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 9  AN ACT relating to the procurement of legal services by state agencies;
10    requiring competitive bidding on certain contracts; amending K.S.A.
11    59-2006, 66-1513, 75-3784, 75-3799 and 75-5310a and K.S.A. 1996
12    Supp. 40-3410, 40-3411, 44-566a, 74-545, 75-3739, 75-37,102 and 76-
13    745 and repealing the existing sections.
14
15  Be it enacted by the Legislature of the State of Kansas:
16    Section 1.  K.S.A. 1996 Supp. 40-3410 is hereby amended to read as
17  follows: 40-3410. When the insurer of a health care provider or inactive
18  health care provider covered by the fund has agreed to settle its liability
19  on a claim against its insured or when the self-insurer has agreed to settle
20  liability on a claim and the claimant's demand is in an amount in excess
21  of such settlement, or where a claim is against an inactive health care
22  provider covered by the fund who does not have liability insurance in
23  effect which is applicable to the claim, or where it would otherwise be in
24  the best interest of the fund, the claimant and the board of governors
25  may negotiate on an amount to be paid from the fund. The board of
26  governors may employ independent counsel to represent the interest of
27  the fund in any such negotiations except that no agreement for the em-
28  ployment of counsel for which compensation is or may be in the amount
29  of $500 or more for any one claim, shall be valid unless submitted to
30  competitive bid in accordance with K.S.A. 75-3739, and amendments
31  thereto.  In the event the claimant and the board of governors agree upon
32  an amount the following procedure shall be followed:
33    (a)  A petition shall be filed by the claimant with the court in which
34  the action is pending against the health care provider or the inactive
35  health care provider, or if none is pending, in a court of appropriate
36  jurisdiction, for approval of the agreement between the claimant and the
37  board of governors.
38    (b)  The court shall set such petition for hearing as soon as the court's
39  calendar permits, and notice of the time, date and place of hearing shall
40  be given to the claimant, the health care provider or inactive health care
41  provider, and to the board of governors.
42    (c)  At such hearing the court shall approve the proposed settlement
SB 345
                                     

 1  if the court finds it to be valid, just and equitable.
 2    (d)  In the event the settlement is not approved, the procedure set
 3  forth in K.S.A. 40-3411 and amendments thereto shall be followed.
 4    Sec. 2.  K.S.A. 1996 Supp. 40-3411 is hereby amended to read as
 5  follows: 40-3411. (a) In any claim in which the insurer of a health care
 6  provider or inactive health care provider covered by the fund has agreed
 7  to settle its liability on a claim against its insured or when the self-insurer
 8  has agreed to settle liability on a claim and the claimant's demand is in
 9  an amount in excess of such settlement, to which the board of governors
10  does not agree, or where the claim is against an inactive health care pro-
11  vider covered by the fund who does not have liability insurance in effect
12  which is applicable to the claim and the claimant and board of governors
13  cannot agree upon a settlement, an action must be commenced by the
14  claimant against the health care provider or inactive health care provider
15  in a court of appropriate jurisdiction for such damages as are reasonable
16  in the premises. If an action is already pending against the health care
17  provider or inactive health care provider, the pending action shall be
18  conducted in all respects as if the insurer or self-insurer had not agreed
19  to settle.
20    (b)  Any such action against a health care provider covered by the fund
21  or inactive health care provider covered by the fund who has liability
22  insurance in effect which is applicable to the claim shall be defended by
23  the insurer or self-insurer in all respects as if the insurer or self-insurer
24  had not agreed to settle its liability. Notwithstanding any other provision
25  of law, the insurer or self-insurer shall be reimbursed from the fund for
26  the costs of such defense incurred after the settlement agreement was
27  reached, including a reasonable attorney's fee not to exceed the maximum
28  hourly rate established by the board of governors. The board of governors
29  is authorized to employ independent counsel in any such action against
30  a health care provider or an inactive health care provider covered by the
31  fund except that no agreement for the employment of counsel for which
32  compensation is or may be in the amount of $500 or more for any one
33  claim, shall be valid unless submitted to competitive bid in accordance
34  with K.S.A. 75-3739, and amendments thereto. If the primary carrier or
35  self-insurer determines that the policy limits or the self-insured amount
36  of basic coverage should be tendered to the fund in order to relieve itself
37  of further costs of defense, it may do so in the manner specified by the
38  board of governors. In the event of such a tender, the fund shall become
39  responsible for the conduct of the defense. In the event of such a tender,
40  competitive bids shall not be required and the board of governors may
41  directly employ the attorney retained by the primary carrier or self-in-
42  surer or appoint other counsel to represent such health care provider. In
43  any event, the board of governors shall pay attorneys' fees at a rate not
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 1  to exceed the maximum hourly rate established by the board of governors.
 2  Under such circumstances, the fund shall have no liability for attorneys'
 3  fees to any attorney not so appointed.
 4    (c)  In any such action the health care provider or the inactive health
 5  care provider against whom claim is made shall be obligated to attend
 6  hearings and trials, as necessary, and to give evidence.
