
28       or in direct relation to lobbying. Notwithstanding the require-
29       ments of this subsection and subsection (c), no lobbyist shall be
30       responsible to report any expenditure by the lobbyist's employer
31       of which such person has no knowledge.
32             (c)  (1) In addition to the information reported pursuant to subsection
33       (b), each lobbyist expending an aggregate amount of $100 or more for
34       lobbying in any reporting period shall report any gift, entertainment or
35       hospitality provided to members of the legislature, members of the judicial
36       branch of government and any employees of the legislature or judicial
37       branch of government. Such report shall disclose the full name of the
38       legislator, member of the judicial branch and employee who received such
39       gift, entertainment or hospitality and the amount expended on such gift,
40       entertainment or hospitality.
41             (2) No report shall be required to be filed pursuant to this subsection
42       (c) for the following:
43             (A) Meals, the provision of which is motivated by a personal or family


48

  1       relationship or provided at an event where all members of the legislature
  2       or all members of the house of representatives or senate have been invited
  3       to attend;
  4             (B) meals provided at public events in which the person is attending
  5       in an official capacity;
  6             (C) meals provided to a person subject to this section when it is ob-
  7       vious such meals are not being provided because of the person's official
  8       position; and
  9             (D) food such as soft drinks, coffee or snack foods not offered as part
10       of a meal.
11             (c) (d) Whenever Except as provided by subsection (c), whenever an
12       individual lobbyist contributes to a single special event, such lob-
13       byist shall report only the aggregate amount or value of the ex-
14       penditure contributed by such lobbyist.
15             (d) (e) Whenever more than one lobbyist is employed by a sin-
16       gle employer, the reports required by this section relating to such
17       employer shall be made by only one such lobbyist and that lobbyist
18       shall be the lobbyist who is most directly connected with the par-
19       ticular expenditure or gift, honoraria or payment. No expenditure
20       or gift, honoraria or payment required to be reported by this sec-
21       tion shall be reported by more than one lobbyist.
22             (e) (f) All accounts, records and documents of the lobbyist
23       which relate to every expenditure reported or which should have
24       been reported shall be maintained and preserved by the lobbyist
25       for a period of five years from the date of the filing of such report
26       or statement and may be inspected under conditions determined
27       by the commission.
28             Sec.  5. [44.] K.S.A. 1999 Supp. 46-237 is hereby amended to
29       read as follows: 46-237. (a) Except as provided by this section, no state
30       officer or employee, candidate for state office or state officer elect
31       shall accept, or agree to accept any (1) economic opportunity, gift,
32       loan, gratuity, special discount, favor, hospitality, or service having
33       an aggregate value of $40 or more in any calendar year or (2) hos-
34       pitality in the form of recreation having an aggregate value of $100 or
35       more in any calendar year from any one person known to have a
36       special interest, under circumstances where such person knows or
37       should know that a major purpose of the donor is to influence such
38       person in the performance of their official duties or prospective
39       official duties.
40        [(b) No legislator, candidate for membership in the legislature
41       or legislator elect shall accept, or agree to accept any economic
42       opportunity, gift, loan, gratuity, special discount, favor or hospi-
43       tality in the form of recreation and food and beverages or service


49

  1       from any lobbyist.]
  2             (b) [(c)] Except as provided by this section, no person with a special
  3       interest shall offer, pay, give or make any (1) economic opportu-
  4       nity, gift, loan, gratuity, special discount, favor, hospitality or serv-
  5       ice having an aggregate value of $40 or more in any calendar year
  6       or (2) hospitality in the form of recreation having an aggregate value of
  7       $100 or more in any calendar year to any state officer or employee,
  8       candidate for state office or state officer elect with a major purpose
  9       of influencing such officer or employee, candidate for state office
10       or state officer elect in the performance of official duties or pro-
11       spective official duties.
12             (c) [(d)] No person licensed, inspected or regulated by a state
13       agency shall offer, pay, give or make any economic opportunity,
14       gift, loan, gratuity, special discount, favor, hospitality, or service
15       having an aggregate value of $40 or more in any calendar year to
16       such agency or any state officer or employee, candidate for state
17       office or state officer elect of that agency.
18             (d) Hospitality in the form of recreation, food and beverages is
19       presumed not to be given to influence a state officer or employee,
20       candidate for state office or state officer elect in the performance
21       of official duties or prospective official duties, except when a par-
22       ticular course of official action is to be followed as a condition
23       thereon. For the purposes of this subsection, the term recreation shall
24       not include the providing or the payment of the cost of transportation or
25       lodging.
26             (e) Except when a particular course of official action is to be
27       followed as a condition thereon, this section shall not apply to: (1)
28       Any contribution reported in compliance with the campaign fi-
29       nance act; or (2) a commercially reasonable loan or other com-
30       mercial transaction in the ordinary course of business.
31             (f) No state officer or employee shall accept any payment of
32       honoraria for any speaking engagement except that a member of
33       the state legislature or a part-time officer or employee of the ex-
34       ecutive branch of government shall be allowed to receive reim-
35       bursement in the preparation for and the making of a presentation
36       at a speaking engagement in an amount fixed by the commission
37       prior to the acceptance of the speaking engagement. Nothing in
38       this section shall be construed to prohibit the reimbursement of
39       state officers and employees for reasonable expenses incurred in
40       attending seminars, conferences and other speaking engagements.
41             (g) The provisions of this section shall not be applicable to or
42       prohibit the acceptance of gifts from governmental agencies of
43       foreign nations except that any gift accepted from such foreign


