Kansas 2023 2023-2024 Regular Session

Kansas House Bill HB2336 Enrolled / Bill

Filed 04/24/2023

                    HOUSE BILL No. 2336
AN ACT concerning governmental property; relating to public construction and 
improvement projects; increasing the bonding authority for public airport authorities 
for projects up to $10,000,000; permitting bonding authority of more than 
$10,000,000 or in excess of the 1.85% statutory limitation based on assessed value of 
property within the county upon approval by the board of county commissioners; 
increasing the cost threshold for mandatory convening of a negotiating committee to 
obtain professional services for state construction projects; providing for an annual 
increase in such cost threshold based on the consumer price index; changing the 
measure of such cost threshold from "total project cost" to "construction cost"; 
amending K.S.A. 27-334, 75-1253 and 75-5804 and repealing the existing sections.
 Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 27-334 is hereby amended to read as follows: 
27-334. (a) The authority may issue its own general obligation bonds, 
revenue bonds and industrial revenue bonds as provided by this section.
(b) Prior to the issuance of general obligation bonds in an amount 
less than $1,000,000 $10,000,000, the board of directors of the 
authority shall adopt a resolution setting forth the principal amounts of 
and the purpose for which the bonds are to be issued, and shall cause 
the same such resolution to be published once each week for two 
consecutive weeks in the official county newspaper. If, within 30 days 
after the first publication of the resolution, a petition in opposition to 
the issuance of the bonds, signed by not less than 5% of the qualified 
electors of the county is filed with the county election officer, the board 
of directors shall submit the proposed issuance of general obligation 
bonds to the electors of the county in the manner provided in the 
general bond law. If a majority of the voters voting on the proposition 
at the election vote in favor of the issuance, the bonds may be issued by 
the authority.
The board of directors shall submit any resolution for a proposed 
issuance of general obligation bonds in an amount which that is equal 
to or which exceeds $1,000,000 $10,000,000 for approval at a primary 
or general election by the qualified electors of the county. The election 
shall be called and held or disapproval by the board of county 
commissioners. If the board of county commissioners disapproves the 
resolution of the authority, no further action shall be taken by the 
authority on the basis of such resolution. If the board of county 
commissioners approves the resolution of the authority, the board of 
directors of the authority may proceed to authorize and issue the 
general obligation bonds in the amount and for the purpose specified 
in such resolution. Following approval of the authority's resolution by 
the board of county commissioners, the authority shall cause the 
resolution to be published once each week for two consecutive weeks in 
the official county newspaper. If, within 30 days after the first 
publication of the resolution, a petition in opposition to the issuance of 
the bonds, signed by not less than 5% of the qualified electors of the 
county, is filed with the county election officer, the board of directors 
shall submit the proposed issuance of general obligation bonds to the 
electors of the county in the manner provided by the general bond law. 
If a majority of the voters voting on the question proposition at the 
election vote in favor thereof of the issuance, the bonds may be issued 
in the manner provided by the general bond law. Whenever an election 
has been called in which all of the qualified electors of the county are 
eligible to vote, the board also may submit for approval at such election 
any proposed issuance of general obligation bonds in an amount which 
is equal to or which exceeds $1,000,000 by the authority.
General obligation bonds of the authority shall not be issued in an 
amount in excess of 1.85% of the assessed valuation of all the taxable 
tangible property within the county as shown by the assessment books 
of the previous year, unless a resolution of the authority to exceed 
1.85% of the assessed value of all the taxable tangible property within 
the county as shown by the assessment books of the previous year for a 
general obligation bond issuance is approved by the board of county 
commissioners. If the board of county commissioners disapproves the 
resolution of the authority, no further action shall be taken by the 
authority on the basis of such resolution. If the board of county  HOUSE BILL No. 2336—page 2
commissioners approves the resolution of the authority, the board of 
directors of the authority may proceed to authorize and issue the 
general obligation bonds in the amount and for the purpose specified 
in such resolution. Following approval of the resolution of the 
authority by the board of county commissioners, the authority shall 
cause the resolution to be published once each week for two 
