As Amended by House Committee
         
Session of 1999
         
SENATE BILL No. 56
         
By Committee on Federal and State Affairs
         
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10             AN  ACT concerning the university of Kansas hospital authority; relating
11             to members thereof certain boards and commissions; relating to
12             the terms of the members thereof; amending K.S.A. 1998 Supp.
13             74-9902 and 76-3304 and repealing the existing section sections.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             Section  1. K.S.A. 1998 Supp. 74-9902 is hereby amended to
17       read as follows: 74-9902. (a) The advisory commission shall consist
18       of seven members. The membership of the advisory commission
19       shall include: (a) (1) One member appointed by the president of
20       the senate; (b) (2) one member appointed by the minority leader
21       of the senate; (c) (3) one member appointed by the speaker of the
22       house of representatives; (d) (4) one member appointed by the mi-
23       nority leader of the house of representatives; and (e) (5) three
24       members appointed by the governor. The terms of members ap-
25       pointed prior to July 1, 1999, shall expire June 30, 2000.
26             (b) At the expiration of terms in the year 2000: (1) Members ap-
27       pointed by the president of the senate and the minority leader of the senate
28       shall be appointed for terms of three years; (2) members appointed by the
29       speaker of the house of representatives and the minority leader of the
30       house of representatives shall be appointed for terms of two years; and
31       (3) members appointed by the governor shall be appointed for terms of
32       one year. Thereafter, members shall be appointed for terms of three years
33       and until a successor is appointed and qualified.
34             (c) No more than four members shall be members of the same
35       political party. Each congressional district in the state of Kansas
36       shall be represented on the advisory commission by at least one
37       member who is a resident of the district at the time of appointment.
38       Appointing authorities shall consult each other to assure effectua-
39       tion of the foregoing requirement. A person appointed to fill a va-
40       cancy which occurs prior to the expiration of a term shall be ap-
41       pointed for the unexpired term. Except as provided by this section,
42       each member of the commission shall be appointed for a three-
43       year term and until a successor is appointed and qualified.

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  1             Section  1. 2. K.S.A. 1998 Supp. 76-3304 is hereby amended to read
  2       as follows: 76-3304. (a) There is hereby established a body politic and
  3       corporate, with corporate succession, to be known as the university of
  4       Kansas hospital authority. The authority is hereby established as shall be
  5       an independent instrumentality of this state. Its exercise of the rights,
  6       powers and privileges conferred by this act shall be deemed and held to
  7       be the performance of an essential governmental function.
  8             (b) The authority shall be governed by a fourteen-member board of
  9       directors. Eight of the members shall be representatives of the general
10       public who are recognized for outstanding knowledge and leadership in
11       the fields of finance, business, health-care management, health care pro-
12       viders, legal affairs, education or government. Of the eight members rep-
13       resenting the general public, there shall be at least one member from
14       each congressional district. Three members shall be ex officio voting
15       members consisting of the chancellor of the university of Kansas, the
16       executive vice chancellor of the university of Kansas medical center and,
17       the executive dean of the university of Kansas school of medicine. Three
18       members shall be nonvoting ex officio members consisting of, the chief
19       of staff of the university of Kansas hospital medical staff, the president of
20       the authority and the dean of the university of Kansas school of nursing.
21             (c) The eight members representing the general public appointed to
22       the initial board shall be appointed by the governor subject to senate
23       confirmation as provided in K.S.A. 75-4315b, and amendments thereto.
24       Any member whose nomination is subject to confirmation during a reg-
25       ular session of the legislature shall be deemed terminated when the senate
26       rejects the nomination. No such termination shall affect the validity of
27       any action taken by such member prior to such termination. Of the eight
28       members appointed to the initial board, two shall be members of the
29       Kansas board of regents and two members shall be members of the Kan-
30       sas legislature. The two legislative appointees shall be appointed by the
31       governor from a panel of four nominees composed of (1) one member of
32       the legislature nominated by the speaker of the house of representatives,
33       (2) one member of the legislature nominated by the minority leader of
34       the house of representatives, (3) one member of the legislature nomi-
35       nated by the president of the senate, and (4) one member of the legis-
36       lature nominated by the minority leader of the senate.
37             (d) Of the members appointed to the initial board by the governor,
38       two members shall be appointed for a term of one year which expires
39       March 15, 1999, three members shall be appointed for a term of two
40       years which expires March 15, 2000, and three members shall be ap-
41       pointed for a term of three years which expires March 15, 2001.
42             (e) After the initial board of directors is appointed, members other
43       than ex officio shall be appointed for a term of three years each, except