50

  1       governmental agency, having an aggregate value of $100 or more,
  2       shall be accepted on behalf of the state of Kansas.
  3             (h) No legislator shall solicit any contribution to be made to
  4       any organization for the purpose of paying for travel, subsistence
  5       and other expenses incurred by such legislator or other members
  6       of the legislature in attending and participating in meetings, pro-
  7       grams and activities of such organization or those conducted or
  8       sponsored by such organization, but nothing in this act or the act
  9       of which this act is amendatory shall be construed to prohibit any
10       legislator from accepting reimbursement for actual expenses for
11       travel, subsistence, hospitality, entertainment and other expenses
12       incurred in attending and participating in meetings, programs and
13       activities sponsored by the government of any foreign nation, or
14       any organization organized under the laws of such foreign nation
15       or any international organization or any national, nonprofit, non-
16       partisan organization established for the purpose of serving, in-
17       forming, educating and strengthening state legislatures in all
18       states of the nation, when paid from funds of such organization
19       and nothing shall be construed to limit or prohibit the expenditure
20       of funds of and by any such organization for such purposes.
21        [New Sec.  45. (a) This section shall be known and may be cited
22       as the private attorney retention sunshine act.
23             [(b) For the purposes of this section:
24             [(1) ``Contract for legal services'' means a contract in which a
25       fee is paid to an attorney or group of attorneys, in the form of a
26       flat, hourly or contingent fee and any expenses of such attorney,
27       or group of attorneys.
28             [(2) ``State agency'' means any state office, officer, department,
29       board, commission, institution, bureau, agency, authority, state
30       agent or any division of a state agency.
31             [(c) Notwithstanding any law to the contrary, any state agency
32       that wishes to enter into a contract for legal services under this
33       section with a lawyer or law firm to perform legal services on be-
34       half of this state, which contract is reasonably expected by the state
35       agency to result in legal fees of $7,500 or more, shall not do so
36       until an open and competitive bidding process has been under-
37       taken. The competitive bidding process under this section means
38       that the state agency, unless otherwise required by law, shall pub-
39       lish in the Kansas register notice of competitive bidding for such
40       contract for legal services at least two weeks prior to the deadline
41       to receive such competitive bids, shall select at least two qualified
42       law firms based upon the law firm's experience with similar liti-
43       gation, expertise generally and size, if firm size is a relevant factor


51

  1       with respect to the proposed legal services, and such other factors
  2       as the secretary of administration may specify by rules and regu-
  3       lations, and shall select from among such firms for purposes of
  4       entry into a contract for legal services with the law firm which
  5       makes the lowest hourly rate bid or total cost to provide such
  6       services.
  7             [(d) No state agency shall enter into a contract for legal services
  8       exceeding $1,000,000 without the opportunity for at least one
  9       hearing in the legislature on the terms of the legal contract in
10       accordance with subsection (e).
11             [(e)  (1) For purposes of the requirement of subsection (d), any
12       state agency entering into a contract for legal services in excess of
13       $1,000,000 shall file a copy of the proposed contract with the chief
14       clerk of the house of representatives and the secretary of the sen-
15       ate who shall refer such contract to the chairperson and vice chair-
16       person of the legislative budget committee.
17             [(2) Within 30 days after such referral, the legislative budget
18       committee may hold a public hearing on the proposed contract
19       and shall issue a report to the referring state agency. The report
20       shall include any proposed changes to the proposed contract voted
21       upon by the committee. The state agency shall review the report
22       and adopt a final contract as deemed appropriate in view of the
23       report and shall file with the chief clerk of the house of represen-
24       tatives and the secretary of the senate its final contract.
25             [(3) If the proposed contract does not contain the changes pro-
26       posed by the legislative budget committee, the referring state
27       agency shall send a letter to the chief clerk of the house of rep-
28       resentatives and the secretary of the senate accompanying the final
29       contract stating the reasons why such proposed changes were not
30       adopted. The chief clerk and the secretary of the senate shall refer
31       such letter and final regulations to the chairperson and vice chair-
32       person of the legislative budget committee. Not earlier than 45
33       days after the filing of such letter and final contract with the chief
34       clerk of the house of representatives and the secretary of the sen-
35       ate, the state agency or agent shall enter into the final contract.
36             [(4) If no proposed changes to the proposed contract are made
37       to the state agency within 60 days of the initial filing of the pro-
38       posed contract or any amendment of such contract with the chief
39       clerk of the house of representatives and the secretary of the sen-
40       ate, the state agency may enter into the contract.
41             [(5) Nothing in this section shall be construed to expand the
42       authority of any state agency to enter into contracts where no such
43       authority previously existed.


