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AN ACT concerning the Kansas development finance authority; relating
  to the board of directors thereof; amending K.S.A. 1996 Supp. 74-
  8903 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 1996 Supp. 74-8903 is hereby amended to read as
follows: 74-8903. (a) There is hereby created, with such duties and powers
as are hereinafter set forth to carry out the provisions of this act, a public
body politic and corporate, with corporate succession, to be an inde-
pendent instrumentality of this state exercising essential public functions,
and to be known as the Kansas development finance authority.
  (b)  The board of directors of the authority shall consist of the sec-
retary of the department of commerce and housing and four five mem-
bers to be appointed by the governor. Not less than three voting members
of such board shall be representative of the general public and not more
than three voting members shall be members of the same political party.
  (c)  Members appointed by the governor shall be subject to confir-
mation by the senate as provided by K.S.A. 75-4315b, and amendments
thereto. Except as provided by K.S.A. 1996 Supp. 46-2601, and amend-
ments thereto, no person appointed to the board, whose appointment is
subject to confirmation shall exercise any power, duty or function as a
member of the authority until confirmed by the senate. Except as pro-
vided by subsection (d), such members shall serve for terms of four years
and until their successors are appointed and confirmed. Any vacancy in
the board occurring other than by expiration of term shall be filled by the
appointment of the governor, but for the unexpired term only.
  (d)  The terms of members who are appointed by the governor and
who are serving on the authority on the effective date of this act shall
expire on January 15, of the year in which such member's term would
have expired under the provisions of this section prior to amendment by
this act. Thereafter, members shall be appointed for terms of four years
and until their successors are appointed and confirmed.
  (e)  The governor shall designate the chairperson and vice-chairper-
son of the board from the members of such board.
  (f)  The authority shall have such rights, powers and privileges and
shall be subject to such duties as provided by this act.
  (g)  The governor shall appoint a president who shall serve at the will
of the governor. The president shall appoint and employ such additional
officers, accountants, financial advisors or experts, bond counsel or other
attorneys, agents and employees as it may require and shall determine
their qualifications, duties and compensation subject to the approval of
the board of directors. The president shall be an ex officio nonvoting
member of the board and may be elected secretary of the board. The
powers of the authority shall be vested in the members of the board of
directors and three members of the board shall constitute a quorum at
any meeting thereof. Action may be taken and motions and resolutions
adopted by the board at any meeting thereof by the affirmative vote of a
majority of present and voting board members. Any motion and resolution
to authorize an issue of bonds, to approve a loan application, to authorize
a lease transaction or to approve a bond guaranty shall have the affirmative
vote of at least three board members.
  (h)  Before the issuance of any bonds, each member of the board of
directors of the authority shall execute a surety bond in the penal sum of
$250,000 and the president of the authority shall execute a surety bond
in the penal sum of $250,000, each surety bond to be conditioned upon
the faithful performance of the duties of the office by such board member
or president, as the case may be, to be executed by a surety company
authorized to transact business in the state of Kansas, as surety, and to
be approved by the attorney general. At all times after the issuance of
any bonds by the authority, each member of the board of directors of the
authority shall maintain such surety bonds in full force and effect. All
costs of such surety bonds shall be borne by the authority.
  (i)  The members of the board of directors of the authority shall serve
without compensation, but the authority may reimburse its board mem-
bers for mileage and subsistence expenses incurred in the discharge of
their official duties as provided by subsections (b) and (c) of K.S.A. 75-
3223, and amendments thereto.
  (j)  No part of the funds of the authority shall inure to the benefit of,
or be distributed to, its employees, officers or board of directors, except
that the authority shall be authorized and empowered to pay its employ-
ees reasonable compensation.
  (k)  The authority may be dissolved by act of the legislature on con-
dition that the authority has no debts or obligations outstanding or pro-
vision has been made for the payment or retirement of such debts or
obligations. Upon any such dissolution of the authority, all property, funds
and assets thereof shall be vested in the state.
  Sec. 2.  K.S.A. 1996 Supp. 74-8903 is hereby repealed.
  Sec. 3.  This act shall take effect and be in force from and after its
publication in the statute book.