CHAPTER 212 HOUSE BILL No. 2119 An Act concerning public bodies; relating to procurement procedures used thereby; relating
to bids and bidding; amending K.S.A. 19-2881 and K.S.A. 2000 Supp. 10-106 and re-
pealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:

      New Section  1. (a) The director of purchases shall conduct a pilot
study utilizing the reverse auctioning electronic procurement process for
the purchase of selected goods or materials for one or more state agencies
in accordance with this section. The director of purchases shall adopt
policies and procedures for such pilot project in accordance with and
subject to the provisions of this section.

      (b) The provisions of K.S.A. 75-430, and amendments thereto, relat-
ing to advertisements in the Kansas register and the provisions of K.S.A.
75-3739 et seq., and amendments thereto, regarding procedures for
sealed bidding and the opening of bids shall not apply to bids or purchases
conducted under the pilot project utilizing the reverse auctioning elec-
tronic procurement process in accordance with this section. All bids sub-
mitted under the pilot project utilizing the reverse auctioning electronic
procurement process in accordance with this section shall be subject to
the open records act.

      (c) Reverse auctioning shall not be used for the acquisition of any
services for construction projects or for the acquisition of any other serv-
ices.

      (d) On or before January 15, 2002, and each six months thereafter,
the director of purchases shall submit a written report to the secretary of
the legislative coordinating council, the secretary of the senate and the
chief clerk of the house of representatives on the activities and results of
the pilot project utilizing the reverse auctioning electronic procurement
process under this section and make recommendations whether or not
the authority to use such procurement process should be continued be-
yond June 30, 2003. The director of purchases also shall notify each mem-
ber of the legislature of the availability of copies of such report.

      (e) Each year, the legislative post auditor shall conduct a performance
audit of the pilot project utilizing the reverse auctioning electronic pro-
curement process under this section and the activities of the division of
purchases in relation to such pilot project. In conducting such audit, the
post auditor shall include a determination of the applicable factors spec-
ified in subsection (b) of K.S.A. 74-7287, and amendments thereto, and
such other factors as may be directed by the legislative post audit com-
mittee. Such audit shall be conducted as soon after the close of the fiscal
year as practicable. Upon completion of such audit, the legislative post
audit committee shall review and accept such report.

      (f) As used in this section, ``reverse auctioning'' means a procurement
process following procedures approved by the director of purchases
where bidders are invited to bid on specific goods through real-time elec-
tronic bidding, with the award being made to the lowest responsible and
responsive bidder; during the bidding process, bidders' prices are re-
vealed and bidders shall have the opportunity to modify their bid prices
for the duration of the time period established for the bid opening.

      (g) The provisions of this section shall expire June 30, 2003.

      New Sec.  2. (a) The secretary of transportation is hereby authorized
to implement electronic submission of sealed bids as a procurement pro-
cess accessible by highway construction contractors and other qualified
contractors for highway projects. Prior to implementing such procure-
ment process, the secretary of transportation shall adopt any policies and
procedures which are necessary for the acceptance of sealed bids by elec-
tronic on-line submission.

      The secretary of transportation may adopt any rules and regulations
necessary to implement the provisions of this section.

      (b) The secretary of transportation shall not acquire any goods or
services through any process of reverse auctioning.

      (c) As used in this section, ``sealed bids'' may include a procurement
process following procedures approved by the secretary of transportation
in which bids are received electronically over the internet.

      Sec.  3. K.S.A. 2000 Supp. 10-106 is hereby amended to read as fol-
lows: 10-106. (a) Municipal bonds shall be sold at public notice 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
notices 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
provided by subsection (b), the date, time and place at which a public
notice auction will be held on such terms and conditions as shall be pro-
vided by the municipality or at which written bids will be received and
considered for the sale of the bonds for cash at such price as the munic-
ipality 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 at or prior to the time of sale 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 connec-
tion 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; (9) that bidders may be required to be qualified in a
manner established by the municipality before submitting a bid; and (9)
(10) 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 notice sale with 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. 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 deposit shall be
forfeited to the municipality issuing the bonds. Written Bids shall be
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 bidders, 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 notice 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 notice 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 un-
less the project engineer or architect certifies that it is necessary 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 notice 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.  4. K.S.A. 19-2881 is hereby amended to read as follows: 19-
2881. (a) Before the board of any park district created under K.S.A. 19-
2859 to 19-2880, inclusive, and amendments thereto, shall let any contract
for any improvement which is estimated to exceed $10,000 $20,000, the
board shall cause accurate detailed plans and specifications therefor, to-
gether with a detailed estimate, of the cost of same, to be made and filed
in the office of the secretary of such board. Before letting such contract,
the board shall advertise for bids to do such work in accordance with such
plans and specifications for at least one week in a newspaper of general
circulation in such district. Except as provided by subsection (b), the
purchase of materials, contracts for purchase or sale, lease contracts and
other contractual services which are estimated to exceed $10,000 $20,000,
shall be made upon competitive bids.

      All bids shall be made in writing and signed by the bidder, and pre-
sented. All bids shall be submitted or delivered by the bidder, or the
bidder's agent or attorney, to the board, at a meeting thereof, and or to
a designated representative of the board as specified in the bid notice.
The proceedings to open and consider bids shall be conducted at a time
and place specified in the bid notice. Such proceedings shall be open to
the public. All bids shall be considered and accepted or rejected imme-
diately after their submission by the board at a meeting thereof within 30
days of the opening of the bids. The board may reject any bids and shall
not accept a bid in excess of the estimated cost of the work, and a contract
let at a price in excess of the estimated cost of the work shall be void.

      (b) The district may enter into agreements with any public agency
for the purchase of materials, contracts for purchase or sale, lease con-
tracts and other contractual services through such governmental units
using the bidding procedure of such public agency.

      (c) When used in this section, ``public agency'' means any state or a
political or taxing subdivision thereof.

 Sec.  5. K.S.A. 19-2881 and K.S.A. 2000 Supp. 10-106 are hereby
repealed.

 Sec.  6. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved May 22, 2001.
 Published in the Kansas Register May 31, 2001.
__________