CHAPTER 12
SENATE BILL No. 373
(Amended by Chapter 130)
An Act establishing the university of Kansas
hospital authority; relating to its powers, duties
and limitations; matters regarding employees
thereof, including retirement annuities and
benefits; creating a board of directors;
creating a legislative oversight committee; amend-
ing K.S.A. 75-6117, 76-745, 79-201b and
79-3606 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. Sections 1 through 15 and 18 through 25,
and
amendments thereto, shall be known and may be cited as the
university
of Kansas hospital authority act.
New Sec. 2. (a) The legislature of the state of Kansas
hereby finds
and declares that:
(1) Provision of health care is an essential governmental
function pro-
tecting and promoting the health and welfare of the citizens of the
state
of Kansas;
(2) education of medical and health sciences professionals and
the
performance of medical and related research are essential to
promote
such health care;
(3) teaching hospitals are essential components of a system
designed
to deliver primary and specialty patient services and to promote
medical
and health sciences education and research;
(4) the mission of the university of Kansas hospital is to
facilitate and
support the education, research and public service activities of
the uni-
versity of Kansas medical center and its health sciences schools,
to provide
patient care and specialized services not widely available
elsewhere in the
state and to continue the historic tradition of care by the
university of
Kansas hospital to medically indigent citizens of Kansas;
(5) to provide for the education and training of health care
profes-
sionals, to provide a clinical setting for biomedical research, and
to ensure
the availability of quality patient care including specialized
medical serv-
ices not otherwise widely available, it is necessary that the
university of
Kansas hospital be a facility of the finest possible quality;
(6) such quality hospital, health care and related facilities
require spe-
cialized management and operation to remain economically viable to
earn
revenues necessary for its operation and to engage in arrangements
with
public and private entities and other activities, taking into
account
changes that have occurred or may occur in the future in the
provision
of health care and related services; and
(7) the needs of the citizens of the state of Kansas and of
the univer-
sity of Kansas medical center and its health sciences schools will
be best
served if the university of Kansas hospital is transferred to and
operated
by an independent public authority charged with the mission of
operating
a teaching hospital for the benefit of the university of Kansas
medical
center, providing high quality patient care and providing a site
for medical
and biomedical research.
(b) The exercise of the powers permitted by this act are
deemed an
essential governmental function in matters of public necessity for
the
entire state in the provision of health care, medical and health
sciences
education and research.
New Sec. 3. As used in sections 1 through 15 and 18
through 25, and
amendments thereto, the following words and phrases have the
following
meanings unless a different meaning clearly appears from the
content:
(a) ``Authority'' means the university of Kansas hospital
authority cre-
ated by this act.
(b) ``Board'' means the board of directors of the authority
created by
this act.
(c) ``Health sciences schools'' means the schools of medicine,
nursing,
allied health, pharmacy and any other schools operated by the
university
of Kansas at the university of Kansas medical center.
(d) ``Bonds'' means any bonds, notes, lease certificates of
participa-
tion or other evidences of indebtedness, whether or not the
interest on
which is subject to federal income taxation, issued by the
authority pur-
suant to this act.
(e) ``Hospital assets'' means all records, property or rights
in property,
real and personal, tangible and intangible existing on the transfer
date
specified by this act, used by or accruing to university of Kansas
or the
university of Kansas medical center for the benefit of the
university of
Kansas hospital in the normal course of its operations as a
teaching, re-
search and medical treatment facility.
(f) ``Hospital obligations'' means all debts or other
obligations, con-
tingent or certain, owing on the transfer date under this act to
any person
or other entity, arising out of the operation of the university of
Kansas
hospital as a medical treatment facility, and including, without
limitation,
all bonds and other debts for the purchase of goods and services,
whether
or not delivered, and obligations for the delivery of services,
whether or
not performed.
(g) ``Regents'' means the board of regents of the state of
Kansas.
(h) ``State employee'' means a person employed by the state of
Kansas
whether or not a classified or unclassified employee in the state
personnel
system.
(i) ``Transfer date'' means a date or dates agreed to by the
regents
and the authority which shall be on or after March 1, 1998, but not
later
than December 31, 1998, for the transfer of hospital assets to and
the
assumption of hospital obligations by such authority.
(j) ``University of Kansas hospital'' means the hospital and
hospital
clinics operated by the university of Kansas, separately or jointly
with
another health care provider.
(k) ``State'' means the state of Kansas.
(l) ``Initial board'' means the board of directors initially
appointed by
the governor under this act.
(m) ``Medical center employee'' means an employee of the
university
of Kansas medical center whose salary is not paid in whole or in
part from
the hospital revenue fund.
(n) ``Hospital employee'' means an employee of the university
of Kan-
sas medical center who performs services for the university of
Kansas
hospital as part of one or more departments or other administrative
units
of the hospital and whose salary is paid in whole or in part from
the
hospital revenue fund.
(o) ``President'' means the chief executive officer of the
authority.
(p) ``This act'' means the university of Kansas hospital
authority act.
New Sec. 4. (a) There is hereby established a body
politic and cor-
porate, with corporate succession, to be known as the university of
Kansas
hospital authority. The authority is hereby established as an
independent
instrumentality of this state. Its exercise of the rights, powers
and privi-
leges conferred by this act shall be deemed and held to be the
perform-
ance of an essential governmental function.
(b) The authority shall be governed by a fourteen-member board
of
directors. Eight of the members shall be representatives of the
general
public who are recognized for outstanding knowledge and leadership
in
the fields of finance, business, health-care management, health
care pro-
viders, legal affairs, education or government. Of the eight
members rep-
resenting the general public, there shall be at least one member
from
each congressional district. Three members shall be ex officio
voting
members consisting of the chancellor of the university of Kansas,
the
executive vice chancellor of the university of Kansas medical
center and,
the executive dean of the university of Kansas school of medicine.
Three
members shall be nonvoting ex officio members consisting of, the
chief
of staff of the university of Kansas hospital medical staff, the
president of
the authority and the dean of the university of Kansas school of
nursing.
(c) The eight members representing the general public
appointed to
the initial board shall be appointed by the governor subject to
senate
confirmation as provided in K.S.A. 75-4315b and amendments
thereto.
Any member whose nomination is subject to confirmation during a
reg-
ular session of the legislature shall be deemed terminated when the
senate
rejects the nomination. No such termination shall affect the
validity of
any action taken by such member prior to such termination. Of the
eight
members appointed to the initial board, two shall be members of
the
Kansas board of regents and two members shall be members of the
Kan-
sas legislature. The two legislative appointees shall be appointed
by the
governor from a panel of four nominees composed of (1) one member
of
the legislature nominated by the speaker of the house of
representatives,
(2) one member of the legislature nominated by the minority leader
of
the house of representatives, (3) one member of the legislature
nomi-
nated by the president of the senate, and (4) one member of the
legis-
lature nominated by the minority leader of the senate.
(d) Of the members appointed to the initial board by the
governor,
two members shall be appointed for a term of one year, three
members
shall be appointed for a term of two years and three members shall
be
appointed for a term of three years.
(e) After the initial board of directors is appointed, members
other
than ex officio shall be appointed for a term of three years each,
except
in the event of a vacancy the appointment shall be for the
remainder of
the unexpired portion of the term. Each member shall hold office
for the
term of appointment and until the successor has been nominated
and
approved. Any member is eligible for reappointment, but members
shall
not be eligible to serve more than two consecutive three-year
terms.
(f) Except for appointment of the initial board, when a
vacancy occurs
or is announced regarding a member or members representing the
gen-
eral public, a nominating committee of the board shall forward a
slate of
candidates to the governor for consideration. Appointment to the
board
shall be made by the governor subject to senate confirmation as
provided
in K.S.A. 75-4315b and amendments thereto.
(g) The terms of members serving by virtue of their office
shall expire
immediately upon termination of their holding such office.
(h) The board shall annually elect one of their number as
chairperson
and another as vice-chairperson. The board shall also elect a
secretary
and treasurer for terms determined by the board. The same person
may
serve as both secretary and treasurer. The board shall establish an
exec-
utive committee, nominating committee and other standing or
special
committees and prescribe their duties and powers, and any
executive
committee may exercise all such powers and duties of the board as
the
board may delegate.
(i) Members of the board of directors of the authority shall
serve
without compensation. Members of the board attending meetings of
the
board, or attending a subcommittee meeting thereof authorized by
the
board, shall be paid subsistence allowances, mileage and other
expenses
as provided in K.S.A. 75-3223 and amendments thereto.
(j) No part of the funds of the authority shall inure to the
benefit of,
or be distributed to, its employees, officers or members of the
board,
except that the authority may make reasonable payments for
expenses
incurred on its behalf relating to any of its lawful purposes and
the au-
thority shall be authorized and empowered to pay reasonable
compen-
sation for services rendered to or for its benefit relating to any
of its lawful
purposes including to pay its employees reasonable
compensation.
(k) Any member of the board of directors other than an ex
officio
member may be removed by an affirmative vote of seven of the
members
of the board for malfeasance or misfeasance in office, failure to
regularly
attend meetings, or for any cause which renders said member
incapable
of or unfit to discharge the duties of director.
(l) The board shall meet at least six times per year and at
such other
times as it deems appropriate, or upon call by the president or the
chair-
person, or upon written request of a majority of the directors. The
board
may adopt, repeal and amend such rules, procedures and bylaws,
not
contrary to law or inconsistent with this act, as it deems
expedient for its
own governance and for the governance and management of the
author-
ity. A majority of the total voting membership of the board shall
constitute
a quorum for meetings, and the board may act by a majority of those
at
any meeting where a quorum is present, except upon such issues as
the
board may determine shall require a vote of seven members for
approval.
The initial board shall meet for the initial meeting upon call by
the chan-
cellor of the university of Kansas who shall act as temporary
chairperson
until officers of the board are elected pursuant to subsection
(h).
(m) The board shall appoint a president who shall serve at the
plea-
sure of the board. The president shall serve as the chief executive
officer
of the authority. The president's salary shall be set by the board.
