KS
Kansas Senate Bill SB464

Kansas 2023-2024 Regular Session

Kansas Senate Bill SB464 Compare Versions

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11 Session of 2024
22 SENATE BILL No. 464
33 By Senator Faust Goudeau
44 2-6
55 AN ACT creating the Kansas minority, woman, disadvantaged and
66 service-disabled veteran small business enterprise development act;
77 providing for development of such business enterprises through a
88 program to facilitate and increase participation by such business
99 enterprises in providing goods and services to state agencies and
1010 postsecondary educational institutions; establishing the office of
1111 minority and women business development within the department of
1212 commerce to develop such program and assist state agencies and
1313 postsecondary educational institutions to establish plans and goals for
1414 such participation; providing for an advisory committee on certified
1515 small business enterprises that may be established by the assistant
1616 director of such office; authorizing the adoption of rules and
1717 regulations; providing for penalties for violations of the provisions of
1818 the act or rules and regulations adopted pursuant to the act.
1919 Be it enacted by the Legislature of the State of Kansas:
2020 Section 1. Sections 1 through 12, and amendments thereto, shall be
2121 known and may be cited as the Kansas minority, woman, disadvantaged
2222 and service-disabled veteran small business enterprise development act.
2323 Sec. 2. As used in this act:
2424 (a) "Affiliate or division of a larger business" or "affiliate" means two
2525 or more business entities or concerns in which one controls or has the
2626 power to control the other. "Affiliate" status shall be determined by the
2727 assistant director upon consideration of the factors set forth by the small
2828 business administration in 13 C.F.R. § 121.103.
2929 (b) "Airport concession disadvantaged business enterprise" means a
3030 concession that:
3131 (1) Is at least 51%-owned by one or more individuals who are United
3232 States citizens or lawful permanent residents and who are both socially and
3333 economically disadvantaged or, if organized as a corporation, at least 51%
3434 of the stock is owned by one or more such individuals;
3535 (2)  has management and daily business operations controlled by one
3636 or more of such socially and economically disadvantaged individuals
3737 specified in paragraph (1);
3838 (3) meets United States department of transportation size standards
3939 for a small business eligible to be certified as an airport concession
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7676 disadvantaged business enterprise pursuant to 49 C.F.R. § 23.33, including
7777 size standards applicable to any affiliate;
7878 (4) is an independent and viable for-profit business as determined by
7979 the assistant director;
8080 (5) has a real and substantial presence in Kansas;
8181 (6) is a small business;
8282 (7) performs a commercially useful function; and
8383 (8) is certified as an "airport concession disadvantaged business
8484 enterprise" by the assistant director or the office of civil rights within the
8585 Kansas department of transportation.
8686 (c) ''Assistant director'' means the assistant director for minority and
8787 women business development of the office of minority and women
8888 business development of the department of commerce established pursuant
8989 to K.S.A. 74-5010a, and amendments thereto.
9090 (d) ''Broker'' means a person that provides bona fide professional,
9191 technical, consultant, brokerage or managerial services and assistance in
9292 the procurement of essential personnel, facilities, equipment, materials or
9393 supplies required for performance of a contract.
9494 (e) "Certified small business enterprise" means an airport concession
9595 disadvantaged business enterprise, minority business enterprise, woman
9696 business enterprise, disadvantaged business enterprise or service-disabled
9797 veteran-owned business enterprise.
9898 (f) "Commercially useful function" means real and actual services
9999 that are a distinct and verifiable element of the contracted work based
100100 upon private sector trade or industry standards.
101101 (g) ''Committee'' means the advisory committee on certified small
102102 business enterprises that may be established by the assistant director as
103103 provided by this act.
