SENATE BILL No. 5

An Act concerning state government; relating to development, management, coordination and planning for the utilization of the state's information technology resources; abolishing and establishing certain councils, offices and positions; relating to state civil service; concerning certain committees of the legislature; relating to certain state agency purchases of and contracts for supplies, materials, equipment and services; amending K.S.A. 46-1604, 46-1701, 46-2101, 46-2102, 68-2003, 75-2935, 75-3739, 75-4703, 75-4707, 75-4709, 75-5147, 75-6301 and 76-3,100 and K.S.A. 1997 Supp. 46-2201 and 65-34,154; also repealing K.S.A. 75-4706, 75-4740, 75-4741, 75-4742, 75-4743 and 75-4744.

Be it enacted by the Legislature of the State of Kansas:

    New Section 1. As used in sections 1 through 12, and amendments
thereto:

    (a) ``Cumulative cost'' means the total expenditures, from all sources,
for any information technology project by one or more state agencies to
meet project objectives from project start to project completion or the
date and time the project is terminated if it is not completed.

    (b) ``Executive agency'' means any state agency in the executive
branch of government.

    (c) ``Information technology project'' means a project for a major
computer, telecommunications or other information technology improve-
ment with an estimated cumulative cost of $250,000 or more and includes
any such project that has proposed expenditures for: (1) New or replace-
ment equipment or software; (2) upgrade improvements to existing
equipment and any computer systems, programs or software upgrades
therefor; or (3) data or consulting or other professional services for such
a project.

    (d) ``Information technology project change or overrun'' means any
of the following:

    (1) Any change in planned expenditures for an information technol-
ogy project that would result in the total authorized cost of the project
being increased above the currently authorized cost of such project by
more than either $1,000,000 or 10% of such currently authorized cost of
such project, whichever is lower;

    (2) any change in the scope of an information technology project, as
such scope was presented to and reviewed by the joint committee or the
chief information technology officer to whom the project was submitted
pursuant to section 9 and amendments thereto; or

    (3) any change in the proposed use of any new or replacement infor-
mation technology equipment or in the use of any existing information
technology equipment that has been significantly upgraded.

    (e) ``Joint committee'' means the joint committee on information
technology.

    (f) ``Judicial agency'' means any state agency in the judicial branch of
government.

    (g) ``Legislative agency'' means any state agency in the legislative
branch of government.

    (h) ``Project'' means a planned series of events or activities that is
intended to accomplish a specified outcome in a specified time period,
under consistent management direction within a state agency or shared
among two or more state agencies, and that has an identifiable budget
for anticipated expenses.

    (i) ``Project completion'' means the date and time when the head of
a state agency having primary responsibility for an information technology
project certifies that the improvement being produced or altered under
the project is ready for operational use.

    (j) ``Project start'' means the date and time when a state agency begins
a formal study of a business process or technology concept to assess the
needs of the state agency, determines project feasibility or prepares an
information technology project budget estimate under section 9 and
amendments thereto.

    (k) ``State agency'' means any state office or officer, department,
board, commission, institution or bureau, or any agency, division or unit
thereof.

    New Sec. 2. (a) There is hereby established the information tech-
nology executive council which shall be attached to the department of
administration for purposes of administrative functions.

    (b) The council shall be composed of 17 voting members as follows:
The secretary of administration; two cabinet agency heads; one nonca-
binet agency head; the director of the budget; the executive chief infor-
mation technology officer; the legislative chief information technology
officer; the judicial chief information technology officer and the judicial
administrator of the Kansas supreme court; the executive director of the
Kansas board of regents; the commissioner of education; one represen-
tative of cities; one representative of counties the network manager of
the information network of Kansas (INK) ; and three representatives from
the private sector who are chief executive officers or chief information
technology officers. The chief information technology architect shall be
a nonvoting member of the council. The two cabinet agency heads, the
noncabinet agency head, the representative of cities, the representative
of counties and the representatives from the private sector shall be ap-
pointed by the governor for a term not to exceed 18 months. Upon ex-
piration of an appointed member's term, the member shall continue to
hold office until the appointment of a successor. Nonappointed members
shall serve ex officio.

    (c) The secretary of administration shall serve as the chairperson of
the council.

    (d) The council shall hold meetings and hearings in the city of Topeka
or at such other places as the council designates, on call of the chairperson
or on request of four or more members.

    (e) Members of the council may not appoint an individual to repre-
sent them on the council and only members of the council may vote.

    (f) Members of the council shall not be eligible for compensation,
subsistence allowances, mileage or other expenses as provided in K.S.A.
75-3223 and amendments thereto for attendance at any meeting of the
council or any subcommittee meeting authorized by the council, except
that agencies may pay subsistence, mileage and other expenses to their
representatives on the council.

    New Sec. 3. (a) The information technology executive council is
hereby authorized to adopt such policies and rules and regulations as
necessary to implement, administer and enforce the provisions of this act.

    (b) The council shall:

    (1) Adopt: (A) Information technology resource policies and proce-
dures and project management methodologies for all state agencies; (B)
an information technology architecture, including telecommunications
systems, networks and equipment, that covers all state agencies; (C) stan-
dards for data management for all state agencies; and (D) a strategic
information technology management plan for the state;

    (2) provide direction and coordination for the application of the
state's information technology resources;

    (3) designate the ownership of information resource processes and
the lead agency for implementation of new technologies and networks
shared by multiple agencies in different branches of state government;
and

    (4) perform such other functions and duties as necessary to carry out
the provisions of this act.

    New Sec. 4. (a) There is hereby established, within and as a part of
the department of administration, the office of chief information tech-
nology architect, the head of which shall be the chief information tech-
nology architect. Under the supervision of the secretary of administration,
the chief information technology architect shall administer the office of
the chief information technology architect. The chief information tech-
nology architect shall be in the unclassified service under the Kansas civil
service act, shall be appointed by the secretary of administration, subject
to approval of the governor and shall receive compensation in an amount
fixed by the secretary of administration, subject to approval of the gov-
ernor.

    (b) The chief information technology architect shall:

    (1) Propose to the information technology executive council: (A) In-
formation technology resource policies and procedures and project man-
agement methodologies for all state agencies; (B) an information tech-
nology architecture, including telecommunications systems, networks and
equipment, that covers all state agencies; (C) standards for data manage-
ment for all state agencies; and (D) a strategic information technology
management plan for the state;

    (2) serve as secretary to the information technology executive council;
and

    (3) perform such other functions and duties as provided by law or as
directed by the secretary of administration.

    New Sec. 5. (a) There is hereby established within and as a part of
the department of administration the position of executive chief infor-
mation technology officer. The executive chief information technology
officer shall be in the unclassified service under the Kansas civil service
act, shall be appointed by the secretary of administration, subject to ap-
proval of the governor, and shall receive compensation in an amount fixed
by the secretary of administration, subject to approval of the governor.
The executive chief information technology officer shall maintain a pres-
ence in any cabinet established by the governor and shall report to both
the governor and the secretary of administration.

