CHAPTER 94 HOUSE BILL No. 2747 An  Act relating to port authorities; amending K.S.A. 12-3402 and 12-3420 and repealing the existing sections. 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.
Except for port authorities created prior to April 1, 1981, no port authority
shall be created without approval of the legislature by concurrent reso-
lution. 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 exe-
cuted such agreement comprise such port authority. Any amendment to
such a cooperative agreement, including 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 may sue and be sued, plead and be impleaded, subject
to the limitations and other provisions of the Kansas 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, 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 combination 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 oth-
erwise such tax levy shall not be made. If such tax levy is 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 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. If the port authority is dissolved,
the properties of the port authority shall be transferred 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 obligations of the state of
Kansas, nor of any city or county which creates the authority, unless the
obligations are specifically 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 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. 12-3420 is hereby amended to read as follows: 12-
3420. The board of directors of a port authority may issue bonds here-
under for the purpose of refunding any bonds or other obligations of the
port authority theretofore issued pursuant to this act; or it may authorize
a single issue of bonds hereunder for the purpose in part of refunding
such previous obligations and in part for the purchasing, acquiring, con-
structing, reconstructing, improving, equipping, repairing, enlarging and
remodeling facilities of such port authority. The port authority shall not
issue such refunding bonds without first having received approval, by
resolution, of the governing body of the cities or counties which created
comprise such port authority.

      Where bonds are issued under this section solely for refunding pur-
poses, such bonds either may be sold as provided in K.S.A. 12-3428, and
amendments thereto, or may be exchanged for outstanding obligations.
If sold, the proceeds either may be applied to payment of obligations
refunded or may be deposited in escrow for the retirement thereof. All
refunding bonds issued under this section shall in all respects be author-
ized, issued and secured in the manner provided for other bonds issued
under this act and shall have all attributes of such bonds. Except as oth-
erwise provided in this section, all refunding bonds issued hereunder shall
be issued in the manner prescribed by and subject to the provisions of
K.S.A. 10-116a, and amendments thereto. The board of directors may
provide that any such refunding bonds shall have the same priority of lien
on the revenues pledged for their payment as was provided for obligations
refunded thereby. 
Sec.  3. K.S.A. 12-3402 and 12-3420 are hereby repealed.
 Sec.  4. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 24, 2002.
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