104104 (h) "Concession" means one or more of the following types of for-
105105 profit businesses:
106106 (1) A business located at an airport or that has a facility at an airport
107107 that is engaged in the sale of consumer goods or services to the public
108108 pursuant to an agreement with the recipient, another concessionaire or the
109109 owner or lessee of a terminal if other than the recipient; or
110110 (2) a business conducting one or more of the following covered
111111 activities, even if it does not maintain an office, store or other business
112112 location at an airport, if the business:
113113 (A) Manages contracts and subcontracts for goods or services for the
114114 airport;
115115 (B) is a web-based or other electronic business with service locations
116116 at an airport terminal or that provides services that the public can access at
117117 the terminal;
118118 (C) is an advertising business that provides advertising displays or
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162162 messages to the public at the airport; or
163163 (D) is a business that provides goods and services to concessionaires
164164 that are located at the airport.
165165 (i) "Contractor utilization plan" means a statement, in a form
166166 prescribed by the assistant director, that must be submitted in a bid or
167167 proposal for a performance contract that states a plan to utilize qualified
168168 certified small business enterprises in the performance contract.
169169 (j) "Control" means having day-to-day decision-making authority as
170170 measured by:
171171 (1) Voting power;
172172 (2) officer and director votes;
173173 (3) ability to bind the business entity;
174174 (4) financial authority;
175175 (5) shared officers and directors; or
176176 (6) having more than 20% of the small business contracts directly or
177177 indirectly attributable to the affiliate or any combination thereof.
178178 (k) "Disadvantaged business enterprise" means a for-profit small
179179 business concern that:
180180 (1) Is at least 51%-owned, managed and independently controlled by
181181 one or more individuals who are United States citizens or lawful
182182 permanent residents and who are socially and economically
183183 disadvantaged;
184184 (2) meets United States department of transportation size standards
185185 for a small business eligible to be certified as a disadvantaged business
186186 enterprise pursuant to 13 C.F.R. part 121 and that does not exceed the cap
187187 on average annual gross receipts specified in 49 C.F.R. § 26.65(b) and as
188188 provided by 49 C.F.R. § 26.5.
189189 (3) is an independent and viable for-profit business as determined by
190190 the assistant director;
191191 (4) has a real and substantial presence in Kansas;
192192 (5) is a small business;
193193 (6) performs a commercially useful function; and
194194 (7) is certified as a "disadvantaged business enterprise" by the
195195 assistant director or the office of civil rights of the Kansas department of
196196 transportation.
197197 (l) ''Goals'' means annual overall agency goals, expressed as a
198198 percentage of dollar volume, for participation by certified small business
199199 enterprises. "Goals" shall not be construed as minimum goals or quotas for
200200 any particular contract or for any particular geographical area.
201201 (m) "Good faith efforts" are efforts that, given all relevant
202202 circumstances, the proposed bidder or potential contract recipient
203203 documents as evidence of intent to meet the prescribed objectives of the
204204 contract or modified objectives of the contract if the proposed bidder or
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248248 potential contract recipient submits evidence establishing why such
249249 objectives should be modified to reflect availability or lack thereof in the
250250 scope of work.
251251 (n) ''Goods or services'' includes professional services and all other
252252 goods and services.
253253 (o) "Minority" means a person who is a citizen or lawful permanent
254254 resident of the United States and who is an:
255255 (1) African American, which means a person whose origins are in any
256256 of the black racial groups of Africa and who has historically and
257257 consistently identified such self as being such a person;
258258 (2) Hispanic or Latino American, which means a person whose
259259 origins are in Mexico, Central or South America, or any of the Spanish-
260260 speaking islands of the Caribbean, regardless of race and who has
261261 historically and consistently identified such self as being such a person;
262262 (3) Asian or Pacific Islander American, which means a person whose
263263 origins are in any of the original peoples of the Far East, Southeast Asia,
264264 the islands of the Pacific or the Northern Marianas or the Indian
265265 subcontinent and who has historically and consistently identified such self
266266 as being such a person; or
267267 (4) Native American, which means a person whose origins are from
268268 any of the original peoples of North America and who maintains tribal
269269 affiliation as demonstrated by active enrollment as a recognized member
270270 of any federally or state-recognized tribe.