 7    (d)  The costs of the action shall be assessed against the fund if the
 8  recovery is in excess of the amount offered by the board of governors to
 9  settle the case and against the claimant if the recovery is less than such
10  amount.
11    Sec. 3.  K.S.A. 1996 Supp. 44-566a is hereby amended to read as
12  follows: 44-566a. (a) There is hereby created in the state treasury the
13  workers compensation fund. The commissioner of insurance shall be re-
14  sponsible for administering the workers compensation fund, and all pay-
15  ments from the workers compensation fund shall be upon warrants of the
16  director of accounts and reports issued pursuant to vouchers approved
17  by the commissioner of insurance or a person or persons designated by
18  the commissioner. The commissioner of insurance annually shall report
19  to the governor and the legislature the receipts and disbursements from
20  the workers compensation fund during the preceding fiscal year.
21    (b) (1)  On June 1 of each year, the commissioner of insurance shall
22  impose an assessment against all insurance carriers, self-insurers and
23  group-funded workers compensation pools insuring the payment of com-
24  pensation under the workers compensation act, and the same shall be due
25  and payable to the commissioner on the following July 1, the proceeds of
26  which shall be credited to the workers compensation fund. The total
27  amount of each such assessment shall be equal to an amount sufficient,
28  in the opinion of the commissioner of insurance, to pay all amounts, in-
29  cluding attorney fees and costs, which may be required to be paid from
30  such fund during the current fiscal year, less the amount of the estimated
31  unencumbered balance in the workers compensation fund as of the June
32  30 immediately preceding the date the assessment is due and payable
33  under this section. The total amount of each such assessment shall be
34  apportioned among those upon whom it is imposed, such that each is
35  assessed an amount that bears the same relation to such total assessment
36  as the amount of money paid or payable in workers compensation claims
37  by such insurance carrier, self-insurer or group-funded workers compen-
38  sation pool in the immediately preceding calendar year bears to all such
39  claims paid or payable during such calendar year. The commissioner of
40  insurance may establish experience-based rates of assessments under this
41  subsection and make adjustments in the assessments imposed under this
42  subsection based on the success of accident prevention programs under
43  K.S.A. 44-5,104 and amendments thereto and other employer safety pro-
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 1  grams.
 2    (2)  The commissioner of insurance shall remit all moneys received
 3  by or for such commissioner under this subsection to the state treasurer.
 4  Upon receipt of any such remittance the state treasurer shall deposit the
 5  entire amount thereof in the state treasury to the credit of the workers
 6  compensation fund.
 7    (c) (1)  Whenever the workers compensation fund may be made lia-
 8  ble for the payment of any amounts in proceedings under the workers
 9  compensation act, the commissioner of insurance, in the capacity of ad-
10  ministrator of such fund, shall be impleaded in such proceedings and shall
11  represent and defend the workers compensation fund. The commissioner
12  of insurance shall be deemed impleaded in any such proceedings when-
13  ever written notice of the proceedings setting forth the nature of the
14  liability asserted against the workers compensation fund, is given to the
15  commissioner of insurance. The commissioner of insurance may be made
16  a party in this manner by any party to the proceedings. A copy of the
17  written notice shall be given to the director and to all other parties to the
18  proceedings.
19    (2)  The administrative law judge shall dismiss the workers compen-
20  sation fund from any proceeding where the administrative law judge has
21  determined that there is insufficient evidence to indicate involvement by
22  the workers compensation fund.
23    (3)  In any case in which the workers compensation fund has been
24  impleaded, if the liability of the fund has not been established within five
25  years of the date of the employee filing a written notice of claim, the
26  commissioner of insurance may cause to be filed with an administrative
27  law judge a motion to dismiss the fund from the case. The administrative
28  law judge shall notify counsel of record not less than 10 days prior to
29  issuing any order dismissing the fund from a case. The administrative law
30  judge shall dismiss the fund from any such case absent a showing by one
31  of the parties that the case should be left open due to medical necessity
32  or other just cause.
33    (d)  The commissioner of insurance, in the capacity of administrator
34  of the workers compensation fund, may make settlements of any amounts
35  which may be payable from the workers compensation fund with regard
36  to any claim under the workers compensation act, subject to the approval
37  of the director.
38    (e)  The workers compensation fund shall be liable for:
39    (1)  Payment of awards to handicapped employees in accordance with
40  the provisions of K.S.A. 44-569 and amendments thereto for claims aris-
41  ing prior to July 1, 1994;
42    (2)  payment of workers compensation benefits to an employee who
43  is unable to receive such benefits from such employee's employer under
SB 345
                                     

 1  the conditions prescribed by K.S.A. 44-532a and amendments thereto;
 2    (3)  reimbursement of an employer or insurance carrier pursuant to
 3  the provisions of K.S.A. 44-534a and amendments thereto, subsection (d)
 4  of K.S.A. 44-556 and amendments thereto, subsection (c) of K.S.A. 44-
 5  569 and amendments thereto and K.S.A. 44-569a and amendments
 6  thereto;
 7    (4)  payment of the actual expenses of the commissioner of insurance
 8  which are incurred for administering the workers compensation fund,
 9  subject to the provisions of appropriations acts; and
10    (5)  any other payments or disbursements provided by law.