The
board may negotiate and enter into an employment agreement with
the
individual selected as president of the authority which may provide
for
compensation allowances, benefits and expenses as may be included
in
such agreement. The president shall direct and supervise
administrative
affairs and the general management of the authority. The president
shall
be a nonvoting ex officio member of the board.
(n) The board may provide to the president of the authority
and other
employees designated by the board supplemental benefits in addition
to
the benefits provided in section 25, and amendments thereto.
(o) The authority shall continue until terminated by law,
except that
no such law shall take effect so long as the authority has bonds
outstand-
ing, unless adequate provision has been made for the payment or
retire-
ment of such debts or obligations. Upon any such dissolution of the
au-
thority, all property, funds and assets thereof shall be vested in
the state,
university of Kansas medical center or other hospital entity as
designated
by the board and approved by act of the Kansas legislature.
New Sec. 5. (a) All resolutions and orders of the board
shall be re-
corded and authenticated by the signature of the secretary or any
assistant
secretary of the board. The book of resolutions, orders, minutes of
open
meetings, annual reports and annual financial statements of the
authority
shall be public records as defined by K.S.A. 45-215 et seq.
and amend-
ments thereto. All public records shall be subject to regular audit
as pro-
vided in K.S.A. 46-1106 and amendments thereto.
(b) Notwithstanding any provision of K.S.A. 45-215 et
seq. and
amendments thereto the contrary, the following records of the
authority
shall not be subject to the provisions of the Kansas open records
act when
in the opinion of the board the disclosure of the information in
the records
would be harmful to the competitive position of the authority:
(1) Proprietary information gathered by or in the possession
of the
authority from third parties pursuant to a promise of
confidentiality;
(2) contract cost estimates prepared for confidential use in
awarding
contracts for construction or the purchase of goods or
services;
(3) data, records or information of a proprietary nature
produced or
collected by or for the authority or members of its medical or
teaching
staff; financial statements not publicly available that may be
filed with the
authority from third parties; the identity, accounts or account
status of
any customer of the authority; consulting or other reports paid for
by the
authority to assist the authority in connection with its strategic
planning
and goals; and the determination of marketing and operational
strategies
where disclosure of such strategies would be harmful to the
competitive
position of the authority; and
(c) Notwithstanding any provision of this section to the
contrary, the
authority may claim the benefit of any other exemption to the
Kansas
open records act listed in K.S.A. 45-215 et seq. and
amendments thereto.
New Sec. 6. (a) No business of the board shall be
transacted except
at a regular or special meeting at which a quorum consisting of at
least a
majority of the total voting membership of the board is present.
Any
action of the board shall require the affirmative vote of a
majority of those
at any meeting at which a quorum is present.
(b) Notwithstanding any provision of K.S.A. 75-4317 et
seq. and
amendments thereto in the case of the authority, discussion,
considera-
tion and action on any of the following may occur in executive
session
when in the opinion of the board disclosure of the items would be
harmful
to the competitive position of the authority:
(1) Plans that could affect the value of property, real or
personal,
owned or desirable for ownership by the authority;
(2) the condition, acquisition, use or disposition of real or
personal
property;
(3) contracts for provision of health care services and
marketing or
operational strategies; and
(4) peer review and risk management activities as defined in
K.S.A.
65-4914 et seq. and K.S.A. 65-4921 et seq. and
amendments thereto.
(c) Notwithstanding any provision of this section to the
contrary, the
authority may claim the benefit of any other exemption to the
Kansas
open meetings act listed in K.S.A. 75-4317 et seq. and
amendments
thereto.
New Sec. 7. (a) Any member of the board and any employee,
other
agent or advisor of the authority, who has a direct or indirect
interest in
any contract or transaction with the authority, shall disclose this
interest
to the authority in writing. This interest shall be set forth in
the minutes
of the authority, and no director, employee or other agent or
advisor
having such interest shall participate on behalf of the authority
in the
authorization of any such contract or transaction; except that, the
provi-
sions of this section shall not be construed to prohibit any
employee of
the university of Kansas or the university of Kansas medical center
who
is a member of the board, who has no personal interest, from voting
on
the authorization of any such contract or transaction between the
au-
thority and the university or the medical center.
(b) All members of the board shall file a written statement
pursuant
to K.S.A. 46-247 et seq. and amendments thereto regarding
any substan-
tial interests within the meaning of K.S.A. 46-229 and
amendments
thereto that each director may hold. Any employee, other agent or
advisor
of the authority who has a substantial interest in any contract or
trans-
action with the authority within the meaning of K.S.A. 46-229 and
amend-
ments thereto shall file a written statement of substantial
interest pur-
suant to K.S.A. 46-247 et seq. and amendments thereto.
New Sec. 8. (a) The authority shall have all the powers
necessary to
carry out the purposes and provisions of this act, including,
without lim-
itation, the following powers to:
(1) Have the duties, privileges, immunities, rights,
liabilities and dis-
abilities of a body corporate and a political instrumentality of
the state;
(2) have perpetual existence and succession;
(3) adopt, have and use a seal and to alter the same at its
pleasure;
(4) sue and be sued in its own name;
(5) make and execute contracts, guarantees or any other
instruments
and agreements necessary or convenient for the exercise of its
powers
and functions including, without limitation, to make and execute
contracts
with hospitals or other health care businesses to operate and
manage any
or all of the hospital facilities or operations and to incur
liabilities and
secure the obligations of any entity or individual;
(6) borrow money and to issue bonds evidencing the same and
pledge
all or any part of the authority's assets therefor;
(7) purchase, lease, trade, exchange or otherwise acquire,
maintain,
hold, improve, mortgage, sell, lease and dispose of personal
property,
whether tangible or intangible, and any interest therein; and to
purchase,
lease, trade, exchange or otherwise acquire real property or any
interest
therein, and to maintain, hold, improve, mortgage, lease and
otherwise
transfer such real property, so long as such transactions do not
conflict
with the mission of the authority as specified in this act;
(8) incur or assume indebtedness to, and enter into contracts
with
the Kansas development finance authority, which is authorized to
borrow
money and provide financing for the authority;
(9) develop policies and procedures generally applicable to
the pro-
curement of goods, services and construction, based upon sound
business
practices;
(10) contract for and to accept any gifts, grants and loans of
funds,
property, or any other aid in any form from the federal government,
the
state, any state agency, or any other source, or any combination
thereof,
and to comply with the provisions of the terms and conditions
thereof;
(11) acquire space, equipment, services, supplies and
insurance nec-
essary to carry out the purposes of this act;
(12) deposit any moneys of the authority in any banking
institution
within or without the state or in any depository authorized to
receive such
deposits, one or more persons to act as custodians of the moneys of
the
authority, to give surety bonds in such amounts in form and for
such
purposes as the board requires;
(13) procure such insurance, participate in such insurance
plans or
provide such self insurance or both as it deems necessary or
convenient
to carry out the purposes and provisions of this act; the purchase
of in-
surance, participation in an insurance plan or creation of a
self-insurance
fund by the authority shall not be deemed as a waiver or
relinquishment
of any sovereign immunity to which the authority or its officers,
directors,
employees or agents are otherwise entitled;
(14) appoint, supervise and set the salary and compensation of
a pres-
ident of the authority who shall be appointed by and serve at the
pleasure
of the board;
(15) fix, revise, charge and collect rates, rentals, fees and
other
charges for the services or facilities furnished by or on behalf of
the au-
thority, and to establish policies and procedures regarding any
such serv-
ice rendered for the use, occupancy or operation of any such
facility; such
charges and policies and procedures not to be subject to
supervision or
regulation by any commission, board, bureau or agency of the State;
and
(16) do any and all things necessary or convenient to carry
out the
authority's purposes and exercise the powers given in this act.
(b) The authority may create, own in whole or in part, or
otherwise
acquire or dispose of any entity organized for a purpose related to
or in
support of the mission of the authority.
(c) The authority may participate in joint ventures with
individuals,
corporations, governmental bodies or agencies, partnerships,
associations,
insurers or other entities to facilitate any activities or programs
consistent
with the public purpose and intent of this act.
(d) The authority may create a nonprofit entity or entities
for the
purpose of soliciting, accepting and administering grants, outright
gifts
and bequests, endowment gifts and bequests and gifts and bequests
in
trust which entity or entities shall not engage in trust
business.
(e) In carrying out any activities authorized by this act, the
authority
may provide appropriate assistance, including the making of loans
and
providing time of employees, to corporations, partnerships,
associations,
joint ventures or other entities, whether or not such corporations,
part-
nerships, associations, joint ventures or other entities are owned
or con-
trolled in whole or in part, directly or indirectly, by the
authority.
(f) Effective with the transfer date, all moneys of the
authority shall
be deposited in one or more banks or trust companies in one or
more
special accounts. All banks and trust companies are authorized to
give
security for such deposits if required by the authority. The moneys
in
such accounts shall be paid out on a warrant or other orders of the
trea-
surer of the authority or any such other person or persons as the
authority
may authorize to execute such warrants or orders.
(g) Notwithstanding any provision of law to the contrary, the
author-
ity, effective with the transfer date, may invest the authority's
operating
funds in any obligations or securities as authorized by the board.
The
board shall adopt written investment guidelines.
(h) The authority is authorized to negotiate contracts with
one or
more qualified parties to provide collection services. The
selection of a
collection services provider shall be based on responses to a
request for
proposals from qualified professional firms and shall be
administered in
accordance with policies adopted by the board.
(i) Notwithstanding any provision of law to the contrary, no
abortion
shall be performed, except in the event of a medical emergency, in
any
medical facility, hospital or clinic owned, leased or operated by
the au-
thority. The provisions of this subsection are not applicable to
any mem-
ber of the physician faculty of the university of Kansas school of
medicine
on property not owned, leased or operated by the authority. As used
in
this subsection, ``medical emergency'' means a pregnant woman's
medical
condition that, on the basis of a physician's good-faith clinical
judgment,
necessitates an immediate abortion to avert the woman's death or to
avert
a serious risk of substantial and irreversible impairment of a
major bodily
function.