consecutive weeks in the official county newspaper. If, within 30 days 
after the first publication of the resolution, a petition in opposition to 
the issuance of the bonds, signed by not less than 5% of the qualified 
electors of the county is filed with the county election officer, the board 
of directors shall submit the proposed issuance of general obligation 
bonds to the electors of the county in the manner provided in the 
general bond law. If a majority of the voters voting on the proposition 
at the election vote in favor of the issuance, the bonds may be issued by 
the authority. The general obligation bonds of the authority shall be 
authorized, issued, registered and sold in the manner provided by the 
general bond law and shall bear interest at a rate not to exceed the 
maximum rate prescribed by K.S.A. 10-1009, and amendments thereto. 
The full faith and credit of the authority shall be pledged to the 
payment of the general obligation bonds of the authority. The general 
obligation bonds of the authority shall not constitute a debt or 
obligation of the city or county.
(c) The authority may issue revenue bonds from time to time for 
the purpose of purchasing, constructing or otherwise acquiring, 
repairing, extending or improving any property or facility of the 
authority and may pledge to the payment of the revenue bonds, both 
principal and interest, any rental, rates, fees or charges derived or to be 
derived by the authority from property or facilities owned or operated 
by it. The revenue bonds of the authority shall mature not later than 35 
years after the date of issuance. The revenue bonds shall bear interest at 
a rate not exceeding the maximum rate of interest prescribed by K.S.A. 
10-1009, and amendments thereto. The bonds and any interest coupons 
shall be negotiable. The bonds shall contain recitals stating the 
authority under which the bonds are issued, that they are issued in 
conformity with the provisions, restrictions and limitations of the 
authority and that the bonds and interest thereon shall be paid by the 
issuing authority from any rental, rates, fees or charges derived or to be 
derived by the authority from property or facilities owned or operated 
by it and not from any other fund or source. The bonds shall be 
registered in the office of the secretary or clerk of the authority issuing 
the bonds.
(d) The authority may issue the industrial revenue bonds of the 
authority in the manner provided by K.S.A. 12-1740 to through 12-
1749, inclusive, and amendments thereto, and any other applicable 
provisions of law.
(e) The board of directors may, on its own initiative, submit any 
proposed issuance of bonds for approval, by the qualified electors of 
the county at a primary or general election. Such election shall be 
otherwise called and held in the manner provided by the general bond 
law. Whenever an election has been called in which all the qualified 
electors of the county are eligible to vote, the board also may submit 
the question of issuing such bonds for approval at such election.
Sec. 2. K.S.A. 75-1253 is hereby amended to read as follows: 75-
1253. (a) (1) Whenever it becomes necessary in the judgment of the 
secretary of administration or in any case when the total construction 
cost of a project for the construction of a building or for major repairs 
or improvements to a building for a state agency is expected to exceed 
$1,000,000 the amount specified in paragraph (2), the secretary of 
administration shall convene a negotiating committee. The state 
building advisory commission shall prepare a list of at least three and 
but not more than five firms which that are, in the opinion of the state 
building advisory commission, qualified to serve as project architect, 
engineer or land surveyor for the project. Such list shall be submitted to 
the negotiating committee, without any recommendation of preference  HOUSE BILL No. 2336—page 3
or other recommendation.
(2) The construction cost threshold to convene a negotiating 
committee as provided by paragraph (1) shall be $1,500,000 for fiscal 
year 2024. For fiscal year 2025, and all fiscal years thereafter, the 
threshold to convene a negotiating committee shall be the threshold 
amount for the immediately preceding fiscal year increased by an 
amount equal to the percentage increase in the consumer price index 
for all urban consumers as published by the bureau of labor statistics 
of the United States department of labor during the immediately 
preceding fiscal year rounded to the nearest whole dollar amount.
(b) The secretary of administration may combine two or more 
separate projects for the construction of buildings or for major repairs 
or improvements to buildings for state agencies, for the purpose of 
procuring architectural, engineering or land surveying services for all 
such projects from a single firm. In each case, the combined projects 
shall be construed to be a single project for all purposes under the 
provisions of K.S.A. 75-1250 through 75-1267, and amendments 
thereto.
(c) (1) This section shall not apply to any repetitive project with a 