271271 (p) "Minority business enterprise" means a for-profit small business
272272 concern that:
273273 (1) Is at least 51%-owned, managed and independently controlled by
274274 one or more individuals who are United States citizens or lawful
275275 permanent residents and who belong to a minority group;
276276 (2) has a real and substantial presence in Kansas;
277277 (3) is a small business;
278278 (4) performs a commercially useful function; and
279279 (5) is certified as a "minority business enterprise" by the assistant
280280 director or the office of civil rights of the Kansas department of
281281 transportation.
282282 (q) ''Office'' means the office of minority and women business
283283 development within the department of commerce established pursuant to
284284 K.S.A. 74-5010a, and amendments thereto.
285285 (r) ''Person'' includes one or more individuals, proprietorships,
286286 partnerships, associations, labor or other organizations, corporations,
287287 cooperatives, firms, legal representatives, trustees or receivers.
288288 (s) "Personal net worth" means the net value of the assets of an
289289 individual remaining after total liabilities are deducted. An individual's
290290 personal net worth does not include the individual's ownership interest in
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334334 an applicant or participating certified small business enterprise or the
335335 individual's equity in such individual's primary place of residence. An
336336 individual's personal net worth includes only such individual's own share
337337 of assets held jointly or as community property with the individual's
338338 spouse.
339339 (t) ''Postsecondary educational institution'' means the same as in
340340 K.S.A. 74-3201b, and amendments thereto.
341341 (u) ''Procurement'' means the purchase, lease or rental of any goods or
342342 services.
343343 (v) ''Public works'' means all work, construction, highway and ferry
344344 construction, alteration, repair or improvement other than ordinary
345345 maintenance that a state agency or postsecondary educational institution is
346346 authorized or required by law to undertake.
347347 (w) "Real and substantial presence" means:
348348 (1) The small business enterprise maintains an office or place of
349349 business in the state of Kansas;
350350 (2) if the small business enterprise has employees, the small business
351351 enterprise maintains the employees in one or more of the small business
352352 enterprise's offices within this state to conduct or solicit the small business
353353 enterprise's business in this state for the majority of their working time;
354354 (3) the small business enterprise has transacted business more than
355355 once in the state within the last three years; and
356356 (4) if in business for less than one year, the small business enterprise
357357 has provided information on in-progress and completed contracts,
358358 including letters of reference or past performance reports to establish
359359 successful contract performance, and any information demonstrating
360360 performance of work in the industry for which the applicant small business
361361 enterprise seeks certification as a certified small business enterprise.
362362 (x) "Service-disabled veteran" means an individual who served in the
363363 active military, naval or air services of the United States, who was
364364 discharged or released under conditions other than dishonorable and whose
365365 disability was incurred or aggravated in the line of duty in the active
366366 military, naval or air services of the United States.
367367 (y) "Service-disabled veteran-owned business enterprise" means a
368368 for-profit small business concern pursuant to the small business act, 15
369369 U.S.C. 632(q), and the federal small business administration's
370370 implementing regulations, 13 C.F.R. 125, that:
371371 (1) Is at least 51%-owned, managed and independently controlled by
372372 one or more service-disabled veterans who are United States citizens or
373373 lawful permanent residents;
374374 (2) has a real and substantial presence in the state of Kansas;
375375 (3) is a small business;
376376 (4) performs a commercially useful function; and
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420420 (5) is certified by the United States department of veterans affairs and
421421 meets the federal small business administration's service-disabled veteran-
422422 owned small business concern program regulations.
423423 (z) "Small business" means the same as defined in the federal small
424424 business administration in 13 C.F.R. 121.101-107.
425425 (aa) "Socially and economically disadvantaged individual" means any
426426 individual who is a citizen or lawfully admitted permanent resident of the
427427 United States and who:
428428 (1) Is an owner of a firm, in which ownership and control are relied
429429 upon for certification of the firm as a disadvantaged business enterprise;
430430 (2) has been subjected to racial or ethnic prejudice or cultural bias
431431 within American society because of such individual's identity as a member
432432 of certain groups without regard to such individual's qualities. The social
433433 disadvantage must stem from circumstances beyond the individual's
434434 control. Any individual in the following groups is rebuttably presumed to
435435 meet this requirement:
436436 (A) Black Americans;
437437 (B) Hispanic Americans;
438438 (C) Native Americans;
439439 (D) Asian-Pacific Americans;
440440 (E) subcontinent Asian Americans; and
441441 (F) women; and
442442 (3) certifies that the individual has a personal net worth that does not
443443 exceed the amount set forth in 49 C.F.R. 26 and 26.67.