11    (f)  If it is determined that the workers compensation fund is not liable
12  as described in subsection (e), attorney fees incurred by the workers com-
13  pensation fund may be assessed against the party who has impleaded the
14  workers compensation fund other than impleadings pursuant to K.S.A.
15  44-532a and amendments thereto.
16    (g)  The commissioner of insurance shall provide for the implemen-
17  tation of the workers compensation fund as provided in this section and
18  shall be responsible for ensuring the fund's adequacy to meet and pay
19  claims awarded against it.
20    (h)  All contracts to provide any legal services for the commissioner of
21  insurance in the administration of the workers compensation fund, for
22  which compensation is or may be in the amount of $500 or more for any
23  one claim, shall be entered into pursuant to competitive bids in accordance
24  with K.S.A. 75-3739 and amendments thereto.
25    Sec. 4.  K.S.A. 59-2006 is hereby amended to read as follows: 59-
26  2006. (a) A person's spouse and the parents of a person who is a minor
27  shall be bound by law to support the person if the person is committed
28  to, admitted to, transferred to or received as a patient at a state institution.
29  Payment for the maintenance, care and treatment of any patient in a state
30  institution irrespective of the manner of such patient's admission shall be
31  paid by the patient, by the conservator of such patient's estate or by any
32  person bound by law to support such patient. The secretary of social and
33  rehabilitation services may recover the basic maximum charge established
34  as provided for in subsection (a) of K.S.A. 59-2006b and amendments
35  thereto, or the actual per patient costs established as provided in subsec-
36  tion (b) of K.S.A. 59-2006b and amendments thereto, as compensation
37  for the maintenance, care and treatment of a patient from such patient
38  when no legal disability exists, or from the estate of such patient or from
39  any person bound by law to support such patient.
40    (b)  The secretary of social and rehabilitation services shall periodi-
41  cally and not less than once during each fiscal year make written demand
42  upon the patient or person liable for the amount claimed by the secretary
43  to have accrued since the last demand was made, and no action shall be
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 1  commenced by the secretary against such patient or such patient's re-
 2  sponsible relatives for the recovery thereof unless such action is com-
 3  menced within three years after the date of such written demand. When
 4  any part of the amount claimed to be due has been paid or any acknow-
 5  ledgment of an existing liability, debt or claim, or any promise to pay the
 6  same has been made by the obligor, an action may be brought in such
 7  case within three years after such payment, acknowledgment or promise,
 8  but such acknowledgment or promise must be in writing signed by the
 9  party to be charged thereby. If there are two or more joint debtors, no
10  one of whom is entitled to act as the agent of the others, no such joint
11  debtor shall lose the benefit of the statute of limitations so as to be charge-
12  able by reason of any acknowledgment, promise or payment made by any
13  other or others of them, unless done with the knowledge and consent of,
14  or ratified by, the joint debtor sought to be charged. The secretary may
15  accept voluntary payments from patients or relatives or from any source,
16  even though the payments are in excess of required amounts and shall
17  deposit the same as provided by law.
18    (c)  The secretary of social and rehabilitation services shall have the
19  power to compromise and settle any claim due or claimed to be due from
20  such patient or such patient's relatives who are liable for the patient's
21  care, maintenance and treatment and upon payment of a valuable con-
22  sideration by the patient or the persons bound by law to support such
23  patient, may discharge and release the patient or relative of any or all past
24  liability herein. Whenever the secretary shall negotiate a compromise
25  agreement to settle any claim due or claimed to be due from a patient or
26  such patient's relatives responsible under this act to support the patient,
27  no action shall thereafter be brought or claim made for any amounts due
28  for the care, maintenance and treatment of such patient incurred prior
29  to the effective date of the agreement entered into, except for the
30  amounts provided for in the agreement if the provisions of such compro-
31  mise agreement are faithfully performed. In the event the terms and
32  conditions of such compromise agreement are not complied with, such
33  failure to comply shall serve to revive and reinstate the original amount
34  of the claim due before negotiation of such compromise agreement, less
35  amounts paid on the claim.
36    (d)  The secretary of social and rehabilitation services may contract
37  with an attorney admitted to practice in this state or with any debt col-
38  lection agency doing business within or without this state to assist in the
39  collection of amounts claimed to be due under the provisions of this
40  section. The fee for services of such attorney or debt collection agency
41  shall be based on the amount of moneys actually collected. No fee shall
42  be in excess of 50% of the total amount of moneys actually collected. All
43  funds collected less the fee for services as provided in the contract shall
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 1  be remitted to the secretary of social and rehabilitation services within
 2  45 days from the date of collection.
 3    Contracts entered pursuant to this section, except as otherwise pro-
 4  vided with regards to a contract with an attorney, may be negotiated by
 5  the secretary of social and rehabilitation services and shall not be subject
 6  to the competitive bid requirements of K.S.A. 75-3739 through 75-3741
 7  and amendments thereto. Subject to the provisions limiting the fee for
 8  services, each contract with an attorney under this section for which com-
 9  pensation is or may be in the amount of $500 or more for any one claim,
10  shall be entered into pursuant to competitive bids in accordance with
11  K.S.A. 75-3739 and amendments thereto.
12    (e)  Before entering into a contract with a debt collection agency un-
13  der subsection (d), the secretary of social and rehabilitation services shall
14  require a bond from the debt collection agency in an amount not in excess
15  of $100,000 guaranteeing compliance with the terms of the contract.