    (b) The executive chief information technology officer shall:

    (1) Review and consult with each executive agency regarding infor-
mation technology plans, deviations from the state information technol-
ogy architecture, information technology project estimates and informa-
tion technology project changes and overruns submitted by such agency
pursuant to section 9 and amendments thereto to determine whether the
agency has complied with: (A) The information technology resource pol-
icies and procedures and project management methodologies adopted by
the information technology executive council; (B) the information tech-
nology architecture adopted by the information technology executive
council; (C) the standards for data management adopted by the infor-
mation technology executive council; and (D) the strategic information
technology management plan adopted by the information technology ex-
ecutive council;

    (2) report to the chief information technology architect all deviations
from the state information architecture that are reported to the executive
information technology officer by executive agencies;

    (3) submit recommendations to the division of the budget as to the
technical and management merit of information technology project esti-
mates and information technology project changes and overruns submit-
ted by executive agencies pursuant to section 9 and amendments thereto,
based on the determinations made pursuant to subsection (b)(1);

    (4) monitor executive agencies' compliance with: (A) The information
technology resource policies and procedures and project management
methodologies adopted by the information technology executive council;
(B) the information technology architecture adopted by the information
technology executive council; (C) the standards for data management
adopted by the information technology executive council; and (D) the
strategic information technology management plan adopted by the infor-
mation technology executive council;

    (5) coordinate implementation of new information technology among
executive agencies and with the judicial and legislative chief information
technology officers;

    (6) designate the ownership of information resource processes and
the lead agency for implementation of new technologies and networks
shared by multiple agencies within the executive branch of state govern-
ment; and

    (7) perform such other functions and duties as provided by law or as
directed by the secretary of administration.

    New Sec. 6. (a) There is hereby established within and as a part of
the office of the state judicial administrator the position of judicial chief
information technology officer. The judicial chief information technology
officer shall be appointed by the judicial administrator, subject to approval
of the chief justice, and shall receive compensation determined by the
judicial administrator, subject to approval of the chief justice.

    (b) The judicial chief information technology officer shall:

    (1) Review and consult with each judicial agency regarding infor-
mation technology plans, deviations from the state information technol-
ogy architecture, information technology project estimates and informa-
tion technology project changes and overruns submitted by such agency
pursuant to section 9 and amendments thereto to determine whether the
agency has complied with: (A) The information technology resource pol-
icies and procedures and project management methodologies adopted by
the information technology executive council; (B) the information tech-
nology architecture adopted by the information technology executive
council; (C) the standards for data management adopted by the infor-
mation technology executive council; and (D) the strategic information
technology management plan adopted by the information technology ex-
ecutive council;

    (2) report to the chief information technology architect all deviations
from the state information architecture that are reported to the judicial
information technology officer by judicial agencies;

    (3) submit recommendations to the judicial administrator as to the
technical and management merit of information technology project esti-
mates and information technology project changes and overruns submit-
ted by judicial agencies pursuant to section 9 and amendments thereto,
based on the determinations pursuant to subsection (b)(1);

    (4) monitor judicial agencies' compliance with: (A) The information
technology resource policies and procedures and project management
methodologies adopted by the information technology executive council;
(B) the information technology architecture adopted by the information
technology executive council; (C) the standards for data management
adopted by the information technology executive council; and (D) the
strategic information technology management plan adopted by the infor-
mation technology executive council;

    (5) coordinate implementation of new information technology among
judicial agencies and with the executive and legislative chief information
technology officers;

    (6) designate the ownership of information resource processes and
the lead agency for implementation of new technologies and networks
shared by multiple agencies within the judicial branch of state govern-
ment; and

    (7) perform such other functions and duties as provided by law or as
directed by the judicial administrator.

    New Sec. 7. (a) There is hereby established the position of legislative
chief information technology officer under the legislative coordinating
council.

    (b) The legislative chief information technology officer shall be ap-
pointed by the legislative coordinating council. The joint committee may
recommend one or more persons for consideration by the legislative co-
ordinating council in making the appointment.

    (c) The legislative chief information technology officer shall receive
such compensation as determined by the legislative coordinating council
and may be removed by a vote of five members of the legislative coor-
dinating council taken at any regular meeting of the council.

    (d) The legislative chief information technology officer shall receive
expenses and allowances for in-state and out-of-state travel as is provided
by law for members of the legislature. The provisions of K.S.A. 75-3208
and amendments thereto shall not apply to any such travel.

    (e) The legislative chief information technology officer shall be in the
unclassified service under the Kansas civil service act.

    New Sec. 8. The legislative chief information technology officer
shall:

    (a) Review and consult with each legislative agency regarding infor-
mation technology plans, deviations from the state information technol-
ogy architecture, information technology project estimates and informa-
tion technology project changes and overruns submitted by such agency
pursuant to section 9 and amendments thereto to determine whether the
agency has complied with: (1) The information technology resource pol-
icies and procedures and project management methodologies adopted by
the information technology executive council; (2) the information tech-
nology architecture adopted by the information technology executive
council; (3) the standards for data management adopted by the infor-
mation technology executive council; and (4) the strategic information
technology management plan adopted by the information technology ex-
ecutive council;

    (b) report to the chief information technology architect all deviations
from the state information architecture that are reported to the legislative
information technology officer by legislative agencies;

    (c) submit recommendations to the legislative coordinating council
as to the technical and management merit of information technology pro-
ject estimates and information technology project changes and overruns
submitted by legislative agencies pursuant to section 9 and amendments
thereto, based on the determinations pursuant to subsection (a);

    (d) monitor legislative agencies' compliance with: (1) The information
technology resource policies and procedures and project management
methodologies adopted by the information technology executive council;
(2) the information technology architecture adopted by the information
technology executive council; (3) the standards for data management
adopted by the information technology executive council; and (4) the
strategic information technology management plan adopted by the infor-
mation technology executive council;

    (e) coordinate implementation of new information technology among
legislative agencies and with the executive and judicial chief information
technology officers;

    (f) designate the ownership of information resource processes and
the lead agency for implementation of new technologies and networks
shared by multiple agencies within the legislative branch of state govern-
ment;

    (g) serve as staff of the joint committee; and

    (h) perform such other functions and duties as provided by law or as
directed by the legislative coordinating council or the joint committee.

    New Sec. 9. (a) Whenever an agency proposes an information tech-
nology project, such agency shall prepare and submit to the chief infor-
mation technology officer of the branch of state government of which the
agency is a part of a project budget estimate therefor, and for each amend-
ment or revision thereof, in accordance with this section. Each informa-
tion technology project budget estimate shall be in such form as required
by the director of the budget, in consultation with the chief information
technology architect, and by this section. In each case, the agency shall
prepare and include as a part of such project budget estimate a plan
consisting of a written program statement describing the project. The
program statement shall:

    (1) Include a detailed description of and justification for the project,
including: (A) An analysis of the programs, activities and other needs and
intended uses for the additional or improved information technology; (B)
a statement of project scope including identification of the organizations
and individuals to be affected by the project and a definition of the func-
tionality to result from the project; and (C) an analysis of the alternative
means by which such information technology needs and uses could be
satisfied;

    (2) describe the tasks and schedule for the project and for each phase
of the project, if the project is to be completed in more than one phase;

    (3) include a financial plan showing: (A) The proposed source of
funding and categorized expenditures for each phase of the project; and
(B) cost estimates for any needs analyses or other investigations, consult-
ing or other professional services, computer programs, data, equipment,
buildings or major repairs or improvements to buildings and other items
or services necessary for the project; and

    (4) include a cost-benefit statement based on an analysis of qualitative
as well as financial benefits.

