CHAPTER 42 HOUSE BILL No. 2320 An Act concerning port authorities; relating to the creation thereof; amending K.S.A. 12-3402 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 12-3402 is hereby amended to read as follows: 12-
3402. (a) It is the purpose of this act to promote, stimulate and develop
the general welfare, economic development and prosperity of the state
of Kansas by fostering the growth of intrastate and interstate commerce
within the state; to promote the advancement and retention of ports
within the state; to encourage and assist in the location of new business
and industry in this state and the expansion, relocation or retention of
existing business and industry when so doing will help maintain existing
levels of commerce within the state or increase the movement of com-
modities, goods and products produced, manufactured or grown within
or without the state through existing ports within the state or lead to the
development of new ports within the state; and to promote the economic
stability of the state by maintaining and providing employment opportu-
nities, thus promoting the general welfare of the citizens of this state, by
authorizing port authorities to be established in each city and in each
county of the state.

      A port authority shall be a public body corporate and politic which if
established shall be known as the ``port authority'' of the city or of the
county. Joint port authorities may be created under authority of this act
by cooperative agreement executed by the governing bodies of any city
or county or cities or counties. Such joint authorities formed by such
cooperative agreement shall have all the powers and jurisdiction enu-
merated in this act. Such creation shall be by ordinance or resolution and.
Except for port authorities created prior to April 1, 1981, none no port
authority shall be created without approval of the legislature by concur-
rent resolution. The authority shall not transact any business or exercise
powers hereunder until the passage of a concurrent resolution by the
legislature as hereinbefore provided.

      A cooperative agreement creating a joint port authority may be
amended by the governing bodies of the cities and counties which executed
such agreement. Any amendment to such a cooperative agreement, in-
cluding amendments which allow other cities located within counties
which are parties to the original agreement to join in such agreement,
shall not require approval by the legislature.

      No member of the authority shall serve as such who owns land, other
than a residence, or represents in a fiduciary capacity or as agent any
person who owns land surveyed or examined for port locations, except
that this prohibition shall not prevent a user of a port facility from serving
as a member of the authority.

      A port authority created hereunder may sue and be sued, plead and
be impleaded, subject to the limitations and other provisions of the Kan-
sas tort claims act. The exercise by such port authority of the powers
conferred upon it shall be deemed to be essential governmental functions
of the creating city or county.

      (b) Any city or county creating or participating in the creation of a
port authority in accordance with this act shall, before any taxes are levied
shall submit the question of whether an annual tax levy may be made on
the assessed taxable tangible property of such city, county, or a combi-
nation thereof, and the amount thereof to the electors of such city or
county comprising such authority. If a majority of those voting on the
question vote in favor of such tax levy, the same may be made for such
purpose and to pay a portion of the principal and interest on bonds issued
under the authority of K.S.A. 12-1774, and amendments thereto, by cities
located in the county, and otherwise such tax levy shall not be made. If
such tax levy is so approved, the authority may expend funds not otherwise
appropriated to defray the expense of surveys and examinations incidental
to the purposes of the port authority so created and may expend funds
for any of the purposes as set forth in K.S.A. 12-3406, and amendments
thereto.

      (c) Subject to making due provisions for payment and performance
of its obligations, a port authority may be dissolved by the city or county,
or combination thereof, comprising it, and in such event. If the port au-
thority is dissolved, the properties of the port authority shall be trans-
ferred to the subdivision comprising it, or, if comprised by more than one
city or county, to the city or county comprising it in such manner as may
be agreed upon by them. Obligations of the authority shall not be obli-
gations of the state of Kansas, nor of any city or county which creates the
authority, unless the obligations are specifically accepted approved by a
majority vote of the electors of such city or county voting on the issue.
Notice of such election shall be published in a newspaper of general
circulation in the county or counties once each week for two consecutive
weeks,. The first publication to shall be not less than 21 days prior to
such election. Such notice shall set forth the time and place of holding
the election and the issue which the vote is to determine.

      Sec.  2. K.S.A. 12-3402 is hereby repealed.

      Sec.  3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved March 30, 1999.
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