16    (f)  A debt collection agency entering into a contract with the secretary
17  of social and rehabilitation services for the collection of amounts claimed
18  to be due under this section shall agree that it is receiving income from
19  sources within the state or doing business in the state for purposes of the
20  Kansas income tax act.
21    (g)  As used in this section, ``state institution'' has the meaning pro-
22  vided by K.S.A. 59-2006b and amendments thereto.
23    (h)  When a minor becomes a patient of a state institution, an assign-
24  ment of all past, present and future support rights of the minor which
25  are possessed by either parent or any other person entitled to receive
26  support payments for the minor is conveyed by operation of law to the
27  secretary of social and rehabilitation services. The assignment of support
28  rights shall be effective upon the minor's admission as a patient of any
29  state institution, regardless of the manner of admission, without the re-
30  quirement that any written assignment or similar document be signed by
31  the parent or other person entitled to receive support payments for the
32  minor. When a minor becomes a patient of a state institution, the parent
33  or other person entitled to receive support payments for the minor is also
34  deemed to have appointed the secretary of social and rehabilitation serv-
35  ices or the secretary's designee, as attorney in fact to perform the specific
36  act of negotiating and endorsing all drafts, checks, money orders or other
37  negotiable instruments representing support payments on behalf of the
38  minor. This limited power of attorney shall remain in effect until the
39  assignment of support rights has been terminated in full. For any minor
40  who is a patient of a state institution on the effective date of this act and
41  whose past, present and future support rights are not assigned to the
42  secretary of social and rehabilitation services, the assignment of support
43  rights and limited power of attorney shall be effective on the effective
SB 345
                                     

 1  date of this act if notice of the assignment is sent to the person otherwise
 2  entitled to receive support payments for the minor.
 3    The assignment of support rights provided in this section shall remain
 4  in full force and effect until the minor is no longer a patient of a state
 5  institution. When the minor is no longer a patient of a state institution,
 6  the assignment shall remain in effect as to unpaid support obligations due
 7  and owing as of the last day of the month in which the minor ceases to
 8  be a patient, until the claim of the secretary of social and rehabilitation
 9  services for the maintenance, care and treatment of the minor is satisfied.
10  Nothing in this section shall affect or limit the rights of the secretary of
11  social and rehabilitation services under any assignment pursuant to K.S.A.
12  39-709 and amendments thereto.
13    Sec. 5.  K.S.A. 66-1513 is hereby amended to read as follows: 66-
14  1513. (a) In accordance with the provisions of subsection (b), the state
15  corporation commission is hereby authorized to contract for professional
16  services, including but not limited to the services of engineers, account-
17  ants, attorneys and economists, to assist in investigations and appraisals
18  under K.S.A. 66-1502, and amendments thereto, which assistance may
19  include preparation and presentation of expert testimony, when the ex-
20  penses of such professional services are required to be assessed under
21  that statute against the public utilities involved.
22    (b)  Except as provided in this subsection for a contract for the services
23  of an attorney, such contracts shall be negotiated by a negotiating com-
24  mittee composed of the following persons: The general counsel of the
25  state corporation commission or the designee of the general counsel; the
26  director of the budget or the designee of the director; the director of
27  accounts and reports or the designee of the director; and the director of
28  the appropriate division of the state corporation commission, as deter-
29  mined and designated by the chairperson of the state corporation com-
30  mission, or the designee of the director. When a contract authorized un-
31  der subsection (a) is proposed to be entered into, the general counsel of
32  the state corporation commission or the designee of the general counsel
33  shall convene the negotiating committee. The negotiating committee shall
34  consider all proposals by persons applying to perform such contract and
35  shall award the contract. In the case of any contract for the services of an
36  attorney for which compensation is or may be in the amount of $500 or
37  more for any one proceeding, such contract shall be entered into pursuant
38  to competitive bids in accordance with K.S.A. 75-3739 and amendments
39  thereto.
40    (c)  Except as otherwise provided in subsection (b), such contracts
41  shall not be subject to the provisions of K.S.A. 75-3739, and amendments
42  thereto, or to the provisions of the acts contained in article 58 of chapter
43  75 of the Kansas Statutes Annotated.
SB 345
                                     

 1    (d)  As used in this section, ``person'' means an individual, firm, part-
 2  nership, corporation, association or other legal entity.