    (b) (1) Before one or more state agencies proposing an information
technology project begin implementation of the project, the project plan,
including the architecture and the cost-benefit analysis, shall be approved
by the head of each state agency proposing the project and by the chief
information technology officer of each branch of state government of
which the agency or agencies are a part. Approval of those projects that
involve telecommunications services shall also be subject to the provisions
of K.S.A. 75-4709, 75-4710 and 75-4712, and amendments thereto.

    (2) All specifications for bids or proposals related to an approved in-
formation technology project of one or more state agencies shall be re-
viewed by the chief information technology officer of each branch of state
government of which the agency or agencies are a part.

    (c) Annually at the time specified by the chief information technology
officer of the branch of state government of which the agency is a part,
each agency shall submit to such officer:

    (1) A copy of a three-year strategic information technology plan that
sets forth the agency's current and future information technology needs
and utilization plans for the next three ensuing fiscal years, in such form
and containing such additional information as prescribed by the chief
information technology officer; and

    (2) any deviations from the state information technology architecture
adopted by the information technology executive council.

    (d) The provisions of this section shall not apply to the information
network of Kansas (INK).

    New Sec. 10. (a) Not later than July 1 of each year, the executive,
judicial and legislative chief information technology officers shall submit
to the joint committee and to the legislative research department all in-
formation technology project budget estimates and amendments and re-
visions thereto, all three-year plans and all deviations from the state in-
formation technology architecture submitted to such officers pursuant to
section 9 and amendments thereto. The legislative chief information tech-
nology officer shall review all such estimates and amendments and revi-
sions thereto, plans and deviations and shall make recommendations to
the joint committee regarding the merit thereof and appropriations there-
for.

    (b) The executive and judicial chief information technology officers
shall report to the legislative chief information technology officer, at times
agreed upon by the three officers:

    (1) Progress regarding implementation of information technology
projects of state agencies within the executive and judicial branches of
state government; and

    (2) all proposed expenditures for such projects, including all revisions
to such proposed expenditures, for the current fiscal year and for ensuing
fiscal years.

    New Sec. 11. (a) The legislative chief information technology officer,
under the direction of the joint committee, shall monitor state agency
execution of information technology projects and, at times agreed upon
by the three chief information technology officers, shall report progress
regarding the implementation of such projects and all proposed expend-
itures therefor, including all revisions to such proposed expenditures for
the current fiscal year and for ensuing fiscal years.

    (b) The head of a state agency with primary responsibility for an in-
formation technology project may authorize or approve, without prior
consultation with the joint committee, any change in planned expendi-
tures for an information technology project that would result in the total
cost of the project being increased above the currently authorized cost of
such project but that increases the total cost of such project by less than
the lower of either $1,000,000 or 10% of the currently authorized cost,
and any change in planned expenditures for an information technology
project involving a cost reduction, other than a change in the proposed
use of any new or replacement information technology equipment or in
the use of any existing information technology equipment that has been
significantly upgraded.

    (c) The head of a state agency with primary responsibility for an in-
formation technology project shall not authorize or approve, without first
advising and consulting with the joint committee any information tech-
nology project change or overrun. The joint committee shall report all
such changes and overruns to the senate standing committee on ways and
means and the house standing committee on appropriations.

    New Sec. 12. (a) The Kansas information resources council estab-
lished by K.S.A. 75-4740 and the office of the chief information architect
established by K.S.A. 75-4742 are hereby abolished.

    (b) The unexpended budgeted balance of any appropriation for the
Kansas information resources council as a result of any abolishment by
this section shall be and is hereby transferred to the information tech-
nology executive council created by this act. The unexpended budgeted
balance of any appropriation for the position of chief information architect
as a result of any abolishment by this section shall be and is hereby trans-
ferred to the legislative coordinating council -- operations account.

    (c) Whenever the Kansas information resources council is referred to
or designated by a statute, contract or other document, such reference
or designation shall be deemed to apply to the information technology
executive council created by this act. Whenever the position of chief in-
formation architect or the office of the chief information architect is re-
ferred to or designated by a statute, contract or other document, such
reference or designation shall be deemed to apply to the position of chief
information technology architect or the office of the chief information
technology architect created by this act or to the position of executive
chief information technology officer, as determined appropriate in ac-
cordance with the provisions of this act.

    (d) The information technology executive council created by this act
shall succeed to all property and records that were used for, or pertain
to, the performance of the powers, duties and functions of the Kansas
information resources council abolished by this act. The office of the chief
information technology architect created by this act shall succeed to all
property and records that were used for, or pertain to, the performance
of the powers, duties and functions of the office of the chief information
architect abolished by this act. Any conflict as to the proper disposition
of such property or records arising under this section and resulting from
the transfer or abolishment of any existing state agency, or the powers,
duties and functions thereof, shall be determined by the governor, whose
decision shall be final.

    (e) Any conflict as to the disposition of any power, function or duty
as a result of any abolishment, transfer, attachment or other change made
by this act, or under authority of this act, shall be resolved by the governor,
and the decision of the governor shall be final.

    (f) No suit, action, or other proceeding, judicial or administrative,
lawfully commenced, or that could have been commenced, by or against
the Kansas information resources council, or by or against the office of
the chief information architect or the chief information architect in the
chief information architect's official capacity or in relation to the discharge
of official duties, shall abate by reason of the provisions of this act. The
court may allow any such suit, action or other proceeding to be main-
tained by or against the information technology executive council, the
office of the chief information technology architect or the chief infor-
mation technology architect.

    (g) No criminal action commenced or that could have been com-
menced by the state shall abate by the taking effect of this act.

    Sec. 13. K.S.A. 46-2101 is hereby amended to read as follows: 46-
2101. (a) There is hereby established the joint committee on computers
and telecommunications information technology which shall be within the
legislative branch of state government and which shall be composed of
three senators and three members of the house of representatives. One
of the senate members shall be appointed by the president of the senate,
one of the senate members shall be appointed by the minority leader of
the senate and one of the senate members shall be appointed by the
chairperson of the committee on ways and means of the senate. One of
the representative members shall be appointed by the speaker of the
house of representatives, one of the representative members shall be
appointed by the minority leader of the house of representatives and one
of the representative members shall be appointed by the chairperson of
the committee on appropriations of the house of representatives. The
members of the joint committee on information technology and the chair-
person and vice-chairperson serving in such capacities on the effective
date of this act shall continue serving as members and in such capacities,
respectively, subject to the other provisions of this section.

    (b) All members of the joint committee on computers and telecom-
munications information technology shall serve for terms ending on the
first day of the regular legislative session in odd-numbered years. The
joint committee shall organize annually and elect a chairperson and
vice-chairperson in accordance with this subsection. After June 30 The
chairperson and vice-chairperson serving on the effective date of this act
shall continue to serve in such capacities through June 30, 1998. On and
after July 1, 1998, and until the first day of the 1999 regular legislative
session, 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 one of the representative members of the joint com-
mittee elected by the members of the joint committee. Thereafter, on and
after the first day of the regular legislative session 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 and, after the first day of the
regular legislative session 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 one of
the representative members of the joint committee elected by the mem-
bers of the joint committee. The chairperson and vice-chairperson of the
joint committee shall serve in such capacities until July 1 of the first day
of the regular legislative session in the ensuing year. The vice-chairperson
shall exercise all of the powers of the chairperson in the absence of the
chairperson. If a vacancy occurs in the office of chairperson or vice-chair-
person, a member of the joint committee, who is a member of the same
house as the member who vacated the office, shall be elected by the
members of the joint committee to fill such vacancy.