444444 (bb) "State agency" means the same as defined in K.S.A. 75-3701,
445445 and amendments thereto.
446446 (cc) "Woman" means a female person who is a citizen or lawful
447447 permanent resident of the United States.
448448 (dd) "Woman business enterprise" means a for-profit small business
449449 concern that:
450450 (1) Is at least 51%-owned, managed and independently controlled by
451451 one or more women who are United States citizens or lawful permanent
452452 residents;
453453 (2) has a real and substantial presence in the state of Kansas;
454454 (3) is a small business;
455455 (4) performs a commercially useful function; and
456456 (5) is certified as a "woman business enterprise" by the assistant
457457 director or the office of civil rights of the Kansas department of
458458 transportation.
459459 Sec. 3. There is hereby created within the department of commerce a
460460 Kansas certified small business enterprise development program. The
461461 assistant director of the office of minority and woman business of the
462462 department of commerce shall administer the provisions of the Kansas
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506506 certified small business enterprise development program. In administering
507507 the provisions of the program, the assistant director is directed and
508508 authorized to:
509509 (a) Employ such staff as are necessary to carry out the purposes of
510510 this act;
511511 (b) develop, plan and implement, in consultation with the committee,
512512 one or more programs to provide an opportunity for participation by
513513 certified small business enterprises in public works and the process by
514514 which goods and services are procured by state agencies and
515515 postsecondary educational institutions from the private sector;
516516 (c) develop, in consultation with the committee, a comprehensive
517517 plan insuring that certified small business enterprises are provided an
518518 opportunity to participate in public contracts for public works, goods and
519519 services;
520520 (d) identify, in consultation with the committee, any barrier to equal
521521 participation by a certified small business enterprise in all state agency and
522522 postsecondary educational institution contracts;
523523 (e) establish annual overall goals for participation by certified small
524524 business enterprises for each state agency and postsecondary educational
525525 institution to be administered on a contract-by-contract basis or on a class-
526526 of-contracts basis;
527527 (f) develop and maintain a central certified small business enterprise
528528 list for use by state agencies and postsecondary educational institutions.
529529 No business shall be entitled to certification by the assistant director unless
530530 the business meets the definition of a certified small business enterprise as
531531 established by this act and the rules and regulations of the office. There
532532 shall be a rebuttable presumption that when a certified small business
533533 enterprise subcontracts a greater portion of the contract work than normal
534534 industry practice, the certified small business enterprise is not performing
535535 a commercially useful function;
536536 (g) develop, implement and operate a system of monitoring
537537 compliance with the provisions of this act;
538538 (h) adopt rules and regulations, approved by the secretary of
539539 commerce, as necessary to implement the provisions of this act, including
540540 the:
541541 (1) Establishment of agency goals;
542542 (2) development and maintenance of a central certified small business
543543 enterprise certification and qualification program, including applicable
544544 definitions that shall be consistent with the small business requirements
545545 defined by applicable federal regulations and Kansas law. Only persons
546546 meeting the requirements as provided by this act and the rules and
547547 regulations of the office shall be deemed a certified small business
548548 enterprise by the assistant director. Except for instances of
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592592 misrepresentation or fraud, any person listed as a certified small business
593593 enterprise on the office's online certified small business enterprise
594594 directory on the date a contractor utilization plan is submitted shall be
595595 eligible to participate as a certified small business enterprise on such
596596 contract;
597597 (3) procedures for monitoring and enforcing compliance with goals,
598598 regulations, contract provisions and this act;
599599 (4) utilization of standard clauses by state agencies and postsecondary
600600 educational institutions;
601601 (5) requirements for standard clauses in requests for proposals,