standard plan that was originally designed by the secretary of 
administration or an agency architect pursuant to K.S.A. 75-1254(a)(2) 
and (3), and amendments thereto. In such a case, the secretary of 
administration or the agency architect may provide architectural 
services for the repetitive project.
(2) "Repetitive project" means a project which that uses the same 
standard design as was used for a project constructed previously, 
including, but not limited to, sub-area shops and salt domes of the 
department of transportation and showers and toilet buildings of the 
Kansas department of wildlife, and parks and tourism. The plans for the 
project may be modified as required for current codes, operational 
needs or cost control. The total floor area of the project may be 
increased by an area of not more than 25% of the floor area of the 
originally constructed project, except that not more than 25% of the 
linear feet of the exterior and interior walls may be moved for such 
increase. A project shall not be considered to be repetitive if it has been 
over four years between the substantial completion of the last project 
using the design plans and the appropriation of funds for the proposed 
project.
Sec. 3. K.S.A. 75-5804 is hereby amended to read as follows: 75-
5804. (a) (1) Whenever it becomes necessary in the judgment of the 
agency head of a state agency for which a project is proposed and, in 
any case where the total construction cost of such a proposed project is 
expected to exceed $500,000 the amount specified in paragraph (2), 
the agency head shall convene a negotiating committee. Except as 
otherwise provided in subsection (b), the agency head shall submit the 
list of at least three and but not more than five of the most highly 
qualified firms to the negotiating committee so convened, without any 
recommendation of preference or other recommendation.
(2) The construction cost threshold to convene a negotiating 
committee as provided by paragraph (1) shall be $1,500,000 for fiscal 
year 2024. For fiscal year 2025, and all fiscal years thereafter, the 
threshold to convene a negotiating committee shall be the threshold 
amount for the immediately preceding fiscal year increased by an 
amount equal to the percentage increase in the consumer price index 
for all urban consumers as published by the bureau of labor statistics 
of the United States department of labor during the immediately 
preceding fiscal year rounded to the nearest whole dollar amount.
(b) Whenever a negotiating committee is convened under this 
section for a proposed project requiring engineering or land surveying 
services which that concerns the construction of any building or facility 
or any major repairs or improvements to any building or facility, 
including but not limited, to any heating, cooling or power facility, for a 
state agency, the agency head for the state agency shall notify the state 
building advisory commission of the project and shall request a list of  HOUSE BILL No. 2336—page 4
firms qualified to provide the engineering or land surveying services 
for the proposed project. Upon receipt of any such request the state 
building advisory commission shall evaluate the current statements of 
qualifications and performance data on file, together with those 
statements that may be submitted by other firms regarding the proposed 
project and other information developed and available to the state 
building advisory commission. The commission shall prepare a list of 
at least three and but not more than five firms which that, in the opinion 
of the state building advisory commission, are qualified to furnish the 
engineering or land surveying services for the proposed project. Each 
such list shall be submitted to the negotiating committee so convened 
without any recommendation of preference or other recommendation.
Sec. 4. K.S.A. 27-334, 75-1253 and 75-5804 are hereby repealed.
Sec. 5. This act shall take effect and be in force from and after its 
publication in the statute book.
I hereby certify that the above BILL originated in the 
HOUSE, and was adopted by that body
                                                                            
HOUSE adopted
Conference Committee Report                                                     
                                                                               
Speaker of the House.          
                                                                               
Chief Clerk of the House.     
Passed the SENATE
          as amended                                                      
SENATE adopted
Conference Committee Report                                                             
                                                                               
President of the Senate.       
                                                                               
Secretary of the Senate.       
APPROVED                                                                 
     
                                                                                                              
Governor.