 3    Sec. 6.  K.S.A. 1996 Supp. 74-545 is hereby amended to read as fol-
 4  lows: 74-545. (a) The secretary of the state board of agriculture with the
 5  cooperation of the director of extension of Kansas state university shall
 6  coordinate a farm assistance, counseling and training referral program
 7  which shall include a rural opportunity program. The rural opportunity
 8  program will gather information and will inform rural communities, busi-
 9  nesses, and potential entrepreneurs of available programs, resources, and
10  strategies which they can use to develop themselves economically and
11  create alternative or improved employment for farmers and rural resi-
12  dents. For the purposes of providing such assistance and program, the
13  secretary shall utilize the services of the director and division of extension
14  of Kansas state university, other state agencies, county extension person-
15  nel, municipal and community services organizations, private foundations,
16  institutes, and personnel and private business and professional agencies
17  or services available for such purpose. The secretary shall compile a di-
18  rectory of programs and services which may be utilized in providing the
19  assistance contemplated by this act. Staff required by the secretary for
20  the purposes of implementing this act shall be employed by the secretary
21  with the approval of the director of extension and shall serve in the offices
22  of the division of extension at Kansas state university. Personnel employed
23  by the secretary for the purpose of implementing this act shall be em-
24  ployed as special project employees and shall be in the unclassified service
25  under the Kansas civil service act. The personnel employed by the sec-
26  retary for this purpose and county extension personnel shall be utilized
27  in: (1) Receiving requests for assistance; (2) determining the eligibility of
28  persons requesting assistance; and (3) determining if such assistance can
29  best be provided by staff or by referral to an appropriate public or private
30  agency or party for direct assistance. Personnel receiving requests for
31  assistance will provide where possible such assistance or refer the person
32  requesting such assistance to a public or private agency or, when appro-
33  priate, to a person qualified to provide such assistance in the home com-
34  munity or county of the person requesting such assistance.
35    (b)  Persons requesting farm assistance, counseling and training re-
36  ferral services shall be eligible to receive assistance pursuant to this act if
37  they: (1) Are primarily engaged in the business of farming, ranching,
38  agribusiness or other agriculture-related activities; and (2) will be unable
39  to continue in such business or activity or be seriously handicapped in
40  such continued operation without the assistance provided pursuant to this
41  act.
42    (c)  The assistance to be made available to eligible persons requesting
43  farm assistance, counseling and training referral services by staff, by con-
SB 345
                                     

 1  tract or by referral to appropriate persons or agencies shall include farm
 2  management, legal assistance, legal advice and referrals, financial plan-
 3  ning, employment services, business planning, voluntary mediation and
 4  personal and family support counseling. The secretary may provide legal
 5  assistance through a contract for legal services with any private or cor-
 6  porate law firm except that no agreement for the procurement of legal
 7  services for which compensation is or may be in the amount of $500 or
 8  more for any one case, shall be valid unless submitted to competitive bid
 9  in accordance with K.S.A. 75-3739, and amendments thereto.
10    (d)  Meetings in which mediation assistance is provided through the
11  voluntary mediation service authorized under subsection (c) shall be
12  closed and shall not be subject to the provisions of K.S.A. 75-4317 to 75-
13  4320, inclusive, and amendments thereto. The record of information re-
14  lating to the finances of individual borrowers and creditors created, col-
15  lected and maintained by the mediation service shall not constitute a
16  public record and shall not be open for inspection under the open records
17  act. Mediation sessions shall be confidential and the secretary shall ensure
18  that all lenders and borrowers of agricultural loans receive adequate no-
19  tification of the mediation service.
20    (e)  All verbal or written information transmitted between any party
21  to a dispute and a mediator conducting the proceeding, or the staff of an
22  approved program under K.S.A. 5-501 et seq. and amendments thereto
23  shall be confidential communications. No admission, representation or
24  statement made in the proceeding shall be admissible as evidence or
25  subject to discovery. A mediator shall not be subject to process requiring
26  the disclosure of any matter discussed during the proceedings unless all
27  the parties consent to a waiver. Any party, including the neutral person
28  or staff of an approved program conducting the proceeding, participating
29  in the proceeding has a privilege in any action to refuse to disclose, and
30  to prevent a witness from disclosing, any communication made in the
31  course of the proceeding. The privilege may be claimed by the party or
32  anyone the party authorizes to claim the privilege.
33    (f)  The confidentiality and privilege requirements of this section shall
34  not apply to:
35    (1)  Information that is reasonably necessary to establish a defense for
36  the mediator or staff of an approved program conducting the proceeding
37  in the case of an action against the mediator or staff of an approved
38  program that is filed by a party to the mediation;
39    (2)  any information that the mediator is required to report under
40  K.S.A. 38-1522 and amendments thereto;
41    (3)  any information that is reasonably necessary to stop the commis-
42  sion of an ongoing crime or fraud or to prevent the commission of a crime
43  or fraud in the future for which there was an expressed intent to commit
SB 345
                                     

 1  such crime or fraud; or
 2    (4)  any information that the mediator is required to report or com-
 3  municate under the specific provisions of any statute or in order to comply
 4  with orders of the court.