602602 advertisements, bids or calls for bids, necessary to carry out the purposes
603603 of this act, including notice of the statutory penalties for noncompliance
604604 pursuant to section 10, and amendments thereto; and
605605 (6) determination of an agency's or postsecondary educational
606606 institution's attainment of the goals pursuant to this act of such agency or
607607 postsecondary educational institution;
608608 (i) submit an annual report to the governor and the legislature on the
609609 progress in implementing this act;
610610 (j) investigate complaints of violations of this act or the rules and
611611 regulations adopted by the office pursuant to this act with the assistance of
612612 any agency or postsecondary educational institution involved in the
613613 alleged violation. Such investigations shall not include investigations of
614614 alleged violations of any local ordinance, rule, regulation or resolution of a
615615 political subdivision of this state;
616616 (k) cooperate and act jointly with the federal government, other states
617617 and political subdivisions of the state of Kansas, and their respective
618618 certified small business enterprise programs, to carry out the purposes of
619619 this act;
620620 (l) develop policies to carry out the purposes of this act in
621621 consultation with the committee and any other ad hoc advisory
622622 committees, as may be of assistance to the assistant director;
623623 (m) develop specific indicia of "good faith efforts" in cooperation
624624 with the secretary of administration, who shall cooperate with the assistant
625625 director for this purpose and to achieve the objectives of this act; and
626626 (n) enter into contracts necessary to carry out the provisions of this
627627 act.
628628 Sec. 4. (a) Each state agency and postsecondary educational
629629 institution shall comply with the annual goals established for that agency
630630 or institution pursuant to section 3, and amendments thereto, for public
631631 works and procuring goods or services. The provisions of this act and the
632632 rules and regulations adopted pursuant to section 3, and amendments
633633 thereto, shall be adhered to in all public works and procurement by state
634634 agencies and postsecondary educational institutions, including all contracts
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678678 and other procurement pursuant to chapter 75 of the Kansas Statutes
679679 Annotated, and amendments thereto. All program opportunities for
680680 certified small business enterprises developed by the assistant director
681681 shall be developed with the intent of compliance with the provisions of
682682 K.S.A. 75-3739, and amendments thereto, to the extent possible. If any
683683 provisions of this act are in conflict with the provisions of K.S.A. 75-3739,
684684 and amendments thereto, then to such extent the provisions of this act shall
685685 be construed as an exception, as provided by K.S.A. 75-3739(a)(4).
686686 (b) Each state agency shall adopt a plan, developed in consultation
687687 with the assistant director and the advisory committee on certified small
688688 business enterprises, to ensure that certified small business enterprises are
689689 afforded the maximum practicable opportunity to directly and
690690 meaningfully participate in the execution of public contracts for public
691691 works and goods and services. The plan shall include specific measures the
692692 agency will undertake to increase the participation of certified small
693693 business enterprises.
694694 (c) The assistant director shall annually notify the governor, the post
695695 auditor and the respective legislative house and senate committees with
696696 applicable oversight responsibility of all agencies and postsecondary
697697 educational institutions not in compliance with this act.
698698 (d) Each city, county and unified school district may adopt a certified
699699 small business enterprise procurement program in coordination with the
700700 assistant director and in compliance with the provisions of this act and
701701 applicable rules and regulations established pursuant to this act.
702702 Sec. 5. (a) The office of minority and women business development
703703 and the office of civil rights of the Kansas department of transportation
704704 shall be the only authorities to perform certification of small business
705705 enterprises in the state of Kansas. Such certification shall permit certified
706706 small business enterprises to participate in programs for these enterprises
707707 administered by the state of Kansas, any city, town, county, special
708708 purpose district, public corporation created by the state, municipal
709709 corporation or quasi-municipal corporation within the state of Kansas.
