----------------------------------------------------------------------------


AN ACT concerning state agencies; relating to purchases of goods and
  services; amending K.S.A. 1996 Supp. 75-3739 and repealing the ex-
  isting section.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 1996 Supp. 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:
  (1)  For contractual services, supplies, material 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 using state agency, not seeking competitive bids is in the best in-
terest of the state.
  When the director approves a purchase under the provisions of one of
the paragraphs (1) through (7) of this subsection, the director may dele-
gate authority to make the purchase under conditions and procedures
prescribed by the director of purchases.
  The director of purchases shall make a detailed report at least once in
each calendar quarter to the legislative coordinating council and the chair-
persons 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 entered into with-
out competitive bids under subsections (a)(1), (a)(2), (a)(3) or (g) of all
contracts over $5,000 entered into without competitive bids under para-
graphs (1), (2), (3), (5), (6) or (7) of this subsection. The director shall
submit the report to the legislative coordinating council and the chair-
persons of the senate committee on ways and means and the house of
representatives committee on appropriations.
  (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 bids. The director of pur-
chases may waive this publication of notice requirement when the direc-
tor 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 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, excluding
weekends and holidays, 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 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 of all instances in which the director waived publication of the notice
of bid solicitations in the Kansas register have been waived under this
subsection. The director shall submit the report to the legislative coordi-
nating council and the chairpersons of the senate committee on ways and
means and the house of representatives committee on appropriations.
  (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 sealed bids, telephone facsimile or sealed
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 a 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 appro-
priations of all current and existing delegations of authority to state agen-
cies under this subsection to state agencies. The director shall submit the
report to the legislative coordinating council and the chairpersons of the
senate committee on ways and means and the house of representatives
committee on appropriations.
  (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 may authorize state agencies to
  (h)  Any state agency may 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 non-
profit educational 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, 75-3740 and 75-3740a and amend-
ments thereto.
  (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,
``grant'' means a disbursement made from federal or private funds, or a
combination of these sources, to a state agency.
  (h) (k)  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 state agency shall submit
to the secretary of administration such any information relating to any
such a proposed lease as the secretary may require. The secretary of
administration shall either shall approve, modify and approve or reject
any such proposed lease.
  (i) (l)  The director of purchases shall require all bidders on state con-
tracts to disclose all substantial interests held by the bidder in the state.
  Sec. 2.  K.S.A. 1996 Supp. 75-3739 is hereby repealed.
  Sec. 3.  This act shall take effect and be in force from and after its
publication in the statute book.