 5    (g)  The secretary is hereby authorized to negotiate and enter into
 6  contracts for the performance of the powers, duties and functions of the
 7  program established under this section and under K.S.A. 74-544 and
 8  amendments thereto. Except as otherwise provided in subsection (c) all
 9  such contracts shall be exempt from the competitive bid requirements of
10  K.S.A. 75-3739 and amendments thereto.
11    (h)  The secretary is hereby authorized to receive grants, gifts or do-
12  nations from the United States government, or its agencies, or any other
13  source whatsoever for the purposes of the program established under this
14  section and under K.S.A. 74-544 and amendments thereto, and any mon-
15  eys so received shall be deposited in the state treasury and credited to
16  the FACTS gifts and contributions fund which is hereby created. All ex-
17  penditures from such fund shall be made in accordance with appropria-
18  tion acts upon warrants of the director of accounts and reports issued
19  pursuant to vouchers approved by the secretary of the state board of
20  agriculture or a person designated by the secretary.
21    (i)  A creditor of a farm borrower, when notifying a farm borrower of
22  intent to accelerate or call such note or, in the event none of the above
23  notices has occurred, before filing suit to foreclose on a deed of trust or
24  mortgage on agricultural land, shall notify the borrower of the availability
25  of the mediation service as contracted by the secretary, and shall prom-
26  inently include on or with the notice the address and telephone number
27  of such mediation service unless the borrower and creditor have previ-
28  ously been involved with each other in mediation through such mediation
29  service. A copy of the notice, including names, addresses and phone num-
30  bers of creditor and borrower, shall be sent to the mediation service at
31  the same time it is mailed to the borrower, if the borrower consents
32  thereto in writing.
33    (j)  The provisions of this act shall expire on September 30, 1996.
34    Sec. 7.  K.S.A. 1996 Supp. 75-3739 is hereby amended to read as
35  follows: 75-3739. In the manner as provided in this act and rules and
36  regulations established adopted thereunder:
37    (a)  All contracts for construction and repairs, and all purchases of and
38  contracts for supplies, materials, equipment and contractual services to
39  be acquired for state agencies shall be based on competitive bids, except
40  that competitive bids need not be required: (1) For contractual services,
41  other than legal services, when, in the judgment of the director of pur-
42  chases, no competition exists; or (2) for legal services except where spe-
43  cifically required by law; or (3) when, in the judgment of the director of
SB 345
                                     

 1  purchases, chemicals and other material or equipment for use in labo-
 2  ratories or experimental studies by state agencies are best purchased with-
 3  out competition, or where rates are fixed by law or ordinance; or (3) (4)
 4  when, in the judgment of the director of purchases, an agency emergency
 5  requires immediate delivery of supplies, materials or equipment, or im-
 6  mediate performance of services; or (4) (5) when any statute authorizes
 7  another procedure or provides an exemption from the provisions of this
 8  section.
 9    The director of purchases shall make a detailed report at least once in
10  each calendar quarter to the legislative coordinating council and the chair-
11  persons of the senate committee on ways and means and the house of
12  representatives committee on appropriations of all contracts for goods,
13  supplies, materials, equipment or contractual services entered into with-
14  out competitive bids under subsections (a)(1), (a)(2), (a)(3), (a)(4) or (g).
15    (b)  If the amount of the purchase is estimated to exceed approxi-
16  mately $10,000, sealed bids shall be solicited by notice published once in
17  the Kansas register not less than 10 days before the date stated therein
18  for the opening of such bids. The director of purchases may waive this
19  publication of notice requirement when the director determines that a
20  more timely procurement is in the best interest of the state. The director
21  of purchases also may designate a trade journal for such publication. The
22  director of purchases also shall solicit such bids by sending notices by mail
23  to prospective bidders. All bids shall be sealed when received and shall
24  be opened in public at the hour stated in the notice. The director of
25  purchases shall make a detailed report at least once in each calendar
26  quarter to the legislative coordinating council and the chairpersons of the
27  senate committee on ways and means and the house of representatives
28  committee on appropriations of all cases when the publication of notice
29  of bid solicitations in the Kansas register have been waived under this
30  subsection.
31    (c)  All purchases estimated to exceed approximately $5,000 but not
32  more than $10,000, shall be made after receipt of sealed bids following
33  at least three days' notice posted on a public bulletin board in the office
34  of the director of purchases. The director of purchases also may solicit
35  sealed bids by mail in such cases in like manner as provided in subsection
36    (b).
37    (d)  All purchases estimated to be less than $5,000 may be made after
38  the receipt of three or more bid solicitations by telephone and after re-
39  ceipt of sealed bids following at least three days' notice posted on a public
40  bulletin board in the office of the director of purchases. Such bids shall
41  be recorded as provided in subsection (e) of K.S.A. 75-3740 and amend-
42  ments thereto. With the approval of the secretary of administration, the
43  director of purchases may delegate authority to any state agency to make
SB 345
                                     

 1  purchases of less than $10,000 either on the open market or under certain
 2  prescribed conditions and procedures. The director of purchases shall
 3  make a report at least once in each calendar quarter to the legislative
 4  coordinating council and the chairpersons of the senate committee on
 5  ways and means and the house of representatives committee on appro-
 6  priations of all current and existing delegations of authority under this
 7  subsection to state agencies.