710710 Sec. 6. The assistant director may create an advisory committee or
711711 committees and appoint the members thereof, upon consultation with the
712712 office of civil rights of the department of transportation, when the assistant
713713 director determines that such advisory committee is useful for the
714714 administration of this act. The members shall serve at the pleasure of the
715715 assistant director. Such advisory committees shall consult with and advise
716716 the assistant director and the office of civil rights of the department of
717717 transportation as requested with regard to any matters pertaining to the
718718 implementation or administration of this act. Members of any advisory
719719 committee created pursuant to this section attending meetings of such
720720 committee or attending a subcommittee meeting thereof authorized by the
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764764 assistant director shall be paid subsistence allowances, mileage and other
765765 expenses as provided in K.S.A. 75-3223, and amendments thereto, but
766766 shall receive no compensation for services as such members. The secretary
767767 of commerce is authorized to expend funds to provide space for holding
768768 meetings or other necessary expenses of any advisory committee or
769769 subcommittee. The advisory committee shall meet at the request of the
770770 assistant director.
771771 Sec. 7. (a) It is the intent of this act that agency goals established
772772 pursuant to this act for participation by certified small business enterprises
773773 in public contracts be achievable, complimentary to federal objectives,
774774 flexible and be met on a contract-by-contract or class-of-contract basis.
775775 (b) Notwithstanding the provisions of K.S.A. 75-3739, and
776776 amendments thereto, or any other law to the contrary, if necessary to
777777 accomplish the intent of this act, any contract may be awarded to the next
778778 lowest responsible bidder in turn, or all bids may be rejected and new bids
779779 obtained, if the lowest responsible bidder, without justification, does not
780780 meet the goals established for a particular contract pursuant to this act. The
781781 dollar value of the total contract used for the calculation of the specific
782782 contract goal may be increased or decreased to reflect executed change
783783 orders. An apparent low bidder shall be in compliance with the contract
784784 provisions required pursuant to this act as a condition precedent to the
785785 granting of a notice of award by any state agency or postsecondary
786786 educational institution, including either goal attainment or submission and
787787 approval of an acceptable request for waiver.
788788 (c) For purposes of subsection (b), justification for failure to meet the
789789 goals established for a particular contract shall require the assistant
790790 director's approval, in the sole discretion of the assistant director, of a
791791 notarized affidavit submitted to the assistant director by the lowest
792792 responsible bidder that sets forth the good faith efforts made by the bidder
793793 to meet the goals and specifies the specific reasons such goals were not
794794 attainable on the project at the time of bid.
795795 Sec. 8. For the purpose of measuring a state agency's or
796796 postsecondary educational institution's attainment of goals pursuant to this
797797 act:
798798 (a) Regulations adopted pursuant to section 3, and amendments
799799 thereto, shall provide that if a certified small business enterprise is a broker
800800 of goods or materials required by a contract, the contracting agency or
801801 postsecondary educational institution may count only requests for
802802 proposals, advertisements, bids or calls for bids necessary to carry out the
803803 purposes of this act, which shall include notice of the statutory penalties
804804 pursuant to section 10, and amendments thereto, for noncompliance; and
805805 (b) any regulations adopted pursuant to section 3, and amendments
806806 thereto, shall provide that if a certified small business enterprise is a broker
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850850 of goods or materials required by a contract, the contracting agency or
851851 postsecondary educational institution may count only the dollar value of
852852 the fee or commission charged and not the value of goods or materials
853853 provided. The contracting agency or postsecondary educational institution
854854 may, at its discretion, fix the dollar value of the fee or commission charged
855855 at either the actual dollar value of such fee or commission or at a standard
856856 percentage of the total value of the brokered goods, which percentage must
857857 reflect the fees or commissions generally paid to brokers for providing
858858 such services.