    (c) A quorum of the joint committee on computers and telecom-
munications information technology 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 on computers and telecommunications in-
formation technology 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 computers and
telecommunications information technology 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 computers and telecom-
munications information technology.

    (g) The joint committee on computers and telecommunications in-
formation technology may introduce such legislation as it deems necessary
in performing its functions.

    (h) (1) On the effective date of this act the joint committee on com-
puters and telecommunications shall be and is hereby officially designated
as the joint committee on information technology.

    (2) On and after the effective date of this act, whenever the joint
committee on computers and telecommunications, or words of like effect,
is referred to or designated by a statute, contract or other document,
created before the effective date of this act, the reference or designation
shall mean and apply to the joint committee on information technology.

    (3) Nothing in this act shall be construed as abolishing or reestablish-
ing the joint committee on computers and telecommunications.

    Sec. 14. K.S.A. 46-2102 is hereby amended to read as follows: 46-
2102. In addition to other powers and duties authorized or prescribed by
law or by the legislative coordinating council, the joint committee on
computers and telecommunications information technology shall:

    (a) Study the use by state agencies and institutions of computers,
telecommunications and other information technologies;

    (b) review new governmental computer hardware and software ac-
quisition, information storage, transmission, processing and telecommu-
nications technologies proposed by state agencies and institutions, in-
cluding budget estimates for implementation of the same, and make
recommendations thereon and the implementation plans therefor, includ-
ing all information technology project budget estimates and three-year
strategic information technology plans that are submitted to the joint com-
mittee pursuant to section 10 and amendments thereto;

    (c) make recommendations on all such implementation plans, budget
estimates and three-year plans to the ways and means committee of the
senate and the committee on appropriations of the house of representa-
tives;

    (c) (d) study the progress and results of all newly implemented gov-
ernmental computer hardware and software, information storage, trans-
mission, processing and telecommunications technologies of state agen-
cies and institutions including all information technology projects for state
agencies which have been authorized or for which appropriations have
been approved by the legislature; and

    (d) (e) 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.

    Sec. 15. K.S.A. 75-4703 is hereby amended to read as follows: 75-
4703. The secretary of administration may adopt rules and regulations as
provided in K.S.A. 75-3706, and amendments thereto, relating to the
following:

    (a) Establishment of rates and charges for services performed by the
division of information systems and communications for any other divi-
sion, department, state agency or governmental unit. Such rates and
charges shall be maintained by a cost system in accordance with generally
accepted accounting principles. In determining cost rates for billing to
agencies or governmental units, overhead expenses shall include but not
be limited to light, heat, power, insurance, labor and depreciation. Billings
shall include direct and indirect costs and shall be based on the foregoing
cost accounting practices.

    (b) For determination of priorities for services performed by the di-
vision of information systems and communications, including authority to
decline new projects under specified conditions.

    (c) Specification of standards for submission of data to be processed
by the division of information systems and communications and the pro-
grams for processing the data, including authority to decline to process
computer programs and projects not conforming to published standards.
Such standards shall be consistent with the standards and policies adopted
by the information technology executive council under section 3 and
amendments thereto.

    (d) Specification of standards and measures relating to security, con-
fidentiality and availability of data processed by the division of information
systems and communications. Such standards and measures shall be con-
sistent with the standards and policies adopted by the information tech-
nology executive council under section 3 and amendments thereto.

    Sec. 16. K.S.A. 75-4707 is hereby amended to read as follows: 75-
4707. Notwithstanding the provisions of K.S.A. 75-3738 and 75-3739 and
amendments thereto Subject to the provisions of section 9 and amend-
ments thereto, state agencies using information processing equipment un-
der lease are hereby authorized to enter into contracts with leasing service
companies for purchase by the agency of such equipment with nonstate
funds furnished by such leasing service companies and transfer of title to
such equipment by the agency to such leasing service company for lease
back to the agency. Any such contract shall first be approved by the chief
information architect under the supervision of the Kansas information
resources council.

    Sec. 17. K.S.A. 75-4709 is hereby amended to read as follows: 75-
4709. (a) The secretary of administration shall provide for and coordinate
all telecommunications services for all divisions, departments and agen-
cies of the state pursuant to policies established by the Kansas information
resources information technology executive council. The secretary of ad-
ministration shall have the authority to control the acquisition, retention
and use of all telecommunications services for all divisions, departments
and agencies of the state, and to develop and review plans and specifi-
cations for telecommunications services throughout the state.

    (b) The secretary of administration, when feasible, may enter into
agreements with any entity defined in this subsection extending to such
entity the use of state intercity telecommunications facilities and services
under the control of the secretary.

    As used in this subsection, an ``entity'' means:

    (1) Any governmental unit, including any state agency, taxing subdi-
vision of the state or municipality; or

    (2) any hospital or nonprofit corporation which the secretary deter-
mines to be performing any state function on an ongoing basis through
agreement or otherwise, or any function which will assist a governmental
unit in attaining an objective or goal, bearing a valid relationship to powers
and functions of such unit.

    (c) Every record made, maintained or kept by the secretary of ad-
ministration or the division of information systems and communications,
or any agency or instrumentality thereof, which relates to the acquisition,
retention or use of telecommunications services provided to any division,
department or agency of the state, state officer or governmental unit and
which pertains to individually identifiable individuals using such telecom-
munication services shall constitute for purposes of the open records act
a record of the division, department or agency of the state, state officer
or governmental unit to which such records relate. The official custodian
of such records for the purposes of the open records act shall be the
official custodian of the records of such division, department or agency
of the state, state officer or governmental unit.

    Sec. 18. K.S.A. 75-5147 is hereby amended to read as follows: 75-
5147. The secretary of revenue is hereby authorized to enter into con-
tracts to acquire automated tax systems, including computer hardware
and software therefor, for use in the registration of taxpayers, processing
of remittances and returns, and collection of delinquent taxes and any
interest and penalties thereon. Any contracts entered into between the
secretary of revenue and vendors of automated tax systems shall provide
(1) for payment of fees for the automated tax system on the basis of a
percentage of the increase in the amount of taxes, interest and penalties
collected which is attributable to the implementation of the automated
tax systems as specified by the joint consensus of the director of the
budget and the director of the legislative research department under this
section or (2) for payment of fees for the automated tax system on a fixed
fee contract basis, such fees to be paid from the increase in the amount
of taxes, interest and penalties collected which is attributable to the im-
plementation of the automated tax systems as specified by the joint con-
sensus of the director of the budget and the director of the legislative
research department under this section. All contracts entered into under
this section shall be entered into pursuant to procurement negotiating
committee procedures as provided in K.S.A. 75-37,102 and amendments
thereto. Prior to publishing or distributing a request for proposal, such
request for proposal shall be reviewed by the joint committee on com-
puters and telecommunications information technology. During each reg-
ular session of the legislature, the secretary of revenue shall submit a
report to the committee on ways and means of the senate and the com-
mittee on appropriations of the house of representatives. Such report shall
include detailed information on the costs and benefits of implementing
automated tax systems during the fiscal year immediately preceding the
submission of the report. The report required hereunder shall be made
annually until two complete fiscal years have elapsed following full im-
plementation of automated tax systems by the secretary of revenue. In
addition, the director of the budget and the director of the legislative
research department shall prepare annually a joint consensus on the
amount of increased tax, interest and penalty collections which are at-
tributable to the automated tax system and shall report their findings
during each regular session of the legislature to the committee on ways
and means of the senate and the committee on appropriations of the
house of representatives. Nothing in this section shall prohibit the sec-
retary of revenue from acquiring any goods or services through appro-
priations for any department of revenue function or program not specif-
ically included in any contract entered into pursuant to this section.