 8    (e)  Subject to the provisions of subsection (d), contracts and pur-
 9  chases shall be based on specifications approved by the director of pur-
10  chases. When deemed applicable and feasible by the director of pur-
11  chases, such specifications shall include either energy efficiency standards
12  or appropriate life cycle cost formulas, or both, for all supplies, materials,
13  equipment and contractual services to be purchased by the state. The
14  director of purchases may reject a contract or purchase on the basis that
15  a product is manufactured or assembled outside the United States. No
16  such specifications shall be fixed in a manner to effectively exclude any
17  responsible bidder offering comparable supplies, materials, equipment or
18  contractual services.
19    (f)  Notwithstanding anything herein to the contrary, all contracts with
20  independent construction concerns for the construction, improvement,
21  reconstruction and maintenance of the state highway system and the ac-
22  quisition of rights-of-way for state highway purposes shall be advertised
23  and let as now or hereafter provided by law.
24    (g)  The director of purchases may authorize state agencies to contract
25  for services and materials with other state agencies, or with federal agen-
26  cies, political subdivisions of Kansas, agencies of other states or subdivi-
27  sions thereof, or private nonprofit educational institutions, without com-
28  petitive bids.
29    (h)  Except as otherwise specifically provided by law, no state agency
30  shall enter into any lease of real property without the prior approval of
31  the secretary of administration. Such state agency shall submit to the
32  secretary of administration such information relating to any such pro-
33  posed lease as the secretary may require. The secretary of administration
34  shall either approve, modify and approve or reject any such proposed
35  lease.
36    (i)  The director of purchases shall require all bidders on state con-
37  tracts to disclose all substantial interests held by the bidder in the state.
38    (j)  Except as provided in K.S.A. 22-4523 and 46-1204 and amend-
39  ments thereto or as otherwise specifically provided by statute for the ac-
40  quisition of legal services without competitive bids, all contracts for legal
41  services for state agencies for which compensation is or may be in the
42  amount of $500 or more for any one claim or case, shall be based on
43  competitive bids. On and after the effective date of this act, no contract
SB 345
                                     

 1  for legal services for a state agency, that was entered into prior to the
 2  effective date of this act, but for which bids would be required under the
 3  provisions of this act, shall be renewed or extended by the state agency
 4  unless entered into by the state agency pursuant to competitive bids in
 5  accordance with this section.
 6    Sec. 8.  K.S.A. 75-3784 is hereby amended to read as follows: 75-
 7  3784. The secretary of administration is hereby authorized to contract for
 8  ancillary technical services for any project for the construction of a build-
 9  ing or for repairs or improvements to a building for a state agency which
10  are not provided by any firm or state agency providing architectural serv-
11  ices or engineering services for the project. Such ancillary technical serv-
12  ices shall include but not be limited to geology services and other soil or
13  subsurface investigation and testing services, surveying, adjusting and bal-
14  ancing of air conditioning, ventilating, heating and other mechanical
15  building systems, testing and consultant services. Such contract shall not
16  be subject to the provisions of K.S.A. 75-3739, and amendments thereto,
17  or to the provisions of the acts contained in articles 54 or 58 of chapter
18  75 of the Kansas Statutes Annotated except that no agreement for the
19  providing of legal services for which compensation is, or may be in the
20  amount of $500 or more for any one claim, shall be valid unless submitted
21  to competitive bid in accordance with K.S.A. 75-3739, and amendments
22  thereto. Expenditures for such ancillary technical services shall be made
23  from funds appropriated for the project or available therefor.
24    Sec. 9.  K.S.A. 75-3799 is hereby amended to read as follows: 75-
25  3799. (a) Upon request of the chief administrative officer of a state agency
26  and subject to the approval of the secretary of administration, the director
27  of purchases may convene a financial services negotiating committee to
28  obtain financial services for the state agency under this section.
29    (b)  Each financial services negotiating committee shall be composed
30  of (1) the director of purchases, or a person designated by the director
31  of purchases, (2) the chief administrative officer of the state agency need-
32  ing financial services, or a person designated by the officer, and (3) the
33  director of accounts and reports, or a person designated by the director
34  of accounts and reports.
35    (c)  The financial services negotiating committee is authorized to ne-
36  gotiate contracts with qualified parties to provide financial services, in-
37  cluding services relating to installment purchase, lease, or lease-purchase
38  of equipment or to other financial related services needed by the state
39  agency.
40    (d)  Prior to negotiating for financial services, the committee shall ad-
41  vertise for proposals, negotiate with one or more of the firms submitting
42  proposals and select from among those submitting such proposals the
43  party to contract with for the purpose of providing financial services.
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 1    (e)  Contracts entered into pursuant to this section for financial serv-
 2  ices shall not be subject to the provisions of K.S.A. 75-3738 to through
 3  75-3740a, inclusive, and any amendments thereto.
 4    (f)  As used in this section, ``financial services'' shall not include any
 5  legal services and no contract shall be entered into pursuant to this section
 6  for legal services.
 7    Sec. 10.  K.S.A. 1996 Supp. 75-37,102 is hereby amended to read as
 8  follows: 75-37,102. (a) Upon request of the chief administrative officer of
 9  a state agency and subject to the approval of the secretary of administra-
10  tion, the director of purchases may convene a procurement negotiating
11  committee to obtain services or technical products for the state agency.