New Sec. 9. (a) Following the creation of the authority
and on the
transfer date or transfer dates under this act, the regents shall
have the
authority to lease, convey, or otherwise transfer to the authority
some or
all hospital assets, except land which may be leased to the
authority for a
nominal amount for a term not to exceed 99 years. Any such lease,
con-
veyance or transfer shall be on such terms as may be approved by
the
regents, in exchange for the authority's agreement to assume the
hospital
obligations and to support the education, research, patient care,
care to
the medically indigent and public service activities of the
university of
Kansas medical center. The authority may be compensated by the
uni-
versity of Kansas medical center for such services from moneys
appro-
priated by the legislature to the university of Kansas medical
center for
such purposes or directly to the authority for such services.
(b) Any such lease, conveyance or transfer of hospital assets
to the
authority shall be conditioned upon the existence of a binding
agreement
between the regents and the authority which provides that effective
on
the transfer date under this act and thereafter, the authority
shall assume
responsibility for and shall defend, indemnify and hold harmless
the re-
gents and the state and the university of Kansas and its of
officers and
directors with respect to:
(1) Liabilities and duties of the regents pursuant to
contracts, agree-
ments and leases for commodities, services, and supplies utilized
by uni-
versity hospital, including real property leases;
(2) claims related to the employment relationship between
employ-
ees of the authority and the authority on and after the transfer
date under
this act;
(3) claims for breach of contract resulting from the
authority's action
or failure to act on and after the transfer date under this act;
and
(4) claims related to the authority's errors and omissions
including,
but not limited to: Medical malpractice; directors and officers
liability;
workers' compensation; automobile liability; and premises,
completed op-
erations and products liability.
(c) Any lease, conveyance or transfer of hospital assets to
the author-
ity shall be further conditioned upon the existence of a binding
agreement
between the regents and the authority by which the authority shall
accept
and agree to abide by the provisions set forth in section 2 and
amend-
ments thereto concerning the mission of the authority and the
provisions
in section 11 and amendments thereto concerning employees of the
uni-
versity hospital.
(d) Any disputes that arise in the transfer of property from
the uni-
versity to the authority shall be resolved by the governor.
New Sec. 10. Following the creation of the authority and
on the
transfer date under this act, the regents shall have no further
control over,
or responsibility for the operation of the university of Kansas
hospital.
New Sec. 11. (a) The authority may employ such employees
as it may
require and upon such terms and conditions as it may establish.
The
authority shall establish personnel, payroll, benefit and other
such systems
as authorized by the board, such systems to be initially
established or
contracted by the transfer date. The authority shall determine the
qual-
ifications and duties of its employees subject to any statutes
concerning
licensure, certification or registration under state law. The board
shall
develop and adopt policies and procedures that will afford its
employees
grievance rights, ensure that employment decisions shall be based
upon
merit and fitness of applicants and shall prohibit discrimination
because
of race, religion, color, sex or national origin.
(b) Nothing in this act or any act of which it is amendatory
shall be
construed as placing any officer or employee of the authority in
the clas-
sified or the unclassified service under the Kansas civil service
act.
(c) All current hospital employees of the university of Kansas
medical
center shall transfer to the authority. The authority and the
university of
Kansas medical center shall then jointly determine any medical
center
employees whose employment shall be transferred to the authority.
The
university shall issue a written notice to all persons whose
employment
will be transferred to the authority. After receipt of such notice,
each
such employee may elect not to be employed by the authority by
sub-
mitting a written statement of such election within 45 days after
receipt
of such notice. Any classified employee of the university of Kansas
med-
ical center who receives such notice of transfer to the authority
and elects
not to become employed by the authority and who is not reemployed
by
any department, institution, board, commission or agency of the
state
shall be subject to the provisions of K.S.A. 75-2948 et seq.
and amend-
ments thereto. Any unclassified employee or unclassified health
care
worker of the university of Kansas medical center who receives such
no-
tice of transfer to the authority and elects not to become employed
by
the authority shall be subject to the employment policies of the
university
of Kansas medical center. Any employee who accepts employment
with
the authority shall not be considered to be involuntarily separated
from
state employment.
(d) Hospital employees and medical center employees of the
univer-
sity of Kansas medical center who transfer to the authority to a
position
of similar duties as of the transfer date shall receive the same
rate of
compensation as was received by the employee prior to such
transfer.
(e) Notwithstanding the provisions of K.A.R. 1-9-13 or any
other rules
and regulations or of any statute to the contrary, all vacation
leave and
sick leave balances of employees of the university of Kansas
medical cen-
ter who accept employment with the authority as of the transfer
date shall
be transferred from the university of Kansas medical center to the
au-
thority.
(f) The authority and the university of Kansas medical center
may
enter into agreements providing for the purchase of services of
employees
of the university of Kansas medical center utilized in support of
the hos-
pital by payment of such amounts as may be agreed upon by the
parties.
(g) Nothing in this act shall affect the representation rights
of collec-
tive bargaining organizations that represent employees of the
university
of Kansas medical center who transfer to the authority, nor shall
it affect
any term or condition of any collective bargaining agreement in
effect on
the effective date of this act. The authority shall be a public
agency for
purposes of the Kansas public employer-employee relations act,
K.S.A.
75-4321 et seq., and amendments thereto.
(h) The authority is authorized to establish a health
insurance plan
for the benefit of its employees or to enter into agreements with
the
department of administration in accordance with K.S.A. 75-6503
and
amendments thereto, providing for the coverage of its employees
under
the state employees' health insurance plan. Notwithstanding any
other
provision of law to the contrary, any person whose employment is
trans-
ferred to the authority as a result of this act and who is a member
of any
plan providing health insurance coverage as an employee of the
university
of Kansas medical center and who so elects to continue such
coverage
shall continue to be a member of such health insurance plan under
the
same terms and conditions as if no transfer had occurred, with such
elec-
tion to continue through the current state employees' health
insurance
coverage period. Alternatively, an employee may elect to become a
mem-
ber of any health insurance plan established by the authority.
New Sec. 12. (a) (1) The authority has the power and
is authorized
to issue from time to time the authority's bonds in such principal
amounts
as the authority determines to be necessary to provide sufficient
funds
for achieving any of the authority's corporate purposes, including
the pay-
ment of interest on bonds of the authority, the establishment of
reserves
to secure such bonds, refunding any outstanding bonds and all other
ex-
penditures of the authority incident to and necessary or convenient
to
carry out its corporate purposes and powers.
(2) Except as may otherwise be expressly provided by the
authority,
every issue of the authority's bonds shall be obligations of the
authority
payable out of any revenues or moneys of the authority, subject
only to
any agreements with the holders of particular bonds pledging any
partic-
ular revenues.
(b) (1) The bonds shall be authorized by a resolution
adopted by the
board.
(2) For each bond issuance, the board shall select a bond
financing
team, including bond counsel and bond underwriter and any other
pro-
fessional service provider required, to provide all professional
services
required for the bond issuance. The selection shall be based on
responses
to a request for proposals from qualified professional firms,
administered
in accordance with policies adopted by the board.
(c) Any resolution authorizing any bonds or any issue thereof
may
contain such provisions as deemed appropriate by the board for the
pur-
pose of carrying out the authority's corporate purposes and
securing such
bonds, which shall be a part of the contract with the holders
thereof, as
to:
(1) Pledging all or any part of the revenues of the authority
to secure
the payment of the bonds or of any issue thereof, subject to such
agree-
ments with bondholders as may then exist;
(2) pledging all or any part of the assets of the authority to
secure the
payment of the bonds or of any issue of bonds, subject to such
agreements
with bondholders as may then exist, such assets to include any
grant or
contribution from the federal government or any corporation,
association,
institution or person;
(3) the setting aside of reserves or sinking funds and the
regulation
and disposition thereof;
(4) limitations on the purpose to which the proceeds of sale
of bonds
may be applied and pledging such proceeds to secure the payment of
the
bonds or of any issues thereof;
(5) limitations on the issuance of additional bonds, the terms
upon
which additional bonds may be issued and secured, and the refunding
of
outstanding or other bonds;
(6) the procedure, if any, by which the terms of any contract
with
bondholders may be amended or abrogated, the amount of bonds
the
holders of which must consent thereto, and the manner in which
such
consent may be given;
(7) limitations on the amount of moneys to be expended by the
au-
thority for operating expenses of the authority;
(8) vesting in a trustee such property, rights, powers and
duties in
trust as the authority may determine, which may include any or all
of the
rights, powers and duties of the trustee appointed by the
bondholders
pursuant to this act, and limiting or abrogating the right of the
bond-
holders to appoint a trustee under this act or limiting the rights,
powers
and duties of such trustee;
(9) defining the acts or omissions to act which shall
constitute a de-
fault in the obligations and duties of the authority to the holders
of the
bonds and providing for the rights and remedies of the holders of
the
bonds in the event of such default, including as a matter of right
the
appointment of a receiver, except that such rights and remedies
shall not
be inconsistent with the general laws of this state and the other
provisions
of this act; and
(10) any other matters, of like or different character, which
in any
way affect the security or protection of the holders of the notes
or bonds.
(d) Any of the provisions relating to any bonds described in
this sec-
tion may be set forth in a trust indenture authorized by a
resolution of
the board.
(e) The bonds of each issue may, in the discretion of the
board, be
made redeemable before maturity at such prices and under such
terms
and conditions as may be determined by the board. Bonds shall
mature
at such time, not exceeding thirty years from their date of issue,
as may
be determined by the board. The bonds may be issued as serial
bonds
payable in annual installments or as term bonds or as a
combination
thereof. The bonds shall bear interest at such rate either fixed or
variable,
be in such denominations, be in such form, either coupon or
registered,
carry such registration privileges, be executed in such manner, be
payable
in such medium of payment and at such place, and be subject to
such
terms of redemption as provided in the resolution of trust
indenture. The
bonds of the authority may be sold by the authority, at public or
private
sale, at such price as the board shall determine.