    Sec. 19. K.S.A. 76-3,100 is hereby amended to read as follows: 76-
3,100. Each acquisition of data processing hardware or software by the
university of Kansas medical center for the university hospital information
systems shall be exempt from the provisions of K.S.A. 75-4705, 75-4706,
75-4707, 75-4709 and 75-3739 and amendments thereto and shall not be
subject to approval under any statute other than those contained in article
3 or article 7 of chapter 76 of the Kansas Statutes Annotated. In addition
to other procedures, the university of Kansas medical center is hereby
authorized to acquire data processing hardware and software for the uni-
versity hospital information systems by sole source negotiation. The uni-
versity of Kansas medical center shall file with the director of purchases
of the department of administration and shall update periodically a plan
for future acquisitions under this section. The university of Kansas med-
ical center shall submit a written report in each calendar quarter to the
secretary of administration, to the chairpersons of the senate committee
on ways and means and the house of representatives committee on ap-
propriations, and to the joint committee on computers and telecommu-
nications information technology on all contracts for acquisition of data
processing hardware and software entered into under this section during
such calendar quarter.

    Sec. 20. K.S.A. 75-2935 is hereby amended to read as follows: 75-
2935. The civil service of the state of Kansas is hereby divided into the
unclassified and the classified services.

    (1) The unclassified service comprises positions held by state officers
or employees who are:

    (a) Chosen by election or appointment to fill an elective office;

    (b) members of boards and commissions, heads of departments re-
quired by law to be appointed by the governor or by other elective offi-
cers, and the executive or administrative heads of offices, departments,
divisions and institutions specifically established by law;

    (c) except as otherwise provided under this section, one personal sec-
retary to each elective officer of this state, and in addition thereto, 10
deputies, clerks or employees designated by such elective officer;

    (d) all employees in the office of the governor;

    (e) officers and employees of the senate and house of representatives
of the legislature and of the legislative coordinating council and all officers
and employees of the office of revisor of statutes, of the legislative re-
search department, of the division of legislative administrative services,
of the division of post audit and the legislative counsel;

    (f) chancellor, president, deans, administrative officers, student
health service physicians, pharmacists, teaching and research personnel,
health care employees and student employees in the institutions under
the state board of regents, the executive officer of the board of regents
and the executive officer's employees other than clerical employees, and,
at the discretion of the state board of regents, directors or administrative
officers of departments and divisions of the institution and county exten-
sion agents, except that this subsection (1)(f) shall not be construed to
include the custodial, clerical or maintenance employees, or any employ-
ees performing duties in connection with the business operations of any
such institution, except administrative officers and directors; as used in
this subsection (1)(f), ``health care employees'' means employees of the
university of Kansas medical center who provide health care services at
the university of Kansas medical center and who are medical technicians
or technologists or respiratory therapists, who are licensed professional
nurses or licensed practical nurses, or who are in job classes which are
designated for this purpose by the chancellor of the university of Kansas
upon a finding by the chancellor that such designation is required for the
university of Kansas medical center to recruit or retain personnel for
positions in the designated job classes; and employees of any institution
under the state board of regents who are medical technologists;

    (g) operations, maintenance and security personnel employed to im-
plement agreements entered into by the adjutant general and the federal
national guard bureau, and officers and enlisted persons in the national
guard and the naval militia;

    (h) persons engaged in public work for the state but employed by
contractors when the performance of such contract is authorized by the
legislature or other competent authority;

    (i) persons temporarily employed or designated by the legislature or
by a legislative committee or commission or other competent authority
to make or conduct a special inquiry, investigation, examination or in-
stallation;

    (j) officers and employees in the office of the attorney general and
special counsel to state departments appointed by the attorney general,
except that officers and employees of the division of the Kansas bureau
of investigation shall be in the classified or unclassified service as provided
in K.S.A. 75-711 and amendments thereto;

    (k) all employees of courts;

    (l) client, patient and inmate help in any state facility or institution;

    (m) all attorneys for boards, commissions and departments;

    (n) the secretary and assistant secretary of the Kansas state historical
society;

    (o) physician specialists, dentists, dental hygienists, pharmacists,
medical technologists and long term care workers employed by the de-
partment of social and rehabilitation services;

    (p) physician specialists, dentists and medical technologists employed
by any board, commission or department or by any institution under the
jurisdiction thereof;

    (q) student employees enrolled in public institutions of higher learn-
ing;

    (r) administrative officers, directors and teaching personnel of the
state board of education and the state department of education and of
any institution under the supervision and control of the state board of
education, except that this subsection (1)(r) shall not be construed to
include the custodial, clerical or maintenance employees, or any employ-
ees performing duties in connection with the business operations of any
such institution, except administrative officers and directors;

    (s) all officers and employees in the office of the secretary of state;

    (t) one personal secretary and one special assistant to the following:
The secretary of administration, the secretary of aging, the secretary of
agriculture, the secretary of commerce and housing, the secretary of cor-
rections, the secretary of health and environment, the superintendent of
the Kansas highway patrol, the secretary of human resources, the secre-
tary of revenue, the secretary of social and rehabilitation services, the
secretary of transportation and the secretary of wildlife and parks;

    (u) one personal secretary and one special assistant to the chancellor
and presidents of institutions under the state board of regents;

    (v) one personal secretary and one special assistant to the executive
vice chancellor of the university of Kansas medical center;

    (w) one public information officer and one chief attorney for the fol-
lowing: The department of administration, the department on aging, the
department of agriculture, the department of commerce and housing, the
department of corrections, the department of health and environment,
the department of human resources, the department of revenue, the de-
partment of social and rehabilitation services, the department of trans-
portation and the Kansas department of wildlife and parks;

    (x) civil service examination monitors;

    (y) one executive director, one general counsel and one director of
public affairs and consumer protection in the office of the state corpo-
ration commission;

    (z) specifically designated by law as being in the unclassified service;
and

    (aa) all officers and employees of Kansas, Inc. and the Kansas tech-
nology enterprise corporation.; and

    (bb) any position that is classified as a position in the information
resource manager job class series, that is the chief position responsible for
all information resources management for a state agency, and that be-
comes vacant on or after the effective date of this act. Nothing in this
section shall affect the classified status of any employee in the classified
service who is employed on the date immediately preceding the effective
date of this act in any position that is a classified position in the infor-
mation resource manager job class series and the unclassified status as
prescribed by this subsection shall apply only to a person appointed to
any such position on or after the effective date of this act that is the chief
position responsible for all information resources management for a state
agency.

