CHAPTER 152 Substitute for SENATE BILL No. 614 An  Act concerning the KAN-ED network; relating to funding thereof; amending K.S.A.
2001 Supp. 66-2010 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2001 Supp. 66-2010 is hereby amended to read as
follows: 66-2010. (a) The commission shall utilize a competitive bidding
process to select a neutral, competent and bonded third party to admin-
ister the KUSF.

      (b) The administrator shall be responsible for: (1) Collecting and au-
diting all relevant information from all qualifying telecommunications
public utilities, telecommunications carriers or wireless telecommunica-
tions service providers receiving funds from or providing funds to the
KUSF; (2) verifying, based on the calculations of each qualifying telecom-
munications carrier, telecommunications public utility or wireless tele-
communications service provider, the obligation of each such qualifying
carrier, utility or provider to generate the funds required by the KUSF;
(3) collecting all moneys due to the KUSF from all telecommunications
public utilities, telecommunications carriers and wireless telecommuni-
cations service providers in the state; and (4) distributing amounts on a
monthly basis due to qualifying telecommunications public utilities, wire-
less telecommunications service providers and telecommunications car-
riers receiving KUSF funding.

      (c) Any information made available or received by the administrator
from carriers, utilities or providers receiving funds from or providing
funds to the KUSF shall not be subject to any provisions of the Kansas
open records act and shall be considered confidential and proprietary.

      (d) The administrator shall be authorized to maintain an action to
collect any funds owed by any telecommunications carrier, public utility
or wireless telecommunications provider in the district court in the county
of the registered office of such carrier, utility or provider or, if such car-
rier, utility or provider does not have a registered office in the state, such
an action may be maintained in the county where such carrier's, utility's
or provider's principal office is located. If such carrier, utility or provider
has no principal office in the state, such an action may be maintained in
the district court of any county in which such carrier, utility or provider
provides service.

      (e) The KUSF administrator shall be responsible to ensure that funds
do not fall below the level necessary to pay all amounts collectively owed
to all qualifying telecommunications public utilities, wireless telecom-
munications service providers and telecommunications carriers. The ad-
ministrator shall have the authority to retain and invest in a prudent and
reasonable manner any excess funds collected in any period to help ensure
that adequate funds are available to cover amounts payable in other per-
iods.

      (f)  (1) Before October 1, 2002, the chief executive officer of the state
board of regents shall certify to the administrator of the KUSF the amount
provided by appropriation acts to be expended from the KAN-ED fund
created by K.S.A. 2001 Supp. 75-7225, and amendments thereto, for the
fiscal year ending June 30, 2003. Before October 1, 2003, the chief exec-
utive officer of the state board of regents shall certify to the administrator
of the KUSF the amount equal to twice the amount provided by appro-
priation acts to be expended from the KAN-ED fund for the fiscal year
ending June 30, 2003. Before July 1, 2004, and before July 1 of each year
thereafter, the chief executive officer of the state board of regents shall
certify to the administrator of the KUSF the amount provided by appro-
priation acts to be expended from the KAN-ED fund for the fiscal year
commencing the preceding July 1. Upon receipt of the certification of the
chief executive officer of the state board of regents, the KUSF administra-
tor shall add the amount certified to the amount annually required to
fund the KUSF as determined pursuant to subsection (b).

      (2) Commencing January 1, 2003, and until June 30, 2004, on or
before the 10th day of each month the administrator of the KUSF shall
pay from the KUSF to the state treasurer an amount equal to 1/6 of the
amount certified by the chief executive officer of the state board of regents
pursuant to subsection (f)(1) for the fiscal year ending June 30, 2003.
Commencing July 1, 2004, on or before the 10th day of each month, the
administrator of the KUSF shall pay from the KUSF to the state treasurer
1/12 of the amount certified by the chief executive officer of the state board
of regents pursuant to subsection (a) for the fiscal year preceding the fiscal
year in which the payment is made. Upon the receipt of the payment, the
state treasurer shall deposit the entire amount in the state treasury and
credit it to the KAN-ED fund. Any such payments shall be made after all
payments required by K.S.A. 2001 Supp. 66-2008, and amendments
thereto, for the month are made from the KUSF.

      (3) Amounts appropriated to be expended from the KAN-ED fund for
the fiscal year ending June 30, 2003, shall be based on a budget for only
six-months' operations. Amounts appropriated thereafter shall be based
on a budget for 12-months' operations.

      (4) Not more than $10,000,000 shall be paid from the KUSF to the
state treasurer pursuant to this subsection (f) in any one fiscal year.

      (5) The provisions of this subsection (f) shall expire on June 30, 2005.
Thereafter, state general fund moneys shall be used to fund the KAN-ED
network. 
Sec.  2. K.S.A. 2001 Supp. 66-2010 is hereby repealed.
 Sec.  3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 17, 2002.
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