52

  1             [(f)  (1) At the conclusion of any legal proceeding for which a
  2       state agency retained outside counsel on a contingent fee basis,
  3       the state shall receive from counsel a statement of the hours
  4       worked on the case, expenses incurred, the aggregate fee amount
  5       and a breakdown as to the hourly rate, based on hours worked
  6       divided into fee recovered, less expenses.
  7             [(2) In no case shall the state incur expenses in excess of $1,000
  8       per hour for legal services. In cases where a disclosure submitted
  9       in accordance with paragraph (1) of this subsection indicates an
10       hourly rate in excess of $1,000 per hour, the fee amount shall be
11       reduced to an amount equivalent to $1,000 per hour.
12             [(g) In any action in which the state of Kansas or any state
13       agency is a defendant and a contract for legal services is to be
14       entered into in accordance with this section, the district court may
15       continue the action at any stage of the proceedings to provide an
16       extension of time in order to provide the time required for the
17       state or the state agency to comply with the provisions of this sec-
18       tion. In any such case, if the court does not grant a request for a
19       continuance for the purpose of complying with the provisions of
20       this section, then the state agency and the contract for legal serv-
21       ices shall not be subject to any period of time prescribed by this
22       section before the contract for legal services may be entered into
23       by the state agency.
24        [Sec.  46. K.S.A. 46-271 is hereby amended to read as follows:
25       46-271. (a) No lobbyist shall offer, pay, give or make any economic op-
26       portunity, gift, loan, gratuity, special discount, favor or hospitality in the
27       form of recreation and food and beverages to any legislator, candidate for
28       membership in the legislature or legislator elect.
29             [(b) Subject to the provisions of subsection (a), no lobbyist shall
30       offer, pay, give or make any economic opportunity, gift, loan, gra-
31       tuity, special discount, favor, hospitality or service having an ag-
32       gregate value of $40 or more in any calendar year to any state
33       officer or employee or candidate for state office with a major pur-
34       pose of influencing such officer or employee in the performance
35       of official duties or prospective official duties. Hospitality in the
36       form of recreation, food and beverages are presumed not to be
37       given to influence a state officer or employee or candidate for state
38       office in the performance of official duties, except when a partic-
39       ular course of official action is to be followed as a condition
40       thereon.
41             [Except when a particular course of official action is to be fol-
42       lowed as a condition thereon, this section shall not apply to (1) any
43       contribution reported in compliance with the campaign finance act


53

  1       as amended, or (2) a commercially reasonable loan or other com-
  2       mercial transaction in the ordinary course of business.]
  3        Sec.  2. 6. K.S.A. 1999 Supp. 25-4153a is 25-4143, 25-4153a, 46-
  4       237, 46-237a and 46-269 are hereby repealed.
  5        [Sec.  47. K.S.A. 10-116a, 10-427a, 10-1202, 10-1211, 25-4142,
  6       46-235, 46-242, 46-271, 59-2006, 66-1513, 75-430a, 75-1250, 75-
  7       1251, 75-1253, 75-1254, 75-1255, 75-1256, 75-1257, 75-1258, 75-
  8       1265, 75-3738, 75-3740, 75-3784, 75-3799, 75-37,102, 75-5310a,
  9       75-5801, 75-5802, 75-5803, 75-5804, 75-5805, 75-5806 and 75-
10       5807 and K.S.A. 1999 Supp. 10-106, 25-4143, 25-4153a, 40-3410,
11       40-3411, 44-566a, 46-237, 46-237a, 46-269, 74-8904, 75-3739 and
12       76-745 are hereby repealed.]
13        Sec.  3.7. [48.] This act shall take effect and be in force from and
14       after its publication in the statute book Kansas register [statute book].