(f) In case any officer whose signature or a facsimile of
whose sig-
nature appears on any bonds or coupons attached thereto ceases to
be
such officer before the delivery thereof, such signature or such
facsimile
shall nevertheless be valid and sufficient for all purposes the
same as if
such officer had remained in office until such delivery. The board
may
also provide for the authentication of the bonds by a trustee or
fiscal
agent.
(g) Prior to the preparation of definitive bonds, the
authority may,
under like restrictions, issue interim receipts or temporary bonds
until
such definitive bonds have been executed and are available for
delivery.
(h) The authority, subject to such agreements with bondholders
as
may then exist, has the power out of any funds available therefor
to pur-
chase bonds of the authority, which shall thereupon be canceled at
a price
not exceeding:
(1) If the bonds are then redeemable, the redemption price
then
applicable plus accrued interest to the next interest payment
thereon; or
(2) if the bonds are not then redeemable, the redemption price
ap-
plicable on the first date after such purchase upon which the bonds
be-
come subject to redemption plus accrued interest to such date.
(i) In the discretion of the authority, the bonds may be
secured by a
trust indenture by and between the authority and a corporate
trustee,
which may be any trust company or bank having the power of a
trust
company within or without this state. Such trust indenture may
contain
such provisions for protecting and enforcing the rights and
remedies of
the bondholders as may be reasonable and proper and not in
violation of
law, including covenants setting forth the duties of the authority
in rela-
tion to the exercise of its corporate powers and the custody,
safeguarding
and application of all moneys. The authority may provide by such
trust
indenture for the payment of the proceeds of the bonds and the
revenues
to the trustee under such trust indenture or other depository and
for the
method of disbursement thereof, with such safeguards and
restrictions as
it may determine. All expenses incurred in carrying out such trust
inden-
ture may be treated as a part of the operating expenses of the
authority.
(j) Any bonds issued pursuant to this section, and the income
there-
from (including any profit from the sale thereof) shall at all
times be free
from taxation by the state or any agency, political subdivision or
instru-
mentality of the state.
(k) Any holder of bonds issued under the provisions of this
act, or
any coupons appertaining thereto and the trustee under any trust
agree-
ment or resolution authorizing the issuance of such bonds, except
the
rights under this act may be restricted by such trust agreement or
reso-
lution, may, either at law or in equity by suit, action, mandamus
or other
proceeding, protect and enforce any and all rights under the laws
of the
state or granted under this act or under such agreement or
resolution, or
under any other contract executed by the authority pursuant to this
act,
and may enforce and compel the performance of all duties required
by
this act or by such trust agreement or resolution to be performed
by the
authority or by an officer thereof.
(l) Notwithstanding any of the foregoing provisions of this
act or any
recitals in any bonds issued under the provisions of this act, all
such bonds
and interest coupons appertaining thereto shall be negotiable
instruments
under the laws of this state, subject only to any applicable
provisions for
registration.
(m) Bonds issued under the provisions of this act are hereby
made
securities in which all insurance companies, trust companies,
banking
associations, savings and loan associations, investment companies,
exec-
utors, administrators, trustees and other fiduciaries may properly
and le-
gally invest funds, including capital in their control or belonging
to them.
Such bonds are hereby made securities which may properly and
legally
be deposited with and received by any state or municipal officer or
any
agency or political subdivision of the state for any purpose for
which the
deposit of bonds or obligations of the state is authorized by
law.
(n) Neither the state of Kansas nor the regents shall be
liable for
bonds of the authority, and such bonds shall not constitute a debt
of the
state or of the regents. The bonds shall contain on the face
thereof a
statement to such effect.
(o) Neither the members of the board nor any authorized
person
executing bonds issued pursuant to this act shall be personally
liable for
such bonds by reason of the execution or issuance thereof.
(p) The authority shall submit to the regents, the governor
and the
legislature within six months after the end of the fiscal year a
report which
shall set forth a complete and detailed operating and financial
statement
of the authority during such year. Also included in the report
shall be
comprehensive information regarding all audit reports performed in
such
year including any legislative post audit report performed under
K.S.A.
46-1106 et seq. and amendments thereto and any
recommendations with
reference to additional legislation or other action that may be
necessary
to carry out the purposes of the authority.
(q) This state does hereby pledge to and agree with the
holders of
any bonds issued under this act that this state will not limit or
alter the
rights hereby vested in the authority to fulfill the terms of any
agreements
made with the such holders thereof or in any way impair the rights
and
remedies of such holders until such bonds, together with the
interest
thereon, with interest on any unpaid installments of interest, and
all costs
and expenses in connection with any action or proceeding by or on
behalf
of such holders are fully met and discharged. The authority is
authorized
to include this pledge and agreement of this state in any agreement
with
the holders of such bonds.
(r) Nothing in this act shall be construed as a restriction or
limitation
upon any other powers which the authority might otherwise have
under
any other law of this state, and this act is cumulative to any such
powers.
This act does and shall be construed to provide a complete,
additional
and alternative method for the doing of the things authorized
thereby
and shall be regarded as supplemental and additional to powers
conferred
by other laws. However, the issuance of bonds under the provisions
of
this act need not comply with the requirements of any other state
law
applicable to the issuance of bonds. No proceedings, notice or
approval
shall be required for the issuance of any bonds or any instrument
as
security therefor, except as is provided in this act.
(s) Any of the provisions relating to bonds described in this
section
may be included in any contracts between the authority and the
Kansas
development finance authority relating to obligations of the Kansas
de-
velopment finance authority issued on behalf of the authority.
New Sec. 13. The authority shall be exempt from any
general ad
valorem taxes upon any property of the authority acquired and used
for
its public purposes, and from any taxes or assessments upon any
projects
or upon any operations of the authority or the income therefrom,
and
from any taxes or assessments upon any project or any property or
local
obligation acquired or used by the authority under the provisions
of this
act or upon the income therefrom. Purchases by the authority to be
used
for its public purposes shall not be subject to sales or use tax
under K.S.A.
79-3601 et seq., K.S.A. 79-3701 et seq. and
subsection (b) of K.S.A. 79-
3606 et seq. and amendments thereto. The exemptions hereby
granted
shall not extend to persons or entities conducting on the
authority's prop-
erty business for which payment of state and local taxes would
otherwise
be required.
New Sec. 14. The authority is authorized to enter into
contractual
agreements with the university of Kansas medical center for the
provision
of services. Such agreements shall provide for appropriate
compensation
to the entity providing the service. When the university wishes to
acquire
services from the authority, such acquisitions shall be exempt from
state
purchasing statutes and may be acquired on a sole source basis.
Copies
of such contractual agreements between the authority and the
university
shall be maintained on file in the office of the board of
regents.
New Sec. 15. Notwithstanding any other provision of law
to the con-
trary, the authority, its officers, directors, employees and agents
shall con-
tinue to be subject to and covered by the Kansas tort claims act,
K.S.A.
75-6101, et seq. and amendments thereto.
Sec. 16. K.S.A. 75-6117 is hereby amended to read as
follows: 75-
6117. (a) There is hereby established in the state treasury the
tort claims
fund which shall be administered by the attorney general. All
expendi-
tures from such fund shall be made upon warrants of the director
of
accounts and reports pursuant to vouchers approved by the attorney
gen-
eral or by a designee of the attorney general.
(b) Moneys in the tort claims fund shall be used only for the
purpose
of paying (1) compromises, settlements and final judgments arising
from
claims against the state or an employee of the state under the
Kansas tort
claims act or under the civil rights laws of the United States or
of the
state of Kansas and (2) costs of defending the state or an employee
of the
state in any actions or proceedings on those claims. Payment of a
com-
promise or settlement shall be subject to approval by the state
finance
council as provided in K.S.A. 75-6106 and amendments thereto.
Payment
of a final judgment shall be made from the fund if there has been
a
determination of any appeal taken from the judgment or, if no
appeal is
taken, if the time for appeal has expired. No payment shall be made
from
the fund to satisfy a compromise, settlement or final judgment when
there
exists insurance coverage obtained therefor, except that payment
shall be
made from the fund to satisfy a compromise settlement or final
judgment
for claims against the state or an employee of the state in any
actions or
proceedings arising from rendering or failure to render
professional serv-
ices by (A) a charitable health care provider as defined by K.S.A.
75-6102
and amendments thereto, (B) a local health department as defined
by
K.S.A. 65-241 and amendments thereto or an employee thereof, or
(C)
an indigent health care clinic as defined by K.S.A. 75-6115 and
amend-
ments thereto, or an employee thereof, even if there exists
insurance
coverage obtained therefor.
(c) Upon certification by the attorney general to the director
of ac-
counts and reports that the unencumbered balance in the tort claims
fund
is insufficient to pay an amount for which the fund is liable, the
director
of accounts and reports shall transfer an amount equal to the
insufficiency
from the state general fund to the tort claims fund.
(d) When payment is made from the Kansas tort claims fund
on behalf
of the university of Kansas hospital authority, the authority
shall transfer
to the tort claims fund an amount equal to the payment made by
the tort
claims fund on behalf of the authority.
(e) This section shall be part of and supplemental to
the Kansas tort
claims act.
Sec. 17. K.S.A. 76-745 is hereby amended to read as
follows: 76-745.
(a) As used in this section ``negotiating committee'' means a
committee
to negotiate as provided in this act, and consisting of the
executive officer
of the state board of regents or a person designated by the
executive
officer, two representatives of the state educational institutions
as desig-
nated by the state board of regents and the director of purchases
or a
person designated by the director of purchases, except that
for collection
services for hospital revenue collection for the university
of Kansas med-
ical center, the negotiating committee shall consist of the
chairperson of
the state board of regents or a person designated by the
chairperson, the
attorney general or a person designated by the attorney
general, and the
chancellor of the university of Kansas or a person
designated by the chan-
cellor.
(b) The state board of regents shall convene a negotiating
committee
to obtain collection services. The negotiating committee is
authorized to
negotiate contracts with one or more qualified parties to provide
collec-
tion services for the state educational institutions and such
contracts may
be entered on a multi-year basis, except in the case of
collection services
for hospital revenue collection for the university of
Kansas medical center,
each contract for such collection services shall be
negotiated on the basis
of criteria prescribed by the university of Kansas medical
center and shall
be entered into by the university of Kansas medical center
and one or
more qualified parties.