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  1       in the event of a vacancy the appointment shall be for the remainder of
  2       the unexpired portion of the term. Each member shall hold office for the
  3       term of appointment and until the successor has been nominated and
  4       approved confirmed. Any member is eligible for reappointment, but
  5       members shall not be eligible to serve more than two consecutive three-
  6       year terms.
  7             (f) Except for appointment of the initial board, when a vacancy occurs
  8       or is announced regarding a member or members representing the gen-
  9       eral public, a nominating committee of the board shall forward a slate of
10       candidates to the governor for consideration. Appointment to the board
11       shall be made by the governor subject to senate confirmation as provided
12       in K.S.A. 75-4315b, and amendments thereto. Except as provided by
13       K.S.A. 1998 Supp. 46-2601, and amendments thereto, no person ap-
14       pointed to the board shall exercise any power, duty or function as a mem-
15       ber of the board until confirmed by the senate.
16             (g) The terms of members serving by virtue of their office shall expire
17       immediately upon termination of their holding such office.
18             (h) The board shall annually shall elect one of their number as chair-
19       person and another as vice-chairperson. The board shall also shall elect
20       a secretary and treasurer for terms determined by the board. The same
21       person may serve as both secretary and treasurer. The board shall estab-
22       lish an executive committee, nominating committee and other standing
23       or special committees and prescribe their duties and powers, and any
24       executive committee may exercise all such powers and duties of the board
25       as the board may delegate.
26             (i) Members of the board of directors of the authority shall serve
27       without compensation. Members of the board attending meetings of the
28       board, or attending a subcommittee meeting thereof authorized by the
29       board, shall be paid subsistence allowances, mileage and other expenses
30       as provided in K.S.A. 75-3223, and amendments thereto.
31             (j) No part of the funds of the authority shall inure to the benefit of,
32       or be distributed to, its employees, officers or members of the board,
33       except that the authority may make reasonable payments for expenses
34       incurred on its behalf relating to any of its lawful purposes and the au-
35       thority shall be authorized and empowered to pay reasonable compen-
36       sation for services rendered to or for its benefit relating to any of its lawful
37       purposes including to pay its employees reasonable compensation.
38             (k) Any member of the board of directors other than an ex officio
39       member may be removed by an affirmative vote of seven of the members
40       of the board for malfeasance or misfeasance in office, failure to regularly
41       failing to attend meetings, or for any cause which renders said the mem-
42       ber incapable of or unfit to discharge the duties of director.
43             (l) The board shall meet at least six times per year and at such other

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  1       times as it deems appropriate, or upon call by the president or the chair-
  2       person, or upon written request of a majority of the directors. The board
  3       may adopt, repeal and amend such rules, procedures and bylaws, not
  4       contrary to law or inconsistent with this act, as it deems expedient for its
  5       own governance and for the governance and management of the author-
  6       ity. A majority of the total voting membership of the board shall constitute
  7       a quorum for meetings, and. The board may act by a majority of those at
  8       any meeting where a quorum is present, except upon such issues as the
  9       board may determine shall require a vote of seven members for approval.
10       The initial board shall meet for the initial meeting upon call by the chan-
11       cellor of the university of Kansas who shall act as temporary chairperson
12       until officers of the board are elected pursuant to subsection (h).
13             (m) The board shall appoint a president who shall serve at the plea-
14       sure of the board. The president shall serve as the chief executive officer
15       of the authority. The president's salary shall be set by the board. The
16       board may negotiate and enter into an employment agreement with the
17       individual selected as president of the authority which may provide for
18       compensation allowances, benefits and expenses as may be included in
19       such agreement. The president shall direct and supervise administrative
20       affairs and the general management of the authority. The president shall
21       be a nonvoting ex officio member of the board.
22             (n) The board may provide to the president of the authority and other
23       employees designated by the board supplemental benefits in addition to
24       the benefits provided in K.S.A. 1998 Supp. 76-3322, and amendments
25       thereto.
26             (o) The authority shall continue until terminated by law, except that
27       no such law shall take effect so long as the authority has bonds outstand-
28       ing, unless adequate provision has been made for the payment or retire-
29       ment of such debts or obligations. Upon any such dissolution of the au-
30       thority, all property, funds and assets thereof shall be vested in the state,
31       university of Kansas medical center or other hospital entity as designated
32       by the board and approved by act of the Kansas legislature. 
33       Sec.  2. 3. K.S.A. 1998 Supp. 76-3304 is 74-9902 and 76-3304 are
34       hereby repealed.
35        Sec.  3. 4. This act shall take effect and be in force from and after its
36       publication in the Kansas register.