Brief (1)
HB 2627 amends the state governmental ethics laws to add a prohibition for soliciting and receiving certain gifts and services by certain state employees; to prohibit legislators and others from accepting hospitality in the form of recreation of more than $100 annually; and, to add additional disclosure reporting requirements by lobbyists. The bill also requires state agency contracts for professional and consultant services (with certain exceptions) to be negotiated using procurement negotiating committees and makes state agency expenditure of grant moneys subject to competitive bid or negotiation. Finally, the bill creates the private attorney retention sunshine act.
Ethics and Lobbying. The bill prohibits all officers and employees of the Executive Branch of state government from soliciting or accepting anything of value in their official position. Current law imposes that prohibition on most, but not all, officers and employees of the Executive Branch. State officers who would be covered by the bill, but who are not covered under current law, are the Attorney General, Insurance Commissioner, Treasurer, Secretary of State, and most unclassified employees. The prohibition would not apply to the Legislative or Judicial Branches of state government.
The bill prohibits legislators, candidates for state office, or state officer elect from accepting hospitality in the form of recreation having an aggregate value of $100 or more in a calendar year. Under current law, there is no dollar limit for hospitality in the form of recreation. The bill also deletes language in current law that specifies that transportation or lodging is not considered part of recreation.
In addition to the current disclosure reporting requirements, the bill requires lobbyists who expend an aggregate $100 or more in a reporting period, to disclose the name of the legislator, member of the Judicial Branch of state government, and their employees who receive any gift, entertainment, or hospitality. The amount expended for any gift, entertainment, or hospitality also would have to be reported. Disclosure would not be required for meals if they are provided: from motivation by personal friends or family relations; at events to which all members of the Legislature and all members of the House or Senate; at public events attended as part of official business; or to a person for a reason other than that person's official position. Food such as soft drinks, coffee, and snack foods which are not part of a meal also would be excluded from the new reporting requirement.
In addition disclosure would not be required for expenditures of entertainment, hospitality in the form of recreation, food and beverages when all members of the Legislature, all members of a standing or joint committee, or all members of a legislative delegation when all members from a congressional district, have been invited if a notice of events has been published by Legislative Administrative Services.
Professional and Consultant Contracts. HB 2627 requires that all contracts for professional and consultant services shall be negotiated in accordance with the provisions of KSA 75-37,102 requiring procurement negotiating committees. This requirement shall not apply to any contract for professional or consultant services that the Director of Purchases determines meets one or more of the criteria established in subsections (a) and (h) of KSA 75-3739 (for example, when no competition exists and when the contract is with another state or local entity). When the Director of Purchases approves a contract for professional or consultant services, the Director may delegate authority to the agency to enter into the contract under conditions and procedures prescribed by the Director.
The above requirement shall not apply to any contract for professional or consultant services that is not anticipated to exceed $25,000 in any fiscal year. These smaller contracts shall be entered into by the state agency on the basis of competitive negotiations with at least two individuals or firms unless the head of that state agency determines that competitive negotiations are not in the best interest of the state. The agency head must make a report to the Director of Purchases at least once in each calendar quarter of each contract for professional or consultant services that exceeds $5,000 and is entered into without competitive negotiations. The Director of Purchases is required to prepare a detailed report at least once in each calendar quarter of each contract for professional or consultant services that exceeds $5,000 where competitive bids are not required and all contracts under $25,000 for professional or consultant services reported to the Director. The Director of Purchases shall submit the report to the Legislative Coordinating Council, the Chairperson of the Senate Ways and Means Committee, the Chairperson of the House Appropriations Committee, and the Chairperson of the Kansas Performance Review Board.
"Professional services" means services performed under a contract with an agency of the state by any of the following:
All contracts for architectural services, engineering services, construction management, or ancillary technical services entered into by an agency of the state shall be entered into in accordance with the applicable provisions of current law.
Grant Funds. If state agencies expend grant funds to purchase goods or services for which the state agency receives a direct service or a tangible asset, the procurement of those goods or services shall be subject to the competitive bids law, the negotiated contract law, or this bill.
Private Attorney Retention Sunshine Act. The bill creates the private attorney retention sunshine act which requires any contract of $7,500 or more between a state agency and an attorney or firm, to be conducted under the competitive bid process. The bill requires a state agency, under the competitive bid process, to select at least two qualified attorneys or firms based upon the attorneys' or firms' litigation experience, general expertise, and other relevant factors established by rules and regulations by the Secretary of Administration. The state agency would be required to select an attorney or firm which submits the lowest hourly rate bid or the total cost to provide such services.
The bill requires a state agency to submit a proposed contract greater than $1,000,000 to the Legislative Budget Committee prior to entering such contract. The Committee may hold public hearings concerning proposed changes and then submit those changes to the state agency. The state agency would be required to file a final contract with the Committee, taking into consideration the proposed changes. If the agency does not adopt the changes, then it would be required to submit a letter to the Committee explaining the reason for nonadoption of those changes. The state agency would be prohibited from entering into a contract until at least 45 days after its final contract submission to the Committee. If the Committee makes no changes or fails to report within 60 days after receiving the contract, then the state agency may enter into the contract.
The bill requires an attorney or firm working on a contract involving a contingency fee basis, to disclose the hours worked, expenses incurred, the aggregate fee amount, and an hourly rate.
The bill would prohibit a state agency to pay fees or expenses in excess of $1,000 per hour for legal services unless contracts for legal services are paid on a contingency fee basis.
Background
HB 2627, as introduced, was sponsored by the Governor's Office. A representative of the Governor presented testimony in support of the bill. The bill also was supported by the Secretary of State's Office, the Kansas Insurance Department, United We Stand America, and the League of Women Voters of Kansas. A representative of the Kansas Dental Association expressed some concerns to the Committee on the bill as introduced. Other conferees testifying on the bill included the Kansas Governmental Ethics Commission.
The House Committee amended the bill by clarifying which employees and officers would be subject to the receiving and soliciting prohibition, and by requiring lobbyists to report the value of each gift, entertainment, and hospitality provided to legislators, members of the Judicial Branch, and their employees. The Committee exempted reporting requirements for meals provided if all members of the Legislature were invited. The Committee also amended the bill by requiring disclosure requirements to include hospitality in the form of recreation as a reporting requirement and by deleting language in current law that specifies that transportation or lodging is not considered part of recreation.
The Senate Committee on Elections and Local Government amended the bill by exempting members of standing or joint committees or members of legislative delegations when all members from a Congressional district from lobbying disclosure requirements. The Committee also amended the bill by including provisions for bidding of professional and consulting contracts.
The Senate Committee of the Whole amended the bill by creating the private attorney retention sunshine act.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html