(c) Prior to negotiating for collection services, the
committee shall
advertise for proposals, negotiate with firms submitting proposals
and
select among those submitting such proposals the party or parties
to con-
tract with for the purposes of collection services.
(d) Contracts entered into pursuant to this section shall not
be subject
to the provisions of K.S.A. 75-3738 to 75-3740a, inclusive, and
amend-
ments thereto.
New Sec. 18. Notwithstanding any other provision of law
to the con-
trary, the authority, its officers, directors, employees and agents
shall con-
tinue to be subject to the provisions of K.S.A. 40-3401, et
seq. and amend-
ments thereto.
New Sec. 19. This act shall be liberally construed.
Nothing contained
herein is or shall be construed as a restriction of limitation upon
any
powers which the authority might otherwise have under other law of
this
state, and the provisions of this act are cumulative to such
powers. The
provisions hereof do and shall be construed to provide a complete,
ad-
ditional and alternative method for the doing of the things
authorized and
shall be regarded as supplemental and additional to any other laws.
In-
sofar as the provisions of this act are inconsistent with the
provisions of
any other law, general, specific or local, the provisions of this
act shall be
controlling.
New Sec. 20. Nothing in this act should be construed as
allowing the
board to either sell or lease the hospital or merge it with another
insti-
tution without prior legislative authorization by statute.
New Sec. 21. If any provision of this act or the
application thereof is
held invalid, the invalidity shall not affect other provisions or
applications
of the act which can be given effect without the invalid provision
or ap-
plication, and to this end the provisions of this act are
severable.
New Sec. 22. (a) Notwithstanding any laws or regulations
to the con-
trary, the authority shall not be subject to any further process or
proce-
dure that requires the submission, review or approval to any
capital pro-
ject; however, the authority shall ensure that nationally
recognized fire
prevention code and life safety inspections under K.S.A. 31-132
et seq.
and amendments thereto of any capital project are conducted and
that
such projects are inspected by the state fire marshal, or the state
fire
marshal's designee, prior to certification for building
occupancy.
(b) The authority shall also be subject to any applicable
state, county
and local building codes.
(c) The state building codes shall supersede any like
standards of a
county or local code unless those standards are more stringent than
the
state standards.
New Sec. 23. After the effective date of this act and
prior to the
transfer date, the university of Kansas medical center is
authorized to
transfer funds from the hospital revenue fund to the authority upon
ap-
proval of the regents.
New Sec. 24. The authority is exempt from the provisions
of K.S.A.
12-1675 through 12-1677, 75-1250 through 75-1270, 75-2925 through
75-
2975, 75-3701 through 75-37,119, 75-4701 through 75-4744, and
77-501
through 77-550 and amendments thereto.
New Sec. 25. The authority shall affiliate with the
Kansas public em-
ployees retirement system on the transfer date as defined in
section 3
and amendments thereto, in accordance with the provisions of K.S.A.
74-
4910 and 74-4927 and amendments thereto for current and future
em-
ployees. Any person who was an employee of the university of
Kansas
medical center and a member of the system on the transfer date
and
whose employment is transferred to the authority as provided in the
uni-
versity of Kansas hospital authority act shall continue to be a
member of
the system. For all those members of the faculty and other persons
em-
ployed by the board of regents who were receiving assistance in the
pur-
chase of retirement annuities as provided in K.S.A. 74-4925 and
amend-
ments thereto on the transfer date and whose employment is
transferred
to the authority as provided in the university of Kansas hospital
authority
act, the authority shall assist such employees in the purchase of
retirement
annuities as provided in K.S.A. 74-4925 and amendments thereto
and
shall continue to provide the insured death and disability benefits
as pro-
vided in K.S.A. 74-4927a and 74-4927g and amendments thereto.
For
future employees employed by the authority on or after the transfer
date,
the authority shall designate whether such employee shall be a
member
of the system or whether the authority shall provide assistance in
the
purchase of retirement annuities as provided in K.S.A. 74-4925
and
amendments thereto.
Sec. 26. K.S.A. 79-201b is hereby amended to read as
follows: 79-
201b. The following described property, to the extent herein
specified,
shall be and is hereby exempt from all property or ad valorem taxes
levied
under the laws of the state of Kansas:
First. All real property, and tangible personal property,
actually and
regularly used exclusively for hospital purposes by a hospital as
the same
is defined by K.S.A. 65-425, and amendments thereto, or a
psychiatric
hospital as the same was defined by K.S.A. 59-2902, and
amendments
thereto, as in effect on January 1, 1976, which hospital or
psychiatric
hospital is operated by a corporation organized not for profit
under the
laws of the state of Kansas or by a corporation organized not for
profit
under the laws of another state and duly admitted to engage in
business
in this state as a foreign, not-for-profit corporation, or a
public hospital
authority; and all intangible property including moneys,
notes and other
evidences of debt, and the income therefrom, belonging exclusively
to
such a corporation and used exclusively for hospital
or, psychiatric hospital
or public hospital authority purposes. This exemption shall
not be
deemed inapplicable to property which would otherwise be exempt
pur-
suant to this paragraph because any such hospital
or, psychiatric hospital
or public hospital authority: (a) Uses such property for a
nonexempt pur-
pose which is minimal in scope and insubstantial in nature if such
use is
incidental to the exempt purpose enumerated in this paragraph; or
(b) is
reimbursed for the actual expense of using such property for the
exempt
purposes enumerated in this paragraph or paragraph second of
K.S.A.
79-201, and amendments thereto; or (c) permits the use of such
property
for the exempt purposes enumerated in this paragraph or paragraph
sec-
ond of K.S.A. 79-201, and amendments thereto, by more than one
agency
or organization for one or more of such purposes.
Second. All real property, and tangible personal property,
actually and
regularly used exclusively for adult care home purposes by an adult
care
home as the same is defined by K.S.A. 39-923, and amendments
thereto,
which is operated by a corporation organized not for profit under
the laws
of the state of Kansas or by a corporation organized not for profit
under
the laws of another state and duly admitted to engage in business
in this
state as a foreign, not-for-profit corporation, charges to
residents for serv-
ices of which produce an amount which in the aggregate is less than
the
actual cost of operation of the home or the services of which are
provided
to residents at the lowest feasible cost, taking into consideration
such
items as reasonable depreciation, interest on indebtedness,
acquisition
costs, interest and other expenses of financing acquisition costs,
lease
expenses and costs of services provided by a parent corporation at
its
costs, contributions to which are deductible under the Kansas
income tax
act; and all intangible property including moneys, notes and other
evi-
dences of debt, and the income therefrom, belonging exclusively to
such
corporation and used exclusively for adult care home purposes. The
fact
that real property or real or tangible personal property may be
leased
from a not-for-profit corporation, which is exempt from federal
income
taxation pursuant to section 501(c)(3) of the internal revenue code
of
1986, and amendments thereto, and which is the parent corporation
to
the not-for-profit operator of an adult care home, shall not be
grounds to
deny exemption or deny that such property is actually and regularly
used
exclusively for adult care home purposes by an adult care home, nor
shall
the terms of any such lease be grounds for any such denial.
Third. All real property, and tangible personal property,
actually and
regularly used exclusively for private children's home purposes by
a pri-
vate children's home as the same is defined by K.S.A. 75-3329,
and
amendments thereto, which is operated by a corporation organized
not
for profit under the laws of the state of Kansas or by a
corporation or-
ganized not for profit under the laws of another state and duly
admitted
to engage in business in this state as a foreign, not-for-profit
corporation,
charges to residents for services of which produce an amount which
in
the aggregate is less than the actual cost of operation of the home
or the
services of which are provided to residents at the lowest feasible
cost,
taking into consideration such items as reasonable depreciation and
in-
terest on indebtedness, and contributions to which are deductible
under
the Kansas income tax act; and all intangible property including
moneys,
notes and other evidences of debt, and the income therefrom,
belonging
exclusively to such a corporation and used exclusively for
children's home
purposes.
Fourth. All real property and tangible personal property,
actually and
regularly used exclusively for housing for elderly and handicapped
per-
sons having a limited or lower income, or used exclusively for
cooperative
housing for persons having a limited or low income, assistance for
the
financing of which was received under 12 U.S.C.A. 1701 et
seq., or under
42 U.S.C.A. 1437 et seq., which is operated by a corporation
organized
not for profit under the laws of the state of Kansas or by a
corporation
organized not for profit under the laws of another state and duly
admitted
to engage in business in this state as a foreign, not-for-profit
corporation;
and all intangible property including moneys, notes and other
evidences
of debt, and the income therefrom, belonging exclusively to such a
cor-
poration and used exclusively for the purposes of such housing. For
the
purposes of this subsection, cooperative housing shall mean those
not-
for-profit cooperative housing projects operating pursuant to
sections 236
or 221(d)(3), or both, of the national housing act and which have
been
approved as a cooperative housing project pursuant to applicable
federal
housing administration and U.S. Department of Housing and Urban
De-
velopment statutes, and rules and regulations, during such time as
the
use of such properties are restricted pursuant to such act,
statutes or rules
and regulations.
Fifth. All real property and tangible personal property,
actually and
regularly used exclusively for housing for elderly persons, which
is oper-
ated by a corporation organized not for profit under the laws of
the state
of Kansas or by a corporation organized not for profit under the
laws of
another state and duly admitted to engage in business in this state
as a
foreign, not-for-profit corporation, in which charges to residents
produce
an amount which in the aggregate is less than the actual cost of
operation
of the housing facility or the services of which are provided to
residents
at the lowest feasible cost, taking into consideration such items
as rea-
sonable depreciation and interest on indebtedness and contributions
to
which are deductible under the Kansas income tax act; and all
intangible
property including moneys, notes and other evidences of debt, and
the
income therefrom, belonging exclusively to such corporation and
used
exclusively for the purpose of such housing.