859859 Sec. 9. (a) No person shall:
860860 (1) Prevent or interfere with a contractor's or subcontractor's
861861 compliance with this act or any rule and regulation adopted pursuant to
862862 this act;
863863 (2) submit any false or fraudulent information to the director
864864 concerning compliance with this act or any rule and regulation adopted
865865 pursuant to this act;
866866 (3) fraudulently obtain, retain, attempt to obtain or retain or aid
867867 another in fraudulently obtaining, retaining or attempting to obtain or
868868 retain certification as a certified small business enterprise for the purpose
869869 of this act;
870870 (4) knowingly make a false statement, whether by affidavit, verified
871871 statement, report or other representation, to any state official or employee
872872 for the purpose of influencing the certification or denial of certification of
873873 any entity as a certified small business enterprise;
874874 (5) knowingly obstruct, impede or attempt to obstruct or impede any
875875 state official or employee who is investigating the qualification of a
876876 business entity that has requested certification as a certified small business
877877 enterprise;
878878 (6) fraudulently obtain, attempt to obtain or aid another person in
879879 fraudulently obtaining or attempting to obtain public moneys to which the
880880 person is not entitled pursuant to this act or any rule and regulation
881881 adopted pursuant to this act; or
882882 (7) knowingly make any false statement or representation that any
883883 entity is or is not certified as a certified small business enterprise for
884884 purposes of obtaining a contract governed by this act or any rule and
885885 regulation adopted pursuant to this act.
886886 (b) Any person or entity violating this act, or any rule and regulation
887887 adopted pursuant to this act shall be subject to the penalties in section 10,
888888 and amendments thereto. No provision of this section, and amendments
889889 thereto, shall prevent a state agency or postsecondary educational
890890 institution from pursuing any such procedure or sanction as is otherwise
891891 provided by statute, rule and regulation or contract provision.
892892 Sec. 10. (a) If the assistant director determines that, after notice and
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936936 an opportunity for a hearing in accordance with the Kansas administrative
937937 procedure act, an individual, firm, corporation, partnership or other
938938 business entity has engaged in or is engaging in any act or practice
939939 constituting a violation of any provision of this act, any rule and regulation
940940 adopted pursuant to this act or a contract requirement established pursuant
941941 to this act, the assistant director may, pursuant to a written order, withhold
942942 payment, debar the contractor, suspend or terminate the contract or subject
943943 the contractor to civil penalties. The assistant director shall adopt rules and
944944 regulations establishing criteria for the imposition of penalties pursuant to
945945 this section. A civil monetary penalty imposed by the assistant director
946946 shall not exceed the amount of $5000 for each separate violation.
947947 (b) Any willful repeated violation, exceeding a single violation, may,
948948 in addition to any other penalties, disqualify the contractor from further
949949 participation in state contracts for a minimum period of three years up to a
950950 maximum of permanent disbarment. An apparent low bidder must be in
951951 compliance with the contract provisions required pursuant to this act as a
952952 condition precedent to the granting of a notice of award by any state
953953 agency or postsecondary educational institution.
954954 (c) Any business entity aggrieved by an order of the assistant director
955955 made pursuant to this section may appeal such order to the district court in
956956 the manner provided by the Kansas judicial review act. An appeal to the
957957 district court or to an appellate court may stay the payment of a civil
958958 penalty but shall not stay any other action of the director as provided by
959959 subsection (a).
960960 (d) Any penalty recovered pursuant to the provisions of this section
961961 shall be remitted to the state treasurer, deposited in the state treasury and
962962 credited to the state general fund.
963963 (e) The procedures and sanctions provided in this section, and
964964 amendments thereto, shall be in addition to any other remedies, civil
965965 penalties or criminal penalties provided by law. No provision of this
966966 section shall prevent any state agency or postsecondary educational
967967 institution administering a contract from pursuing such other procedures or
968968 sanctions as are otherwise provided by statute, rule and regulation or
969969 contract provision.
970970 Sec. 11. The attorney general may bring an action in the name of the
971971 state against any person to restrain and prevent the doing of any act
972972 prohibited or declared to be unlawful in this act. The attorney general may,
973973 in the discretion of the court, recover the costs of the action including
974974 reasonable attorney fees and the costs of investigation.
975975 Sec. 12. If any provision or clause of this act or application thereof to
976976 any person or circumstance is held invalid, such invalidity shall not affect
977977 other provisions or applications of this act that can be given effect without
978978 the invalid provision or application, and to this end the provisions of this
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10221022 act are declared to be severable.
10231023 Sec. 13. This act shall take effect and be in force from and after its
10241024 publication in the statute book.
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