    (2) The classified service comprises all positions now existing or here-
after created which are not included in the unclassified service. Appoint-
ments in the classified service shall be made according to merit and fitness
from eligible pools which so far as practicable shall be competitive. No
person shall be appointed, promoted, reduced or discharged as an officer,
clerk, employee or laborer in the classified service in any manner or by
any means other than those prescribed in the Kansas civil service act and
the rules adopted in accordance therewith.

    (3) For positions involving unskilled, or semiskilled duties, the sec-
retary of administration, as provided by law, shall establish rules and reg-
ulations concerning certifications, appointments, layoffs and reemploy-
ment which may be different from the rules and regulations established
concerning these processes for other positions in the classified service.

    (4) Officers authorized by law to make appointments to positions in
the unclassified service, and appointing officers of departments or insti-
tutions whose employees are exempt from the provisions of the Kansas
civil service act because of the constitutional status of such departments
or institutions shall be permitted to make appointments from appropriate
pools of eligibles maintained by the division of personnel services.

    Sec. 21. K.S.A. 75-6301 is hereby amended to read as follows: 75-
6301. (a) There is hereby established the office of the securities com-
missioner of Kansas. The office shall be administered by the securities
commissioner of Kansas who shall be in the unclassified service under the
Kansas civil service act and shall serve at the pleasure of the governor.
The securities commissioner shall be appointed by the governor, with the
consent of subject to confirmation by the senate as provided in K.S.A.
75-4315b and amendments thereto, shall have special training and quali-
fications for such position and shall receive such compensation as may be
fixed by the governor. The securities commissioner shall employ, and fix
the compensation of, such assistants or clerks as the securities commis-
sioner may from time to time deem necessary.

    (b) The securities commissioner may appoint directors within the of-
fice of the securities commissioner as determined necessary by the secu-
rities commissioner to effectively carry out the mission of the office. All
directors appointed after the effective date of this act shall be in the un-
classified service under the Kansas civil service act, shall have special
training and qualifications for such positions, shall serve at the pleasure
of the securities commissioner and shall receive compensation fixed by the
securities commissioner and approved by the governor.

    (c) Nothing in subsection (b) shall affect the classified status of any
person employed in the office of the securities commissioner on the day
immediately preceding the effective date of this act. The provisions of this
subsection shall not be construed to limit the powers of the securities
commissioner pursuant to K.S.A. 75-2948 and amendments thereto.

    Sec. 22. K.S.A. 46-1604 is hereby amended to read as follows: 46-
1604. (a) There is hereby created the joint committee on economic de-
velopment which shall be composed of five senators and eight members
of the house of representatives. The five senate members shall be the
chairperson of the standing committee on commerce of the senate, or a
member of such committee appointed by the chairperson, two members
of such committee appointed by the president and two members of such
committee appointed by the minority leader. The eight representative
members shall be the chairperson of the standing committee on economic
development of the house of representatives, or a member of such com-
mittee appointed by the chairperson, four members of such committee
appointed by the speaker and three members of such committee ap-
pointed by the minority leader.

    (b) All members of the joint committee on economic development
shall serve for terms ending on the first day of the regular legislative
session in odd-numbered years. After June 30 The chairperson and
vice-chairperson serving on the effective date of this act will continue to
serve in such capacities through June 30, 1998. On and after July 1, 1998,
and until the first day of the 1999 regular legislative session, the chair-
person shall be one of the senate members of the joint committee selected
by the president and the vice-chairperson shall be one of the represen-
tative members selected by the speaker. Thereafter, on and after the first
day of the regular legislative session in odd-numbered years, the chair-
person shall be one of the representative members of the joint committee
selected by the speaker and the vice-chairperson shall be one of the senate
members selected by the president. After June 30 and, on and after the
first day of the regular legislative session in even-numbered years, the
chairperson shall be one of the senate members of the joint committee
selected by the president and the vice-chairperson shall be one of the
representative members of the joint committee selected by the speaker.
The chairperson and vice-chairperson of the joint committee shall serve
in such capacities until July 1 of the first day of the regular legislative
session in the ensuing year. The vice-chairperson shall exercise all of the
powers of the chairperson in the absence of the chairperson.

    (c) The joint committee on economic development may meet at any
time and at any place within the state on the call of the chairperson.

    (d) 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 economic de-
velopment to the extent that the same do not conflict with the specific
provisions of this act applicable to the joint committee.

    (e) 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 economic development.

    (f) The joint committee on economic development may introduce
such legislation as it deems necessary in performing its functions.

    Sec. 23. K.S.A. 46-1701 is hereby amended to read as follows: 46-
1701. (a) There is hereby created the joint committee on state building
construction which shall be within the legislative branch of state govern-
ment and which 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 committee on ways and means of the senate appointed
by the chairperson, a senator appointed by the president and a senator
appointed by the minority leader. The three representative members shall
be the chairperson of the committee on appropriations of the house of
representatives, or a member of the committee on appropriations of the
house of representatives appointed by the chairperson, a representative
appointed by the speaker and a representative appointed by the minority
leader.

    (b) All members of the joint committee on state building construction
shall serve for terms ending on the first day of the regular legislative
session in odd-numbered years. The joint committee shall organize an-
nually and elect a chairperson and vice-chairperson in accordance with
this subsection. After June 30 The chairperson and vice-chairperson serv-
ing on the effective date of this act will continue to serve in such capacities
through June 30, 1998. On and after July 1, 1998, and until the first day
of the 1999 regular legislative session, 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 one of the representative
members of the joint committee elected by the members of the joint com-
mittee. Thereafter, on and after the first day of the regular legislative
session in odd-numbered years, the chairperson shall be one of the rep-
resentative 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 members of the joint committee. After June 30
and on and after the first day of the regular legislative session 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 one of the representative members of the
joint committee elected by the members of the joint committee. The
chairperson and vice-chairperson of the joint committee shall serve in
such capacities until July 1 of the first day of the regular legislative session
in the ensuing year. The vice-chairperson shall exercise all of 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
committee, who is a member of the same house as the member who
vacated the office, shall be elected by the members of the joint committee
to fill such vacancy. Within 30 days after the effective date of this act, the
joint committee shall reorganize and elect a chairperson and a vice-chair-
person in accordance with the provisions of this act.

    (c) A quorum of the joint committee on state building construction
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 on state building construction 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 state building
construction 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 state building construc-
tion.

    (g) The joint committee on state building construction may introduce
such legislation as it deems necessary in performing its functions.

    Sec. 24. K.S.A. 1997 Supp. 46-2201 is hereby amended to read as
follows: 46-2201. (a) On January 1, 1993, There is hereby created the
joint committee on pensions, investments and benefits which shall be
composed of five senators and eight members of the house of represen-
tatives. The five senate members shall be the chairperson of the standing
committee on ways and means of the senate, or a member of such com-
mittee appointed by the chairperson, two members appointed by the
president and two members appointed by the minority leader. The eight
representative members shall be the chairperson of the standing com-
mittee on appropriations of the house of representatives, or a member of
such committee appointed by the chairperson, four members appointed
by the speaker and three members appointed by the minority leader.