Sixth. All real property and tangible personal property
actually and
regularly used exclusively for the purpose of group housing of
mentally
ill or retarded and other handicapped persons which is operated by
a
corporation organized not for profit under the laws of the state of
Kansas
or by a corporation organized not for profit under the laws of
another
state and duly admitted to engage in business in this state as a
foreign,
not-for-profit corporation, in which charges to residents produce
an
amount which in the aggregate is less than the actual cost of
operation of
the housing facility or the services of which are provided to
residents at
the lowest feasible cost, taking into consideration such items as
reasonable
depreciation and interest on indebtedness and contributions to
which are
deductible under the Kansas income tax act, and which is licensed
as a
facility for the housing of mentally ill or retarded and other
handicapped
persons under the provisions of K.S.A. 75-3307b, and amendments
thereto, or as a rooming or boarding house used as a facility for
the
housing of mentally retarded and other handicapped persons which
is
licensed as a lodging establishment under the provisions of K.S.A.
36-501
et seq., and amendments thereto.
The provisions of this section shall apply to all taxable years
commenc-
ing after December 31, 1995.
Sec. 27. K.S.A. 79-3606 is hereby amended to read as
follows: 79-
3606. The following shall be exempt from the tax imposed by this
act:
(a) All sales of motor-vehicle fuel or other articles upon
which a sales
or excise tax has been paid, not subject to refund, under the laws
of this
state except cigarettes as defined by K.S.A. 79-3301 and
amendments
thereto, cereal malt beverages and malt products as defined by
K.S.A. 79-
3817 and amendments thereto, including wort, liquid malt, malt
syrup
and malt extract, which is not subject to taxation under the
provisions of
K.S.A. 79-41a02 and amendments thereto, and motor vehicles as
defined
by K.S.A. 79-1017 and amendments thereto;
(b) all sales of tangible personal property or service,
including the
renting and leasing of tangible personal property, purchased
directly by
the state of Kansas, a political subdivision thereof, other than a
school or
educational institution, or purchased by a public or private
nonprofit hos-
pital or public hospital authority or nonprofit blood,
tissue or organ bank
and used exclusively for state, political subdivision, hospital
or public hos-
pital authority or nonprofit blood, tissue or organ bank
purposes, except
when: (1) Such state or, hospital or
public hospital authority is engaged
or proposes to engage in any business specifically taxable under
the pro-
visions of this act and such items of tangible personal property or
service
are used or proposed to be used in such business, or (2) such
political
subdivision is engaged or proposes to engage in the business of
furnishing
gas, water, electricity or heat to others and such items of
personal prop-
erty or service are used or proposed to be used in such
business;
(c) all sales of tangible personal property or services,
including the
renting and leasing of tangible personal property, purchased
directly by
a public or private elementary or secondary school or public or
private
nonprofit educational institution and used primarily by such school
or
institution for nonsectarian programs and activities provided or
sponsored
by such school or institution or in the erection, repair or
enlargement of
buildings to be used for such purposes. The exemption herein
provided
shall not apply to erection, construction, repair, enlargement or
equip-
ment of buildings used primarily for human habitation;
(d) all sales of tangible personal property or services
purchased by a
contractor for the purpose of constructing, equipping,
reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling
facilities for
any public or private nonprofit hospital or public hospital
authority, pub-
lic or private elementary or secondary school or a public or
private non-
profit educational institution, which would be exempt from taxation
under
the provisions of this act if purchased directly by such hospital
or public
hospital authority, school or educational institution; and
all sales of tan-
gible personal property or services purchased by a contractor for
the
purpose of constructing, equipping, reconstructing, maintaining,
repair-
ing, enlarging, furnishing or remodeling facilities for any
political subdi-
vision of the state, the total cost of which is paid from funds of
such
political subdivision and which would be exempt from taxation under
the
provisions of this act if purchased directly by such political
subdivision.
Nothing in this subsection or in the provisions of K.S.A. 12-3418
and
amendments thereto, shall be deemed to exempt the purchase of
any
construction machinery, equipment or tools used in the
constructing,
equipping, reconstructing, maintaining, repairing, enlarging,
furnishing
or remodeling facilities for any political subdivision of the
state. As used
in this subsection, K.S.A. 12-3418 and 79-3640, and amendments
thereto,
``funds of a political subdivision'' shall mean general tax
revenues, the
proceeds of any bonds and gifts or grants-in-aid. Gifts shall not
mean
funds used for the purpose of constructing, equipping,
reconstructing,
repairing, enlarging, furnishing or remodeling facilities which are
to be
leased to the donor. When any political subdivision of the state,
public or
private nonprofit hospital or public hospital authority,
public or private
elementary or secondary school or public or private nonprofit
educational
institution shall contract for the purpose of constructing,
equipping, re-
constructing, maintaining, repairing, enlarging, furnishing or
remodeling
facilities, it shall obtain from the state and furnish to the
contractor an
exemption certificate for the project involved, and the contractor
may
purchase materials for incorporation in such project. The
contractor shall
furnish the number of such certificate to all suppliers from whom
such
purchases are made, and such suppliers shall execute invoices
covering
the same bearing the number of such certificate. Upon completion of
the
project the contractor shall furnish to the political subdivision,
hospital
or public hospital authority, school or educational
institution concerned
a sworn statement, on a form to be provided by the director of
taxation,
that all purchases so made were entitled to exemption under this
subsec-
tion. As an alternative to the foregoing procedure, any such
contracting
entity may apply to the secretary of revenue for agent status for
the sole
purpose of issuing and furnishing project exemption certificates to
con-
tractors pursuant to rules and regulations adopted by the secretary
estab-
lishing conditions and standards for the granting and maintaining
of such
status. All invoices shall be held by the contractor for a period
of five
years and shall be subject to audit by the director of taxation. If
any
materials purchased under such a certificate are found not to have
been
incorporated in the building or other project or not to have been
returned
for credit or the sales or compensating tax otherwise imposed upon
such
materials which will not be so incorporated in the building or
other pro-
ject reported and paid by such contractor to the director of
taxation not
later than the 20th day of the month following the close of the
month in
which it shall be determined that such materials will not be used
for the
purpose for which such certificate was issued, the political
subdivision,
hospital or public hospital authority, school or educational
institution con-
cerned shall be liable for tax on all materials purchased for the
project,
and upon payment thereof it may recover the same from the
contractor
together with reasonable attorney fees. Any contractor or any
agent, em-
ployee or subcontractor thereof, who shall use or otherwise dispose
of
any materials purchased under such a certificate for any purpose
other
than that for which such a certificate is issued without the
payment of
the sales or compensating tax otherwise imposed upon such
materials,
shall be guilty of a misdemeanor and, upon conviction therefor,
shall be
subject to the penalties provided for in subsection (g) of K.S.A.
79-3615,
and amendments thereto;
(e) all sales of tangible personal property or services
purchased by a
contractor for the erection, repair or enlargement of buildings or
other
projects for the government of the United States, its agencies or
instru-
mentalities, which would be exempt from taxation if purchased
directly
by the government of the United States, its agencies or
instrumentalities.
When the government of the United States, its agencies or
instrumen-
talities shall contract for the erection, repair, or enlargement of
any build-
ing or other project, it shall obtain from the state and furnish to
the
contractor an exemption certificate for the project involved, and
the con-
tractor may purchase materials for incorporation in such project.
The
contractor shall furnish the number of such certificates to all
suppliers
from whom such purchases are made, and such suppliers shall
execute
invoices covering the same bearing the number of such certificate.
Upon
completion of the project the contractor shall furnish to the
government
of the United States, its agencies or instrumentalities concerned a
sworn
statement, on a form to be provided by the director of taxation,
that all
purchases so made were entitled to exemption under this subsection.
As
an alternative to the foregoing procedure, any such contracting
entity may
apply to the secretary of revenue for agent status for the sole
purpose of
issuing and furnishing project exemption certificates to
contractors pur-
suant to rules and regulations adopted by the secretary
establishing con-
ditions and standards for the granting and maintaining of such
status. All
invoices shall be held by the contractor for a period of five years
and shall
be subject to audit by the director of taxation. Any contractor or
any agent,
employee or subcontractor thereof, who shall use or otherwise
dispose of
any materials purchased under such a certificate for any purpose
other
than that for which such a certificate is issued without the
payment of
the sales or compensating tax otherwise imposed upon such
materials,
shall be guilty of a misdemeanor and, upon conviction therefor,
shall be
subject to the penalties provided for in subsection (g) of K.S.A.
79-3615
and amendments thereto;
(f) tangible personal property purchased by a railroad or
public utility
for consumption or movement directly and immediately in
interstate
commerce;
(g) sales of aircraft including remanufactured and modified
aircraft,
sales of aircraft repair, modification and replacement parts and
sales of
services employed in the remanufacture, modification and repair of
air-
craft sold to persons using such aircraft and aircraft repair,
modification
and replacement parts as certified or licensed carriers of persons
or prop-
erty in interstate or foreign commerce under authority of the laws
of the
United States or any foreign government or sold to any foreign
govern-
ment or agency or instrumentality of such foreign government and
all
sales of aircraft, aircraft parts, replacement parts and services
employed
in the remanufacture, modification and repair of aircraft for use
outside
of the United States;
(h) all rentals of nonsectarian textbooks by public or private
elemen-
tary or secondary schools;
(i) the lease or rental of all films, records, tapes, or any
type of sound
or picture transcriptions used by motion picture exhibitors;
(j) meals served without charge or food used in the
preparation of
such meals to employees of any restaurant, eating house, dining
car, hotel,
drugstore or other place where meals or drinks are regularly sold
to the
public if such employees' duties are related to the furnishing or
sale of
such meals or drinks;
(k) any motor vehicle, semitrailer or pole trailer, as such
terms are
defined by K.S.A. 8-126 and amendments thereto, or aircraft sold
and
delivered in this state to a bona fide resident of another state,
which motor
vehicle, semitrailer, pole trailer or aircraft is not to be
registered or based
in this state and which vehicle, semitrailer, pole trailer or
aircraft will not
remain in this state more than 10 days;
(l) all isolated or occasional sales of tangible personal
property, serv-
ices, substances or things, except isolated or occasional sale of
motor
vehicles specifically taxed under the provisions of subsection (o)
of K.S.A.