12    (b)  Each procurement negotiating committee shall be composed of:
13    (1) The director of purchases, or a person designated by the director; (2)
14  the chief administrative officer of the state agency desiring to make the
15  procurement, or a person designated by the officer; and (3) the secretary
16  of administration, or a person designated by the secretary.
17    (c)  The negotiating committee is authorized to negotiate for the pro-
18  curing state agency contracts with qualified parties to provide services or
19  technical products needed by the state agency other than legal services.
20    (d)  Prior to negotiating for the procurement, a notice to bidders first
21  shall be published in the Kansas register. Upon receipt of bids or pro-
22  posals, the committee may negotiate with one or more of the firms sub-
23  mitting bids or proposals and select from among those submitting such
24  bids or proposals the party to contract with to provide the services or
25  technical products.
26    (e)  Contracts entered into pursuant to this section shall not be subject
27  to the provisions of K.S.A. 75-3738 through 75-3740a and amendments
28  thereto. Meetings to conduct negotiations pursuant to this section shall
29  not be subject to the provisions of K.S.A. 75-4317 through 75-4320a and
30  amendments thereto. The director of purchases shall submit a report at
31  least once in each calendar quarter to the legislative coordinating council
32  and the chairpersons of the senate committee on ways and means and
33  the house of representatives committee on appropriations of all contracts
34  entered into pursuant to this section. In the event that the negotiating
35  committee selects a bid which is not the lowest bid on a given contract,
36  the directors report shall contain a rationale explaining why the lowest
37  bidder was not awarded the contract.
38    (f)  Except as otherwise provided for the procurement of legal services,
39  nothing in this section shall be construed as requiring either negotiations
40  pursuant to this section or bids pursuant to K.S.A. 75-3739 and amend-
41  ments thereto for the procurement of professional services or services for
42  which, in the judgment of the director of purchases, meaningful specifi-
43  cations cannot be determined. No agreement for the procurement of legal
SB 345
                                     

 1  services for which compensation is or may be in the amount of $500 or
 2  more for any one claim or case, shall be valid unless submitted to com-
 3  petitive bid in accordance with K.S.A. 75-3739, and amendments thereto.
 4    Sec. 11.  K.S.A. 75-5310a is hereby amended to read as follows: 75-
 5  5310a. The secretary of social and rehabilitation services is hereby au-
 6  thorized to contract for the services of persons to assist in the preparation
 7  of expert testimony for litigation and to act as expert witnesses in litiga-
 8  tion. Any such contracts, other than contracts for legal services, shall be
 9  exempt from the competitive bid requirements of K.S.A. 75-3739, and
10  amendments thereto. All contracts for persons to provide legal services
11  to assist in the preparation of expert testimony for litigation or to act as
12  expert witnesses in litigation, for which compensation is or may be in the
13  amount of $500 or more for any one case, shall be entered into pursuant
14  to competitive bids in accordance with K.S.A. 75-3739 and amendments
15  thereto.
16    Sec. 12.  K.S.A. 1996 Supp. 76-745 is hereby amended to read as
17  follows: 76-745. (a) As used in this section ``negotiating committee'' means
18  a committee to negotiate as provided in this act, and consisting of the
19  executive officer of the state board of regents or a person designated by
20  the executive officer, two representatives of the state educational insti-
21  tutions as designated by the state board of regents and the director of
22  purchases or a person designated by the director of purchases, except that
23  for collection services for hospital revenue collection for the university of
24  Kansas medical center, the negotiating committee shall consist of the
25  chairperson of the state board of regents or a person designated by the
26  chairperson, the attorney general or a person designated by the attorney
27  general, and the chancellor of the university of Kansas or a person des-
28  ignated by the chancellor.
29    (b)  The state board of regents shall convene a negotiating committee
30  to obtain collection services. The negotiating committee is authorized to
31  negotiate contracts with one or more qualified parties to provide collec-
32  tion services for the state educational institutions and such contracts may
33  be entered on a multi-year basis, except in the case of collection services
34  for hospital revenue collection for the university of Kansas medical center,
35  each contract for such collection services shall be negotiated on the basis
36  of criteria prescribed by the university of Kansas medical center and shall
37  be entered into by the university of Kansas medical center and one or
38  more qualified parties.
39    (c)  Prior to negotiating for collection services, the committee shall
40  advertise for proposals, negotiate with firms submitting proposals and
41  select among those submitting such proposals the party or parties to con-
42  tract with for the purposes of collection services.
43    (d)  Contracts entered into pursuant to this section shall not be subject
SB 345
                                     

 1  to the provisions of K.S.A. 75-3738 to 75-3740a, inclusive, and amend-
 2  ments thereto.
 3    (e)  As used in this section ``collection services'' shall not include any
 4  legal services and no contract shall be entered into pursuant to this section
 5  for legal services.
 6    Sec. 13.  K.S.A. 59-2006, 66-1513, 75-3784, 75-3799 and 75-5310a
 7  and K.S.A. 1996 Supp. 40-3410, 40-3411, 44-566a, 74-545, 75-3739, 75-
 8  37,102 and 76-745 are hereby repealed.
 9    Sec. 14.  This act shall take effect and be in force from and after its
10  publication in the statute book.