    (b) All members of the joint committee on pensions, investments and
benefits shall serve for terms ending on the first day of the regular leg-
islative session in odd-numbered years. After June 30 The chairperson
and vice-chairperson serving on the effective date of this act will continue
to serve in such capacities through June 30, 1998. On and after July 1,
1998, and until the first day of the 1999 regular legislative session, the
chairperson shall be one of the senate members of the joint committee
selected by the president and the vice-chairperson shall be one of the
representative members selected by the speaker. Thereafter, on and after
the first day of the regular legislative session in odd-numbered years, the
chairperson shall be one of the representative members of the joint com-
mittee selected by the speaker and the vice-chairperson shall be one of
the senate members selected by the president. After June 30 and on and
after the first day of the regular legislative session in even-numbered
years, the chairperson shall be one of the senate members of the joint
committee selected by the president and the vice-chairperson shall be
one of the representative members of the joint committee selected by
the speaker. The chairperson and vice-chairperson of the joint committee
shall serve in such capacities until July 1 of the first day of the regular
legislative session in the ensuing year. The vice-chairperson shall exercise
all of the powers of the chairperson in the absence of the chairperson.

    (c) The joint committee on pensions, investments and benefits shall
meet at any time and at any place within the state on call of the chair-
person. Members of the joint committee shall receive compensation and
travel expenses and subsistence expenses or allowances as provided in
K.S.A. 75-3212 and amendments thereto when attending meetings of
such committee authorized by the legislative coordinating council.

    (d) 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 pensions, investments and
benefits.

    (e) The joint committee on pensions, investments and benefits may
introduce such legislation as deemed necessary in performing such com-
mittee's functions.

    (f) The joint committee on pensions, investments and benefits shall:

    (1) Monitor, review and make recommendations regarding invest-
ment policies and objectives formulated by the board of trustees of the
Kansas public employees retirement system;

    (2) review and make recommendations relating to benefits for mem-
bers under the Kansas public employees retirement system; and

    (3) consider and make recommendations to the standing committee
of the senate specified by the president of the senate relating to the
confirmation of members of the board of trustees of the Kansas public
employees retirement system appointed pursuant to K.S.A. 74-4905 and
amendments thereto. On and after July 1, 1993, The information pro-
vided by the Kansas bureau of investigation or other criminal justice
agency pursuant to subsection (h) of K.S.A. 74-4905 and amendments
thereto relating to the confirmation of members of the board to the stand-
ing committee of the senate specified by the president shall be forwarded
by the Kansas bureau of investigation or such other criminal justice
agency to such joint committee for such joint committee's consideration
and other than conviction data, shall be confidential and shall not be
disclosed except to members and employees of the joint committee as
necessary to determine qualifications of such member. The committee,
in accordance with K.S.A. 75-4319 and amendments thereto shall recess
for a closed or executive meeting to receive and discuss information re-
ceived by the committee pursuant to this subsection; and.

    (4) review and make recommendations to the legislature by the first
day of legislative session commencing in 1997 relating to the implemen-
tation of a permanent policy regarding adjustments in retirement benefit
payments to retirants and disabled members. Such recommendations
should include a review of cost-of-living adjustments, the shared earnings
proposal presented to the 1996 legislature and other mechanisms for re-
funding adjustments in retirement benefit payments to retirants and dis-
abled members as an alternative to annual cost-of-living adjustments. In
conducting such review the committee may utilize legislative staff, Kansas
public employees retirement system staff, the Kansas public employees
retirement system actuary and other consultants. Any recommendations
shall include actuarially based cost estimates, including an assessment of
the impact on the Kansas public employees retirement system fund's
unfunded actuarial liability.

    Sec. 25. K.S.A. 1997 Supp. 65-34,154 is hereby amended to read as
follows: 65-34,154. On or before the first day of the regular legislative
session each year, the secretary shall submit to the members of the stand-
ing committees committee on energy and natural resources of the house
of representatives and the senate and to the members of the standing
committee on environment of the house of representatives a report re-
garding:

    (a) Receipts of the fund during the preceding calendar year and the
sources of the receipts;

    (b) disbursements from the fund during the preceding calendar year
and the purposes of the disbursements;

    (c) the extent of corrective action taken under this act during the
preceding calendar year; and

    (d) the prioritization of sites for expenditures from the fund.

    Sec. 26. K.S.A. 68-2003 is hereby amended to read as follows: 68-
2003. There is hereby created a body politic and corporate to be known
as the Kansas turnpike authority. The authority is hereby constituted a
public instrumentality and the exercise by the authority of the powers
conferred by this act in the construction, operation and maintenance of
turnpike projects shall be deemed and held to be the performance of an
essential governmental function.

    The Kansas turnpike authority shall consist of five members. Two
members shall be appointed by the governor for terms of four years. The
members appointed by the governor shall be residents of the state and
shall each year be owners of revenue bonds issued by the Kansas turnpike
authority. One member of the authority shall be the secretary of trans-
portation. One member shall be the chairperson of the committee on
transportation and utilities tourism of the senate, and one member shall
be a member of the committee on transportation of the house of repre-
sentatives and shall be appointed by the speaker of the house of repre-
sentatives. Any person appointed by the governor to fill a vacancy on the
authority shall be appointed to serve only for the unexpired term, and a
member of the authority shall be eligible for reappointment. A member
of the authority may be removed by the governor for misfeasance, mal-
feasance or willful neglect of duty, but only after reasonable notice and a
public hearing conducted in accordance with the provisions of the Kansas
administrative procedure act. Each member of the authority, before en-
tering upon the member's duties, shall take and subscribe an oath or
affirmation as required by law.

    The authority shall elect one member as chairperson of the authority
and another as vice-chairperson. The authority shall also elect a secretary-
treasurer who need not be a member of the authority. The chairperson,
vice-chairperson and secretary-treasurer shall serve as officers at the plea-
sure of the authority. Three members of the authority shall constitute a
quorum and the affirmative vote of three members shall be necessary for
any action taken by the authority. No vacancy in the membership of the
authority shall impair the right of a quorum to exercise all the rights and
perform all the duties of the authority.

    Members of the Kansas turnpike authority attending meetings of such
authority, or attending a subcommittee meeting thereof authorized by
such authority, shall be paid compensation, subsistence allowances, mile-
age and other expenses as provided in K.S.A. 75-3223 and amendments
thereto.

    Sec. 27. K.S.A. 75-3739 is hereby amended to read as follows: 75-
3739. In the manner as provided in this act and rules and regulations
established thereunder:

    (a) All contracts for construction and repairs, and all purchases of and
contracts for supplies, materials, equipment and contractual services to
be acquired for state agencies shall be based on competitive bids, except
that competitive bids need not be required in the following instances:

    (1) For contractual services, supplies, materials, or equipment when,
in the judgment of the director of purchases, no competition exists; or

    (2) when, in the judgment of the director of purchases, chemicals
and other material or equipment for use in laboratories or experimental
studies by state agencies are best purchased without competition, or
where rates are fixed by law or ordinance; or

    (3) when, in the judgment of the director of purchases, an agency
emergency requires immediate delivery of supplies, materials or equip-
ment, or immediate performance of services; or

    (4) when any statute authorizes another procedure or provides an
exemption from the provisions of this section.;

    (5) when compatibility with existing contractual services, supplies,
materials or equipment is the overriding consideration;

    (6) when a used item becomes available and is subject to immediate
sale; or

    (7) when, in the judgment of the director of purchases and the head
of the acquiring state agency, not seeking competitive bids is in the best
interest of the state.