79-3603 and amendments thereto;
(m) all sales of tangible personal property which become an
ingre-
dient or component part of tangible personal property or services
pro-
duced, manufactured or compounded for ultimate sale at retail
within or
without the state of Kansas; and any such producer, manufacturer
or
compounder may obtain from the director of taxation and furnish to
the
supplier an exemption certificate number for tangible personal
property
for use as an ingredient or component part of the property or
services
produced, manufactured or compounded;
(n) all sales of tangible personal property which is consumed
in the
production, manufacture, processing, mining, drilling, refining or
com-
pounding of tangible personal property, the treating of by-products
or
wastes derived from any such production process, the providing of
serv-
ices or the irrigation of crops for ultimate sale at retail within
or without
the state of Kansas; and any purchaser of such property may obtain
from
the director of taxation and furnish to the supplier an exemption
certifi-
cate number for tangible personal property for consumption in such
pro-
duction, manufacture, processing, mining, drilling, refining,
compound-
ing, treating, irrigation and in providing such services;
(o) all sales of animals, fowl and aquatic plants and animals,
the pri-
mary purpose of which is use in agriculture or aquaculture, as
defined in
K.S.A. 47-1901, and amendments thereto, the production of food
for
human consumption, the production of animal, dairy, poultry or
aquatic
plant and animal products, fiber or fur, or the production of
offspring for
use for any such purpose or purposes;
(p) all sales of drugs, as defined by K.S.A. 65-1626 and
amendments
thereto, dispensed pursuant to a prescription order, as defined by
K.S.A.
65-1626 and amendments thereto, by a licensed practitioner;
(q) all sales of insulin dispensed by a person licensed by the
state
board of pharmacy to a person for treatment of diabetes at the
direction
of a person licensed to practice medicine by the board of healing
arts;
(r) all sales of prosthetic and orthopedic appliances
prescribed in
writing by a person licensed to practice the healing arts,
dentistry or
optometry. For the purposes of this subsection, the term prosthetic
and
orthopedic appliances means any apparatus, instrument, device, or
equip-
ment used to replace or substitute for any missing part of the
body; used
to alleviate the malfunction of any part of the body; or used to
assist any
disabled person in leading a normal life by facilitating such
person's mo-
bility; such term shall include accessories attached or to be
attached to
motor vehicles, but such term shall not include motor vehicles or
personal
property which when installed becomes a fixture to real
property;
(s) all sales of tangible personal property or services
purchased di-
rectly by a groundwater management district organized or operating
un-
der the authority of K.S.A. 82a-1020 et seq. and amendments
thereto,
which property or services are used in the operation or maintenance
of
the district;
(t) all sales of farm machinery and equipment or aquaculture
ma-
chinery and equipment, repair and replacement parts therefor and
serv-
ices performed in the repair and maintenance of such machinery
and
equipment. For the purposes of this subsection the term ``farm
machinery
and equipment or aquaculture machinery and equipment'' shall
include
machinery and equipment used in the operation of Christmas tree
farm-
ing but shall not include any passenger vehicle, truck, truck
tractor, trailer,
semitrailer or pole trailer, other than a farm trailer, as such
terms are
defined by K.S.A. 8-126 and amendments thereto. Each purchaser
of
farm machinery and equipment or aquaculture machinery and
equipment
exempted herein must certify in writing on the copy of the invoice
or
sales ticket to be retained by the seller that the farm machinery
and
equipment or aquaculture machinery and equipment purchased will
be
used only in farming, ranching or aquaculture production. Farming
or
ranching shall include the operation of a feedlot and farm and
ranch work
for hire and the operation of a nursery;
(u) all leases or rentals of tangible personal property used
as a dwell-
ing if such tangible personal property is leased or rented for a
period of
more than 28 consecutive days;
(v) all sales of food products to any contractor for use in
preparing
meals for delivery to homebound elderly persons over 60 years of
age and
to homebound disabled persons or to be served at a group-sitting at
a
location outside of the home to otherwise homebound elderly
persons
over 60 years of age and to otherwise homebound disabled persons,
as
all or part of any food service project funded in whole or in part
by
government or as part of a private nonprofit food service project
available
to all such elderly or disabled persons residing within an area of
service
designated by the private nonprofit organization, and all sales of
food
products for use in preparing meals for consumption by indigent or
home-
less individuals whether or not such meals are consumed at a place
des-
ignated for such purpose;
(w) all sales of natural gas, electricity, heat and water
delivered
through mains, lines or pipes: (1) To residential premises for
noncom-
mercial use by the occupant of such premises; (2) for agricultural
use and
also, for such use, all sales of propane gas; (3) for use in the
severing of
oil; and (4) to any property which is exempt from property taxation
pur-
suant to K.S.A. 79-201b Second through Sixth. As used
in this paragraph,
``severing'' shall have the meaning ascribed thereto by subsection
(k) of
K.S.A. 79-4216, and amendments thereto;
(x) all sales of propane gas, LP-gas, coal, wood and other
fuel sources
for the production of heat or lighting for noncommercial use of an
oc-
cupant of residential premises;
(y) all sales of materials and services used in the repairing,
servicing,
altering, maintaining, manufacturing, remanufacturing, or
modification of
railroad rolling stock for use in interstate or foreign commerce
under
authority of the laws of the United States;
(z) all sales of tangible personal property and services
purchased di-
rectly by a port authority or by a contractor therefor as provided
by the
provisions of K.S.A. 12-3418 and amendments thereto;
(aa) all sales of materials and services applied to equipment
which is
transported into the state from without the state for repair,
service, al-
teration, maintenance, remanufacture or modification and which is
sub-
sequently transported outside the state for use in the transmission
of
liquids or natural gas by means of pipeline in interstate or
foreign com-
merce under authority of the laws of the United States;
(bb) all sales of used mobile homes or manufactured homes. As
used
in this subsection: (1) ``Mobile homes'' and ``manufactured homes''
shall
have the meanings ascribed thereto by K.S.A. 58-4202 and
amendments
thereto; and (2) ``sales of used mobile homes or manufactured
homes''
means sales other than the original retail sale thereof;
(cc) all sales of tangible personal property or services
purchased for
the purpose of and in conjunction with constructing,
reconstructing, en-
larging or remodeling a business or retail business which meets
the
requirements established in K.S.A. 74-50,115 and amendments
thereto,
and the sale and installation of machinery and equipment purchased
for
installation at any such business or retail business. When a person
shall
contract for the construction, reconstruction, enlargement or
remodeling
of any such business or retail business, such person shall obtain
from the
state and furnish to the contractor an exemption certificate for
the project
involved, and the contractor may purchase materials, machinery
and
equipment for incorporation in such project. The contractor shall
furnish
the number of such certificates to all suppliers from whom such
purchases
are made, and such suppliers shall execute invoices covering the
same
bearing the number of such certificate. Upon completion of the
project
the contractor shall furnish to the owner of the business or retail
business
a sworn statement, on a form to be provided by the director of
taxation,
that all purchases so made were entitled to exemption under this
subsec-
tion. All invoices shall be held by the contractor for a period of
five years
and shall be subject to audit by the director of taxation. Any
contractor
or any agent, employee or subcontractor thereof, who shall use or
oth-
erwise dispose of any materials, machinery or equipment purchased
un-
der such a certificate for any purpose other than that for which
such a
certificate is issued without the payment of the sales or
compensating tax
otherwise imposed thereon, shall be guilty of a misdemeanor and,
upon
conviction therefor, shall be subject to the penalties provided for
in sub-
section (g) of K.S.A. 79-3615 and amendments thereto. As used in
this
subsection, ``business'' and ``retail business'' have the meanings
respec-
tively ascribed thereto by K.S.A. 74-50,114 and amendments
thereto;
(dd) all sales of tangible personal property purchased with
food
stamps issued by the United States department of agriculture;
(ee) all sales of lottery tickets and shares made as part of a
lottery
operated by the state of Kansas;
(ff) on and after July 1, 1988, all sales of new mobile homes
or man-
ufactured homes to the extent of 40% of the gross receipts,
determined
without regard to any trade-in allowance, received from such sale.
As used
in this subsection, ``mobile homes'' and ``manufactured homes''
shall have
the meanings ascribed thereto by K.S.A. 58-4202 and amendments
thereto;
(gg) all sales of tangible personal property purchased in
accordance
with vouchers issued pursuant to the federal special supplemental
food
program for women, infants and children;
(hh) all sales of medical supplies and equipment purchased
directly
by a nonprofit skilled nursing home or nonprofit intermediate
nursing
care home, as defined by K.S.A. 39-923, and amendments thereto,
for
the purpose of providing medical services to residents thereof.
This ex-
emption shall not apply to tangible personal property customarily
used
for human habitation purposes;
(ii) all sales of tangible personal property purchased
directly by a non-
profit organization for nonsectarian comprehensive multidiscipline
youth
development programs and activities provided or sponsored by such
or-
ganization. This exemption shall not apply to tangible personal
property
customarily used for human habitation purposes;
(jj) all sales of tangible personal property or services,
including the
renting and leasing of tangible personal property, purchased
directly on
behalf of a community-based mental retardation facility or mental
health
center organized pursuant to K.S.A. 19-4001 et seq., and
amendments
thereto, and licensed in accordance with the provisions of K.S.A.
