CHAPTER 9 HOUSE BILL No. 2662 An Act concerning the general bond law; relating to the sale of bonds; amending K.S.A.
1999 Supp. 10-106 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 1999 Supp. 10-106 is hereby amended to read as
follows: 10-106. (a) Municipal bonds shall be sold at public sale as follows:
The officers having charge of the sale of the bonds shall publish a notice
of the sale one time in a newspaper having general circulation in the
county where the bonds are issued and in the Kansas register. Such no-
tices shall be published not less than six days nor more than 30 days before
the sale and shall contain the following information: (1) Except as pro-
vided by subsection (b), the date, time and place at which a public auction
will be held or at which written sealed bids will be received and consid-
ered for the sale of the bonds for cash at such price as the municipality
may accept; (2) the date of issue, total par value and denomination of the
bonds being sold; (3) the dates and amounts of maturities of the bond
issues; (4) the dates on which interest on the bonds shall become due and
payable; (5) the place or places where and the approximate date on which
the bonds being sold will be delivered to the purchaser; (6) a statement
that a good faith deposit in the form of a certified or cashier's check or
surety bond in the amount of 2% of the total par value of the bonds being
sold shall accompany each bid or in the case of public sale at auction the
same shall be furnished by each bidder; (7) a statement disclosing whether
or not the purchaser of the bonds will be required to pay for the printing
thereof and whether or not and to what extent the purchaser of the bonds
will be required to pay the expense of legal services rendered to the
municipality in connection with the issuance of the bonds including the
fees of recognized bond counsel for an opinion as to legality of issuance;
(8) the assessed valuation of the municipality; and (9) the total bonded
indebtedness of the municipality as of the date on which the bonds being
sold are dated including the bonds submitted for bid. The rate of interest
may be omitted in advertising and the bidders requested to specify the
lowest interest rate or rates on the bonds at which they will pay the
purchase price.

      If sold at public sale with sealed written bids, purchasers shall submit
their bids in writing, sealed or sent by telefacsimile or other electronic
transmission, as set forth in the notice of sale, for all or any part of the
bonds, and. Each bid shall be accompanied by a certified or cashier's
check or surety bond for 2% of the total amount of the bid. In case any
purchaser, whose bid is accepted, fails to carry out the contract, the de-
posit shall be forfeited to the municipality issuing the bonds. Sealed Writ-
ten bids shall be opened disclosed publicly and tabulated or compared
only at the time and place specified in the notice. At the time and place
specified, the bonds shall be sold to the highest and best bidder or bid-
ders, and the bonds may be allotted among the bidders, however, any or
all bids may be rejected. No contract for the sale of the bonds shall be
made except on bids submitted as provided in this section. No bonds shall
be delivered to any purchaser until the amount of the bid is placed in the
hands of the officer in charge of the sale. The provisions of this section
relating to the public sale of bonds shall not apply to bonds secured solely
and only by revenues, bonds sold, pursuant to written agreement, to the
government of the United States of America or any bureau, department,
instrumentality or agency thereof, bonds issued pursuant to K.S.A. 10-
427 et seq., and amendments thereto, and all bonds of the same series or
which are issued simultaneously with such bonds and bond sales where
the total amount of the issue does not exceed $100,000. In such cases,
the bonds may be sold at public or private sale as the officers having
charge of the sale of such bonds determine. The practice of providing
more than one issue within a twelve-month period for any one project is
prohibited unless the project engineer or architect certifies that it is nec-
essary to do so for the orderly construction progress of the project.

      (b) As an alternative to providing notice of the date, time and place
of public auction or receipt of bids provided by subsection (a)(1), the
officers having charge of a bond sale may establish a time period of not
less than seven nor more than 30 days during which such bonds would
be sold. Notice of such sale period shall be published one time in a news-
paper having general circulation in the county where the bonds are issued
and in the Kansas register and shall be published not less than six days
nor more than 30 days before the beginning date of the sale period. The
notice shall contain the information specified in subsection (a) except that
in place of the time and date of sale, the notice shall specify the time
period during which the bonds would be sold and the manner in which
persons interested in submitting a bid may register for notice of the bond
sale. At least three business days prior to the time and date of the bond
sale, the officers having charge of the sale shall give notice to all persons
having registered for notice of the bond sale, and bids shall be submitted
and received and the sale made in the manner provided in subsection (a).

 Sec.  2. K.S.A. 1999 Supp. 10-106 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 15, 2000.
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