    When the director of purchases approves a purchase of or contract for
supplies, materials, equipment, or contractual services in any instance
specified in this subsection, the director may delegate authority to make
the purchase or enter the contract under conditions and procedures pre-
scribed by the director.

    The director of purchases shall make prepare a detailed report at least
once in each calendar quarter to the legislative coordinating council and
the chairpersons of the senate committee on ways and means and the
house of representatives committee on appropriations of all contracts for
goods, supplies, materials, equipment or contractual services over $5,000
entered into without competitive bids under subsections (a)(1), (a)(2),
(a)(3) or (g) subsection (a)(1), (2), (3), (5), (6) or (7). The director shall
submit the report to the legislative coordinating council, the chairperson
of the committee on ways and means of the senate, the chairperson of the
committee on appropriations of the house of representatives and the chair-
person of the Kansas performance review board.

    (b) (1) If the amount of the purchase is estimated to exceed approx-
imately $10,000 $50,000, sealed bids shall be solicited by notice published
once in the Kansas register not less than 10 days before the date stated
therein in the notice for the opening of such the bids. The director of
purchases may waive this publication of notice requirement when the
director determines that a more timely procurement is in the best interest
of the state. The director of purchases also may designate a trade journal
for such the publication. The director of purchases also shall solicit such
bids by sending notices by mail to prospective bidders and by posting the
notice on a public bulletin board for at least 10 business days before the
date stated in the notice for the opening of the bids unless otherwise
provided by law. All bids shall be sealed when received and shall be
opened in public at the hour stated in the notice.

    (2) The director of purchases shall make prepare a detailed report at
least once in each calendar quarter to the legislative coordinating council
and the chairpersons of the senate committee on ways and means and
the house of representatives committee on appropriations of all cases
when the instances in which the director waived publication of the notice
of bid solicitations in the Kansas register have been waived under as
provided in this subsection. The director shall submit the report to the
legislative coordinating council, the chairperson of the committee on ways
and means of the senate, the chairperson of the committee on appropri-
ations of the house of representatives and the chairperson of the Kansas
performance review board.

    (c) All purchases estimated to exceed approximately $5,000 $25,000
but not more than $10,000 $50,000, shall be made after receipt of sealed
bids following at least three days' notice posted on a public bulletin board
in the office of the director of purchases. The director of purchases also
may solicit sealed bids by mail in such cases in like manner as provided
in subsection (b).

    (d) All purchases estimated to be less more than $5,000, but less than
$25,000, may be made after the receipt of three or more bid solicitations
by telephone and after receipt of, telephone facsimile or sealed bids bid,
following at least three days' notice posted on a public bulletin board in
the office of the director of purchases. Such bids shall be recorded as
provided in subsection (e) of K.S.A. 75-3740 and amendments thereto.
Any purchase that is estimated to be less than $5,000 may be purchased
under conditions and procedures prescribed by the director of purchases.
Purchases made in compliance with such conditions and procedures shall
be exempt from other provisions of this section.

    (e) With the approval of the secretary of administration, the director
of purchases may delegate authority to any state agency to make pur-
chases of less than $10,000 either on the open market or $25,000 under
certain prescribed conditions and procedures. The director of purchases
shall make prepare a report at least once in each calendar quarter to the
legislative coordinating council and the chairpersons of the senate com-
mittee on ways and means and the house of representatives committee
on appropriations of all current and existing delegations of authority un-
der to state agencies as provided in this subsection to state agencies. The
director shall submit the report to the legislative coordinating council, the
chairperson of the committee on ways and means of the senate, the chair-
person of the committee on appropriations of the house of representatives
and the chairperson of the Kansas performance review board.

    (e) (f) Subject to the provisions of subsection (d) (e), contracts and
purchases shall be based on specifications approved by the director of
purchases. When deemed applicable and feasible by the director of pur-
chases, such specifications shall include either energy efficiency standards
or appropriate life cycle cost formulas, or both, for all supplies, materials,
equipment and contractual services to be purchased by the state. The
director of purchases may reject a contract or purchase on the basis that
a product is manufactured or assembled outside the United States. No
such specifications shall be fixed in a manner to effectively exclude any
responsible bidder offering comparable supplies, materials, equipment or
contractual services.

    (f) (g) Notwithstanding anything herein to the contrary, all contracts
with independent construction concerns for the construction, improve-
ment, reconstruction and maintenance of the state highway system and
the acquisition of rights-of-way for state highway purposes shall be ad-
vertised and let as now or hereafter provided by law.

    (g) The director of purchases (h) The director of purchases may
authorize state agencies to contract for services and materials with other
state agencies, or with federal agencies, political subdivisions of Kansas,
agencies of other states or subdivisions thereof, or private nonprofit ed-
ucational institutions, without competitive bids.

    (i) The director of purchases may participate in, sponsor, conduct, or
administer a cooperative purchasing agreement or consortium for pur-
chases of supplies, materials, equipment, and contractual services with
federal agencies or agencies of other states or local units of government.
Cooperative purchasing agreements entered into under this subsection
shall not be subject to K.S.A. 75-3739 through 75-3740a, and amendments
thereto. Nothing in this subsection shall allow federal grant moneys to be
handled differently from any other moneys of the state unless the require-
ments of the applicable federal grant specifically require such federal mon-
eys to be handled differently.

    (j) The director of purchases may delegate authority to any state
agency to make purchases under certain prescribed conditions and pro-
cedures when the acquisition is funded, in whole or in part, from a grant.
Purchases made in compliance with such conditions and procedures shall
be exempt from other provisions of this section. As used in this subsection
the term ``grant'' means a disbursement made from federal or private
funds, or a combination of these sources, to a state agency.

    (k) The director of purchases shall prepare a detailed report at least
once each calendar quarter of all contracts for services, supplies, materials
or equipment entered into pursuant to subsection (h), (i) or (j) and submit
it to the legislative coordinating council, the chairperson of the committee
on ways and means of the senate, the chairperson of the committee on
appropriations of the house of representatives and the chairperson of the
Kansas performance review board.

    (h) (l) Except as otherwise specifically provided by law, no state
agency shall enter into any lease of real property without the prior ap-
proval of the secretary of administration. Such A state agency shall submit
to the secretary of administration such information relating to any such
proposed lease of real property as the secretary may require. The sec-
retary of administration shall either approve, modify and approve or reject
any such proposed lease.

    (i) (m) The director of purchases shall require all bidders on state
contracts to disclose all substantial interests held by the bidder in the
state.

    Sec. 28. K.S.A. 46-1604, 46-1701, 46-2101, 46-2102, 68-2003, 75-
2935, 75-3739, 75-4703, 75-4706, 75-4707, 75-4709, 75-4740, 75-4741,
75-4742, 75-4743, 75-4744, 75-5147, 75-6301 and 76-3,100 and K.S.A.
1997 Supp. 46-2201 and 65-34,154 are hereby repealed.

    Sec. 29. This act shall take effect and be in force from and after its
publication in the Kansas register.

I hereby certifiy that the above Bill originated in the
Senate, and passed that body

__________________________________

Senate concurred in
House amendments__________________________

__________________________________

President of the Senate.

__________________________________

Secretary of the Senate.

Passed the House
as amended __________________________

__________________________________

Speaker of the House.

__________________________________

Chief Clerk of the House.

Approved __________________________

__________________________________

Governor.