75-
3307b and amendments thereto. This exemption shall not apply to
tan-
gible personal property customarily used for human habitation
purposes;
(kk) on and after January 1, 1989, all sales of machinery and
equip-
ment used directly and primarily for the purposes of manufacturing,
as-
sembling, processing, finishing, storing, warehousing or
distributing ar-
ticles of tangible personal property in this state intended for
resale by a
manufacturing or processing plant or facility or a storage,
warehousing or
distribution facility:
(1) For purposes of this subsection, machinery and equipment
shall
be deemed to be used directly and primarily in the manufacture,
assem-
blage, processing, finishing, storing, warehousing or distributing
of tan-
gible personal property where such machinery and equipment is
used
during a manufacturing, assembling, processing or finishing,
storing,
warehousing or distributing operation:
(A) To effect a direct and immediate physical change upon the
tangible
personal property;
(B) to guide or measure a direct and immediate physical change
upon
such property where such function is an integral and essential part
of
tuning, verifying or aligning the component parts of such
property;
(C) to test or measure such property where such function is an
in-
tegral part of the production flow or function;
(D) to transport, convey or handle such property during the
manu-
facturing, processing, storing, warehousing or distribution
operation at
the plant or facility; or
(E) to place such property in the container, package or
wrapping in
which such property is normally sold or transported.
(2) For purposes of this subsection ``machinery and equipment
used
directly and primarily'' shall include, but not be limited to:
(A) Mechanical machines or major components thereof
contributing
to a manufacturing, assembling or finishing process;
(B) molds and dies that determine the physical characteristics
of the
finished product or its packaging material;
(C) testing equipment to determine the quality of the finished
prod-
uct;
(D) computers and related peripheral equipment that directly
control
or measure the manufacturing process or which are utilized for
engi-
neering of the finished product; and
(E) computers and related peripheral equipment utilized for
research
and development and product design.
(3) ``Machinery and equipment used directly and primarily''
shall not
include:
(A) Hand tools;
(B) machinery, equipment and tools used in maintaining and
repair-
ing any type of machinery and equipment;
(C) transportation equipment not used in the manufacturing,
assem-
bling, processing, furnishing, storing, warehousing or distributing
process
at the plant or facility;
(D) office machines and equipment including computers and
related
peripheral equipment not directly and primarily used in controlling
or
measuring the manufacturing process;
(E) furniture and buildings; and
(F) machinery and equipment used in administrative,
accounting,
sales or other such activities of the business;
(ll) all sales of educational materials purchased for
distribution to the
public at no charge by a nonprofit corporation organized for the
purpose
of encouraging, fostering and conducting programs for the
improvement
of public health;
(mm) all sales of seeds and tree seedlings; fertilizers,
insecticides,
herbicides, germicides, pesticides and fungicides; and services,
purchased
and used for the purpose of producing plants in order to prevent
soil
erosion on land devoted to agricultural use;
(nn) except as otherwise provided in this act, all sales of
services ren-
dered by an advertising agency or licensed broadcast station or any
mem-
ber, agent or employee thereof;
(oo) all sales of tangible personal property purchased by a
community
action group or agency for the exclusive purpose of repairing or
weath-
erizing housing occupied by low income individuals;
(pp) all sales of drill bits and explosives actually utilized
in the explo-
ration and production of oil or gas;
(qq) all sales of tangible personal property and services
purchased by
a nonprofit museum or historical society or any combination
thereof, in-
cluding a nonprofit organization which is organized for the purpose
of
stimulating public interest in the exploration of space by
providing edu-
cational information, exhibits and experiences, which is exempt
from fed-
eral income taxation pursuant to section 501(c)(3) of the federal
internal
revenue code of 1986;
(rr) all sales of tangible personal property which will admit
the pur-
chaser thereof to any annual event sponsored by a nonprofit
organization
which is exempt from federal income taxation pursuant to
section
501(c)(3) of the federal internal revenue code of 1986;
(ss) all sales of tangible personal property and services
purchased by
a public broadcasting station licensed by the federal
communications
commission as a noncommercial educational television or radio
station;
(tt) all sales of tangible personal property and services
purchased by
or on behalf of a not-for-profit corporation which is exempt from
federal
income taxation pursuant to section 501(c)(3) of the federal
internal rev-
enue code of 1986, for the sole purpose of constructing a Kansas
Korean
War memorial;
(uu) all sales of tangible personal property and services
purchased by
or on behalf of any rural volunteer fire-fighting organization for
use ex-
clusively in the performance of its duties and functions;
(vv) all sales of tangible personal property purchased by any
of the
following organizations which are exempt from federal income
taxation
pursuant to section 501 (c)(3) of the federal internal revenue code
of
1986, for the following purposes, and all sales of any such
property by or
on behalf of any such organization for any such purpose:
(1) The American Heart Association, Kansas Affiliate, Inc. for
the
purposes of providing education, training, certification in
emergency car-
diac care, research and other related services to reduce disability
and
death from cardiovascular diseases and stroke;
(2) the Kansas Alliance for the Mentally Ill, Inc. for the
purpose of
advocacy for persons with mental illness and to education, research
and
support for their families;
(3) the Kansas Mental Illness Awareness Council for the
purposes of
advocacy for persons who are mentally ill and to education,
research and
support for them and their families;
(4) the American Diabetes Association Kansas Affiliate, Inc.
for the
purpose of eliminating diabetes through medical research, public
edu-
cation focusing on disease prevention and education, patient
education
including information on coping with diabetes, and professional
education
and training;
(5) the American Lung Association of Kansas, Inc. for the
purpose of
eliminating all lung diseases through medical research, public
education
including information on coping with lung diseases, professional
educa-
tion and training related to lung disease and other related
services to
reduce the incidence of disability and death due to lung
disease;
(6) the Kansas chapters of the Alzheimer's Disease and Related
Dis-
orders Association, Inc. for the purpose of providing assistance
and sup-
port to persons in Kansas with Alzheimer's disease, and their
families and
caregivers; and
(ww) all sales of tangible personal property purchased by the
Habitat
for Humanities Humanity for the exclusive
use of being incorporated
within a housing project constructed by such organization.
New Sec. 28. (a) There is hereby created the joint
committee on
oversight of the university of Kansas hospital authority which
shall be
within the legislative branch of state government and shall be
composed
of three senators and three members of the house of
representatives. The
three senate members shall be the chairperson of the committee on
ways
and means of the senate or a member of the senate appointed by
the
chairperson, the vice-chairperson of the committee on ways and
means
of the senate or a member of the senate appointed by the
vice-chairper-
son, and the ranking minority member of the committee on ways
and
means of the senate or a member of the senate appointed by the
ranking
minority member. The three representative members shall be the
chair-
person of the committee on appropriations of the house of
representatives
or a member of the house of representatives appointed by the
chairper-
son, the vice-chairperson of the committee on appropriations of the
house
of representatives or a member of the house of representatives
appointed
by the vice-chairperson, and the ranking minority member of the
com-
mittee on appropriations of the house of representatives or a
member of
the house of representatives appointed by the ranking minority
member.
(b) All members of the joint committee on oversight of the
university
of Kansas hospital authority shall serve for terms ending on the
first day
of the regular legislative session in odd-numbered years. The joint
com-
mittee shall organize annually and elect a chairperson and
vice-chairper-
son in accordance with this subsection. After June 30 in
odd-numbered
years, the chairperson shall be one of the representative members
of the
joint committee elected by the members of the joint committee and
the
vice-chairperson shall be one of the senate members elected by the
mem-
bers of the joint committee. After June 30 in even-numbered years,
the
chairperson shall be one of the senate members of the joint
committee
elected by the members of the joint committee and the
vice-chairperson
shall be on of the representative members of the joint committee
elected
by the members of the joint committee. The chairperson and
vice-chair-
person of the joint committee shall serve in such capacities until
July 1
of the ensuing year. The vice-chairperson shall exercise all the
powers of
the chairperson in the absence of the chairperson. If a vacancy
occurs in
the office of chairperson or vice-chairperson, a member of the
joint com-
mittee, who is a member of the same house as the member who
vacated
the office, shall be elected by members of the joint committee to
fill such
vacancy. Within 30 days after the effective date of this act, the
joint com-
mittee shall organize and elect a chairperson and vice-chairperson
in ac-
cordance with the provisions of this act.
(c) A quorum of the joint committee shall be four. All actions
of the
joint committee shall be taken by a majority of all of the members
of the
joint committee.
(d) The joint committee may meet at any time and at any place
within
the state on the call of the chairperson.
(e) The provisions of the acts contained in article 12 of
chapter 46 of
the Kansas Statutes Annotated, and amendments thereto, applicable
to
special committees shall apply to the joint committee on oversight
of the
university of Kansas hospital authority to the extent that the same
do not
conflict with the specific provisions of this act applicable to the
joint
committee.
(f) In accordance with K.S.A. 46-1204 and amendments thereto,
the
legislative coordinating council may provide for such professional
services
as may be requested by the joint committee on oversight of the
university
of Kansas hospital authority.
(g) The joint committee on oversight of the university of
Kansas hos-
pital authority may introduce such legislation as it deems
necessary in
performing its functions.
(h) In addition to other powers and duties authorized or
prescribed
by law or by the legislative coordinating council, the joint
committee on
oversight of the university of Kansas hospital authority shall:
(1) Make an annual report to the legislative coordinating
council as
provided in K.S.A. 46-1207 and amendments thereto and such
special
reports to committees of the house of representatives and senate as
are
deemed appropriate by the joint committee;
(2) monitor the implementation of the university of Kansas
hospital
authority act including the transfer of assets and liabilities from
the uni-
versity of Kansas medical center to the newly-created authority and
the
development of operational policies by the board of directors of
the au-
thority;
(3) review administrative systems implemented by the authority
in-
cluding the establishment of personnel and financial management
sys-
tems;
(4) analyze the quantity and quality of services rendered by
the au-
thority and the need for such services;
(5) conduct an on-going review of revenues and costs;
(6) review the authority's capital structure, plans for the
issuance of
indebtedness for major equipment acquisitions or capital
investments,
and long range physical development plans; and
(7) make recommendations, including the introduction of
legislation,
and take such other actions as are appropriate to assure that the
purposes
of the legislation establishing the hospital authority are
achieving the ob-
jectives for which the authority was created.
(i) The provisions of this section shall expire on December
31, 2003.
Sec. 29. K.S.A. 75-6117, 76-745, 79-201b and 79-3606 are
hereby
repealed.
Sec. 30. This act shall take effect and be in force from
and after its
publication in the Kansas register.
Approved February 17, 1998
Published in the Kansas Registers February 26, 1998
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